Second-Party Opinion Download

Sustainalytics is of the opinion that the Mitsubishi Heavy Industries, Ltd. (hereinafter “MHI” or the “Company”) 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, Renewable Energy/Clean Energy, 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 Goals, specifically SDG 7 - Affordable and Clean Energy.

PROJECT EVALUATION/SELECTION

MHI’s business divisions will evaluate and select projects, and the Finance department then confirms that the projects are aligned with the eligibility criteria. Sustainalytics considers the Company’s project evaluation and selection process in line with market practice.

MANAGEMENT OF PROCEEDS

The Finance department will track the amount of allocated and unallocated green bond proceeds regularly, at least once a year, using the Company’s internal management system. Unallocated proceeds will be held in a form of cash or cash equivalents. The Company intends to allocate green bond proceeds immediately after the bonds’ issuance. The Company’s management of proceeds is in line with market practice

REPORTING

MHI intends to report on the allocation of proceeds and environmental impacts, on its website on an annual basis. Allocation reporting will include the amount of allocated proceeds, amount or share of, allocation schedule for, and method to manage, unallocated proceeds, as well as the overview of projects for which the proceeds were allocated to the extent practicable. Impact reporting will include, the annual amount of power generated (MWh) and the annual amount of CO₂ emissions reduced (tons) by the renewable energy/clean energy facilities funded by the green bond proceeds, as well as the progress in R&D to the extent practicable. The Company is also committed to obtaining annual reviews from an independent reviewer after the issuance of green bonds. Sustainalytics views that MHI’s commitment on reporting and annual reviews as aligned with market practice.