Second-Party Opinion Download

Sustainalytics is of the opinion that the Z Holdings Corporation Green Bond Framework is credible and impactful and aligns to the four core components of the Green Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The two eligible categories for the use of proceeds Energy Efficiency and Renewable Energy, are aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 7.

PROJECT EVALUATION / SELECTION

Z Holdings’ project evaluation and selection will be executed by its department in charge of finance in accordance with advice from its department in charge of ESG and the System Management Group of Yahoo Japan Corporation as well as the eligibility criteria. Selected projects will be finally approved by the Senior Managing Corporate Officer. Z Holdings’ process for evaluating and selecting projects is in line with market practices.

MANAGEMENT OF PROCEEDS

The department in charge of finance will track and manage green bond proceeds using an internal management system until the redemption of the bond. Pending allocation, unallocated proceeds will be held in cash or cash equivalents. Z Holding's management of proceeds is aligned with market practices.

REPORTING

Z Holdings intends to disclose allocation and environmental indices annually on its website. The allocation reporting will include the overview of projects and the allocated and unallocated amounts, while the impact reporting will include, data centers’ PUE value and the amount of electricity procured from renewable energy sources. Furthermore, the Company intends to obtain annual reviews from independent parties after the issuance of green bonds. Z Holdings' commitment to the reporting and annual review is in line with market practices.