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+2) and improve the resource recycling ratio 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 ratio:
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.
DNP Group Sustainability-Linked Finance Framework (2,096KB)(Open PDF)
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.
Second opinion from Rating and Investment Information, Inc. (R&I) (3,687KB)(Open PDF)
Sustainable Finance Achievements
| Date of Issue | Maturity | Total Amount of Issuance (million yen) |
Interest Rate | Redemption Date | |
|---|---|---|---|---|---|
| Seventh series of unsecured corporate bonds (with limited pari passu clause between bonds) (sustainability-linked bonds) |
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) |
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 | GHG emissions reduction (Scope 1 and 2) Reduce GHG emissions by 37.8% compared to FY 2019 level by FY2028 |
| Reference Period | From April 1, 2028 to March 31, 2029 |
| Assessment Date | Oct. 31, 2029 |
| Terms and Conditions | Terms and Conditions [139KB](Open PDF) |
| Shelf Registration Supplement | Shelf Registration Supplement [347KB](Open PDF) |
| Bond Rating | AA-(R&I) |
| Eighth series of unsecured corporate bonds (with limited pari passu clause between bonds) (sustainability-linked bonds) |
|
|---|---|
| SPTs | GHG emissions reduction (Scope 1 and 2) Reduce GHG emissions by 46.2% compared to FY2019 level by FY2030 Improvement of the resource recycling ratio Achieve 70% resource recycling rate¹ for all unneeded materials² in FY2030 |
| Reference Period | From April 1, 2030 to March 31, 2031 |
| Assessment Date | Oct. 31, 2031 |
| Terms and Conditions | Terms and Conditions [139KB](Open PDF) |
| Shelf Registration Supplement | Shelf Registration Supplement [347KB](Open PDF) |
| Bond Rating | AA-(R&I) |
- Note 1:Resource recycling ratio = Amount of resource recycling ÷ amount of unneeded materials excluding paper as valuable waste ×100
Amount of resource recycling = Amount of unneeded materials excluding paper as valuable waste which have been recycled by means of material recycling or chemical recycling
Amount of unneeded materials excluding paper = Amount of unneeded materials (waste + 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 unneeded 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.
| KPIs | FY2024 (Reference) |
FY2025 | FY2026 | FY2027 | FY2028 | FY2029 | FY2030 |
|---|---|---|---|---|---|---|---|
| GHG emissions reduction (Scope 1 and 2) (compared to FY2019 level) |
Being tallied | ||||||
| Improvement of the resource recycling ratio | Being tallied |