Sumitomo Corporation (2022 Green Bond)
Type of Engagement: Annual Review
Date: February 7, 2023
Engagement Team:
Shigeru Ogawa, shigeru.ogawa@sustainalytics.com, (+81) 3 4520 2193
Kosuke Kanematsu, kosuke.kanematsu@sustainalytics.com, (+81) 3 4571 2277

Introduction
In May 2022, Sumitomo Corporation issued a green bond aimed at financing projects related to Renewable
Energy, Environmentally Sustainable Management of Living Natural Resources and Land Use, Clean
Transportation, and Energy Efficiency (JPY 20 billion 10-Year Green Bond, hereinafter the “2022 Green Bond”).
As of December 31, 2022, the proceeds were allocated to multiple projects related to Renewable Energy,
Environmentally Sustainable Management of Living Natural Resources and Land Use, Clean Transportation,and Energy Efficiency. In January 2023, Sumitomo Corporation engaged Sustainalytics to review the project
funded through the 2022 Green Bond and assess whether the projects met the Use of Proceeds criteria andthe Reporting commitments outlined in the Sumitomo Corporation Green Finance Framework (the“Framework”). 1

Evaluation Criteria
Sustainalytics evaluated the projects funded with proceeds from May 2022 to December 2022 based onwhether the project:1.
2.

Met the Use of Proceeds and Eligibility Criteria outlined in the Framework; andReported on the impact indicators for each Use of Proceeds criteria outlined in the Framework.

Table 1 lists the Eligibility Criteria and associated impact indicators for the Use of Proceeds category towhich the proceeds were allocated.
Table 1: Use of Proceeds, Eligibility Criteria, and associated impact indicators
Use of Proceeds

Eligibility Criteria

Impact indicators

Renewable Energy

Funds
forinvestment,development,construction, operation, and maintenance of thefollowing renewable energy projects.

▪ Environmental impact such as
achieved reduction in CO2emissions (t-CO2)▪ Power generation capacity(MW)▪ Wind power generation▪ Solar power generation▪ Geothermal power generation (Directemissions less than 100g-CO2/kWh)EnvironmentallySustainable
Management ofLiving Natural
Resources andLand Use
CleanTransportation

1 Sumitomo Corporation Green Finance Framework

In the case of investments in corporations, only
corporations that specialize in the renewableenergy/clean energy business or have at least
90% of their sales related to renewableenergy/clean energy are eligible.
Acquisition of forests that have obtained thefollowing certification▪ FSC (Forestcertification

StewardshipCouncil®)Funds required for the following railway-related
projects

is available at:https://www.sumitomocorp.com/jp/-/media/Files/hq/sustainability/greenfinance/framework.pdf?la=en© Sustainalytics 2023

▪ Forest area acquired (ha)▪ Number of stations▪ Route distance (km)Annual Review

Sumitomo Corporation▪ Operation

Energy Efficiency

and maintenance of urban
passenger railway projects
Funds required for investment in base station
construction and operation necessary forproviding base station sharing services
centered on 5G to mobileOperators▪ Case study introduction on 5Gbase station installation facility* It is expected to have the effect of reducing
environmental load through equipment sharing.
In addition, compared to 4G, 5G communication
technology is said to be more energy efficient,using less energy per traffic unit.

Issuing Entity’s Responsibility
Sumitomo Corporation is responsible for providing accurate information and documentation relating to thedetails of the projects that have been funded, including description of projects, amounts allocated, and projectimpact.

Independence and Quality Control
Sustainalytics, a leading provider of ESG and corporate governance research and ratings to investors,
conducted the verification of Sumitomo Corporation’s 2022 Green Bond Use of Proceeds. The work
undertaken as part of this engagement included collection of documentation from Sumitomo Corporation
employees and review of documentation to confirm the conformance with the Framework.
Sustainalytics has relied on the information and the facts presented by Sumitomo Corporation with respect
to the projects in the eligible categories. Sustainalytics is not responsible nor shall it be held liable if any of
the opinions, findings, or conclusions it has set forth herein are not correct due to incorrect or incomplete data
provided by Sumitomo Corporation.
Sustainalytics made all efforts to ensure the highest quality and rigor during its assessment process andenlisted its Sustainability Bonds Review Committee to provide oversight over the assessment of the review.

Conclusion
Based on the limited assurance procedures conducted,2 nothing has come to Sustainalytics’ attention thatcauses us to believe that, in all material respects, the reviewed bond projects, funded through proceeds ofSumitomo Corporation’s 2022 Green Bond, are not in conformance with the Use of Proceeds and Reporting
Criteria outlined in the Sumitomo Corporation Green Finance Framework. Sumitomo Corporation has
disclosed to Sustainalytics that the proceeds of the 2022 Green Bond were fully allocated as at December 31,2022.

2 Sustainalytics limited assurance process includes reviewing the documentation relating to the details of the projects that have been funded, including

description of projects, and project impact, which were provided by the Issuer. The Issuer is responsible for providing accurate information. Sustainalytics
has not conducted on-site visits to projects.
2Annual ReviewSumitomo Corporation
Detailed Findings
Table 2: Detailed Findings
Evaluation
Criteria

Procedure Performed

Factual Findings

Use ofProceeds
Criteria

Verification of the projects funded by the2022 Green Bond from May 2022 toDecember 2022 to determine if the projects
were aligned with the Use of Proceeds
Criteria outlined in the Sumitomo
Corporation Green Finance Framework andabove in Table 1.

All projects reviewed
complied with the Use ofProceeds criteria.

ReportingCriteria

Verification of the projects funded by the2022 Green Bond from May 2022 toDecember 2022 to determine if the impactof the projects was reported in line with theimpact indicators outlined in the Sumitomo
Corporation Green Finance Framework andabove in Table 1.

All projects reviewed
reported on impact
indicators per Use ofProceeds criteria.

Error orExceptions
Identified
NoneNone3

Annual Review

Sumitomo Corporation

Appendix
Appendix 1: Allocation of Green Bond Proceeds
Use of Proceeds
Category
Renewable
EnergyEnvironmentallySustainable
Management ofLiving Natural
Resources andLand Use
Clean
Transportation
Energy Efficiency

Overview of Project

Net Bond
Proceeds
Allocation(Billion JPY)

▪ Offshore wind power generation in Europe▪ Onshore wind power generation in Japan▪ Geothermal power generation in Southeast Asia

5.2

▪ Acquisition of FSC (Forest Stewardship Council®) certified
forests through Summit Forests New Zealand Ltd, thewholly-owned subsidiary of Sumitomo Corporation

5.1▪ Operation and maintenance of urban passenger railway inSoutheast Asia
▪ Investment in Sharing Design Inc., which provides basestation sharing services centred on 5G to mobile operators

8.2
1.5

Total Net Bond Proceeds Allocated:

20

Total Net Bond Proceeds Unallocated:

0Total Net Bond Proceeds from Green Bond issuance:

20Appendix 2: List of impact indicators3Use of Proceeds Category
Renewable Energy
Environmentally Sustainable Managementof Living Natural Resources and Land Use
Clean Transportation

Energy Efficiency

3Impact Indicators▪ Environmental impact such as achieved reduction in
CO2 emissions (t-CO2): 427,744 t-CO2▪ Power generation capacity (MW): 475 MW▪ Forest area acquired (ha): 8,405 ha▪ Number of stations: 20▪ Route distance (km): Approximately 20 km▪ Case study: Provided base station sharing services,
mainly 5G, to mobile carriers. (Has already launchedservices in several areas in Japan including the Shibuyaarea, Shimbashi, Shinjuku, etc.)

Impact Reporting by Sumitomo Corporation is available at: https://www.sumitomocorp.com/en/jp/sustainability/greenfinance4Annual Review

Sumitomo CorporationDisclaimer
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version shall prevail.

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Sumitomo Corporation

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