Sustainable Finance Consultancy Services

Sustainable Finance Consultancy Services: support issuers and borrowers to participate in the sustainable finance market

In the context of dual carbon goals, China’s sustainable finance market has expanded rapidly. More enterprises and organisations are tapping sustainable finance, using sustainable debt instruments in particular to support their green and low-carbon business development and contributing to the broader society’s sustainable development.

Primary Financing Tools in the Sustainable Market

UoP* and sustainability-linked financing instruments are primary financing tools in the sustainable market. UoP financing instruments are more commonly used by enterprises and organisations whose economic activities could bring environmental or social benefits. For example, enterprises and organisations from the real estate, construction and energy sectors actively issue or borrow UoP bonds or loans. While sustainability-linked financing instruments are more suitable for companies which have established overall sustainability strategies. The proceeds of sustainability-linked financing instruments are intended to be used for general purposes.

*UoP: “Use of proceeds” bonds and loans include ESG bonds/loans, green bonds/loans, social bonds/loans, sustainability bonds. Other UoP labels exist in different markets, e.g. blue bonds, carbon neutrality bond, pandemic bonds etc.

CECEPEC’s Expertise and Experience

CECEPEC is familiar with international and domestic green/sustainable finance policies and standards. We can assist enterprises and organisations in leveraging sustainable finance tools under different criteria, such as:

  • The Green Bond Principles (GBP), the Social Bond Principles (SBP), the Sustainability Bond Guidelines (SBG) and the Sustainability-Linked Bond Principles (SLBP) published by ICMA;
  • the Green Loan Principles (GLP), the Social Loan Principles (SLP) and the Sustainability-Linked Loan Principles (SLLP) published by LMA, APLMA and LSTA;
  • Green Bond Endorsed Projects Catalogue (2021 Edition) jointly announced by PBOC, NDRC and CSRC;
  • EU Taxonomy Regulation adopted in the European Union;
  • Common Ground Taxonomy (CGT) published by IPSF.

Meanwhile, CECEPEC has an experienced consulting team with an in-depth understanding of a wide range of industries. CECEPEC has served over 100 international and domestic clients covering more than 25 industry sectors, such as real estate, construction, energy, manufacturing and financials.

Leveraging its expertise and experience, CECEPEC can support issuers or borrowers to participate in the sustainable finance market by providing consultancy services.

CECEPEC’s Sustainable Finance Consultancy Services

  1. 1.UoP bonds and loans*

  • Consultancy services for the pre-issuance/lending stage:

Type of Consultancy ServicesBrief Description
Finance Framework Formulation

CECEPEC could assist issuers or borrowers in formulating their Finance Framework (such as green finance framework, social finance framework, sustainable finance framework and sustainability-linked finance framework). The main workflows are as follows:

  • Desktop research and gap analysis
  • Project kick-off
  • Information and data collection
  • Screening of eligible project categories
  • Framework writing
Eligible Project Screening for UoP Bonds and Loans

CECEPEC could provide consulting services to help issuers or borrowers select eligible projects. The main workflows are as follows:

  • Assistance in establishing internal governance structure and policy
  • Feasibility analysis
  • Pre-assessment of environmental and/or social impact and ESG risk
  • Assistance in eligible project selection

  • Consultancy services for the post-issuance/lending stage:

Type of Consultancy ServicesBrief Description
Allocation and Impact Reporting for UoP Bonds and Loans

Allocation and impact reports on a regular basis refer to relevant international standards and corporate green/social finance-related frameworks to evaluate the Use of Proceeds, Process for Project Evaluation and Selection, Management of Proceeds. CECEPEC can assist companies in the preparation of impact and allocation reports for the appropriate stakeholders.

2. Sustainability-linked bonds and loans

  • Consultancy services for the pre-issuance/lending stage:

Type of Consultancy ServicesBrief Description
KPI Selection and SPT Setting for Sustainability-linked Bonds and Loans

CECEPEC could assist issuers and borrowers in selecting material and relevant Key Performance Indicators (KPIs) and setting ambitious and achievable Sustainability Performance Targets (SPTs). The main workflows are as follows:

  • KPI selection:
  • Assist in formulating long-term sustainable development roadmaps.
  • Assist in mapping the key material topics by considering industry-specific topics, peers’ performance, and international standards.
  • Assist in establishing/improving the sustainability system.
  • SPT setting:
  • Assist in defining the scopes and boundaries of SPTs.
  • Assist in establishing the base year and target year(s).
  • Assist in target setting.
  • Help develop detailed plans to achieve targets.

  • Consultancy services for the post-issuance/lending stage:
Type of Consultancy ServicesBrief Description
Reporting

Issuers and borrowers are expected to report regularly. CECEPEC could assist in tracking KPIs' performances and reporting the performance against the SPTs, the related impacts, etc.

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