Project Details
Project
Mitsubishi HC Capital Inc. Sustainable Bond Framework Second-Party Opinion (2023)
Client
Mitsubishi HC Capital Inc.
Project Type
Sustainability Bond/Loan
Industry Group
Diversified Financials
Use of Proceeds
Renewable energy; Green buildings; Access to essential services;
Location
Japan
Evaluation Date
Mar 2023
Evaluation Summary
Sustainalytics is of the opinion that the Mitsubishi HC Capital Inc. Sustainable Bond Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, and Social Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Renewable Energy, Green Buildings, and Access to Essential Services – are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 3, 7, and 9.
PROJECT EVALUATION AND SELECTION
Mitsubishi HC Capital Inc.’s Environment & Energy Business Department, Real Estate Business Department, or Healthcare Business Department will be responsible for selecting candidate eligible projects. The final decision will be made by a relevant approver ranging from the related General Managers to the Board of Directors respectively, depending on the monetary amount of the projects. Afterwards, from the list of approved candidate projects, Mitsubishi HC Capital Inc.’s Treasury Department will determine projects for the allocation of bond proceeds, verifying the alignment with the eligibility criteria under the Framework. Mitsubishi HC Capital Inc. has in place environmental and social risk management systems that are applicable to all eligible projects under the Framework. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Mitsubishi HC Capital Inc.’s Treasury Department will allocate proceeds to eligible projects using internal management files. The proceeds will be tracked and managed until the full redemption of bonds. Unallocated proceeds will be held in cash or cash equivalents. This is in line with market practice.
REPORTING
Mitsubishi HC Capital Inc. will annually report on the allocation of proceeds and environmental impacts on its website until the full redemption of bonds. The report will include the outstanding amount of the bond, the amount of allocated and unallocated proceeds, and relevant qualitative and quantitative impact metrics by eligible project category. Sustainalytics views Mitsubishi HC Capital Inc.’s allocation and impact reporting as aligned with market practice.