Fund Procurement through Sustainable Finance｜Sustainability

The Fuyo Lease Group is promoting business strategies based on the CSV approach, and proactively advancing sustainable financing initiatives in its fund procurement.

We will continue to diversify our methods of fund procurement and further promote our response to the problem of climate change and to social issues, aiming to contribute to the realization of a sustainable society.

Disclosure of Sustainable Finance Framework

We have formulated a sustainable finance framework to strengthen our fund procurement through sustainable finance.

Fuyo General Lease Co., Ltd. Sustainable Finance Framework (in Japanese)

Reporting of KPIs/SPTs applied to individual financing activities

Post-Issuance Verification Report (Sep. 2024) (In Japanese)

Disclosure of Transition Finance Framework

We have established a transition finance framework so we can support the transition of customers as an Enabler.

Fuyo General Lease Co., Ltd. Transition Finance Framework (in Japanese)

Green Bond/Sustainability Bond/Sustainability-Linked Bond Issuance Track Record

Issuance (click to see the relevant release [in Japanese])	Issue date	Issuance amount	Redemption date	KPI/SPT (linked bonds only)		Reporting
No.17 unsecured corporate bonds (limited to corporate bonds with a special agreement on the same priority) (Green Bond)	November 2, 2018	10 billion yen	November 2, 2023	-		Details
No.20 unsecured corporate bonds (limited to corporate bonds with a special agreement on the same priority) (Green Bond)	July 22, 2019	5 billion yen	July 22, 2024	-		Details
No.27 unsecured corporate bonds (limited to corporate bonds with a special agreement on the same priority) (Sustainability-Linked Bond)	December 24, 2020	10 billion yen	December 24, 2027	SPT1: Renewable energy usage rate for group electricity consumption 50% or more (Maturity: July 2024)		Details
	December 24, 2020	10 billion yen	December 24, 2027	SPT2: Cumulative amount of the Fuyo 100% Renewable Electricity Declaration Support Program, and the Fuyo Zero Carbon City Support Program 5 billion yen or higher (Maturity: July 2024)		Details
No.31 unsecured corporate bonds (limited to corporate bonds with a special agreement on the same priority) (Sustainability Bond) (known as “Fuyo CSV Bond”)	September 17, 2021	10 billion yen	September 17, 2026	-		Details
No.38 unsecured corporate bonds (limited to corporate bonds with a special agreement on the same priority) (Sustainability-Linked Bond)	October 27, 2023	27 billion yen	October 27, 2028	KPI 1: CO₂ reduction contributions	SPT 1: 500,000 t-CO₂/year in FY2026	Post-Issuance Verification Report (Sep. 2024) (In Japanese) Fuyo Lease Group Integrated Report 2024
	October 27, 2023	27 billion yen	October 27, 2028	KPI 2: Percentage of materials/ chemicals contained in waste plastics (from returned items) that are recycled^*1	SPT 2: 100% in FY2026
No.40 unsecured corporate bonds (limited to corporate bonds with a special agreement on the same priority) (Sustainability-Linked Bond)	February 28, 2024	10 billion yen	February 28, 2029	KPI 1: CO₂ reduction contributions	SPT 1: 500,000 t-CO₂/year in FY2026	Post-Issuance Verification Report (Sep. 2024) (In Japanese) Fuyo Lease Group Integrated Report 2024
	February 28, 2024	10 billion yen	February 28, 2029	KPI 2: Percentage of materials/ chemicals contained in waste plastics (from returned items) that are recycled^*1	SPT 2: 100% in FY2026
No.41 unsecured corporate bonds (limited to corporate bonds with a special agreement on the same priority) (Sustainability-Linked Bond)	April 26, 2024	30 billion yen	April 26, 2029	KPI 1: CO₂ reduction contributions	SPT 1: 500,000 t-CO₂/year in FY2026	(To be issued in FY2025)
	April 26, 2024	30 billion yen	April 26, 2029	KPI 2: Percentage of materials/ chemicals contained in waste plastics (from returned items) that are recycled^*1	SPT 2: 100% in FY2026	(To be issued in FY2025)
No. 2 Hybrid Bond (With Subordination Agreement) (Sustainability-Linked Bond)	September 18, 2024	20 billion yen	September 18, 2059^*2	KPI 1: Amount invested in promoting decarbonization (non-consolidated)	SPT 1: Cumulative total of 226 billion yen over five years (FY2022-FY2026) (non-consolidated)	(To be issued in FY2025)
	September 18, 2024	20 billion yen	September 18, 2059^*2	KPI 2: Human resources development-related expenses (non-consolidated)	SPT 2: 300% in FY2026 (compared to FY2021) (non-consolidated)	(To be issued in FY2025)
No.42 unsecured corporate bonds (limited to corporate bonds with a special agreement on the same priority) (Sustainability-Linked Bond)	December 4, 2024	20 billion yen	December 4, 2029	KPI 1: CO₂ reduction contributions	SPT 1: 500,000 t-CO₂/year in FY2026	(To be issued in FY2025)
	December 4, 2024	20 billion yen	December 4, 2029	KPI2: CDP Climate Change Scores	SPT2: Leadership level (A, A-) on the CDP Climate Change Score	(To be issued in FY2025)

*1

Percentage of materials/chemicals contained in waste plastics recycled by consolidated subsidiary FGL Circular Network Co., Ltd.’s outsourcing partner, out of the waste plastics from returned items received at FGL Circular Network Co., Ltd.’s Hachioji Technical Center (kg basis).
*2

Can be redeemed before the redemption date on each interest payment date from September 18, 2029, onward at the Company’s discretion.

Disclosure of Internal Reviews Related to Sustainability-Linked Loans with Engagement Dialogue

Sustainability-linked loans with engagement dialogue are a method of financing in which sustainability performance targets (SPTs) are set through dialogue with the issuer to promote higher-level sustainability management, with the loan conditions varying depending on the achievement of the SPTs.
As an internal review of the stated loans, we disclose the results of our self-assessments as follows.

Self-Assessment Results of Sustainability-Linked Loans with Engagement Dialogue (in Japanese)

Positive Impact Finance (Loan) Agreements

Positive impact finance is a method of financing that comprehensively analyzes and evaluates the environmental, social, and economic impacts of corporate activities, and contributes to the achievement of the SDGs by expanding positive impacts. Third-party opinions regarding the stated loans are disclosed as follows.