NYK Secures Japan’s First ESG Loan

Maritime Activity Reports, Inc.

March 20, 2019

Image: NYK

Image: NYK

Japanese shipping major Nippon Yusen Kabushiki Kaisha (NYK) has entered into a 9 billion yen syndicated loan agreement in which the proceeds will be used solely for the purpose of funding environment-friendly projects.

"This is Japan’s first syndicated loan to be certified by Japan Credit Rating Agency (JCR) with its highest ranking of “Green 1,” thus demonstrating the loan to be aligned with the core components of the Green Loan Principles," said a press release from the global ocean transportation company.

NYK’s medium-term management plan includes the group’s intent to integrate environmental, social, and governance (ESG) initiatives into management strategy by establishing new medium- to long-term environmental targets.

NYK’s reduction targets for GHG emissions are 30% per ton-kilometer by 2030 compared with a 2015 base year, and 50% per ton-kilometer by 2050 compared with the same base year.

To achieve these goals, NYK was the first company in the global shipping industry to issue labelled green bonds, and after that achievement in March 2018 the company received a green loan from Taiyo Life Insurance Company in December 2018.

This new syndicated loan agreement is the third form of green financing for NYK for a total of over 20 billion yen.

In addition, this syndicated loan is the first “ESG management support loan” for MUFG Bank and Mitsubishi UFJ Research and Consulting Co. Ltd.(MURC), and NYK’s industry-leading ESG management received MURC’s highest ESG evaluation.

NYK will promote green finance and continue its efforts to keep a wide range of stakeholders involved in the company’s proactive approach to environmental investment as the company makes efforts to contribute to realizing a sustainable society with technology that lessens environmental burdens.

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