Second-Party Opinion Download

Sustainalytics is of the opinion that the Sumitomo Mitsui Financial Group, Inc. (SMFG) and/or Sumitomo Mitsui Banking Corporation’s (SMBC) Green Bond is credible and impactful, and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds, Renewable Energy, Clean Transportation, Energy Efficiency, Green Buildings, and Pollution Prevention and Control 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 3, 7, 9 and 11.

PROJECT EVALUATION/SELECTION

Eligible projects are reviewed and selected by SMBC’s Structured Finance Department based on eligibility criteria, and the decision will be made by SMFG’s Corporate Treasury Department and SMBC’s Planning Department Treasury Unit. This is in line with market standard.

MANAGEMENT OF PROCEEDS

The proceeds of the green bond will be monitored by internal systems that ensures an amount equal to the net proceeds from Green Bonds to be allocated to assets that meet SMFG/SMBC’s criteria of Eligible Green Projects. This is in line with market standard.

REPORTING

SMFG/SMBC intend to report allocation proceeds on its website on an annual basis and receive assertions by management to confirm that the proceeds are invested in eligible projects or in financial instruments. Sustainalytics considers receiving management’s assertion is in line with market best practice. With respect to impact reporting, SMFG/SMBC are committed to reporting environmental impact indicators such as the tons of CO2 emission equivalent, amount of energy saved (kwh), or amount of waste recycled (tons), which is in line with market standard.