Second-Party Opinion Download

Sustainalytics is of the opinion that the Mitsui Fudosan Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 and the Green Loan 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 2021 and the Green Loan Principles 2021. Sustainalytics considers that the eligible projects are expected to advance the UN Sustainable Development Goals, specifically SDG 9.

PROJECT EVALUATION / SELECTION

Mitsui Fudosan Co. Ltd’s Sustainability Promotion Division and Accounting and Finance Department will select projects based on the eligibility criteria. When Mitsui Fudosan Co. Ltd issues green bonds or green loans, the final decision will be made by the managing officer in charge of accounting and finance, or the head of relevant departments. In the case where the Company’s affiliate executes green loans, the CEO or CFO of such affiliate will make the final decision. Mitsui Fudosan Co. Ltd’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 to be in line with market practice.

MANAGEMENT OF PROCEEDS

Proceeds will be tracked and managed annually using Mitsui Fudosan Co. Ltd’s internal management system and an Excel-based tracking form. Mitsui Fudosan Co. Ltd intends to achieve full allocation within 24 months of green bond issuance or green loan execution. Pending allocation, unallocated proceeds will be held in cash equivalents. Sustainalytics considers this process to be in line with market practice.

REPORTING

Mitsui Fudosan Co. Ltd intends to report on the allocation and impact from the projects annually. The disclosure 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 and relevant impact indicators. Sustainalytics views Mitsui Fudosan Co. Ltd’s reporting system as aligned with market practice.