Green Deposit

Sumitomo Mitsui Trust Bank, Limited (hereinafter "SuMi TRUST Bank") has launched Green Deposit on May 7, 2021.

Green Deposit

Green Deposit is a foreign currency time deposit which proceeds are used solely to fund projects that will contribute to improvement of environmental issues, such as renewable energy, including solar power and wind power generation, as well as environmentally friendly property.

In response to the growing initiatives to address environmental issues by companies and investors in Japan and overseas, SuMi TRUST Bank recognizes that financial and non-financial support toward these initiatives is a part of its responsibilities as a financial institution.

SuMi TRUST Bank believes that its contribution to building a sustainable society will provide value to its stakeholders, through its finance of Green Deposit and the allocation or the proceeds to loans to clients of SuMi TRUST Bank.

Green Product Framework

Green Deposit is to be financed based on Green Product Framework ("the Framework") which has been developed and confirmed by SuMi TRUST Bank in cooperation with Sustainalytics that provides ESG surveys and ratings to institutional investors.

Framework Overview

SuMi TRUST Bank defined conditions of Green Deposit in the Framework.

① Use of proceeds

The proceeds of Green Deposit will be used to projects which meet all of the following ("Eligible Green Projects").

  • ⅰ)
    A project is in one or more of the Eligible Project Categories (a) to (e) as shown below;
  • ⅱ)
    For any project categorized as (a) to (d) below, a project is categorized as Category B or Category C under the Equator Principles* as published by the Equator principles Association.

For Category (e), a building receives certification, such as "LEED", "BREEAM", "CASBEE", "DBJ Green Building Certification", or "BELS" to a level of at least "LEAD Gold", "BREEAM Excellent", "CASBEE A Level", "DBJ Green Building Certification 4 Star" or "BELS 4 Star", respectively;

  • (a)
    Renewable Energy
  • (b)
    Energy Efficiency
  • (c)
    Clean Transportation
  • (d)
    Pollution Prevention and Control
  • (e)
    Green Buildings.

※「The Equator Principles」

② Management of proceeds

  • The proceeds of Green Deposit are allocated to the financing of Eligible Green Projects. Pending the allocation of the proceeds of Green Deposit to finance Eligible Green Projects, the proceeds will be invested in overnight or other short-term financial instruments.

③ Update the Framework

  • As the market and regulations evolve, SuMi TRUST Bank will update the Framework with support from Sustainalytics.

Please see below the details on Green Product Framework.

Sumitomo Mitsui Trust Bank Green Product Framework

Original

SMTB Green Product FrameworkPDF(301KB)

Annual Review

  • Sustainalytics Annually Reviews Allocation of Green Deposit Proceeds Based on the Framework
Original

SMTB Green Deposit Annual Review 2023PDF(182KB)

Note

All information in this material has been prepared for information purposes only, and shall not constitute an underwriting commitment, an offer of financing, an offer to sell, or the solicitation of an offer to buy any financial instrument.

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