October 2024
CIC has not carried out any audit mission for nor commissioned any consultancy services with Techoy Construction Company Limited and there is no established relationship (financial or others) between CIC and Techoy 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 Techoy Construction Company Limited’s employees, nor performed any on-site assessment and tests to check the accuracy of the information provided by Techoy Construction Company Limited. The accuracy, comprehensiveness and trustworthiness of the information collected rests with Techoy 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. Techoy 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 Techoy 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 Techoy Construction Company Limited can only be used by Techoy Construction Company Limited and the Financial Institution. The distribution and publication are at the discretion of Techoy Construction Company Limited, subject to CIC’s approval.
| Application no. | SFCS-APPLY-2024-003 |
|---|---|
| Certificate no. | SFCS-2024-003 |
| Date of application | 2024.06.19 |
| Company name | Techoy Construction Company Limited |
| Business registration no. | 07976646 |
| Company profile | Techoy Construction Company Limited’s (“Techoy Constrcution”) history can be traced back to April 1952 when it was first established as Techoy Company. Techoy Company changed its name to Techoy Construction in 1982 after obtaining registration under the Approved Contractors (List 1) Group B in 1981. Techoy Construction continued its growth as a main contractor throughout the years and is now a wholly owned subsidiary of Thelloy Development Group Limited (“Thelloy Development Group”), which was listed on the GEM Board of the Hong Kong Stock Exchange in 2015 and transferred to the Main Board in 2017 (HKEX Stock Code: 1546). |
| Sustainable financing instrument | Green Loan |
| Application level | Project Level |
Techoy Construction Company Limited has confirmed the proceeds will be used for the specified Project Categories that meet the eligibility criteria stated:
| Project Categories | Green Building |
| Eligibility Criteria | Building Environmental Assessment Method (BEAM Plus) Assessment for New Buildings (Version 2.0) |
Techoy Construction Company Limited has confirmed that the selected Project Categories and Eligibility Criteria are in line with the following internationally recognized frameworks across financial markets:
Frameworks
Techoy Construction Company Limited has also confirmed the following purposes of the proceeds:
Purpose of financing
Techoy Construction Company Limited has identified the below project(s) as eligible green projects which meet the eligible criteria:
| Project name | Construction of Quarry Park in Anderson Road Quarry |
| Location | The project site is located in Sai Kung District adjacent to the On Tat Estate |
| Project description | The proposed scope of the project comprises –(a) a central lawn and landscaped garden;(b) a walking/jogging track with fitness facilities;(c) a bicycle park and a bicycle kiosk;(d) an amphitheatre;(e) a viewing platform;(f) an adventurous playground;(g) a pet garden;(h) an orienteering course;(i) two multi-purpose outdoor courts for basketball/volleyball;(j) two futsal cum handball pitches;(k) a light refreshment kiosk;(l) installations with artistic/architectural features; and(m) ancillary facilities. |
| Highlights of green elements and estimated environmental impact | In summary, the proposed project of Quarry Park is for implementation to match with the population intake for new housing developments at the Anderson Road Quarry (ARQ) and to meet the keen demand for leisure and sports facilities in the region.To create a park serving as:- Curating a park experience from the quarry context;- A green spine for the community;- A recreational (Leisure and Sport) spine for the community; and - A prominent region park as social space.In respect of the overall design of the Quarry Park, as the project site used to be a quarry site with rich historical background, the Quarry Park will therefore be divided into four zones with reference to the operation procedure of a quarry, namely Cutting Zone, Grinding Zone, Blasting Zone and Bonding Zone. Relevant quarry themed elements will be added into the facilities and artistic/architectural featured installations in each of these zones. In addition, the project site is adjacent to the residential areas nearby, the “Community Park and Plaza” and the “Joint-user Complex at Site G2, Anderson Road Quarry”. Hence, the Quarry Park will provide members of the public, including people with disabilities, with convenient and easy access to the above locations. The green elements of the project includes: - Natural ventilation & Light tube for natural daylight as passive design - Minimize the structural elements to reduce embodied carbon - Use Pulverized Fuel Ash (PFA) mix in concrete - Procure green/ regional building materials - Solar photovoltaics as renewable energy - Plantation of new trees and greenery - Minimize hard pavement areas and; High insulation building envelop |
The applicant is target for the highest rating of beam plus scheme and the requirement of beam plus provision has been stipulated in the contract requirement which show the strong commitment to ESG. The applicant also provided additional information on the green features to incorporate into the project, encompassing various aspects of the construction project including E&M systems, architectural design, and structural elements.
To ensure that the projects financed by the sustainable financing instrument meet the eligible criteria, Techoy Construction Company Limited has established an evaluation and selection process with the following key elements:
Evaluation and selection
The group has demonstrated a robust governing framework aligned with ISO 26000:2010 to oversee Environmental, Social, and Governance (ESG) matters. The Organization Chart for ESG Matters Governance provided by the applicant offers a transparent illustration of the key staff members' accountabilities in governing ESG matters. Furthermore, the Carbon Assessment Inception Report submitted by the applicant outlines clear carbon reduction targets.
Building upon this foundation, the applicant's supplementary information underscores a strong alignment between the company's overarching objectives and the project's environmental sustainability goals. The project aims to achieve significant milestones, including attaining BEAM Plus Platinum certification, targeting a minimum 40% reduction in embodied carbon, and striving for net zero operational carbon emissions. This strategic commitment not only reflects the company's dedication to sustainability but also exemplifies a proactive approach towards minimizing environmental impact and fostering long-term sustainability within the project's framework.
Techoy Construction Company Limited has provided information regarding the internal governance process through which the company can track allocation of funds towards green projects. Techoy Construction Company Limited will establish a register of funds to contain the following information:
Information
Pending the full allocation of the proceeds, Techoy Construction Company Limited intends to hold and/or invest the balance of proceeds not yet allocated in accordance with Corporate Social Responsibility Policy
The allocated fund will be governed by board of directors and the internal finance department.
The applicant also supplemented the management of fund as below demonstrating a clear governance structure:
"The management requirements for the proceeds include but are not limited to:
1. We should open a special account or establish a dedicated ledger to manage the receipt, disbursement and recovery of the proceeds and ensure that the proceeds are used in strict accordance with the purpose stipulated in the issuance documents and that the whole process can be tracked.
2. Under the circumstance that the plan for the use of proceeds, we should seek for the approval of the company’s board of directors or the internal authority."
Techoy Construction Company Limited is committed to transparent reporting and will publish Financial 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, Techoy Construction Company 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 |
| Methodologies | CIC Carbon Assessment Tool (CAT) |
| Project Categories | Green Building |
| Metrics | Waste Recycling Rate |
| Methodologies | Waste Flow Table by comparing waste recycled to total C&D wastes |
| Project Categories | Green Building |
| Metrics | Overall site coverage of greenery |
| Methodologies | Building Department PNAP APP-152 Sustainable Building Design Guidelines |
| Project Categories | Green Building |
| Metrics | Reduction in annual water consumption |
| Methodologies | Baseline requirements as specified in the BEAM Plus Manual |
The applicant is committed to provide additional information if necessary on the allocation report. The allication reporting is for the specific project to which the proceeds have been allocated. The information presented will include a list of the projects that receive financing, a description of each project, the amount allocated to each project, and the project’s expected environmental impact. These additional information may also include the balance of any unallocated proceeds.
In addition to total carbon emissions, the impact reporting will encompass various indicators such as waste recycling rate, overall site coverage of greenery, and the reduction in annual water consumption to create a comprehensive report.
| 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-2024-003, Certificate no.: SFCS-2024-003) of the CIC Sustainable Finance Certification Scheme with validity from 03-10-2024 to 02-10-2026 .