Norinchukin Bank signs sustainability loan agreement

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November 11, 2021

Norinchukin Bank

Japanese Real Estate Investment Company

Norinchukin Bank signs sustainability loan agreement

Norinchukin Bank (President and CEO: Oku Kazuto) announces that it has entered into the Sustainable Development Loan Agreement (“SLL”) with Japan Real Estate Investment Corporation (Executive Director: Yutaka Yanagisawa, hereinafter “JRE “).

This is the third SLL between the two organizations and the first and second SLL executed on January 29, 2021 (total of JPY 10 billion) were selected as the model project of the “Model Sustainability Lending Projects for the Fiscal Year”. 2020 ”organized by the Ministry of Environment Japan, for demonstrating its pioneering funding methods with modeling environmental improvements.

JRE believes that it is the expected social responsibility of a listed investment company to work towards improving social sustainability, such as environmental considerations, social contributions and improved governance, and that this is essential to maximize value to unitholders. As part of this policy, JRE’s asset management company, Japan Real Estate Asset Management Co., Ltd., formulated its sustainability policy and established environmental key performance indicators (KPIs) such as reduction of CO emissions2 emissions, the number of ZEBs owned and the reduction in water consumption.

ZEB stands for net Zero Energy Building, a building that aims to achieve zero energy balance while maintaining a comfortable indoor environment by significantly reducing annual energy consumption through renewable energies such as solar power generation, as well as by improving energy efficiency with the use of high thermal insulation, solar radiation protection, natural energy and energy efficient equipment. In March 2021, JRE obtained “ZEB Ready” certification for its Higashi-Gotanda 1chome building and continues to proactively address the risks associated with climate change.

Norinchukin Bank places sustainable management at the heart of its concerns and commits 10,000 billion JPY in new transactions for sustainable finance as part of its medium / long-term objectives announced in May 2021. With empathy for the long-term vision of the sustainable management of JRE, the Bank decides to conclude the SLL agreement with its assessment according to which this SLL allows financing that contributes to the resolution of the problems of climate change, which has a close relationship with the agriculture industries, of forestry and fisheries, the founding of the Bank.

SLL Agreement sets CO Sustainability Performance Targets (SPTs)2 emissions (FY2030 target: 35% reduction compared to FY2013, based on carbon intensity) and the number of ZEB certified properties1 (FY2030 objective: 5 buildings), in alignment with the objectives based on JRE’s sustainable development policy.

By entering into the SLL Agreement, Norinchukin Bank and JRE obtained the second party opinion of the Japan Credit Rating Agency, Ltd., which considers that the SLL complies with the SLL Principles and that the STPs set for the SLL are significant. and ambitious.

  • Includes Nearly ZEB, ZEB Ready, ZEB Oriented under BELS (Building-Home Energy Efficiency Labeling System).

[Summary of the Loan]

■ Execution date: November 15, 2021

■ Loan term: 10 years

■ Loan amount: JPY 5 billion

■ Use of proceeds: Refinancing and cash

[Main SDGs contributed by the SLL]

[Reference Link] JRE’s ESG site: https://jre-esg.com/en/(Link)

Third Party Opinion of the Japan Credit Rating Agency, Ltd. : https://www.jcr.co.jp/greenfinance/(Link)

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