1、GREEN FINANCE REPORT 2019 2 Green Finance Report 2019 Introduction MTR established a Green Bond Framework in 2016 and subsequently a Green Finance Framework in 2018. The Green Bond Framework took guidance from the core components and recommendations of the Green Bond Principles (issued by the Intern

2、ational Capital Market Association ICMA) and the Green Finance Framework expanded from this foundation to also factor in the recommendations of the Green Loan Principles (issued by Asia Pacific Loan Market Association APLMA). By providing guidance on the execution, use of proceeds and reporting of t

3、he green financings, these frameworks further integrate MTRs environmental, social and corporate governance into its financing and decision-making processes. In 2019, a 1-year HK$ 1 billion bilateral green loan was arranged. Green Finance Portfolio At the end of 2019, MTRs green finance portfolio co

4、nsisted of nine bonds in three different currencies and two HKD green loans. The bonds were issued by MTR or its issuance vehicle MTR Corporation (C.I.) Limited (“MTR CI”) with the guarantee of MTR. The following tables list out all the green financings. Year Issued Identifier/ISINIssuerCurrency Cou

5、pon (p.a.) Maturity Date Principal Amount 2016MTRCIGB_USD_261102XS1509084775MTR CIUSD2.500%2 Nov 2026USD 600,000,000 2017MTRCIGB_AUD_270628XS1637858546MTR CIAUD3.300%28 Jun 2027AUD 171,000,000 2017MTRCIGB_HKD_320920HK0000365228MTR CIHKD2.460%20 Sep 2032 HKD 722,000,000 2017MTRGB_HKD_470717HK00003524

6、32MTRHKD2.980%17 Jul 2047HKD 338,000,000 2017MTRCIGB_HKD_470906HK0000362761MTR CIHKD2.830%6 Sep 2047HKD 315,000,000 2017MTRGB_USD_470927XS1690683211MTRUSD3.375%27 Sep 2047USD 100,000,000 2018MTRCIGB_HKD_200629HK0000427812MTR CIHKD2.520%29 Jun 2020HKD 348,000,000 2018MTRCIGB_HKD_210502HK0000416609MTR

7、 CIHKD2.560%2 May 2021HKD 413,000,000 2018MTRCIGB_HKD_480328HK0000409455MTR CIHKD3.150%28 Mar 2048HKD 230,000,000 Green Bonds Year ExecutedIdentifier/ISINCurrencyMaturity DatePrincipal Amount 2018MTRGL_HKD_230626HKD26 Jun 2023HKD 2,500,000,000 2019MTRGL_HKD_200617HKD17 Jun 2020HKD 1,000,000,000 Gree

8、n Loans/Credit Facilities 3 Green Finance Report 2019 Project Portfolio The projects funded by our green finance proceeds remained unchanged from the previous year, but the cost incurred in some of the projects increased as these projects progressed further. Details of the projects are available in

9、Appendix I. Use of Proceeds The following table lists out how the green finance proceeds were allocated to the different projects. * Please refer to the 2016-2018 reports for the allocation of the green finance proceeds raised in previous years. #Name of ProjectClassification Total Project Amount Co

10、st Incurred up to Dec 2019 Amount Financed by Green Finance Proceeds AKwun Tong Line ExtensionLow carbon transportHK$ 6.9 billionHK$ 6.1 billionHK$ 3,703 million BSouth Island LineLow carbon transportHK$ 17.2 billionHK$ 16.8 billionHK$ 8,234 million CAir Cooled Chiller ReplacementEnergy efficiencyHK

11、$ 1.1 billionHK$ 356 million HK$ 356 million DTrackside Energy Storage (pilot)Energy efficiencyHK$ 20 millionHK$ 19 millionHK$ 19 million ELok Ma Chau WetlandBiodiversity preservation HK$ 45 million per year HK$ 13 million (from 2017) HK$ 13 million Total: HK$ 12,325 million Year Raised * Descriptio

12、n/ Identifier/ISIN Principal Amount (HKD million) AB CDE 2016One green bond4,6541,3053,349 2017Five green bonds3,1809682,15732194 2018 Three green bonds and one green loan 3,4911,1302,2171404 2019MTRGL_HKD_2006171,0003005111845 Total12,3253,7038,2343561913 Current Allocation in Projects (HKD million

13、) 4 Green Finance Report 2019 MTR Green Bond and Green Finance Frameworks MTR set up a Green Bond Framework (“GBF”) in October 2016. Sustainalytics provided a second opinion that the Framework is aligned with the four pillars of the Green Bond Principles (2016) of the International Capital Market As

14、sociation. In June 2018, MTR expanded upon the foundation of the GBF and established a Green Finance Framework to cover other forms of green financing, taking into account the recommendation of the Green Loan Principles issued by the Asia Pacific Loan Market Association. The Frameworks set out how t

15、he Corporation uses green finance proceeds to fund initiatives to enhance long-term service levels and environmental performances, as well as the reporting thereon, thereby integrating environmental, social and corporate governance into its financing and decision-making process. Summary of the Frame

16、works are as follows: MTR Frameworks: - MTR Green Bond Framework established in October 2016 - MTR Green Finance Framework established in June 2018 - Proceeds of green financings will be used to fund or refinance, in whole or in part, Eligible Investments. - Proceeds of green financings may be used

17、to repay borrowings under MTRs general credit facilities pending allocation to Eligible Investments. - Eligible Investments include projects in the following sectors: Low Carbon Transportation Energy Efficiency Sustainable Transit Stations and Real Estate Properties Adaptation to Climate Change Biod

18、iversity and Conservation Water Management Waste Management Pollution Prevention 5 Green Finance Report 2019 Green project descriptions and environmental benefits Name of Investment (#A) Kwun Tong Line Extension Total Investment Amount HK$6.9 billion Investment Amount Funded by Green Finance HK$3.7

19、billion Category of Eligible InvestmentLow Carbon Transportation Description of Investments In May 2011, the Company entered into project agreements with the Hong Kong SAR Government to design, construct and operate the Kwun Tong Line Extension (“KTL”) and South Island Line (East) (“SIL”). KTL exten

20、ds the existing Kwun Tong Line from Yau Ma Tei station by 2.6km, with two new stations at Ho Man Tin and Whampoa. KTL commenced operation in October 2016. Benefits of Projects The project provides low carbon transportation services to densely populated areas and helps to reduce road traffic congesti

21、ons experienced by the residents. Passenger Trips for 201943,828,0001 (45,365,000 in 2018) Equivalent Carbon Offset (GHG Emission Avoided in tonnes CO2e) 19,700 tonnes CO2 equivalent 2 (22,900 tonnes CO2 equivalent in 2018) Carbon Offset per Million Investment (HK$)2.86 tonnes (3.32 tonnes in 2018)

22、Other Benefits Reduction of road traffic and congestion around the new stations as fewer cars are needed to transport passengers from the area. Energy conservation measures such as regenerative braking systems, full platform screen doors and efficient chiller equipment were implemented. Note1 : Pass

23、enger trips for Kwun Tong Line Extension saw a substantial fall due to public order events in Hong Kong, affecting the operation of the system. Note2 : Please see Appendix I for the method of estimating the CO2 avoided for projects #A and #B. 6 Green Finance Report 2019 Green project descriptions an

24、d environmental benefits Name of Investment (#B) South Island Line (East) Total Investment Amount HK$17.2 billion Investment Amount Funded by Green Finance HK$ 8.2 billion Category of Eligible InvestmentLow Carbon Transportation Description of Investments In May 2011, the Company entered into projec

25、t agreements with the Hong Kong SAR Government to design, construct and operate the Kwun Tong Line Extension (“KTL”) and South Island Line (East) (“SIL”). SIL is a 7km medium capacity metro line connecting the existing Admiralty station to the Southern District of Hong Kong, with four new stations a

26、t Ocean Park, Wong Chuk Hang, Lei Tung and South Horizons. SIL commenced operation in December 2016. Benefits of Projects The project provides low carbon transportation services to densely populated areas and helps reduced road traffic congestions experienced by the residents. SIL was also designed

27、with environmentally friendly features like regenerative braking and trackside energy storage systems, extended noise barriers and green roofs. Passenger Trips for 201945,384,0001 (45,288,000 in 2018) Equivalent Carbon Offset (GHG Emission Avoided in tonnes CO2e) 20,400 tonnes CO2 equivalent2 (22,80

28、0 tonnes CO2 equivalent in 2018) Carbon Offset per Million Investment (HK$)1.19 tonnes (1.33 tonnes in 2018) Other Benefits Estimated 600 kWh of electricity saved annually with the regenerative braking and trackside energy storage systems. Reduction of road traffic and congestion especially at the A

29、berdeen Tunnel. Note1: The impact of public order events in Hong Kong to the operation of the South Island Line was less severe as it was not in the main areas of the events. Note2: Please see Appendix I for the method of estimating the CO2 avoided for projects #A and #B. 7 Green Finance Report 2019

30、 Green project descriptions and environmental benefits Name of Investment (#C) Replacement of Air-Cooled Chillers Total Investment Amount HK$1.1 billion Investment Amount Funded by Green Finance HK$356 million Category of Eligible InvestmentEnergy Efficiency Description of Investments A total of 154

31、 chillers at 38 MTR stations and four railway depots will be replaced with more advanced and environmentally friendly systems by 2023. The new station chillers will provide a more comfortable station environment for passengers, with enhanced energy efficiency using variable-frequency drive inverter

32、technology that could adjust the power output based on the actual temperature detected. Beneficial Environmental Impact Estimate The operating efficiency and performance of the new chillers will be an improvement over the existing chillers, the energy consumption is expected to be reduced by 30.4 GW

33、h when completed: Estimation of benefit Old chiller total energy consumption: 92.1 GWh New chiller total energy consumption: 61.7 GWh Estimated energy conserved per annum: 30.4 GWh Energy conservation estimates based on planned schedule 12,300MWh per year by April 2020 16,300MWh per year by April 20

34、21 19,300MWh per year by April 2022 25,400MWh per year by April 2023 30,400MWh per year by April 2024 Progress of Project and Benefits A total of 60 chillers have been replaced. Computation of savings in energy based on specification numbers is at approximately 11,400 MWh. 8 Green Finance Report 201

35、9 Green project descriptions and environmental benefits Name of Investment (#D) Pilot Installation of Trackside Energy Storage Devices Total Investment Amount HK$20 million Investment Amount Funded by Green Finance HK$19 million Category of Eligible InvestmentEnergy Efficiency Description of Investm

36、ents The energy storage devices were installed at two locations Tsuen Wan Depot (TWD) and Kowloon Ventilation Building (KVB) for energy saving. The regenerative energy obtained from the braking of Electric Multiple Units (EMU) is stored in the storage devices and then back-fed to the power line to b

37、e used by EMUs during acceleration. Beneficial Environmental Impact EstimateThe energy consumption is estimated to be reduced by approximately 600MWh per year. Measured Benefit for 2017/2018 The following were recorded energy saving data for 2017/2018 during the initial installation phase of the pro

38、jects. Operational Impact The system is operational and effectively serving the objective of providing energy efficient solution to the railway network. Total energy saved is as estimated (600MWh per annum) YearTWDKVB 2017248335 2018299358 Total measured conserved energy during installation period (

39、MWh) Detailed measurement was discontinued after 2018 as the system has proven to be operational and effective, and measurement is no longer needed operationally. 9 Green Finance Report 2019 Green project descriptions and environmental benefits Name of Investment (#E) Lok Ma Chau (LMC) Wetland Manag

40、ement Total Investment Amount HK$45 million per year Investment Amount Funded by Green Finance Total of HK$13 million for 20172019 Category of Eligible InvestmentBiodiversity Preservation Background/ Description of Investment In 2007, Kowloon Canton Railway/MTR started operating the 32-hectare Ecolo

41、gical Enhancement Area (EEA) to mitigate the ecological impact from the construction and operation of the Lok Ma Chau extension. The Environmental Impact Assessment report by Environment Protection Department is available at the following link. http:/www.epd.gov.hk/eia/register/report/eiareport/eia_

42、0442000/C13/C13.htm Achievements of Investment The LMC wetland provides a variety of habitats for a wide range of birds, mammals and reptiles, playing a pivotal role in regional biodiversity and helping to maintain the sustainability of local migratory birds. Over 270 bird species have been observed

43、, including the endangered Black-face Spoonbill. During the 2019 breeding season, more than 150 pairs of birds representing 6 different species were spotted. Seven globally threatened bird species, as classified by the International Union for Conservation of Natures (ICUN) Red List of Threatened Spe

44、cies, were recorded during regular bird surveys in the LMC wetland in 2017: Yellow-breasted Bunting critically endangered Oriental Stork endangered Black-faced Spoonbill endangered Lesser White-fronted Goose vulnerable Greater Spotted Eagle vulnerable Eastern Imperial Eagle vulnerable Collared Crow

45、vulnerable Since 2010, around 120 nest boxes designed for the White-Shouldered Starling have been installed in the LMC wetland and more than 100 pairs of White-Shouldered Starling bred in the nest boxes in 2016. Measures are being implemented to attract Pheasant-tailed Jacana to breed in the wetland

46、. The wetland also hosts dragonflies, reptiles, mammals and amphibians including those classified as endangered, vulnerable and near-threatened. There had been regular sightings of the Chinese soft-shelled turtle (threatened species), and the Eurasian Otter (near- threatened species). The 2019 Habit

47、at Creation and Management Plan report is published at the following link. .hk/archive/corporate/en/env_report/hcmp201910.pdf 10 Green Finance Report 2019 The estimation on the reduction of Green House Gas (GHG) emission for the Kwun Tong Line Extension and South Island Line is based on a comparison

48、 of the GHG emissions between MTRs railway lines with that of local buses, i.e. assuming that without the railway lines, passengers would have taken buses for their full journeys. This is a conservative estimate as passengers would likely have also utilized a mix of minibus, taxis and private cars,

49、all emitting more GHG than a local bus. GHG Emission avoided = Number of Passenger * (Emission Factor of Average Bus Emission Factor of MTR) * Average Distance per Passenger Emission Avoidance Estimation for MTR The average travelling distance of each passenger was 10.8km. Based on the number of passengers for the Kwun Tong Line Extension and South Island Line in 2019, the corresponding avoidance of CO2 emissions are computed as follows: Appendix I - Methodology for estimating