September 2021
CIC has not carried out any audit mission for nor commissioned any consultancy services with China state construction international holdings limited and there is no established relationship (financial or others) between CIC and China state construction international holdings limited.
The opinion provided herein is an independent opinion on the sustainability credentials and management of the financial instrument, based on the information made available to CIC. CIC has neither interviewed any of the China state construction international holdings limited’s employees, nor performed any on-site assessment and tests to check the accuracy of the information provided by China state construction international holdings limited. The accuracy, comprehensiveness and trustworthiness of the information collected rests with China state construction international holdings limited. CIC, in providing this opinion, has not certified the effectiveness, the quality or the irreversibility of the assets to be financed by the sustainable financing instrument. China state construction international holdings limited is fully responsible for attesting the compliance with its commitments defined in its policies, for their implementation and monitoring. The opinion delivered by CIC neither focuses on the financial performance of China state construction international holdings limited, nor on the effective allocation of its proceeds. CIC is not liable for the consequences arising if third parties use this opinion either to make investment decisions or to make any kind of business transaction.
The opinion provided by CIC on China state construction international holdings limited can only be used by China state construction international holdings limited and the Financial Institution. The distribution and publication are at the discretion of China state construction international holdings limited, subject to CIC’s approval.
| Application no. | SFCS-APPLY-2021-017 |
|---|---|
| Certificate no. | SFCS-2021-008 |
| Date of application | 2021.12.14 |
| Company name | China state construction international holdings limited |
| Business registration no. | 34710843 |
| Company profile | Setting its footprint into Hong Kong in 1979, China State Construction International Holdings Limited (“CSCI” or the “Group”) is a vertically integrated construction and investment conglomerate mainly engaged in infrastructure investment, construction projects. Now CSCI has become an internationally construction and infrastructure investment conglomerate, one of the largest general contractors in Hong Kong and Macau, and a leading integrated urban investment operator in China's mainland. In July 2005, the Group was listed on the Main Board of The Stock Exchange of Hong Kong Limited (stock code: 3311.HK). |
| Sustainable financing instrument | Sustainability-linked Loan |
| Application level | Company Level |
China state construction international holdings limited has established a sustainability strategy with the following elements:
Company’s Sustainability Governance
China State confirmed that it has set up a governance body which meets annually to oversee its sustainability strategy.
China State has established Sustainability Policy and implemented work guidelines for the seven management approaches of sustainability of the Group, namely Compliance, Green Development, People-oriented Approach, Safety First, Quality First, Supply Chain Management and Community Care.
China State has made commitment to sustainability and developed its Sustainability Strategy for the emerging global changes and to promote full integration of sustainability in day-to-day operations.
China state construction international holdings limited has confirmed the key sustainability performance indicator(s) and target(s) for monitoring and managing its sustainability performance.
Target Setting
Targets are in line with the following internationally recognized frameworks across financial markets:
Frameworks
China State has set ambitious targets on its environmental and social aspects with clear base year and target year, including GHG intensity reduction, injury rate of the Group, and procurement rate of FSC certified timber. All the targets are developed based on sound methodology, including ISO 14064 – 1 &3.
China State has been independently assessed according to FTSE4Good criteria, and has satisfied the requirements to become a constituent of the FTSE4Good Index Series for the fourth consecutive year since 2017.
China state construction international holdings limited will prepare Sustainability Report within one year from the date of issuance of each sustainable financing instrument and annually thereafter until full allocation of the proceeds. The report will consist of a project description including highlights of green elements. In terms of impact reporting, China state construction international holdings limited will report on relevant environmental and social metrics of the project.
| Metrics | GHG intensity (Scope 1&2 by revenue) |
| Base year | 2019 |
| Performance in the base year | 16.58 tonne CO2e/ HKD million |
| Target year | 2021-2023 |
| Performance in the target year | 1.5% reduction against previous year 2020: ≤ 16.33 2021: ≤ 16.09 2022: ≤ 15.85 2023: ≤ 15.61 |
| Methodologies | ISO 14064 |
| Metrics | Injury rate per 1000 workers |
| Base year | n/a |
| Performance in the base year | n/a |
| Target year | 2021-2023 |
| Performance in the target year | <7.5% |
| Methodologies | Number of injuries / total number of employees) *1000 |
| Metrics | Percentage of FSC certified timber used in HK |
| Base year | 2019 |
| Performance in the base year | 84% |
| Target year | 2021-2025 |
| Performance in the target year | 2020: 84% 2021: 88% 2022: 92% 2023: 96% 2024: 98% 2025: 100% |
| Methodologies | Volume of FSC certified timber / total timber used |
We confirmed that China State has committed to continue to perform reporting on the Group’s sustainability performance and target process on an annual basis through sustainability report.
| Company’s Sustainability governance | Compliant |
|---|---|
| Target setting | Compliant |
| Reporting | Compliant |
Based on the above assessment, we recommend to approve the application (Application no.: SFCS-APPLY-2021-017, Certificate no.: SFCS-2021-008) of the CIC Sustainable Finance Certification Scheme with validity from 15-09-2021 to 14-09-2023 .