Japan’s First Conclusion of a Loan Agreement by Utilizing the Positive Impact Evaluation Framework
Dec. 20, 2022
Tokyo, December 20, 2022 – Kawasaki Heavy Industries, Ltd. announced today that it has concluded a loan agreement (“the agreement”) for positive impact finance (PIF) (with unspecified use of funds) with The Gunma Bank, Ltd. as part of its sustainable finance initiatives.
The agreement utilizes the Positive Impact Evaluation Framework (“the framework") provided by Sumitomo Mitsui Trust Bank, Limited (“SMTB”) and marks the first attempt in Japan to obtain individual loans from a financial institution other than the evaluator, SMTB.
Having already received loans from Positive Impact Finance in August 2021, Kawasaki was working on establishing a common framework with several financial institutions for the expansion of Positive Impact Finance in Japan. This scheme is expected to reduce the burden on both the lender and borrower, as well as to avoid discontinuity and discrepancy between the company policy and its individual sustainable finance.
In this framework, Kawasaki selected themes specified in the attached from the material issues in our company to activities that have an impact on achieving the the Sustainable Development Goals (SDGs). In addition, in order to ensure the transparency and objectivity of the evaluation by SMTB, Kawasaki has obtained third-party opinions from Japan Credit Rating Agency, Ltd.
Kawasaki has set a sustainable finance target in the “Group Vision 2030” for 50% of long-term debt in FY 2030 and 100% in FY 2050". By utilizing this framework together with the Sustainability Linked Loan Framework Template established in this November, Kawasaki will accelerate its sustainability management initiatives to realize the “Group Vision 2030” and strengthen its engagement with stakeholders to contribute to the achievement of the SDGs and a sustainable society.