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-2021-019 |
|---|---|
| Certificate no. | SFCS-2021-002 |
| 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 | Sustainability-linked Guarantee |
| Application level | Company Level |
Gammon Construction Limited has established a sustainability strategy with the following elements:
Company’s Sustainability Governance
The selected KPIs are material to Gammon’s core sustainability and business strategy and address relevant ESG challenges of the industry sector. The selected KPIs are relevant, core and material to the borrower’s overall business, and of high strategic significance to Gammon’s current and/or future operations. The KPIs are measurable or quantifiable on a consistent methodological basis; and able to be benchmarked, i.e. as much as possible using an external reference or definitions to facilitate the assessment of the SPT’s level of ambition.
Gammon Construction 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
The SPTs are ambitious and they represent a material improvement in the respective KPIs
and be beyond a “Business as Usual” trajectory. The SPTs are consistent with Gammon’s overall sustainability / ESG strategy; and are determined on a predefined timeline, set before or concurrently with the origination of the loan.
Gammon Construction Limited will prepare Sustainability Report within one year from the date of issuance of each sustainable financing instrument and annually thereafter until completion of project. The report will consist of a project description including highlights of green elements. In terms of impact reporting, Gammon Construction Limited will report on relevant environmental and social metrics of the project.
| Metrics | 25% reduction in Group carbon intensity by 2025 (Carbon emissions based on Scope 1 (direct fuel use) and Scope 2 (indirect electricity) emissions |
| Base year | n/a |
| Performance in the base year | n/a |
| Target year | 2025 |
| Performance in the target year | -25% |
| Methodologies | ISO 14064 |
| Metrics | 25% reduction in landfill waste intensity for Hong Kong by 2025 |
| Base year | 2016 |
| Performance in the base year | n/a |
| Target year | 2025 |
| Performance in the target year | -25% |
| Methodologies | n/a |
| Metrics | 25% reduction in Group water intensity by 2025 |
| Base year | 2016 |
| Performance in the base year | n/a |
| Target year | 2025 |
| Performance in the target year | -25% |
| Methodologies | n/a |
| Metrics | 25% reduction in Group energy intensity by 2025 |
| Base year | 2016 |
| Performance in the base year | n/a |
| Target year | 2025 |
| Performance in the target year | -25% |
| Methodologies | n/a |
| Metrics | Equal or greater 25% of concrete quantity produced is certified or equivalent to the ‘Platinum’ grade of the CIC Green Product Certification Scheme - Carbon Labelling Scheme |
| Base year | 2016 |
| Performance in the base year | n/a |
| Target year | 2025 |
| Performance in the target year | =>25% |
| Methodologies | n/a |
| Metrics | Improving year on year Group safety performance (Reduction of AIR compared to the previous year) |
| Base year | 2016 |
| Performance in the base year | n/a |
| Target year | 2025 |
| Performance in the target year | n/a |
| Methodologies | n/a |
We confirmed that Gammon has committed to continue to publicly report the performance of selected KPIs and the verification reports 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-2021-019, Certificate no.: SFCS-2021-002) of the CIC Sustainable Finance Certification Scheme with validity from 24-05-2021 to 23-05-2023 .