NSG: Loan agreements linked to achievement of sustainability target

NSG Group has announced it has entered into the following two loan agreements of JPY 23.9 billion in total linked to the NSG Group’s sustainability target.

NSG Group regards sustainability engagement as an important activity to resolve environmental and social issues with consistent business development simultaneously and aims to grow together with society through sustainability activities.

NSG Group’s greenhouse gas emission reduction targets are the first in Japan’s glass manufacturing industry to be recognized as “science-based targets” by the SBT Initiative.

NSG Group is actively working on environmental issues and successful of manufacturing experiment by using hydrogen energy and 100 percent biofuel.

The sustainability target set in these two loan agreements are in line with the NSG Group’s greenhouse gas reduction target and carbon neutrality goal. We will aim this sustainability target to work towards achievement of execution of our business strategy and development of sustainability.

Loan agreements
The objective of sustainability linked loans is to promote and support environmentally and socially beneficial economic activities and growth by linking corporate loan terms with a client’s performance against sustainability performance targets (“SPTs”) consistent with a client’s sustainability strategy.

  1. Formulation of “Sustainability Linked Loan Framework” supported by Sumitomo Mitsui Banking Corporation (hereafter “SMBC”) and conclusion of syndicated sustainability linked loan (“This loan”) arranged by SMBC.
    Signed: 27 September 2023
    Arranger: Sumitomo Mitsui Banking Corporation
    Lender: Syndicate Group organized by the arranger
    Amount: JPY 16.3 billion
    Period: 3 years,4 years (By Tranche)
    SPT-1: Reduce CO2 emissions from Scope 1 and 2 by 24.0 percent from 2021 levels by 2030.
    SPT-2: Achieve 85 percent of all electricity consumed in business activities that is derived from renewable energy sources by 2030.
    This loan sets SPTs based on this recognition, and as an incentive to achieve these SPTs, the interest rate terms are linked to the degree to which the SPTs are achieved.
  2. Conclusion of positive impact finance “Aozora Positive Impact Finance”(hereafter this finance) based on “Aozora’s ESG Framework Loan”.
    Signed: 29 September 2023
    Lender: Aozora Bank, Ltd.
    Amount: JPY 7.6 billion
    Period: 4years
    KPIs and targets:
    ・Reduce CO2 emissions from Scope 1 and 2 by 24.0% from 2021 levels by 2030.
    ・Achieve 85 percent of all electricity consumed in business activities that is derived from renewable energy sources by 2030.
    Positive Impact Finance (PIF) is designed to comprehensively analyse and assess the impact of corporate activities on the environment, society and economy with the aim of providing continued support for the development and expansion of positive impact or the mitigation and control of negative impact.

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