Sustainable Finance
By undertaking fund raising through sustainable finance, DNP will communicate to stakeholders its specific initiatives in sustainability management while it resolves social and environmental issues and contributes to the realization of a sustainable society.
DNP Group Sustainability-Linked Finance Framework
DNP formulated the DNP Group Environmental Vision 2050 as a statement expressing “what we expect to accomplish toward the year 2050” to realize a sustainable society. DNP will accelerate initiatives to reduce greenhouse gas (GHG) emissions (Scope 1 and 2) and increase the resource recycling rate through financing using this framework, aiming toward the realization of a decarbonized society, a recycling-oriented society and a society in harmony with nature.
○ GHG emissions:
As moves toward achieving carbon neutrality by 2050 gain momentum, DNP has set a GHG emissions reduction target that aligns with the 1.5°C level set by Science Based Targets (SBT) and is promoting conversion of its business portfolio, strengthening energy-saving activities, and introducing renewable energy.
○ Increasing the resource recycling rate:
The Resource Circulation Strategy for Plastics formulated by the Japanese government in 2019 clarifies a policy of maximizing effective resource utilization rates by optimally combining material recycling, chemical recycling, and thermal recycling in accordance with the quality and properties of sorted and separated plastic resources. DNP is working to use resources efficiently, with focus on promoting material recycling and chemical recycling of plastics.
For details of this framework, please see the PDF below.
Third-party evaluation and conformity
This framework has obtained a third-party evaluation (second opinion) from Rating and Investment Information, Inc. (R&I) stating that it conforms to the principles.
Additionally, Mizuho Securities Co., Ltd. has provided support for the development of this framework as a structuring agent*.
- Structuring agent: This is an entity that supports the issuance of green bonds etc. by formulating sustainability finance frameworks and providing advice on obtaining second opinions.
Sustainable Finance Achievements
Seventh series of unsecured corporate bonds (with limited pari passu clause between bonds) (sustainability-linked bonds)
| Date of Issue | Maturity | Total Amount of Issuance (million yen) | Interest Rate | Redemption Date |
|---|---|---|---|---|
| May 1, 2025 | 5 years | 40,000 | 1.253% | May 1, 2030 |
Eighth series of unsecured corporate bonds (with limited pari passu clause between bonds) (sustainability-linked bonds)
| Date of Issue | Maturity | Total Amount of Issuance (million yen) | Interest Rate | Redemption Date |
|---|---|---|---|---|
| May 1, 2025 | 7 years | 20,000 | 1.474% | April 30, 2032 |
Overview of Sustainability-Linked Bonds
Seventh series of unsecured corporate bonds (with limited pari passu clause between bonds) (sustainability-linked bonds)
| SPTs | Reduction of GHG emissions (Scope 1 and 2) 37.8% reduction from the FY2019 levels by the end of FY2028 |
|---|---|
| Reference Period | From April 1, 2028 to March 31, 2029 |
| Assessment Date | Oct. 31, 2029 |
| Terms and Conditions | 社債要項要 (99 KB) |
| Shelf Registration Supplement | 発行登録追補書類 (0.5 MB) |
| Bond Rating | AA-(R&I) |
Eighth series of unsecured corporate bonds (with limited pari passu clause between bonds) (sustainability-linked bonds)
| SPTs | Reduction of GHG emissions (Scope 1 and 2) 46.2% reduction from the FY2019 levels by the end of FY2030 Increasing the resource recycling rate Achieve a 70% resource recycling rate¹ for all unnecessary objects ² by the end of FY2030 |
|---|---|
| Reference Period | From April 1, 2030 to March 31, 2031 |
| Assessment Date | Oct. 31, 2031 |
| Terms and Conditions | 社債要項 (99 KB) |
| Shelf Registration Supplement | 発行登録追補書類 (0.5 MB) |
| Bond Rating | AA-(R&I) |
Note 1: Resource recycling rate = Amount of resource recycling ÷ amount of unnecessary objects excluding paper as valuable waste ×100 Amount of resource recycling = Amount of unnecessary objects (excluding paper as valuable waste) that have been recycled by means of material recycling or chemical recycling Amount of unnecessary objects excluding paper = Amount of unnecessary objects (waste and valuable waste) excluding paper as valuable waste, which is 100% recycled, and the amount of sludge subject to on-site intermediate processing
Note 2: Total amount of waste and valuable materials discharged from our own manufacturing sites
Reporting
The performance of the KPIs shall be verified by an independent third party annually after the implementation of the Sustainability-Linked Finance until the final assessment date.
| KPI | Reduction of GHG emissions (Scope 1 and 2) (compared to FY2019 level) | Increasing the resource recycling rate | Independent review report comments by an independent institution |
|---|---|---|---|
| FY2024 (Reference) | 18.4%削減 DNPグループ環境報告書2025(17ページ) | 63.5% | 2025/6/22発行 |
| FY2025 | |||
| FY2026 | |||
| FY2027 | |||
| FY2028 | |||
| FY2029 | |||
| FY2030 |