Prime Polymer Secures DBJ Sustainability Linked Loan With Engagement Dialogue
Loan secured based on an evaluation of environmental efforts throughout the Mitsui Chemicals Group
2022.10.31
Mitsui Chemicals, Inc.
Prime Polymer Co., Ltd.
Mitsui Chemicals, Inc. (Tokyo: 4183; President & CEO: HASHIMOTO Osamu) today announced that its subsidiary Prime Polymer Co., Ltd. (Minato-ku, Tokyo; President: FUJIMOTO Kensuke) recently secured financing from the Development Bank of Japan Inc. (DBJ; Chiyoda-ku, Tokyo; President & CEO: JIGE Seiji) via a DBJ Sustainability Linked Loan With Engagement Dialogue.
This loan provided by DBJ is the first loan model to evaluate not only the borrower’s own efforts to reduce the environmental burden of business but also those efforts made by its parent company. Mitsui Chemicals and Prime Polymer intend to devote the full resources of the Mitsui Chemicals Group to make wide-ranging contributions to society.
Features of the DBJ Sustainability Linked Loan With Engagement Dialogue
Based on DBJ’s Sustainability-Linked-Loan Principles and Green Loan and Sustainability-Linked Loan Guidelines, this loan program allows the bank to engage in dialogue to help borrowers establish optimal key performance indicators (KPIs) and sustainability performance targets (SPTs) that will motivate improvements to sustainability management. Regular dialogue throughout the loan term ensures that DBJ accompanies the borrower on their journey to achieving their SPT goals.
KPI and SPT set for this loan
The VISION 2030 Long-Term Business Plan for the Mitsui Chemicals Group established the non-financial metric of a 40 percent reduction in GHG emissions (Scope 1+2) over fiscal 2013–2030. Based on this, the following KPI and SPT have been set as key measures to assist in achieving this goal. Focus will be on taking a scrap-and-build approach to polypropylene (PP) production facilities in order to reduce CO2 emissions from PP production, which is the principal business of key group company Prime Polymer.
| KPI | CO2 emissions from PP production at Prime Polymer’s Ichihara, Osaka and Anesaki Works |
|---|---|
| SPT | Achieving a 23.8 percent reduction in the above KPI over fiscal 2013–2030 |
Outline of the loan
| Date of agreement | October 31, 2022 |
|---|---|
| Lender | Development Bank of Japan Inc. |
| Loan amount | 10 billion yen |
| Borrower | Prime Polymer |
| Link to dialogue report (published edition) | https://www.dbj.jp/topics/dbj_news/2022/html/20221031_204052.html ＊Sorry, Japanese version only. |
DBJ
DBJ’s Fifth Medium-Term Management Plan commits to promoting the bank’s GRIT Strategy*1 in order to contribute to a sustainable society via investments and loans. DBJ intends to continue working to create a sustainable society and promote regional revitalization.
*1 The “GRIT Strategy” refers to the following: G: Realization of a green society; R: Construction of a flexible, strong, safe and secure regional, social and industrial infrastructure; I: Initiatives for innovation that can be evaluated as feasible for commercialization; and T: Strategic initiatives for transition based on current business fundamentals. These are the areas on which the DBJ Group will focus under the Fifth Medium-Term Management Plan.
Reference:
Sustainability in the Mitsui Chemicals Group
https://www.mitsuichem.com/en/sustainability/index.htm