Marubeni Corporation
Green Bond Framework
September 2021

Table of Contents
1. Introduction
2. Approach to SDGs
3. Alignment with the Green Bond Principles 2021
3.1 Use of Proceeds
3.2 Process for Project Evaluation and Selection
3.3 Management of the Proceeds
3.4 Reporting
4. External Review
4.1 Second Party Opinion
4.2 Compliance Review

J.P. Morgan is the Green Structuring Agent for this framework

1. Introduction
The history of Marubeni Corporation (“Marubeni”) dates back to 1858 when the Company’s founder
Chubei Itoh began business trips to deal in linen cloth. The Marubeni Group conducts business fromover 100 locations across over 60 countries and regions as a leading trading company. We conduct
importing and exporting, as well as domestic business, encompassing a diverse range of businessactivities across wide-ranging fields including lifestyle, ICT & real estate business, forest products,
food, agri business, chemicals, energy, metals & mineral resources, power business, infrastructure
project, aerospace & ship, finance & leasing business, construction, industrial machinery & mobility,and next generation business development. Additionally, the Marubeni Group offers a variety ofservices, makes internal and external investments, and is involved in resource development
throughout all of the above industries.
We started to experience a major sense of crisis in response to society’s changing values, the digital
revolution and drastic changes in the structure of industry and competitive landscape. Discontinuouschanges and disruptions to the status quo are taking place all around us. Marubeni’s management,
however, which embodies our company creed of “Fairness, Innovation and Harmony” (Fairness－Act
with fairness and integrity at all times. Innovation－Pursue creativity with enterprise and initiative.
Harmony－Give and earn the respect of others through cooperation.), is perfectly suited to this era ofuncertainty. In June 2018, the Marubeni Group adopted the “Global crossvalue platform” asMarubeni’s long-term vision. As we forge ahead into the yet unknown and the uncertain future, we will
use this platform to continue to proactively engage in salient social issues, and through verticalevolution and horizontal expansion, we will break down the barriers between industries, hurdle
obstacles between internal and external, and transcend international borders. In doing so, we will
create and provide solutions for the people of the world. We will take on the dual challenge of further
strengthening our existing businesses, while also exploring new business, simultaneously pursuingsustainable and explosive growth as we strive to improve the Marubeni Group’s long-term corporate
value.

2. Approach to SDGs
In accordance with the spirit of the Company Creed of “Fairness, Innovation, and Harmony”, theMarubeni Group is proudly committed to social and economic development and safeguarding the
global environment by conducting fair and upright corporate activities. Therefore, sustainability for the
Marubeni Group is to practice our Management Philosophy.
The Marubeni Group identifies three categories of Fundamental Materiality, i.e. Human Capital withHigh Social Value, Robust Management Foundation, and Governance for Coexistence with Society,as the most important factor to practice sustainability. The Sustainable Development Goals (SDGs)
adopted by the United Nations in September 2015 are goals for achieving sustainability and leaving
the world a better place for future generations shared by governments, the private sector and civilsociety. In recognition of this, the Marubeni Group identifies the following categories of Environmental
and Social Materiality in which it can truly make a valuable contribution.
(1) Climate Change
Marubeni has business operations throughout the world, and views climate change as a risk.
However, we also believe that it presents significant growth opportunities and contribution tomeasures addressing climate change through business leads to sustainable growth of
Marubeni. We regard “GHG emissions-reduction business creation” as one aim of our growthstrategy, and continuously work on “flexibility to revise business portfolio”, and establish “ahighly diversified business portfolio” with high resilience. In addition, Marubeni has
1formulated “Long-Term Vision on Climate Change” for the purpose of medium- and long-term
contributions to measures addressing climate change.
(URL: https://www.marubeni.com/en/news/2021/release/00022.html)(2) Sustainable Forestry
To build a better tomorrow, we have adopted a Forest Management Policy and a
Procurement Policy (for Wood-derived Products) to conserve and sustainably use valuable
forest resources. By operating our businesses in accordance with these policies, we will
promote sustainable forest management and contribute to forest conservation.
We strive to contribute to the establishment of a circular economy by fostering innovation in
the utilization of forest resources while working to cater to the increasing diverse
environmental needs of society.
(3) Human Rights & Co-development with Communities
To create a better tomorrow, we take a sincere approach to dealing with human rights issues
facing the international community. As part of our initiatives, we have included the threebasic principles of the United Nations’ “Guiding Principles on Business and Human Rights: 1)
respect for human rights, 2) due diligence on human rights, and 3) redress in our “Basic
Policy on Human Rights.”(4) Sustainable & Resilient Value Chains
We believe that we make important contributions to sustainability through environmental
conservation and sustainable social development initiatives throughout our supply chain. In
addition to managing the supply chain, we will also involve buyers of our products andenhance the strength and competitiveness of our entire value chain, which includes not only
the Marubeni Group but also our business partners.
In addition, we have revised our Basic Supply Chain CSR Policy, adopting a new Basic
Supply Chain Sustainability Policy to place more importance on climate change
countermeasures and respect for human rights.
Our categories of Environmental and Social Materiality are based on the 17 goals and 169 targets of
the SDGs, and consider stakeholders’ expectations and interests along with the environmental andsocial impact of our business. By working on Environmental and Social Materiality by utilizing ourFundamental Materiality, we will contribute to achieving the SDGs and work toward building a better
tomorrow.

3. Alignment with the Green Bond Principles 2021
Marubeni has established the Green Bond Framework in alignment with the Green Bond Principles
2021 as administered by the International Capital Market Association (ICMA). Marubeni’s Green
Bond will be issued based on the Framework.

3.1

Use of Proceeds

Marubeni will allocate an amount equal to the net proceeds from the issuance of Green Bond to new
or existing projects that meet at least one of the Eligibility Criteria set forth below (Eligible Projects).

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Eligibility Criteria
1. Renewable Energy
GBP
Eligible Category Eligibility Criteria
Renewable energy
Renewable
Energy• Investment in or
expenditures related todevelopment, construction,
management, and/or
operation & maintenancefrom renewable energy withdirect emissions of less than
100g-CO2 / kWh including:o Solar energyo Wind energyo Geothermal energyo Biomass energy (runsexclusively on woodpellets produced fromexternally certified woodand chip)o Small scale hydroenergy (Maximum of 25
MW in installed capacity)

Environmental
Objective
Climate change
mitigation(Reduction ofgreenhouse gas
emissions)

SDGs
Alignment
7．Affordable andclean energy
9．Industry,Innovation andInfrastructure
11．Sustainable
cities andcommunities
12．Responsible
consumption andproduction
13．Climate action

2. Environmentally Sustainable Management of Natural Resources and Land Use
GBP
Eligible Category Eligibility Criteria
Environmentally Externally certified
Sustainableafforestation
Management of • Investment in or
Living Natural
expenditures related to tree
Resources andplanting, management,
Land Use
operation & maintenance,
research & developmentfrom FSC/PEFC certified
afforestation

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Environmental
Objective
Natural resource
conservation
Climate change
mitigation

SDGs
Alignment
12．Responsible
consumption andproduction
13．Climate action
15．Life on land

3. Sustainable Water and Wastewater Management
GBP
Eligible Category Eligibility Criteria
Sustainable
Water supply and sewage
Water and• Investment in or
Wastewater
expenditures related toManagement
development, construction,
management, and/or
operation & maintenancefrom water supply andsewage business including:o Water Supply-Related
Facilities
o Sewerage ManagementRelated Facilities
o Facility/Equipmento Pipes

Environmental
Objective
Pollution prevention
and control

SDGs
Alignment

Natural resource
conservation

9．Industry,Innovation andInfrastructure

6．Clean waterand sanitation

11．Sustainable
cities andcommunities
12．Responsible
consumption andproduction

4. Circular Economy Adapted Products (Metal resource recycling)
GBP
Eligible Category Eligibility Criteria
Pollution
Magnesium refining
prevention and • Investment to orcontrol
expenditures related toresearch & development andcapital investment frommagnesium refining business

Environmental
Objective
Climate change
mitigation(Reduction ofgreenhouse gas
emissions)
Natural resource
conservation

SDGs
Alignment
11．Sustainable
cities andcommunities
12．Responsible
consumption andproduction
13．Climate action
15．Life on land

3.2

Process for Project Evaluation and Selection

The following departments will cooperate and decide on the following items for the projects which
the proceeds from the issuance of Green Bond will be allocated.
Relevant departments (the following relevant departments will cooperate and decide)••

Finance Department
Sustainability Management Department
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Decision items••••

Evaluating the compliance of proposed assets with the eligibility criteria (with the policy ofmaking only projects with positive long-term effects on the environment/society eligible)
Ensuring that the portfolio of Eligible Assets is aligned with the categories and criteria as
specified in the “Use of Proceeds” section
Replacing investments that no longer meet the eligibility criteria
Confirming the content of the Framework, and reflecting/updating the relevant changes in
Marubeni’s business strategy, technology and market developments

Responding to environmental and social risks
As part of its organization to promote sustainability initiatives, the Marubeni Group has a
Sustainability Management Committee under the supervision of the President. The Committee
discusses policies and measures concerning our sustainability initiatives and ESG risk
management and reports to the Board of Directors at least once a year. To incorporate the viewsof external parties, the Committee also includes External Directors and External Audit & Supervisory
Board Members in an advisory role. A Director heads the Sustainability Management Committee,
and the Board of Directors, by receiving periodic reports on important issues pertaining to thesustainability initiatives discussed by the Committee, oversees sustainability-related issues
evaluated from the viewpoints of the appropriateness of our ESG risk management andcompatibility with society.

3.3Management of the Proceeds

Marubeni’s Finance Department will allocate and manage the proceeds from the issuance of Green
Bond to Eligible Projects. The Finance Department will also monitor and track an amount equal to
the net proceeds from the issuance of Green Bond based on the Framework to applicable Eligible
Projects and periodically adjusted to match allocations to eligible projects/categories. Any pending
allocation will be invested temporarily in cash and cash equivalents. In case a project is cancelled or
postponed, proceeds will be reallocated to projects that are compliant with the Framework.

3.4

ReportingMarubeni will report on our website annually until all of the funds raised for Green Bond issued under
this Framework are fully allocated to eligible projects. In addition, we will report any significant
changes in the appropriation business as appropriate.
Allocation Reporting
Marubeni will report to the extent feasible, including the following components:•

Allocated amount in the following business categories
1. Renewable energy
2. Environmentally sustainable management of natural resources and land use
3. Sustainable water and wastewater management
4. Circular economy adapted products (Metal resource recycling)•

The balance of any unallocated proceeds and information on how unallocated proceeds, ifany, have been held in line with the guideline set in the “Management of the Proceeds”
5Impact Reporting
Marubeni will strive to report on the environmental impact of Eligible Projects financed by theissuance of Green Bond based on the Framework when feasible and subject to data availability:
Eligible Projects
1. Renewable energy
Renewable energy

Expected KPIs••

Power generation capacity (MW)
Environmental impact such as the achieved
reduction in CO2 emissions (t-CO2)
2. Environmentally sustainable management of living natural resources and land use• Planting area (ha)Externally certified afforestation
3. Sustainable water and wastewater management
Water supply and sewage• Water management capacity
4. Circular economy adapted products (Metal resource recycling)
Magnesium refining• Magnesium smelting capacity (t)4.

External Review

4.1

Second Party Opinion

Marubeni has retained Sustainalytics to provide a Second Party Opinion (SPO) on the environmental
benefits of the Framework, as well as the alignment to the Green Bond Principles. The SPO isavailable on our website.

4.2

Compliance Review

Until the amount equal to the net proceeds of the issuance of the Green Bond has been fully allocated,
Marubeni will have Sustainalytics conduct a compliance review on an annual basis to provide
assurance as to the amount of net proceeds that has been allocated in compliance with the eligibility
criteria set forth in the Framework.

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Disclaimer
The information and opinions contained in this Marubeni Corporation Green Bond Framework (theFramework) are provided as at the date of the Framework and are subject to change without notice. Noneof Marubeni Corporation 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 Marubeni Corporation policy and intent, issubject to change and is not intended to, nor can it be relied on, to create legal relations, rights or
obligations. The Framework is intended to provide non-exhaustive, general information. The Framework
may contain or incorporate by reference public information not separately reviewed, approved or
endorsed by Marubeni Corporation and accordingly, no representation, warranty or undertaking, express
or implied, is made and no responsibility or liability is accepted by Marubeni Corporation as to thefairness, accuracy, reasonableness or completeness of such information. The Framework may containstatements about future events and expectations that are forward looking statements. None of the future
projections, expectations, estimates or prospects in this document should be taken as forecasts orpromises 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 bond documentation for such Green Bondregarding the use of proceeds and its purchase of Green Bond should be based upon such investigation
as it deems necessary. Marubeni Corporation has set out its intended policy and actions in the
Framework in respect of use of proceeds, project evaluation and selection, management of proceeds andreporting, in connection with Green Bond. However, it will not be an event of default or breach ofcontractual obligations under the terms and conditions of any such Green Bond if Marubeni Corporation
fails to adhere to the Framework, whether by failing to fund or complete Eligible Projects or by failing toensure 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 noted that 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 otherchallenges, could limit the ability to achieve some or all of the expected benefits of these initiatives,
including the funding and completion of Eligible Projects. Each environmentally focused potential investor
should be aware that Eligible Project may not deliver the environmental benefits anticipated, and may
result in adverse impacts.