Notice Regarding Sustainability Linked Loan Agreement
DIC Corporation today announced that it has entered into a Sustainability Linked Loan (SLL) agreement with Norinchukin Bank. This is DIC’s second SSL agreement with the bank and comes two months after the first, in June 2022.
An SLL is a loan that encourages borrowers to set ambitious sustainability performance targets (SPTs) that reflect their management strategies and incentivizes them to work towards these SPTs by linking loan conditions to the degree of achievement, thereby supporting activities. business and growth that are both environmentally and socially sustainable.
DIC has positioned sustainability, including environmental issues, as a core management priority, and is actively working to expand its portfolio of products and services that contribute to decarbonization with the aim of playing a central role in reducing CO2 emissions. on markets and society. In DIC NET ZERO 2050, published in June 2021, and in its long-term management plan DIC Vision 2030, announced in February 2022, the DIC Group set itself a target of reducing CO2 emissions by 50% compared to the fiscal year 2013 level by fiscal year 2030, with the aim of achieving carbon neutrality – zero net CO2 emissions – by fiscal year 2050, thereby clarifying its commitment to contribute to decarbonization. Against this backdrop, DIC’s decision to enter into a second SLL agreement was made with the intent of using the product to advance its sustainability strategy.
Having redefined its purpose as “dedicated to the preservation of all life”, Norinchukin Bank is working with its stakeholders to foster the agriculture, forestry and fishing industries and create a prosperous future for the food and lifestyles, thereby contributing to a sustainable global environment. The bank promotes various sustainable management initiatives and has pledged to provide sustainable financing in the amount of 10 trillion yen by 2030 as one of its medium and long-term goals announced in May 2021. Seeing a affinity with the DIC group’s sustainability strategy philosophy, the bank has again agreed to extend an SLL to DIC based on its assessment that this loan will help address climate change issues, including reducing emissions of CO2.
In the 2022 edition of its integrated report (DIC Report 2022), DIC redefined one of its four priority materiality themes, “response to climate change”, as “contribution to the achievement of a carbon neutral society”. . The Company is advancing various initiatives to reduce emissions (scopes 1 and 2) by 50% from FY2013 levels by FY2030. This goal was selected as the SPT for this SLL.
DIC obtained a third-party opinion from the Japan Credit Rating Agency (JCR) regarding the loan’s compliance with the principles of sustainability-related lending, as well as the rationality of the chosen SPT. This opinion affirmed that the SPT is both significant and ambitious, and from this point of view that the loan respects the principles mentioned above.
- Date of
- Implementation: August 24, 2022
- Loan term: 10 years
- Product use: long-term working capital
Main SDGs provided by the SLL
7 Affordable and Clen Energy
9 Industry, innovation and infrastructure
13 Climate action
Going forward, DIC will continue to work to help ensure the achievement of the United Nations Sustainability Goals (SDGs), a key global initiative, by addressing a variety of related themes and with the goal of evolving as a business. unique global trusted company.
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