Sustainable Financing & Responsible Investment
Our commitment to sustainable growth is grounded in the belief that the long-term prosperity of our businesses is closely tied to the well-being of the communities we serve. We prioritise strategic investments that support our business growth while balancing the needs and impacts on the environment and community. Our dedication to sustainable finance was showcased at the Sustainability Conference 2024, where we addressed Sustainable Financing and Impact Investment. As a member of HKGFA, CCG is dedicated to advancing green financial initiatives.
KPI for FY2024/25
≥50%
Of the Group’s total financing facilities are green/social or sustainability-linked
Performance
71.5%
Of the Group’s total financing facilities are green/social or sustainability-linked
Sustainable Finance Framework
The CCG SF Framework updated in October 2024 from the previous Green Finance Framework, guides our financing and investment decisions to drive measurable environmental and social impacts. Reviewed every three years to align with best market practices, this CCG SF Framework was the first in Hong Kong to align with the Hong Kong Monetary Authority’s Hong Kong Taxonomy for Sustainable Finance and the EU’s Common Ground Taxonomy. Its credibility is enhanced through verification by ISS Corporate Solutions.
The coverage of the new framework is expanded to include social aspects in addition to environmental considerations:
Environmental
Social
The CCG SF Framework defines eligible green and social projects in 13 categories for fundraising through both bonds and loans. For each transaction, the Group commits to adhering to four core components: the use of proceeds, project evaluation and selection, management of proceeds, and reporting.
First, the use of proceeds ensures that net proceeds from Sustainable Financing Transactions (“SFTs”) are exclusively allocated to fund or refinance eligible projects that meet at least one green or social category. Second, project evaluation and selection involve a collaborative process with cross-functional teams. Third, the management of proceeds allows transparent tracking of fund allocation. Finally, CCG is required to summarise detailed updates on project outcomes and impacts.
Each SFTs undergoes pre-issuance and post-issuance external reviews to ensure compliance, transparency, and alignment with the framework’s objectives. This structured approach reinforces our ambition to be an environmentally and socially responsible business, driving sustainable development through strategic financing.
Allocation of Green/Social Loan and Sustainability-Linked Loan Proceeds
Total (HK$) 28.3 billion
5.5 billion
Sustainability-linked Loan (“SLL”) (HK$)
22.1 billion
Green Loan (HK$)
0.7 billion
Social Loan (HK$)
Case Study
Asia’s First Triple-Themed Syndicated Loan to Advance Sustainable Development
In April 2025, CCG launched Asia’s first triple-themed syndicated loan, a HK$8 billion facility integrating green, social, and SLL components. This innovative structure underscores CCG’s leadership in sustainable finance, aligning with its vision to create lasting environmental and community impact while driving innovation.
The loan’s uniqueness stems from its holistic approach, blending targeted funding with performance-driven incentives. The green loan supports eco-friendly projects, such as green buildings, which reduce emissions through energy-efficient designs. The SLL ties interest rates to ambitious environmental and social KPIs, including electricity intensity reduction and sustainable building certifications, fostering accountability and continuous improvement. These KPIs directly contribute to CCG 3050+, the Group’s SBTs by lowering Scope 2 emissions and enhancing portfolio sustainability. The social loan supports community initiatives, aligning with UN SDGs and reinforcing CCG’s ESG commitments.
This pioneering loan exemplifies CCG’s strategic approach to sustainable finance: leveraging capital to drive measurable environmental and social outcomes while promoting transparency and accountability. It also establishes a new benchmark in the regional market, demonstrating how innovative financing solutions can accelerate progress toward a low-carbon, inclusive future.
Sustainable Investment Criteria
We are committed to a responsible investment strategy that aligns with our ESG Due Diligence Checklist for M&A and Sustainable Investment Guidelines. Our sustainable investment criteria aim to build a resilient portfolio that contributes to a sustainable future, minimises risks, and delivers long-term value while adhering to robust ESG standards.
ESG Due Diligence Checklist for M&A
When evaluating M&A opportunities for assets, we integrate ESG considerations into the decision-making process. Our ESG Due Diligence checklist assesses potential risks and opportunities across various sustainability aspects, including building safety, climate risk resilience, and energy efficiency. Compliance with building standards and carbon intensity for target assets is evaluated. Findings from the ESG Due Diligence Checklist are presented to the Strategic Investment Committee and the Board to inform acquisition decisions and guide post-acquisition actions and provisions.
Sustainable Investment Guidelines
Our responsible investment strategy targets an average MSCI ESG Rating of BBB or above in our investment portfolio. We conduct comprehensive analyses of companies’ ESG ratings and their financial indicators to evaluate overall performance. We also prioritise acquiring sustainable bonds whenever they are available from the same issuer. During the fund selection process, we conduct thorough reviews of the ESG performance and credentials of asset management firms associated with our investments. This practice forms the basis for identifying and selecting companies that meet our criteria for ESG performance and practices.
In line with our commitment to sustainable investment, we enforce strict exclusion for sectors that conflict with our values, including but not limited to:
