Renesas Electronics Corporation (2021 Green Bond)
Type of Engagement: Annual Review
Date: November 2, 2022
Engagement Team:
Kosuke Kanematsu, kosuke.kanematsu@sustainalytics.com, (+81) 3 4571 2277
Yukie Osari, yukie.osari@sustainalytics.com, (+81) 3 4520 2192

Introduction
In November 2021, Renesas Electronics Corporation (“Renesas”) issued a green bond aimed at financing
projects related to Clean Transportation, Energy Efficiency, Renewable Energy, and Sustainable Water andWastewater Management (USD 500 million 3-Year Green Bond, hereinafter the “2021 Green Bond”). As ofSeptember 30, 2022, the proceeds were allocated to projects related to Clean Transportation and Energy
Efficiency. In October 2022, Renesas engaged Sustainalytics to review the project funded through the 2021
Green Bond and assess whether the projects met the Use of Proceeds criteria and the Reporting commitments
outlined in the Renesas Electronics Corporation Green Bond Framework (the “Framework”). 1

Evaluation Criteria
Sustainalytics evaluated the project funded with proceeds from November 2021 to September 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

Clean
Transportation

1.

Smart Electric Vehicles Solutions
Electric Vehicles runs onelectricity reducing CO2 emission

2.

Smart Autonomous DriveSolutions
AD and ADAS not only reduces
energy consumption, but alsoprotects driver against potential
accidents

Where feasible, Renesas intends to reporton the environmental impacts of theprojects funded with the Green Bondproceeds. This may be supplemented byqualitative and/or case-study reports on
outcomes and impacts of the projects
funded. Where relevant, information may
be provided on data reporting and impact
assessment methodologies, to increasetransparency.

3.

Smart Data Center Solutions
Next generation data centers, withthe transition from DDR4 to DDR5,
increases bandwidth as well as
energy efficiency

4.

Smart Cellular Solutions
5G technology allows for fasterconnections and more devices tobe connected, all while increasingenergy efficiency

5.

Smart Society Solutions
Renesas' various solutions
contritute to reduction in CO2

Energy Efficiency

Same as above

1 Renesas Electronics Corporation Green Bond Framework is available at: https://www.renesas.com/us/en/document/oth/green-bond-framework?r=1399796© Sustainalytics 2022

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Renesas Electronics Corporation
emission and energy
consumption in a variety ofapplications from industrial
sectors, renewable energy tohome appliances and IoT devices
6.

Renesas’ Green Devices andTechnology
Renesas's various productportfolio and technology
contribute to less energy
consumption and development of
eco-friendly products

Issuing Entity’s Responsibility
Renesas is responsible for providing accurate information and documentation relating to the details of theprojects that have been funded, including description of projects, amounts allocated, and project impact.

Independence and Quality Control
Sustainalytics, a leading provider of ESG and corporate governance research and ratings to investors,
conducted the verification of Renesas’s 2021 Green Bond Use of Proceeds. The work undertaken as part ofthis engagement included collection of documentation from Renesas employees and review ofdocumentation to confirm the conformance with the Framework.
Sustainalytics has relied on the information and the facts presented by Renesas 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 byRenesas.
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 ofRenesas Electronics Corporation’s 2021 Green Bond, are not in conformance with the Use of Proceeds andReporting Criteria outlined in the Renesas Electronics Corporation Green Bond Framework. Renesas has
disclosed to Sustainalytics that the proceeds of the 2021 Green Bond were fully allocated as at September
30, 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.
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Detailed Findings
Table 2: Detailed Findings
Evaluation
Criteria

Procedure Performed

Factual Findings

Use ofProceeds
Criteria

Verification of the projects funded by the2021 Green Bond from November 2021 toSeptember 2022 to determine if the projects
were aligned with the Use of Proceeds
Criteria outlined in the Renesas Electronics
Corporation Green Bond Framework andabove in Table 1.

All projects reviewed
complied with the Use ofProceeds criteria.

ReportingCriteria

Verification of the projects funded by the2021 Green Bond from November 2021 toSeptember 2022 to determine if the impactof the projects was reported in line with theimpact indicators outlined in the Renesas
Electronics Corporation Green BondFramework and above in Table 1.

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

Error orExceptions
Identified
NoneNone

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Appendix
Appendix 1: Allocation of Green Bond Proceeds
Use of Proceeds
Category

CleanTransportation

Energy Efficiency

Overview of Project

Net BondProceeds
Allocation(million USD)

1.

Smart Electric Vehicles Solutions

34

2.

Smart Autonomous Drive Solutions

283

3.

Smart Data Center Solutions

53

4.

Smart Cellular Solutions

11

5.

Smart Society Solutions

96

6.

Renesas’s Green Devices and Technology

23

Total Net Bond Proceeds Allocated:

500

Total Net Bond Proceeds Unallocated:

0Total Net Bond Proceeds from Green Bond issuance:

500

Appendix 2: Impact Reporting3

3

Use ofProceeds
Category

Description of impacts (excerpt)

CleanTransportation• MCUs used for controlling Battery Management Systems (BMS) such as the RH850,
achieves 60-65% reduction in power consumption compared to competitor
products.
• PMIC solutions reduce power loss by up to 33% compared to competitive PMICs.

EnergyEfficiency• F5288 transmitter/receiver has 33% lower power consumption and leads to 8.4Kt of
reduced/avoided GHG per year, compared to similar products by industry
competitors.
• Renesas’ 8th generation IGBTs, which utilizes our low-power construction expertise,allows for more than 30% reduction in power loss and increases energy efficiencyof all systems.
• RZ/V MPU, which control and operate these factory automations, can reduce power
consumption by 80% compared to previous generations.
• RL78, RX, and RA products from Renesas’ MCU portfolio achieve 30% less electricity
consumption compared to past products.

Impact Reporting by Renesas is available at: https://www.renesas.com/jp/en/about/company/sustainability
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Renesas Electronics CorporationDisclaimer
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