Second-Party Opinion Download

Sustainalytics is of the opinion that the Marui Group Social Bond Framework is credible and impactful and aligns with the four core components of the Social Bond Principles 2021. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Access to Essential Services, and Socioeconomic Advancement and Empowerment – are aligned with those recognized by the Social Bond Principles 2021. Sustainalytics considers that investments in the eligible categories will lead to positive social impacts and advance the UN Sustainable Development Goals, specifically SDG 1, 5, 8, and 10.

PROJECT EVALUATION / SELECTION

Marui Group Co., Ltd.’s Financial Department and Co-Creative Investment Department will jointly select candidate projects based on the eligibility criteria defined in the Framework, and the final decision will be made by its Board of Directors. Marui Group Co., Ltd. has in place policies and frameworks for managing environmental and social risks associated with the Eligible Projects. These policies and frameworks are applicable to all allocation decisions made under the Framework. Sustainalytics considers Marui Group Co., Ltd.’s project evaluation and selection process are in line with market practice.

MANAGEMENT OF PROCEEDS

Marui Group Co., Ltd.’s Financial Department tracks and monitors the proceeds on a quarterly basis using the Company’s internal system. Marui Group Co., Ltd. intends to complete the allocation of proceeds to projects that meet the eligibility criteria within three years after the issuance of social bond. Pending allocation, the Company will manage unallocated proceeds in cash or cash equivalents. Sustainalytics considers Marui Group Co., Ltd.’s management of proceeds is in line with market practice.

REPORTING

Marui Group Co., Ltd. intends to report on the allocation of the proceeds and social impact annually on its website or Integrated Report. This disclosure will include the amount of allocated proceeds by project category, the amount of unallocated proceeds, and the statement by managing directors confirming that the proceeds have been allocated to projects that meet eligibility criteria, as well as social impact metrics such as the number of final beneficiaries of microfinance, and the total amount of loans to the final beneficiaries, to the extent feasible. Sustainalytics views Marui Group Co., Ltd.’s allocation and impact reporting as aligned with market practice.