Positive Impact Finance

Positive Impact Finance (PIF), based on the Principles for Positive Impact Finance (Note1), and implementation guidelines formulated by the United Nations Environment Programme Finance Initiative (UNEP FI) is a loan intended to provide continuous support for corporate activities while comprehensively analyzing and evaluating the impacts (both positive and negative) those activities have on the environment, society, and the economy. The key feature of PIF is the use of the degree of contribution to achieving the SDGs through corporate activities, products, and services as an evaluation indicator, and monitoring based on disclosed information.

MHI has defined two growth areas to focus on in its 2021 Medium-term Business Plan, announced in October 2020: “Energy Transition,” which aims to decarbonize the energy supply side, and “Smart Infrastructure,” which aims to realize decarbonization and promote energy efficiency, manpower saving in the energy demand side. As part of the financing necessary for focusing on businesses in these areas, and promoting decarbonization, electrification and intelligence in its existing businesses, MHI is utilizing ESG finance such as green bonds and transition bonds.

In concluding the PIF loan agreement, themes were selected from the MHI Group's materiality and other topics as activities that will contribute to achieving the SDGs (Sustainable Development Goals).
MHI receives qualitative and quantitative evaluations from each financial institution, as well as third-party opinions from rating agencies regarding the compliance of its evaluation procedures with the Principles for Positive Impact Finance and the reasonableness of the performance indicators used for evaluation.

Positive Impact Finance Agreement with Sumitomo Mitsui Trust Bank, Limited

Positive Impact Finance Agreement with Nippon Life Insurance Company

Positive Impact Finance Agreement with MUFG Bank

  • 1 Principles for Positive Impact Finance
    The Principles for Positive Impact Finance, formulated by 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.
    United Nations Environment Programme Finance Initiative (UNEP FI)
    The United Nations Environment Programme Finance Initiative (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.