Project Details
Project
Hitachi Capital Corporation Green Bond Framework Second-Party Opinion
Client
Hitachi Capital Corporation
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Japan
Evaluation Date
Jan 2019
Evaluation Summary
Sustainalytics is of the opinion that the Hitachi Capital Corporation Green Bond Framework is credible and impactful, and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds, renewable energy, is aligned with that recognized by the Green Bond Principles. Sustainalytics considers that the eligible projects will lead to positive environmental impacts and advance the UN Sustainable Development Goal 7.
PROJECT EVALUATION/SELECTION
Hitachi Capital Corporation’s internal process in evaluating and selecting projects is overseen by its Finance Department/CSR Promotion Department/Environment Committee. The final decision is made by the President and CEO. Sustainalytics views the C-suite involvement as in line with market best practice.
MANAGEMENT OF PROCEEDS
Hitachi Capital Corporation’s processes for management of proceeds is in line with market standards, considering that it keeps track of the proceeds using the cash book until all proceeds are fully allocated to the eligible projects.
REPORTING
Hitachi Capital Corporation is committed to reporting allocation proceeds on Hitachi Capital Report and/or the company website annually until the proceeds are fully allocated. In addition, Hitachi Capital Corporation intends to report the amount of power generated by the allocated projects (kWh) and GHG emissions reduced by the allocated projects (ton). In Sustainalytics’ view, reporting on these metrics is in line with market practice.