GREEN AND LOW-CARBON
Longfor Group has actively implemented the concept of green finance. We constructed the Company's green finance framework in 2020 and obtained certification from independent third-party rating agencies, thereby taking a significant step toward green finance. During the Reporting Period, the Company continued to promote sustainable development management, vigorously develop green buildings, and actively construct Sponge and Smart Cities by utilizing green finance opportunities.
The Group obtained syndicated loans of HK$3.45 billion and HK$3.1 billion in 2022 and 2023 respectively with the SLL framework (Sustainability Linked Loan Framework). It requires the company to select three ESG-related indicators and set corresponding goals, the attainment of which will result in cost savings. In pursuit of this objective, Longfor Group has set annual annual greenhouse gas emission intensity goals, water intensity goals (including water consumption by general contractors), and the goal of raising the percentage of female employees in the total workforce so as to monitor and enhance its sustainability performance.
The Group established a green finance framework. With strong financial standing and extensive experience in green building development, the Company has obtained the green certification and the Second-Party Opinion from Sustainalytics, a third-party organization, to be fully prepared for the future issuance of green bonds. All funds raised from the green bonds would be strictly used for the financing and refinancing of qualified green projects. The Group will detail the use and allocation of funds in the annual sustainability report. The Group has established a special working group to concentrate on the development and certification of green building projects and implement the development and management of green projects systematically.
The National Development and Reform Commission approved the Group’s plan to issue three green bonds with total offering size of RMB 4.04 billion to develop the new Chongqing Longfor Lijia project and Shanghai Hongqiao Business District Phase I No.5 plot.
