Sustainability
Sustainable Finance
At the Glory group, we leverage sustainable finance to address social challenges, including climate change, and contribute to the realization of a sustainable society.
In 2024, GLORY LTD. established a Sustainability Linked Finance Framework, setting the reduction of CO2 emissions from our business activities (Scope 1 and 2) as a KPI, and issued corporate bonds under this framework.
Sustainability-linked Bonds
3rd Series Unsecured Straight Bonds (with Inter-bond Pari Passu Clauses)
| Maturity | 5 years |
|---|---|
| Amount | 10.0 billion yen |
| Interest rate | 0.804% per annum |
| Determination date of issuance terms | June 7, 2024 |
| Issue date | June 13, 2024 |
| Redemption date | June 13, 2029 |
| KPI | Ratio of reduction in CO2 emissions (Scope 1 and 2) at the Company and its domestic and overseas consolidated subsidiaries |
| SPT*1 | 26.5% reduction by FY2027 (vs. FY2022) |
| Assessment date | October 31, 2028 |
| Bond characteristics | If the SPT is not achieved as of the assessment date, the Company will implement either (1) or (2) below by the redemption date of the Bonds. (1) Donation If the SPT is not achieved, the Company will donate an amount equivalent to 0.1% of the Bonds amount by the redemption date of the Bonds to a public interest incorporated association, a public interest incorporated foundation, an international institution, a local government authorized NPO, a local government, and similar organizational entities that are addressing climate change. (2) Purchase emission rights If the SPT is not achieved, the Company will purchase emission rights (J-Credits and Non-fossil certificate) or Green Power Certificates in an amount equivalent to 0.1% of the Bonds amount by the redemption date of the Bonds. However, if the Company is prevented from purchasing emission rights due to force majeure, the Company will donate as described in (1) above. |
| Rating acquired | A (Rating and Investment Information, Inc.) |
| Structuring agent*2 | Nomura Securities Co., Ltd. |
4th Series Unsecured Straight Bonds (with Inter-bond Pari Passu Clauses)
| Maturity | 10 years |
|---|---|
| Amount | 4.2 billion yen |
| Interest rate | 1.378% per annum |
| Determination date of issuance terms | June 7, 2024 |
| Issue date | June 13, 2024 |
| Redemption date | June 13, 2034 |
| KPI | Ratio of reduction in CO2 emissions (Scope 1 and 2) at the Company and its domestic and overseas consolidated subsidiaries |
| SPT*1 | 42.4% reduction by FY2030 (vs. FY2022) |
| Assessment date | October 31, 2031 |
| Bond characteristics | If the SPT is not achieved as of the assessment date, the Company will implement either (1) or (2) below by the redemption date of the Bonds. (1) Donation If the SPT is not achieved, the Company will donate an amount equivalent to 0.1% of the Bonds amount by the redemption date of the Bonds to a public interest incorporated association, a public interest incorporated foundation, an international institution, a local government authorized NPO, a local government, and similar organizational entities that are addressing climate change. (2) Purchase emission rights If the SPT is not achieved, the Company will purchase emission rights (J-Credits and Non-fossil certificate) or Green Power Certificates in an amount equivalent to 0.1% of the Bonds amount by the redemption date of the Bonds. However, if the Company is prevented from purchasing emission rights due to force majeure, the Company will donate as described in (1) above. |
| Rating acquired | A (Rating and Investment Information, Inc.) |
| Structuring agent*2 | Nomura Securities Co., Ltd. |
*1 Sustainability performance target (SPT)
A target based on the issuer's management strategy which determines the terms of issuance of the sustainability-linked bonds.
*2 Structuring agent
An entity that supports the introduction of green bonds through the establishment of a framework for sustainability-linked bonds, the provision of advice on obtaining second opinions, and other means.
Status of KPI
（t-CO2)
| FY | 2022 （Baseline） |
2024 |
|---|---|---|
| CO2 Emissions Scope 1 and Scope 2 Total |
32,637 | 30,174* |
| Reduction rate compared to the base year | - | 7.5% |
- ・Scope of calculation: GLORY LTD. and its domestic and overseas consolidated subsidiaries.
- ・Figures marked with * have been verified and assured by JIC Quality Assurance Ltd. (JICQA).
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