Second-Party Opinion Download

Sustainalytics is of the opinion that the Iwatani Corporation Green Bond Framework is credible and impactful and aligns to the four core components of the Green Bond Principles 2021. This assessment is based on the following:

USE OF PROCEEDS

The eligible category for the use of proceeds – Clean Transportation – is aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in hydrogen supply facilities under the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 11, while noting one substantial limitation attributed to Iwatani Corporation’s sources of hydrogen.

PROJECT EVALUATION / SELECTION

In terms of Iwatani Corporation’s project evaluation and selection process, eligible projects will be selected by the Accounting Department through discussion and verification with responsible business departments, and after confirming compliance with the eligibility criteria defined in the Framework, from the prospective eligible projects approved by the Board of Directors. The final decision will be made by the Director in charge of accounting. Iwatani Corporation has a process for managing environmental and social risks which applies to all allocation decisions made under the Framework. Sustainalytics is of the opinion that Iwatani Corporation’s project evaluation and selection process is in line with market practice.

MANAGEMENT OF PROCEEDS

The Accounting Department will track the use of green bond proceeds quarterly, using an internal management system. Iwatani Corporation intends to complete the allocation of proceeds within two years after green bond issuance. Pending allocation, unallocated proceeds will be held in cash or cash equivalents. Iwatani Corporation’s management of proceeds is aligned with market practice.

REPORTING

Iwatani Corporation intends to report on the allocation of proceeds and positive environmental impacts on its website or Corporate Report. The disclosure will include the amounts allocated and unallocated to eligible projects, the ratio of proceeds allocated to financing and refinancing, and the expected timing of allocation of unallocated proceeds, as well as qualitative and quantitative environmental impact metrics. Sustainalytics views that Iwatani Corporation’s reporting is aligned with market practice.