IHI Concludes Transition Loan Agreement with Sumitomo Mitsui Banking Corporation
IHI announces today that it recently concluded a transition loan agreement with Sumitomo Mitsui Banking Corporation. IHI formulated a Sustainable Finance Framework for this loan in September last year. Such loans enable financial institutions to fund corporate efforts to transform their businesses to cut carbon emissions and help decarbonize the economy.
The objective of transition finance is to support companies that are making efforts to reduce greenhouse gas emissions in accordance with the long-term transition strategy toward achieving carbon neutrality, which is the goal of the Paris Agreement. Transition finance is also one of the concrete efforts to realize the 2050 Carbon Neutrality Declaration of the Government of Japan.
IHI will leverage the loan to undertake new investments or refinancing for projects that it designated under the framework in stepping up ESG management in keeping with Group Management Policies 2023, which it announced in May last year. These include investing in clean energy, focusing on ammonia.
In line with its management philosophies, which emphasize contributing to the development of society through technology and that human resources are its single most valuable asset, and the IHI Group ESG Management policy, the IHI Group has made mitigating and adapting to environmental change a top management priority.
IHI will use funds from this loan to shift management resources to growth areas based on Group Management Policies 2023 to become a sustainable, high-growth company.
Reference links
IHI Group ESG Management
https://www.ihi.co.jp/en/sustainable/esg/
Group Management Policies 2023
https://www.ihi.co.jp/en/ir/management/management_plan/
IHI Sustainable Finance Framework
https://www.ihi.co.jp/en/sustainable/finance/i/231012_framework.pdf