Asahi Group Holdings, Ltd. issued Green Bonds (Unsecured Corporate Bonds No. 14 ) within the Japanese domestic market in October 2020.
Asahi plans to use the proceeds from the green bonds mainly for procurement of recycled PET and biomass plastic, purchase of renewable energy and forest conservation activities at the company forest, “Asahi Forest.”
The Asahi Group engages in business operations that utilize the gifts of nature, including water, crops and other cultivated raw ingredients. In order to pass on the nature's gifts to the next generation by actively promoting efforts to address a wide range of environmental issues, Asahi formulated Asahi Group Environmental Vision 2050 in 2019. In this vision, Asahi upholds targets of reducing CO2 emissions to zero by 2050 in order to respond to climate change, and realizing 100% utilization of sustainable resources for crops and raw materials, containers and packaging, and water. With the proceeds from the green bond, Asahi is going to further accelerate its efforts to work towards the realization of a sustainable society together with the growth of its business operations.
Summary of Green Bonds
|Issuer||Asahi Group Holdings, Ltd.|
|Issue amount||JPY 10.0 billion|
|Issue date||October 15, 2020|
|Use of proceeds||
|Lead managers||Nomura Securities Co., Ltd., Daiwa Securities Co. Ltd., SMBC Nikko Securities Inc. and Mizuho Securities Co., Ltd.|
|Green bond structuring agent*||Nomura Securities Co., Ltd.|
* This organization supports the issuance of green bonds by giving advice regarding the formulation of green bond frameworks and on obtaining Second-Party Opinions.
Second-Party Opinion of Green Bond Eligibility
The Asahi Group has obtained a Second-Party Opinion from Japan Credit Rating Agency, Ltd. to ensure transparency and alignment with the 2018 Green Bond Principles and the Green Bond Guidelines 2020, and to attract more investors.
Investment Announcements for Asahi Group Green Bond
- Asset Management One Co., Ltd.
- Credit Guarantee Corporation of Ishikawa
- ICHIMARU PHARCOS Co., Ltd.
- The 77 Bank, Ltd.
- SUMITOMO LIFE INSURANCE COMPANY
- DaitokyoShinkumi Credit Cooperative
- Tokio Marine & Nichido Fire Insurance Co., Ltd.
- TOKYO UNIVERSITY OF AGRICULTURE EDUCATIONAL CORPORATION
- Tokyo Bay Shinkin Bank
- JA Nishikasugai
- Nippon Life Insurance Company
- THE HIGASHI-NIPPON BANK,LIMITED
- Sumitomo Mitsui Trust Asset Management Co., Ltd.
- Mitsubishi UFJ Kokusai Asset Management Co., Ltd.
- Mitsubishi UFJ Trust and Banking Corporation
- Meiji Yasuda Asset Management Company Ltd.
- Meiji Yasuda Life Insurance Company
- The Yamanashi Chuo Bank, Ltd.
- WASHIN CHEMICAL INDUSTRY CO .,LTD.
For the issuance of its green bond, the Asahi Group has formulated a green bond framework which specifies Asahi's policy concerning the four core components (1. Use of proceeds, 2. Process of project evaluation and selection, 3. Management of proceeds, and 4. Reporting), which are defined in the 2018 Green Bond Principles of the International Capital Market Association (ICMA) and Green Bond Guidelines 2020 of Japan's Ministry of the Environment.
Report on Allocation
Approximately 564 million yen was allocated to expenditures in eligible projects in 2020.
Purchase of renewable energy: 44 million yen
Introduction of heat-pump vending machines: 207 million yen
Procurement of recycled PET, procurement of biomass plastic: 269 million yen
|1. Status of initiatives toward achieving Asahi Carbon Zero|
|Amount of renewable energy electricity purchased||14GWh|
|Amount of CO2 emissions reduced||1,674t|
|2. Status of initiatives toward using sustainable containers and packaging|
|Amount of eco-friendly materials used, such as recycled
PET and biomass plastic
|3. Status of initiatives toward promoting sustainable water resources|
|Overview of Asahi Forest||Land managed under Asahi Forest in 2020 was 2,467 ha, helping Asahi Breweries, Ltd. becoming 95% water neutral|
* Certain items were revised based on the most recently available environmental data to ensure appropriate reporting.