Project Details
Project
Nomura Green Issuance Framework Second-Party Opinion (2024)
Client
Nomura Holdings Inc.
Project Type
Green Bond/Loan
Industry Group
Banks
Use of Proceeds
Renewable energy; Energy efficiency; Pollution prevention and control; Natural resources/land use management; Clean transport; Green buildings;
Location
Japan
Evaluation Date
Aug 2024
Evaluation Summary
USE OF PROCEEDS
The eligible categories for the use of proceeds – Renewable Energy, Energy Efficiency, Pollution Prevention and Control, Environmentally Sustainable Management of Living Natural Resources and Land Use, Clean Transportation and Green Buildings – are aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7, 9, 11 and 12.
PROJECT EVALUATION AND SELECTION
Nomura has established a Green Issuance Committee which is responsible for evaluating and selecting projects in accordance with the eligibility criteria of the Framework. Nomura has ESG screening and due diligence processes in place to assess environmental and social risks associated with its transactions, including all allocation decisions made under the Framework. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Nomura’s Green Issuance Committee will manage and track the allocation of proceeds on a portfolio basis through an internal tracking method. Nomura intends to reach full allocation within 24 months of issuance. Pending allocation, an amount equal to the unallocated proceeds will be temporarily held in cash, cash equivalents or other liquid marketable instruments in line with Nomura’s liquidity portfolio investment policy. This is in line with market practice.
REPORTING
Nomura commits to report on the allocation of proceeds and the corresponding impact on its website through a Green Issuance Report on an annual basis until full allocation. Allocation reporting will include the financed or refinanced assets by net proceeds and their relevant environmental impact, the aggregated amount allocated to each eligible project category and the balance of unallocated proceeds. Sustainalytics views Nomura’s allocation and impact reporting as aligned with market practice.