MHI Concludes Nissay Positive Impact Finance Agreement

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, the following Core Impacts were selected from the MHI Group's materiality issues and other topics as activities that contribute to achieving the UN SDGs (Sustainable Development Goals). The qualitative and quantitative evaluation is conducted by Nippon Life, with a second opinion provided by Rating and Investment Information Inc. (R&I) (Note2) regarding compliance with 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.

• 1Nissay Positive Impact Finance is ESG-themed investment provided by Nippon Life. By identifying the impacts that a company's overall business activities have in the areas of environment, society, and economy, and setting KPIs, the financing aims to increase positive impacts while reducing negative ones.
  Major ESG Investment and Finance Examples
  https://www.nissay.co.jp/global/sustainability/esg/example.html


• 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.
• 2For more information about Rating and Investment Information, Inc. (R&I), visit the following website:
  https://www.r-i.co.jp/en/index.html
• 3"Health and Productivity Management®" is a registered trademark of Nonprofit Organization Kenkokeiei.

Reference Links

■ MHI Group Sustainability

• https://www.mhi.com/sustainability

■ MHI Group SUSTAINABILITY DATABOOK 2023 (FYE March 31, 2023)

• https://www.mhi.com/sustainability/library/pdf/sustainabilitydatabook2023.pdf (8.4MB)

■ MHI Group INTEGRATED REPORT 2023 (FYE March 31, 2023)

• https://www.mhi.com/finance/library/annual/pdf/report_2023.pdf (8.1MB)