Project Details
Project
Seiko Epson Corporation Green Bond Second Party Opinion
Client
Seiko Epson Corporation
Project Type
Green Bond/Loan
Industry Group
Technology Hardware
Use of Proceeds
Eco-efficient products; Renewable energy;
Location
Japan
Evaluation Date
Dec 2019
Evaluation Summary
Sustainalytics is of the opinion that Seiko Epson Corporation (“Seiko Epson” 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, 1) Eco-efficient and/or circular economy adapted products, production technologies and processes; 2) Pollution prevention and reduction; 3) Sustainable water and wastewater management; and 4) Renewable energy, are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that the eligible projects will lead to positive environmental impacts and advance the UN Sustainable Development Goals 6, 7, 9 and 12.
PROJECT EVALUATION/SELECTION
The candidate projects will be selected by the Management and Finance Department upon discussion with Customer's Satisfaction Quality and Environment Planning Division and CSR/CSV Promotion Division based on the eligibility criteria. The selected projects will be reviewed by the Corporate Strategy Council, and the final decisions will be made by the CFO. The Company’s evaluation and selection process is aligned with market practice.
MANAGEMENT OF PROCEEDS
The allocated and unallocated amounts of proceeds will be tracked and managed quarterly by the Management and Finance Department of the Company, using an internal management system. Unallocated proceeds will be held in cash or cash equivalents. Sustainalytics views the process for the management of proceeds to be aligned with market practice.
REPORTING
Seiko Epson intends to publish allocation and impact reporting annually on its website until the bond maturity. Reporting will include the amount of proceeds allocated and unallocated, a brief description of allocated projects, percentage of proceeds allocated to financing and refinancing, and environmental impact indicators for the allocated projects. In addition, Seiko Epson intends to receive a compliance review from Sustainalytics, as an independent external provider. Sustainalytics views Seiko Epson’s allocation and impact reporting along with its commitment to receiving a compliance review to be aligned with market best practice.