Concluded Positive Impact Finance Agreement with Sumitomo Mitsui Trust Bank:
- Evaluation of the Furukawa Electric Group’s SDGs Achievement Initiatives -
- Concluded a Positive Impact Finance loan agreement for sustainable finance with Sumitomo Mitsui Trust Bank.
- Evaluation of the four environmental and supply chain-related initiatives as activities that can impact SDGs achievement.
- The Furukawa Electric Group will continue to promote ESG management to contribute to achieving the SDGs and realizing Vision 2030.
Furukawa Electric Co., Ltd. (Head Office: 2-2-3 Marunouchi Chiyoda-ku, Tokyo; President: Keiichi Kobayashi) has concluded a Positive Impact Finance loan (a type of loan for businesses that does not specify the use of funds; hereinafter, “PIF”) agreement with Sumitomo Mitsui Trust Bank, Limited (hereinafter, “Sumitomo Mitsui Trust Bank”) as part of its initiatives to provide sustainable finance.
PIF is a loan designed to monitor and support corporate activities that contribute to the achievement of the SDGs on an ongoing basis, in accordance with the Positive Impact Financing Principles(*1) proposed by the United Nations Environment Programme and Finance Initiative(*2).
The Furukawa Electric Group stipulates the promotion of ESG management following the “Furukawa Electric Group Vision 2030” (in order to build a sustainable world and make people’s life safe, peaceful and rewarding, the Furukawa Electric Group will create solutions for the new generation of global infrastructure combining information, energy and mobility, hereinafter, “Vision 2030”) Vision 2030 assumes both international and local social issues indicated by the SDGs that are highly relevant to the Furukawa Electric Group and shows the ideal situation for the Furukawa Electric Group for the year 2030, which is the target year for SDGs achievement, and we will contribute to the SDGs by promoting ESG management.
To conclude this loan agreement, the following initiatives of the Furukawa Electric Group (see chart) were evaluated by Sumitomo Mitsui Trust Bank as activities that can impact the achievement of the SDGs.
This agreement has obtained third-party opinions(*3) from the Japan Credit Rating Agency, Ltd. in order to ensure transparency and objectivity in the evaluation by Sumitomo Mitsui Trust Bank.
In the future, we will accelerate its initiatives to achieve the Vision 2030 and promote ESG management in an open, agile, and innovative way.
Chart: Initiatives Evaluated by Sumitomo Mitsui Trust Bank as Activities that Can Impact the Achievement of the SDGs
|Theme||Content||Goals and Indicators (KPI)||SDGs(note 1)|
|Contribution to the decarbonized society||Developing business activities that consider climate change||a. Goal: Reduce greenhouse gas emissions in the business activities 26%(note 2) by FY2030 from a FY2017 base year
KPI: The greenhouse gas emissions (scope 1 and 2)
b. Goal: Improve ratio of renewable energy 3% by FY2025 from a FY2017 base year
KPI: Ratio of renewable energy
|Creating businesses that solve social issues||Contributing to a sustainable society through creating environment-friendly businesses||a. Goal: Improve sales of environmentally friendly products
KPI: Sales of environmentally friendly products
|Conservation of the global environment||Conservation of water resources, reduction and recycle of waste||a. Goal: Reduce water withdrawal 5% by FY2025 from a FY2020 base year
KPI: Water withdrawal
b. Goal: Reduce total waste 5% by FY2025 from a FY2020 base year
KPI: Total waste
|Procurement activities considering environment and society||Supply chain management||a. Goal: Improve ratio of partners(note 3) evaluation
KPI: Ratio of partners evaluation
b. Goal: Hold the Partners’ Meeting regularly
KPI: Status of Partners’ Meeting
c. Goal: Increase the number of our collaboration partners engaged in CO2 emission reductions in procurement logistics
KPI: The number of our collaboration partners engaged in CO2 emission reductions in procurement logistics
(note 1)SDGs related to each theme are adopted from those specified by Sumitomo Mitsui Trust Bank.
(note 2)Announced on March 4, 2021, The Furukawa Electric Group Environmental Vision 2050 sets the challenging target of achieving zero emissions of Scope 1 and 2 greenhouse gases by 2050.
(note 3)The Furukawa Electric Group calls those who do business with us “partners” who collaborate with us to create value.
The principle of positive impact financing
The Principles for Positive Impact Finance were developed by UNEP FI in January 2017 as a financial framework for achieving the SDGs. Companies disclose the level of contributions to achieving SDGs through KPIs. Banks then provide funding by evaluating the positive impact observed from these KPIs that is intended to guide the borrowers to increase positive impact and reduce negative impact.
The lending bank, as a responsible financial institution, will check if the impact is continuing or not by monitoring the indicators.
United Nations Environment Programme Finance Initiative (UNEP FI)
The United Nations Environment Programme (UNEP) is an executive body for implementing the “Declaration of the Human Environment” and the “International Environmental Action Programme”, established in 1972 as a subsidiary body to the United Nations system. UNEP FI represents a wide-ranging and close partnership between UNEP and more than 200 global financial institutions. Since its establishment in 1992, UNEP FI has been working in concert with financial institutions, and policy/regulatory authorities to transform itself into a financial system that integrates economic development and ESG considerations.
Third-party opinions from the Japan Credit Rating Agency, Ltd.
See the Japan Credit Rating Agency’s website.
Related News Releases (Furukawa Electric's Approaches to Climate Change and Assessments Thereof)
Furukawa Electric website "Sustainability" page
Furukawa Electric Group’s efforts towards the SDGs
Based on the “Sustainable Development Goals (SDGs)” adopted by the United Nations, the Furukawa Electric Group has formulated the “Furukawa Electric Group Vision 2030” which sets the year 2030 as its target and is advancing efforts with the aim to “Build a sustainable world and make people’s life safe, peaceful and rewarding, Furukawa Electric Group will create solutions for the new generation of global infrastructure combining information, energy and mobility.” Toward the achievement of our Vision 2030, we will take open, agile, and innovative approaches to promote ESG management that that aims to increase corporate value over the medium to long term and will contribute to the achievement of the SDGs.