Conclusion of Positive Impact Finance Agreement with Sumitomo Mitsui Trust Bank
2023/03/31
Nissui Corporation (President & CEO: Shingo Hamada; Head Office: Minato-ku, Tokyo; "Nissui") announced today that it has concluded a loan agreement for Positive Impact Finance ("PIF") based on the Positive Impact Evaluation Framework ("the Evaluation") provided by Sumitomo Mitsui Trust Bank, Limited (President: Kazuya Oyama ; Head Office: Chiyoda-ku, Tokyo, "SMTB").
PIF is a loan based on a "Positive Impact Evaluation (Financial Products for Corporate with Unspecified Use of Funds)" in accordance with the "Principles for Positive Impact Finance" *1 set out by the United Nations Environment Programme Finance Initiative (UNEP FI)*2.
PIF is a loan that seeks to provide ongoing support for corporate activities by enabling financial institutions to comprehensively analyze and assess the environmental, social, and economic impacts (both positive and negative) of their activities, set targets for mitigating negative impacts and increasing positive impacts, and focus on ongoing engagement to achieve these targets. The most notable feature of PIF is that the degree of contribution to the achievement of Sustainable Development Goals (SDGs) through corporate activities, products, and services is used as an evaluation indicator, and monitoring is conducted based on publicly disclosed information to support corporate activities through engagement.
In addition, the Evaluation has obtained a third-party opinion on compliance with the Principles for Positive Impact Finance and rationality of used metrics*3 from the Japan Credit Rating Agency, Ltd. (President: Shokichi Takagi; Head Office: Chuo-ku, Tokyo) for the procedures involved in the evaluation.
SMTB has qualitatively and quantitatively assessed the following themes in which Nissui has demonstrated an impact on the achievement of the SDGs.
| Theme | Content | Targets and Indicators (KPIs) | SDGs |
|---|---|---|---|
| Solve health problems | Contribute to a healthy lifestyle with food safety and security | Contribute to the improvement of global health challenges through designated health category products Target: Expand sales of designated health category products*4 by 300% (compared to FY2021) by FY2030 KPI: Sales multiplier for designated health category products |
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| Sustainable procurement | Preserve the bountiful sea and promote the sustainable utilization of marine resources and their procurement | (a)Sustainable use of marine resources Target: 100% sustainable procurement ratio of marine resources by FY2030 KPI: Sustainable procurement ratio of marine resources and details of initiatives (b)Respect for human rights at suppliers Target: 100% assessment ratio of major primary suppliers by FY2030 (Nissui and domestic and overseas consolidated subsidiaries) KPI: Major primary supplier assessment ratios |
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| Actions toward climate change and ocean environment | Preserve the bountiful sea and promote the sustainable utilization of marine resources and their procurement | (a)Achieve carbon neutrality by 2050 Target: Reduce CO2 emissions (Scope 1 and 2) by 30% by FY2030 compared to FY2018 (Nissui and domestic and overseas consolidated subsidiaries) KPI: CO2 emissions (Scope 1 and 2) (b)Reduction of plastic usage Targets: ・Reduce the amount of plastic used in containers and packaging (per unit) by 30% by FY2030, compared to FY2015 (Nissui) ・Reduce plastic emissions (per unit) at the production stage by 30% by FY2030 compared to FY2017 (Nissui and domestic consolidated subsidiaries) ・100% switchover rate of floats for aquaculture by FY2024 (Nissui and domestic consolidated subsidiaries) KPIs: ・Plastic usage in containers and packaging (per unit) ・Plastic emissions during production (per unit) ・Switching rate of floats for aquaculture (c) Reduction of food loss Targets: ・Reduce animal and plant residue (per unit) by 30% by FY2030 compared to FY2017 (Nissui and domestic consolidated subsidiaries). ・Reduce product waste volume by 50% by FY2030 compared to FY2020 (Nissui) KPIs: ・Animal and plant residue (per unit) ・Product waste volume |
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| Diverse human capital | Aim to be a company where diverse human capital play an important role to address the social agenda | (a) Engagement for individual and organizational growth Target: Improve employee engagement score*5 by 20% by FY2030 compared to FY2021 KPI: Employee engagement score (b) Promotion of diversity and inclusion Target: Increase the ratio of females in executive positions*6 to 20% by FY2030. KPI: Ratio of female executives |
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Nissui's founding philosophy, "A tap water supply system is exactly what marine products should be like in their production and distribution," forms the foundation of our management philosophy system, and we provide "food" through our global value chain, with marine resources at the core.
Under the long-term vision "Good Foods 2030" announced in April 2022, the Nissui Group aims to become "a leading company that delivers friendly foods for people and the earth" and enhance its corporate value by creating the four values of financial, social, environmental, and human capital, with "accelerating sustainability management" and "reinforcing business portfolio management" as the primary measures.
The first of the six major strategies in the first phase of the mid-term plan, "Good Foods Recipe 1" (FY2022-2024), is "Evolving towards Sustainability Management," in which all businesses (Marine Products, Foods, Fine Chemicals, and General Distribution) are committed to sustainable use of marine resources, strengthening health appeal, reducing greenhouse gas emissions, reducing plastic emissions, responsible procurement, and diversifying human capital.
With the Evaluation and the loan based on it, we will continue to promote activities to achieve our targets and KPIs, strengthen the relationship of trust with each of our stakeholders, and aim to sustainably enhance our corporate value.
*1 Principles for Positive Impact Finance
The Principles for Positive Impact Finance is a framework for finance established by UNEP FI in January 2017 with a view to achieving the UN Sustainable Development Goals (SDGs). Companies disclose key performance indicators (KPIs) for contributions to achieving SDGs, and banks provide finance after assessing the positive impact of such contributions. This framework guides efforts to increase positive impact and reduce negative impact from the activities of companies being financed. As responsible financial institutions, banks provide finance monitor indicators to ensure that positive impacts are continuing.
*2 United Nations Environment Programme Finance Initiative (UNEP FI)
The United Nations Environment Programme (UNEP) is an executive body for implementing the "Human Environment Declaration" and the "International Environmental Action Programme," established in 1972 as a subsidiary body to the United Nations system. UNEP FI represents a broad as well as close partnership between UNEP and more than 200 global financial institutions. Since its establishment in 1992, UNEP FI has been working in concert with financial institutions, policy/regulatory authorities to transform itself into a financial system that integrates economic development and ESG considerations.
*3 Third-party opinion on compliance with the Principles for Positive Impact Finance and rationality of used metrics
For the independent opinion from Japan Credit Rating Agency, Ltd., please visit:
https://www.jcr.co.jp/greenfinance/
*4 Health category products
Products that support a healthy lifestyle for customers through innovative food solutions verified by either the national government, academic societies, or Nissui, and that correspond to the target items set forth in "Healthy Japan 21" by the Ministry of Health, Labour and Welfare or the "Recommendations for Extending Healthy Life Expectancy Based on Cross-Disease Evidence" by the Japan Health Research Promotion Bureau.
*5 Employee engagement
Employees are surveyed on areas such as company philosophy, job description, and the organizational culture, and measures employees' feelings of caring, willingness to contribute, and attachment, and the "trust and contribution" between a company and its employees is quantified. It is a means of confirming that personal growth and organizational growth are being achieved simultaneously.
*6 Female executives
Managerial positions equivalent to or higher than a manager or equivalent, excluding directors.