Impact Measurement Process
Based on the Impact Radar disclosed by UNEP FI, we will identify the items that will have an impact by industry and by individual company.
(1) Evaluation procedure
- ①Analysis of "Integrated Reports," "ESG Reports," "Mid-term Management Plans," "Other IR materials," web information, etc. disclosed by companies.
- ②Comprehensive confirmation of the contents of the company's segments, business areas, and value chain (supply chain).
- ③Analysis based on our evaluation criteria based on Impact Radar. Interviews are conducted as necessary.
- ④Clarify the impact category and the content of impact (positive/negative), and identify positive impact.
- ⑤Evaluate the positive impact of ③ above, the content of KPIs, and the status of setting policies and initiatives to address the SDGs.
(2) Review by a third-party organization
- ①In order to ensure the transparency of the evaluation conducted in (1) above, an external third-party organization will be utilized.
- ②An interview will be conducted by the third-party organization.
- ③The third party organization will provide an opinion (review) on "the implementation of procedures in line with the Principles For Positive Impact Finance " and "the content of the evaluation".
- ④Disclose our evaluation to the company, and the third-party review on the website.
(3) Monitoring procedure
- ①Continuous monitoring of the situation in (1) ④ above is required in accordance with the Principles For Positive Impact Finance.
- ②Companies are required to continuously disclose materials such as "Integrated Report", "ESG Report", "Mid-term Management Plan", "Other IR materials", etc., which show the status of (1) ④ above throughout the loan period (basically no need to prepare a new report for the monitoring).
- ③SMTB monitor the appearance of positive impacts from the disclosure materials. Some discussion between SMTB and the company about measures against the issues of each themes are held if necessally.