DAIKI AXIS CO., LTD. SUSTAINABILITY FINANCE FRAMEWORK ELIGIBILITY ASSESSMENT REPORT REVISED 1.0

SECOND PARTY OPINIONDAIKI AXIS CO., LTD.
SUSTAINABILITY FINANCE FRAMEWORKELIGIBILITY ASSESSMENT REPORTREVISED 1.0

Prepared by: DNV Business Assurance Japan K.K.
Location: Kobe, Japan
Date: 28 September 2021
Ref. Nr.: PRJN-289367-2021-AST-JPN

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DAIKI AXIS CO., LTD. SUSTAINABILITY FINANCE FRAMEWORK ELIGIBILITY ASSESSMENT REPORT REVISED 1.0

Executive Summary
Daiki Axis Co., Ltd. (hereinafter “Daiki Axis”) was founded as fully owned subsidiary of Daiki Corporation in 2005 and has
provided its core business ‘Environmental Facilities’, ‘Housing Facilities’ and ‘Renewable Energy’ which intends to be issued
this sustainability finance (warrant and loan) (hereinafter Finance). Daiki Axis has established its ‘Daiki Axis Sustainability
Finance Framework’ and will raise the proceeds from the Finance 2.18 billion JPY to finance and refinance to Water-related
infrastructure business focusing to abroad (China, South-East Asia, India, and Africa) through the business ofEnvironmental Facilities and renewable energy-related business focusing mergers and acquisitions of companies engaged
in solar power generation business, based on its mid-term business plan (promotion of ESG management).
The acquisition of additional external reviews by Daiki Axis for the revised framework is a proactive disclosure of
information to various stakeholders such as investors and financial institutions and will ensure transparency and credibilityof the green eligibility of the updated project, its implementation plan, and structure. Through the implementation of themedium-term management plan (promotion of ESG management) using the sustainability finance of Daiki Axis, thecompany's efforts toward the realization of a sustainable society are expected to be widely recognized by the market.
Daiki Axis engages DNV Business Assurance Japan K.K. (hereinafter “DNV”) as external reviewer to assess its eligibility assustainability (green and social)*1 finance framework. DNV referred or applied against four core components which arerecognized as basic requirements in the global capital market, such as green and social finance, in Green Bond Principles(ICMA, 2021 hereinafter GBP), Green Loan Principles (LMA, 2021 herein after GLP) and Social Bond Principles (ICMA, 2021
hereinafter SBP), respectively*2. Eligible projects falling into this Finance are described in following table. The Daiki Axis
Sustainability projects contribute to UN Sustainable Development Goals (6. Clean Water and Sanitation,7. Affordable andClean Energy, 13. Climate Action) directly and indirectly, as well.
Sustainability
Project

Portfolio
Environmental
Facilities

Business(Water-related
Infrastructure
Business)

Sustainability

Project Category*2(Eligibility Criteria)
Green*Project-01,02,03- Sustainable water
and wastewater
management

Business)

new production facility, andSewage Treatment

land purchase for Johkasou

Plant) construction andsupply to India, Bangladesh,

operation (1.07b-JPY)

Kenya, Myanmar and Sri

SDGs

6.Clean Water andSanitationLankasystem through BOO BOT tosystem installation andIndia, Bangladesh, Kenya, Sri*Project-03

operation (BOO, BOT)

Lanka and Myanmar)- Affordable basic(0.27b-JPY)
Project-03:

Infrastructure of water

Clean drinking watersupply-chain (including retail,services (Water Kiosk)

operation) for clean drinking(0.04b-JPY)

water using RO system

Green

Project-04:

Funding for mergers andservices (health)

Generation

Funding to expansion andJohkasou (Decentralized

Wastewater treatment- Access to essential(Solar Power

Project-01:

Wastewater treatment

drinking water)

Business(Fund Amount)

Sustainability
Project Outline

Project-02:

and control

infrastructure (clean

Energy-related

Project- Pollution prevention

SocialRenewable

Sustainability- Renewable Energy

Solar power generationacquisitions of operating(Energy-derived CO2

business ofcompanies engaged in the

reduction)

development,

development, operation,

operation, equipment

equipment sales, etc. of thesales, etc. (0.8 b-JPY)

solar power generation
business

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7. Affordable andClean Energy
13. Climate ActionDAIKI AXIS CO., LTD. SUSTAINABILITY FINANCE FRAMEWORK ELIGIBILITY ASSESSMENT REPORT REVISED 1.0*1: Refer to The Green Bond Principles (ICMA, 2021), Green Loan Principles (LMA, 2021), The Social Bond Principles(ICMA, 2021), Sustainability Bond Guidelines (ICMA, 2021) and Climate Bonds Standard v3.0 representative eligible project
category.
*2: Since this warrant is different from bond or loan instruments, available principles and requirements are referred for
eligibility assessment with understanding the four core components. As for this loan finance, DNV GL applied all four corecomponents against GLP and referred to the other related principles/guidelines, as well.
*3: SDGs target 6 aligns with the programme of “Jal Jeevan Mission (JJM)” as drinking water infrastructure and services
issues according to the Central Government of India promotion.

DNV provides sustainability finance framework eligibility in our independent opinion against GBP, GLP, SBP
and available sector criteria of CBS (CBI v3.0) using DNV assessment protocol. Assessment summary against
its four core components is following.
1. Use of Proceeds: Proceeds raised from sustainability finance, 2.18 billion JPY, would be allocated to thesustainability projects in the above table as Water-related infrastructure business focusing toabroad (China, South-East Asia, India and Africa) through the business of Environmental Facilities
and renewable energy-related business focusing mergers and acquisitions of companies engaged
in solar power generation business. Eligible projects contribute to water and renewable energyrelated environmental and social issues.
2. Process for Project Evaluation and Selection: Projects would align with Daiki Axis corporate philosophy,
mid-term management plan (promotion of ESG management). The project has been selected andevaluated based on the protocol of Daiki Axis referring to GBP, GLP, SBP and related criteria.
Projects are considered the environmental law and regulation, and communication with the local
community can achieve environmental and social benefit.
3. Management of Proceeds: Daiki Axis would manage the proceeds (2.18 billion JPY from the exercise of
the right of warrant and loan) based on its internal protocol. Net proceeds will be allocated as
finance to new projects and refinance to existing projects. Proceeds will be managed by thefinance dept. as cash or cash equivalent until disbursement from the exercise of the right ofwarrant and loan, based on the accounting procedure of Daiki Axis.
4. Reporting: Daiki Axis will disclose annual report/information on the Daiki Axis website include the statusof fund allocation, project progress and environmental impact, at least once a year with external
review by DNV until one year after project completion. For its conformance with integrity andobjectivity against sustainability finance.
DNV confirmed Daiki Axis sustainability finance framework, related documents and information that Daiki Axis
sustainability finance conforms relevant criteria then is supposed to be appropriately executed.

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DAIKI AXIS CO., LTD. SUSTAINABILITY FINANCE FRAMEWORK ELIGIBILITY ASSESSMENT REPORT REVISED 1.0

CONTENTS
Executive Summary

2

Ⅰ Introduction

6

Ⅱ Scope and Objectives

8

Ⅲ Responsibilities of the Management of the Daiki Axis and DNV

9Ⅳ Basis of DNV’s opinion

10

Ⅴ Work Undertaken

11

Ⅵ Findings and DNV’s opinion

12

Ⅶ Assessment Conclusion

20

Schedule-1 Daiki Axis Sustainability Finance Projects

21

Schedule-2 Sustainability Finance Eligibility Assessment Protocol

23SF-1 Use of Proceeds

23SF-2 Process for Project Selection and Evaluation25

SF-3 Management of Proceeds

27SF-4 Reporting

28

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DAIKI AXIS CO., LTD. SUSTAINABILITY FINANCE FRAMEWORK ELIGIBILITY ASSESSMENT REPORT REVISED 1.0

Revision History
RevisionIssue Date

Number(dd/mm/yyyy)

Rev.0

21/8/2020

Remarks
Initial- Addition of target country for plant construction in water-related infrastructurebusiness (India)- Addition of target project category for the use of proceeds (solar power
generation business)- Re-evaluation due to revision and addition of each standard (Green Bond
Principles: 2018 version → 2021 version, Green Loan Principles: 2018 version

Rev.1.0

28/9/2021→ 2021 version, Social Bond Principles: 2020 version → 2021 version, Green
Bond Guidelines 2020, Green Loan Guidelines 2020, Sustainability Bond
Guidelines: 2018 version → 2021 version, Climate Bonds Standard v3.0: Solar
criteria)- Schedule-3 Added solar criteria- Schedule-4 Added Green Loan Guidelines Eligibility Assessment- Other formal changes (e.g., due to name change from DNV GL to DNV)

Disclaimer
Our assessment relies on the premise that the data and information provided by Issuer to us as part of our review procedures have been
provided in good faith. Because of the selected nature (sampling) and other inherent limitation of both procedures and systems of internal
control, there remains the unavoidable risk that errors or irregularities, possibly significant, may not have been detected. Limited depth ofevidence gathering including inquiry and analytical procedures and limited sampling at lower levels in the organization were applied as per
scope of work. DNV expressly disclaims any liability or co-responsibility for any decision a person or an entity may make based on thisStatement.

Statement of Competence and Independence
DNV applies its own management standards and compliance policies for quality control, in accordance with ISO/IEC 17021:2011 Conformity Assessment Requirements for bodies providing audit and certification of management systems, and accordingly maintains acomprehensive system of quality control, including documented policies and procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory requirements. We have complied with the DNV Code of Conduct 1 during theassessment and maintain independence where required by relevant ethical requirements. This engagement work was carried out by anindependent team of sustainability assurance professionals. DNV was not involved in the preparation of statements or data included in the
Framework except for this Statement. DNV maintains complete impartiality toward stakeholders interviewed during the assessment process.

1 DNV Code of Conduct is available from DNV website (www.DNV.com)

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DAIKI AXIS CO., LTD. SUSTAINABILITY FINANCE FRAMEWORK ELIGIBILITY ASSESSMENT REPORT REVISED 1.0

Ⅰ Introduction
Basic Information
Daiki Axis Co., Ltd. (hereinafter “Daiki Axis”) was founded as fully owned subsidiary of Daiki Corporation in2005 and has provided its core business ‘Environmental Facilities’, ‘Housing Facilities’ and ‘Renewable Energy’
which intends to be issued this green bond. Daiki Axis has established its ‘Daiki Axis Sustainability Finance
Framework’ and will raise the proceeds from its finance 2.18 billion JPY to finance and refinance to waterrelated infrastructure business focusing to abroad (China, South-East Asia, India and Africa) through businessof Environmental Facilities and renewable energy-related business focusing mergers and acquisitions ofcompanies engaged in solar power generation business, based on its mid-term business plan (promotion of
ESG management).
Daiki Axis engages DNV Business Assurance Japan K.K. (hereinafter “DNV”) as external reviewer to assess its
eligibility as sustainability (green and social)*1 finance framework. DNV referred or applied against four corecomponents which are recognized as basic requirements in the global capital market, such as green bond andsocial bond, in Green Bond Principles (ICMA, 2021 hereinafter GBP), Green Loan Principles (LMA, 2021
hereinafter GLP) and Social Bond Principles (ICMA, 2021 hereinafter SBP), respectively*2 and related guidelines
and standards and such as Sustainability Bond Guidelines (ICMA, 2021), Green Bond Guidelines (MOEJ, 2020) ,Green Loan Guidelines (MOEJ, 2020) and Climate Bonds Standards (CBI, v3.0)
DNV confirmed Daiki Axis Sustainability Finance framework, related documents and information that Daiki Axis
Sustainability Finance conforms relevant criteria then is supposed to be appropriately executed.

*1: Refer to The Green Bond Principles (ICMA, 2021), Green Loan Principles (LMA, 2021), The Social Bod Principles (ICMA,2021) and Climate Bonds Standard v3.0 representative eligible project category.
*2: Since this warrant is different from bond or loan instruments, available principles and requirements are referred for
eligibility assessment with understanding its four core components. As for this loan finance, DNV applied all four corecomponents against GLP.

Issuer name: Daiki Axis Co., Ltd.
Framework Name: Daiki Axis Sustainability Finance Framework
Review provider’s name: DNV Business Assurance Japan K.K.
Completion date of this form: 28 September 2021
Publication date of review publication: 1st October 2021 (plan)

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DAIKI AXIS CO., LTD. SUSTAINABILITY FINANCE FRAMEWORK ELIGIBILITY ASSESSMENT REPORT REVISED 1.0

About the Issuer
Daiki Axis history began in 1958 with the founding ‘Ogame Corporation’ of a specialty store for tiles andsanitary ware, and then changed its commercial name to ‘Daiki Corporation.’ Daiki Axis was established as awholly owned subsidiary of Daiki Corporation and was independent by buy-out soon after. Daiki Axis groupcurrently consists of Daiki Axis, 14 consolidated subsidies (domestic: 7, overseas: 7) and 2 affiliates(overseas: 2).
The main business segments are “Environmental equipment-related business” centered on Johkasou(Decentralized Sewage Treatment Plant) and wastewater treatment systems, “housing equipment-related
business” represented by system kitchen, and “Renewable energy-related business” including solar power
generation business, small wind power generation business and biodiesel fuel business, etc.
Daiki Axis set its management philosophy ‘PROTECT x CHANGE ‘ to protect the environment and change thefuture*1. Daiki Axis promotes its mid-term management plan (promotion of ESG management) *2 throughits business especially (1) Water-related infrastructure business in overseas (China, Southeast Asia and India
and Africa), (2) Renewable energy business centering in solar power and small wind power generation
business in the environment field.
Daiki Axis identifies 6-materiality which it should achieve priority based on the UN SDGs.
Promoting water-related infrastructure business and renewable energy-related business of Daiki Axis
sustainability finance contributes to environmental and social issues directly and indirectly. It is closely
related to Daiki Axis’s corporate philosophy, promotion of mid-term management plan (promotion of ESG
management) and selected SDGs targets (6. Clean Water and Sanitation,7. Affordable and Clean Energy, 13.
Climate Action) contribution*3.
SDGs

Business

Daiki Axis Group Activities
 Introduction manufacturing facility base for Johkasou(Decentralized Sewage Treatment Plant) to large

Water-related businesspopulation area (China, India and Indonesia)
 Local sales office contraction in Asia region (Vietnam,
Myanmar and Sri Lanka) and Africa (Kenya)

Renewable energyrelated business CO2 emission reduction through Renewable energy
business (solar power and small-scale wind power) Introduction of Energy efficient products
 Promotion of 100％ introduction of renewable energy
Daiki Axis respective
business (Corporate
administration)

electricity covering Daiki Axis business activities
Reform working system and diversity
 Promotion women to board member
 Certification of ‘KURUMIM’ (MHLW) for Women’s career
promotion＊1：Corporate Slogan：http://www.daiki-axis.com/english/index.html＊2：ESG promotion http://www.daiki-axis.com/ir/info/index09.html(Explanatory Material for Individual Investors)＊3：The relevance to SDGs is complementary to the issuance of green bonds, with reference to Green, Social and Sustainability
Bonds: A High-Level Mapping to the Sustainable Development Goals established by ICMA, which sets out the Green Bond
Principles. It would not intend directly related to the funding purposes.

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DAIKI AXIS CO., LTD. SUSTAINABILITY FINANCE FRAMEWORK ELIGIBILITY ASSESSMENT REPORT REVISED 1.0

Ⅱ Scope and Objectives
Daiki Axis has commissioned DNV Business Assurance Japan K.K. (hereinafter “DNV”) to conduct Daiki Axis
sustainability finance framework assessment of Daiki Axis sustainability finance, hereinafter “Finance,” preissuance assessment and periodical review. The objective of DNV’s assessment is to implement anassessment to confirm that the Finance framework meets the identified criteria referred or applied against to
GBP, GLP, SBP and the associated technical criteria related to water infrastructure and solar in CBS, as set
out below, and to provide the Issuer with an independent second-party opinion on the eligibility of the
Finance.
As part of the revision of the assessment report, India has been added to the list of target countries for theconstruction of plants in the water-related infrastructure business, and solar power generation business has
been added to the list of target project categories for the use of proceeds.
DNV holds no other engagements with the Daiki Axis, including its direct shareholders, for which we foresee
the conflict of interest to carry out the Scope of Work as defined in the agreement agreed with the Daiki Axis.
In this paper, no assurance is provided in this report regarding the financial performance of sustainability
finance*1, the value of any investment, or the long-term environmental and social benefits.
*1: Sustainability Finance specific aspects are described details in section Ⅵ.(3).

(1) Scope of review

The review assessed the following elements and confirmed their alignment with the SBP:☒

Use of Proceeds☒

Process for Project Evaluation and Selection☒

Management of Proceeds☒

Reporting(2) Role(s) of review provider☒
Consultancy (incl. 2nd opinion)☐

Certification☐

Rating☐Verification☐

Other (please specify):(3) Standards/guidelines to be applied
No.

Standards/guidelines

Scheme owner

Applied level

1.

The Green Bond Principles 2021, GBP

International Capital Market Association

Reference2.

Green Bond Guidelines, GBGLs

Ministry of Environment Japan, 2020

Reference

3.

The Social Bond Principles 2021, SBP

International Capital Market Association

Reference

4.

The Sustainability Bond Guidelines 2021, SBG

International Capital Market Association

Reference

5.

Green Loan Principles 2021, GLP

Loan Market Association, etc

Apply

6

Green Loan Guidelines, GLGLs

Ministry of Environment Japan, 2020

Apply

7.

Climate Bonds Standard version 3.0 (Sector criteria;
water infrastructure , solar), CBS (CBS-WI、CBS-SE)

Climate Bond Initiative

Reference(Available sector)

8.

Green and Social Bonds: A High-Level Mapping to
the Sustainable Development Goals (June 2018)

International Capital Market Association

Reference

9.

Handbook Harmonized Framework for Impact
Reporting June 2019

International Capital Market Association

Reference

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DAIKI AXIS CO., LTD. SUSTAINABILITY FINANCE FRAMEWORK ELIGIBILITY ASSESSMENT REPORT REVISED 1.0

Ⅲ Responsibilities of the Management of the Daiki Axis and DNV
The management of the Daiki Axis has provided the information and data used by DNV during the delivery ofthis review. DNV’s statement represents an independent opinion and is intended to inform the managementof the Daiki Axis and other interested stakeholders in the Finance as to whether the established criteria havebeen met, based on the information provided to us. In our work we have relied on the information and thefacts presented to us by the Daiki Axis.
DNV is not responsible for any aspect of the candidate projects and assets referred to in this opinion andcannot be held liable if estimates, findings, opinions, or conclusions are incorrect. Thus, DNV shall not beheld liable if any of the information or data provided by the Management of the Daiki Axis and used as abasis for this assessment were not correct or complete.

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DAIKI AXIS CO., LTD. SUSTAINABILITY FINANCE FRAMEWORK ELIGIBILITY ASSESSMENT REPORT REVISED 1.0

Ⅳ Basis of DNV’s opinion
To provide as much flexibility for the issuer, Daiki Axis as possible, we have adapted our Finance assessment
methodologies, which incorporates the applicable requirements of the GBP, GLP, SBP and related criteria, tocreate a Daiki Axis-specific Finance Eligibility Assessment Protocol (henceforth referred to as “Protocol”). The
Protocol has the capacity for potential application of the Finance under the GBP, GLP, SBP and related criteria.
Our Protocol includes a set of suitable criteria that can be used to underpin DNV’s opinion. The overarching
principle and guidelines behind the criteria are that the Finance should “enable capital-raising and investment
for new and existing projects with environmental and social benefits.”
As per our Protocol, the criteria against which the Finance has been reviewed are grouped under the fourPrinciples:•

Principle One: Use of Proceeds. The Use of Proceeds criteria is guided by the requirement that anissuer of a Finance must use the funds raised to Finance eligible activities. The eligible activities
should produce clear environmental and/or social benefits.

•

Principle Two: Process for Project Evaluation and Selection. The Project Evaluation and
Selection criteria are guided by the requirements that an issuer of the Finance should outline theprocess it follows when determining the eligibility of an investment using Finance proceeds andoutline any impact objectives it will consider.

•

Principle Three: Management of Proceeds. The Management of Finance Proceeds criteria are
guided by the requirements that a Finance should be tracked within the issuing organization, thoseseparate portfolios should be created when necessary and that a declaration of how unallocatedfunds (from the exercise of the right of warrant or loan to disbursement to the project) will behandled should be made.

•Principle Four: Reporting. The Reporting criteria are guided by the recommendation that at least
Sustainability Reporting to the Finance investors should be made of the use of bond proceeds andthat quantitative and/or qualitative performance indicators should be used, where feasible.

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DAIKI AXIS CO., LTD. SUSTAINABILITY FINANCE FRAMEWORK ELIGIBILITY ASSESSMENT REPORT REVISED 1.0

Ⅴ Work Undertaken
Our work constituted a high level of review of the available information, based on the understanding that thisinformation was provided to us by the Issuer in good faith. We have not performed an audit or other tests tocheck the veracity of the information provided to us. The work undertaken to form our opinion included:

Additional Assessment of Sustainability Finance (due to revision of assessment report):•

Creation of the Issuer-specific Protocol, adapted to the purpose of the Finance, as described above
and in Schedule-2 to this Assessment.

•

Assessment of documentary evidence provided by the Issuer on the Finance and supplemented
assessment by a high-level desktop research. These checks refer to current assessment bestpractices and standards methodology.

•

Discussions with the Issuer, and review of relevant documentation.

•

Documentation of findings against each element of the criteria.

Periodic (Annual) Assessment: *periodic assessment is not included in this report•

Evaluation of the supporting documents provided by the Issuer related to the Finance, high level
desktop surveys, document reviews, and interviews with key personnel of the issuer. These checks
refer to current assessment best practices and standard methodologies.

•

Discussion with the Issuer management and review of relevant documentation.

•

Field survey and inspection, if required.

•

Review of the nominated projects and assets as described in Schedule-2 as at the time of periodic
assessment•

Review and testing where possible of reporting data.

•

Documentation of findings for Periodic assessment as detailed in this document.

Our opinion as detailed below is a summary of these findings.

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DAIKI AXIS CO., LTD. SUSTAINABILITY FINANCE FRAMEWORK ELIGIBILITY ASSESSMENT REPORT REVISED 1.0

Ⅵ Findings and DNV’s opinion
DNV’s findings are listed below:(1)

Use of Proceeds
DNV GL has confirmed that the net proceeds raised by the Finance (2.18 billion JPY) is planned to beallocated to the nominated sustainability projects (Table-1) related expenditure*1 as new finance orrefinance that meet the representative green and social project category in GBP, GLP and SBP criteria
below:
Every project (01～04) which is determined representative green category against related principles andguidelines, clearly contributes to the improvement of the environment where the project is implemented
and the energy-derived CO2 reduction. Moreover, issuer demonstrates the social benefit and target
population of project-03. Project-03 will contributes the solution both directly and indirectly for social
issues which raised by Indian government related to water problems in India for its residents and local
public where less access to reliable drinking water suppliers.*4 Project-04 will be implemented throughmergers and acquisitions of operating companies engaged in renewable energy-related businesses.
Eligible Criteria-1: Sustainable water and wastewater management
Pollution prevention and control
Project-01: Johkasou (Decentralized Sewage Treatment Plant)
construction and operation
Project-02: Wastewater treatment business (BOO, BOT) *2 *3
Eligible Criteria-2: Affordable basic infrastructure (clean drinking water)
Access to essential services (health)
Project-03: Clean drinking water services (Water Kiosk) *4
Eligible Criteria-3: Renewable Energy (Energy-derived CO2 reduction)
Project-04: Solar power generation business of development, operation, equipment
sales, etc.

*1 Project related expenditure: expenditure for manufacturing facilities construction, land, equipment for water treatment
septic tank production expansion and new production, Installation and running cost of BOT*2 and BOO*3
business.
*2 BOO business: Build Own Operate, Daiki Axis group provides construction, fund raising, operation and maintenance.
Daiki Axis continuously hold its ownership or decommission/demolition of facilities after contraction.
*3 BOT business: Build Operate Transfer, Daiki Axis group provides construction, fund raising, operation and maintenance.
Owner takes over its ownership from Daiki Axis group after contraction.
*4 Project-03: The Central Government of India assists the named National Rural Drinking Water Programme (NRDWP) toachieve social issues related water infrastructure, whose objective is “enable all households to have accessto and use safe & adequate drinking water within premises to the extent possible”. Daiki Axis sustainability
finance project contribute to solve the above social issues including following works/schemes, according to
JJM (Jal Jeevan Mission, Water life mission). Indian administrative committee (NITI Aayang) has reported
600million Indian citizens faced severe water service condition.
- Reliable drinking water source development/ augmentation of existing sources- Technological intervention for treatment to make water potable (where water quality is an issue, but
quantity is sufficient)- Grey water management

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DAIKI AXIS CO., LTD. SUSTAINABILITY FINANCE FRAMEWORK ELIGIBILITY ASSESSMENT REPORT REVISED 1.0

Table-1 Daiki Axis sustainability finance projects(details are shown in Schedule-1)
Sustainability
Project
Portfolio
Environmental
Facilities

Business(Water-related
Infrastructure
Business)

Sustainability
Project Category*2(Eligibility Criteria)

Sustainability
Project(Fund Amount)

Sustainability
Project Outline

SDGs

6.Clean Water and Sanitation

Green

Project-01:

Funding to expansion*Project-01,02,03

Johkasou (Decentralized

and new production- Sustainable water and

Sewage Treatment

facility, and landwastewater

Plant) construction andpurchase for Johkasou

management

operation (1.07b-JPY)

supply to India,- Pollution prevention

Bangladesh, Kenya,
Myanmar and Sri Lanka

and control
Social*Project-03- Affordable basic
infrastructure (clean
drinking water)- Access to essential
services (health)

Project-02:

Wastewater treatment

Wastewater treatment

system through BOO

system installation and

BOT to India,

operation (BOO, BOT)

Bangladesh, Kenya, Sri(0.27b-JPY)

Lanka and Myanmar)

Project-03:

Infrastructure of water

Clean drinking watersupply-chain (including

services (Water Kiosk)

retail, operation) for(0.04b-JPY)

clean drinking waterusing RO system

Renewable
Energy-related
Business(Solar Power
Generation

Green

Project-04:

Funding for mergers- Renewable Energy

Solar power generation

and acquisitions of(Energy-derived CO2

business ofoperating companies

reduction)

development, operation,

engaged in theequipment sales, etc.

development,(0.8b-JPY)

operation, equipment
sales, etc. of the solar

Business)

power generation
business

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7. Affordable and Clean
Energy13. Climate ActionDAIKI AXIS CO., LTD. SUSTAINABILITY FINANCE FRAMEWORK ELIGIBILITY ASSESSMENT REPORT REVISED 1.0

Daiki Axis BA-5

Daiki Axis BA-25

Figure-1 Project 01 & 02 Example (Johkasou, Decentralized Sewage Treatment Plant)

Figure-2 Project 03

Example, Clean drinking water equipment/services (Water Kiosk)

Shiroumaru Own Power Plant

Kamonai Power Plant

Figure-3 Project 04 Example, Development and sales of solar power plant

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DAIKI AXIS CO., LTD. SUSTAINABILITY FINANCE FRAMEWORK ELIGIBILITY ASSESSMENT REPORT REVISED 1.0

Use of proceeds categories as per GBP and GLP:☒

Renewable energy☐

Energy efficiency☒

Pollution prevention and control☐

Sustainable management of living natural☐

Terrestrial and aquatic biodiversity conservation☐

Clean transportation☒

Sustainable water management☐

Climate change adaptation☐

Eco-efficient products, production technologies and☐Other (please specify):☐

Unknown at Sustainability finance issuance but currently expected to conform with GBP categories, or otherprocesses

resources

eligible areas not yet stated in GBPs

Use of proceeds categories as per SBP:☒

Affordable basic infrastructure☒

Access to essential services☐

Affordable housing☐

Employment generation (through SME financing☐

Food security☐

Socioeconomic advancement and empowerment☐

Unknown at issuance but currently expected to☐

Other (please specify): issuer applies the SBP

conform with SBP categories, or other eligible
areas not yet stated in SBPs

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and microfinance)

DAIKI AXIS CO., LTD. SUSTAINABILITY FINANCE FRAMEWORK ELIGIBILITY ASSESSMENT REPORT REVISED 1.0(2) Process for Project Evaluation and Selection
DNV has confirmed that the nominated four sustainability projects based on sustainability project portfolio ofEnvironmental Facilities Business (Water-related infrastructure business) and Renewable Energy-related
Business described in the Schedule-1, were evaluated and selected through the appropriate determined
process by the relevant sections of the issuer based on its corporate philosophy (corporate slogan) and midterm management plan (promotion of ESG management) (refer to the section Ⅰ ‘About Issuer’). Issuer
applies eligibility criteria listed in Section Ⅱ (3) and considers the negative effect to environment or society
based on its ‘Sustainability project selection prerequisites’ described below, as well.

< Sustainability project selection prerequisites >Compliance with environmental law and regulations (e.g., Environmental Impact Assessment)Communication with local communities

Evaluation and selection:☒

Credentials on the issuer’s green and social☒

Defined and transparent criteria for projects☒

Summary criteria for project evaluation andobjectives

eligible for Social Bond proceeds

selection publicly available☒

Documented process to determine that projects fit☒

Documented process to identify and manage☐

Other (please specify):

within defined categories

potential ESG risks associated with the project

Information on Responsibilities and Accountability:☒

Evaluation / Selection criteria subject to external☐

Other (please specify):

advice or verification☒

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In-house assessment

DAIKI AXIS CO., LTD. SUSTAINABILITY FINANCE FRAMEWORK ELIGIBILITY ASSESSMENT REPORT REVISED 1.0(3) Management of Proceeds
DNV has reviewed and confirmed evidence showing how the Issuer has traced/managed the proceeds fromthe Finance, from the exercise of the right of warrant or loan to the time of disbursement. DNV has
confirmed that the Issuer would allocate the proceeds to the sustainability project appropriately andpromptly. Daiki Axis accounting dept. will manage the fund based on its internal account protocol. Issuer
periodically reviews the outstanding balance of the Finance, means unallocated proceeds from exercise ofright of warrant or loan to the time of disbursement, as cash or cash equivalents, at the end of each
Financial year for disclosure.
Note that, as stated above, DNV provides no assurance regarding the financial performance of the Finance,
the value of any investments in the Finance, or the long-term environmental benefits of the transaction.
Specific aspects of warrant in this Finance are described details below.
<Note> Finance (warrant) specific aspects
Whether Daiki Axis would receive proceeds upon exercise of warrants and its timing will depend on a judgement by thewarrant holder, and also strike price of warrants can be reset. Therefore, the amount of funds to be raised and its timing
is not fixed at this point, and there could be a discrepancy between the expected and actual amount and timing.
If Daiki Axis cannot raise enough funds or there is a shortfall for payment due, Daiki Axis will make up necessary funds byusing loan from this sustainability finance or cash in hand or bank loans among other means. Daiki Axis will apply funds
raised from exercise of warrants on each use of proceeds as each payment is due.

Tracking of proceeds:☒

Sustainability Finance proceeds segregated or tracked by the issuer in a systematic manner☒Disclosure of intended types of temporary investment instruments for unallocated proceeds☐

Other (please specify):

Additional disclosure:☐

Allocations to future investments only☒

Allocations to both existing and future investments☒

Allocation to individual disbursements☐

Allocation to a portfolio of disbursements☐

Disclosure of portfolio balance of unallocated☐

Other (please specify): Refinance only

proceeds

Page 17 of 28

DAIKI AXIS CO., LTD. SUSTAINABILITY FINANCE FRAMEWORK ELIGIBILITY ASSESSMENT REPORT REVISED 1.0(4) ReportingDNV GL has confirmed that the Issuer would report to stakeholders the specific information required by the
GBP, GLP, SBP and related criteria annually in the issuer’s website till planned proceeds are mostly allocated.
These include description of the allocation and management of the proceeds, project lists and their progress,
as well as the associated qualitative and quantitative environmental and social impact for each sustainability
project (project-01~03). As for environmental impact reporting, it considers the reference of the reporting
section ‘Handbook Harmonized Framework for Impact Reporting June 2019, . Details are planned asfollows.

-1- Fund Allocation and management of the proceeds
Fund Allocation and management of the proceeds will be reported till proceeds are mostly allocated(Proceeds from Warrant and loan are distinguished when reporting).
(1) Fund’s amount of the capital investment to the sustainability projects.
(2) The amount of unallocated proceeds.
-2- Project lists and their progress(1) Number of the facilities of eligible projects allocated the proceeds which have completed (location,
name, products information, production capacity considering confidentiality).
(2) Progress of funded eligible project (e.g., progress of construction work, completion date)-3- Environmental and social impact(1) Project-01: Water treatment septic tank (Johkasou) plant construction and operation
Numbers of manufactured/shipping water treatment septic tanks from funded manufacturing facilities
and designed capacity of wastewater (km3/year)(2) Project-02: Wastewater treatment system installation and operation (BOT, BOO)
Information about facilities by being funded (location, capacity, project condition, volume of wastewater
treatment (km3/year))(3) Project-03: Clean drinking water services (Water Kiosk)
Information about facilities by being funded (location, numbers, project condition, volume of drinking
water(km3/year))(4) Project-04: Solar power generation business of development, operation, equipment sales, etc.
Number of power generation facilities for which interconnection work has been completed for eligible
projects for which procurement proceeds have been allocated, a power output of power generation
facilities (kW), an annual amount of electricity generated (kWh), and CO2 emission reductions (tCO2/year), and power output of facilities for which procurement funds have been allocated and sale has
been completed (kW)Note that, Daiki Axis engages DNV as external reviewer to conform its eligibility as Finance with integrity andobjectivity till 1year after project completion. DNV will conduct its assessment and provide independent
opinion.

Page 18 of 28

DAIKI AXIS CO., LTD. SUSTAINABILITY FINANCE FRAMEWORK ELIGIBILITY ASSESSMENT REPORT REVISED 1.0

Use of proceeds reporting:☒

Project-by-project☒

On a project portfolio basis☐

Linkage to individual Finance☐

Other (please specify):☒‘Finance’ financed share of total investment

Information reported:☒

Allocated amounts☒

Other (please specify): Warrant and loan amount and progressing of investment

Frequency:☒

Annual☐Other (please specify):☐

Semi-annual

Impact reporting:☒

Project-by-project☒

On a project portfolio basis☒

Linkage to individual Finance☐

Other (please specify):☐

Semi-annual

Frequency:☒

Annual☐Other (please specify):

Information reported (expected or ex-post): Green benefit☐

GHG Emissions / Savings☒

Other ESG indicators (please specify):☐

Energy Savings

information about funded facilities, volume ofwastewater treatment(km3/year)

Information reported (expected or ex-post): Social benefit☐

Number of beneficiaries☒

Other ESG indicators (please specify): volume of☒Target populations

drinking water (km3/year)

Means of Disclosure☐

Information published in financial report☐

Information published in sustainability report☐

Information published in ad hoc documents☒

Other (please specify): Daiki Axis web site☒

Reporting reviewed (if yes, please specify which parts of the reporting are subject to external review):

Page 19 of 28

DAIKI AXIS CO., LTD. SUSTAINABILITY FINANCE FRAMEWORK ELIGIBILITY ASSESSMENT REPORT REVISED 1.0

Ⅶ Assessment Conclusion
On the basis of the information provided by Daiki Axis and the work undertaken, it is DNV’s opinion thatthe Daiki Axis sustainability finance (warrant and loan) meets the criteria established in the Protocol andthat it is aligned with the stated definition or purpose of sustainability finance (warrant and loan), whichis to “enable capital-raising and investment for new and existing projects with environmental and social
benefits”.

DNV Business Assurance Japan K.K.
28 September 2021

Mark Robinson

Naoki Maeda

Manager, Sustainability Services

Managing Director

DNV – Business Assurance, Australia

DNV Business Assurance Japan K.K.

Masato Kanedome

Tsuyoshi Katori

Project Leader

Assessor

DNV Business Assurance Japan K.K.

DNV Business Assurance Japan K.K.

About DNV
Driven by our purpose of safeguarding life, property and the environment, DNV enables organisations toadvance the safety and sustainability of their business. Combining leading technical and operational
expertise, risk methodology and in-depth industry knowledge, we empower our customers’ decisions andactions with trust and confidence. We continuously invest in research and collaborative innovation to provide
customers and society with operational and technological foresight.
With our origins stretching back to 1864, our reach today is global. Operating in more than 100 countries,
our 16,000 professionals are dedicated to helping customers make the world safer, smarter and greener.

Page 20 of 28

DAIKI AXIS CO., LTD. SUSTAINABILITY FINANCE FRAMEWORK ELIGIBILITY ASSESSMENT REPORT REVISED 1.0

Schedule-1 Daiki Axis Sustainability Finance Projects
Table-1 Daiki Axis Sustainability Finance Nominated Project and Assets
No.

Sustainability Project Portfolio
Water

Project Category

Subcategory

FundedAmount (plan)

01-Indiatreatment
septic Tank

01-2 Sri(Johkasou)

Lanka

Outline- Funding to expansion and new production
facility, and land purchase for Johkasou

plant
01

construction

01-3

and

Bangladesh

operation
01-4 Kenya
Environmental

01-5

Facilities

MyanmarBusiness(Water-related
Infrastructure
Business)02

Water
treatment
septic Tank
(Johkasou)
plant
construction
andIndia,
Bangladesh,
Kenya, Sri
Lanka andMyanmar

Clean drinking water services(Water Kiosk)

Green*Project-01,02,03

Green,Social-sustainable water and-pollution prevention and*Project-03(Decentralized Sewage Treatment Plant)
Product (example)- Johkasou (Decentralized Sewage Treatment

system for avoidance ofmanagement
control

1.07b-JPY-waste water treatment

wastewaterSocialoperation

03

Remarks(Outline, Products, etc.)

Plant)

regional pollution due to
livelihood, industry
wastewater-public water purification

Outlinesystem-Waste water treatment system through BOO
BOT-Affordable basic
infrastructure (clean

0.27b-JPY

drinking water)

Product (example)- Johkasou (Decentralized Sewage Treatment-Access to essential

Plant)

services (health)

Green,Social-Clean drinking watersupplyPage 21 of 28

0.04b-JPY

Outline日本郵船株式会社 グリーン/トランジションボンドフレームワーク&トランジションボンド 2021

No.

Sustainability Project Portfolio

Project Category

Subcategory

FundedAmount (plan)

Remarks(Outline, Products, etc.)-Infrastructure of water supply-chain (including
retail, operation) for clean drinking water using
RO system

Renewable
Energy-related

04

Business(Solar Power
Generation

Solar power generationGreenbusiness of development,- Renewable Energy

Solar power generation

operation, equipment sales,(Energy-derived CO2

business (Onshore)

etc.

reduction)

Business)

Page 22 of 28

0.8b-JPY

Outline- mergers and acquisitions funding for an
operating company engaged in thedevelopment, operation, and equipment
sales of solar power generation business
Installation sites- Approximately 60 projects throughout
Japan (total project output ofapproximately 4,870 kW, as of 2021)

日本郵船株式会社 グリーン/トランジションボンドフレームワーク&トランジションボンド 2021

Schedule-2 Sustainability Finance Eligibility Assessment Protocol
Following check list SF*-1～SF-4 are based on DNV’s Finance eligibility assessment protocol referred to four core components of GBP, GLP and related
criteria. *SF: Sustainability FinanceSF-1 Use of Proceeds
Ref.

Criteria

1aType ofFinanceRequirements

Work Undertaken

DNV Findings

Document reviewed:

The reviewed evidence confirms that the Daiki Axis sustainability financefollowing categories, as defined such as

Daiki Axis sustainability finance(warrant and loan) (hereinafter Finance) falls in the category:

the Green Bond Principles:

Framework (hereinafter Daiki

The Finance must fall in one of the- Sustainability Use of Proceeds Finance- Sustainability Use of Proceeds Revenue
Finance

Axis Framework)

othersDiscussions with Daiki Axis

- ->Daiki Axis execute the finance from the proceed by exercise of right ofmanagement

Finance to the sustainability eligible projects, project evaluation andselection, management of proceeds and reporting based on its Daiki Axis

- Sustainability Project Finance

Framework- Others
1b

Sustainability

The cornerstone of a Finance is theDocument reviewed:

As identified by the Finance project list in Framework, the purpose of the(Green andutilization of the proceeds of the bond- Daiki Axis Framework

Finance is to use the proceeds to eligible projects falling under the following

Social) Project

which should be appropriately described in- Daiki Axis Sustainability

categories as representative project category in GBP, SBP and related

Categories

the legal documentation for the Finance.

Finance public document- Daiki Axis Website- Information on renewableenergy businesses to beacquired through mergers andacquisitions
Discussions with Daiki Axis
management

criteria:

Eligible Criteria-1: sustainable water and wastewater management,
pollution prevention and control

Project-01: Water treatment septic Tank (Johkasou) plant construction andoperation
Project-02: Wastewater business (BOO, BOT)

Eligible Criteria-2: Affordable basic infrastructure (clean drinking
water), Access to essential services (health)

Project-03: Clean drinking water services (Water Kiosk)
Proceeds from Finance will be used as financing or refinance to new/funded
projects and assets.

Eligible Criteria-3: Renewable Energy (Energy-derived CO2 reduction)

Page 23 of 28

日本郵船株式会社 グリーン/トランジションボンドフレームワーク&トランジションボンド 2021

Ref.

Criteria

Requirements

Work Undertaken

DNV Findings
Project-04: Solar power generation business of development, operation,equipment sales, etc.

1c

Green andAll designated Sustainability Project

Social benefits

categories should provide clear greenly andsocially sustainable benefits, which, where
feasible, will be quantified or assessed by
the issuer.

Document reviewed:
Daiki Axis Framework
Daiki Axis website (IR news,
Monthly report of Solar powerbusiness
Discussions with Daiki Axis
management

DNV considers that eligible projects contribute to green and social issues by
providing a wastewater treatment system for avoidance of regional
pollution due to livelihood, industrial wastewater, public water purification
system and clean drinking water supply, which meet the eligibility criteria
described in section 1b. Issuer discloses its environmental and social impact(performance) on its website, including volume of treated wastewater, thevolume of drinking water and manufactured/shipped water treatment
septic tank with quantitative evaluation result as an annual periodical
report. In the execution of another eligible project, the solar power
generation project, it was confirmed that the operation of the power
generation facilities after the completion of the interconnection work andthe sale of the facilities would contribute to the environmental contribution
shown in 1b. These effects will be quantitatively evaluated asenvironmental improvement effects. The number of interconnected power
generation facilities owned by the company, the power output (kW) of thepower generation facilities, the amount of electricity generated per year
(kWh), and the amount of CO2 reduction (t-CO2/year), as well as thepower output (kW) of the facilities, developed and sold will be disclosed inperiodic reports.
DNV assessment concluded that these projects and assets would present a
low risk of environmental and social impact by considering followings.
- Compliance to environmental law and regulations (e.g., Environmental
Impact Assessment)- Communication with local communities
In addition, Projct-03 aligns with the programme of “Jal Jeevan Mission(JJM)” as drinking water infrastructure and services issues according to theCentral Government of India promotion.

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日本郵船株式会社 グリーン/トランジションボンドフレームワーク&トランジションボンド 2021

Ref.

Criteria

Requirements

Work Undertaken

DNV Findings

1dRefinancing

In the event that a proportion of theproceeds may be used for refinancing, it isDocument reviewed:

In case that loan proceeds allocation to the eligible project is preceded

sharerecommended that issuers provide anestimate of the share of financing vs. refinancing, and where appropriate, also

Daiki Axis Framework
Discussions with Daiki Axis
management

warrant, proceeds from warrant partially will be used for repayment forloan. Asset or project, amount of fund as repayment for loan will beclarified and reported in annual report.

clarify which investments or project
portfolios may be refinanced.

SF-2 Process for Project Selection and Evaluation
Ref.

Criteria

Requirements

Work Undertaken

DNV Findings

2aInvestment-

The issuer of a Finance should outline thedecision-making process it follows toDocument reviewed:

As per the Daiki Axis Framework, the issuer has set out the following

decisionprocess

determine the eligibility of projects using
Finance proceeds. This includes, without
limitation:- A process to determine how the projects
fit within the eligible Sustainability (green

Daiki Axis Framework
Daiki Axis internal document(process of project selection)
Discussions with Daiki Axis
management

and social) Project’s categories.

criteria for project selection:
Eligible sustainability Project means:
The nominated 3 sustainability projects described in the Schedule-1, were
evaluated and selected through the appropriate determined process by therelevant sections of the issuer based on its corporate philosophy (corporate
slogan) and mid-term management plan (promotion of ESG management)- The criteria making the projects eligible(refer to the section Ⅰ ‘About Issuer’).

for using the Finance proceeds; andIssuer applies eligibility criteria listed Section Ⅱ (3) and considers the- The environmental and social

negative effect to environment or society based on its ‘Sustainability projectsustainability objectives

selection prerequisites’ described below, as well.
<Sustainability project selection prerequisites>
Compliance to environmental law and regulations (e.g., Environmental
Impact Assessment)
Communication with local communities

Page 25 of 28

日本郵船株式会社 グリーン/トランジションボンドフレームワーク&トランジションボンド 2021

Ref.

Criteria

Requirements

Work Undertaken

DNV Findings

2bIssuer’s

In addition to information disclosed by anissuer on its Finance

Document reviewed:

DNV reviews and notes that issuer demonstrates that issuer intends toenvironmental, social andprocess, criteria and assurances, Financegovernanceinvestors may also take into consideration

framework

the quality of the issuer’s overall
framework and performance regarding
green and social sustainability.

Daiki Axis Framework
Daiki Axis corporate philosophy,
mid-term management plan, etc
Discussions with Daiki Axis
management

contribute environmentally and socially sustainability through Water related
infrastructure business focusing to abroad (China, South-East Asia, India)
through business of Environmental Facilities, based on its mid-term businessplan (promotion of ESG management).
Daiki Axis will be disclosed environmental and social impact performance inits website with qualitative and quantitative result as annual report based on
its framework (reporting section)
Also based on the discussion and document review we had with Daiki Axis,
we found nothing to suggest that Daiki Axis’s sustainability projects and its
framework are not in line with good practice of the industry business inwhich it operates.

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日本郵船株式会社 グリーン/トランジションボンドフレームワーク&トランジションボンド 2021

SF-3 Management of Proceeds
Ref.

Criteria

3a

Tracking
procedure-1

Requirements

Work Undertaken

DNV Findings

The net proceeds of Finance should beDocument reviewed:

The evidence reviewed shows how Daiki Axis plans to trace the Finance’s

credited to a sub-account, moved to a sub-- Daiki Axis Framework

proceeds from the time of exercise of right of warrant or loan to the time of

portfolio or otherwise tracked by the issuer- Daiki Axis internal process

disbursement.

in an appropriate manner and attested to

documents, etc

The full amount of the proceeds from Finance will be deposited into a Daikiby a formal internal process that will be

Discussions with Daiki Axis

Axis's general account, and thereafter managed its internal accountlinked to the issuer’s lending andmanagement

procedure which can identify the project and disbursed in accordance withinvestment operations for Sustainability

the obligations.

Projects.
3b

Tracking
procedure-2

So long as the Finance outstanding, theDocument reviewed:

The evidence reviewed shows that Daiki Axis plans to trace the proceeds

balance of the tracked proceeds should be- Daiki Axis Frameworkfrom the Finance, from the time of exercise of right of warrant or loan toperiodically reduced by amounts matching- Daiki Axis internal process

the time of disbursement and reduce the net balance of proceeds by

eligible sustainability investments madedocuments, etc

amounts in line with the assets as scheduled to sustainability project

until green and social benefit appearance

Discussions with Daiki Axis

appropriately and promptly. At the end of each financial period, theor completion of proceeds allocation.

management

outstanding balance (proceeds which are not financed from time of exerciseof right of warrant or loan) of the Finance) will be reviewed.

3c

Temporaryholdings

Pending such investments orDocument reviewed:

disbursements to eligible Sustainability- Daiki Axis Framework

project appropriately and promptly based on its internal account protocol.

Projects, the issuer should make known to- Daiki Axis internal process

Unallocated proceeds (from exercise of right of warrant and loan to theinvestors the intended types of temporary

documents, etc

investment instruments for the balance ofDiscussions with Daiki Axis

unallocated proceeds.

management

Page 27 of 28

The net proceeds of the Finance will be fully financed to the sustainability

time of disbursement) will be managed as cash or cash equivalents.

日本郵船株式会社 グリーン/トランジションボンドフレームワーク&トランジションボンド 2021

SF-4 Reporting
Ref.

Criteria

4aPeriodical
reporting

Requirements

Work Undertaken

DNV Findings

In addition to reporting on the use ofDocument reviewed:

Daiki Axis will disclose information annually, which includes in its website.

proceeds and the temporary investment of- Daiki Axis Framework

This will include a description of the project, the value of the proceeds

unallocated proceeds, issuers should

Discussions with Daiki Axis

invested, and the associated qualitative and quantitative environmental andprovide at least annually a list of projects

managementsocial impacts.

to which Finance proceeds have been

Others: Daiki Axis website

Daiki Axis plans to disclose the volume of treated wastewater, drinking

allocated including

water and manufactured/shipped water treatment septic tank with

- when possible with regards toquantitative evaluation results as an annual periodical report in its water-

confidentiality and/or competitive

related infrastructure business. About solar power generation business, theconsiderations

number of power generation facilities for which interconnection work has- a brief description of the projects and the

been completed for eligible projects for which procurement proceeds haveamounts disbursed, as well as the

been allocated, the output of power generation facilities (kW), the amount

expected greenly and socially sustainableof electricity generated per year (kWh), and the amount of CO2 reduction

impact.

(t-CO2/year), and the output of facilities for which procurement proceeds
have been allocated and sale has been completed (kW) will be disclosed inperiodic reports.

Page 28 of 28