December 2021
CIC has not carried out any audit mission for nor commissioned any consultancy services with Paul Y. General Contractors Limited and there is no established relationship (financial or others) between CIC and Paul Y. General Contractors 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 Paul Y. General Contractors Limited ’s employees, nor performed any on-site assessment and tests to check the accuracy of the information provided by Paul Y. General Contractors Limited . The accuracy, comprehensiveness and trustworthiness of the information collected rests with Paul Y. General Contractors 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. Paul Y. General Contractors 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 Paul Y. General Contractors 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 Paul Y. General Contractors Limited can only be used by Paul Y. General Contractors Limited and the Financial Institution. The distribution and publication are at the discretion of Paul Y. General Contractors Limited , subject to CIC’s approval.
| Application no. | SFCS-APPLY-2021-004 |
|---|---|
| Certificate no. | SFCS-2021-020 |
| Date of application | 2021.11.23 |
| Company name | Paul Y. General Contractors Limited |
| Business registration no. | 00621410 |
| Company profile | Headquartered in Hong Kong, Paul Y. Engineering Group Limited is dedicated to providing full-fledged engineering and property services, with operations in Hong Kong, Mainland China, Macau, Singapore and Malaysia. For over 70 years, Paul Y. Engineering has been at the heart of some of the most challenging and impactful construction projects that have shaped the iconic skylines of Hong Kong and many other cities. Our projects include commercial and residential buildings, institutional facilities, highways, airport runways, railways, tunnels, port works, water and sewage treatment facilities etc. We serve our valuable clientele by delivering integrated solutions, from concept to completion and ongoing management, as well as components that best match clients' needs and expectations. Meanwhile, we are deeply committed to our role as a responsible corporate citizen contributing to building harmonious and sustainable communities. |
| Sustainable financing instrument | Green Loan |
| Application level | Project Level |
Paul Y. General Contractors Limited has confirmed the proceeds will be used for the specified Project Categories that meet the eligibility criteria stated:
| Project Categories | Green Building (New Building) |
| Eligibility Criteria | BEAM Plus target rating -Silver |
Paul Y. General Contractors Limited has confirmed that the selected Project Categories and Eligibility Criteria are in line with the following internationally recognized frameworks across financial markets:
Frameworks
Paul Y. General Contractors Limited has also confirmed the following purposes of the proceeds:
Purpose of financing
Paul Y. General Contractors Limited has identified the below project(s) as eligible green projects which meet the eligible criteria:
| Project name | Mixed Housing Development at Pak Wo Road, FSSTL 264, Fanling |
| Location | Pak Wo Road, Fanling New Territories FSST Lot No.264 |
| Project description | Two domestic blocks of 29 domestic storeys and One domestic block of 30 domestic storeys (comprise of acoustic window) setting on transfer plates and 3 storeys podium complex containing podium roof garden, planter areas, open landscape, recreation facilities, resident dormitories, elderly centre and property management office, truck lorry carpark at 1/F, shopping area at G/F and two level basements of private vehicle carpark. |
| Highlights of green elements and estimated environmental impact | •Reduction of 20% annual sewage volume •Reduction of 30% annual water use •At least 50% of total roof area meet Solar Reflectance Index (SRI) of 78 or vegetation roof •Using CIC carbon assessment tools •Using Green Label NRMM for generator |
Paul Y proposes to obtain Green Loan for Mixed Housing Development at Pak Wo Road, FSSTL 264, Fanling project that falls into Green Building Category under Green Loan Principle eligible project categories. Meanwhile, Paul Y committed contractual requirements to achieve a silver rating of BEAM Plus with the assessment of an independent consultant.
Paul Y confirmed the Project would achieve 20% reduction of annual sewage volume, 30% reduction of annual water use, and at least 50% of the total roof area meet Solar Reflectance Index (SRI) of 78 or vegetation roof. CIC carbon assessment tool will be adopted to evaluate performance in carbon emission. Besides, Green Label NRMM is adopted for generators to reduce emissions and pollutants.
Based on the above information, we concluded that the Mixed Housing Development at Pak Wo Road, FSSTL 264, Fanling project would bring significant environmental benefits.
To ensure that the projects financed by the sustainable financing instrument meet the eligible criteria, Paul Y. General Contractors Limited has established an evaluation and selection process with the following key elements:
Evaluation and selection
Paul Y clearly defined their environmental sustainability objectives to achieve a silver rating in BEAM Plus.
Paul Y stated that the selection of eligible projects is based on the Director’s review, scale, relevance in sustainability, suggestions of other departments such as the project team, finance team, and/or environmental department. Paul Y also provided its internal policies and procedures to demonstrate project evaluation and selection policy and procedures involve participants from various functional areas, including Safety & Environmental Department and Treasury team together with the Corporate Social Responsibility Committee involvement according to the criteria including international and local standards, criteria set in the Use of Proceeds. The shortlisted projects will be reported to the Executive Board for approval.
Paul Y provided the sustainability policy of Paul Y. Engineering Group Limited, which is the applicant's parent company. The document shows that Paul Y. Engineering has committed that making sustainability core to their business values and operations.
We consider that the applicant has well-defined internal checking procedures for project evaluation and selection.
Paul Y. General Contractors Limited has provided information regarding the internal governance process through which the company can track allocation of funds towards green projects. Paul Y. General Contractors Limited will establish a register of funds to contain the following information:
Information
Pending the full allocation of the proceeds, Paul Y. General Contractors Limited intends to hold and/or invest the balance of proceeds not yet allocated in accordance with Paul Y Engineering Group Limited and Its subsidiaries Green Finance Policies and Procedures
Paul Y has committed in “Paul Y. Engineering Group Limited and its subsidiaries Green Finance and Policies and Procedures” that Paul Y will designate specific project bank accounts for each eligible project. And all the key information, including green loans drawdown and its use, will be kept under these specific project bank accounts.
Paul Y. General Contractors Limited is committed to transparent reporting and will publish as part of the financial report and sustainability / Environmental, Social and Governance 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, Paul Y. General Contractors 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 | Green Building |
| Metrics | Total carbon emissions (permanent works) •Total carbon emissions (temporary works and site impacts) |
| Methodologies | CIC Carbon Assessment Tool (CAT) |
| Project Categories | Green Building |
| Metrics | Waste minimized, reused, recycled in percentage of total waste and/or in tonnes p.a |
| Methodologies | 1.Environment, Transport and Works Bureau. Technical Circular (Works) No. 19/2005. Environmental Management on Construction Sites. (ETWB TWC 19/2005) AND 2. Manual of BEAM Plus New Building version 1.2 – Credit MA 11) |
We confirmed that Paul Y has committed to continue to perform use of proceeds and impact reporting with work progress on an annual basis through the financial report and sustainability/Environmental, Social and Governance Report.
Paul Y has clearly defined the key performance indicators applicable for 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-2021-004, Certificate no.: SFCS-2021-020) of the CIC Sustainable Finance Certification Scheme with validity from 14-12-2021 to 13-12-2023 .