Purpose and Background
Based on the Sumitomo’s Business Philosophy and the Sumitomo Corporation Group’s Management Principles, the Sumitomo Corporation Group has been working to contribute to the resolution of social issues through its businesses, with an essential management theme "the achievement of a sustainable society". In Medium-Term Management Plan "SHIFT 2023", announced in May 2021, Sumitomo Corporation set the "enhancement of sustainability management" as its growth strategy, aiming to achieve sustainable growth together with society, and set medium and long-term goals, such as making the Sumitomo Corporation Group carbon neutral in 2050, and is taking actions to achieve these goals. As part of these efforts, we have developed the Green Finance 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.
Green Finance Framework
The Sumitomo Corporation’s Green Finance Framework sets forth guidelines for four elements (1. Use of proceeds, 2. Process for project evaluation and selection, 3. Management of proceeds, 4. Reporting) in accordance with the Green Bond Principles 2021 by the International Capital Markets Association (ICMA), and the Green Loan Principles 2021 by the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA), and the Loan Syndications and Trading Association (LSTA).
For the assessment of the alignment of the Green Finance Framework with the Green Bond Principles 2021 and the Green Loan Principles 2021, Sumitomo Corporation obtained a second party opinion from Sustainalytics.