IHI announces today that it recently concluded a transition loan agreement with The Chiba Bank, Ltd. This loan is a finance scheme designed to support companies that make steady efforts to reduce greenhouse gas emissions toward the realization of a carbon-free society during the transition period until companies reach green status. For this loan, IHI is using the Sustainable Finance Framework that it formulated in September 2023.

IHI will leverage the loan to invest in projects that it designated under the framework in stepping up ESG management in keeping with Group Management Policies 2023, which it announced in May this year. These efforts will include investing in aero engines and rockets, primarily to lighten aircraft and electrify their aircraft engines, and in clean energy, focusing on ammonia.

In aero engines and space, IHI aims to maintain and reinforce the expertise and value chain that it has amassed in supplying key parts for civil aero engines. It will also press forward with initiatives to streamline production and its operational structure, developing weight reduction and electrification technologies, exploring ways to deploy hydrogen fuel, and stepping up efforts to develop and commercialize SAF. Through such efforts, it aims to help make aircraft eco-friendly and economically sustainable while helping the aviation sector to decarbonize.

In clean energy, the company will help create the ammonia value chain by accelerating efforts to build a production, transportation, and usage network with partners around the world. This effort will start with gas turbines and other power generation equipment that harness IHI’s world-leading ammonia combustion technology and top-tier storage and receiving terminals.

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 climate change a top management priority.

IHI will leverage funds from the loan to push ahead with transition strategies that drive business transformation progress, achieve carbon neutrality across the value chain, and contribute to carbon neutrality worldwide.

Reference links
IHI Sustainable Finance Framework
https://www.ihi.co.jp/en/sustainable/finance/i/231012_framework.pdf

Group Management Policies 2023
https://www.ihi.co.jp/en/ir/management/management_plan/

IHI Group ESG Management
https://www.ihi.co.jp/en/sustainable/esg/

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