Conclusion of Positive Impact Finance Loan Agreement

Aug. 31, 2021

Kawasaki Heavy Industries, Ltd. announced today that it has concluded a loan agreement (hereinafter “Agreement”) for positive impact finance (PIF)*1 (with unspecified use of funds) with Sumitomo Mitsui Trust Bank, Limited (hereinafter “SMTB”) as part of its sustainable finance initiatives following the issuance of the Sustainability Bonds in July 2021. PIF is in line with the Principles for Positive Impact Finance*2 released by the United Nations Environment Programme Finance Initiative (hereinafter “UNEP FI”) *3.

In concluding the Agreement, Kawasaki selected themes specified in the attached from its materiality (key issues) as activities that will contribute in achieving the SDGs (Sustainable Development Goals). The progress and results of these efforts will be disclosed in the Kawasaki Report (integrated report).
Furthermore, in order to ensure the transparency and objectivity of the evaluation by SMTB, the company has obtained a third-party opinion*4 from Japan Credit Rating Agency, Ltd.

Through its fundraising activities, Kawasaki will continue to contribute to the achievement of the SDGs and the realization of a sustainable society.


*1    PIF is a loan intended to provide continuous support for corporate activities while comprehensively analyzing and evaluating the impacts (both positive and negative) on the environment, society and the economy. The key feature of PIF is that it uses the degree of contribution to the achievement of SDGs through its corporate activities, products and services, as an evaluation indicator and discloses the information on the process.
*2    The Principles for Positive Impact Finance was developed by UNEP FI in January 2017 as a financial framework for achieving the SDGs. Companies disclose the level of contributions to achieving SDGs through KPIs. Banks then provide funding by evaluating the positive impact observed from these KPIs that is intended to guide the borrowers to increase positive impact and reduce negative impact.
The lending bank, as a responsible financial institution, will check if the impact is continuing or not by monitoring the indicators
*3    The United Nations Environment Programme Finance Initiative (UNEP FI)
The United Nations Environment Programme (UNEP) is an executive body for implementing the “Human Environment Declaration” and the “International Environmental Action Programme”, established in 1972 as a subsidiary body to the United Nations system. The United Nations Environment Programme Finance Initiative (UNEP FI) represents a broad as well as close partnership between UNEP and more than 200 global financial institutions. Since its establishment in 1992, UNEP FI has been working in concert with financial institutions, policy/regulatory authorities to transform itself into a financial system that integrates economic development and ESG considerations.
*4    Third-Party Opinion by Japan Credit Rating Agency, Ltd. (Available in Japanese Only):
URL: https://www.jcr.co.jp/greenfinance/

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