Second-Party Opinion Download

Sustainalytics is of the opinion that the Renesas Electronics Corporation Green Bond Framework is credible and impactful and aligns to the four core components of the Green Bond Principles 2021. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Clean Transportation, Energy Efficiency, Renewable Energy, and Sustainable Water and Wastewater Management – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 6, 7 and 11.

PROJECT EVALUATION / SELECTION

Automotive Solution Business Unit, IoT and Infrastructure Business Unit, Sustainability Promotion Office, and Chief Technology Officer will evaluate and select Eligible Green Projects based on compliance with the Framework’s eligibility criteria, alignment with Renesas’ sustainability objectives, and applicable national and international environmental standards and regulations. The final decision will be made by the Chief Financial Officer. Renesas Electronics Corporation has internal procedures in place to identify and manage environmental and social risks which are applicable to all allocation decisions made under the Framework. Sustainalytics considers these risk management systems to be adequate and the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

The Treasury team will manage the allocated and unallocated amounts of the proceeds using a separate register of Eligible Green Projects on an annual basis. The Company will ensure a level of allocation to the Eligible Green Projects portfolio that matches or exceeds the amount equal to the net proceeds from outstanding green bonds.  Pending full allocation, proceeds will be held in cash, cash equivalents, short-term investments, or used to repay existing borrowings. This is in line with market practice.

REPORTING

Renesas Electronics Corporation intends to report on allocation and where feasible, impact of proceeds on its website on an annual basis until full allocation. Allocation reporting will include the amount of proceeds allocated to Eligible Green Projects at a bond level and a category level, and the balance of unallocated proceeds. Sustainalytics views Renesas Electronics Corporation’s allocation and impact reporting as aligned with market practice.