September 2022
CIC has not carried out any audit mission for nor commissioned any consultancy services with CR Construction Company Limited and there is no established relationship (financial or others) between CIC and CR Construction Company 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 CR Construction Company Limited’s employees, nor performed any on-site assessment and tests to check the accuracy of the information provided by CR Construction Company Limited. The accuracy, comprehensiveness and trustworthiness of the information collected rests with CR Construction Company 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. CR Construction Company 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 CR Construction Company 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 CR Construction Company Limited can only be used by CR Construction Company Limited and the Financial Institution. The distribution and publication are at the discretion of CR Construction Company Limited, subject to CIC’s approval.
| Application no. | SFCS-APPLY-2022-003 |
|---|---|
| Certificate no. | SFCS-2022-003 |
| Date of application | 2022.09.15 |
| Company name | CR Construction Company Limited |
| Business registration no. | 02304599 |
| Company profile | CR Construction Company Limited, an indirect wholly-owned subsidiary of CR Construction Group Holdings Limited (Stock Code: 01582.HK), was established in 1967 carrying out construction business. Over the years, we have accumulated considerable experience in the local market and established a reputation of a reliable building contractor for quality and complex projects. We principally act as a main contractor in building construction works and RMAA works projects across public and private sectors in Hong Kong. Some of the major projects of CR Construction include Proposed Residential Development at Kwun Tong Town Centre (Areas 2 & 3), Proposed Hotel Development at TCTL38, Tung Chung, Comprehensive Renovation for Beverly Hill at 6 Broadwood Road, Happy Valley, Pak Tin Estate Redevelopment Phase 9, The St. Regis Hong Kong at Wan Chai, One Hennessy at Wanchai, Renovation of China Resources Building, China Unicom (Hong Kong) Global Center at Tseung Kwan O, Redevelopment of Ying Wa Girls’ School, Chu Hai College of Higher Education at Tuen Mun, Run Run Shaw Creative Media Centre of City university of Hong Kong, the Hong Kong Design Institute and the Hong Kong Institute of Vocational Education (Lee Wai Lee) etc. |
| Sustainable financing instrument | Sustainability-linked Loan |
| Application level | Company Level |
CR Construction Company Limited has established a sustainability strategy with the following elements:
Company’s Sustainability Governance
CR Construction Company Limited has set up a governance body to oversee the company's sustainability strategy. The safety environment manager would oversee the implementation of sustainability policy.
CR Construction Company 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
CR Construction Company Limited has set various environment target with measurable KPIs. For example, the group has committed on reduction of total greenhouse gas emission and reduction of total energy consumption.
The group has established social responsibility system with reference to ISO 26000:2010 to oversee their ESG issues that are relevant to the Group. The ESG report was submitted to substantiate the baseline performance of the selected KPIs and demonstrate their relevance, materiality, and consistency with the corporate sustainability and business strategy.
CR Construction Company Limited will prepare Environmental, Social and Governance 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, CR Construction Company Limited will report on relevant environmental and social metrics of the project.
| Metrics | 5% reduction in total greenhouse gas emission |
| Base year | 2020 |
| Performance in the base year | 100% |
| Target year | 2022 |
| Performance in the target year | 95% |
| Methodologies | ISO 14064:2018 & ISO 50001:2018 |
| Metrics | 5% reduction in energy consumption |
| Base year | 2020 |
| Performance in the base year | 100% |
| Target year | 2022 |
| Performance in the target year | 95% |
| Methodologies | ISO 14064:2018 & ISO 50001:2018 |
CR Construction Company Limited has committed to perform impact reporting on the selected KPIS through ESG report. It is recommended that the baseline figure shall be provided in future ESG report for comparison. The company would follow ISO 14064:2018 & ISO 50001:2018 for performance monitoring and management.
| 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-2022-003, Certificate no.: SFCS-2022-003) of the CIC Sustainable Finance Certification Scheme with validity from 28-09-2022 to 27-09-2024 .