Positive Impact Finance

Positive Impact Finance
Positive Impact Evaluation Framework

Following the conclusion of our company’s first positive impact finance^*1 in August 2021, Kawasaki Heavy Industries, Ltd. has concluded a loan agreement for positive impact finance (PIF) (with unspecified use of funds) by utilizing the Positive Impact Evaluation Framework provided by Sumitomo Mitsui Trust Bank, Limited (“SMTB”) . This is the first attempt in Japan to obtain individual loans from financial institutions other than the evaluator, SMTB.
PIF is a loan intended to provide continuous support for corporate activities by comprehensively analyzing and evaluating the environmental, social and economic impacts (both positive and negative) of the themes selected as activities that will contribute in achieving the SDGs (Sustainable Development Goals).
Kawasaki has set a sustainable finance target in its “Group Vision 2030” for 50% of its long-term debt in FY2030 and 100% in FY2050. By making active use of sustainable finance^*2, Kawasaki will accelerate its sustainability management initiatives to make contributions to achieve the SDGs and realize a sustainable society.

*1 PIF is a loan with unspecified use of funds which is in line with Principles for Positive Impact Finance released by the United Nations Environment Programme Finance Initiative.

*2 A general term for financing by companies and businesses that contribute to environmental and social sustainability, such as sustainability bonds, positive impact finance and/or sustainability linked loans.