November 2021

Renesas Electronics
Corporation

Green Bond Framework[Date]

Renesas Electronics Corporation

CONTENTS
1

2

INTRODUCTION ............................................................................................................................... 2
1.1

COMPANY OVERVIEW ................................................................................................................................................... 2

1.2

OUR SUSTAINABILITY APPROACH .................................................................................................................................. 2

GREEN BOND FRAMEWORK OVERVIEW ............................................................................................ 4
2.1

USE OF PROCEEDS....................................................................................................................................................... 5

2.2

PROCESS FOR PROJECT EVALUATION AND SELECTION.................................................................................................. 12

2.3

MANAGEMENT OF PROCEEDS ...................................................................................................................................... 12

2.4

REPORTING ................................................................................................................................................................ 13

2.4.1

ALLOCATION REPORTING ................................................................................................................................... 13

2.4.2

IMPACT REPORTING ........................................................................................................................................... 13

2.5

3

EXTERNAL REVIEW ..................................................................................................................................................... 13

2.5.1

SECOND PARTY OPINION (PRE-ISSUANCE) .......................................................................................................... 13

2.5.2

VERIFICATION (POST-ISSUANCE)......................................................................................................................... 13

APPENDIX .................................................................................................................................... 14

Page 1Green Bond Framework

1 INTRODUCTION
1.1 COMPANY OVERVIEW

Renesas Electronics Corporations (“Renesas”, “Company”) is continuously striving to drive innovation
through product solutions in the automotive, industrial, infrastructure, and IoT markets. Our embedded
design innovation with complete semiconductor solutions enable billions of connected, intelligent devices toenhance the way people work and live. Following the smooth integration of Intersil, IDT, and most recently
Dialog, Renesas is home to approximately 21,000 employees all across the globe and in more than 30
countries, together composing 1 global team.
Our mission, is to develop a safer, healthier, greener, and smarter world by providing intelligence to our four
focus growth segments: Automotive, Industrial, Infrastructure, and IoT. We believe it is our responsibility tocontribute to the creation of a better society, and strive to make positive impacts through our products andsolutions.

1.2 OUR SUSTAINABILITY APPROACH

Sustainability is at the heart of what we do. We are committed to developing products and solutions that
contribute to a long-term sustainable society. We support the Sustainable Development Goals (SDGs) set
by the United Nations that highlight the biggest issues faced by the world today. Among the 17 SDGs set by
the United Nations, Renesas is taking action against 13, making contributions through our existing programs
to support these goals in order to achieve a better and more sustainable future. Included in ourenvironmental impact goal, is Renesas' commitment to reduce greenhouse gas emissions by 60% from2013 levels by 2030 and become completely Carbon Neutral by 2050, recently submitting a commitment
letter to the Science Based Targets Initiative. Furthermore, we are also committed to making positive
contributions in local communities and around the globe, through programs such as The Renesas University
Program and promotion of women in engineering. Through these efforts, we have been commemorated bybeing named one of the companies listed in the SOMPO Sustainability Index as well as S&P/JPX Carbon
Efficient Index, which focuses on overweighting companies that have a lower level of carbon emissions perunit of revenue. Renesas also became a signatory of the United Nations Global Compact.

Renesas' strengths can be broken down into 3 main assets, products and solutions, innovative technology,
and people, each drivers of Renesas' mission towards sustainability.

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PRODUCTS AND SOLUTIONS/INNOVATIVE TECHNOLOGY
Sustainability is at the heart of our products and solutions, and our unwavering commitment to meetcustomer demand, invest in research and development, and provide the highest standard of quality and lowpower sustainable products that contribute to climate change adaptation and transition to a low carbon
economy, enables us to serve customers worldwide. We create value by providing innovative anddifferentiated energy-efficient products that help our customers build systems with very high power
efficiency, reducing the carbon and environmental footprint of businesses. Our innovative strengths are also
represented by our relentless drive to make our future society safer and more secure, by addressing
system-level safety and security concerns held by our customers. This provides them with greater peace ofmind for a wide range of applications, from connected and automated vehicles, factories, and robotics tosmart home appliances. We will carry on investing in technology research and development to provide
innovative technologies and solutions that ultimately make the world more sustainable.

OUR PEOPLE
For Renesas, our people are our greatest assets. We firmly believe growing our people will ultimately growour business, and our ambitious goals cannot be achieved without the talent and dedication of our people.
With this is mind, we introduced the concept of the Renesas Culture, a guideline of conduct for all Renesas
Group employees that consist of 5 key elements: “Transparent, Agile, Global, Innovative andEntrepreneurial.” These 5 elements underpin everything we do at Renesas, from helping empower ourcustomers in reducing global energy use, to driving prosperity all around the world. Renesas is also
recognized as a labor and human rights leader, aiming to drive diversity and inclusion throughout ourorganization and leadership positions.
In terms of employees, Renesas also places large emphasis on diversity. We actively stress improvement of
our work environment and foster a corporate culture that accepts and is inclusive of one another, shown by
our many policies such as the policy for board diversity. Renesas, as a global company, is known for its
diverse human resources and values, be it nationality, race, philosophy, culture, language, gender, and age,
operating in over 30 countries around the world. Moving forward, Renesas will maximize individual abilities
by creating an environment in which our diverse workforce with different personalities and values can fully
demonstrate their strengths, enhancing our development system so employees can thrive. Through these
efforts, Renesas has been made part of the MSCI Japan Empowering Women Index.

Going forward, we expect eachline of business to grow its
revenue and profit by continuing
to make investments in people
and technology to sustain
innovation. These investments
will drive the company's future
prospects and lay thefoundations for prosperous,
long term growth, contributing toa more environmentallybalanced and sustainable
society.

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2 GREEN BOND FRAMEWORK OVERVIEWThis Green Bond Framework (“Framework”) addresses the four core components and key recommendations(shown below) of the International Capital Markets Association (ICMA) Green Bond Principles (2021) (“thePrinciples”). These principles and guidelines are voluntary process guidelines for best practices whenissuing Green Bonds.
Core Components:• Use of Proceeds• Process for Project Evaluation and Selection• Management of Proceeds• Reporting
Key Recommendations:• Framework• External Review
Sustainalytics, a global leader in environmental, social and corporate governance research and ratings has
provided Second Party Opinions on the Framework.
Renesas will, where possible, adhere to best practices in the market and will review the Framework’salignment to updated versions of the ICMA Principles as and when they are released. As such, thisFramework may be updated and amended from time to time.

Page 4

Renesas Electronics Corporation

2.1 USE OF PROCEEDSINTRODUCTION
Renesas' Products Help Make the World More Energy Efficient
At Renesas, we aspire to be the world’s leading semiconductor company, which also means developing
sustainable products and solutions that benefits all humankind. We want to build a future where our products
and solutions help make lives easier and create a better world for all of us. To make everything intelligent
and connected, high computing performance plays a key role. We believe that energy efficiency and robust
safety and security goes even further to make our products and our customers’ systems sustainable, which
ultimately contributes to realizing a greener society.
Energy-Efficient Products and Solutions
As the industries addressing CASE (Connected, Autonomous, Shared & Services, Electric) and DX (digitaltransformation) continue to develop vigorously, energy-efficient embedded processors play a key role inachieving power efficiency for a vast range of verticals, including automotive, industrial, infrastructure and
IoT. We recognize that the energy demand of our products contributes to the global environmental impact oftechnology. Renesas’ embedded processors, analog and power products portfolio can be effectively
combined to provide our customers with integrated solutions that help their systems achieve the goals ofenergy efficiency, reliability and reduced bill of materials (BOM) cost.
Renesas' Products Enable Customers to Build More Energy-Efficient Systems
At Renesas, we provide devices that contribute to making our customers’ electronic equipment and systems
energy efficient. Our products include devices that offer extremely low power consumption themselves anddevices that contribute to making the customers’ systems energy efficient through adoption of such devices.
By actively developing these devices, our products contribute to a more sustainable society.
Alleviation of Environmental Impacts
In addition to making contributions through the development of sustainable products and solutions, Renesas
also makes efforts to reduce negative impacts made through our own business activities. Waste and water
management as well as greenhouse gas emissions are aspects we place large importance on, and there aremany policies and targets set in place to alleviate such environmental impacts.

Page 5Green Bond Framework
Below is a list of the green application domains Renesas wants to increase its investments in.

Renesas intends to allocate an amount equal to the net proceeds from the sale of any Green Bonds tofinance or refinance, in whole or in part, one or more, and new or existing Eligible Green Projects.
This Framework allows Renesas to allocate the net proceeds from the issuance of Green Bonds to Eligible
Green Projects prior to the issue date of the Green Bond (in the case of operating expenditures, during the
36 months prior to the issue date of a Green Bond) or after the issue date of the Green Bond.

ELIGIBLE GREEN PROJECTSEligible Green Categories

Use of Proceeds

Clean Transportation

1. Smart Electric Vehicles Solutions
Electric Vehicles runs on electricity reducing CO2 emission
2. Smart Autonomous Drive Solutions
AD and ADAS not only reduces energy consumption, but also protects
driver against potential accidents

Energy Efficiency

3. Smart Data Center Solutions
Next generation data centers, with the transition from DDR4 to DDR5 ,increases bandwidth as well as energy efficiency
4. Smart Cellular Solutions
5G technology allows for faster connections and more devices to beconnected, all while increasing energy efficiency
5. Smart Society Solutions
Renesas' various solutions contritute to reduction in CO2 emission andenergy consumption in a variety of applications from industrial sectors,
renewable energy to home appliances and IoT devices
6. Renesas’s Green Devices and Technology
Renesas's various product portfolio and technology contribute to lessenergy consumption and development of eco-friendly products

Renewable Energy/
Sustainable water andwaste water management

7. Projects related to alleviating environmental impacts through ourbusiness activities• Reduction of Scope 2 Green House Gas emissions through purchase ofGreen Electricity, On-site and off-site solar energy projects, energy
efficiency measures, including new construction and refurbishment of
manufacturing facilities• Reduction of total withdrawal of water through improvement in water
recycling projects

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UN SDGs

7 9 13Renesas Electronics Corporation
1. Smart Electric Vehicles Solutions
It is predicted that by 2050, 21% of the number of vehicles sold (0.13 billion cars) and 16% of vehicles
owned around the world (2.1 billion vehicles) will be battery powered electric vehicles (BEVs)/fuel-cellvehicles (FCVs). This is forecasted to result in reducing CO2 emission by 1.4 billion tons. Through the wide
adoption of electrified vehicles (xEVs), Renesas’ products will contribute to the overall reduction of CO2
emissions (1).
xEVs are becoming increasingly popular with more restrictions being placed on vehicle CO2 emissions, as ameasure to deal with global warming and achieving a “sustainable society” that is environmentally friendly,
safe and easy to live on. It is estimated that EV and PHEV could reduce GHG (Green House Gas) emission
by 67% and 50% against traditional gasoline/diesel cars, respectively (2), and Renesas offers a wide rangeof solutions and evaluation kits to help accelerate xEV advancements with better power efficiency.
Renesas offers solutions and evaluation kits, more specifically semiconductors such as microcontroller,
analog, and power semiconductors that is used to manufacture and run xEVs. An example of this is
Renesas’ Automotive Battery Management System (BMS), which is designed to meet almost any safety,
reliability and performance requirements of next-generation EV applications. It features Renesas’ MCU,
automotive-grade multi-cell Li-ion battery manager and power management IC (PMIC) that maximizes
driving range and battery life for hybrid and electrified vehicles.
Another example is the inverter, which plays a key role in converting direct current (DC) power to alternating
currents, and sending out the optimum current to the motor whose rotation speed varies according to driving
conditions. Our xEV Inverter Reference Solutions, which coverts DC power to AC power and maximizes
HEV/EV motor performance, offers superior power efficiency and 99% maximum inverter efficiency (3).
(1) https://www.renesas.com/us/en/about/company/sustainability/products-and-solutions(2) https://afdc.energy.gov/vehicles/electric_emissions.html#wheel(3) https://www.renesas.com/us/en/application/winning-combinations-automotive/xev-inverter-reference-solution

2. Smart Autonomous Drive Solutions
Autonomous driving or “AD”, and Advanced driver assistance system “ADAS”, is the future of vehicletransportation, and is predicted to dynamically change the automobile market. AD, as the name implies,
refers to autonomous driving, where the vehicle takes control of movement and removes the need forpassengers to actually drive the vehicle. ADAS refers to various systems that help as well as protect thedriver, by avoiding accidents and insuring safety. AD and ADAS also contributes to reduction of energy
consumption and CO2 emission as a tool for promoting eco-driving by assisting the driver in moving the car
more efficiently, optimizing the use of engine and battery power (1)(2).
AD and ADAS uses a combination of sensors and cameras to interpret its surroundings (Sensing),
processes and analyzes those data (Computing) and controls the vehicle to move appropriately based on its
computation (Controlling). Driver and occupant monitoring systems also play a key role, as it supports thedriver by providing feedback and ensuring optimal driving.
Renesas’ processor line acts as a platform for safe cognitive computing, contributing to sensing anddecision-making, as well as body control and infotainment towards level 3 and 4autonomous driving. Morespecifically, the RH850 microcontroller as well as the R-CAR SoC not only analyses and computes visual
data detected by sensors, but it also makes up an electronic control unit (ECU) that controls
steering/acceleration of the vehicle. Renesas’ processors also support infotainment solutions and high-end
cockpits that feed information to the driver through displays. Renesas handles analog semiconductors used
to power these systems, in addition to the processors and sensors mentioned previously, allowing for 67%

Page 7Green Bond Framework
reduction in power consumption of radar MMICs as an example. Overall, AD and ADAS aids drivers in
optimizing their vehicles in terms of engine and battery usage, and Renesas offers a wide range of productsthat act as a back bone for these systems to operate.
(1)(2)

https://css.umich.edu/factsheets/autonomous-vehicles-factsheet"10 Recommendations for Eco-Driving" Revised - ECCJ / Asia Energy Efficiency and Conservation Collaboration Center

3. Smart Data Center Solutions
As digitalization takes over and the sheer amount of data continues to increase in size, the role of data
centers become more and more important. Additionally hyper scale customers, enterprises that require alarge amount of data storage, have greatly contributed to the increase in demand for data centers. As thesedata centers increase in size and amount, it becomes increasingly important for these data centers to be run
as efficiently as possible, with reports showing that global data center electricity demand in 2019 was around
200 TWh, or around 0.8% of global final electricity demand (1).
Renesas leads the industry with its high-quality memory interface chips and timing devices used for data
centers. Through provision of these solutions, it is enabling the transition from DDR4 to DDR5, the newgeneration of data centers that not only increases bandwidth, but also improves bandwidth power efficiency
by 16% (2). In addition, the Innovative Optical and Wireless Network (IOWN) concept, a cutting edge
communication infrastructure that uses photonics and computing technology, can massively reduce energy
consumption used in data centers(3). Overall, Renesas is providing key solutions to lead the transition
towards a newer generation of data centers that help reduce energy consumption and contribute to a moresustainable environment.
(1)
(2)
(3)

https://www.iea.org/reports/data-centres-and-data-transmission-networks
https://www.renesas.com/us/en/about/press-room/renesas-introduces-ddr5-data-buffer-high-performance-server-and-cloud-serviceapplications
https://iowngf.org/

4. Smart Cellular Solutions
5G is the next generation wireless network technology, which compared to the previous 4G network, offers
faster connections and allows for more devices to be connected at a time. With experts predicting it could be
20 times faster than previous generations, 5G has the potential to change the way people live and work(1).
Similarly, it could also hold positive implications on climate change, due to its ability to support companies
and industries in implementing the most efficient and flexible allocation of resources, through computation
and AI analysis. Furthermore, it optimizes data transmission efficiency that reduces the amount of CO2
emission per data transferred, with studies showing 5G technologies allow a hundred times more traffic to
be carried, without increasing the total energy consumption of the network (2). In particular, in the shift from
5G FR1 (up to 6GHz) to 5G FR2 (mmWave frequencies from 24 to 40 GHz), the shift of the key
beamforming technology enables the transmission and reception of radio waves with higher power
efficiency.
Renesas offers a complete portfolio of industry-leading products for 4G and 5G infrastructure, and its highly
integrated, complete mmWave beamformer solutions integrate digitally controlled phase shifters, step
attenuators, PAs, LNAs, and T/R switches. They not only offer best-in-class RF performance, but also
provides reduction in overall energy consumption. Other key solutions from Renesas are Timing, ClockDistribution, and synchronization products which improve performance and power efficiency in 5G networks,
while also simplifying the physical implementation, one of the many projects supported by governmental
authorities for 5G and post 5G infrastructure development. (Post 5G Report by Ministry of Economy, Trade

Page 8Renesas Electronics Corporation
and Industry) Renesas’ 5G technology has been highly appraised, with Renesas being selected as anational project outsourcing company by NEDO (New Energy and Industrial Technology Development
Organization) in their post-5G project (P20017). Overall, Renesas offers products and solutions that are bestin the industry regarding performance and energy efficiency, assisting the transition to the moreenvironment-friendly 5G FR2 network.
(1)(2)

https://bipartisanpolicy.org/blog/cellular-data-and-digital-divide/
https://eujournal.org/index.php/esj/article/view/13918

5. Smart Society Solutions
The solutions that Renesas provides through its semiconductors and sensor solutions not only increases
energy efficiency of each product, but can also enhance performance of end applications and systems as
whole, contributing to reduction in CO2 emission and energy consumption, as well as improvement in thewell-being of people. Our MCU/MPU/SoC solutions, sensors, analog and power semiconductors is used in avariety of applications from industrial sectors, renewable energy to home appliances and IoT devices.
Below are illustrative examples of how we contribute to the realization of an energy efficient and smart
society that improves and simplifies people's lives.
Renewable Energy – Wind power generation is an energy source that has positive impacts financially aswell as environmentally due to its low cost. Regarding wind power generation systems, energy losses areinevitable as the electricity generated is converted from DC to AC when transmitting through the inverter
circuit. A majority of this power loss is related to the power devices, and thus minimizing power loss of IGBT
directly translates to the energy efficiency of user systems. Renesas’ IGBT, which utilizes our low-power
construction expertise, allows for more than 30% reduction in power loss and increases energy efficiency ofall systems (1).
Building automation - Building automation plays a large role in sustainability, as buildings and construction
are responsible for approximately 28% of all carbon emissions in the world, when including indirectemissions from electricity consumption(2). Building automation is realized by measuring light, humidity, andtemperature using sensors, and using those information to control HVACs and lighting equipment to
optimize energy efficiency. An example is the Air Quality VOC Sensor, which detects subtle changes in
specific gases, capable of preventing unexpected spikes in emission (3). Renesas offers sensors andmicrocontrollers needed to control and operate such automations, leading the movement towards realizationof these technologies.
Factory automation - We are making contributions in the industrial sector as well, where digitalization andsmartification is now implemented, and demand towards end point computing for factory automation isincreasing. Renesas' AI technology designed for factories, adds processing capabilities to MCU/MPUs andachieves the same processing power as high-end AI chips using only a few watts of electricity in theprocess. Our latest RZ/V microprocessor series could reduce power consumption by 80% compared to ourprevious generations. Also, studies have shown that factory automation could lead to as high as 30%
reduction in overall energy consumption, through increase in efficiency of operations according to typical FA
OEM calculations.
IoT, home appliance - Thanks to IoT, home appliances and industrial machinery are attaining greater
functionality from network connectivity and human machine interface (HMI) enhancements. This addedfunctionality also leads to greater energy efficiency, which could be seen in technology like air conditioners
with inverters included in them, which have 58% less power consumption compared to air conditioners
without. Highly efficient motor control is also required to meet worldwide energy-saving trends among home
appliances, and Renesas' products and solutions meet these demands as well. Renesas offers optimized

Page 9Green Bond Framework
products and solutions for a wide range of consumer and industrial fields, including air conditioners, washingmachines, refrigerators, dishwashers and service robots to meet today’s demands. An example is the RL78,
RX, and RA products from Renesas' MCU portfolio, which achieve 30% less electricity consumption
compared to past products.
Overall, Renesas provides a diverse range of products and solutions that help achieve the next generationof technology that is more energy efficient, environmentally friendly and simplifies as well as improve ourlives and well-being.
(1)
(2)
(3)

https://www.renesas.com/jp/en/about/press-room/renesas-electronics-introduces-8th-generation-igbts-improve-system-power-efficiencythrough-industry
https://www.iea.org/reports/tracking-buildings-2020
https://www.renesas.com/jp/en/about/press-room/idt-expands-its-flagship-integrated-voc-gas-sensor-line-solutions-indoor-air-qualityapplications

6. Renesas’ Green Devices and Technology
For a long time Renesas has been a world-leading supplier of low-power microprocessors andmicrocontrollers, and recently has expanded its power-efficient analog and power portfolio through theacquisitions of Intersil, IDT and Dialog. Achieving high energy efficiency in our products is a principal goal ineach step of our research and development, as well as design processes.
Illustrated below are few examples of the many initiatives we have taken, in order to develop such green
devices and technology.
Renesas Green Device - At Renesas, we promote Eco-Product Initiatives as one pillar of our environmental
activities. Through this initiative we provide environmentally-conscious semiconductors throughout the
product lifecycle, from procurement and usage, to disposal. To create such eco-friendly products, weevaluate our products in eight categories such as safety and power conservation, indexing the results forcomparison to previous generations of products. Products that have been evaluated to exceed a certain
level of environmental performance as a result of these assessments, are certified as Renesas Green
Devices and are disclosed both internally and externally.
SOTB process technology - Renesas’ proprietary technology, SOTB process technology, allows for both low
active and standby currents, reducing the amount of energy required by 80% compared to prior MCUs whilerunning, and 50% while on standby. While traditional MCUs require an outside energy source such asbatteries, the SOTB built in controllers can run solely on renewable energy, allowing for development ofmaintenance-free IoT equipment and other energy harvesting solutions.

7. Projects related to alleviating environmental impacts through our business activities
Part of the proceeds from the green bond will be invested in several projects aimed at reducing the negative
effects that our business activities have on the environment:••

Reduction of Scope 2 Green House Gas emissions through purchase of Green Electricity, On-site andoff-site solar energy projects, energy efficiency measures, including new construction andrefurbishment of manufacturing facilities
Reduction of total withdrawal of water through improvement in water recycling projects

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EXCLUSION CRITERIAAn amount equivalent to the net proceeds of Green Bond issuance will not be used to finance projects that
contribute to or support any of the followings areas.
•••

Production or transaction relating to alcohol, gambling, tobacco, weapon, firearm, nuclear power,
pornography or genetically modified food
Production or transaction that involve forced labor and/or child labor
Business or activities that are deemed illegal under local laws or regulations, bribery, blackmail,conversion, or other conduct considered inappropriate

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2.2 PROCESS FOR PROJECT EVALUATION AND SELECTION

Projects financed and/or refinanced through this Framework are evaluated and selected based oncompliance with the eligibility criteria set above, aligned with Renesas’ strategic sustainability objectives andwith applicable national and international environmental standards and regulations, to ensure stringent
management of any potential negative environmental impacts.
The Eligible Green Projects candidates were proposed by the Sustainability Promotion Office, Chief
Technology Officer Office, Corporate Strategy & Finance Division and Environment Promotion Department,
and afterwards Automotive Solution Business Unit / IoT and Infrastructure Business Unit Management,
Sustainability Promotion Office, and our Chief Technology Officer shall be responsible for the assessment
and selection of the Eligible Green Project. Our Chief Financial Officer will make the final decision on project
selection.
In addition, all projects with funding allocated from the issuance proceeds will be reviewed and tracked by
the group, which include the parties within the Company that were not involved in the selection process, atleast once a year until the maturity of the Green Bonds, to ensure the ongoing eligibility of selected Eligible
Green Projects and their environmental impact.

RISK MANAGEMENT FOR ENVIRONMENTAL AND SOCIAL RISKS
Renesas also applies risk management measures in its capital allocation decisions which are supported by
a company-wide planning, reporting and controlling system. Responsibilities surrounding Renesas’sustainability activities and risk management lies with the Chief Executive Officer. Activities and issues
surrounding sustainability as well as environmental and social risks is periodically reported to the Board of
Directors through Corporate Officers and the Sustainability Promotion Office nominated by the Chief
Executive Officer. The Sustainability Promotion Office was established as a direct organization under the
Chief Executive Officer in order to promote sustainability activities across the entire Group. The risks is
identified independently within the Company and reported to the Internal Control Promotion Committee,
formed by Chief Executive Officer, Chief Financial Officer, Chief Legal Officer, Internal Audit Office Manager
and Internal Audit & Supervisory Board Member.

2.3 MANAGEMENT OF PROCEEDS

Green Bonds are administered by the Renesas Treasury team. Renesas will at all times keep and monitor aseparate register of eligible projects and strive over time to achieve a level of allocation for the Eligible
Green Project which, after adjustments for intervening circumstances (including but not limited to, sales andrepayments) matches or exceeds the balance of an amount equal to the net proceeds from its outstanding
Green Bonds. Additional Eligible Green Projects will be added to our Eligible Green Project Portfolio to theextent required to ensure that an amount equal to the net proceeds from outstanding Green Bonds will beallocated to Eligible Green Projects, until the maturity of the bonds.
Pending allocation of the net proceeds of a green bond to finance Eligible Green Projects (including theamounts Renesas allocates to Eligible Green Projects using other funding source), the net proceeds will be
managed according the Company’s treasury liquidity practices, which may include (i) temporary investments
in cash, cash equivalents, or short-term investments, or (ii) repayment of short-and long-term borrowings.
Renesas may specify other use of proceeds pending allocation in the documentation for a given Green
Financing.

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2.4 REPORTING
Within one year from the date of the issuance of the Green Bond, and annually thereafter until an amountequal to the net proceeds of the Green Bond has been allocated to Eligible Green Projects, Renesas will
publish a public report with information on the allocation to and estimated impact of the Eligible Green
Projects on a designated Renesas website. If significant changes in our funding position occur after theproceeds have been allocated, we will disclose such changes in a timely manner.

2.4.1 ALLOCATION REPORTING
Renesas will report to the extent feasible, including the following components:•••

The total amount of net proceeds allocated to Eligible Green Projects
The allocation to Eligible Green Projects at a category level
The balance of the outstanding amount of net proceeds yet to be allocated to projects at the end of
the reporting period

2.4.2 IMPACT REPORTING
Where feasible, Renesas also intends to report on the environmental impacts of the projects funded with theGreen Bond proceeds. This may be supplemented by qualitative and/or case-study reports on outcomes
and impacts of the projects funded. Where relevant, information may be provided on data reporting andimpact assessment methodologies, to increase transparency.

2.5 EXTERNAL REVIEW
2.5.1 SECOND PARTY OPINION (PRE-ISSUANCE)
Renesas has retained Sustainalytics to provide a Second Party Opinion on the environmental benefits of the
Framework, as well as the alignment to the Green Bond Principles. The Second Party Opinion is available
on our website.

2.5.2 VERIFICATION (POST-ISSUANCE)
Renesas intends to request, one year after issuance, after full allocation of the net proceeds from the sale of
the Green Bond or following any material events related to the Eligible Green Project Portfolio, assurance by
its external auditor or other third party of a management statement on the allocation of the Green Bond net
proceeds to the Eligible Green Project Portfolio.

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3 APPENDIX
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GLOSSARYMCU: Micro Controller Unit, a small computer with embedded main memory that is part ofautomated functions such as engine control systems
RH850: Renesas’ high-end MCU product for automotive
R-CAR SoC: Renesas’ System-on-Chip for automotive, especially for ADAS/AD, Infotainment, andGateway
MMIC: Monolithic Microwave Integrated Circuit, a type of IC device that operates at microwave
frequencies
DDR4/5: Double Data Rate 4/5, a type of memory with a high-bandwidth interface
FR1/2: Frequency Range 1/2
PAs: Power Amplifiers
LNAs: Low Noise Amplifiers
T/R switches: Transmit/Receive switch
RF: Radio Frequency
MPU: Microprocessor Unit, a component incorporating the functions of a computer’s CPU on asingle IC, or at most a few ICs without embedded main memory
IGBT: Insulated Gate Bipolar Transistor, a three-terminal power semiconductor device primarily used
as an electronic switch to combine high efficiency and fast switching. Commonly used in EVs
HVAC: Heating, Ventilation, and Air Conditioning
VOC Sensor: Gas sensor for Volatile Organic Compounds
RZ/V: Renesas’ embedded AI MPU with a proprietary AI accelerator
RL78, RX, and RA products: Renesas’ MCU product line
SOTB: Silicon on Thin Buried Oxide, a type of process resulting in vastly improved energy
performance while also reducing leakage, a problem commonly encountered as process size is
reducedPage 14Renesas Electronics Corporation

DISCLAIMER
The information and opinions contained in this Green Bond Framework (the “Framework”) are provided as at the date of the
Framework and are subject to change without notice. None of Renesas or any of its affiliates assume any responsibility or
obligation to update or revise such statements, regardless of whether those statements are affected by the results of new
information, future events or otherwise. The Framework represents current Renesas policy and intent, is subject to change
and is not intended to, nor can it be relied on, to create legal relations, rights or obligations. The Framework is intended toprovide non-exhaustive, general information. The Framework may contain or incorporate by reference public information notseparately reviewed, approved or endorsed by Renesas and accordingly, no representation, warranty or undertaking, express
or implied, is made and no responsibility or liability is accepted by Renesas as to the fairness, accuracy, reasonableness orcompleteness of such information. The Framework may contain statements about future events and expectations that are
forward-looking statements. None of the future projections, expectations, estimates or prospects in this document should betaken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that theassumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or
exhaustive or, in the case of assumptions, fully stated in the Framework. No representation is made as to the suitability of any
Green Bond to fulfil environmental criteria required by prospective investors. Each potential purchaser of bonds should
determine for itself the relevance of the information contained or referred to in the Framework or the relevant bonddocumentation for such Green Bond regarding the use of proceeds and its purchase of Green Bonds should be based uponsuch investigation as it deems necessary. Renesas has set out its intended policy and actions in the Framework in respect ofuse of proceeds, project evaluation and selection, management of proceeds and reporting, in connection with its Green Bonds.
However, it will not be an event of default or breach of contractual obligations under the terms and conditions of any such
Green Bond if Renesas fails to adhere to the Framework, whether by failing to fund or complete Eligible Projects or by failingto ensure that proceeds do not contribute directly or indirectly to the financing of the excluded activities as specified in the
Framework, or by failing (due to a lack of reliable information and/or data or otherwise) to provide investors with reports on
uses of proceeds and environmental impacts as anticipated by the Framework, or otherwise. In addition, it should be notedthat all of the expected benefits of the Eligible Projects as described in the Framework may not be achieved. Factors including(but not limited to) market, political and economic conditions, changes in government policy (whether with a continuity of thegovernment or on a change in the composition of the government), changes in laws, rules or regulations, the lack of available
Eligible Projects being initiated, failure to complete or implement projects and other challenges, could limit the ability toachieve some or all of the expected benefits of these initiatives, including the funding and completion of Eligible Projects. Eachenvironmentally focused potential investor should be aware that Eligible Project may not deliver the environmental benefits
anticipated, and may result in adverse impacts. The Framework does not constitute a recommendation regarding any
securities of Renesas. The Framework is not, does not contain and may not be intended as an offer to sell or a solicitation of
any offer to buy any securities issued by Renesas. In particular, neither this document nor any other related material may be
distributed or published in any jurisdiction in which it is unlawful to do so, except under circumstances that will result incompliance with any applicable laws and regulations. Persons into whose possession such documents may come must informthemselves about, and observe, any applicable restrictions on distribution. Any decision to purchase any Green Bonds should
be made solely on the basis of the information to be contained in any offering document provided in connection with theoffering of such Green Bonds. Prospective investors are required to make their own independent investment decisions.

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