Conclusion of "Impact Finance for Nature" Agreement with Sumitomo Mitsui Trust Bank

2025/04/03

Nissui Corporation (Representative Director, President & CEO: Shingo Hamada; Head Office: Minato-ku, Tokyo) announced today that it has concluded a loan agreement with Sumitomo Mitsui Trust Bank, Limited (President: Kazuya Oyama; Head Office: Chiyoda-ku, Tokyo, "SuMi TRUST Bank") on March 19 as the first transaction under SuMi TRUST Bank's new "Impact Finance for Nature" ("IFN") offering.

IFN is a form of impact finance designed to contribute to the development of a sustainable society. SuMi TRUST Bank encourages enhanced information disclosure based on the TNFD (Taskforce on Nature-related Financial Disclosures) recommendations while evaluating the impact of corporate activities on nature. Through this approach, SuMi TRUST Bank supports Nissui's nature-related initiatives, with both organizations working together toward a sustainable society.

The evaluation related to this agreement ("the Evaluation") consists of a "Sustainability System Assessment" by SuMi TRUST Bank, as well as a "Impact Assessment" and "Natural Capital Management Assessment (TNFD-aligned assessment)" by ERM Japan Ltd. (*1). Through the Evaluation, impacts of corporate activities on nature are identified, and SuMi TRUST Bank will monitor the progress of established KPIs and targets to support the manifestation of these impacts.

In addition, the Product's framework has received the Second Party Opinion by the Japan Credit Rating Agency, Ltd. (*2) regarding conformity with the "Concept Paper on Impact Finance" published by the Ministry of the Environment.

In December 2023, Nissui issued the "Nissui Group TNFD Report 2023," identifying the Group's dependence on and impact on nature through its business activities, evaluating risks and opportunities, and disclosing response measures. Furthermore, as an Early Adopter of TNFD, Nissui is properly evaluating natural capital and promoting business operations that consider natural capital in their planning and execution.

Nissui has designated "driving the mainstreaming of marine biodiversity" as one of its material issues, incorporating marine biodiversity conservation and sustainable resource use into management decision-making. Since publishing TNFD information disclosure, Nissui has engaged in dialogue with diverse stakeholders both in Japan and overseas, deepening the Company's initiatives while incorporating their opinions.

The Evaluation not only confirms the validity of Nissui's nature-related initiatives but also indicates future challenges for advancing management that considers nature. Based on this Evaluation, Nissui will further strengthen the Company's nature-related initiatives and aim to realize the Nissui Group's long-term vision "Good Foods 2030" of becoming "a leading company that delivers friendly foods for people and the earth" by enhancing both business and natural capital sustainability.

＜Indicators (KPI) and Targets＞
In concluding this agreement, SuMi TRUST Bank confirmed the validity of the material impacts, indicators (KPI) and targets identified in the evaluation by ERM Japan Ltd. ("Specialized Evaluation"), and established the following indicators (KPI) and targets in the Evaluation to drive the realization of Nissui's positive impact on nature.

The Specialized Evaluation also indicates points that ERM Japan Ltd. evaluates as excellent in Nissui's current initiatives, as well as future challenges.

Impacts on Nature	Indicators (KPI) and Targets
Sustainable procurement of marine resources	(a)	KPI: Ratio of sustainable marine resources procurement Target: Procurement of sustainable marine resources 100% by 2030
(b)	KPI: The amount of procurement of endangered species(ton) Target: For marine resources at high risk of depletion, procurement will be suspended if scientific and practical measures are not taken to recover the resources by 2030

Impacts on Nature

Indicators (KPI) and Targets

Sustainable procurement of
marine resources

(a)

KPI:

Ratio of sustainable marine resources procurement

Target:

Procurement of sustainable marine resources 100% by 2030

(b)

KPI:

The amount of procurement of endangered species(ton)

Target:

For marine resources at high risk of depletion, procurement will be suspended if scientific and practical measures are not taken to recover the resources by 2030

*1 ERM Japan Ltd.
ERM Japan Ltd., the Japanese subsidiary of the ERM Group, employs consultants with extensive knowledge and experience in EHSS (Environment, Health, Safety, and Social) and sustainability. The company provides support for solving various environmental risks to clients including domestic and international companies, industry associations, and government-related organizations.
For details, please refer to the company's news release:
　https://www.erm.com/about/news/erm-completes-nature-related-assessment-for-nissuis-impact-finance-for-nature-loan-with-sumitomo-mitsui-trust-bank

*2 Second Party Opinion by Japan Credit Rating Agency, Ltd.
For details, please refer to the company's news release:
　https://www.jcr.co.jp/download/323438527b8763457ddbb655a4c2bb135335ba1dcb4bbb5c5b/24d1772_en.pdf