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Towngas has established a Green Bond Framework that sets out how it proposes to raise Green Bonds (Towngas Green Bonds) and the use of such bond proceeds to invest in green projects that conform to the company strategy so as to achieve Towngas' long-term goal of sustainable development ("Eligible Green Investments").
Towngas' Green Bond Framework aligns with the Green Bond Principles (GBP) of the International Capital Market Association ("ICMA"). Sustainalytics, a global ESG and corporate governance research and rating provider, has provided an independent Second-Party Opinion Report on Towngas' Green Bond Framework, and has determined that the Framework is transparent and credible, and aligns with the four pillars of the GBP, that is, Use of Proceeds, Process for Project Evaluation and Selection, Management of Proceeds and Reporting. The Green Bonds have been recognised by the Hong Kong Quality Assurance Agency (HKQAA) under the Green and Sustainable Finance Certification Scheme.
Towngas' Green Bond Framework  | Independent Auditor's Assurance Report | |
| Second-Party Opinion Report | HKQAA Post-issuance Stage Certificate |
In 2021, we secured ESG loans totalling HK$2 billion with the support of banks that trust our commitment to ESG excellence. The loans were based on six ESG key performance indicators covering greenhouse gas emissions reduction, renewable energy generation, scrap material recycling and safety.
In 2022, Towngas Smart Energy (a subsidiary of the Group) became the first energy company to issue a sustainability-linked bond in Hong Kong, raising a total of US$200 million. This bond symbolises our vision of a smart energy business based on integration, digitalisation and decarbonisation. The Bond is issued with reference to the Group’s Sustainability-Linked Financing Framework, which aligns with the Sustainability-Linked Bond Principles and Sustainability-Linked Loan Principles of ICMA.
In 2022, Towngas Smart Energy has successfully arranged a 7-year green loan of RMB500 million for the development of the renewable energy business. The RMB500 million green loan proceeds have been fully allocated to investments in photovoltaic power generation systems.
In 2024, Towngas Smart Energy obtained a RMB500 million green loan, which has been fully invested in photovoltaic power generation systems.
In June 2023 Towngas Smart Energy issued its first Panda Bond. Raising a total of RMB1.5 billion (of which RMB500 million is sustainability-linked), the bond is the first sustainability-linked Panda Bond issued by a Hong Kong-invested company on the Chinese mainland. It was oversubscribed due to strong investor interest.
This bond issuance reflects Towngas’ dedication to green initiatives and will play a significant role in the low-carbon transformation of our operations. By utilising sustainable finance and implementing environmentally friendly projects, Towngas is contributing to a greener future.
In 2024, Towngas collaborated with HSBC to launch the first sustainability-linked supplier payment programme in Greater China to advance low-carbon transition within the supply chain.
In 2024, Towngas Smart Energy issued the first “Quasi-REITs” product for industrial and commercial distributed photovoltaic and energy storage. It was the first “Quasi REITs” successfully issued by a Hong Kong-invested company on the Chinese mainland market, with an initial issuance of RMB515 million.
In 2025, Towngas Smart Energy completed phase 2 and phase 3 issuances in the amounts of RMB470 million and RMB812 million respectively.
