Project Details
Project
NH Foods Ltd. Sustainability Finance Second-Party Opinion
Client
NH Foods Ltd.
Project Type
Sustainability Bond/Loan
Industry Group
Food Products
Use of Proceeds
Green buildings; Access to essential services;
Location
Japan
Evaluation Date
Jan 2021
Evaluation Summary
Sustainalytics is of the opinion that the NH Foods Ltd. (“NH Foods” or “the Company”) Sustainability Finance Framework (The “Framework”) is credible and impactful and aligns with the four core components of the Sustainability Bond Guidelines 2018 (SBG) and the Green Loan Principles 2020. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds Green Buildings, and Access to Essential Services, are aligned with those recognized by the SBG. Sustainalytics considers that the eligible categories will lead to positive environmental and social impacts and advance the UN Sustainable Development Goals, specifically SDG goals 9 and 11.
PROJECT EVALUATION/SELECTION
The Accounting and Finance Department of NH Foods evaluates and selects the projects that are aligned with the eligibility criteria. The selected projects are then finalized by the executive officer in charge of the Accounting and Finance Department. Sustainalytics considers that the evaluation and selection process of NH Foods is aligned with market practice.
MANAGEMENT OF PROCEEDS
The Accounting and Finance Department will track and manage the allocated and unallocated amounts of the proceeds of the sustainable finance annually using an internal system and ledger sheets until maturity. Unallocated proceeds will be held in cash or cash equivalents. The management of proceeds of NH Foods is aligned with market practice.
REPORTING
NH Foods will provide allocation reporting and impact reporting annually on the “NH Group Integrated Report.” NH Foods will disclose amounts of allocated and unallocated proceeds, and amount or the share of refinancing on the allocation reporting and the type and level of green building certificates obtained for the funded projects, positive environmental impact metrics including CO2 emissions as well as positive social impact metrics including the number of slopes and multifunctional toilets installed, and the size of established car parks for wheelchair users. Sustainalytics views the reporting of NH Foods as aligned with market practice.