Mitsubishi Heavy Industries, Ltd. (MHI) has concluded a Nissay Positive Impact Finance (Note1) agreement with Nippon Life Insurance Company (Nippon Life) (contract amount: JPY 6.0 billion yen).
MHI Group, in response to the growing need to address the global challenge of climate change, in 2020, identified five material issues, including “Provide energy solutions to enable a carbon neutral world,” as priority measures to contribute to solving societal issues and ensuring continued growth over the medium to long term.In addition, in the 2021 Medium-Term Business Plan announced that same year, MHI Group specified as growth areas “Energy Transition,” aiming to achieve decarbonization in the energy supply side, and “Smart Infrastructure,” supporting decarbonization, energy efficiency, and labor savings in the energy demand side. By decarbonizing both the generation and use of energy, MHI Group is contributing to achieving Net Zero carbon emissions by 2040 and realizing a carbon neutral world.
In concluding this agreement, the following Core Impacts were selected from the MHI Group’s materiality issues and other topics as activities that contribute to achieving the UN SDGs (Sustainable Development Goals). The qualitative and quantitative evaluation is conducted by Nippon Life, with a second opinion provided by Rating and Investment Information Inc. (R&I) (Note2) regarding compliance with the Principles for Positive Impact Finance, and the rationality of the evaluation indicators used.
The MHI Group aims to contribute to the sustainable enhancement of corporate value and the realization of a sustainable society by leveraging the Group’s comprehensive capabilities and strengths to enrich people’s lives.
Positive Impact Finance
Positive Impact Finance (PIF) is a loan intended to provide continuous support for corporate activities while comprehensively analyzing and evaluating the impacts (both positive and negative) that those activities have on the environment, society, and the economy, based on the Principles for Positive Impact Finance and implementation guidelines formulated by the United Nations Environment Programme Finance Initiative (UNEP FI). The key feature of PIF is the use as an evaluation indicator the degree of contribution to achieving the SDGs through corporate activities, products, and services, and monitoring based on disclosed information.
United Nations Environment Programme Finance Initiative (UNEP FI)
The UNEP FI is a broad-based, close partnership between the UNEP and more than 200 global financial institutions. Established in 1992, UNEP FI coordinates with financial institutions, policy agencies, and regulatory bodies to facilitate a shift to financial systems that integrate economic development with environmental, social, and governance (ESG) considerations.
United Nations Environment Programme (UNEP)
The UNEP is an auxiliary agency of the UN established in 1972 to implement the Human Environment Declaration and the International Environmental Action Programme.
Principles for Positive Impact Finance
The Principles for Positive Impact Finance, formulated by the UNEP FI in January 2017, is a financial framework for achieving SDGs. Companies disclose their contributions to achieving SDGs as KPIs. Banks then assess the positive impact of those contributions and provide funding to enhance the beneficial impacts of that company, and to encourage reduction of negative impacts. Banks provide funds as responsible financial institutions, monitoring the KPIs to confirm that the impacts are ongoing.
(1) Nissay Positive Impact Finance is ESG-themed investment provided by Nippon Life. By identifying the impacts that a company’s overall business activities have in the areas of environment, society, and economy, and setting KPIs, the financing aims to increase positive impacts while reducing negative ones.Major ESG Investment and Finance Exampleshttps://www.nissay.co.jp/global/sustainability/esg/example.html
(2) For more information about Rating and Investment Information, Inc. (R&I), visit the following website:https://www.r-i.co.jp/en/index.html
(3) “Health and Productivity Management” is a registered trademark of Nonprofit Organization Kenkokeiei.
About MHI Group
Mitsubishi Heavy Industries (MHI) Group is one of the world’s leading industrial groups, spanning energy, smart infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.
For more information, visit www.mhi.com/news/24020902.html.Â
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