Mitsubishi Heavy Industries, Ltd. (MHI) has concluded a Positive Impact Finance(1) agreement with Sumitomo Mitsui Trust Bank, Limited (SuMi TRUST Bank) (contract amount: JPY 10.0 billion yen).

MHI Group, in response to the growing need to address the global challenge of climate change, in 2020, identified five material issues, including "Provide energy solutions to enable a carbon neutral world," as priority measures to contribute to solving societal issues and ensuring continued growth over the medium to long term.In addition, in the 2021 Medium-Term Business Plan announced that same year, MHI Group specified as growth areas "Energy Transition," aiming to achieve decarbonization in the energy supply side, and "Smart Infrastructure," supporting decarbonization, energy efficiency, and labor savings in the energy demand side. By decarbonizing both the generation and use of energy, MHI Group is contributing to achieving Net Zero carbon emissions by 2040 and realizing a carbon neutral world.

In concluding this agreement, SuMi TRUST Bank conducted a Positive Impact Evaluation (this evaluation). The following themes were selected from the MHI Group's materiality issues and other topics as activities that contribute to achieving the UN SDGs (Sustainable Development Goals). For this evaluation, a second opinion has been obtained from the Japan Credit Rating Agency, Ltd.(2) on compliance with respect to the Principles for Positive Impact Finance and the rationality of the evaluation indicators used.

The results of these measures will be disclosed on the MHI Group website, in the MHI Group SUSTAINABILITY DATABOOK, and in the MHI Group INTEGRATED REPORT, etc.

The MHI Group aims to contribute to the sustainable enhancement of corporate value and the realization of a sustainable society by leveraging the Group's comprehensive capabilities and strengths to enrich people's lives.

(1) Positive Impact Finance
Positive Impact Finance (PIF) is a loan intended to provide continuous support for corporate activities while comprehensively analyzing and evaluating the impacts (both positive and negative) that those activities have on the environment, society, and the economy, based on the Principles for Positive Impact Finance and implementation guidelines formulated by the United Nations Environment Programme Finance Initiative (UNEP FI). The key feature of PIF is the use as an evaluation indicator the degree of contribution to achieving the SDGs through corporate activities, products, and services, and monitoring based on disclosed information.

United Nations Environment Programme Finance Initiative (UNEP FI)
The UNEP FI is a broad-based, close partnership between the UNEP and more than 200 global financial institutions. Established in 1992, UNEP FI coordinates with financial institutions, policy agencies, and regulatory bodies to facilitate a shift to financial systems that integrate economic development with environmental, social, and governance (ESG) considerations.

United Nations Environment Programme (UNEP)
The UNEP is an auxiliary agency of the UN established in 1972 to implement the Human Environment Declaration and the International Environmental Action Programme.

Principles for Positive Impact Finance
The Principles for Positive Impact Finance, formulated by the UNEP FI in January 2017, is a financial framework for achieving SDGs. Companies disclose their contributions to achieving SDGs as KPIs. Banks then assess the positive impact of those contributions and provide funding to enhance the beneficial impacts of that company, and to encourage reduction of negative impacts. Banks provide funds as responsible financial institutions, monitoring the KPIs to confirm that the impacts are ongoing.

(2) For more information about the Japan Credit Rating Agency, Ltd., visit the following website: https://www.jcr.co.jp/en/

About MHI Group

Mitsubishi Heavy Industries (MHI) Group is one of the world’s leading industrial groups, spanning energy, smart infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.

For the full version of the press release, visit www.mhi.com/news/24032902.html.

Copyright 2024 JCN Newswire. All rights reserved. www.jcnnewswire.com