Project Details
Project
Mitsui Fudosan Green Bond Second-Party Opinion
Client
Mitsui Fudosan
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Japan
Evaluation Date
Aug 2020
Evaluation Summary
Sustainalytics is of the opinion that the Mitsui Fudosan Co., Ltd. (“Mitsui Fudosan” or “the Company”) Green Bond Framework (the “Framework”) 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, Green Buildings, 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 Goals, specifically SDG 9.
PROJECT EVALUATION/SELECTION
Eligible projects will be evaluated and selected by Mitsui Fudosan’s ESG Promotion Department and Accounting and Finance Department and will be reviewed by the ESG Promotion Committee, which is headed by the Representative Director, President and CEO, based on eligibility criteria. Final decisions will be made by the officer administering the Accounting and Finance Department. Sustainalytics considers the Company’s project evaluation and selection process to be aligned with market practices.
MANAGEMENT OF PROCEEDS
Finance Group at Mitsui Fudosan’s Accounting and Finance Department will track the amount of allocated and unallocated proceeds of the green bonds once a year, using the internal management system of Mitsui Fudosan and such affiliates of the Company until the maturity of green bonds. Pending full allocation of the net proceeds, an amount equal to the unallocated balance will be maintained in cash equivalents. Sustainalytics views the Company’s process for managing proceeds as aligned with market practices.
REPORTING
Mitsui Fudosan intends to annually report on the allocation of the net proceeds of green bonds and positive environmental impacts on its website until full allocation. The allocation reporting will include an overview of funded projects, the amount of allocated proceeds, and the date of allocation and relevant environmental performance indicators. Mitsui Fudosan is committed to receive a review by an independent third-party organization on the compatibility of the use of proceeds and the eligibility criteria until full allocation. Sustainalytics considers the Company’s reporting and commitment regarding annual review as aligned with market practices.