Green Finance Green Finance

Green Finance Framework

Green Finance Framework has been established for the implementation of green finance, including the issuance of green bonds.

Use of Procured Funds

The funds procured through green finance (the “Procured Funds”) will be used to acquire assets that meet the green eligibility criteria listed in ➀ below (“Green Buildings”), conduct renovation work, etc. that meets the green eligibility criteria listed in ② below (“Renovation Work, etc."), or refinancing of borrowings or investment corporation bonds required for such acquisition or renovation ("Refinancing of Borrowings, etc.").

Green Eligibility Criteria

① Green Buildings

Buildings that have acquired or are scheduled to acquire any of the following environmental certifications by the respective third-party certification bodies (i) through (iii), that are valid as of the payment date of green bonds or as of the drawdown date of green loans
(i) DBJ Green Building Certification: 3 Stars, 4 Stars or 5 Stars
(ii) CASBEE Evaluation Certification（Excludes municipal version）: Rank S, Rank A, or Rank B+
(iii) BELS Certification : ［ Acquired（Criteria for 2016）］
　　　　　　　　　　　　3 Stars, 4 Stars or 5 Stars（ Excludes existing nonconforming）
　　　　　　　　　　　　［ New acquisition（After April 1, 2024） ］
　　　　　　　　　　　　Residential without renewable energy facilities: level 3 or level 4
　　　　　　　　　　　　Residential with renewable energy facilities: level 3, level 4, level 5 or level 6
　　　　　　　　　　　　Non-residential: level 4, level 5 or level 6

② Renovation Work, Etc.

Renovation Work, etc. that fulfills any of the following conditions (i) through (iii)
(i) Renovation work intended to improve the number of stars or ranks by one or more for any of the certifications listed in ➀ in the green eligibility criteria
(ii) Renovation work with the potential of reducing either energy use or greenhouse gas emissions by 30% or more
(iii) Installation or acquisition of equipment related to renewable energy

Evaluation and Selection Process of Projects

The Sustainability Promotion Office of the Asset Management Company will verify and evaluate the compliance with the green eligibility criteria for the projects for which the Procured Funds will be used, in accordance with the Sustainability Policy and the rules on the Sustainability Promotion System. Based on such verification and evaluation, the Asset Management Company’s Board of Directors and other appropriate bodies will resolve to implement green finance pursuant to the Asset Management Company’s internal rules.

Management of Procured Funds

The Procured Funds will be allocated promptly after the Asset Management Company confirms that they are linked to the acquisition of a Green Building, conducting of Renovation Work, etc., or Refinancing of Borrowings, etc. required for such.
Any unallocated Procured Funds will be managed by the Asset Management Company in cash or cash equivalents. In the event that, even after full allocation, the asset for which the funds were intended to be used becomes no longer the subject of the funds due to sale, damage, etc. before the redemption of the subject investment corporation bonds or repayment of the borrowings, the temporary unallocated funds will be managed through portfolio management(Note).

Reporting

① Reporting of Funds Allocation Status

②Reporting on Environmental Improvement Effects, Etc.

As long as there is an outstanding green finance balance, and to the extent reasonably practicable, Samty Residential will disclose on its website on an annual basis environmental improvement effects for the following.

(i) Green Building Reporting

Assessment by External Institutions

In a third-party assessment of the Framework, Samty Residential obtained a Green 1 (F) rating, the highest rating in the JCR Green Finance Framework Evaluation from Japan Credit Rating Agency, Ltd. (JCR). Please refer to the following website for details regarding the JCR Green Finance Framework Evaluation.