Second-Party Opinion Download

Sustainalytics is of the opinion that the Toyota Tsusho 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 category for the use of proceeds – Renewable Energy – is aligned with those recognized by the Green Bond Principles and Green Loan Principles. Sustainalytics considers that investments in renewable energy projects will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 7.

PROJECT EVALUATION / SELECTION

Toyota Tsusho Corporation’s Finance department will be responsible for overseeing the evaluation and selection of eligible projects, with the support from the Carbon Neutrality Promotion department. The General Manager of the Finance department will make the final allocation decisions. Toyota Tsusho Corporation has adopted 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 Toyota Tsusho Corporation’s processes for evaluating and selecting projects are in line with market practice.

MANAGEMENT OF PROCEEDS

Toyota Tsusho Corporation’s Finance department will be responsible for the management and the allocation of proceeds to eligible green projects. The proceeds will be tracked using Excel files and the Company intends to achieve full allocation by the next fiscal year once the green bonds or loans are issued. Pending allocation, unallocated proceeds will be held in cash or cash equivalents. Sustainalytics considers this process to be in line with market practice.

REPORTING

Toyota Tsusho Corporation intends to report on the allocation of proceeds on its website annually until full allocation. Allocation reporting will include information such as amount of allocation at the category level, balance of any unallocated proceeds, and a brief description of eligible projects. In addition, Toyota Tsusho Corporation is committed to reporting on relevant impact indicators such as, renewable energy generation capacity (MW), annual reduction in CO2 emissions (tCO2), annual amount of renewable energy consumed (TJ), to the extent practicable. Sustainalytics views Toyota Tsusho Corporation’s reporting system as aligned with market practice.