October 2021
CIC has not carried out any audit mission for nor commissioned any consultancy services with EcoSmart Energy Management Limited and there is no established relationship (financial or others) between CIC and EcoSmart Energy Management 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 EcoSmart Energy Management Limited’s employees, nor performed any on-site assessment and tests to check the accuracy of the information provided by EcoSmart Energy Management Limited. The accuracy, comprehensiveness and trustworthiness of the information collected rests with EcoSmart Energy Management 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. EcoSmart Energy Management 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 EcoSmart Energy Management 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 EcoSmart Energy Management Limited can only be used by EcoSmart Energy Management Limited and the Financial Institution. The distribution and publication are at the discretion of EcoSmart Energy Management Limited, subject to CIC’s approval.
| Application no. | SFCS-APPLY-2021-025 |
|---|---|
| Certificate no. | SFCS-2021-018 |
| Date of application | 2021.12.23 |
| Company name | EcoSmart Energy Management Limited |
| Business registration no. | 51040948 |
| Company profile | EcoSmart Energy Management Limited is a company specializing in renewable energy engineering and energy management, the technical team is composed of a number of experienced engineering and energy experts. We provide customers with various energy management, improvement and energy saving solutions. It provides one-stop service from product design and development, preparation to construction and installation. With the goal of "Building a Better Life in a Green World", EcoSmart Energy Management Limited is committed to developing and promoting green energy, bringing renewable energy and green power to the community, and has been involved in the reconstruction of Sichuan province, where it was awarded the Capital Outstanding Environmental Performance Award by Capital Magazine in 2010. Over 10 years of establishment in Hong Kong, we have handled over 200 energy projects in Hong Kong, clients include ISF, ESF, CLP, CAHK, etc. Our market is not limited to Hong Kong only, our solar projects have exceeded 500MW globally. The financial incentive to develop Solar Energy projects are evident. Taking Gammon Technology Park project (200kW PV System) as an example, the actual annual income from the project was amounted to$1.189M (between 5th July 2019 – 4th July 2020). |
| Sustainable financing instrument | Green Loan |
| Application level | Project Level |
EcoSmart Energy Management Limited has confirmed the proceeds will be used for the specified Project Categories that meet the eligibility criteria stated:
| Project Categories | Renewable Energy |
| Eligibility Criteria | Due to the words limit, please refer to application form "Eligibility criteria" Section |
EcoSmart Energy Management Limited has confirmed that the selected Project Categories and Eligibility Criteria are in line with the following internationally recognized frameworks across financial markets:
Frameworks
EcoSmart Energy Management Limited has also confirmed the following purposes of the proceeds:
Purpose of financing
EcoSmart Energy Management Limited has identified the below project(s) as eligible green projects which meet the eligible criteria:
| Project name | 安裝太陽能系統及上網電價合作計畫之租賃天台及高天面合約 (金獅花園一期) |
| Location | Golden Lion Garden |
| Project description | The current status of the project:• 6 x Residential Tower On-Grid |
| Highlights of green elements and estimated environmental impact | • Annual GHG emission reduced/ avoided in tCO2e.• Total installed capacity of renewable energy in kW.• Annual renewable energy generation in MWh.• Avoided emissions to air (other than greenhouse gases). • Number of people with access to clean energy services.• Photoelectric conversion efficiency• Decay rates of monocrystalline silicon battery modules.• Number of jobs created. • Number of jobs supported. |
EcoSmart proposes to raise Green Loan to finance and refinance, in whole or in part, existing eligible new and existing eligible green projects.
EcoSmart has identified Rooftop PV System at Residential Blocks, Golden Lion Garden Phase I (169kW).
To ensure that the projects financed by the sustainable financing instrument meet the eligible criteria, EcoSmart Energy Management Limited has established an evaluation and selection process with the following key elements:
Evaluation and selection
EcoSmart has set up a governance body to evaluate and select eligible projects and manages their environmental risks. ISO 9000 quality management system has been adopted in governing the procedures of project evaluation and selection and managing their environmental risks.
We consider that the applicant has well-defined internal checking procedures for project evaluation and selection.
EcoSmart Energy Management Limited has provided information regarding the internal governance process through which the company can track allocation of funds towards green projects. EcoSmart Energy Management Limited will establish a register of funds to contain the following information:
Information
Pending the full allocation of the proceeds, EcoSmart Energy Management Limited intends to hold and/or invest the balance of proceeds not yet allocated in accordance with N/A
Ecosmart will appoint the Finance Department head to be responsible for internal governance on proceeds management under the guidance of the bank. Project manager will submit a report to Finance Department head for review annually.
EcoSmart also confirmed that the allocation of proceeds would be tracked in the format of the fund registry template.
EcoSmart Energy Management Limited is committed to transparent reporting and will publish Impact Report 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, EcoSmart Energy Management Limited will report on relevant environmental metrics of the projects to which the proceeds have been allocated in line with the technical requirements.
| Project Categories | Renewable Energy |
| Metrics | Total carbon emissions (permanent works) |
| Methodologies | CIC Carbon Assessment Tool (CAT) |
| Project Categories | Renewable Energy |
| Metrics | Clean energy (%) |
| Methodologies | CIC Carbon Assessment Tool (CAT) |
| Project Categories | Renewable Energy |
| Metrics | Annual GHG emission reduced/ avoided in tCO2e. • Total installed capacity of renewable energy in MW. • Annual renewable energy generation in MWh. • Avoided emissions to air (other than greenhouse gases). • Number of people with access to clean energy services. • Photoelectric conversion efficiency • Decay rates of polycrystalline silicon battery modules and monocrystalline silicon battery modules. • Number of jobs created. • Number of jobs supported |
| Methodologies | BEAM Plus |
Ecosmart has promised to prepare a report and update in their company website within one year from the date of issuance of each sustainable financing instrument and continue to report regularly until the full allocation of the proceeds.
Ecosmart will report the distribution of proceeds earmarked to eligible green projects at the project level.
Ecosmart has well established the KPIs to be reported in the impact reporting.:
| 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-2021-025, Certificate no.: SFCS-2021-018) of the CIC Sustainable Finance Certification Scheme with validity from 08-10-2021 to 07-10-2023 .