Mitsubishi Heavy Industries, Ltd. International Web site

Tokyo, March 18, 2022 – Mitsubishi Heavy Industries, Ltd. (hereinafter, “MHI”) utilized for the “2021 Native climate Changeover Finance Mannequin Tasks”(Take be aware) of Ministry of Financial system, Commerce and Sector (hereinafter, “METI”) and was picked as a product instance. Simply one of many particular capabilities of this product instance is that MHI not solely applications to realize emission discount from the financial actions of alone but in addition makes an try to assist the belief of changeover ways of different features by its items and suppliers.

DNV Firm Assurance Okay.Okay. (hereinafter, “DNV”) opined that MHI’s “Roadmap to Receive Carbon Neutrality” is regular with the sector-specific roadmaps (electrical energy, gasoline, iron and metal, chemical) formulated by METI and the sector-precise roadmap (worldwide transport) formulated by the Ministry of Land, Infrastructure, Transport and Tourism from the point of view of MHI’s efforts to promptly provide units, facilities and suppliers that are vital for the execution of those roadmaps. DNV additionally opined that MHI’s roadmap certainly goals at contributing to CO2 discount in a big assortment of price chains, along with many vital industries.

MHI is getting ready to issue Changeover Bond by way of public presenting within the home present market based mostly totally on this product illustration in fiscal 12 months 2022.

1. Define of this Mannequin Occasion

In accordance with the three statements which are on the coronary heart of our Concepts, MHI Crew serves as a producing company that contributes to societal progress by its small enterprise endeavors of offering gadgets and programs in assist of social and industrial infrastructure globally, and resolving worldwide considerations. MHI has outlined two improvement areas to goal on in its 2021 Medium-term Small enterprise Technique, introduced in October 2020: “Electrical energy Changeover,” which goals to decarbonize the power supply aspect, and “New Mobility and Logistics”, which goals to grasp the decarbonization, and increase {the electrical} energy effectivity, manpower preserving within the power want aspect. MHI Group is totally commited to advertising and marketing corporations of those two elements, and to advancing the decarbonization, electrification, and intelligence of the current firms, in buy to achieve Net Zero by 2040. MHI Crew produced the declaration of reaching Carbon Neutrality by 2040 with the following newly set targets.

CO2 Emission Discount Objective

Objective 12 months (1)Reduce CO2 emissions throughout MHI Group
Scope1&2
(2)Cut back CO2 emissions throughout MHI’s worth chain
Scope 3+reductions from CCUS
2030 ▲50%(in comparison with 2014) ▲50%(in comparison with 2019)
2040 Web Zero Net Zero

Scope 1&2: The calculation common is predicated on the GHG Protocol
Scope 3: The calculation regular is based on the GHG Protocol. Even so, we additionally account for reductions attained by CCUS as an MHI genuine index
CCUS: Carbon dioxide Seize, Utilization and Storage

Roadmap to Accomplish Carbon Neutrality

Roadmap to Achieve Carbon Neutrality

 

Roadmap to Achieve Carbon Neutrality

These targets help the general price chain related to our enterprise enterprise to achieve carbon neutrality.

MHI’s methods are aligned with the 2050 Carbon Impartial Declaration of the Japanese federal authorities. We take into account the issuance of changeover bond as wanted funding for our actions towards carrying out Carbon Neutrality by 2040.

【Abstract of the scheduled Changeover Bond】

Tenor 5 A few years (anticipated)
Quantity To be launched
Timing First fifty % of FY2022 (predicted)
Use of Proceeds (envisioned)(Notice)
  • Hydrogen Gasoline Turbine (100% hydrogen combustion/co-firing)
  • Steam Electrical energy (conversion to ammonia co-firing)
  • Gasoline engine for electrical energy technology(100% hydrogen combustion/co-firing)
  • Manufacturing of hydrogen (blue or turquoise and many others.)
  • Metals tools (hydrogen based mostly ironmaking and so forth.)
  • CO2seize/storage
Structuring agent Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
Direct supervisor Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. To be launched
Second event impression DNV Small enterprise Assurance Japan Okay.Okay.
  • Use of Proceeds is set based mostly totally on the upper than initiatives. It may as completely embrace R&D assets, enterprise enterprise enchancment and operation money, and doing the job funds of the appropriate firms and/or tasks, which have been confirmed dependable with sectoral roadmaps for electrical energy, fuel, iron & metal, substances (Ministry of Monetary system, Commerce and Enterprise) and transport (Ministry of Land, Infrastructure, Transport and Tourism), outlined in “Mitsubishi Main Industries, Ltd. Environmentally pleasant/Changeover Finance Framework” stated beneath.

2. Eco-friendly/Changeover Finance Framework

MHI has created “Mitsubishi Weighty Industries, Ltd. Inexperienced/Transition Finance Framework” and has acquired a second social gathering opinion from DNV, an impartial exterior reviewer, that this framework is aligned with the following concepts and proposals.

  • ICMA Inexperienced Bond Ideas 2021
  • Ministry of the Pure atmosphere Japan Environmentally pleasant Bond Ideas 2020
  • LMA, APLMA, LSTA Environmentally pleasant Financial institution mortgage Concepts
  • Ministry of the Environment Japan Inexperienced Private mortgage and Sustainability Joined Private mortgage Strategies 2020
  • ICMA Native climate Transition Finance Handbook 2020
  • Financial Knowledgeable providers Firm, Japan Ministry of Monetary system, Commerce and Trade, Japan and Ministry of the Ambiance Japan Fundamental Guidelines on Local weather Changeover Finance (Could presumably 2021)
  • A endeavor of METI which offers info on and reduces the evaluation bills for illustrations which are deemed to have design traits in get to promoting the unfold of changeover finance. Examples that conform to the “Elementary Pointers on Local weather Transition Finance”, formulated by the Ministry of the Environment (MOE) and the Economical Suppliers Firm (FSA), and have design attributes will likely be chosen as product examples.

This press launch has been prepared for the only perform of publicly asserting the Firm’s changeover finance, and never for the objective of soliciting monetary funding or partaking in another comparable routines inside or outdoor Japan.