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Sustainability
Sustainable Finance

Sustainable Finance

IHI Group makes finance integral to its operations in managing ESG.
It has committed itself to raising funds as necessary and cultivating its businesses to help create a world　where nature and technology work in unity.
We accordingly value opportunities for dialogue with society and investors and will continue to do so to enhance corporate value.

Sustainable Finance Framework

IHI Group have formulated the Sustainable Finance Framework to make finance integral to business strategies based on the IHI group’s ESG management, to raise investment funds for achieving sustainable high growth.
With the funds raised using this framework, we will work to solve social issues and create social value, while aiming to improve corporate value and achieve sustainable growth of our business.

IHI Corporation Sustainable Finance Framework

IHI obtained a second-party opinion from Japan Credit Rating Agency, Ltd., relating to conformity assessments, including for the International Capital Market Association’s Climate Transition Finance Handbook 2023.

JCR Climate Transition Finance Framework Evaluation

Reporting

Allocation report and Impact report

May 31, 2023
Impact Reporting

As of the end of FY2023, sustainable finance accounted for 32.0% of total long-term interest-bearing debt.

Green & Transition Finance

Green finance is a type of finance that supports projects with no or low greenhouse gas (GHG) emissions.
Transition finance is a type of finance that supports projects that steadily reduce GHG emissions in accordance with their long-term strategies to realize a decarbonized society.
Against the backdrop of the ever-increasing need to strengthen our response to climate change globally, our Group work together with investors, financial institutions, and other stakeholders to promote "Green & Transition Strategy" toward achieving carbon neutrality by 2050.

Introduction of Green & Transition Finance

Corporate bonds

June 2022
Transition Bond

Bilateral loans

Syndicate loans

Positive Impact Finance

Positive impact finance is a type of finance that comprehensively analyzes the impact of corporate activities on environmental, social, and economic aspects, and aims to support efforts to improve identified positive impacts and reduce negative impacts.
Our Group has formulated the "Group Management Policy 2023" to manage its operations with ESG at the core. We will promote initiatives to achieve "Full-scale business transformation to achieve strong sustainable growth" and "Transformation into a company that can quickly respond to environmental changes”.

Introduction of Positive Impact Finance

Bilateral loans

Syndicate loans

March 2023
Positive Impact Finance Loan Agreement with Shizuoka Bank

Human Capital Management Impact Finance

Human capital finance is a type of finance that aims to analyze the status of human capital management initiatives and information disclosure, and to work with financial institutions to link the value of human capital to the value of the company.
One of IHI Group’s management philosophies is that "Human resources are our single most valuable asset", and in "Group Management Policy 2023”, we have declared that we develop human resources to achieve sustainable high growth. We recognize human resources as the source of a company's competitiveness and will promote efforts to develop human resources.

Sustainable Finance