We are pleased to announce that Texhong has recently been granted the Sustainability Linked Loan by Cathay United Bank under the Green and Sustainable Finance Certification Scheme of 2021.

Texhong has long been committed to its ESG effort, adopting high standards and specific measures to ensure responsible and sustainable business operations. As the investment industry becomes more aware of the importance of ESG compliance, investors are hoping to allocate capital to projects and companies that bring positive impact to the world. Texhong is confident to be one of such companies.

The Green Finance Certification Scheme was a sustainability initiative kicked off by Hong Kong Quality Assurance Agency (HKQAA) in 2019. The Scheme provides third-party conformity assessments on green fund, and encourages more investors from the fund market to contribute to green economy. In the development process of the Scheme, HKQAA has drawn reference from a number of widely-acknowledged international standards, such as ESG funds of the Securities and Futures Commissions (SFC), Clean Development Mechanism of United Nations Framework Convention on Climate Change (UNFCCC); Principles for Responsible Investment of United Nations; SDGs of the United Nations; and so on.

Funds that aim at the certification are expected to meet the requirements of Fund Objectives, Green Asset Evaluation and Selection, Green Asset Monitoring, Information Disclosure and Reporting, and Engagement & Active Ownership. The Scheme is designed to enhance the transparency of the green investment process by making clear to investors how the fund’s green assets are evaluated, selected, and managed.

In order to be qualified for the loan which offers a discounted interest rate, a company is required to meet several Sustainability Performance Targets (SPTs) with a measurable qualitative approach, and will be monitored and audited by the issuer on the key performance indicators (KPIs) annually. The KPIs selected for the Sustainability Linked Loan are related to the solar energy usage, employee training hours and ESG rating improvement.

Being granted the Green Loan under the Scheme, we are glad to be recognized for our continuous ESG efforts, and we have also made commitments in aspects such as carbon emission, energy consumption, and employee training. Texhong is confident and determined in meeting these goals every year, and we will continue to promote better industry sustainability with our partners and stakeholders.