Sustainability Linked Loan

Following the introduction of DBJ Sustainability Linked Loan with Engagement Dialogue (“DBJ-SLL with Engagement Dialogue”) in March 2022, Kawasaki Heavy Industries, Ltd. has established the Sustainability Linked Loan Framework Template (“the SLL Template”) and has signed loan agreements with several lenders by utilizing the Template in November 2022.
Sustainability linked loan is designed to promote a borrower's sustainability management by linking the borrower's achievement of sustainability goals (Sustainability Performance Targets, SPTs) with the terms and conditions of the loan.
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^※1, Kawasaki will accelerate its sustainability management initiatives to make contributions to achieve the SDGs and realize a sustainable society.

*1 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.

DBJ-SLL with Engagement Dialogue

• Mar.31, 2022 Conclusion of Sustainability Linked Loan Agreement

Sustainability Linked Loan Framework Template (the SLL Template)

The SLL Template enables any financial institutions to lend sustainable linked loan without preparing each own framework. This is an advanced and unique approach in sustainable finance.
By utilizing the SLL Template, Kawasaki will not only promote its own sustainable finance initiatives, but also contribute to the promotion of sustainable finance in the loan market by reducing the burden of preparing each own framework.

• Nov. 30, 2022 Conclusion of Loan Agreements By Utilizing the Sustainability Linked Loan Framework Template

Group Vision 2030

Material Issues (Materiality)