ANNEX 2
December 19, 2019

SDGs Green Finance Framework(Pet Refine Technology Co., Ltd.)This framework is based on the Green Bond Principles (hereinafter referred to as the "GBP"), the Loan
Markets Association (hereinafter referred to as the "LMA") and the Green Loan Principles (hereinafterreferred to as the "GLP") published by the Asia-Pacific Regional Loan Markets Association(hereinafter referred to as the "APLMA") published by the International Capital Markets Association(hereinafter referred to as the "ICMA") in order to clarify the implementation of this framework as anenvironmentally friendly, green project.
SDGs that are strongly related to this Green Project are judged based on "Green Bond and Social
Bond: High-Level Mapping against Sustainable Development Goals (SDGs)" published by the ICMA.

1. Use of Proceeds
ItemOverviewofContent
UseofProceeds

Pet Refine Technology Corporation (“PRT") will allocate the funds
raised in accordance with this Framework to the following GreenProjects.
Investment in the chemical recycling facilities of used PET
bottles, etc., in Kawasaki City, Kanagawa Prefecture, inconnection with the restart of factories and the refurbishment offacilities.
Specific investment details are as follows.
⚫

Maintenance for restarting the factory (replacement ofpiping, etc.)⚫

Renewal of flake equipment for crushing and sorting used
PET bottles, etc.

⚫
As to the eligibility forsuch use of funds

Renovation of chemical recycling facilities① The Board of Directors of Japan Environment Design Co., Ltd.,
which is PRT’s parent company, selects and approves eligible
projects after approval of the budget and business plan (PRT is a
100% subsidiary of Japan Environment Design Co., Ltd.).
1

② After the approval by the Board of Directors of Japan
Environment Design Co., Ltd., the Board of Directors selects andapproves eligible projects after approval of the budget andbusiness plan.
Fund

procurement

Procurement method: Loansmethods and investees

Facility: Capital renewal investment (new investment)■ Alignment with SDGs
Goal

Summary of the targets

Use of proceeds ofReasons associatedmost relevant to theGreen projectwith the SDGs targets

SDGs

listed on the left

9.4
By

Investment in the chemical2030,

upgrade recycling business of used・

Improvinginfrastructureand PET bottles in Kawasaki City

recyclable

retrofittoresourcesindustries

in connection with plantratiotheofandmake them sustainable, restart and facility

contributing

tothewithrealizationofa

resource-use efficiency

circulareconomyand greater adoption ofthrough the use ofclean

chemicalincreased renovation.

andenvironmentally soundtechnologies
industrial

recyclingtechnology

andprocesses,with all countries taking
action in accordancewith their respective
capabilities
Achievesustainable Investment in the chemical

Improving

and recycling business of usedrecyclable

management

theratioof

efficient use of natural PET bottles in Kawasaki City

resources

resources by 2030.

contributingtothe2030, restart and facility

realizationofa

reduce renovation.

circulareconomy12.5

By

substantiallywaste

in connection with plant

generation

andthrough the use of2

Goal

Summary of the targets

Use of proceeds ofReasons associatedmost relevant to theGreen projectwith the SDGs targets

SDGs

listed on the left

throughprevention,

chemicalreduction,recycling

technology

and reuse.

recycling

Promotion of chemical
recycling technology
improves the recovery
rate of plastic garbage
andcontributes

towaste reduction
13.1

Investment in theStrengthen

resiliencechemical recycling

・Improving
ratio

theand adaptive capacity tobusiness of used PET

recyclableofclimate-related hazards

bottles in Kawasaki City

resourcesand natural disasters inin connection with plant

contributingtotheall countries

restart and facility

realizationofa

renovation.

circulareconomyandthrough the use ofchemicalrecyclingtechnology
14.1

Investment in theBy 2025, prevent andchemical recycling

significantly

business of used PET

chemicalmarine pollution of all

bottles in Kawasaki City

technology improves

kinds, in particular fromin connection with plant

the recovery rate ofland-based

restart and facility

plastic garbage andrenovation.

contributes

reduceactivities,

including marine debris
and nutrient pollution.

・Promotionofrecycling

tothereduction of marine
plastic garbage

2. Processes of project evaluation and selection
Item
Vision,ContentTargetsandAs a wholly owned subsidiary of Japan Environment Design Co., Ltd.,

Strategy for Sustainable

PRT operates a recycling business for used PET bottles and otherSocietyproducts.

orSolving3

Environmental Issues

The parent company, Japan Environment Design Co., Ltd., has avision of "circulating everything" and is working with customers torealize a circular economy.
PRT believes that by cooperating with the recycling of everyday goods
and recycling resources, it can reduce the consumption of energy andpetroleum as a material, contribute to coping with marine plastic
problems and reducing carbon dioxide emissions, and at the same timeassist the customer's desire to contribute to the environment.
<Capital expenditure on restarting chemical recycling plants toproduce recycled PET raw materials>
In chemical recycling, used PET bottles and the like are crushed andwashed, and then decomposed to BHET molecular levels using achemical decomposition process called "depolymerization".
Furthermore, by "re-polymerizing" the high-purity BHET extracted by
the original BHET refining technique, recycled PET of the same
quality as PET derived from petroleum raw materials can be produced,
thereby realizing horizontal recycling of complete circulation type.
Compared to material recycling in which PET is reformed into a PET
resin after pyrolysis, the merits include a high impurity removal
capability and a wide application for reuse, and theoretically, the meritof being able to be recycled many times. On the other hand, thedisadvantage is that the cost and the hurdle of introduction are high.
We believe that by cooperating with material recycling companies thatare already in widespread use and maximizing the use of bothrecycling technologies, we can contribute to the improvement of therecycling rate of all used PET.
As the environment surrounding this project, effective utilization oflimited resources, demands for elimination/low carbon society, andresponses to marine plastic problems are cited, and the realization of
circular economy is expected.
In the "Plastic Resource Recycling Strategy" formulated by the4Ministry of the Environment, objectives such as doubling the recyclingof plastic by 2030 have been set in order to achieve sustainable
recycling of used plastic through an effective and efficient recycling
system.
On the other hand, as the import of plastic garbage was prohibited in
China due to the recent marine plastic problem, a large amount of used
PET bottles remained in Japan, and the importance of reduction andrecycling of plastic garbage has been increasing.
Global consumer goods/food and beverage manufacturers and retailers
are increasingly shifting to environmentally friendly materials as themomentum for sustainability is increasing worldwide.
This project will finance for investments in chemical recycling
facilities, such as used PET bottles, in conjunction with plant restartand facility upgrades. This technology improves the recyclability ofresources and contributes to the realization of a circular economy.
Process of determining as
an eligible green project① The Board of Directors of Japan Environment Design Co., Ltd.,
PRT’s parent company, selects and approves eligible projects
after approval of the budget and business plan (we are a 100%
subsidiary of Japan Environment Design Co., Ltd.).
② After approval by the Board of Directors of Japan Environment
Design Co., Ltd., the Board of Directors selects and approves
eligible projects after approval of the budget and business plan.

Potential

SocialandEnvironmental Risks ofPotential risk

Response

Projects and Responding<Environment>

Compliance withto Risks

Negative environmental impact

regulations and implementationof plant restartof(Environmental

destruction,impact on ecosystems, etc.)

measureslaws and
toreduce

environmental impacts by newly
introducing facilities with highenvironmental performance inthis project.

5

<Society>

Although the area surrounding

Negative social impact on local

this project is an industrial area,stakeholders (companies, etc.),

dialogues

such as noise caused by plantstakeholders (companies, etc.)

restartwere held in order to resume

withlocaloperations.
Method of disclosure theThe above process will be disclosed to the lender and CBI's Secretariat

above process

in materials attached to the loan agreement.

3. Management of Proceeds
Item

Content

Link Procurement Funds

Procurement funds are tied in full to selected projects by "2. Projectto Projects

Evaluation and Selection Process".

Method of Tracking andImplement appropriate fund management in the management ledger toManagement of Proceeds

separate funds from other funds.

InternalandExternal

Internal audits and external audits by accounting auditors areAuditsfor

Tracking

conducted to audit the internal processes of funds, and appropriate

Management

systems are in place.

Method of Management

Until the allocation is decided, unallocated proceeds are managed in aof Unallocated proceeds

dedicated account and in cash or cash equivalents.

4. Reporting
Item
MethodofContentDisclosure

Annually, the allocated amount and the outstanding of unallocated forConcerning the Status of

this Green Finance will be disclosed to the lender and CBI's secretariat

Allocation of Proceeds

until the full amount of funds to be allocated for the eligible green
project.

Methodology

andGreen projects allocated with funds raised under this framework will

Frequency of Disclosure

be disclosed annually to the lender and CBI's Secretariat.

of Impact Reporting<Draft Composition Items in the Impact Report>
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・ Corporate Philosophy
・ Report on status of output indicators (details below)
・ Report on status of outcome measures (details below)
・ Report on the status of impact indicators (detailed or less)

Reporting KPIs⚫

Output indicator・ Outline of flake facilities for crushing and sorting used PET bottles,etc., for which investment for renewal has been made・ Outline of renovated chemical recycling facilities invested by theLoan⚫

Outcome measures

・ Resource Volume Achieved by Chemical Recycling (xx tons/year)
・ CO2 emissions per production unit in the life cycle assessment⚫

Impact indicator (qualitative)

・ Contribute to the circular economy
・ Strengthening Responses to Marine Plastics Issues
・ Helping to Achieve a Low-Carbon Society7