August 2021
CIC has not carried out any audit mission for nor commissioned any consultancy services with Kum Shing (K.F.) Construction Co., Ltd and there is no established relationship (financial or others) between CIC and Kum Shing (K.F.) Construction Co., Ltd.
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 Kum Shing (K.F.) Construction Co., Ltd’s employees, nor performed any on-site assessment and tests to check the accuracy of the information provided by Kum Shing (K.F.) Construction Co., Ltd. The accuracy, comprehensiveness and trustworthiness of the information collected rests with Kum Shing (K.F.) Construction Co., Ltd. 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. Kum Shing (K.F.) Construction Co., Ltd 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 Kum Shing (K.F.) Construction Co., Ltd, 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 Kum Shing (K.F.) Construction Co., Ltd can only be used by Kum Shing (K.F.) Construction Co., Ltd and the Financial Institution. The distribution and publication are at the discretion of Kum Shing (K.F.) Construction Co., Ltd, subject to CIC’s approval.
| Application no. | SFCS-APPLY-2021-021 |
|---|---|
| Certificate no. | SFCS-2021-005 |
| Date of application | 2021.12.22 |
| Company name | Kum Shing (K.F.) Construction Co., Ltd |
| Business registration no. | 08189341 |
| Company profile | Founded in 1963, Kumshing has been playing a leading role in the development, operation and maintenance of Hong Kong’s energy and mobility infrastructure for decades. With over 2,000 employees in locations across the region and multibillion-dollar active contracts, Kumshing offers a full range of customized and specialist services to power utilities, transportation and public sector clients including CLP Power, HK Electric, MTR Corporation, Airport Authority and public works departments of the Hong Kong Government. Benefiting from its in-depth understanding of infrastructure related challenges and ability to follow through, Kumshing is the only private enterprise providing comprehensive and multidisciplinary engineering solutions to the entire electricity supply system from generation, transmission, distribution to utilization, assisting the power utilities in achieving a world-class supply reliability of over 99.999%. In the face of latest economic and technology trends, Kumshing has invested substantially to integrate technology and design with its core business to help develop Hong Kong into a smarter and more sustainable city. Furthermore, Kumshing is also actively exploring opportunities to expand regionally, through its consulting and investment arm, to engage in projects relating to infrastructure development. |
| Sustainable financing instrument | Green Loan |
| Application level | Project Level |
Kum Shing (K.F.) Construction Co., Ltd has confirmed the proceeds will be used for the specified Project Categories that meet the eligibility criteria stated:
| Project Categories | Pollution Prevention and Control |
| Eligibility Criteria | Construction, development, operation, acquisition and maintenance of facilities, systems or equipment used for facilities, systems and equipment that are used to divert waste from landfills or reduce emissions. |
| Project Categories | Clean Transportation |
| Eligibility Criteria | Construction, development, operation, acquisition and maintenance of infrastructure sustainable mobility and cleaner vehicles with a lower environmental impact. |
Kum Shing (K.F.) Construction Co., Ltd has confirmed that the selected Project Categories and Eligibility Criteria are in line with the following internationally recognized frameworks across financial markets:
Frameworks
Kum Shing (K.F.) Construction Co., Ltd has also confirmed the following purposes of the proceeds:
Purpose of financing
Kum Shing (K.F.) Construction Co., Ltd has identified the below project(s) as eligible green projects which meet the eligible criteria:
| Project name | EV Operation Centre Project |
| Location | UG8, Newport Centre, 116 Ma Tau Kok Road, Kowloon, Hong Kong |
| Project description | Design & build a fleet operation centre include installation of EV chargers & IOT device, replace the existing fuel cars to EV, purchase or develop fleet management systems. |
| Highlights of green elements and estimated environmental impact | Reduce Carbon emission due to the reduction of 20 nos. of fuel type saloon car by application of effective fleet management system and the replacement of 40 nos. of fuel type saloon car to EV car (520,000 kg/year). |
Kamshing proposes to raise Green Loan for EV Operational Centre that falls into the Green Loan Principle’s project categories, which are pollution prevention and control and clean transportation.
Kamshing confirmed the EV Operation Centre projects will be under pollution prevention and control and clean transportation in accordance with GLP categories. EV Operational Centre reduce the carbon emission due to reduce 20 numbers of fuel type saloon car by application of effective fleet management system and replace 40 numbers. of fuel type saloon car to EV car (520,000 kg/year).
Based on above information, we concluded that Kamshing’ EV Operation Centre project brings environmental and social benefit, which provide environmentally friendly business operation.
To ensure that the projects financed by the sustainable financing instrument meet the eligible criteria, Kum Shing (K.F.) Construction Co., Ltd has established an evaluation and selection process with the following key elements:
Evaluation and selection
Kamshing will establish project management team for EV Operation Centre project. In the project preparation stage, the project management team, financial department, and ESG committee will carry out project preliminary evaluation in terms of resources and budgeting.
Kamshing’s Project Manager will be in-charge and monitor the project, and the Financial Manager will supervise and managing the overall evaluation process.
We have reviewed the evidence and can confirm that the eligible project categories and governance framework for project selection fulfils the criteria.
Kum Shing (K.F.) Construction Co., Ltd has provided information regarding the internal governance process through which the company can track allocation of funds towards green projects. Kum Shing (K.F.) Construction Co., Ltd will establish a register of funds to contain the following information:
Information
Pending the full allocation of the proceeds, Kum Shing (K.F.) Construction Co., Ltd intends to hold and/or invest the balance of proceeds not yet allocated in accordance with n/a
We have reviewed evidence showing the Kumshing’s governance on management of proceed. The Head of Finance Department will be responsible for internal governance on proceeds management under the guidance of the bank, and the Financial Department will oversee the utilisation of proceeds in order to ensure the payment is paid on the eligible projects, which will be recorded in Annual Financial Report. We can confirm that Kumshing has governance process to ensure the traceability.
Kum Shing (K.F.) Construction Co., Ltd is committed to transparent reporting and will publish relevant project documents within one year from the date of issuance of each sustainable financing instrument and annually thereafter until the full allocation of the proceeds. The report will consist of information on the allocation of the proceeds and the environmental impacts of the projects.
Allocation Report
In terms of impact reporting, Kum Shing (K.F.) Construction Co., Ltd will report on relevant environmental metrics of the projects to which the proceeds have been allocated in line with the technical requirements.
| Project Categories | Pollution Prevention and Control |
| Metrics | Annual GHG & air pollutant emissions reduced/ avoided in tCO2e/year |
| Methodologies | CIC SFCS Technical Requirements |
| Project Categories | Clean Transportation |
| Metrics | CO2 emission per km. Number of electric vehicle charging stations installed, if applicable. |
| Methodologies | CIC SFCS Technical Requirements |
We confirmed that Kumshing has committed to continue to report the use of proceed on an annual basis in Impact Report. The information will report the key transaction information, the aggregate amount of proceeds of each transaction earmarked to eligible projects, remaining balance of unallocated proceed, and social & environmental performance indicators.
| Use of proceeds | Compliant |
|---|---|
| Project evaluation and selection | Compliant |
| Management of proceeds | Compliant |
| Reporting | Compliant |
Based on the above assessment, we recommend to approve the application (Application no.: SFCS-APPLY-2021-021, Certificate no.: SFCS-2021-005) of the CIC Sustainable Finance Certification Scheme with validity from 27-08-2021 to 26-08-2023 .