As a comprehensive developer, the Sumitomo Realty Group has been working on “Sustainability Management” to continuously enhance its corporate value under fundamental mission of “Creating even better social assets for the next generation.” Throughout our business activities, we have been pursuing an integrated approach to not only create economic value but also contribute to solutions to social issues of the local communities, thus creating social value that will continue to serve future needs.
In order to apply this approach to our financing, in May 2022, we established a Green Finance Framework that raises a total of 1 trillion yen in the Ninth Medium-term Management Plan (fiscal year ending March 31, 2023 to fiscal year ending March 31, 2025). In April 2024, we decided to add 1 trillion yen to the quota, bringing the cumulative total to 2 trillion yen.

The Sumitomo Realty Group’s Green Finance, which will be financed through loans and bonds, will limit the use of proceeds to the refinancing, etc. of properties that have acquired three stars or above in the DBJ Green Building Certification*1, which is granted to properties with excellent environmental performance.

The Sumitomo Realty Group aims to develop properties with excellent environmental performance, maintaining and improving their performance through appropriate maintenance and renewal, and holding them for the long term in order to contribute to the improvement of the environment for society as a whole. Based on this policy, we will follow the principles below for target properties during the period of financing. (1) Periodically disclose environmental performance information, such as CO2 emissions and energy consumption (2) Maintain at least three stars in the DBJ Green Building Certification (3) Prohibit selling them to third parties outside the Sumitomo Realty Group

This Green Finance Framework has acquired evaluations by the Japan Credit Rating Agency, Ltd. (JCR) and Rating and Investment Information, Inc. (R&I), to certify compliance with related principles etc.*2

*1: The DBJ Green Building Certification is one of the Green Building Certification Systems. It was established by the Development Bank of Japan Inc. to evaluate real estate for its performance and initiatives regarding “environmental and social awareness” beyond its “profitability.” *2: The “Green Bond Principles” (2021) formulated by the International Capital Market Association (ICMA),
The “Green Loan Principles” (2021) formulated by each of the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA), and the Loan Syndications and Trading Association (LSTA), and
The “Green Bond Guidelines” (2020) and the “Green Loan and Sustainability Linked Loan Guidelines” (2020) formulated by the Ministry of the Environment

Please refer to the following links for the Green Finance Framework and the evaluation reports by JCR and R&I. May 12, 2022
Green Finance Framework (JP)
May 12, 2022
JCR Green Finance Framework Evaluation (JP)
May 12, 2022
R&I Green Finance Framework/Second Opinion (JP)