Project Details
Project
Japan Metropolitan Fund Investment Corporation Green Bond Second-Party Opinion
Client
Japan Metropolitan Fund Investment Corporation
Project Type
Green Bond/Loan
Industry Group
Real Estate
Use of Proceeds
Green buildings
Location
Japan
Evaluation Date
Apr 2021
Evaluation Summary
Sustainalytics is of the opinion that the Japan Metropolitan Fund Investment Corporation (”JMF” or the “Investment Corporation”) Green Bond Framework (the “Framework”) is credible and impactful and aligns with the four core components of the Green Bond Principles 2018 (GBP). This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds, Green Buildings, is aligned with those recognized by the GBP. Sustainalytics considers that the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goal (SDG) 9.
PROJECT EVALUATION / SELECTION
The Sustainability Committee of Mitsubishi Corp.-UBS Realty Inc.’s (MC-UBS), JMF’s asset manager, composed of its Deputy President & Representative Director who serves as Chief Sustainability Officer and other members including the President and Chief Operating Officer as well as the ESG Promotion office will evaluate and select the eligible projects based on the eligibility criteria and Responsible Property Investment Policy. Sustainalytics considers this process to be in line with market practice.
MANAGEMENT OF PROCEEDS
MC-UBS will manage the proceeds of the green bond through a portfolio approach and use the accounting system to monitor to ensure the total amount of outstanding green bonds does not exceed the debts of Eligible Green Projects, on an annual basis. Pending allocation, an amount equal to the unallocated proceeds will be held in cash and cash equivalents. Sustainalytics considers this process to be in line with market practice.
REPORTING
JMF intends to report on allocation of proceeds and environmental performance on its website on an annual basis until the maturity of the green bond. Allocation reporting will include, the book value of all the Eligible Green Projects, debts of Eligible Green Projects, and the total amount of outstanding green bonds. Impact reporting will include quantitative environmental performance indicators. Sustainalytics views JMF’s allocation and impact reporting as aligned with market practice.