Development of Sumitomo Corporation Green Finance Framework

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo) has developed the Sumitomo Corporation Green Finance Framework (note 1: hereafter, the Framework) to promote awareness of Sumitomo Corporation Group’s initiative of "enhancement of sustainability management" among a wide range of Stakeholders, and to promote such efforts from the viewpoint of financing.

The Framework provides guidelines on the four requirements (1. Use of proceeds, 2. Process for project evaluation and selection, 3. Management of proceeds, and 4. Reporting) for the issuance of green bonds and the procurement of green loans, which are limited to the use of funds for environmentally friendly projects. The Framework is in line with the Green Bond Principles 2021 by the International Capital Market Association (ICMA) and the Green Loan Principles 2021 by the Loan Market Association (LMA), Asia Pacific Loan Market Association (APLMA), and the Loan Syndication and Trading Association (LSTA). For the assessment of the alignment of the Framework with the Green Bond Principles 2021 and the Green Loan Principles 2021, Sumitomo Corporation obtained a second party opinion (note2) from Sustainalytics, a third-party evaluation organization.

Sumitomo Corporation is working towards the enhancement of sustainability management with the belief that continuing to create value that is truly needed by society will contribute to the sustainable growth of the Sumitomo Corporation Group. Based on the medium-term management plan “SHIFT 2023” announced in May 2021, the Sumitomo Corporation Group aims to realize an increase in corporate value and contribute to the realization of a sustainable society through shifting to a business portfolio that has more profitability and downside resilience. The group will achieve this by developing and enhancing businesses that utilize the Sumitomo Corporation Group’s Strengths and next-generation businesses from a medium to long-term perspective. We will work with various stakeholders and promote sustainability management so that the Sumitomo Corporation Group can grow sustainably with society.

Note 1: Sumitomo Corporation Green Finance Framework

Japanese
English

Note 2: The second-party opinion of Sustainalytics

Japanese
English

(Reference material)
Sumitomo Corporation Green Finance Framework “Use of Proceeds”