Transition Bond

In accordance with the three statements that are at the heart of our Principles, MHI Group serves as a manufacturing corporation that contributes to societal progress through its business endeavors of delivering products and technologies in support of social and industrial infrastructure worldwide, and resolving global issues. MHI has defined two growth areas to focus on in its 2021 Medium-term Business Plan, announced in October 2020: "Energy Transition," which aims to decarbonize the energy supply side, and “New Mobility and Logistics”, which aims to realize the decarbonization, and promote the energy efficiency, manpower saving in the energy demand side. MHI Group is committed to promoting businesses of these two areas, and to advancing the decarbonization, electrification, and intelligence of the existing businesses, in order to achieve Net Zero by 2040. MHI Group made the declaration of achieving Carbon Neutrality by 2040 with the following newly set targets.

CO2 Emission Reduction Target

Target Year (1)Reduce CO2 emissions across MHI Group Scope1&2
Scope1,2

（2）Reduce CO2 emissions across MHI's value chain
Scope 3 + reductions from CCUS
2030 ▲50％(compared to 2014) ▲50％(compared to 2019)
2040 Net Zero Net Zero

Scope 1&2: The calculation standard is based on the GHG Protocol
Scope 3: The calculation standard is based on the GHG Protocol. However, we also account for reductions achieved by CCUS as an MHI original index
CCUS: Carbon dioxide Capture, Utilization and Storage

Roadmap to Achieve Carbon Neutrality

Roadmap to Achieve Carbon Neutrality

　

Roadmap to Achieve Carbon Neutrality

These targets support the entire value chain related to our business to achieve carbon neutrality.

MHI's strategies are aligned with the 2050 Carbon Neutral Declaration of the Japanese government. We consider the issuance of transition bond as necessary funding for our activities towards achieving Carbon Neutrality by 2040.

Summary of the Transition Bond

Maturity 5 Years
Amount 10 billion JPY
Interest rate 0.310%
Date of issue September 8, 2022
Use of Proceeds New investments and refinancing of existing investments relating to eligible businesses or projects (decarbonize existing infrastructure, build hydrogen solutions ecosystem, build a CO2 solutions ecosystem)
Structuring agent Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
Lead-managing underwriters Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.; Mizuho Securities Co., Ltd.; Nomura Securities Co., Ltd.; Daiwa Securities Co., Ltd.; BofA Securities Japan Co., Ltd.; Goldman Sachs Japan Co., Ltd.
Second party opinion DNV DNV Business Assurance Japan K.K.

Green/Transition Finance Framework

MHI has developed "Mitsubishi Heavy Industries, Ltd. Green/Transition Finance Framework" and has obtained a second party opinion from DNV, an independent external reviewer, that this framework is aligned with the following principles and guidelines.

  • ICMA Green Bond Principles 2021
  • Ministry of the Environment Japan Green Bond Guidelines 2020
  • LMA, APLMA, LSTA Green Loan Principles
  • Ministry of the Environment Japan Green Loan and Sustainability Linked Loan Guidelines 2020
  • ICMA Climate Transition Finance Handbook 2020
  • Financial Services Agency, Japan; Ministry of Economy, Trade and Industry, Japan; and Ministry of the Environment Japan Basic Guidelines on Climate Transition Finance (May 2021)