Feb. 22, 2024
Sumitomo Corporation

Development of Sumitomo Corporation Sustainable Finance Framework

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

The Framework constitutes a revision of the Green Finance Framework developed in February 2022 by expanding the Green eligible project category and by adding the Social eligible project category.The Framework provides guidelines on the four components of Sustainable Finance (Use of proceeds, Process for project evaluation and selection, Management of proceeds, and Reporting) as set out in for the issuance of sustainable bonds and the procurement of sustainable loans, which are limited to the use of funds for environmentally and socially friendly projects. The Framework is in line with Green Bond Principles 2021, Social Bond Principles 2023 and Sustainability Bond Guidelines 2021 by the International Capital Market Association (ICMA) and Green Loan Principles 2023 and Social Loan Principles 2023 by the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA) and the Loan Syndications & Trading Association (LSTA). For the assessment of the alignment of the Framework with the above guidelines, Sumitomo Corporation obtained a second party opinion (note 2) from Rating and Investment Information, Inc., a third-party evaluation organization.

As set forth in the Corporate Message of “Enriching lives and the world”, the aim of Sumitomo Corporation is to further enrich the world, society, and people’s lives. In line with our credo that “Benefit for self and others, private and public interests are one and the same”, passed down through the generations since the company was founded, we strategically allocate management resources in anticipation of the long-term shifting business landscape impacted by these social issues, and we leverage our strengths to continue creating the value that society truly needs. We promote sustainability management in the belief that each of these actions will create a sustainable society and achieve sustainable growth for Sumitomo Corporation.

Note 1: Sumitomo Corporation Sustainable Finance Framework
Japanese PDF
English PDF

Note 2: The second-party opinion of Rating and Investment Information, Inc.
Japanese PDF
English PDF

(Reference material)
Sumitomo Corporation Green Finance Framework “Use of Proceeds”. Revisions and additions are underlined.

Eligible Project categories
Eligibility criteria
Renewable energy
Funds to be used for the following renewable energy projects:
(In the case of investments in corporations, only corporations that specialize in the renewable energy/clean energy business or whose sales related to renewable energy/clean energy are at least 90% of their total are eligible.)
・Wind power generation
Solar power generation
Geothermal power generation (Direct emissions less than 100g-CO2/kWh)
Battery storage business with grid stability
Environmentally Sustainable Management of Living Natural Resources and Land Use
Funds to be used for acquisition, utilization and maintenance of forests based on the Sumitomo Corporation Group Forest Management Policy
Clean transportation
Funds to be used for the following railway-related projects:
・Operation and maintenance of urban passenger railway projects
Energy efficiency
Funds to be used for the following types of energy efficiency-related business:
・Investment in base station construction and operation necessary for providing base station sharing services centered on 5G to mobile network operators (*)
Development, construction, renovation, acquisition, etc. of properties which have received or are expected to receive BELS 5 stars.

* This is expected to have the effect of reducing environmental load through equipment sharing.

Sustainable water and wastewater management Funds to be used for water-related business:
Water supply
Sewerage management
Related equipment and pipes
Green buildings Funds to be used for properties which have received or are expected to receive at least one of the following building certifications:
LEED: “Platinum” or “Gold”
BREEAM: “Outstanding” or “Excellent”
CASBEE for Buildings (New Construction, Existing Buildings and Renovation) or CASBEE for Real Estate: “S” or “A”
DBJ Green Building Certification: “5” or “4”
BCA Green Mark Certification: ”Platinum” or “Gold Plus”
HQE: “Exceptional” or “Excellent”
DGNB: “Platinum” or “Gold”
Green Star: “6-star” or “5-star”
Social Social Access to essential services
Funds required for the following businesses in geographically and socio-economically disadvantaged areas (developing countries in Asia, Africa, etc.)
Telecommunications business with solution of digital divide
Financial services to enhance financial resilience/stability

Corporate Communications Department, Sumitomo Corporation
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