Second-Party Opinion Download

Sustainalytics is of the opinion that the Sumitomo Corporation 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 categories for the use of proceeds Renewable Energy, Environmentally Sustainable Management of Living Natural Resources and Land Use, Clean Transportation, Energy Efficiency, 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 SDG 7, 11 and 15.

PROJECT EVALUATION / SELECTION

Sumitomo Corporation’s Finance Department selects eligible projects based on the eligibility criteria with the support of the Corporate Sustainability Department. The final decision is made by the Chief Financial Officer. Sumitomo Corporation has in place processes for managing environmental and social risks associated with the eligible projects. These processes are applicable to all allocation decisions made under the Framework. Sustainalytics views that Sumitomo Corporation’s processes for evaluating and selecting projects are in line with market practice.

MANAGEMENT OF PROCEEDS

The Finance Department tracks and monitors the proceeds once a year, using an internal management system. Sumitomo Corporation intends to allocate, the full amount of the proceeds to projects that meet the eligibility criteria within approximately three years from the green bond’s issuance date and/or the green loan’s execution date. Sumitomo Corporation intends to manage an amount equal to the unallocated proceeds in cash or cash equivalents. Sumitomo Corporation’s management of proceeds is in line with market practice.

REPORTING

Sumitomo Corporation intends to report on the allocation of the proceeds and environmental benefits annually on its website until the full allocation of green finance proceeds. This report will include the amount of allocated and unallocated proceeds, planned timing of allocation and management method for unallocated proceeds, as well as quantitative or qualitative environmental performance indicators. Sustainalytics considers Sumitomo Corporation’s reporting is in line with market practice.