Positive Impact Finance Agreement with Sumitomo Mitsui Trust Bank, Limited

Mitsubishi Heavy Industries, Ltd. (MHI) has concluded a Positive Impact Finance (Note1) agreement with Sumitomo Mitsui Trust Bank, Limited (SuMi TRUST Bank) (contract amount: JPY 10.0 billion yen).
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. (Note2) 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.

Overview of This Evaluation

Theme Impact Targets and Indicators (KPIs) SDGs
Contributing to the realization of a carbon neutral world Reduction of GHG emissions
  1. Reduce CO2 emissions

    [ Target ]

    • Reduce total CO2 emissions from business activities (Scope 1 and 2) by 50% by 2030 (compared to 2014 levels), and achieve net zero by 2040

    [ Indicator (KPI) ]

    • Total CO2 emissions from business activities (Scope 1 and 2) (consolidated basis)
  2. Reduce CO2 emissions across the MHI Group's entire value chain

    [ Target ]

    • Reduce total Reduce CO2 emissions across the MHI Group's entire value chain (Scope 3 + CCUS (Carbon dioxide Capture, Utilization and Storage) contribution for CO2 reduction) by 50% by 2030 (compared to 2019 levels), and achieve net zero by 2040

    [ Indicator (KPI) ]

    • CO2 emissions across the entire value chain (Scope 3 + CCUS contribution for CO2 reduction) (consolidated basis)
7,9,13
Contributing to fully automated and labor-saving measures Fully automated and labor-saving measures
  1. Implement fully automated and labor-saving measures

[ Target ]

  • Promote the development and practical application of technologies that enable the remote operation and automatic inspection of products, businesses and infrastructure

[ Indicator (KPI) ]

  • Status of initiatives on the development and practical application of technologies that enable remote operation and automatic inspection of products, businesses and infrastructure
8,9,11
Promote diversity Project new value through participation of diverse human resources
  1. Project new value through participation of diverse human resources

[ Targets ]

  • Increase the ratio of women on the Board of Directors to at least 30% by 2030 (non-consolidated basis)
  • Double the ratio of women in management positions by 2030 (compared to FY2021) (consolidated basis)

[ Indicators (KPIs) ]

  • Ratio of women on the Board of Directors (non-consolidated basis)
  • Ratio of women in management positions (consolidated basis)
5,8,10
  • 1Positive 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.
  • 2For more information about the Japan Credit Rating Agency, Ltd., visit the following website:
    https://www.jcr.co.jp/en/

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