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MHI Concludes Positive Impact Finance Agreement
(Financial Products for Corporate with Unspecified Use of Funds)
(Financial Products for Corporate with Unspecified Use of Funds)
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Tokyo, March 14, 2022 – Mitsubishi Heavy Industries, Ltd. (MHI) has concluded a loan agreement for Positive Impact Finance(Note1) (financial products for corporate with unspecified use of funds) with MUFG Bank, Ltd. (contract amount JPY 2.0 billion yen).
In 2020, the MHI Group identified materiality, including "Provide energy solutions to enable a carbon neutral world," as priority issues to address in order to contribute to solving social issues and continue to grow over the medium to long term in response to the growing need to address climate change, a global issue. In addition, in the 2021 Medium-term Business Plan announced that same year, MHI identified the two growth areas of “Energy Transition,” aiming to achieve decarbonization of the energy supply side, and “New Mobility and Logistics,” supporting decarbonization, energy efficiency, and manpower savings in the energy demand side. MHI Group is committed to promoting the business strategies of these two areas, and to advancing the decarbonization of the existing businesses, electrification, and intelligence, in order to achieve Net Zero by 2040, and to help create a Carbon Neutral society.
In concluding this agreement, MHI selected the following themes from its materiality and other topics as activities that will contribute to achieving the SDGs (Sustainable Development Goals). Mitsubishi UFJ Research and Consulting Co., Ltd. carries out qualitative and quantitative evaluations, and MHI has obtained third-party opinions from the Japan Credit Rating Agency, Ltd.(Note2) regarding the compliance of its evaluation procedures with the Principles for Positive Impact Finance and the reasonableness of the performance indicators used for evaluation.
| Theme | Content | Targets and Indicators (KPIs) | SDGs |
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| Provide energy solutions to enable a carbon neutral world | Strive to continue using existing facilities and promote carbon recycling by significantly improving energy efficiency, capturing and fixing CO2, introducing carbon-free fuels, and expanding the use of nuclear power and renewable energies that meet the world’s highest safety standards. |
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| Transform society through AI and digitalization | Seek to realize a society that balances economic development with the resolution of social issues (Society 5.0) by breaking away from preconceived notions and maximizing the use of AI and digitalization |
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| Build a safer and more secure world | Contribute to the development of society by building critical infrastructure and taking on challenges in the unknown worlds of space and the deep sea. By drawing on this wealth of knowledge and experience, we will build a flexible, robust, and labor-saving system that will contribute to the realization of a safer and more secure society. |
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| Promote diversity and improve employee engagement | Support the growth and health of human resources through the promotion of diversity and health management. Our goal is to train human resources who are full of vitality and can contribute to society not only during their employment but also after retirement. |
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| Enhance corporate governance | Promote compliance management and strengthen internal controls to ensure compliance with laws and regulations and promote honest, fair, and equitable business practices. We will promptly identify opportunities and risks for the organization and take appropriate action. In addition, to earn the trust of society, we will implement timely and appropriate information disclosure regarding management, while ensuring fairness and transparency. |
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| Reduce environmental Impact | Reduce water consumption |
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| Reduce environmental Impact | Reduce volume of waste generated |
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The results of these measures will be disclosed on the MHI website and 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 strength and strengths to enrich people's lives.
- 1Positive Impact Finance (PIF), based on the Principles for Positive Impact Finance 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.
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. 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.
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. - 2Further information on the Japan Credit Rating Agency, Ltd. is available at:
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.