Sustainability Activities (ESG)
Adopting Sustainable Finance
Issuance of Mitsubishi Estate Sustainability-Linked Bonds
Adopting Sustainable Finance
Sustainability Linked Finance
Sustainability Vision 2050-Linked Finance Framework
On March 30, 2023, Mitsubishi Estate formulated the Sustainability Vision 2050-Linked Finance Framework*1 (“the Framework”). The framework was established with the aim to achieve the Mitsubishi Estate Group Sustainability Vision 2050, accompanied by the Mitsubishi Estate Group 2030 Goals for SDGs, detailed interim milestones and goals to reach the vision in 2050, the declaration of “Net-Zero emission by 2050” launched in March 2022, and an other challenging KPI, the proportion of women in managerial positions. The Mitsubishi Estate Group will further promote and accelerate the achievement of these targets by utilizing Sustainability Linked Bonds and Sustainability Linked Loans based on this framework.
- Revised Sustainability Vision 2050-Linked Bond Framework formulated in June 2022
Sustainability Vision 2050-Linked Finance Framework (PDF 2.4MB) (Japanese only)
Indicators (KPIs/SPTs) based on this framework
| KPIs | SPTs | Determination date | ||
|---|---|---|---|---|
| KPI1 | Percentage of electricity from renewable energy sources
|
SPT1 | Achieve 100% electricity from renewable energy sources by FY2025 | December 31, 2026 |
| KPI2 | Percentage of reduction in total GHG emissions, including CO2, in the Mitsubishi Estate Group’s*1 value chain
|
SPT2-1 | At least 70% for Scope 1 and 2 combined, at least 50% for Scope 3 by FY2030 (base year: FY2019) | December 31, 2031 |
| SPT2-2 | Achieve net zero by 2050 | December 31, 2051 | ||
| KPI3 | Percentage of female managers*2 | SPT3 | Achieve 40% female managers by FY2050 | December 31, 2051 |
- Selection of target organizations is based on control criteria. Properties in which the Mitsubishi Estate Group’s ownership rights and trust beneficiary rights are less than 50% are excluded from data calculations in principle.
- A person in a job which has subordinates or a person in an equivalent position without subordinates
See the following for details on CO2 Emissions/Renewable Power Targets.
Mitsubishi Estate Group 2030 Goals for SDGs > Key Theme 1: Environment
See the following for details on Female Manager Targets.
Sustainability Activities (ESG) > Social > Promoting Diversity > Empowerment of Women
See the following press releases for more information.
Third-Party Opinion on Alignment
Mitsubishi Estate obtained a third-party opinion from a third-party evaluation organization stating that the Mitsubishi Estate Sustainability Vision 2050-Linked Finance Framework conforms to the ICMA Sustainability-Linked Bond Principles 2020 and the Ministry of the Environment Green Loan and Sustainability Linked Guidelines 2020.
See the following for details of the third-party opinion from Japan Credit Rating Agency, Ltd.
Third-Party Opinion from Japan Credit Rating Agency, Ltd. (PDF 4.0MB) (Japanese only)
Issulance of Mitsubishi Estate Sustainability-Linked Bonds
Sustainability-linked bonds are bonds that may change financially and structurally in response to a company's achievement of pre-determined sustainability goals.
1st bond (Issue date: July 22, 2022)
Mitsubishi Estate issued our first Sustainability Linked Bond on July 22, 2022.
Overview
| Name | Mitsubishi Estate Co., Ltd. 139th - 141st Unsecured Bonds (Mitsubishi Estate Sustainability-Linked Bonds) |
||
|---|---|---|---|
| Terms decision date | July 15, 2022 | ||
| Issue | 139th bonds | 140th bonds | 141st bonds |
| Issue date | July 22, 2022 | July 22, 2022 | July 22, 2022 |
| Redemption date | July 22, 2027 | July 22, 2032 | July 22, 2052 |
| Term | 5 years | 10 years | 30 years |
| Issue amount | 20.0 billion yen | 20.0 billion yen | 20.0 billion yen |
| Interest rate | 0.360% | 0.644% | 1.543% |
| KPIs | Percentage of electricity from renewable energy sources | Percentage of reduction in total GHG emissions, including CO2, in the Group’s value chain | (1) Percentage of reduction of total GHG emissions, including CO2, in the Group’s value chain (2) Percentage of female managers |
| SPTs*1 | Achieve 100% by FY2025 | At least 70% for Scope 1 and 2 combined, at least 50% for Scope 3 (base year: FY2019) | (1) Achieve net zero by 2050 (2) Achieve 40% by FY2050 |
| SPTs determination date | December 31, 2026 | December 31, 2031 | December 31, 2051 |
| Bond characteristics after determination | In the event there is no third-party verified reporting by the determination date that the SPTs have been achieved, donations will be made or voluntary credits that have been certified under a Japanese program or by an international certification organization will be purchased before the redemption date. | ||
| Bond ratings | AA- (Rating and Investment Information, Inc. (R&I)), A+ (S&P Global Ratings Japan Inc.), A2 (Moody’s Japan K.K.) | ||
- Sustainability Performance Targets. Targets for improvement in measurable KPIs on which issuers commit to a predefined timeline
See the following press releases for more information.
Issuance of Mitsubishi Estate’s First Sustainability-Linked Bond (PDF 538KB) (Japanese only)
Announcement of Investment in the Sustainability-Linked Bonds
See the following press release for information on investors who have announced their investment in the 1st Mitsubishi Estate Sustainability-Linked Bonds.
2nd bond (Issue date: July 22, 2022)
Mitsubishi Estate issued our 2nd Sustainability Linked Bond on May 2, 2023.
Overview
| Name | Mitsubishi Estate Co., Ltd. 142nd - 143rd Unsecured Bonds (Mitsubishi Estate Sustainability-Linked Bonds) |
||
|---|---|---|---|
| Terms decision date | April 26, 2023 | ||
| Issue | 142nd bonds | 143rd bonds | |
| Issue date | May 2, 2023 | May 2, 2023 | |
| Redemption date | May 2, 2028 | May 2, 2033 | |
| Term | 5 years | 10 years | |
| Issue amount | 30.0 billion yen | 30.0 billion yen | |
| Interest rate | 0.430% | 0.900% | |
| KPIs | Percentage of electricity from renewable energy sources | Percentage of reduction in total GHG emissions, including CO2, in the Group’s value chain | |
| SPTs | Achieve 100% by FY2025 | At least 70% for Scope 1 and 2 combined, at least 50% for Scope 3 (base year: FY2019) | |
| SPTs determination date | December 31, 2026 | December 31, 2031 | |
| Bond characteristics after determination | In the event there is no third-party verified reporting by the determination date that the SPTs have been achieved, donations will be made or voluntary credits that have been certified under a Japanese program or by an international certification organization will be purchased before the redemption date. | ||
| Bond ratings | AA- (Rating and Investment Information, Inc. (R&I)), A+ (S&P Global Ratings Japan Inc.), A2 (Moody’s Japan K.K.) | ||
See the following press releases for more information.
Issuance of Mitsubishi Estate’s Sustainability-Linked Bonds (PDF581 KB) (Japanese only)
Announcement of Investment in the Sustainability-Linked Bonds
See the following press release for information on investors who have announced their investment in the 2nd Mitsubishi Estate Sustainability-Linked Bonds.
Issuance of Mitsubishi Estate’s Sustainability-Linked Bonds (PDF581 KB) (Japanese only)
ESG Finance Award Japan
Our Sustainability Linked Bonds received the Gold Award (Minister of the Environment Award) in the fundraiser category of the 4th (2023) ESG Finance Award Japan, which was established and organized by the Ministry of the Environment to promote and expand the use of ESG finance.
See the following press release for more information.
Announcement of the Winners of the 4th Annual ESG Finance Award Japan (Japanese only)
Use of Sustainability Linked Loan (SLL)
The Sustainability Linked Loan Principles seek to promote and support environmentally and socially sustainable economic activity and economic growth by setting Sustainability Performance Targets ("SPTs") linked to borrowers' sustainability goals, linking loan terms such as interest rates to borrowers' performance against SPTs, and providing incentives to achieve SPTs.
Conclusion of SLL Agreement with The MUFG Bank
Mitsubishi Estate concluded a sustainability linked loan with The MUFG Bank.
Overview of the Loan
Loan (1)
- Execution date: March 30, 2023
- Loan period: 4 years
- Amount: 15.0 billion yen
- Application of funds: Business funds
Loan (2)
- Execution date: March 30, 2023
- Loan period: 5 years
- Amount: 15.0 billion yen
- Application of funds: Business funds
Goals related to SPTs for this Sustainability Linked Loan
| KPI | Percentage of electricity from renewable energy sources |
|---|---|
| SPT | Achieve 100% by FY2025 |
Conclusion of SLL Agreement with The Norinchukin Bank
First Loan Agreement (Execution Date: May 29, 2020)
Mitsubishi Estate concluded the Japanese real estate industry's first loan agreement based on a sustainability linked loan with The Norinchukin Bank.
Overview of the Loan
- Execution date: May 29, 2020
- Loan period: 11 years and three months
- Amount: 11.5 billion yen
- Application of funds: Long-term working funds
Third party opinion from Japan Credit Rating Agency, Ltd. (Japanese only) (PDF 1.6MB)
Announcement on Entering into Sustainability Linked Loan Agreements (Japanese only) (PDF 510KB)
Second Loan Agreement (Execution Date: October 14, 2022)
Mitsubishi Estate concluded loan agreements based on SLLs with The Norinchukin Bank, which will be the second such loans following the one executed on May 29, 2020.
Overview of the Loans
Loan (1)
- Execution date: October 14, 2022
- Loan period: 11 years
- Amount: 25.0 billion yen
- Application of funds: Long-term working funds
Loan (2)
- Execution date: October 14, 2022
- Loan period: 6 years
- Amount: 25.0 billion yen
- Application of funds: Long-term working funds
Third party opinion from Japan Credit Rating Agency, Ltd. (Japanese only) (PDF 3.0MB)
Announcement on Entering into Sustainability Linked Loan Agreements (Japanese only) (PDF 532KB)
Third Loan Agreement (Execution Date: March 25, 2024)
Mitsubishi Estate concluded loan agreements based on SLLs with The Norinchukin Bank, which will be the third such loan.
Overview of the Loans
- Execution date: March 25, 2024
- Loan period: 4 years
- Amount: 30.0 billion yen
- Application of funds: Long-term working funds
Goals related to SPTs for this Sustainability Linked Loan
| KPI | Percentage of electricity from renewable energy sources |
|---|---|
| SPT | Achieve 100% by FY2025 |
Green Finance
Mitsubishi Estate Green Bond Issued
The mission of the Mitsubishi Estate Group is to contribute to the creation of a truly meaningful society by building attractive, environmentally sound communities where people can live, work and relax with contentment.
In June 2018, in order to raise funds for the Tokyo Station Tokiwabashi Project currently underway in front of the Nihonbashi exit of Tokyo Station, Mitsubishi Estate issued the Mitsubishi Estate Green Bond, the first in Japan from an integrated real estate company. The Mitsubishi Estate Green Bond was issued based on a framework in accordance with the Green Bond Principles published by the International Capital Market Association (ICMA), and Mitsubishi Estate obtained an opinion on compliance with the principles from a third-party certification institution.
The Mitsubishi Estate Green Bond also obtained the highest GA1 rating in an R&I Green Bond Assessment carried out by Rating and Investment Information, Inc. which evaluates the extent to which proceeds from the issuance of a green bond are used to invest in projects that contribute to solving environmental problems.
Overview
| Name | Mitsubishi Estate Co., Ltd. 127th unsecured corporate bonds (Mitsubishi Estate Green Bond) |
|---|---|
| Date of determination of issuance terms | June 20, 2018 |
| Date issued | June 26, 2018 |
| Maturity date | June 26, 2023 |
| Term | 5 years |
| Total amount issued | 20 billion yen |
| Use of proceeds | All funds will be used to finance the construction of Tower A of the Tokyo Tokiwabashi Project facing Tokyo Station. |
| Bond rating | AA- (Rating and Investment Information, Inc.) A+ (Standard & Poor's Global Ratings Japan) A2 (Moody's Japan) |
See the following press releases for your reference (Japanese only).
Mitsubishi Estate Unveils New Name for Its Tokyo Tokiwabashi Project as "TOKYO TORCH" (PDF 4.3MB)
Third-Party Ratings Concerning Eligibility
Second party opinion
The bonds were issued based on a framework that followed the Green Bond Principles published by the International Capital Market Association, and the company obtained opinions from a third party certification organization regarding the bond's eligibility as a green bond.
Second Opinion from Sustainalytics (Japanese only) (PDF 820KB)
Green bond assessment
The R&I Assessment evaluates the extent to which funds raised through green bonds are invested in business projects that solve environmental projects. This project received the highest rank of GA1 in the Assessment.
Ministry of the Environment issuance model cases
The company filed an application for the bond to be considered as a model case by the Ministry of the Environment for its Models of Green Bond Issuance in 2018. It was selected and has confirmed with the Ministry and its contractors that the bond complies with the Green Bond Guidelines 2017.
Mitsubishi Green Bond Investment Announcements
Please see the following press release for information on investors that have announced their investments in the Mitsubishi Estate Green Bond.
Allocation Report
Mitsubishi Estate has confirmed that the funds procured from the issue of green bonds to finance the construction of the Tokiwabashi District Redevelopment Project Tower A in front of Tokyo Station have been used in full. The Finance & Accounting Department executive officer in charge of these matters has filed a management assertion regarding the appropriation of these funds.
| Procured Appropriations | Appropriations Used | Appropriations to Be Used |
|---|---|---|
| 19,931 million yen | 19,931 million yen | 0 million yen |
As of July 17, 2020
Details of the Tokiwabashi District Redevelopment Project
- A large-scale redevelopment project covering a total area of 3.1 hectares, the largest in the vicinity of Tokyo Station. It includes the development of an approximately 390m super high-rise tower that will become a new landmark for the city of Tokyo and a spacious plaza measuring approximately 7,000m² that will transform the area in front of Tokyo Station, all of which will be developed and equipped in stages. The project is a designated project for the National Strategic Special Zone Program.
- The project will be carried out in stages over a 10-year period while maintaining and updating vital infrastructure functions including sewage pumps and transformer substations within the district.
- As a designated project for the National Strategic Special Zone Program, this project will be located in the middle of Tokyo's chief business center and is positioned to be known as the Tokyo Global Financial Center. To that end it is intended to contribute to urban redevelopment in the following ways:
1. Renewal of urban infrastructure, creation of a pedestrian network, preparation of a plaza, etc.
2. Creation of a hub to enhance international competitiveness (finance/business exchange and urban tourism).
3. Creation of superior disaster management and an eco-conscious urban environment.
TOKYO TORCH project website (Japanese only)
A rendering of TOKYO TORCH overall at the time of its opening as seen from the Marunouchi side of JR Tokyo Station
DBJ Green Building Certification
Tower A for the Tokiwabashi District Redevelopment Project in front of Tokyo Station has been awarded the Development Bank of Japan (DBJ) Green Building certification as a building that exhibits the highest level of “environmental and social awareness” in Japan (certification obtained March 29, 2019). The structure was subsequently renamed Tokiwabashi Tower and awarded the DBJ Green Building certification upon its completion (certification obtained August 6, 2021).
Use of Green Finance for Office Building Development Project in Sydney, Australia
In December 2021, Mitsubishi Estate entered into a green loan agreement to fund construction of Parkline Place, a premium office building development project being undertaken in Sydney, Australia, in partnership with Oxford Properties Group and its subsidiary Investa.
A green loan is a loan in which the use of funds is restricted to projects that have an effect on improving the environment. This is the first time that Mitsubishi Estate has used a green loan to raise funds for an overseas project.
Mitsubishi Estate plans to use the funds from the loan to promote an environmental design that will help improve efficient use of energy and resources and for initiatives such as recycling approximately 90% of construction waste. Through these initiatives, the company aims to obtain the highest 6-Star rating in Australia’s Green Star*1 real estate environmental certification system. The company is also considering provision of work-life management, mindfulness, personal health and other such services in addition to environment-related initiatives with the aim of obtaining Core and Shell*2 Certification under WELL Certification (WELL Building Standard*3), which is an international certification concerned with health and well-being.
Overview of Green Loan
- Contract month: October 2021
- Lender: Gresham Property (GPF No. 8 Fund)
- Borrowing amount: AUD 700 million (approx. JPY 56.9 billion [AUD1 = JPY81*4])
- Borrowing period: October 2021 - March 2024 (planned)
- Application of funds: Construction costs for Parkline Place
- A real estate environmental certification system operated by the Green Building Council of Australia
- A category of certification within WELL Certification that mainly applies to newly-constructed tenanted buildings.
- A U.S. certification system that evaluates buildings and spaces from the perspective of human health and well-being.
- As of December 2021
See the following press release for more details.
Positive Impact Finance
Positive Impact Finance (PIF) is financing based on the Principles for Positive Impact Finance proposed by the United Nations Environment Programme Finance Initiative. As part of this program, financial institutions comprehensively analyze and evaluate both the positive and negative impact corporate activities have on the environment, society, and economy, as they provide loans with the aim of continued support. The most significant feature of the program is that the level of contribution to achieve Sustainable Development Goals (SDGs) through a company’s activities, products, and services is used as evaluation indicators and monitored based on publicly disclosed information.
Positive Impact Finance loan agreement signed
In November 2021, Mitsubishi Estate signed a Positive Impact Finance (with unlimited use of funds) loan agreement with Sumitomo Mitsui Trust Bank, Limited.
Overview of the initiative
| Date of agreement | November 30, 2021 |
|---|---|
| Loan period | 10 years |
| Loan amount | 5 billion yen |
| Use of funds | Long-term operating funds |
In order to help achieve a sustainable society through its business activities, the Mitsubishi Estate Group has established the Mitsubishi Estate Group Sustainability Vision 2050 and has set out the Mitsubishi Estate Group 2030 Goals for SDGs as part of its Long-Term Management Plan 2030, detailing themes and actions established as milestones for achieving this vision.
In concluding this agreement, Sumitomo Mitsui Trust Bank qualitatively and quantitatively assessed the Group’s initiatives in the four areas of focus that the impact Mitsubishi Estate Group 2030 Goals for SDGs sets out — namely, environment, diversity & inclusion, innovation, and resilience — areas that particularly have impact toward achieving SDGs. See the following press release for further details.
This program has obtained a third-party opinion from Japan Credit Rating Agency, Ltd. as its assessment procedures being compliant to the Principles for Positive Impact Finance Principles as well as for the rationality of the evaluation indicators employed.
The Japan Credit Rating Agency website for further details (PDF 1.6MB) (Japanese only)
