Second-Party Opinion Download

Sustainalytics is of the opinion that the Toda Corporation Green Bond Framework 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 category for the use of proceeds, renewable energy, is aligned with those recognized by the Green Bond Principles. Sustainalytics considers that the construction of Offshore Wind Turbine projects will lead to positive environmental impacts and advance the UN Sustainable Development Goal 7.

PROJECT EVALUATION/SELECTION

Toda Corporation's Energy Division ensures that projects selected for funding through the green bond proceeds are aligned with eligibility criteria and comply with relevant environmental risk mitigation processes. The Board of Directors provides final approval for selection of projects. Sustainalytics views the C-suite involvement as in line with market best practice.

MANAGEMENT OF PROCEEDS

Toda Corporation’s finance department will allocate and manage the proceeds from the green bond, using an internal management system to keep track of the budget and actual expenditures to eligible projects on a quarterly basis. Toda Corporation’s process to manage and track proceeds using internal management systems is in line with market practice.

REPORTING

Toda Corporation is committed to disclosing the amount allocated to each project and project description on its corporate website and CSR report annually. In addition, the company commits to reporting on quantitative impact metrics such as power output capacity of wind turbines and the amount of carbon offset from the project where data is available. Furthermore, Toda Corporation intends to disclose an annual letter confirming that the proceeds are allocated to the eligible projects from its Chief Financial Officer, which is in line with market best practice.