TOP
Sustainability
Sustainable Finance
Positive Impact Finance (with unspecified use of funds) Loan Agreement with Sumitomo Mitsui Trust Bank

Positive Impact Finance (with unspecified use of funds) Loan Agreement with Sumitomo Mitsui Trust Bank

IHI concluded a “Positive Impact Evaluation” and “Positive Impact Finance (with unspecified use of funds)” loan agreement (hereinafter “this agreement”) with Sumitomo Mitsui Trust Bank, Limited.

This agreement is a type of loan agreement intended to support corporations to comprehensively analyze and evaluate the impacts (both positive and negative) of business activities related to the environment, society and economy on an ongoing basis. The most notable feature of PIF is that the degree of contribution from corporate activities, products and services in achieving Sustainable Development Goals (SDGs) is used as an evaluation indicator and monitored based on publicly disclosed information, and that we support corporations’ activities to achieve these goals through engagement.

Loan Assessment
Third-party opinion
Related News Release

Loan Assessment

The following initiatives of IHI are assessed both qualitatively and quantitatively as initiatives that particularly have an impact on achieving SDGs.

Theme	Details	Key Performance Indicators (KPIs)
Help materialize a carbon-neutral economy	Efforts to achieve carbon neutrality in value chain by 2050	(a) Develop and commercialize ammonia combustion equipment Goal Develop and commercialize an ammonia co-firing burner that cuts greenhouse gas emissions by 20% by fiscal 2024 Develop and commercialize a 2,000-kilowatt-class ammonia-fired gas turbine that lowers greenhouse gas emissions by 100% by fiscal 2025 KPI Progress with efforts to develop and commercialize ammonia combustion facilities (b) Develop and commercialize methanation technology Goal Surpass existing technologies by achieving energy conversion efficiency of 60% to 65% (including auxiliary equipment losses) from methane synthesis (10 Nm³/h) by 2030, exceeding that of existing technologies. KPI Progress with efforts to develop and commercialize methanation technology (c) Materialize green transformation Goal Materialize and commercialize collaborative solutions through open collaboration among industry, academia, government, and finance to achieve green transformation KPI Progress in materializing and commercializing collaborative solutions through open collaboration among industry, academia, government, and finance to achieve green transformation
Cut carbon dioxide emissions	Reduce factory and office carbon dioxide emissions by employing energy-saving equipment, upgrading aged facilities, and adopting ammonia and other new in-house technologies	Goal Reduce carbon dioxide emissions in keeping with government policy (by 46% from fiscal 2013 level by fiscal 2030) Reduce carbon dioxide emissions per unit of production at factories and business sites by 1% from a year earlier KPI Carbon dioxide emission intensity (metric tonnes per 100 million yen)
Materialize a sustainable economy	Reduce environmental impacts of factories, offices, and other facilities	(a) Comply with environmental laws and regulations Goal Eliminate violations of environmental laws and regulations and severe environmental accidents KPI Number of violations of environmental laws and regulations Number of severe environmental accidents (b) Pursuing waste 3Rs (reduce, reuse, and recycle) Goal Generated waste not to exceed fiscal 2018 level KPI Waste volumes (metric tons) (c) Managing water usage appropriately Goal Water intake not to exceed fiscal 2018 level KPI Water intake (thousands of cubic meters)
Build a diverse and inclusive workforce	Foster diversity	Goal Raise female representation on Board of Directors to at least 30% by 2030 KPI Percentage of directors who are women

Third-party opinion

For the independent opinion from Japan Credit Rating Agency, Ltd., please visit:
https://www.jcr.co.jp/en/greenfinance/

Related News Release

February 28, 2023 – Notice regarding the Conclusion of a Positive Impact Finance (with unspecified use of funds) Loan Agreement
Notice regarding the Conclusion of a Positive Impact Finance (with unspecified use of funds) Loan Agreement

Sustainable Finance Top