May 10, 2022

To Whom It May Concern:
Company Name:
Representative:

NAGASE & CO., LTD.
Kenji Asakura,
Representative Director, President
Stock Exchange Listings:
Tokyo (Prime Market) Code 8012
Contact:
Yoshihisa Shimizu,
Executive Officer,
General Manager,
Corporate Management Dept.
Tel:+81-3-3665-3101

Notice Regarding the Issuance of Sustainability Linked Bonds
NAGASE & CO., LTD. has announced plans to issue its first Sustainability Linked Bonds (*1), aiming to contribute
solutions to social and environmental issues through corporate activities. Today, the company submitted an amendedshelf registration statement to the director-general of the Kanto Local Finance Bureau for the issuance of these bonds.
1. Background and Purpose of the Bond Issuance
The NAGASE Group vision of an Ideal NAGASE for 2032, which is the 200th anniversary of the company’s
founding, is to be a business designer that creates a sustainable future. In support of this vision, the company
formulated a five-year Medium-term Management Plan, ACE 2.0, which the company launched in fiscal 2021. In
formulating ACE 2.0, the company reviewed its existing philosophical framework, formulating the SustainabilityBasic Policy as a shared approach to an updated philosophical framework, including its Management Philosophy andVision. The company also identified materialities related to sustainability.
As an entity that operates globally, the NAGASE Group recognizes that addressing climate change is an important
issue to be addressed by the entire group. In January 2022, the group published the NAGASE Group Carbon Neutral
Declaration, a policy aimed at achieving carbon neutrality by 2050.
Specifically, the group has set the goal of achieving carbon neutrality by 2050, achieving functionally zero GHG
emissions (Scope 1 and 2). By 2030, the NAGASE Group aims to reduce Scope 1 and 2 emissions by 46% (comparedwith 2013 levels) and Scope 3 emissions by more than 12.3% (compared with 2020 levels) (*2).
The NAGASE Group believes that achieving the above-mentioned goals will contribute to carbon-neutral andultimately sustainable societies, deciding to issue Sustainability Linked Bonds to support this goal through the use offinancing.
Through the issuance of these bonds, NAGASE will demonstrate its willingness to take a proactive stance towardsustainability, to engage in greater levels of sustainability management, and to contribute to the creation realization ofsustainable societies.

2.Overview of Sustainability Linked Bonds
Term
10 years
Amount10 billion yen
Publication Date
June 2022 or later (scheduled)
KPIs
KPI 1：Greenhouse gas emissions of the group (Scope 1 and 2)
KPI 2：Greenhouse gas emissions of the group (Scope 3)
SPTs (*3)
SPT 1：Reduce the group's greenhouse gas emissions by 46% in FY2030(compared to FY2013) (Scope 1 and 2)
SPT 2：Reduce the group's greenhouse gas emissions by more than 12.3% in
FY2030 (compared to FY2020) (Scope 3)
Bond Characteristics
SPTs will be established as SPT1 and SPT2. If it is confirmed that any of theSPTs have not been achieved as of the judgment date, emission credits(credits/certificates of CO2 reduction value) will be purchased in an amountcorresponding to the achievement status of the SPTs before the redemption ofthe bonds in order to accelerate efforts to address climate change. Whenemission credits are purchased, the name of the credits, the date of transfer,and the amount purchased will be disclosed in the company’s integrated reportor website. As of this time, the company has identified J-Credit, renewableenergy certificates, and non-fossil fuel certificates as candidates. However, thecompany will make a final decision after careful review of the factors
contributing to the non-achievement of the SPTs. If SPT 1 is not achieved, anamount equivalent to 0.10% of the bond issue amount will be purchased. If
SPT 2 is not achieved, an amount equivalent to 0.05% of the bond issue
amount will be purchased. (If neither SPT is achieved, a total amountequivalent to 0.15% will be purchased.)
However, in the event of force majeure, etc., under the emission rights
purchase agreement (e.g., changes in trading system rules and regulations,system failures related to the transfer of emission rights, etc.), the company
will provide public interest incorporated associations, public interest
foundations, international organizations, local government authorized NPOs,
local governments and similar organizations that are engaged in environmental
conservation activities with an amount equivalent to the amount of the bonds(for the amount of donation based on the achievement of SPTs, please refer tothe description in the emission credits section above). The company will makea final decision of which institution to donate to after careful review of thefactors contributing to the non-achievement of the SPTs.
Lead Manager
Structuring Agent (*4)

Nomura Securities Co., Ltd. (administrator), Daiwa Securities Co., Ltd.,
Mizuho Securities Co., Ltd.
Nomura Securities Co., Ltd.

3.Conformance of Sustainability Linked Bonds
The company received a second opinion about the bonds from Rating and Investment Information, Inc. regarding theconformity of these bonds with the Sustainability-Linked Bond Principles of the International Capital Market
Association (SLBP) 2020, the reliability and environment of this framework, and the beneficial impact on society.
・Second opinion from Rating and Investment Information, Inc.
https://www.nagase.co.jp/english/sustainability/environment/climate-change/
・The NAGASE Sustainability Linked Bond Framework
https://www.nagase.co.jp/english/sustainability/environment/climate-change/(*1) A Sustainability Linked Bond is a bond whose terms vary depending on whether it meets predeterminedsustainability and/or ESG objectives. The issuer of a Sustainability Linked Bond commits to improving futuresustainability outcomes within an initially defined time horizon.
Specifically, the instrument is based on the issuer's assessment of future performance using predetermined key
performance indicators (KPIs) and sustainability performance targets (SPTs). The terms of the bond change dependingon whether the SPTs, established as target figures with respect to the KPIs, are achieved.
(*2) Scope 1, 2, and 3 refer to the categories of greenhouse gas emissions defined in the GHG Protocol, which wasdeveloped as an international standard for calculating and reporting greenhouse gas emissions. The company willconsider updating the target values for Scope 3 based on future dialogue with entities involved in the supply chain.
Scope 1: Direct GHG emissions by the business itself
Scope 2: Indirect emissions resulting from the use of electricity, heat, and steam supplied by other companies
Scope 3: Indirect emissions other than Scope 1 and 2 (emissions by other companies related to the activities of thebusiness)(*3) Sustainability performance targets (SPTs) are targets based on the management strategy of the issuer whodetermines the terms of issuance of Sustainability Linked Bonds.
(*4) Structuring agents are entities that provide support for the execution of Sustainability Linked Bonds through thedevelopment of the Sustainability Linked Bond framework and advice on obtaining second-party opinions.

(Reference: Value Propositions and Materialities to Stakeholders)(Reference materials)
・Medium-term Management Plan ACE 2.0
https://www.nagase.co.jp/english/company/management-policy/
・NAGASE Group Carbon Neutral Declaration
https://www.nagase.co.jp/english/assetfiles/tekijikaiji/20220125_1.pdf
End