Second-Party Opinion Download

Sustainalytics is of the opinion that the Mitsui Fudosan Green Bond Framework is credible and impactful and aligns with 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, Green Buildings, is aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible category are expected to lead to reduction of carbon emissions from Mitsui Fudosan’s operations and help advance the UN Sustainable Development Goals, specifically SDG 9.

PROJECT EVALUATION / SELECTION

Mitsui Fudosan has established an ESG Promotion Committee which will be co-chaired by its president and CEO and will be comprised of designated officers and directors from different business areas of the Company. The ESG Promotion Committee will be responsible for overseeing the process of evaluation and selection of eligible projects and the director of the accounting and finance department will be in charge of final allocation decisions. Mitsui Fudosan’s environmental and social risk assessments and mitigation processes as well as the Group’s sustainable procurement standards apply to all allocation decisions made under the Framework. Sustainalytics considers the project selection process in line with market practice.

MANAGEMENT OF PROCEEDS

Mitsui Fudosan’s accounting and finance department will be responsible for the management and allocation of proceeds to eligible green projects. The proceeds will be tracked using an internal management system and the Company intends to achieve full allocation within 24 months of issuance. The internal management system will include information about allocation of proceeds to eligible projects and loans provided to projects developed by Mitsui Fudosan and its affiliates. Pending allocation, unallocated proceeds will be held in cash equivalents. Sustainalytics considers this process to be in line with market practice.

REPORTING

Mitsui Fudosan intends to report on the allocation and impact from the projects on its website annually until full allocation. The allocation report will include information on eligible projects financed, amount of allocated proceeds and date of funding, amount of unallocated proceeds and expected timeline to allocate the unallocated proceeds. An external third party will review the allocation reporting. In addition, Mitsui Fudosan is committed to reporting on relevant impact indicators. Sustainalytics views Mitsui Fudosan’s reporting system as aligned with market practice.