Sustainability | Sustainability ManagementFund Procurement through ESG Finance
- Explanation of Fund Procurement through ESG Finance
- TDK Sustainable Finance Framework
- Implementation Guidelines for Fund Procurement through ESG Finance
Explanation of Fund Procurement through ESG Finance
TDK established TDK Transformation as its new long-term vision for the entire Group. One key issues (materiality) that TDK will address to achieve this long-term vision is “implementing solutions to social and environment issues.” To achieve a society with net zero CO2 emissions by 2050, TDK will bolster its greenhouse gas reduction measures and implement countermeasures against climate change. To this end, we defined the ideal state of TDK in 2035 as "the operation under the environmental load within natural circulation," and formulated the "TDK Environmental Vision 2035," which aims to “halve the CO2 emissions intensity from a life-cycle perspective by 2035.”
The Group formulated the TDK Sustainable Finance Framework, and by using sustainability-linked finance, which sets Sustainability Performance Targets (SPTs) that reflect efforts to achieving the TDK Environmental Vision 2035, as well as green finance, which specifies the use of proceeds for achieving reductions in the CO2 emissions from products, we will establish a foundation for raising funds for achieving the TDK Environmental Vision 2035 and work continuously to improve corporate value while creating value for achieving a sustainable future.
TDK Sustainable Finance Framework
In July 2023, we formulated the TDK Sustainable Finance Framework (the “Framework”) in accordance with the Green Bond Principles 2021 and Sustainability-Linked Bond Principles 2023 of the International Capital Market Association (ICMA), the Green Loan Principles 2023 and Sustainability-Link Loan Principles 2023 of the Loan Market Association (LMA), and the Green Bond and Sustainability Linked Bond Guidelines 2022 edition and Green Loan and Sustainability Linked Loan Guidelines 2022 edition of the Ministry of the Environment.
The Framework received a second-party opinion from Rating & Investment Information, Inc., (R&I), a third-party evaluation organization, to the effect that it complies with various standards relating to the issuance and procurement of green finance (bonds, loans, etc.) with a specified use of proceeds as well as sustainability-linked finance (bonds, loans, etc.) without a specified use of proceeds.
