May 2021
CIC has not carried out any audit mission for nor commissioned any consultancy services with Gammon Construction Limited and there is no established relationship (financial or others) between CIC and Gammon Construction 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 Gammon Construction Limited’s employees, nor performed any on-site assessment and tests to check the accuracy of the information provided by Gammon Construction Limited. The accuracy, comprehensiveness and trustworthiness of the information collected rests with Gammon Construction 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. Gammon Construction 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 Gammon Construction 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 Gammon Construction Limited can only be used by Gammon Construction Limited and the Financial Institution. The distribution and publication are at the discretion of Gammon Construction Limited, subject to CIC’s approval.
| Application no. | SFCS-APPLY-2021-018 |
|---|---|
| Certificate no. | SFCS-2021-001 |
| Date of application | 2021.12.15 |
| Company name | Gammon Construction Limited |
| Business registration no. | 00806688 |
| Company profile | Headquartered in Hong Kong, Gammon has a reputation for delivering high-quality projects throughout China and Southeast Asia. Our integrated business focuses on civil, building, foundations, electrical and mechanical, facades and interiors works and design, and our construction services division provides considerable plant and steel fabrication and concrete production capabilities. We have a strong building and information modelling department and a digital entity dedicated to furthering the commercial opportunities of our innovations. |
| Sustainable financing instrument | Green Guarantee |
| Application level | Project Level |
Gammon Construction Limited has confirmed that the proceeds will be used exclusively for the financing the project below:
| Project name | Hong Kong International Airport Terminal 2 Expansion |
| Location | Hong Kong International Airport |
| Project description | equired that Gammon should assist Airport Authority Hong Kong to obtain BEAM Plus certification (Green Building Certification). |
| Project schedule | 2020-2024 |
| Eligible category |
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| Framework |
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| Highlights of green elements and estimated environmental impact | • The use of prefabricated modules to facilitate low waste construction• The use of a mass battery storage system, called the Enertainer, to reduce noise, air pollution and carbon emissions on site• The use of ready-mix concrete with CIC Green Product Certification and the use of CIC Carbon Assessment Tool to track carbon performance• Reuse of treated marine sediment to avoid marine dumping• Recycling of removed trees to reduce yard waste disposal |
Gammon proposes to raise Green Guarantee to fulfil contract requirement that falls into one of the Green Loan Principle project categories which is green building, and UNSDG.
Gammon confirmed the T2 Expansion project will attain the Platinum grade of BEAM Plus, the highest grade of local green building certification. The certification covers areas of energy use, water use, materials and waste aspects, indoor environmental quality, etc. Therefore, the T2 Expansion is constructed with highest level of environmental management practices.
Gammon Construction Limited has established an evaluation process with the following key elements:
Evaluation and selection
This project is under Airport Authority Hong Kong (AAHK) supervision. All the project governance will be based on contract scope with AAHK.
Gammon Construction Limited is committed to transparent reporting and will prepare relevant project documents within one year from the date of issuance of each sustainable financing instrument and in regularly basis (would be monthly) thereafter until completion of the project. The report will consist of project descriptions including highlights of green elements. In terms of impact reporting, Gammon Construction Limited will report on relevant environmental metrics of the project.
| Metrics | Total carbon emissions (permanent works) |
| Methodologies | CIC Carbon Assessment Tool (CAT) |
| Metrics | Total carbon emissions (temporary works and site impacts) |
| Methodologies | CIC Carbon Assessment Tool (CAT) |
| Metrics | Waste recycling rate (%) |
| Methodologies | CIC Carbon Assessment Tool (CAT) |
We confirmed that Gammon has committed to continue to perform impact reporting in the aspects of green building certification progress and work progress on an annual basis through project progress meeting report.
| Purpose of Trade Instrument | Compliant |
|---|---|
| Evaluation of underlying activity | Compliant |
| Reporting | Compliant |
Based on the above assessment, we recommend to approve the application (Application no.: SFCS-APPLY-2021-018, Certificate no.: SFCS-2021-001) of the CIC Sustainable Finance Certification Scheme with validity from 24-05-2021 to 23-05-2023 .