Green Finance Portal
When issuing a Green Bond, it is recommended that the issuer provides a "use of proceeds", "prior provision of information regarding project evaluation and selection process to investors", "management of proceeds", and "disclose" such information. It is also recommended that an external review of these measures is used if an objective evaluation is required.
❹ Reporting
Reporting is a process of disclosing the latest information on the use of Green Bond proceeds after issuance through the issuer's official website and other means to provide investors with progress information about the project. From the perspective of investor protection, highly transparent and immediate information disclosure is expected.
With respect to timing of disclosure, issuers should disclose the usage status of funds at least once a year until all the proceeds are used and whenever there has been a major change in the situation. They should disclose such information in a timely manner even after all the proceeds are allocated if there has been any major change in the situation. A major change in the situation includes, but is not limited to, the sale of the asset or project for which the proceeds are used, a serious accident in the project or the occurrence of an event that affects green characteristics.
Examples of disclosure information
- Overview and progress of Green Projects to which Green Bond proceeds have been allocated
- The amount allocated to each Green Project
- Environmental benefits of each Green Project (actual/expected)
- Information regarding unallocated Green Bond proceeds (the amount of the unallocated proceeds or the share of the unallocated proceeds to the total amount of the proceeds, when the unallocated proceeds are expected to be allocated to Green Projects, and how the unallocated proceeds are managed until allocation)
- If there are confidentiality agreements, it is considered that information is presented in an aggregated portfolio.
- When disclosing the expected environmental benefits of projects, it is recommended that issuers, where feasible, use quantitative indicators and disclose information on methodologies and/or assumptions as well as these indicators.
| Project category | Possible Projects | Outline | Progress | Amount of proceeds allocated |
Environmental benefits |
|---|---|---|---|---|---|
| Projects for renewable energy | Wind power generation | Project to construct wind power facilities, generate power at the facilities, and sell electricity through feed-in tariffs (FIT) | Under construction (To start operations in MM/YYYY) | XXX million yen | Amount of CO2 reduced ZZ t-CO2/year |
| Projects for pollution prevention and control | Recycling of waste | Project to construct fuel manufacturing facilities and manufacture fuel via waste recycling | Construction to start in MM/YYYY | YYY million yen | Reduction in the waste incinerated: XX t/year |
| Projects for the sustainable management of living natural resources | Planting | Project to plant trees to conserve and recover ecosystems in the XX region | Completed | XXX million yen | Area of forests regenerated by planting: X ha |
| Total | XXX million yen | ||||
- The currently unallocated proceeds (XXX million yen) will be allocated in MM and M'M'/YYYY along with the progress of the construction of the waste recycling facilities. Until then, the unallocated proceeds will be managed as cash or cash equivalents.
- The following are the details of each project.
| Project category | Possible Projects | Number of projects | Amount allocated | Environmental benefits (CO2 reduction) |
|---|---|---|---|---|
| Projects for renewable energy | Solar power generation | XX | YYY million yen | ZZ t-CO2/year |
| Wind power generation | XX | YYY million yen | ZZ t-CO2/year | |
| Manufacture of batteries | XX | YYY million yen | ZZ t-CO2/year | |
| Subtotal | XX (Refinancing:xx) |
YYY million yen (Refinancing:xxx million yen) |
ZZ t-CO2/year | |
| Projects for energy Efficiency | Construction of new energy efficient buildings | YY | YYY million yen | ZZ t-CO2/year |
| Renovation of buildings for better energy efficiency | YY | YYY million yen | ZZ t-CO2/year | |
| Subtotal | YY (Refinancing:YY) |
YYY million yen (Refinancing:xxx million yen) |
ZZ t-CO2/year | |
| Projects for eco-efficient products,manufacturing technologies, and processes | Manufacturing of products that meet the requirements of environmental certifications | XX | YYY million yen | ZZ t-CO2/year XX t/year |
| Subtotal | XX (Refinancing:ZZ) |
YYY million yen (Refinancing:ZZ million yen) |
ZZ t-CO2/year | |
| Total | XX (Refinancing:ZZ) |
YYY million yen (Refinancing:ZZ million yen) |
ZZ t-CO2/year | |
| Unallocated proceeds (managed via short-term financial assets) |
YYY million yen | |||
- The following are a few examples of typical projects.
Indicators and methods for calculating environmental benefits
| Project category | Index examples | Details |
|---|---|---|
Projects for renewable energy |
CO2 emissions reduced(t-CO2) | Calculate by comparing the estimated CO2 emissions (t-CO2) when the project is not implemented and after the project is implemented |
| Amount of power generated by renewable energy (GWh) | Amount of power generated by renewable energy at facilities constructed through the project (GWh) | |
| Rate of use of renewable energy in the manufacturing process (%) | Compare the rate of use of renewable energy in the manufacturing process (percentage of renewable energy consumption in total energy consumption) before and after the implementation of the project | |
Projects for energy efficiency |
CO2 emissions reduced(t-CO2) | Calculate by multiplying the amount of energy reduced by the project (kL) and CO2 emission coefficient (t-CO2/kL) |
| Amount of energy consumption reduced (kL, t, m3, MWh) | Calculate by comparing the estimated energy consumptions (kL) when the project is not implemented and after the project is implemented. | |
| Number of environmental certifications obtained | The number of environmental certifications, such as LEED, CASBEE, and BELS, that were obtained for buildings involved in the project | |
| Number of energy-saving facilities and products introduced | The number of energy-saving facilities (e.g. freezers and refrigerators switched from HFC to non-chlorofluorocarbon) and energy-saving products. | |
Projects for pollution prevention and control |
Amount of air pollutants reduced | Amount of air pollutants (sulfur oxide (SOx), nitrogen oxide (NOx), and particulate matter) emissions in to the air reduced by the implementation of the project (t) |
| Amount of water pollutants reduced | Amount of water pollutants (chemical oxygen demand and biochemical oxygen demand (BOD)) discharge into public waters reduced by the project implementation (t) | |
| Amount of landfill waste reduced (t) | Amount of landfill waste reduced by project implementation (t) | |
| Amount of materials that reduce environmental loads (t) | Amount of materials such as recycled materials and renewable resources that reduce environmental loads being used (t) | |
| Amount of waste recycled (t) | Amount of waste recycled (t) | |
| Amount of waste generated (%) | Change in the amount of waste generated before and after the implementation of project | |
Projects for sustainable management of natural resources and land use |
Area of a forest managed in a sustainable manner (ha) | Area of a forest managed in a sustainable manner(ha) |
| Area where improvements have been made on urban environments in response to climate change, for biodiversity, etc. (m2) | Area where improvements have been made on urban environments in response to climate change, for biodiversity, etc., such as improvements in vegetation or ground surface in urban development (m2) | |
Projects for biodiversity conservation |
Area of healthy coral conserved by water quality improvement project (ha) | Area of healthy coral, which hasn't been whitened, conserved by projects of water quality improvement, etc. (ha) |
| Total distance of river banks restored similar to natural shape by projects (km) | Total distance of river banks restored similar to natural shape by projects (km) | |
| Acquisition of certificate for biodiversity-friendly urbanization and creation of environment | The number of ABINC and JHEP (Japan Habitat Evaluation and Certification Program) certificates acquired or the area | |
| Acquisition of certificates for biodiversity and ecosystem | The number of MSC and ASC certificates acquired or the amount of certified marine fishery products being handled | |
| Ecosystem conservation area (ha) | Area of ecosystem conservation through biodiversity conservation projects and products and services sold (ha) | |
| Conservation and amount used of bio-resources (t) | Amount of bio-resources conserved and used through products and services sold (t) | |
| Number of endangered species recovered | Number of endangered species recovered through conservation by biodiversity conservation projects and sales of products and services (population) | |
| Amount improved in ecological footprint (ha) of products and services contributing to conservation of biodiversity conservation | Ecological footprint (ha; amount of demand of ecosystem service, required for producing resources to be consumed and absorbing CO2 emitted in socio-economic activities, expressed in terms of the earth's area) improved through biodiversity conservation projects and products and services sold. | |
Projects for clean transportation |
CO2 emissions reduced (t-CO2) | Calculate by comparing the estimated CO2 emissions (t-CO2) when the project is not implemented and after the project is implemented |
| Percentage of next-generation vehicles (%) | Percentage of next-generation vehicles in the total number of new vehicles sold (%) | |
| Passenger transport Capacity | Number of passengers (people) × Distance (km) and/or Number of passengers or Total traffic volume (t) × Distance (km) and/or Total traffic volume (t) | |
| Fuel consumption performance | Estimated reduction in fuel consumption | |
| Change in traffic volume | Changes in automobile traffic and rail traffic volume | |
Projects for sustainable water resources management |
Area of wetted surface reduced (ha) | Reduction in the estimated area of wetted surface in the event of heavy rain from the implementation of the project (ha) |
| Number of beneficiaries (persons/households) | Number of persons/households that gain access to water through the project implementation | |
| Annual water conservation (m3) | Total amount of annual water use (m3) before and after the project and the rate of reduction in water use (%) before and after the project | |
| Effluent treatment efficiency | The amount of effluent treatment before and after the project and reused amount or amount contributed to reduction (m3/a) and ratio of contribution to reduction (%) | |
Projects for climate change adaptation |
Area of a forest or a watershed managed in a sustainable manner (ha) | Area of a forest or a watershed managed in a sustainable manner (ha) |
| Area of wetted surface reduced (ha) | Reduction in the estimated area of wetted surface in the event of heavy rain from the implementation of the project (ha) | |
Projects for eco-efficient products, manufacturing technologies, and processes |
Reduction in CO2 emissions per ton of products (t-CO2/t) | Calculate by comparing CO2 emissions/ton of products (CO2 emissions (t-CO2) ÷ production volume (t)) before and after the implementation of the project |
| Amount of materials with environmental load reducing effect used (t) | The amount of recycled materials and renewable resources with environmental load reducing effect used (t) | |
| Amount of raw materials reduced (t) | Calculate by comparing the raw materials used (t) before and after the implementation of the project | |
Projects for green buildings |
Energy efficiency (kWh/m2 of GBA) | Annual energy usage per total floor area, ratio of energy usage reduction or ratio of contribution to reduction (%), ratio of power generated using renewable energy at the concerned facility to energy consumption (%) |
| Carbon performance | Annual CO2 emission per total floor space (kgCO2/m2), annual reduction/contribution to reduction of GHG emissions (in terms of CO2), annual reduction/contribution to reduction of carbon emission (%) | |
| Water resource utilization ratio | Annual water resource consumption per total floor space (m3/m2), annual total water consumption before and after the project (m3) or reduction in water consumption before and after the project (%), amount of rain water collected and the amount of recycled rain water (m3/a) | |
| Waste management | Minimization of waste in total volume of annual waste, ratio of annual reused or recycled amount (%) and/or minimization of waste, annual reused and recycled amount (t) | |
| Number of certificates acquired | Types and evaluation of certificates acquired such as LEED |