August 2024
CIC has not carried out any audit mission for nor commissioned any consultancy services with China state construction international holdings limited and there is no established relationship (financial or others) between CIC and China state construction international holdings 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 China state construction international holdings limited’s employees, nor performed any on-site assessment and tests to check the accuracy of the information provided by China state construction international holdings limited. The accuracy, comprehensiveness and trustworthiness of the information collected rests with China state construction international holdings 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. China state construction international holdings 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 China state construction international holdings 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 China state construction international holdings limited can only be used by China state construction international holdings limited and the Financial Institution. The distribution and publication are at the discretion of China state construction international holdings limited, subject to CIC’s approval.
| Application no. | SFCS-APPLY-2024-002 |
|---|---|
| Certificate no. | SFCS-2024-004 |
| Date of application | 2024.06.07 |
| Company name | China state construction international holdings limited |
| Business registration no. | 34710843 |
| Company profile | Setting its footprint into Hong Kong in 1979, China State Construction International Holdings Limited (“CSCI” or the “Group”) is a vertically integrated construction and investment conglomerate mainly engaged in infrastructure investment, construction projects. Now CSCI has become an internationally construction and infrastructure investment conglomerate, one of the largest general contractors in Hong Kong and Macau, and a leading integrated urban investment operator in China's mainland. In July 2005, the Group was listed on the Main Board of The Stock Exchange of Hong Kong Limited (stock code: 3311.HK). |
| Sustainable financing instrument | Sustainability-linked Loan |
| Application level | Company Level |
China state construction international holdings limited has established a sustainability strategy with the following elements:
Company’s Sustainability Governance
The company has set up a Sustainability Executive Committee, with the structure, responsibility of various sub-committees and sustainability vision and mission defined. This governance body comprise of senior management and cross-functional representatives.
China state construction international holdings 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 proposed KPIs included: the company’s GHG emissions intensity (scope 1 and 2 by revenue), percentage of FSC or PEFC certified wood purchased by CSHK, and work-related injury rate per 1,000 workers.
The sustainability performance target (SPT) included: i) reduce the GHG emissions intensity (scope 1 and 2 by revenue) by 25% in 2025 as compared with 2018; ii) achieve 100% of FSC or PEFC certified wood purchased by CSHK by 2025; and iii) maintain work-related injury rate below 6.0 per 1,000 workers starting from 2023, which is significantly lower than the industry average.
China state construction international holdings limited will prepare Sustainability Report within one year from the date of issuance of each sustainable financing instrument and Annually thereafter until full allocation of the proceeds. The report will consist of a project description including highlights of green elements. In terms of impact reporting, China state construction international holdings limited will report on relevant environmental and social metrics of the project.
| Metrics | GHG emissions intensity (scope 1 and 2 by revenue) |
| Base year | 2018 |
| Performance in the base year | 18.61 tCO2-eq/ million HKD |
| Target year | 2025 |
| Performance in the target year | 13.96 tCO2-eq/ million HKD |
| Methodologies | ISO 14064-1&3 |
| Metrics | Percentage of FSC or PEFC certified wood purchased by CSHK |
| Base year | 2019 |
| Performance in the base year | 84.0% |
| Target year | 2025 |
| Performance in the target year | 100% |
| Methodologies | Amount of FSC or PEFC certified wood purchased divided by the total amount of wood purchased |
| Metrics | Work-related injury rate per 1,000 workers |
| Base year | 2019 |
| Performance in the base year | 7.5 per 1,000 workers |
| Target year | 2023 |
| Performance in the target year | 6.0 per 1,000 workers |
| Methodologies | (Number of injuries / total number of employees) * 1000 |
The reporting frequency, means of reporting and methodologies are clearly defined. The Applicant intents to arrange post-lending verification.
| 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-2024-002, Certificate no.: SFCS-2024-004) of the CIC Sustainable Finance Certification Scheme with validity from 06-08-2024 to 05-08-2026 .