Loan agreement with Sumitomo Mitsui Trust Bank for Positive Impact Finance
March 31, 2023
Takenaka Corporation
Takenaka Corporation (President: Masato Sasaki) has signed an agreement with Sumitomo Mitsui Trust Bank (President: Kazuya Oyama) for "Positive Impact Finance” (a type of loan to companies where the use of funds is not specified).
Positive Impact Finance is a loan that comprehensively analyzes and assesses the environmental, social, and economic impacts (positive and negative) of corporate activities based on the Principles for Positive Impact Finance (* 1) established by the United Nations Environment Programme Finance Initiative (UNEP FI) (* 2), with the aim of providing ongoing support for those activities.
At the conclusion of this agreement, the following themes will be selected from our company's Major Objectives (Materiality) as initiatives that will have an impact on the achievement of our Sustainable Development Goals (SDGs), and each year from now, Sumitomo Mitsui Trust Bank will evaluate the status of achieving these targets.
In this case, we have obtained a third-party opinion (* 3) from the Japan Credit Rating Agency, Ltd. on compliance with the evaluation procedures of the Principles of Positive Impact Finance and the rationality of the evaluation indicators used.
In 2020, our company identified Major Objectives that need to be addressed through our corporate activities. Since 2023, we have reviewed these objectives in light of international guidelines and trends in the corporate environment. In addition, while focusing on the unique characteristics of our company's heritage and corporate culture, we have set Major Objectives for the resolution of social issues and the sustainable growth of our own group, particularly on five themes that are unique to our group.
The Takenaka Group will continue to contribute to the achievement of our SDGs and the realization of a sustainable society.
Our company's main activities assessed as having an impact on achieving our SDGs
| Theme | Details | Targets and Indicators (KPIs) | SDGs |
|---|---|---|---|
| Sustainable architecture and urban creation | Fostering culture through architecture that stimulates the senses and developing urban creation services. | (a)Aim to be the "most prominent firm in the Japanese architecture industry.” Targets Maintain number one position among general contractors in cumulative number of major external awards. Monitoring items (KPIs, etc.) Cumulative number of major external awards ・BCS Prizes ・BELCA Prizes ・Architectural Institute of Japan Prizes (b)Aim to become an integrated engineering firm for urban creation. Targets Increase the number of social system demonstration activities to 12 (cumulative total) by 2025. Monitoring items (KPIs, etc.) Number of social system demonstration activities |
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| Harmonization with the environment | ・Architecture attempting zero life cycle CO₂ ・Architecture and urban creation in harmony with nature ・Architecture and urban creation that recycles resources |
(a)Realization of a decarbonized society Targets ⅰ.Scopes１and 2: Reduce CO2 emissions of the entire Takenaka Group 46.2% by 2030 and 100% by 2050 (base year: 2019). ⅱ. Reduce CO2 emissions of the entire Takenaka Group 27.5% by 2030 and 100% by 2050 (base year: 2019). Monitoring items (KPIs, etc.) ⅰ.CO2 emissions (Scopes 1 and 2) ⅱ.CO2 emissions (Scope 3) (b)Consideration for biodiversity Targets Implement 12 biodiversity improvement projects each year. Monitoring items (KPIs, etc.) Number of biodiversity improvement projects (c)Resource recycling and waste reduction Targets Achieve 100% recycling rate (volume ratio) of construction by-products in new construction by 2050. Monitoring items (KPIs, etc.) By-product recycling rate for new construction |
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| Work style and productivity reform | ・Pursuing construction processes that are sustainable and highly productive ・Guaranteeing appropriate working conditions, including work hours ・Realizing healthy and rewarding workplace environments with a diversity of people ・Securing, developing and retaining human resources |
(a)Ensuring appropriate working conditions such as working hours by pursuing sustainable and productive building processes Targets ⅰ.Improve construction management efficiency 9% from 2021 levels by 2025. ⅱ.Improve construction efficiency 5% from 2021 levels by 2025. ⅲ.Increase the rate of workplace closures (8 closures in 4 weeks) to 100% in 2024. Monitoring items (KPIs, etc.) ⅰ.High construction management efficiency ⅱ.High construction efficiency ⅲ.Rate of 8 closures in 4 weeks (b)Securing, developing and retaining human resources through the creation of healthy and rewarding working environments with a diversity of people (employees) Targets ⅰ.Achieve a rate of 100% for men taking parental leave each year. ⅱ.Increase the ratio of female managers to 8% or more in 2025. Monitoring items (KPIs, etc.) ⅰ.Percentage of men taking parental leave ⅱ.Ratio of female managers |
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| Steady production processes | ・Providing high quality and safe construction and services ・Realizing work sites without accidents or public disasters ・Realizing sustainable supply chains |
(a)Providing high-quality, safe construction Targets ⅰ.No serious quality problems (each year) ⅱ.In the customer satisfaction survey (at the time of completion and two years after completion), achieve 100% (each year) of "somewhat satisfied" or higher. Monitoring items (KPIs, etc.) ⅰ.Number of serious quality problems ⅱ.Percentage of respondents who answered "somewhat satisfied" or higher in the customer satisfaction survey (at the time of completion and two years after completion) (b)Realization of workplaces without accidents or public disasters Targets Do not allow any serious accidents or public disasters to occur (each year) Monitoring items (KPIs, etc.) Number of serious accidents or public disasters (c)Realizing sustainable supply chains Targets Achieve 100% compliance by major suppliers with our Business Partners Action Guidelines (each year) Monitoring items (KPIs, etc.) Rate of compliance with Business Partners Action Guidelines by major suppliers |
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| Respecting human rights | ・Respecting human rights | Targets Verification by experts once a year and improvement of initiatives based on the findings Monitoring items (KPIs, etc.)Continuous implementation of due diligence on human rights |
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- (*1)United Nations Environment Programme Finance Initiative (UNEP FI)
The United Nations Environment Programme (UNEP) is a subsidiary organ of the United Nations. It was established in 1972 as the executive body of the Human Environment Declaration and the International Plan of Action on the Environment. The UNEP FI, which was established in 1992, is a broad and close partnership between UNEP and more than 200 global financial institutions. It works with financial institutions, and policy and regulatory authorities to transform the financial system into one that integrates consideration for economic development and ESG (environmental, social, and corporate governance). - (*2) Principles for Positive Impact Finance
The financial framework for achieving Sustainable Development Goals (SDGs) was established by UNEP FI in January 2017. A company discloses its contribution to achieving SDGs in KPIs. The bank then makes an assessment and guides efforts to increase the positive impact and reduce the negative impact of the company it is funding. As the responsible financial institution, the bank monitors indicators to issue loans that ensure the impact is ongoing. - (*3) Third-Party Opinion on Compliance with Positive Impact Financial Principles and Rationality of Assessment Indicators Used
Please refer to the website of Japan Credit Rating Agency, Ltd.https://www.jcr.co.jp/greenfinance/