As the international movement on environmental and social issues accelerates, further substantial efforts are required to achieve a decarbonized society. Sustainable finance to support the realization of such a society is becoming increasingly important. By proactively engaging in sustainable finance, we intend to raise more awareness of the Group's policy among a wide range of stakeholders and promote the diversification of financing and the realization of a decarbonized society.
We have formulated a Sustainability-Linked Finance Framework that defines the sustainability-linked finance requirements, including SPTs and reporting.
We have established the Sustainability-Linked Finance Framework in accordance with the Sustainability-Linked Bond Principles 2023 administered by the ICMA (International Capital Market Association); the Sustainability-Linked Bond Guidelines 2022 established by Japan's Ministry of the Environment; the Sustainability-Linked Loan Principles 2023 jointly administered by the LMA (Loan Markets Association), APLMA (Asia Pacific Loan Market Association), and LSTA (Loan Syndications & Trading Association); and the Green Loan and Sustainability-Linked Loan Guidelines 2022 developed by the Japanese Ministry of the Environment. We obtained a second party opinion from Moody's Japan, an outside institution.
Sustainability-Linked FinanceLoan Framework Second Party OpinionWe have formulated the Green Finance Framework as we look to issue green bonds and execute green loan flexibly.
The framework has set both domestic and global environmental certifications as eligibility criteria, allowing for investment in both domestic and global projects.
We have established our Green Finance Framework in accordance with the Green Bond Principles 2021 administered by the ICMA (International Capital Market Association); Green Bond Guidelines 2022 established by Japan's Ministry of the Environment; the Green Loan Principles 2023 jointly administered by the LMA (Loan Markets Association), APLMA (Asia Pacific Loan Market Association) and LSTA (Loan Syndications & Trading Association); and the Green Loan and Sustainability-Linked Loan Guidelines 2022 established by Japan's Ministry of the Environment. We obtained a second party opinion from Moody's Japan, an outside institution.
Green Finance Framework Second Party OpinionWe have set the following SPTs in the Sustainability-Linked Finance Framework. These targets correspond to the GROUP MATERIALITY (priority issues) set forth in the long-term vision, "& INNOVATION 2030" formulated in April 2024 and the "Group Action Plan to Realize a Decarbonized Society" formulated in November 2021.
Long-Term Vision "& INNOVATION 2030" Group Action Plan to Realize a Decarbonized Society| KPI | SPTs | |
|---|---|---|
| KPI 1 | CO2 and other emission reduction rate (1,000 t-CO2) | Reduce Scope 1 and 2 absolute GHG emissions by 46.2% by FY2030 from a FY2019 baseline *1 |
| Reduce Scope 1, 2, and 3 absolute GHG emissions by 40% by FY2030 from a FY2019 baseline | ||
| KPI 2 | New building external environment certification acquisitionrate (%) *2 | 100% of newly constructed properties to acquire external certification |
*1 SPTs applicable to Sustainability-Linked Loans only.
*2 Limited to rental properties, including office buildings, retail facilities, logistics facilities, and hotel and resort facilities.
| Procurement fiscal year | Total number of loans | Total loan amount |
|---|---|---|
| 2023 | 17 | ¥145.7 billion |
| 2022 | 7 | ¥69.5 billion |
| 2021 | 12 | ¥69 billion |
We proactively engage in green loan and green bond by utilizing green projects that meet the eligibility criteria set forth in the Green Finance Framework.
| Procurement fiscal year | Name of project | Amount financed | Amount allocated | Amount unallocated |
|---|---|---|---|---|
| 2023 | Nagoya Mitsui Building North Building | ¥3 billion | ¥3 billion | ¥- billion |
| Otemachi One Tower | ¥9 billion | ¥9 billion | ¥- billion | |
| East Muromachi Mitsui Building | ¥16.8 billion | ¥16.8 billion | ¥- billion | |
| Sumitomo Mitsui Banking Corporation Building | ¥10 billion | ¥10 billion | ¥- billion | |
| Gran Tokyo North Tower | ¥22 billion | ¥22 billion | ¥- billion | |
| Nihonbashi 1-chome Mitsui Building | ¥24 billion | ¥24 billion | ¥- billion | |
| Kasumigaseki Building | ¥5 billion | ¥5 billion | ¥- billion | |
| 2022 | Yaesu Central Tower, Tokyo Midtown Yaesu |
¥48 billion | ¥48 billion | ¥- billion |
| Tokyo Midtown Hibiya | ¥92.5 billion | ¥92.5 billion | ¥- billion |
| Procurement fiscal year | Name of project | Amount financed | Amount allocated | Amount unallocated |
|---|---|---|---|---|
| 2024 | LaLa arena TOKYO-BAY | ¥9 billion | ¥9 billion | ¥- billion |
| Mitsui Shopping Park LaLaport SAKAI | ¥21 billion | ¥21 billion | ¥- billion | |
| 2023 | Yaesu Central Tower, Tokyo Midtown Yaesu |
¥26.5 billion | ¥26.5 billion | ¥- billion |
| Otemachi One Tower | ¥60.2 billion | ¥60.2 billion | ¥- billion | |
| Nihonbashi Muromachi Mitsui Tower | ¥93.3 billion | ¥93.3 billion | ¥- billion | |
| Nihonbashi Mitsui Tower | ¥50 billion | ¥50 billion | ¥- billion | |
| 2022 | Yaesu Central Tower, Tokyo Midtown Yaesu |
¥80 billion | ¥80 billion | ¥- billion |
| 2021 | 50 Hudson Yards | $300 million | $300 million | $- million |
| 2019 | Nihonbashi Muromachi Mitsui Tower | ¥50 billion | ¥50 billion | ¥- billion |
We obtained an Allocation Review, on our compliance with the eligibility criteria set forth in the framework for each use of funds and on the status of proceeds' appropriation.
For more information on management assertion, please see the link below.
FY2024
(LaLa arena TOKYO-BAY; Mitsui Shopping Park LaLaport SAKAI)
⇒ https://www.mitsuifudosan.co.jp/english/corporate/esg_csr/pdf/2024/assertion_on_allocation_of_proceeds_lalaarena_eng.pdf
FY2023
(Nihonbashi Muromachi Mitsui Tower;Nihonbashi Mitsui Tower)
⇒ https://www.mitsuifudosan.co.jp/english/corporate/esg_csr/pdf/2023/assertion_on_allocation_of_proceeds_nihonbashi_eng.pdf
(Yaesu Central Tower, Tokyo Midtown Yaesu; Otemachi One Tower; Nihonbashi Muromachi Mitsui Tower)
⇒ https://www.mitsuifudosan.co.jp/english/corporate/esg_csr/pdf/2023/assertion_on_allocation_of_proceeds_yaesu_eng.pdf
FY2022 (Yaesu Central Tower, Tokyo Midtown Yaesu)
⇒ https://www.mitsuifudosan.co.jp/english/corporate/esg_csr/pdf/2022/assertion_on_allocation_of_proceeds_yaesu_eng.pdf
FY2021 (50 Hudson Yards)
⇒ https://www.mitsuifudosan.co.jp/english/corporate/esg_csr/pdf/2021/assertion_on_allocation_of_proceeds_eng.pdf
| Fiscal year | Category | Greenhouse gas emissions | Amount of water used | Amount of energy consumption | Property name | Certification acquisition |
|---|---|---|---|---|---|---|
| FY2023 | Office buildings | 44,222t-CO2 | 998,964m3 | 231,153MWh | Tokyo Midtown Yaesu Yaesu Central Tower |
DBJ Green Building Certification (5-star) |
| Nagoya Mitsui Building North Building | DBJ Green Building Certification (5-star) | |||||
| Otemachi One Tower | DBJ Green Building Certification (5-star) | |||||
| Nihonbashi Muromachi Mitsui Tower | DBJ Green Building Certification (5-star) | |||||
| Tokyo Midtown Hibiya | DBJ Green Building Certification (5-star) | |||||
| East Muromachi Mitsui Building | DBJ Green Building Certification (4-star) | |||||
| Sumitomo Mitsui Banking Corporation Building | DBJ Green Building Certification (4-star) | |||||
| Gran Tokyo North Tower | DBJ Green Building Certification (4-star) | |||||
| Nihonbashi Mitsui Tower | DBJ Green Building Certification (5-star) | |||||
| Nihonbashi 1-chome Mitsui Building | DBJ Green Building Certification (4-star) | |||||
| Kasumigaseki Building | DBJ Green Building Certification (4-star) | |||||
| 50 Hudson Yards | LEED GOLD certification |
For detailed information of each Green Projects, please refer to the link below.
On December 21, 2022, we concluded an agreement with Sumitomo Mitsui Trust Bank, Limited, under which the bank provides us with positive impact finance (in the form of funding for companies that is not restricted to certain uses) to the amount of ¥19 billion. We are also working on positive impact finance with financial institutions other than Sumitomo Mitsui Trust Bank, utilizing the "Positive Impact Evaluation Framework".
| Procurement fiscal year |
Total number of loans | Total loan amount |
|---|---|---|
| 2023 | 30 | ¥126.5 billion |
| 2022 | 1 | ¥19 billion |
Positive impact finance is a type of funding that aims to continuously support corporate activities that have an impact (positive or negative) on the environment, society, or the economy, as comprehensively analyzed and evaluated by the providing financial institution, in line with the Principles for Positive Impact Finance*1 published by the UN Environment Programme Finance Initiative (UNEP FI).*2 The biggest characteristics of this sort of finance is that the evaluation criterion that financial institutions use is the level of contribution that a company makes to the achievement of the UN's Sustainable Development Goals (SDGs) through its corporate activities and products or services, and that the financial institution monitors these based on disclosed information, and engages with the company to support its activities.
This evaluation receives third-party feedback from the Japan Credit Rating Agency, Ltd. on the conformance of evaluation procedures with the Principles for Positive Impact Finance and the conformance of evaluation indicators that are applied.
*1 Principles for Positive Impact Finance:
These principles were established by UNEP FI in January 2017 as a finance framework to help achieve the SDGs. Participating banks evaluate the positive impact that a company makes toward the achievement of the SDGs-as disclosed via KPIs-and provide them with funding. In this way, the framework encourages recipient companies to maximize their positive impact and minimize their negative.
The banks that carry out this funding, as responsible financial institutions, monitor indicators to verify that the recipients are continuing to make a positive impact.
*2 United Nations Environment Programme Finance Initiative:
The United Nations Environment Programme (UNEP) is a supplementary body to the UN, and was established in 1972 to implement the Declaration of the United Nations Conference on the Human Environment and the Action Plan for the Human Environment. UNEP FI is a broad, close-knit partnership between UNEP and more than 200 financial institutions from around the world that was set up in 1992. Since that time, UNEP FI has worked with financial institutions and policy and regulatory bodies, to promote a shift to a coordinated financial system that considers economic development and ESG (environmental, social, and corporate governance) themes.
| Theme | Content | Goals and indicators (KPIs) | SDGs |
|---|---|---|---|
Reduce environmental impact and generate energy |
|
(a) Promotion of the Group Action Plan to Realize a Decarbonized Society
Goals
Indicators (KPIs)
(b) Reduction of the amount of water used
Goals
Reduce water intake per base unit to less than the previous fiscal year
Indicators (KPIs)
Water intake per base unit
(c) Reduce waste emissions
Goals
Reduce general and industrial waste emissions per base unit to less than the previous fiscal year
Indicators (KPIs)
General and industrial waste emissions per base unit
(d) Conserve biodiverse environments
Goals
Formulate a biodiversity action plan (during FY2022) with a view to acquiring OECM certification for forests owned by the Mitsui Fudosan Group
Indicators (KPIs)
Status of the biodiversity action plan
|
|
Establish ultra-smart societies by creating neighborhoods |
|
Goals
Promote smart cities
Indicators (KPIs)
Creation of new services that help to promote smart cities
|
|
Achieve health, safety and security in people's daily lives |
|
(a) Provide assets and soft services that meet the needs of diverse working styles
Goals
Indicators (KPIs)
(b) Spread of disaster preparedness that is coordinated with regional communities
Goals
Contribute to urban disaster preparedness
Indicators (KPIs)
Introduction status for smart energy projects
|
|
Achieve a society where a diverse workforce can thrive |
|
(a) Promote diversity and inclusion Goals
(for Mitsui Fudosan Co., Ltd. (non-consolidated)) Indicators (KPIs)
(b) Respect human rights Goals Strengthen supply chain management Indicators (KPIs)
|
|
Third-party conformance evaluations, etc.
Third-party feedback from Japan Credit Rating Agency, Ltd.
Note: https://www.jcr.co.jp/download/7dab648a6f7fdccc23eb667666313cd961ec616dc6c3179b9d/22d1153.pdf
First Allocation of Funds to Sports and Entertainment Facilities and Retail Facilities
Mitsui Fudosan Issues ¥30 billion Green Bond
Mar 10th, 2024Mitsui Fudosan Establishes Sustainability-Linked Finance Framework
Sustainable Financing Totals Over ¥1 trillion, an Industry First
Sep 6th, 2023Mitsui Fudosan Issues ¥100 billion Green Bond
Sustainable Financing Totals Over ¥700 billion
May 31st, 2023Biggest Green Bond Issue in Industry History: ¥130 billion
Sustainable Financing Totals Approximately ¥600 billion
July 8th, 2022Mitsui Fudosan Issues ¥80 Billion in Biggest Green Bond Deal in Japan's Real Estate Industry
The Net Proceeds will be Allocated to Invest in Tokyo Midtown Yaesu,
Promoting Sustainable Finance towards Decarbonized Society
- The Promotion of Sustainable Finance -
Mitsui Fudosan establishes Green Bond Framework and
Sustainability-Linked Loan Framework
- A Measure to Accelerate the Mitsui Fudosan Group's Promotion of ESG Management -
Conditions Determined for Mitsui Fudosan's Green Bond
