NYK signs Japan’s first ESG management support loan
Today, NYK entered into a 9 billion yen syndicated loan agreement in which the proceeds will be used solely for the purpose of funding environment-friendly projects. This is Japan’s first syndicated loan to be certified by Japan Credit Rating Agency Ltd. (JCR) with its highest ranking of “Green 1,” thus demonstrating the loan to be aligned with the core components of the Green Loan Principles, the company said in its release.
NYK’s medium-term management plan includes the group’s intent to integrate environmental, social, and governance (ESG) initiatives into management strategy by establishing new medium- to long-term environmental targets.
To achieve these goals, NYK was the first company in the global shipping industry to issue labelled green bonds, and after that achievement in March 2018 the company received a green loan from Taiyo Life Insurance Company in December 2018. This new syndicated loan agreement is the third form of green financing for NYK for a total of over 20 billion yen.
In the green loan evaluation conducted by JCR, this syndicated loan was evaluated for its contribution to SDGs and targets.
In addition, this syndicated loan is the first “ESG management support loan” for MUFG Bank and Mitsubishi UFJ Research and Consulting Co. Ltd.(MURC), and NYK’s industry-leading ESG management received MURC’s highest ESG evaluation.
NYK’s reduction targets for GHG emissions are 30% per ton-kilometer by 2030 compared with a 2015 base year, and 50% per ton-kilometer by 2050 compared with the same base year. These targets have been recognized as science-based by the international Science Based Targets (SBT) initiative. Regarding its environmental initiatives and disclosure, NYK has been recognized as a global leader on corporate climate action by the environmental impact non-profit organization CDP, achieving a place on the Climate Change A List.
