RENEWABLE JAPAN CO., LTD. GREEN IPO FRAMEWORK SECOND PARTY OPINIONSECOND PARTY OPINIONRENEWABLE JAPAN CO., LTD.
GREEN IPO FRAMEWORK

Prepared by: DNV Business Assurance Japan K.K.
Location: Kobe, Japan
Date: 17 November 2021
Ref. Nr.: PRJN‐286202‐2021‐AST-JPN-01

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RENEWABLE JAPAN CO., LTD. GREEN IPO FRAMEWORK SECOND PARTY OPINIONCONTENTS
Executive Summary

3

Ⅰ Introduction

6

Ⅱ Scope and Objectives

8

Ⅲ Responsibilities of Renewable Japan and DNV

9IV Basis of DNV’s opinion

10

V Work Undertaken

11

VI Findings and DNV’s opinion

12

Schedule-1 Renewable Japan Green IPO Nominated Project17

Schedule-2 Renewable Japan Green IPO Framework Eligibility Assessment Protocol

18

GF-1 Use of Proceeds

18

GF-2 Process for Project Evaluation and Selection20

GF-3 Management of proceeds

21GF-4 Reporting

23

Revision History
RevisionIssue Date

Number(dd/mm/yyyy)

Rev. 017/11/2021

Remarks
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RENEWABLE JAPAN CO., LTD. GREEN IPO FRAMEWORK SECOND PARTY OPINION

Executive Summary
Since its establishment in January 2012, Renewable Japan has been engaged in renewable energy
development. Aiming to become a "renewable energy conglomerate," Renewable Japan provides
a full range of renewable energy-related business services, including (1) development of
renewable energy power plants, mainly solar power plants, (2) EPC (engineering, procurement,
and construction), (3) financing and sale of projects, and (4) power generation and electricity
retailing.
Renewable Japan develops and owns renewable energy power plants and earns income from thesale of electricity from the power generation business. Renewable Japan will also sell the projects
to listed infrastructure and private funds and earn proceeds from the sale. Concerning the soldrenewable energy power plants, we have established a "Circular Reinvestment Model" in which weare entrusted with AM and O&M operations by listed infrastructure funds and private funds.
Through such business models, Renewable Japan has declared that it aims to develop asustainable society by reducing greenhouse gas emissions as agreed in the Paris Agreement andcombating climate change as outlined in the Sustainable Development Goals (SDGs). Renewable
Japan is considering executing an IPO to raise funds to carry out these activities, and has
established the "Renewable Japan Co., Ltd. Green IPO Framework" (the "Framework").
DNV Business Assurance Japan K.K. (“DNV”), as an external reviewer, has assessed the
Framework eligibility referring to the four elements of the Green Bond Principles (“GBP”) set forth
by the International Capital Market Association, or ICMA, in 2021, which is widely and globally
recognized. Renewable Japan Eligible Green Projects will be selected and allocated from theeligible projects for solar power generation, a renewable energy source, as described below.
The following is a summary of the evaluation results of DNV with reference to the four elements
indicated by GBP.
1. Use of Proceeds:
Renewable Japan plans to allocate all the funds raised by the Green IPO to "Renewable Energy,"
an eligible criterion for realizing a low-carbon society. These are in line with GBP-1.
Specifically, the plan is as follows.
・ The eligible project is a solar power plant in Renewable Japan's current mainstay renewableenergy business.
Renewable Japan will fully allocate the funds to develop several solar power plants currently
under development and to acquire new solar power plants.
2. Process for Project Evaluation and Selection:
The projects nominated in the Green IPO are renewable energies and are in line with Renewable
Japan's philosophy, policies, and actual business activities.
In selecting eligible projects, the Development Division takes the lead and consults with the various
divisions (those responsible for project management, financing, and construction, sale, andPage 3 of 23

RENEWABLE JAPAN CO., LTD. GREEN IPO FRAMEWORK SECOND PARTY OPINION

operation management of the power plant). After that, a business plan is drawn up, approved by
the Management Committee and the Board of Directors. In determining the eligibility of the project,
Renewable Japan plans to conduct due diligence on the project, including "evaluation of the site
for the power plant," "formulation of the development plan," and "establishment of the
management system."
Based on the results of this due diligence, the eligibility of the nominated project and its
compatibility with the Basic Environmental Policy is determined at the Management Committee, a
corporate body whose purpose is to deliberate on matters entrusted by the Board of Directors
regarding important issues related to business execution and other important issues related tocorporate management. These are in line with GBP-1.
3. Management of Proceeds:
The funds raised by the Green IPO will be managed according to predetermined internal
procedures. The funds raised by the Green IPO will be managed in Renewable Japan's bankaccount and will not be mixed with any other projects and will be promptly allocated to thegreen project only.
Until a decision is made to use the proceeds, the funds raised will be managed strictly in cash or
cash equivalents.
To manage the tracking of funds raised, when Renewable Japan allocates funds raised by theGreen IPO to an eligible project, the Finance & Accounting Division will conduct a preliminary
check of the fund flow using a spreadsheet. After the preliminary check of the fund flow, thefunds raised by the Green IPO will be allocated upon approval by the General Manager of the
Finance & Accounting Division.
After the funds raised by the Green IPO have been allocated, the Finance & Accounting Division
will track the funds using a spreadsheet and report to the General Manager of the Finance &Accounting Division on a case-by-case basis. These are in line with GBP-1.
4. Reporting:Renewable Japan plans to report the specific items of Green IPO as of 31 December of each year
required by GBP (allocation status, environmental improvement effects, etc.) on the Renewable
Japan website at least annually.
In addition, Renewable Japan will disclose the projects to be covered by the Green IPO and thestatus of the allocation of funds to the projects on Renewable Japan's website. Renewable Japan
will also disclose at the same time the amount or balance of unallocated funds, if any, thescheduled time of allocation, and the temporary management process of the unallocated funds.
• The amount of allocated funds raised by Green IPO• The total balance of funds raised by Green IPO
As well as the above, the following items regarding the effects of environmental improvements
will be disclosed on the Renewable Japan website regularly, once a year.

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RENEWABLE JAPAN CO., LTD. GREEN IPO FRAMEWORK SECOND PARTY OPINION• Performance indicators of the project (e.g., power generation capacity, electricity generation)• Indicators of the environmental contribution of the project (e.g., CO2 reduction)【Management of unallocated funds】
If unallocated funds arise due to changes in the project or other reasons, Renewable Japan will
disclose at the same time the amount or balance of unallocated funds, if any, the scheduled timeof allocation, and the temporary management process of the unallocated funds.
These above details are consistent with GBP-1.
DNV confirmed that the Framework meets the key requirements of the four core elements definedin GBP and related criteria and is expected to be appropriately planned and implemented.

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RENEWABLE JAPAN CO., LTD. GREEN IPO FRAMEWORK SECOND PARTY OPINION

Ⅰ Introduction-1- Overview of the Issuer
Since its establishment in January 2012, Renewable Japan has been engaged in renewableenergy development. Aiming to become a "renewable energy conglomerate," Renewable Japan
provides a full range of renewable energy-related business services, including (1) developmentof renewable energy power plants, mainly solar power plants, (2) EPC (engineering,procurement, and construction), (3) financing and sale of projects, and (4) power generationand electricity retailing.
Renewable Japan develops and owns renewable energy power plants and earns income fromthe sale of electricity from the power generation business. Renewable Japan will also sell the
projects to listed infrastructure and private funds and earn proceeds from the sale. Concerning
the sold renewable energy power plants, we have established a "Circular Reinvestment Model"
in which we are entrusted with AM and O&M operations by listed infrastructure funds andprivate funds.
Through such business models, Renewable Japan has declared that it aims to develop asustainable society by reducing greenhouse gas emissions as agreed in the Paris Agreement
and combating climate change as outlined in the Sustainable Development Goals (SDGs).

-2- Renewable Japan and Environmental Initiatives
Renewable Japan's vision is "A brighter future through sustainable energy," To achieve this, they
are conducting business with the following three missions.
(1) Create high-quality renewable energy power plants and operate them safely(2) Leverage financial know-how to expand the use of renewable energy(3) Revitalize local communities with renewable energy【Renewable Japan Corporate Philosophy】
Corporate Philosophy
VisionA brighter future through sustainable energy

The society we want to realize
MissionWhat we should do to realize
our vision• Create high-quality renewable energy power plants and operate themsafely• Leverage financial know-how to expand the use of renewable energy• Revitalize local communities with renewable energy
Based on the aforementioned three missions, Renewable Japan engages in businessactivities to realize a sustainable society that pays attention to the global environment bypromoting renewable energy. In addition, renewable energy projects are expected to have

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RENEWABLE JAPAN CO., LTD. GREEN IPO FRAMEWORK SECOND PARTY OPINION

high environmental improvement effects (CO2 reduction effects) and are developed andoperated with consideration for potentially negative environmental and social impacts.
【Renewable Japan Environmental policy】
As a corporate member of society, Renewable Japan cares about the environment and recognizes that care
for local environments is essential for business continuity. Our power stations depend on local communities
and we will grow in unison with these communities by making a sustainable low-carbon society a reality.
Environmental policy
Low-carbon society

We help the international community achieve low-carbon societies throughour renewable energy business operations.

Long-standing commitment

Our power generation business operations continue to care for local
communities and the environment in compliance with relevant laws,
regulations and guidelines for many years to come.

Environmental contribution

As part of our environmental activities, we raise awareness ofon a daily basis

environmental issues among employees.

Reference: Renewable Japan website https://www.rn-j.com-3- SDGs Initiatives of Issuer
Through its proposed "Circular Reinvestment Model," Renewable Japan aims to develop asustainable society by reducing greenhouse gas emissions as agreed by the Paris Agreement andaddressing climate change as outlined in the Sustainable Development Goals (SDGs). The eligible
project is, directly and indirectly, related to and contributes to the SDGs for Goal 7 and Goal 13
related to energy and climate change.

Renewable Japan SDGs Contribution activities
Renewable Japan’s
Initiative

SDGs- Realization of a low-carbon
society through renewable

Goal 7

AFFORDABLE AND CLEAN ENERGY

Goal 13

CLIMATE ACTION

energy projects- Reduction of greenhousegas emissions＊ The relevance to SDGs is based on the reference to “Green, Social and Sustainability Bonds: A
High- Level Mapping to the Sustainable Development Goals” published by the International
Capital Market Association, or ICMA, which defines the Green Bond Principles (“GBP,”
announced by ICMA in 2018). It is a complemental explanation of the Green IPO and is notdirectly defining its use of proceeds.

Reference: Renewable Japan website https://www.rn-j.com

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RENEWABLE JAPAN CO., LTD. GREEN IPO FRAMEWORK SECOND PARTY OPINION

Ⅱ Scope and Objectives
Renewable Japan has recently established the Framework with reference to the four core elements
defined in GBP when implementing the Green IPO.
Renewable Japan plans to allocate all the funds raised by the Green IPO to finance thedevelopment or new acquisition of renewable energy solar power plants that meet the eligibility
criteria or to refinance the same. Eligible green projects (renewable energy) are shown as
representative green projects in the GBP and related standards. In addition, the Development
Division takes the lead in developing project plans, and the eligibility is resolved by the Executive
Committee and the Board of Directors.

Project: Renewable energy (Development or new acquisition of solar power plants)

DNV, as an external reviewer, evaluated the eligibility of the Framework with reference to GBP
and related criteria, as well as with the assessment of the management of proceeds from theGreen IPO.
Renewable Japan commissioned DNV to conduct an assessment for the Framework. The purposeof the Framework assessment in DNV is to ensure that Renewable Japan meets the key
requirements of the four core elements with reference to GBP and related criteria described below
and to provide a second party opinion on the eligibility of the Framework.
DNV declares that it has no interest in the facts and perceptions of Renewable Japan in providing
its second party opinion.
In addition, this report does not provide any assurances regarding the financial performance ofthe new shares issued through the Green IPO, the value of any investment, or the long-term
environmental benefits.

Applicable standards or guidelines
No.

Standards or guidelines

1.

Green Bond Principles 2021、GBP

2Climate Bonds Standard version 3.0(Sector criteria)

Issuer

Applied level

International Capital Market
Association（ICMA）

Refer*1

Climate Bonds Initiative、2019Refer*2*1：Refer ; Based on the DNV assessment protocol, DNV has evaluated the eligibility by referring to the main
requirements of the four core elements defined by the globally recognized GBP and others. At this time, we
considered the IPO-specific management and reporting.
*2：Refer ; We assessed the eligibility of the target project by referring to the sector criteria of globally
recognized climate bonds standard.

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RENEWABLE JAPAN CO., LTD. GREEN IPO FRAMEWORK SECOND PARTY OPINION

Ⅲ Responsibilities of Renewable Japan and DNV
Renewable Japan has provided the necessary information and data to DNV to conduct this review
process. DNV’s second party opinion represents an independent opinion. It is intended to inform
Renewable Japan and other interested stakeholders in the Green IPO as to whether the Green IPO
meets the criteria of widely recognized international principles/guidelines, based on theinformation provided for DNV. DNV does not express an opinion on the specific assets selected inaccordance with the Green IPO Framework and shall not be held liable if estimates, findings,
opinions, or conclusions are inaccurate. Therefore, DNV shall not be held liable even if any of theinformation or data provided by Renewable Japan and used as a basis for this assessment are notcorrect and complete.

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RENEWABLE JAPAN CO., LTD. GREEN IPO FRAMEWORK SECOND PARTY OPINION

IV Basis of DNV’s opinion
To provide as much flexibility as possible to Renewable Japan, DNV has created specific Green IPO
Framework Assessment Protocol (the “Protocol”), taking into account requirements of various
standards such as GBP. The Protocol applies or refers to four core elements such as GBP. The
Protocol includes a set of suitable criteria that can be used to underpin its opinion. The holistic
principle behind the criteria is that the Green IPO should “enable the capital raising andinvestments for new and existing projects to realize environmental benefits.” As per the Protocol,
the evaluation criteria, with which the Framework is under review, are grouped into the following
four elements:•

Principle One: Use of Proceeds. The criteria for using the proceeds are set by therequirement that Issuers that have established a green IPO Framework must use the funds
raised by the green IPO for eligible projects under the Framework for which they have been
evaluated the eligibility. The eligible projects should produce clear environmental benefits.

•

Principle Two: Process for Project Evaluation and Selection. The criteria for project
evaluation and selection should outline the process that the Issuer that established the GreenIPO Framework follows in determining the eligibility of an investment that uses the proceedsfrom the Green IPO and outline any impact objectives it will consider.

•

Principle Three: Management of Proceeds. The criteria for Management of Proceeds are
guided by the requirements that proceeds from Green IPO should be tracked within the issuingorganization based on management methods specific to various types of finance, that separate
portfolios should be created when necessary and that a declaration of how unallocated funds
will be handled must be made.

•Principle Four: Reporting. The criteria for Reporting are guided by the recommendation that
the Issuer publish sustainability reports to equity investors regarding the status of proceed
allocations and, where feasible, adequate quantitative and/or qualitative performanceindicators should be used.

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RENEWABLE JAPAN CO., LTD. GREEN IPO FRAMEWORK SECOND PARTY OPINION

V 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 the Issuer in good faith. We have not
performed an audit or other tests to examine to check the veracity of the information provided tous. The work undertaken to form our opinion included the followings:•

Creation of the Issuer-specific DNV’s Assessment Protocol which is attempted to be applied to
the Green IPO Framework with respect to the above and in Schedule-2 that contribute to thisassessment;•

Assessment of evidential documents provided by the Issuer regarding the issuance of
applicable IPO, and supplemental assessment with comprehensive desktop surveys to theIssuer. These checks are conducted, referring to the current assessment best practices andstandard methodologies.

•

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

Reporting of findings against each element of the eligibility criteria.

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RENEWABLE JAPAN CO., LTD. GREEN IPO FRAMEWORK SECOND PARTY OPINION

VI Findings and DNV’s opinion
DNV’s findings and opinions are as follows.

(1) Use of Proceeds
DNV has confirmed that Renewable Japan plans to allocate all the funds raised by the Green IPO
to the development or new acquisition of solar power plants that are renewable energy as definedin the following eligibility criteria as indicated by GBP, etc.

Category of Green Project“Renewable Energy”
Specifically, the following Eligible Green Projects:

Project: “Solar Power Generation”(Business related to the development or new acquisition of solar power plants)(2) Process for Project Evaluation and Selection
Through the review, DNV confirmed that the eligible green nominated project candidates listed in
Schedule-1 is development or acquisition new renewable energy solar power plants as a businessactivity to realize a sustainable society that pays attention to the global environment through thepromotion of renewable energy, based on Renewable Japan's three missions, "Create high-quality
renewable energy power plants and operate them safely," "Leverage financial know-how to
expand the use of renewable energy," "Revitalize local communities with renewable energy."
DNV also confirmed that the business activities of Renewable Japan, which is actively involved in
the realization of a low-carbon society through the development and operation of renewableenergy facilities, mainly solar power plants, are consistent with the philosophy, policies, andenvironmental initiatives of Renewable Japan.
nBased on the results of this due diligence, the eligibility of the nominated project and its
compatibility with the Basic Environmental Policy is determined at the Management Committee, a
corporate body whose purpose is to deliberate on matters entrusted by the Board of Directors
regarding important issues related to business execution and other important issues related tocorporate management.
Management meetings are convened by the President and Representative Director and attended
by full-time directors, executive officers, general managers of each division, full-time corporate
auditors, and others.

(3) Management of Proceeds
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RENEWABLE JAPAN CO., LTD. GREEN IPO FRAMEWORK SECOND PARTY OPINIONDNV confirmed the methodologies to track and manage funds until the allocation of funds raised
by Renewable Japan's Green IPO is completed. Renewable Japan will manage the funds raisedby the Green IPO according to an internal process to ensure that the funds raised are not used
for any other purpose or mixed up with other projects. The funds raised by the Green IPO will be
managed in Renewable Japan's bank account and will be allocated exclusively to the green
projects.
【How to track and manage the funds】
When Renewable Japan allocates funds raised by the Green IPO to an eligible project, theFinance & Accounting Division will conduct a preliminary check of the fund flow using a
spreadsheet. After the preliminary check of the fund flow, the funds raised by the Green IPO willbe allocated upon approval by the General Manager of the Finance & Accounting Division.
After the funds raised by the Green IPO have been allocated, the Finance & Accounting Division
will track the funds using a spreadsheet and report to the General Manager of the Finance &Accounting Division on a case-by-case basis. Renewable Japan will allocate the entire amount offunds raised by the Green IPO to the nominated project as soon as possible or at the earliest. If
the amount of funds raised by the Green IPO is not immediately or temporarily allocated to anominated project, Renewable Japan will disclose on its website at least once a year how thebalance of unallocated funds is expected to be managed and will endeavor to allocate
unallocated funds to other green projects as soon as possible. Renewable Japan will identify
unallocated funds and manage that same amount in cash and cash equivalents until the funds
are allocated to eligible projects.
【Management of unallocated funds】
If unallocated funds arise due to changes in the nominated project or other reasons, Renewable
Japan will manage them in cash or cash equivalents and endeavor to report them promptly.
Until the allocation of the funds is determined, Renewable Japan plans to disclose to investors in
the third-party assessment report, etc., that they will manage the funds in cash or cash
equivalents.
As aforementioned, no assurance is provided by DNV regarding the financial performance of the
new shares to be issued in the Green IPO, the value of any investment, or the long-term
environmental benefits.

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RENEWABLE JAPAN CO., LTD. GREEN IPO FRAMEWORK SECOND PARTY OPINION(4) Reporting
DNV confirmed that Renewable Japan would report on the allocation of funds raised by theGreen IPO and publish the report on its website.
Renewable Japan plans to report the specific items as of 31 December of each year required by
Green IPO (e.g., project progress, allocation status, environmental improvement effects, etc.)
on the Renewable Japan website at least annually. Renewable Japan will also disclose at thesame time the amount or balance of unallocated funds, if any, the scheduled time of allocation,and the temporary management process of the unallocated funds.
The reporting will include the following information.
• The amount of allocated funds raised by Green IPO• The total balance of funds raised by Green IPO• Performance indicators of the project (e.g., power generation capacity, electricity generation)• Indicators of the environmental contribution of the project (e.g., CO2 reduction)

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RENEWABLE JAPAN CO., LTD. GREEN IPO FRAMEWORK SECOND PARTY OPINION

Results of Assessment
Based on the documents and information provided by Renewable Japan, DNV expresses its
opinion that the Framework satisfies the four core principles that are defined in the Protocol (seeSchedule-2), and therefore meets the key requirements of the four core elements defined such as
the GBP, etc. In addition, DNV is of the opinion that Renewable Japan's green investment policy is
consistent with the definition and objectives of green finance, which "enables capital raising andinvestments in new or existing projects to realize environmental benefits."

DNV Business Assurance Japan K.K.
17 November 2021

Naoki Maeda
Managing Director
DNV GL Business Assurance Japan K.K.

Masato Kanedome

Hisashi Hashimoto

Project Leader

Assessor

DNV GL Business Assurance Japan K.K.

DNV GL Business Assurance Japan K.K.

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RENEWABLE JAPAN CO., LTD. GREEN IPO FRAMEWORK SECOND PARTY OPINION

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 and indepth 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 and technologicalforesight.
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.

Disclaimer
Responsibilities of the Management of the Issuer and the Second-Party Opinion Providers, DNV: The management ofIssuer 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 the Issuer management and other interested stakeholders in the Bond as towhether 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 the Issuer. DNV is not responsible for any aspect of the nominated assets
referred to in this opinion and cannot be held liable if estimates, findings, opinions, or conclusions are incorrect. Thus, DNV
shall not be held liable if any of the information or data provided by the Issuer’s management and used as a basis for thisassessment were not correct or complete.

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RENEWABLE JAPAN CO., LTD. GREEN IPO FRAMEWORK SECOND PARTY OPINION

Schedule-1 Renewable Japan Green IPO Nominated ProjectGreen Project

Renewable energy

Project

Project Overview(Environmental Impact)
Solar power generation[[CO2 emission (or reduction)]

Development or new acquisition of solar power plants

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RENEWABLE JAPAN CO., LTD. GREEN IPO FRAMEWORK SECOND PARTY OPINION

Schedule-2 Renewable Japan Green IPO Framework Eligibility Assessment Protocol
The checklist below (GF-1 to GF-4) is a DNV Protocol created for the Green IPO Framework Eligibility Assessment of Renewable Japan
based on four core elements, defined such as the GBP, etc. which are widely recognized in the green finance market. Here “Green
Finance” equate with “Green IPO”.

GF-1 Use of Proceeds
Ref.

Criteria

Requirement

Work undertaken

DNV Findings

1aType of finance

The green finance must fall in
one of the following categories,
as defined by GBP.

Confirmed documents:

Through the assessment, DNV confirmed that Renewable
Japan Green IPO falls into the category below.

- (Standard) Green Finance- Green Revenue Finance- Green project finance- ・Other
1b

Project
categories

The cornerstone of a Green
Finance is the utilization of theproceeds of the finance whichshould be appropriately
described in the legal
documentation for the security.

- Renewable Japan GreenIPO Framework- (Standard) Green Finance (Green IPO)

Discussions withRenewable Japan

Confirmed documents:- Renewable Japan GreenIPO Framework
Discussions withRenewable Japan

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DNV confirmed that Renewable Japan Green IPO Projects
identified in the Framework fall into the following
representative eligible categories classified by GBP.
“Renewable energy”
Specifically, the following Renewable Japan Green IPO Project
candidates.

RENEWABLE JAPAN CO., LTD. GREEN IPO FRAMEWORK SECOND PARTY OPINION

Ref.

Criteria

Requirement

Work undertaken

DNV Findings
Project: “Renewable energy (Solar power generation)”(Business related to the development or new acquisition ofsolar power plants)

1c

1d

Environmental
benefits

Refinance share

All designated Green Project
categories should provide clear
greenly sustainable benefits,
which, where feasible, will bequantified or assessed by theissuer.

Confirmed documents:

In the event that a proportionof the proceeds may be used
for refinancing, it isrecommended that issuers
provide an estimate of theshare of financing vs.
refinancing, and whereappropriate, also clarify whichinvestments or project
portfolios may be refinanced.

Discussions withRenewable Japan- Renewable Japan GreenIPO Framework
Discussions withRenewable Japan

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DNV has confirmed that the execution of eligible green
projects has environmental benefits in CO2 emissions by
developing new acquisition of solar power plants.
The quantitative assessment of the direct environmental
benefits of operational solar power generation as a candidate
allocation project will be assessed on an allocation projectbasis.
DNV has confirmed that it has no plans to refinance with thefunds raised by Renewable Japan.

RENEWABLE JAPAN CO., LTD. GREEN IPO FRAMEWORK SECOND PARTY OPINION

GF-2 Process for Project Evaluation and Selection
Ref.

Criteria

2a

Investment
decision process

Requirement

Work undertaken

DNV Findings

The issuer of a Green Financeshould outline the decisionmaking process it follows todetermine the eligibility of
projects using Green Financeproceeds. This includes, without
limitation:
・ A process to determine how the
projects fit within the eligible
Green Projects categories
identified in the Green FinancePrinciples;
・ The criteria making the projects
eligible for using the Green
Finance proceeds; and・ The environmental green
objectives

Confirmed documents:

DNV confirmed that Renewable Japan plans to select- Renewable Japan
Green IPO Framework

Renewable Japan Green IPO Framework.

- Business Process
Guidelines forDevelopment Projects
and Purchase Projects
Discussions withRenewable Japan

Renewable Japan Eligible Green Projects based on the- In selecting eligible projects, the Development Division takes
the lead and consults with the various divisions (those
responsible for project management, financing, andconstruction, sale, and operation management of the power
plant). After that, a business plan is drawn up, approved by
the Management Committee and the Board of Directors.
- In determining the eligibility of the project, Renewable Japanplans to conduct due diligence on the project, including"evaluation of the site for the power plant," "formulation of
the development plan," and "establishment of the
management system," and to address negativeenvironmental and social impacts.
- Including the results of due diligence, the Management
Committee will determine the eligibility of the project and its
compatibility with the basic policy on the environment.
- Renewable

Japan'sbusiness

activities,

which

actively

contribute to the realization of a low-carbon society throughPage 20 of 23

RENEWABLE JAPAN CO., LTD. GREEN IPO FRAMEWORK SECOND PARTY OPINION

Ref.

Criteria

Requirement

Work undertaken

DNV Findings
the development and operation of renewable energy facilities,
mainly solar power plants, are consistent with Renewable
Japan's philosophy, policies, and environmental initiatives.

2b

Issuer’s
environmental
governanceframework

In addition to criteria andcertifications, the information
published by issuers regarding thegreen finance process is also
considered the quality of
performance of the issuer's
framework and environmental
sustainability.

Confirmed documents:- Renewable Japan
Green IPO Framework
Discussions withRenewable JapanDNV has confirmed through the documents and interviews
that Renewable Japan is promoting CSR initiatives thatincorporate its basic environmental policies and SDGs and that
this Green IPO is in line with those policies and initiatives.
Those initiatives have environmental sustainability in terms of
CO2 reduction.

Renewable Japan
websiteGF-3 Management of proceeds
Ref.

Criteria

3a

Tracking
procedure-1

Requirement

Work undertaken

DNV Findings

The net proceeds of Green Financeshould be credited to a subaccount, moved to a sub portfolio
or otherwise traced by the issuer in
an appropriate manner andattested to by a formal internal
process that will be linked to the

Confirmed documents:

Renewable Japan plans to manage the proceeds from Green IPO
in the general account of Renewable Japan and to fully allocate
to the Renewable Japan Eligible Green Project defined by the
Framework promptly.
DNV has confirmed that Renewable Japan has the appropriate
financing process to manage the proceeds and that the status ofallocation of the proceeds can be tracked.

- Renewable Japan
Green IPO Framework- Internal fundmanagement process

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RENEWABLE JAPAN CO., LTD. GREEN IPO FRAMEWORK SECOND PARTY OPINION

Ref.

3b

Criteria

Tracking
procedure-2

Requirement

Work undertaken

issuer’s lending and investment
operations for Green Projects.

Discussions withRenewable Japan

So long as the Green Finance areoutstanding, the balance of the
tracked proceeds should beperiodically reduced by amounts
matching eligible green
investments or loan disbursements
made during that period.

Confirmed documents:- Renewable Japan
Green IPO Framework- Internal fundmanagement process- Spreadsheet

DNV Findings

DNV confirmed that the proceeds' allocation status (allocation
amount and balance) would be controlled and adjusted byRenewable Japan's internal fund management process andspreadsheet. When it is allocated, the allocation amount andindividual allocation details will be recorded. DNV has confirmedthat this information will be reported annually on the Renewable
Japan website.

Discussions withRenewable Japan3c

Temporaryholdings

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

Confirmed documents:- Renewable Japan
Green IPO Framework
Discussions withRenewable Japan

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DNV confirmed that unallocated funds would be managed in theform of cash and cash equivalents. DNV also confirmed that theamount or balance of unallocated funds, the expected timing of
allocation, and the method of temporary management of
unallocated funds would be disclosed simultaneously.

RENEWABLE JAPAN CO., LTD. GREEN IPO FRAMEWORK SECOND PARTY OPINION

GF-4 Reporting
Ref.

Criteria

4aPeriodical
reporting

Requirement

Work undertaken

DNV Findings

In addition to reporting on the useof proceeds and the temporary
investment of unallocatedproceeds, issuers should provide atleast annually a list of projects towhich Green Finance proceeds
have been allocated including

Confirmed documents:

DNV confirmed that Renewable Japan plans to report the- Renewable Japan
Green IPO Frameworkspecific items as of 31 December of each year required by

Discussions withRenewable Japanenvironmental improvement effects, etc.) on the Renewable

Green IPO (e.g., project progress, allocation status,
Japan website at least annually.
The reporting will include the following information.

- confidentiality and/or competitive
considerations, where possible-a brief description of the projects
and the amounts disbursed, as wellas the expected environmentally
sustainable impact.

・ The amount of allocated funds raised by Green IPO
・ The total balance of funds raised by Green IPO・ Performance indicators of the project (e.g., power
generation capacity, electricity generation)

・ Indicators of the environmental contribution of the project(e.g., CO2 reduction)

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