Second-Party Opinion Download

Sustainalytics is of the opinion that the Norinchukin Bank 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 Renewable Energy, Clean Transportation, Green Buildings 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 7, 9 and 11.

PROJECT EVALUATION / SELECTION

The Norinchukin Bank’s internal process in evaluating and selecting projects is managed by the Treasury and Forex Division. The front business units select the eligible projects. The Treasury and Forex Division double-checks the lists against the Framework criteria and oversees the implementation of the allocation and selection process. The Corporate Planning Division (Sustainability Management Department), together with the front business units as well as Treasury and Forex Divisions, jointly provides the final authorization over the selected projects. The Norinchukin Bank’s Environmental and Social Risk Management (“ESRM”) is applicable to all allocation decisions made under the Framework. Sustainalytics considers these risk management systems to be adequate. Sustainalytics considers the project evaluation and selection process in line with market practice.

MANAGEMENT OF PROCEEDS

The Norinchukin Bank’s processes for management of proceeds is overseen by Treasury and Forex Division. The Norinchukin Bank intends to track and monitor the allocation of proceeds to eligible projects via an internal tracking system. Pending allocation, unallocated proceeds will be temporarily held in cash, cash equivalents or in a bank account or invested in current funds. This process is in line with market practice.

REPORTING

The Norinchukin Bank intends to report on the allocation and impact of proceeds on its website on an annual basis until full allocation of the net proceeds, or an amount equal to the net proceeds. Post full allocation, the Norinchukin Bank will report when there are any changes in the allocation. In addition, The Norinchukin Bank is committed to reporting on relevant impact metrics and is committed to receiving post issuance reports from an independent provider. Sustainalytics views the Norinchukin Bank’s allocation and impact reporting as aligned with market practice.