Hokuriku Electric Power Company Green Bond Periodic Review (#1)

SECOND PARTY OPINION
HOKURIKU ELECTRIC POWER COMPANY
GREEN BOND PERIODIC REVIEW (#1)

Prepared by: DNV Business Assurance Japan K.K.
Location: Kobe, Japan
Date: September 29, 2022
Ref. Nr.: PRJN-289645-2021-AST-JPN-PR1

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Hokuriku Electric Power Company Green Bond Periodic Review (#1)

Table of contents
I. Scope and Objectives

3

II. Responsibilities of Hokuriku Electric Power Company and DNV

4Ⅲ. Basis of DNV’s Opinion

5

Ⅳ. Work Undertaken

6

V. Findings and DNV’s Opinion

7

Schedule-1 Green Bond Project Outline

11

Schedule-2 Green Bond Eligibility Assessment Protocol

12

Publication history

Contents

October 28, 2021

GREEN BOND FRAMEWORK ELIGIBILITY PRE-ISSUANCE SECOND PARTY OPINION
GREEN BOND PERIODIC REVIEW (#1)
Status of Proceeds Allocation: Completed allocation of 4.72 billion yen out of theSeptember 29, 2022
(This report)

total proceeds of 10 billion yen as planned.
Environmental Benefits: CO2 reduction due to hydropower generation (10 sites):
370,414 t-CO2 (FY2021)
Projects Underway: Progress as planned on hydropower.

Disclaimer
Our assessment relies on the premise that the data and information provided by Issuer to us as part of our review procedures have been provided in good faith. Because of
the selected nature (sampling) and other inherent limitation of both procedures and systems of internal control, there remains the unavoidable risk that errors or
irregularities, possibly significant, may not have been detected. Limited depth of evidence gathering including inquiry and analytical procedures and limited sampling at
lower levels in the organization were applied as per scope of work. DNV expressly disclaims any liability or co-responsibility for any decision a person or an entity may makebased on this Statement.

Statement of Competence and Independence
DNV applies its own management standards and compliance policies for quality control, in accordance with ISO/IEC 17021:2011 - Conformity Assessment Requirements forbodies providing audit and certification of management systems, and accordingly maintains a comprehensive system of quality control, including documented policies andprocedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. We have complied with the DNV Codeof Conduct1 during the assessment and maintain independence where required by relevant ethical requirements. This engagement work was carried out by an independent
team of sustainability assurance professionals. DNV was not involved in the preparation of statements or data included in the Framework except for this Statement. DNV
maintains complete impartiality toward stakeholders interviewed during the assessment process.

1

DNV Code of Conduct is available from DNV website (www.DNV.com)

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Hokuriku Electric Power Company Green Bond Periodic Review (#1)

I. Scope and Objectives
On December 9, 2021, Hokuriku Electric Power Company (hereinafter, "Hokuriku ElectricPower Company" or "Issuer") issued the 1st Hokuriku Electric Power Company Green Bond
(hereinafter, the "BOND"). The issuance amount was 10 billion yen and the redemption
period was 10 years. DNV Business Assurance Japan K.K. (hereinafter, "DNV") applied theGreen Bond Principles (ICMA 2021, hereinafter, "GBP") and the Green Bond Guidelines(Ministry of the Environment 2020, hereinafter, "GBGLs"), and, where applicable, thetechnical criteria of the Climate Bond Standard (CBS v3.0, hereinafter, "CBS") to conduct thegreen bond eligibility assessment.
In April 2019, Hokuriku Electric Power set up the “Hokuriku Electric Power Group 2030 LongTerm Vision,” which describes a path to sustainable growth. In April 2021, they furthermore
established the "Hokuriku Electric Power Group Roadmap toward Achieving Carbon
Neutrality," and announced that they would take on the challenge of becoming carbon
neutral by 2050 as a responsible energy company that is trusted and chosen by people in
the region, through "decarbonization of power sources," "sophisticating of powertransmission and distribution facilities," and "decarbonization support for customers and local
communities". In 2022, they also updated the roadmap's target values to accelerate efforts
to achieve carbon neutrality in the "Hokuriku Electric Power Group Initiatives to Achieve theLong-term Vision (year 2022)."
Hokuriku Electric Power Company has allocated the proceeds to the following projects andassets categorized as below:
Renewable energy business(Construction, installation, operation and maintenance of power plants,
facilities, and related facilities)
・Hydropower generation business
DNV has been commissioned by Hokuriku Electric Power Company to provide periodic
reviews of green bonds. Our criteria and information to fulfil this objective are described inthe "Work Undertaken" section below. The periodic review was performed based on aninterview with Hokuriku Electric Power Company conducted on June 30, 2022 andinformation provided by Hokuriku Electric Power Company (interviews with Hokuriku ElectricPower Company stakeholders and other documents). DNV, as an independent external
reviewer, declares that we have no real or perceived conflict of interest associated with thedelivery of this second-party opinion for Hokuriku Electric Power Company.
In this report, no assurance is provided regarding the financial performance of the Issuer, thevalue of any investment in the BOND, or the long-term environmental benefits of the
projects.

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Hokuriku Electric Power Company Green Bond Periodic Review (#1)

II. Responsibilities of Hokuriku Electric Power Company and DNV
Hokuriku Electric Power Company has provided the information and data used by DNV during
the delivery of this review. Our statement represents an independent opinion and is intended
to inform Hokuriku Electric Power Company and other interested stakeholders in the Green
Bond as to whether the established criteria have been met, based on the information
provided to us.
In our work we have relied on the information and the facts presented to us by Hokuriku
Electric Power Company. DNV is not responsible for any aspect of the selected assets
referred to in this opinion and cannot be held liable if estimates, findings, opinions, orconclusions are incorrect.
Thus, DNV shall not be held liable if any of the information or data provided by Hokuriku
Electric Power Company and used as a basis for this assessment were not correct orcomplete.

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Hokuriku Electric Power Company Green Bond Periodic Review (#1)

Ⅲ. Basis of DNV’s Opinion
To provide Hokuriku Electric Power Company-specific Green Bond Eligibility Assessment
Protocol (hereinafter, "DNV’s Protocol"), DNV has adapted our green bond assessment
methodologies of Green Bond Principles (GBP)*1, Green Bond Guidelines (GBGLs)*2, andClimate Bonds Standard (only at the time of pre-issuance assessment)*3, which incorporate
the requirements of GBP.
Our Protocol includes a set of suitable criteria that can be used to underpin DNV’s opinion.
The overarching principle behind the criteria are that a green bond should “enable capitalraising and investment for new and existing projects with environmental benefits”.
As per DNV’s Protocol, the criteria against which the Green Bond has been reviewed aregrouped under the four Principles.
•

Principle One: Use of Proceeds: The Use of Proceeds criteria are guided by therequirement that an issuer of a green bond must use the proceeds to eligible
activities. The eligible activities should produce clear environmental benefits.

•

Principle Two: Process for Project Evaluation and Selection: The ProjectEvaluation and Selection criteria are guided by the requirements that an issuer of agreen bond should outline the process it follows when determining eligibility of aninvestment using green bond proceeds, and outline any impact objectives it willconsider.

•Principle Three: Management of Proceeds: The Management of Proceeds criteria
are guided by the requirements that a green bond should be tracked within theissuing organization, that separate portfolios should be created when necessary andthat a declaration of how unallocated proceeds will be handled should be made.

•Principle Four: Reporting: The Reporting criteria are guided by the recommendationthat at least Sustainability Reporting to the bond investors should be made of the useof bond proceeds and that quantitative and/or qualitative performance indicators
should be used, where feasible.
*

1: Green Bond Principles (ICMA, 2021)*

2: Green Bond Guidelines (Ministry of the Environment, 2020)*

3: Climate Bonds Standard v3.0 (Climate Bonds Initiative, 2019)

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Hokuriku Electric Power Company Green Bond Periodic Review (#1)

Ⅳ. Work Undertaken
Our work constituted a high level of review of the available information, based on theunderstanding that this information was provided to us by Hokuriku Electric Power Company
in good faith. We have not performed an audit or other tests to check the veracity of theinformation provided to us. The work undertaken to form our opinion included:i.

pre-Issuance review (*not included in this report)•

Creation of the Issuer-specific Protocol, adapted to the purpose of the Green Bond,
as described above and in Schedule-2 to this Assessment;•

Assessment of documentary evidence provided by Hokuriku Electric Power Company
on the Bond and supplemented assessment by comprehensive desktop research.
These checks refer to current assessment best practices and standards methodology;•

Discussions with Hokuriku Electric Power Company, and review of relevant
documentation;•

Documentation of findings against each element of the criteria.

ii. Periodic (annual) review (post-issuance)•

Assessment of evidential documents provided by the Issuer after issuance of the
BOND, and supplemental assessment by desk review from a higher perspective;•

Interview with key personnel of the Issuer, and review of the relevant documentation•

Field research and inspection (if necessary);•

Review of the projects and assets at the time of the periodic assessment(described in
Schedule-2);•

Document creation of post-issuance assessment result.

These findings are summarized in DNV's opinion (described below in details).

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Hokuriku Electric Power Company Green Bond Periodic Review (#1)

V. Findings and DNV’s Opinion
DNV's findings and opinions are as follows.

(1)

Use of Proceeds

Hokuriku Electric Power Company reported that the proceeds [net proceeds 9.96 billion
yen out of a total of 10 billion yen raised] have been refinanced to the following
projects and that the financing has been started:(1) Green eligible projects (refinancing):
Renewable energy business- Project: Hydropower project (8 sites): 1.92 billion yen

Subtotal: 1.92 billion yen ...(A)(2) Green eligible projects (new allocations):
Renewable energy business- Project: Hydropower project (6 sites): 2.80 billion yen

As of the end of March 2022
Subtotal: 2.80 billion yen ...(b): Balance (5.24 billion yen) ...(C)Total: 9.96 billion yen ...(A)+(B)+(C)Schedule 1 shows the list of these green projects.
DNV has reviewed the above selected projects and assets satisfy eligibility.

(2)

The process for Project Evaluation and Selection

The refinancing or financing of the proceeds have been started as planned to the projects
and assets described in Schedule-1. DNV has confirmed through its review that Hokuriku
Electric Power Company, in refurbishing and implementing the project, regularly
determines and evaluates opportunities (potential) for improvement and implements
voluntary activities to reduce negative impacts on the environment and society that arise
through the planning and implementation of the action plan.

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Hokuriku Electric Power Company Green Bond Periodic Review (#1)

(3)

Management of Proceeds

DNV reviewed the evidence presented by Hokuriku Electric Power Company on how it
had traced the proceeds from the bond issuance to the redemption period. During thisperiodic review, the proceeds management at the end of FY2021 (end of March 2022)
was confirmed based on the specific records (documentation) provided by Hokuriku
Electric Power Company. All proceeds are managed in cash or cash equivalents until
disbursed. The details of disbursements and balances are recorded in accordance with
Hokuriku Electric Power Company's internal procedures. The balance of proceeds isreviewed by Hokuriku Electric Power Company in each financial period (year) basedon the above management. Based on the evidence provided by Hokuriku ElectricPower Company, DNV has confirmed in its periodic review that 1.92 billion yen had
been allocated for refinancing, 2.80 billion yen had been allocated for new projects,
and 5.24 billion yen was unallocated at the end of FY2021 (end of March 2022).
As noted earlier, no assurance is provided here regarding the financial performance of
the BOND, the value of any investment, or the long-term environmental benefits.

(4)

Reporting

DNV has confirmed that Hokuriku Electric Power Company provided annual reportingand disclosure of the specific items required by the Green Bond on its website andintegrated report. DNV has also confirmed that a project overview, the allocation andmanagement statuses of proceeds, and relevant quantitative and qualitativeenvironmental assessment results (e.g., CO2 emission reductions in projects related
to renewable energy) are included.
Through periodic reviews, DNV has confirmed that the environmental benefits
brought by green projects have been properly calculated using the method specified
by Hokuriku Electric Power Company before the bond issuance, and that theenvironmental benefits have generally been achieved as planned.
Table-1 shows the assessment results of the environmental benefits of Hokuriku
Electric Power Company Green Bond project that has already started commercial
operation.

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Hokuriku Electric Power Company Green Bond Periodic Review (#1)

Table-1 Progress in environmental benefits (FY2021 result)
Project

Environmental benefits
AnnualHydropower project (10 sites)

electricity

generated:805.599

million kWh
CO2 reduction: 370,414 t-CO2*1*Based on the FY2021 result*

1: CO2 reduction effect = actual annual electricity generation (kWh) x CO2 emission factor

by electric power supplier (kg-CO2/kWh) x 0.95 (excluding transmission losses)/1,000(CO2 emission factors by electric power supplier [source: Ministry of the Environment])

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Hokuriku Electric Power Company Green Bond Periodic Review (#1)

On the basis of the information provided by Hokuriku Electric Power Company and the work
undertaken, it is DNV’s opinion that the Hokuriku Electric Power Company Green Bond meetsthe criteria established in the Protocol and that it is aligned with the stated definition or
purpose of green bond within the GBP and GBGLs, which is to "enable capital-raising andinvestment for new and existing projects with environmental benefits".

DNV Business Assurance Japan K.K.
September 29, 2022

Mark Robinson

Naoki Maeda

Manager, Sustainability Services

Managing Director

DNV Business Assurance, Australia

DNV Business Assurance Japan K.K.

Masato Kanedome

Yasuaki Miyamoto

Project Leader

Assessor

DNV Business Assurance Japan K.K.

DNV Business Assurance Japan K.K.

About DNV
Driven by our purpose of safeguarding life, property and the environment, DNV enables organisations to advance thesafety and sustainability of their business. Combining leading technical and operational expertise, risk methodology andin-depth industry knowledge, we empower our customers’ decisions and actions with trust and confidence. We
continuously invest in research and collaborative innovation to provide customers and society with operational andtechnological foresight. With our origins stretching back to 1864, our reach today is global. Operating in more than 100
countries, our 16,000 professionals are dedicated to helping customers make the world safer, smarter and greener.

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Schedule-1 Green Bond Project Outline
Nominated
Projects andAssetsGreen Project
Category[Environmental benefits]

Green Project
Sub Category

Hydropower project(8 sites)

Renewable energy(refinancing)business

Hydropower[Annual CO2 emission
Hydropower project(6 sites) (new)reduction, annual power
generation (MWh)]

Funded Amount(Net proceeds 9.96 billion yen outof a total of 10 billion yen)

1.92 billion yen(allocation completed in FY2021)
2.80 billion yen

Hydropower

Remarks(location, output (power plant), overview, etc.)(The unallocated 5.24 billion yen
is planned to be newly allocatedby FY2023.)

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In the jurisdiction of Hokuriku Electric Power Company(10 sites) Total 805.599 million kWh(Refinancing: operation started in April 2020)(New: operation started in December 2021)

Schedule-2 Green Bond Eligibility Assessment Protocol

Hokuriku Electric Power Company Green Bond Periodic Review (#1)

The following GBP-1 ~ GBP-4 are DNV's Green Bond Eligibility Assessment Protocol created for Hokuriku Electric Power Company based on
the requirements of GBP. The Hokuriku Electric Power Company Green Bond Framework and related legal documents (Amended Shelf
Registration Statement) and the periodic report on FY2021 results, which are listed in the table, are separately disclosed as explanatory
materials for investors.

GBP-1 Use of Proceeds
Ref.

Criteria

Requirements

Work Undertaken

1aType of bond

The bond must fall in one of thefollowing categories, as defined by
the Green Bond Principles:•Green Use of Proceeds Bond•
Green Use of Proceeds Revenue
Bond•
Green Project Bond•
OthersConfirmed documents:• Hokuriku Electric Power Company
Green Bond Framework• Amended Shelf Registration Statement
Interviews with Hokuriku Electric Power
Company’s stakeholders (hereinafterreferred to as "stakeholders")

The reviewed evidence confirms that the Green Bond falls in
the category:

The cornerstone of a green bond is
the utilization of the proceeds ofthe bond which should beappropriately described in the legal
documentation for the bond.

Confirmed documents:• Hokuriku Electric Power Company
Green Bond Framework• Amended Shelf Registration Statement• FY2021 allocation result-related
document• Project-related documents
Interviews with stakeholders

Based on the decisions made for the purpose of the BOND, theproceeds were refinanced into the following project categories:<Renewable energy business>- Refinancing to hydropower projects (8 sites)
The proceeds were also allocated to the following projects until
2021:<Renewable energy business>- Financing to hydropower projects (6 sites)

1b

Green
Project
Categories

DNV Findings· Green Use of Proceeds Bond

Through the periodic review, DNV confirmed that the projects
were classified according to Green Bond Principles 2021
(renewable energy) and that the CO2 emission risk was
relatively low, as well as that the negative impacts werequalitative and quantitative. DNV also concludes that these

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Ref.

Criteria

Requirements

Work Undertaken

DNV Findings
matters are described in legal documents, including theframework, and that the requirements in 1b are satisfied.

1c

Green
benefits

All designated Green Project
categories should provide clear
greenly sustainable benefits, which,where feasible, will be quantified orassessed by the issuer.

Confirmed documents:• Hokuriku Electric Power Company
Green Bond Framework• Project-related documents• FY2021 CO2 reduction result of
renewable energy business
Interviews with stakeholders

DNV considers that the hydropower projects have land use andimpacts (risks) on the ecosystem through the construction andoperation. DNV confirmed through a review of the
documentation provided by Hokuriku Electric Power Company
that Hokuriku Electric Power Company identified the risks
associated with project implementation and appropriate
measures to address them. DNV also confirmed that Hokuriku
Electric Power Company showed that the project
implementation had a clear environmental benefits of CO2
emission reduction. DNV concludes that the requirement in 1c
has been satisfied.

1d

Refinancing
share

In the event that a proportion of
the proceeds may be used forrefinancing, it is recommended thatissuers provide an estimate of theshare of financing vs. re-financing,
and where appropriate, also clarify
which investments or project
portfolios may be refinanced.

Confirmed documents:• Hokuriku Electric Power Company
Green Bond Framework• Amended Shelf Registration Statement• FY2021 allocation result-related
document
Interviews with stakeholders

All proceeds (10 billion yen) were allocated to green projects,of which 1.92 billion yen (about 20% of the total amountraised) were allocated as refinancing as planned in FY2021.
Hydropower project: 1.92 billion yen (refinancing completed in
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Hokuriku Electric Power Company Green Bond Periodic Review (#1)

GBP-2 Project Selection and Evaluation Processes
Ref.

Criteria

Requirements

Work Undertaken

2aInvestmentdecision
process

The issuer of a Green bond should outline thedecision-making process it follows todetermine the eligibility of projects using
Green bond proceeds. This includes, without
limitation:• A process to determine how the projects
fit within the eligible Green Projects
categories;• The criteria making the projects eligible
for using the Green bond proceeds; and• The environmental sustainability
objectives

Confirmed documents:• Hokuriku ElectricPower Company
Green Bond
Framework• Project-related
documents of
Hokuriku ElectricPower Company
Interviews withstakeholders

DNV Findings
Based on the Hokuriku Electric Power Company Green Bond
Framework, the Issuer (Hokuriku Electric Power Company) selected
projects in accordance with GBP2021 and related criteria. DNV
confirmed that the qualified green projects were in line with Hokuriku
Electric Power Company's corporate philosophy and environmental
policy, and that the following initiatives described in relation to the"Hokuriku Electric Power Group Roadmap toward Achieving Carbon
Neutrality" were in line with GBP2021.
Hokuriku Electric Power Group Roadmap toward Achieving Carbon
Neutrality"Decarbonization of power sources"
DNV confirmed that the selection of projects and assets was
performed by the relevant departments and responsible persons of
Hokuriku Electric Power Company [Head Office Accounting
Department]. DNV concludes through document reviews andinterviews with Hokuriku Electric Power Company that the requirementin 2a has been satisfied.

2bIssuer’s
environmental, social andgovernanceframework

In addition to information disclosed by anissuer on its Green bond process, criteria andassurances, Green bond investors may also
take into consideration the quality of theissuer’s overall framework and performance
regarding green sustainability.

Confirmed documents:• Hokuriku ElectricPower Company
Green Bond
Framework• Project-related
documents• https://www.rikuden.co.jp/setsubi/hatsud
en.html

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DNV confirmed that the green projects to be implemented by theIssuer is consistent with the Issuer's "Hokuriku Electric Power Group
2030 Long-Term Vision" and "Hokuriku Electric Power Group Roadmap
toward Achieving Carbon Neutrality". In addition, DNV confirmed thatthe projects were implemented in a process in which theenvironmental aspects were fully considered and appropriate measures
were taken based on the domestic legal system, etc. DNV also
confirmed that the environmental and social impact assessment
specific to each category of power plants was performed in reference
to relevant technical standard, etc.

Hokuriku Electric Power Company Green Bond Periodic Review (#1)

Ref.

Criteria

Requirements

Work Undertaken
Interviews withstakeholders

DNV Findings
DNV confirmed, through interviews with Hokuriku Electric Power
Company and reviews of documents provided by Hokuriku ElectricPower Company, that the company was working towards achieving asustainable society through its business activities towards carbon
neutrality in 2050. Hokuriku Electric Power Company discloses thestatus of these activities in the Hokuriku Electric Power Company
Integrated Report and on the relevant website, with regard to thematters specifically required by the green bond.
In addition, Hokuriku Electric Power Company owns more than 150
renewable energy facilities, contributing to the realization of a lowcarbon society.
https://www.rikuden.co.jp/setsubi/hatsuden.html(See the sections on hydroelectric, wind, and solar power plants.)
DNV confirmed that the selection of projects and assets was
performed by the relevant departments and responsible persons of
Hokuriku Electric Power Company [Head Office Accounting
Department]. DNV concludes through document reviews andinterviews with Hokuriku Electric Power Company that the requirement
in 2b has been satisfied.

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GBP-3 Management of Proceeds
Ref.

Criteria

3a

Tracking
procedure-1

3b

Tracking
procedure-2

3C

Temporaryholdings

Requirements

Work Undertaken

The net proceeds of Green bond should be
credited to a sub-account, moved to a subportfolio or otherwise tracked by the issuer
in an appropriate manner and attested toby a formal internal process that will belinked to the issuer’s lending andinvestment operations for Green Projects.

Confirmed documents:• Hokuriku Electric Power Company
Green Bond Framework• Amended Shelf Registration
Statement• Hokuriku Electric Power Company
internal procedures(documentation rules)• FY2021 allocation result-related
document
Interviews with stakeholders

DNV confirmed through document reviews and interviews
that Hokuriku Electric Power Company planned to properly
track the proceeds from the time of bond issuance until
completion of disbursement. DNV also confirmed that the
total amount of proceeds was managed by the Accounting
Department of Hokuriku Electric Power Company using theexisting accounting system and approval forms for thegreen bond.
DNV confirmed that the balance of the green bond proceeds
was manageable and recordable according to Hokuriku
Electric Power Company’s internal procedures. DNV
concludes that the requirement in 3a has been satisfied.

So long as the Green bond outstanding, thebalance of the tracked proceeds should beperiodically reduced by amounts matchingeligible green investments made until green
benefit appearance or completion ofproceeds allocation.

Confirmed documents:• Hokuriku Electric Power Company
Green Bond Framework• Amended Shelf Registration
Statement• Hokuriku Electric Power Company
internal procedures(documentation rules)• FY2021 allocation result-related
document
Interviews with stakeholders

DNV confirmed through document reviews and interviews
that Hokuriku Electric Power Company planned to properly
track the proceeds from the time of bond issuance until
completion of disbursement. DNV also confirmed that thebalance of proceeds was decreasing in accordance with the
project and asset refinancing schedule. DNV confirmed thatthe balance of unappropriated proceeds of the bond wasreviewed on at least a quarterly basis by the Accounting
Department of Hokuriku Electric Power Company. DNV
concludes that the requirement in 3b has been satisfied.

Pending such investments or disbursements
to eligible Green Projects, the issuer shouldmake known to investors the intended
types of temporary investment instruments
for the balance of unallocated proceeds.

Confirmed documents:• Hokuriku Electric Power Company
Green Bond Framework• Amended Shelf Registration
Statement

The net proceeds of the bond are managed by the
Accounting Department using the existing accounting
system and approval forms for the green bond. DNV
confirmed that the unallocated proceeds were managed in
cash or cash equivalents. DNV concludes that therequirement in 3c has been satisfied.

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DNV Findings

Hokuriku Electric Power Company Green Bond Periodic Review (#1)

Ref.

Criteria

Requirements

Work Undertaken• Hokuriku Electric Power Company
internal procedures(documentation rules)• FY2021 allocation result-related
document
Interviews with stakeholders

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DNV Findings

Hokuriku Electric Power Company Green Bond Periodic Review (#1)

GBP-4 Reporting
Ref.

Criteria

4aPeriodical
reporting

Requirements

Work Undertaken

In addition to reporting on the use of proceeds
and the temporary investment of unallocatedproceeds, issuers should provide at least annuallya list of projects to which Green bond proceeds
have been allocated including- when possible with regards to confidentiality
and/or competitive considerations- a brief description of the projects and theamounts disbursed, as well as the expected
greenly sustainable impact.

Confirmed documents:• Hokuriku Electric Power
Company Green Bond
Framework• CO2 reduction result of
renewable energy business(FY2021)• Hokuriku Electric Power
Company Green Bond
(Hokuriku Electric Power
Company 347th Bond (withgeneral mortgage)) Reporting• CO2 reduction assessment sheet
Interviews with stakeholders

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DNV Findings
Based on the plan to annually report on specificitems required by the green bond, Hokuriku
Electric Power Company published the report on its
website as the Hokuriku Electric Power Company
Green Bond (Hokuriku Electric Power Company
347th Bond (with general mortgage)) Reporting.
DNV confirmed that the report included
descriptions of projects, allocation status ofproceeds, and relevant quantitative and qualitative
assessments on environmental impact. DNV also
confirmed that Hokuriku Electric Power Company
reported the total CO2 emission reductions basedon the operation record (power generation in
MWh/year). DNV concludes that the requirementin 4a has been satisfied.