NYK ink two loans linked to sustainability
NYK has signed two Sustainability Lending (SLL) agreements aligned with the sustainability lending principles set forth by the Loan Market Association * and other organizations. These two agreements bring NYK’s total number of SLLs to four.
The objective of SLL is to promote and support economic activities beneficial to the environment and society by linking the terms of business loans with a client’s performance against sustainable development performance objectives (SPT ) mutually agreed upon with a client’s ESG strategy.
The SPTs of both agreements must maintain a high CDP ** disclosure score on climate change. As long as the high CDP ratings are achieved, the interest rate terms will remain unchanged until the repayment term.
On February 3, NYK announced the NYK Group ESG Story ***, which aims to further integrate ESG into the company’s management strategy, and this is the first ESG financing project since this announcement. To strongly promote ESG management, NYK will encourage the creation of new value as a provider of sustainable solutions through a business strategy that responds to climate change.
– This loan has obtained third party review from Japan Credit Rating Agency Ltd. (JCR) for the rationality of the loan and its compliance with the lending principles related to sustainable development published by the Loan Market Association (LMA). JCR’s detailed report is available at the following web link: https://www.jcr.co.jp/en/
* An association dedicated to improving liquidity, efficiency and transparency in the primary and secondary syndicated credit markets in Europe, the Middle East and Africa. Based in the United Kingdom, this association has around 760 member institutions in more than 69 countries, mainly in Europe and the Middle East. Website: https://www.lma.eu.com/
** An international non-profit organization working with businesses, investors, cities, states and regions to prevent dangerous climate change, ensure water security and prevent deforestation. To manage the risks that climate change poses to businesses, CDP uses questionnaires to collect information on carbon dioxide emissions and climate change initiatives from large companies around the world and analyzes and evaluates the data collected. Website: https://www.cdp.net/en
*** ESG history of the NYK group
A guide detailing concrete efforts to integrate ESG into NYK group management strategies. Details can be found at the following web link: https://www.nyk.com/english/esg/esg-story/ .
Source: NYK Line