We actively utilize ESG financing to promote sustainable management from a financing perspective.
We will contribute to solving social issues and achieving SDGs through a variety of ESG financing, including Green Finance, which uses funds as green projects, Sustainability Finance, which adds social projects to the uses of funds, and Sustainability Link Finance, which links borrowing terms with our performance.
ESG financing Results
We procure funds that contribute to sustainability, including the issuance of green bonds.
We will continue to implement new investments for growth with the aim of resolving social issues and enhancing corporate value.
Procurement results from FY2018
FY2023
| Date of implementation | Means | Financial institutions |
|---|---|---|
| 2023 Apr | Sustainability linked loans | SBI Shinsei Bank, Limited |
| 2023 Jun | Sustainability linked loans | Norinchukin Bank |
| 2023 Sep | Sustainability linked loans | North Pacific Bank,Ltd. |
| 2023 Oct | Sustainability bond | - |
| 2024 Feb | Sustainability linked loans | Mizuho Bank, Ltd. |
| 2024 Feb | DBJ Environmental Rating primarily in Loans | Development Bank of Japan Inc. |
| 2024 Feb | Collaborative sustainability linked loans |
The Chiba Bank, Ltd. The Chugoku Bank Ltd. THE SHIGA BANK, LTD. |
| 2024 Mar | Sustainability linked loans | Norinchukin Bank |
| 2024 Mar | Sustainability linked loans | Saitama Resona Bank, Ltd. |
Sustainability Finance
Fund procurement using both green projects to solve environmental problems and social projects to solve social problems is called sustainability finance.
In December 2022, we announced the Sustainability Finance Framework and the Sustainability Linked Finance Framework to further promote sustainability management.
Utilizing the two frameworks, we will actively engage in ESG financing and strive to increase corporate value.
Sustainability finance framework
This framework addresses sustainability finance, which limits the problem of funds for projects that promote the resolution of environmental and social issues.
- ※The framework refers to the policy set by the procuring entity prior to the procurement of funds. In sustainability finance, it describes elements such as the use of procurement funds, the process of evaluating and selecting projects, the management of procurement funds, and reporting.
・JCR Sustainability Finance Framework Evaluation
The Framework received the highest rating of SU1(F) from Japan Credit Rating Agency, Ltd. (JCR), a third-party rating agency, for compliance with principles such as "Green Bond Principles 2021," "Social Bond Principles 2021," and "Sustainability Bond Guidelines 2021," etc.
Sustainability Linked Finance Framework
This framework addresses Sustainability-Linked Financing, which establishes a "Sustainability Performance Target" ("SPTs") that is aligned with our Mid-Term Sustainable Management Plan and aligns our performance against borrowing terms and SPTs.
- ※The framework refers to the policy set by the procurement entity prior to funding, and the Sustainability Linked Finance describes such factors as the selection of KPIs, the measurement of SPTs, the characteristics of receivables/loans, reporting, and verification
・Second opinion (R&I)
The Financial Framework has obtained a second opinion from the Rating and Investment Information Center, Inc. (R&I), a third-party valuation agency, for conformance with principles such as the Sustainability Linked Bonds Principles 2020 defined by the International Capital Markets Association (ICMA) and sustainability linked loans Principles 2022 defined by the Loan Market Association (LMA).
Green Finance
Green financing is a ESG financing that uses green projects as funds to solve environmental issues.
Green bond
Green Bonds are bonds issued by companies and local governments to procure the funds required for green businesses (projects with environmental improvement effects, such as renewable energy projects, construction and renovation of energy-saving buildings, and prevention and management of environmental pollution).
For details on each Green Bond, select from the following.
38th unsecured bonds
Green Bond Overview
| Name | Ricoh Lease Green Bonds (38rd unsecured straight bonds) |
|---|---|
| Application Period | 4-Oct-19 |
| Payment date | 11-Oct-19 |
| Issue period | 5 years |
| Issuance amount | 10 billion yen |
| Interest rate | 0.120% |
| Use of funds | Appropriation for leasing and installment businesses for the construction of solar power generation and small-scale hydroelectric power plants (refinancing of capital expenditures) |
| Framework | Framework |
| Certified rating | AA-Corporation Japan Credit Rating Agency, Ltd. (JCR) |
Third-party evaluation of eligibility
・ JCR Green Bond Assessment
We formulated the Green Bond Principles prepared by ICMA(International Capital Market Association for the issuance of Green Bonds and the Green Bond Framework in line with the FY2017 version of the Green Bond Guidelines formulated by the Ministry of the Environment. As a third-party evaluation, we received Green 1 rating from Japan Credit Rating Agency, Ltd. (JCR), which is the highest rating for the JCR Green Bond Evaluation.
・ Program to support the development of a system to promote the issuance of green bonds by the Ministry of the Environment
Regarding the acquisition of third-party evaluations of this Green Bond, the Ministry of the Environment has been granted a subsidy for the Project to Support the Development of a System to Promote the Issuance of Green Bonds in FY2019.
Investor Statement List
We would like to introduce investors who have announced their investment in this Green Bond.(As of October 11, 2019)
(in alphabetical order)
- The Oita Bank, Ltd.
- THE SHIGA BANK, LTD.
- Daido Fire and Marine Insurance Co., Ltd.
- Tokio Marine & Nichido Fire Insurance Co., Ltd.
- Promotion and Mutual Aid Corporation for Private Schools of Japan
- Hanno-Shinkin Bank
- The Higashi-Nippon Bank, Limited
- Meiji Yasuda Life Insurance Company
Reporting
・ Fund raising
All proceeds from the Green Bond were used to redeem commercial paper issued on October 11, 2019 to finance the purchase of our existing solar and small hydroelectric generation facilities, which are assets subject to our installment contract.
・ Environmental improvement effects
The total annual CO2 emission reduction effect of the qualified Green Project covered by this Green Bond is approximately 15000 tons and the total annual power generation is approximately 33 million kWh.
- ※Theoretical value based on the output standard as of October 11, 2022
・ Annual review
Nippon Credit Rating Agency Co., Ltd. (JCR) reviewed each year to confirm compliance with the Green Bond Principles and the Ministry of the Environment with the Green Bond Guidelines, and obtained the JCR Green Bond Assessment (Green 1).