Sustainability-linked Financing Framework

Sustainability-linked Financing Framework

Towngas Smart Energy developed a Sustainability-linked Financing Framework in 2022, striving to achieve our long term sustainability goals and support our transition to become a leading integrated clean energy provider. The framework aligns with the Sustainability-Linked Bond Principles and Sustainability-Linked Loan Principles.
 
Long-term Vision - Integration, Digitalization, Decarbonization: We aim to achieve an integrated sustainable and tangible smart energy business based on three core pillars: integration, digitalization and decarbonisation. The three pillars allow us to expand into the solar energy market rapidly, while continue to explore new opportunities in digital cloud computing, smart energy management systems, carbon auditing, and carbon trading capabilities for our commercial and industrial customers.
 
Details of the Sustainability KPIs: Within the framework, two Sustainability Performance Targets (SPTs) were set, which include the total photovoltaic installed capacity and the solar energy sales to total energy sales ratio. We shall achieve 8GW of total photovoltaic installed capacity and 7% of solar energy sales to total energy sales ratio by 2025; and 11GW of total photovoltaic installed capacity and 8% of solar energy sales to total energy sales ratio by 2028. The failure and/or achievement by Towngas Smart Energy to satisfy the predefined SPT(s) will trigger a coupon / margin step-up or step-down according to respective SL Instruments. For more details, please refer to the Sustainability-Linked Financing Framework.
 
We have obtained Second Party Opinion for the framework from DNV.