11th May 2022 ,Hong Kong,Geely Automobile Holdings Limited (“Geely Auto”) (Stock code: 175) announced that it has published its Sustainable Finance Framework (the “Framework”) and has obtained a second party opinion from Sustainalytics, an international authoritative capital market firm on Environmental, Social and Governance (ESG) ratings and research. The Framework covers Geely Auto’s future issuance of green, social and sustainability bonds, loans, among other financing instruments. The publication of the Framework will help Geely Auto obtain appropriate financing arrangements for its sustainable development projects, achieve its commitment to sustainable development, and align its financing strategy with global best practices in ESG debt issuance. In addition, sustainable finance will further enhance Geely Auto’s financing efficiency, reduce debt financing costs, expand diversified financing channels, and enable Geely Auto to continuously maintain its advantages in financing categories and costs.
The eight eligible categories for the use of proceeds under the Framework include Green Projects and Social Projects such as Clean Transportation and Renewable Energy. The diversified categories provide Geely Auto with greater flexibility in the use of future proceeds from sustainable financing instruments.
Sustainalytics is of the opinion that the Geely Automobile Holdings Limited’s Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, Green Loan Principles 2021, and Social Loan Principles 2021. Geely Auto has officially become one of China’s leading automobile manufacturers in the advancement of sustainable finance practices. In addition, the Framework will help Geely Auto achieve its vision and goals in ESG.
Geely Auto continues its strategies for sustainable development and actively contributes to addressing climate change and other major ESG issues. With 2020 as the baseline, Geely Auto plans to reduce life cycle carbon emission per car by at least 25% by 2025, and commits to achieving carbon neutrality by 2045. Geely Auto has also been selected as constituent of the “Hang Seng ESG 50 Index”, the “Hang Seng Corporate Sustainability Benchmark Index” and “FTSE4Good Index Series”.