Mitsui Fudosan Establishes Sustainability- Linked Finance Framework
Sustainable Financing Totals Over ¥1 trillion, an Industry First
May 10, 2024
Mitsui Fudosan Co., Ltd.
Tokyo, Japan, May 10, 2024 - Mitsui Fudosan Co., Ltd., a leading global real estate company headquartered in Tokyo, announced today that it has established a new Sustainability-Linked Finance Framework in an effort to further promote sustainable finance by expanding methods for raising sustainable financing. This brings the company’s total sustainable financing to over ¥1 trillion.
In FY2023, Mitsui Fudosan raised funds through a variety of sustainable finance methods, including the issuance of a total of ¥230 billion in green bonds, as well as green loans, sustainability-linked loans and positive impact financing, among others. As of the end of March 2024, Mitsui Fudosan has raised a total of over ¥1 trillion in sustainable financing, a first for a domestic real estate company.
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■ Sustainability-Linked Finance Framework
To promote the “Group Action Plan to Realize a Decarbonized Society” formulated in November 2021 from a financing perspective, the Group established the Green Finance Framework, and the Sustainability-Linked Loan Framework, also utilized the Positive Impact Finance by which Mitsui Fudosan has engaged in raising funds through sustainable financing. Recently, Mitsui Fudosan formulated a new Sustainability-Linked Finance Framework in an effort to further promote sustainable finance by expanding methods for raising sustainable financing. In establishing this framework, Mitsui Fudosan has obtained a second-party opinion through Moody’s Japan K.K., an independent rating agency. In addition, the company has the support of Nomura Securities Co. Ltd. as a structuring agent.
< SPTs >
SPT1-1 : Reduce scope 1 and 2 GHG emissions by 46.2% by FY2030 from a FY 2019 baseline※1
SPT1-2 : Reduce scope 1, 2 and 3 GHG emissions by 40% by FY2030 from a FY 2019 baseline
SPT2 : 100% of newly constructed properties to acquire external certification※2
※1 SPTs applicable to Sustainability Linked Loans only
※2 Limited to rental properties, including office buildings, retail facilities, logistics facilities, as well as hotel and resort facilities.
■ Green Finance Framework
In conjunction with the formulation of the new Group long-term vision, & Innovation 2030, announced in April 2024, Mitsui Fudosan also updated its Green Finance Framework. In formulating the framework, the company obtained a second-party opinion from Moody’s Japan K.K., an independent rating agency, and the company’s Green Finance Framework successfully obtained the highest rating possible in the area of contribution to sustainability from Moody’s Japan. Mitsui Fudosan is the first real estate company in Asia to obtain this rating.
・See below for more information on Moody’s second-party opinions regarding the Sustainability-Linked Finance Framework, the Green Finance Framework and the Framework.
https://www.mitsuifudosan.co.jp/english/esg_csr/environment/08.html
■ Sustainability in the Mitsui Fudosan Group
Based on the meaning of its “& mark,” “to generate new value with society through cooperation, coexistence and co-creation, we forge ahead, innovating,” the Mitsui Fudosan Group views the “creation of social value” and the “creation of economic value” as two wheels of a cart. Accordingly, we believe that the creation of social value leads to the creation of economic value, and that this economic value then creates even greater social value.
Moreover, we identified six Group Materiality priority issues when formulating our new management philosophy in April 2024. These Group Materiality priority issues are (1) Contribute to industrial competitiveness, (2) Coexist with the environment, (3) Health and Vitality, (4) Safety and security, (5) Diversity and inclusion, and (6) Compliance and governance. The Mitsui Fudosan Group will work to address each of the materialities through its core business activities and contribute to the promotion of sustainability.
(References)
・ Group Management Philosophy and Long-Term Vision
https://www.mitsuifudosan.co.jp/english/corporate/innovation2030/
・ Group Materiality
https://www.mitsuifudosan.co.jp/english/esg_csr/approach/materiality/
* The initiatives outlined in this release are designed to help address the following two Sustainable Development Goals (SDGs).
