Mitsui Chemicals Signed Syndicated Loan Agreement for a Positive Impact Finance
Mitsui Chemicals, Inc.
Mitsui Chemicals, Inc. (Tokyo: 4183; President & CEO: HASHIMOTO Osamu) today announced that it has signed an agreement with Sumitomo Mitsui Trust Bank, Limited (SMTB; President: HASHIMOTO Masaru) for a Positive Impact Finance (PIF) loan with unspecified use of funds. The loan is aligned with the United Nations Environment Programme Finance Initiative (UNEP FI) *1 Principles for Positive Impact Finance.*2
PIF involves comprehensive analysis and evaluation of the environmental, social and economic impacts – both positive and negative – of corporate activities and the provision of loans to support these activities on an ongoing basis. The key feature of PIF is its information disclosure element, using here as a performance indicator the extent to which a company contributes to achieving the Sustainable Development Goals (SDGs) through its activities, products and services.
Overview of the Syndicated Loan
|Date of Agreement||June 25, 2020|
|Arranger/Agent||Sumitomo Mitsui Trust Bank Limited|
|Sum||15 billion yen|
|Purpose of Loan||Working capital|
|Lender (listed in order of the Japanese kana syllabary)||The Senshu Ikeda Bank, Ltd., The Shiga Bank, Ltd., The Chukyo Bank, Ltd., The Hyakugo Bank, Ltd., The Hyakujushi Bank, Ltd., The Bank of Yokohama, Ltd., Sumitomo Mitsui Trust Bank Ltd., and other 1 bank|
The Mitsui Chemicals Group is actively incorporating elements of sustainability into its management and strategies, aiming to realize a cohesive society in harmony with the environment, health and happiness in an aging society and industrial platforms in harmony with local communities. In particular, Mitsui Chemicals is contributing to the achievement of SDGs by creating social value via business activities that see delivery of Blue Value™ and Rose Value™ *3 – yardsticks for assessing the Group’s contributions to the environment and quality of life, respectively.
In concluding the agreement, Mitsui Chemicals is subject to qualitative and quantitative evaluation on the following themes, which have a particular impact on SDG achievement:
(indicators and targets)
|Contribution to society, the environment and the economy through Blue Value™ products||Use of natural energy and non-fossil materials, reduction of greenhouse gas (GHG) emissions through lighter-weight and longer-lasting products, conservation of energy and resources||
|Contribution to society, the environment and the economy through Rose Value™ products||Responding to the declining birthrate and aging population, extending healthy life expectancy, addressing food problems||
|Environmental protection (GHGs and energy, reducing emissions of chemical substances) and chemicals management||Promotion of energy efficiency, fuel switching, creation of process innovation technologies||
|Health, safety and prevention in the workplace||Unstinting pursuit of zero accidents and occupational injuries||
|Effective use of personnel||Maximizing human productivity and satisfaction||
Mitsui Chemicals will disclose the progress and results of these initiatives in the Mitsui Chemicals Report.*4 In signing the agreement, Mitsui Chemicals obtained a third-party opinion from Japan Credit Rating Agency, Ltd. (President: TAKAGI Shokichi) regarding the compliance of its evaluation procedures with the Principles for Positive Impact Finance and the reasonableness of the performance indicators used for evaluation （https://www.jcr.co.jp/en/ ）.
The Mitsui Chemicals Group will continue to pursue its goal of becoming a sustainable corporate group with a global presence by further enhancing its initiatives aimed at creating social value.
*1United Nations Environment Programme Finance Initiative (UNEP FI)
The United Nations Environment Programme (UNEP) is a subsidiary body of the United Nations established in 1972 as an implementing agency for the Human Environment Declaration and the International Environmental Action Programme. UNEP FI is a broad and close partnership between UNEP and more than 200 global financial institutions. Since its establishment in 1992, it has been working with financial institutions and with policy and regulatory authorities to transform itself into a financial system that integrates economic development and environmental, social and corporate governance considerations.
*2Principles for Positive Impact Finance
Formulated in January 2017 by UNEP FI, the Principles for Positive Impact Finance provide a framework for enabling finance to achieve the SDGs. Companies disclose key performance indicators (KPIs) for contributions to achieving SDGs, and banks provide finance after assessing the positive impacts of such contributions. This framework guides efforts to increase positive impacts and reduce negative impacts from the activities of companies being financed. As responsible financial institutions, the lending banks monitor the indicators to ensure that the impacts are being maintained.
*3Blue Value™ and Rose Value™
Yardsticks used to help visualize the contributions that the Mitsui Chemicals Group’s products and services make to the environment and society and enable the Group to share those values with stakeholders, with the goal of realizing a cohesive society that is in harmony with the environment, and achieving health and happiness in an aging society. Mitsui Chemicals uses these distinctive yardsticks to evaluate its products and services according to application. Those that make significant contributions to the environment are certified as Blue Value™ products, while those that substantially enhance QOL are certified as Rose Value™ products.
Blue Value™ / Rose Value™