Project Details
Project
Asahi Kasei Corp. Green Bond Second-Party Opinion
Client
Asahi Kasei Corp.
Project Type
Green Bond/Loan
Industry Group
Chemicals
Use of Proceeds
Renewable energy
Location
Japan
Evaluation Date
Mar 2020
Evaluation Summary
Sustainalytics is of the opinion that the Asahi Kasei Corp.’s (Asahi Kasei and the Company) Green Bond Framework (the Framework) is credible and impactful and aligns with the four core components of the Green Bond Principles 2018 (GBP). This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds Renewable energy, is aligned with those recognized by the GBP. Sustainalytics considers that the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goal (SDG) 7.
PROJECT EVALUATION/SELECTION
Asahi Kasei’s Sustainability Strategy Planning Dept. and Energy Division identify candidate projects for the allocation of proceeds based on the eligibility criteria. The projects are re-evaluated and selected by the Sustainability Strategy Planning Dept., Corporate Strategy Dept. and Corporate Finance Dept. based on the eligibility criteria as well as Asahi Kasei’s Group Philosophy and Group Vision. The projects selected will be subject to final verification based on the business’s eligibility at the Management Council, which is chaired by the President. Sustainalytics considers the Company’s project evaluation and selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Asahi Kasei’s Corporate Finance Dept. will track the amount of allocated and unallocated proceeds of the green bond based on its management flow biannually, using internal management systems. Unallocated proceeds will be held in cash or cash equivalents. Sustainalytics views the Company’s process for management of proceeds in line with market practice.
REPORTING
Asahi Kasei intends to report on the allocation of proceeds and environmental positive impacts on its website and sustainability report annually. The allocation reporting includes an overview of projects financed by the proceeds, the amount and share of allocated proceeds, and the amount and share of proceeds allocated to financing and refinancing. The environmental impact reporting includes quantitative environmental impact metrics, including the amount of hydroelectric power generated (MW) by financed renovated facilities and the amount of CO2 emissions reduced (t-CO2). Sustainalytics considers the Company’s reporting as being aligned with market practices.