Unity Sustainability Framework

1.Introduction

Unity Group Holdings International Limited and its subsidiaries (collectively referred to as the "Unity Group"), are recognized as one of the leading Energy Services Company (ESCO) and Environmental, Social, and Governance ("ESG") solutions provider in Asia. Unity Group's comprehensive service portfolio encompasses advanced energy efficiency technologies, renewable energy systems, energy storage solutions and vertical indoor farming innovations.

This Framework sets the outline for Unity Group's issuance of any sustainability bond or sukuk in general ("Unity Green Bond/Sukuk") to generate a measurable climate impact, a sustainability bond or sukuk where investors benefit from both financial returns and tangible environmental value.

2.Principles

This Framework streamlines reporting and eligibility criteria, sufficient to meet international expectations such as International Capital Market Association’s (“ICMA”) Green Bond Principles (“ICMA GBP”), Association of Southeast Asian Nations (“ASEAN”) Green Bond Standards (“ASEAN GBS”) and the Unity Green Bond/Sukuk issued are generally aligned with the requirements of ICMA GBP and ASEAN GBS.

Climate bond/sukuk issued under this Framework shall comply with the Climate Bonds Standard & Certification Scheme (“CBSCS”). Sukuks issued under this Framework shall further comply with ICMA’s Guidance on Green, Social and Sustainability Sukuk Guidelines (“ICMA Green Sukuk Guidelines”).

3.Use of Proceeds

The foundation of the Unity Green Bond/Sukuk lies in the responsible and transparent use of its proceeds. Funds raised through each issuance will be exclusively allocated to eligible businesses and projects that support the transition to a low-carbon, climate-resilient, and sustainable economy, while delivering demonstrable environmental benefits.

3.1Eligible Projects

The eligible categories of green projects for the investment of the funds of the Unity Green Bond/Sukuk includes but are not limited to the following:

  1. Renewable energy;

  2. Energy efficiency;

  3. Pollution prevention and control;

  4. Environmentally sustainable management of living natural resources and land use;

  5. Terrestrial and aquatic biodiversity conservation;

  6. Clean transportation;

  7. Sustainable water and waste water management;

  8. Climate change adaptation;

  9. Eco-efficient and/or circular economy adapted products, production

  10. Technologies and processes; and

  11. Green buildings which meet regional, national or internationally recognised standards or certifications.

The above categories of green projects shall meet the following ICMA GBP objectives which are as elaborated below in Section 3.2 and 3.3.

3.2Climate Change Mitigation

Climate change mitigation refers to efforts to reduce or prevent the emission of greenhouse gases (“GHG”) into the atmosphere. Mitigation strategies typically aim at limiting the impact of human activities that contribute to global warming.

Example of Investment in Eligible Projects:

  1. Investing in carbon credit–generating projects that displace fossil fuel usage.

  2. Financing renewable energy projects such as solar photovoltaic (PV), wind, hydro, and battery storage within ASEAN and international markets.

  3. Supporting energy efficiency technologies for industrial processes, buildings, and smart grid systems.

Impact Metrics:

  1. Annual Carbon Dioxide (CO2) emissions reduction (in tonnes).

  2. Percentage of energy produced from renewable sources.

3.3Climate Change Adaptation

This objective focuses on enhancing the resilience of communities, infrastructure, and ecosystems to the impacts of climate change. This includes strategies to help vulnerable populations and ecosystems adapt to changing climate conditions, such as extreme weather events, sea-level rise, and shifting climate patterns.

Example of Investment in Eligible Projects:

  1. Financing climate-resilient infrastructure projects, such as flood defenses, water management systems, and climate-smart agriculture.

  2. Supporting ecosystem-based adaptation measures, including the restoration of natural buffers such as wetlands, mangroves, and forests.

  3. Promoting sustainable urban planning and infrastructure to reduce vulnerability to climate impacts in cities and coastal areas.

Impact Metrics:

  1. Number of people or communities benefiting from climate adaptation measures.

  2. Improved infrastructure resilience as measured by reduced vulnerability to climate risks.

3.4SDGs

The proceeds of any Unity Green Bond/Sukuk will be, among others, used to finance the purchase of the following categories of assets or finance projects in relation to the following categories of projects based on the products and/or services provided by Unity Group that meet any of the Seventeen (17) SDGs established by the United Nations (“UN”):

Projects/Assets related to Description /Examples SDGs Mapping
Carbon Emission Reduction

Assets such as climate-resilient energy systems and low-carbon infrastructure reduce vulnerability by ensuring stable, clean energy supply during extreme weather events.

Carbon emission reduction assets like energy-efficient technologies, renewable energy installations, and carbon capture systems enable countries to meet their Nationally Determined Contributions (NDCs) under the Paris Agreement.

Implementing and demonstrating carbon reduction technologies raises awareness of practical solutions and builds institutional capacity for climate mitigation.

  • Target 13.1
    Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.

  • Target 13.2
    Integrate climate change measures into national policies, strategies and planning.

  • Target 13.3
    Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning.
Renewable Energy

Operation and maintenance of renewable energy plant.

Generation and transmission of energy from renewable energy sources.

Renewable energy sources including Hydro, Solar, Fuel Cell, Wind, Kinetic, Biomass and combustible waste.

  • Target 7.2
    By 2030, increase substantially the share of renewable energy in the global energy mix

  • Target 7a
    By 2030, enhance international cooperation to facilitate access to clean energy research and technology, including renewable energy, energy efficiency and advanced and cleaner fossil-fuel technology, and promote investment in energy infrastructure and clean energy technology.
Energy Efficiency Technology

Development and production of products or technologies that reduce industrial energy consumption, such as improved chillers, improved lighting technology and enhanced battery capacity.

Improved efficiency in the delivery of bulk energy services such as district heating/cooling systems, smart grids, energy recovery technology, and the storage, transmission and distribution of energy that results in reduced energy losses.

  • Target 7.3
    By 2030, double the global rate of improvement in energy efficiency.

  • Target 7a
    Refer to description of Target 7a above.
Sustainability Infrastructure

Modernised operations with improved energy performance and reducing reliance on carbon-intensive energy sources. This fosters a more sustainable industrial base, helping reduce greenhouse gas emissions and operational costs, while improving productivity and competitiveness.

Financing energy-efficient retrofits and smart infrastructure solutions (e.g., automated controls, energy-efficient lighting and Heating, Ventilation, and Air Conditioning (HVAC), advanced metering), Unity Green Sukuk supports resilient and resource-efficient infrastructure.

Incorporate cutting-edge technologies such as Internet of Things (IoT)-based energy management systems, AI-driven analytics, and renewable energy integration. innovation and environmental stewardship.

  • Target 9.2
    Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product, in line with national circumstances, and double its share in least developed countries.

  • Target 9.4
    By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities

  • Target 9.5
    Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, in particular developing countries, including, by 2030, encouraging innovation and substantially increasing the number of research and development workers per 1 million people and public and private research and development spending.
Efficient Consumption and Production

Provides a sustainable, local solution to food security, offering year-round production of fresh, nutritious crops in urban environments. By using cutting-edge lighting technology to optimise plant growth in controlled environments, the system maximises land use efficiency, reduces the need for arable land, and minimises the reliance on traditional agricultural methods that may be constrained by climate change or limited resources.

Sustainable farming practices which exemplifies responsible consumption and production by reducing food waste and the environmental impact of traditional farming methods. It minimises the need for extensive water use, pesticide reliance, and long-distance transportation, significantly lowering carbon emissions associated with food production and distribution. The controlled environment also reduces waste and resource usage, contributing to a more sustainable and circular food production model.

  • Target 2.4
    By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and other disasters and that progressively improve land and soil quality.

  • Target 12.2
    By 2030, achieve the sustainable management and efficient use of natural resources

  • Target 12.4
    By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle, in accordance with agreed international frameworks, and significantly reduce their release to air, water and soil in order to minimise their adverse impacts on human health and the environment.

3.5Exclusion Criteria

Proceeds generated under Unity Green Bond/Sukuk are generally not to be utilised for the following, unless where specifically specified to be excluded for sukuk:

  1. Gambling, gaming business and any prohibited trade;

  2. Tobacco;

  3. Weaponry;

  4. Non-Halal food products sector for proceeds from sukuk;

  5. Investments earning profit by interest rate for proceeds from sukuk;

  6. Alcohol for proceeds from sukuk;

  7. Businesses which are non-Shariah compliant for proceeds from sukuk as may be advised by an appointed Shariah adviser;

  8. Fossil fuel power generation;

  9. Nuclear energy and nuclear related assets;

  10. Waste incineration, gasification which results in pollution or harmful biomass; and

  11. Forestry projects resulting in removal of primary forests.

4.Project Evaluation and Selections

4.1Evaluation

A working group shall be formed for the purpose of evaluating and selecting proposed projects eligible for the investment of the Unity Green Bond/Sukuk proceeds (“Unity Working Group”). This working group comprises of relevant departments within the Unity Group and also any other external advisers as may be appointed for the issuance of any Unity Green Bond/Sukuk. Unity Working Group shall ascertain the eligibility of each proposed projects; whether the proposed projects are in compliance with Framework, other policies of Unity Group.

For the issuance of any sukuk, an ad-hoc Shariah advisor who is approved, licensed or recognised under the jurisdiction of the issuer of the sukuk, may also form part of the Unity Working Group to advise on the Shariah compliant requirements for proposed projects.

Proposed projects which were ascertained to be eligible earlier shall be further discussed and Unity Working Group determines the project’s inclusion through consensus (“Eligible Projects”). The precautionary principle applied is to exclude any projects that present uncertainty or doubt.

The Eligible Projects will then undergo a further selection process to determine which Eligible Projects can be included in a unified conceptual portfolio of assets (“Sustainable Asset Portfolio”).

Unity Working Group may include an Eligible Project in the Sustainable Asset Portfolio for a period of up to twenty-four (24) months from the date Unity Group provides financing, makes an investment, or disburses funds for that project. All projects chosen for inclusion will have already undergone a separate review process under Unity Group’s applicable internal environmental and social risk management frameworks, if any. Once added to the Sustainable Asset Portfolio, a project will remain in the portfolio unless it defaults, is terminated, sold, no longer outstanding, or ceases to meet the established eligibility criteria.

5.Management of Proceeds

An amount equivalent to the net proceeds from each Unity Green Bond/Sukuk issued by Unity Group on or after the date of this Framework will be allocated, on a portfolio basis, to finance Eligible Projects within the Sustainable Asset Portfolio, or, pending such allocation, temporarily invested in cash, cash equivalents, and/or other high-quality liquid assets.

The Unity Working Group is obligated, at least annually, to review the Sustainable Asset Portfolio to ensure that:

  1. the projects comprising the Sustainable Asset Portfolio continue to meet the eligibility criteria set forth above; and

  2. the total nominal value of all Eligible Projects within the Sustainable Asset Portfolio is equal to or greater than the aggregate principal amount of all outstanding Unity Green Bond/Sukuk issued by Unity Group on or after the date of this Framework, or, in the event of a shortfall, an amount equivalent to the difference is temporarily held in cash, cash equivalents, and/or other high-quality liquid assets until such amount is allocated.

Moreover, Unity Working Group is also responsible for documenting the selection of Eligible Projects for inclusion in the Sustainable Asset Portfolio and for monitoring the portfolio, as outlined above, in accordance with an internal framework governing attestation, controls, and oversight.

6.Reporting

Unity Group or the issuer of the Unity Green Bond/Sukuk intends to prepare and publicly disclose an annual report detailing the allocation of net proceeds from all outstanding Sustainable Bonds—including any new issuances since the previous report—to Eligible Projects within the Sustainable Asset Portfolio. The level of detail provided will be determined based on what is practicable, taking into account commercial, confidentiality, and other relevant considerations.

Unity Group plans to publish this report annually until the aggregate net proceeds from the applicable Unity Green Bond/Sukuk issuance(s) have been fully allocated to Eligible Projects. Thereafter, any updates to such reports may be published at our sole discretion. Each report or update published by Unity Group concerning the allocation of the proceeds of any issuance of Unity Green Bond/Sukuk shall provide allocation and impact reporting, including detailed highlights of specific Eligible Project examples and associated impact indicators.

7.CBSCS

Unity Green Bond/Sukuk issued under this Framework also includes climate bonds or climate sukuks as may be issued by Unity Group (“Unity Green Climate Bond/Sukuk”).

The issuer of any Unity Green Climate Bond/Sukuk, under Unity Group, shall obtain a CBSCSSustainability-linked Debt (SLD) Certification on any Unity Green Climate Bond/Sukuk.

8.ICMA Green Sukuk Guidelines

Any sukuk, Unity Green Sukuk or Unity Green Climate Sukuk issued under this Framework should:

  1. be under Shariah governance, allocated and directed to activities, projects and companies which are aligned with Shariah and ESG standards; and

  2. promote climate change mitigation and environmental protection in line with the understanding of the role of humans as stewards of the earth.

9.External Review

The Unity Group may obtain a second-party opinion from an appropriate provider to confirm the alignment of this Framework with the international standards and guidelines stated in this Framework.

The related second party opinion may be updated from time to time, and any updates will be made publicly available on the Unity Group’s corporate website at https://www.unitygroup.eco

10.Potential Revisions

As the sustainability bond/sukuk market is still a relatively young market, Unity Group may continuously revise, enhance and improve its Framework.

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