Mitsui Chemicals Raises Funds With ESG/SDG-Based Syndicated Loan

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2019.02.28

Mitsui Chemicals, Inc.

Mitsui Chemicals, Inc. (Tokyo: 4183; President & CEO: Tsutomu Tannowa) recently raised a total of 20 billion yen in funds via a syndicated loan offered by Sumitomo Mitsui Banking Corporation (SMBC; President & CEO: Makoto Takashima). The loan is based on account of environmental, social and governance (ESG) factors together with sustainable development goals (SDGs).

Based on standards drawn up by SMBC and the Japan Research Institute, Ltd. (President & CEO: Masahiro Fuchizaki), the syndicated loan provided to Mitsui Chemicals comes on assessment of the applicant’s efforts toward ESG targets and SDGs, as well as its disclosure of information. The loan is then formed via financial institutions that approve of the results from these ESG and SDG assessments.

As part of this assessment, it was determined that Mitsui Chemicals meets a very high standard regarding ESG factors. Also noted here was that Mitsui Chemicals is doing exceedingly well at implementing initiatives and disclosing information regarding sustainable business management.

Primary Points Assessed

E (Environmental) Mitsui Chemicals has formed an understanding of the environmental impact of its activities and those of its group companies. This is particularly true with regard to CO2 emission levels, where Mitsui Chemicals has grasped its impact in terms of not only Scope 1 and Scope 2 but also Scope 3 emissions, and is implementing concrete measures to further reduce these emissions. Further, Mitsui Chemicals is helping to bring about a sustainable society through the offering of its Blue Value™ products, which help to reduce environmental impact throughout each stage of the product life cycle.
S (Social) Mitsui Chemicals has created the Rose Value™ Index, which serves in the evaluation of quality-of-life (QOL) improvements. This covers a number of social issues, including responses to the declining birth-rate and aging population, efforts to extend healthy life expectancy and responses to the food problems. Products that contribute to solving these issues are then certified as Rose Value™ products.
G (Governance) By utilizing its business activities to resolve social issues, Mitsui Chemicals is advancing its management efforts from the three perspectives of the economy, the environment and society, based on its triple bottom line management approach, and is implementing management efforts that correspond with a long-term view.
SDGs Mitsui Chemicals is developing Blue Value™ and Rose Value™ products, as well as other products that aid in solving social issues. Through dissemination its concept and products, the company is helping to reduce the CO2 emissions of its users and more, allowing it to achieve the goals indicated by SDGs.

Mitsui Chemicals set up the Corporate Sustainability Division in April 2018. The Aims are to accelerate its incorporate ESG concerns into the Group’s management and business strategies and to improve the disclosure of ESG -related information.

Further, Mitsui Chemicals’ aims to realize a cohesive society in harmony with the environment, as well as health and happiness in an aging society, have seen it target an expansion of both the environmental contribution value Blue Value™ and QOL improvement contribution value Rose Value™ under the 2025 Long-term Business Plan. To this end, the company is actively pursuing solutions to social issues via its business activities while also working toward the sustainable development of both society and the Mitsui Chemicals Group.

For more information on sustainability at Mitsui Chemicals, please see:
https://www.mitsuichem.com/en/sustainability/index.htm

Overview of the Syndicated Loan

Contract agreement date Feb. 28, 2019
Arranger Sumitomo Mitsui Banking Corporation
Agent Sumitomo Mitsui Banking Corporation
Monetary amount 20 billion yen
Lenders THE ASHIKAGA BANK,LTD., THE Keiyo BANK,LTD., THE SHIZUOKA BANK,LTD., THE 77 BANK,LTD., The Juroku Bank,LTD., JOYO BANK,LTD., THE SHINKUMI FEDERATION BANK, DAIDO LIFE INSUARANCE COMPANY, The Chiba Bank,Ltd, The Chiba Kogyo Bank Ltd., The Bank of Toyama,Ltd., The Hachijuni Bank,Ltd., North Pacific Bank,LTD., The Musashino Bank,Ltd., THE MOMIJI BANK,Ltd., THE YAMAGUCHI BANK,Ltd., JABANK-YAMAGUCHI, The Yamanashi Chuo Bank,Ltd. and other 2 banks.