MARC Solutions has assigned a “Gold” Impact Assessment to Sime Darby Property NEV (Holdings) Sdn Bhd’s (SDP NEV) Green Finance Framework. The framework sets forth the guiding principles for SDP NEV’s issuance of green financing instruments to fund eligible assets that contribute towards environmental benefits.

SDP NEV is an indirect subsidiary of Sime Darby Property Berhad (SD Property), established to advance the Group’s New Economic Venture (NEV) strategy through the development of institutional-grade, income-generating assets within high-growth sectors. SDP NEV’s portfolio includes, but is not limited to, hyperscale data centres and automated industrial and logistics facilities located within SD Property’s integrated townships. The framework supports the progressive mobilisation of green financing, commencing with SDP NEV’s initial development pipeline and aligning with its long-term sustainability strategy.

The Impact Assessment positions SDP NEV as one of the early movers in ASEAN in applying structured green finance impact evaluation to data centre-led development portfolios, particularly for energy- and water-intensive digital infrastructure assets.

Proceeds raised from the green finance transactions in relation to the framework will be utilised to finance expenditures under the following eligible categories:
• Energy Efficiency
• Sustainable Water and Wastewater Management
• Green Buildings
• Renewable Energy
• Clean Transportation

We opine that the framework is aligned with the core components of the applicable guidelines, frameworks, and principles published by the Securities Commission Malaysia, ASEAN Capital Markets Forum, and the International Capital Market Association, among others.

The Gold assessment of the framework reflects MARC Solutions’ view that the utilisation of proceeds under the framework is expected to generate meaningful sustainability benefits, in alignment with five of the 17 United Nations Sustainable Development Goals.