External Assessments and Sustainable Finance

Based on standards drawn up by Sumitomo Mitsui Banking Corporation (SMBC) and the Japan Research Institute, Ltd., the ESG/SDG-Based Syndicated Loan provided to Mitsui Chemicals assesses the applicant’s efforts toward ESG targets and SDGs, as well as its disclosure of information. The loan is then formed by financial institutions that approve the results of these ESG and SDG assessments. As part of this assessment, it was determined that Mitsui Chemicals meets a very high standard regarding ESG factors. It was also noted that Mitsui Chemicals is doing exceedingly well at implementing initiatives and disclosing information regarding sustainable business management.

The positive impact finance (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. In this finance, our company is monitored by selecting the following five impact categories and disclosing progress and results in the Mitsui Chemicals Report and other publications: “(1) Contribution to society, the environment, and the economy through Blue Value™ products,” “(2) Contribution to society, the environment, and the economy through Rose Value™ products,” “(3) Environmental protection (GHGs and energy, and reducing emissions of chemical substances) and chemicals management,” “(4) Health, safety, and prevention in the workplace,” and “(5) Effective use of personnel.”

The DBJ Employees’ Health Management Rated Loan Program is the world’s first financing menu to incorporate health management ratings into the assessment of companies’ management of employee health and welfare and the selection of those with outstanding records in this area. Using a proprietary screening system, DBJ rates enterprises on the quality of their care for employee health and working conditions. Mitsui Chemicals received the loan under the program after obtaining DBJ’s highest rating as a company with particularly advanced employee health programs.