Project Details
Project
Japan Excellent, Inc. Green Finance Framework Second-Party Opinion
Client
Japan Excellent, Inc.
Project Type
Green Bond/Loan
Industry Group
Real Estate
Use of Proceeds
Green buildings
Location
Japan
Evaluation Date
Oct 2021
Evaluation Summary
Sustainalytics is of the opinion that the Japan Excellent, Inc. Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 and the Green Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds, Green Buildings, is aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 9.
PROJECT EVALUATION / SELECTION
The Sustainability Council of Japan Excellent Asset Management Co., Ltd., the asset management company of Japan Excellent, Inc., will evaluate and select projects based on the eligibility criteria and sustainability policy. Japan Excellent, Inc. has a process to identify environmental and social risks at the time of acquisition of properties. This process will be applied to all allocation decisions made under the Framework. Japan Excellent, Inc.’s processes are aligned with market practice.
MANAGEMENT OF PROCEEDS
Japan Excellent, Inc. will manage the green finance proceeds using a portfolio approach and review the outstanding balance of green financing instruments to ensure that the balance does not exceed the sum of the Debts of Eligible Green Assets and the total amount of expenditures incurred for renovation works that meet the Eligibility Criteria. Sustainalytics confirmed that Japan Excellent, Inc. intends to conduct this management annually. Pending allocation, the amount equal to the unallocated funds will be held in cash or cash equivalents. This process is aligned with market practice.
REPORTING
Japan Excellent, Inc. intends to disclose allocation and impact reporting for the proceeds annually on its corporate website. The report will include the statement that all proceeds have been allocated to Eligible Green Assets in addition to quantitative environmental performance indicators. Sustainalytics is of the opinion that the reporting is in line with market practice.