Second-Party Opinion Download

Sustainalytics is of the opinion that the Sumitomo Mitsui Finance and Leasing’s (SMFL 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 categories for the use of proceeds, Renewable Energy and Green Buildings, are aligned with those recognized by the GBP. Sustainalytics considers that investments into renewable energy and green buildings in Japan will lead to positive environmental impacts and advance the UN Sustainable Development Goals 7, and 9.

PROJECT EVALUATION/SELECTION

Eligible projects are evaluated and selected by the Treasury Dept. and the departments related to environmental and energy business and real estate business, and the final approval will be made by the Officer in charge of the Treasury Dept. Sustainalytics considers that SMFL’s evaluation and selection process is aligned with market practice.

MANAGEMENT OF PROCEEDS

The proceeds are allocated and managed by the Treasury Dept. The allocation of the proceeds is tracked and managed quarterly using an internal file. If the balance of eligible assets falls below the outstanding amount of green bonds, other eligible assets will be selected for re-allocation. Pending full allocation, the unallocated proceeds will be held in cash or cash equivalents. This is in line with market practice.

REPORTING

SMFL will report on allocation and positive environmental impacts of the proceeds annually on the company’s website. SMFL will disclose a description of funded projects, amount of allocated and unallocated proceeds, and relevant qualitative and quantitative impact metrics. SMFL will receive a compliance review from a third-party provider until full allocation. Sustainalytics views SMFL’s allocation and impact reporting along with its commitment to receiving a compliance review to be aligned with market best practice.