IHI Concludes Green Loan Agreement with Sumitomo Mitsui Banking Corporation
IHI announces today that it recently concluded a green loan agreement with Sumitomo Mitsui Banking Corporation, Limited. This move is in line with a Sustainable Finance Framework that IHI formulated in September this year.
A Green Loan is a form of financing that enables companies to finance eligible green projects which contribute to environmentally sustainable economic activities. It has the following features; (1) proceeds are allocated exclusively to green projects, (2) proceeds are tracked and managed in a reliable manner and (3)transparency is ensured through post-financing reporting.
IHI will allocate funds from the loan to new investments or to refinance current investments in green projects under the above framework. These are to electrify aero engines, develop sustainable aviation fuel, electrify automobiles, and reduce operational carbon dioxide emissions.
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 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/
Sustainable Finance at IHI
https://www.ihi.co.jp/en/sustainable/finance/index.html