Marui Group Co., Ltd. (2022 Social Bonds)
Type of Engagement: Annual Review
Date: June 23, 2023
Engagement Team:
Kosuke Kanematsu, kosuke.kanematsu@sustainalytics.com, (+81) 3 4571 2277
Yukie Osari, yukie.osari@sustainalytics.com, (+81) 3 4520 2192

Introduction
Marui Group Co., Ltd. (“Marui Group”) issued social bonds in March 2022 (JPY 1,300 million 3-Year straight
Social Bond, hereinafter the “straight Social Bond 2022”), June 2022 (JPY 121 million 1-Year digital SocialBond, hereinafter the “1st digital Social Bond 2022”) and October 2022 (JPY 119 million 1-Year digital Social
Bond, hereinafter the “2nd digital Social Bond 2022”), which were aimed at financing projects related to Accessto Essential Services (financing and financial services) and Socioeconomic Advancement and Empowerment(equitable access to and control over assets, services, resources, and opportunities; equitable participationand integration into the market and society, including reduction of income inequality). As of 31 March 2023,
the proceeds were allocated to microfinance projects. In June 2023, Marui Group engaged Sustainalytics toreview the projects funded through the straight Social Bond 2022, the 1st digital Social Bond 2022 and the 2nddigital Social Bond 2022 and assess whether the projects met the Use of Proceeds criteria and the Reportingcommitments outlined in the Marui Group Social Bond Framework (the “Framework”). 1

Evaluation Criteria
Sustainalytics evaluated the projects funded with proceeds from March 2022 to March 2023 based onwhether the projects:
1.
2.

Met the Use of Proceeds and Eligibility Criteria outlined in the Framework; andReported on the impact indicators for each Use of Proceeds criteria outlined in the Framework.

Table 1 lists the Eligibility Criteria and associated impact indicators for the Use of Proceeds category towhich the proceeds were allocated.
Table 1: Use of Proceeds, Eligibility Criteria, and associated impact indicators
Use of Proceeds

Eligibility Criteria

Impact indicators

Access to Essential Services(financing and financialservices)

Loans to companies which
operate microfinance business.
Specifically, costs of loans toemerging countries through Gojo& Company, Inc. and CROWD
CREDIT, Inc.

【Output】◆ Overview of loans to Gojo &Company◆ Overview of loans to funds
through Crowd Credit【Outcome】◆ The number of final beneficiaries
through Gojo & Company andeligible funds of Crowd Credit◆ Total loans to final beneficiaries

Socioeconomic Advancementand Empowerment(equitable access to andcontrol over assets, services,resources, and opportunities;
equitable participation andintegration into the market andsociety, including reduction ofincome inequality)

1*The Group will also report otheractivities by Gojo & Company
and funds through Crowd Credit
to the extent practicable basedon disclosed materials. Efforts toimprove financial literacy andtheir effects will be also reported.

Marui Group Social Bond Framework (Japanese only) is available at: https://www.0101maruigroup.co.jp/pdf/settlement/22_0308/22_0308_3.pdf© Sustainalytics 2023

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

Independence and Quality Control
Sustainalytics, a leading provider of ESG and corporate governance research and ratings to investors,
conducted the verification of Marui Group’s straight Social Bond 2022, 1st digital Social Bond 2022 and 2nddigital Social Bond 2022 Use of Proceeds. The work undertaken as part of this engagement included collectionof documentation from Marui Group employees and review of documentation to confirm the conformancewith the Framework.
Sustainalytics has relied on the information and the facts presented by Marui Group with respect to theprojects in the eligible categories. Sustainalytics is not responsible nor shall it be held liable if any of theopinions, findings, or conclusions it has set forth herein are not correct due to incorrect or incomplete data
provided by Marui Group.
Sustainalytics made all efforts to ensure the highest quality and rigor during its assessment process andenlisted its Sustainability Bonds Review Committee to provide oversight over the assessment of the review.

Conclusion
Based on the limited assurance procedures conducted,2 nothing has come to Sustainalytics’ attention thatcauses us to believe that, in all material respects, the reviewed bond projects, funded through proceeds ofMarui Group Co., Ltd.’s straight Social Bond 2022, 1st digital Social Bond 2022 and 2nd digital Social Bond2022, are not in conformance with the Use of Proceeds and Reporting Criteria outlined in the Marui Group
Social Bond Framework. Marui Group has disclosed to Sustainalytics that the proceeds of the straight Social
Bond 2022, the 1st digital Social Bond 2022 and the 2nd digital Social Bond 2022 were fully allocated as at 31
March 2023.

Detailed Findings
Table 2: Detailed Findings
Evaluation
Criteria

Procedure Performed

Factual Findings

Use ofProceeds
Criteria

Verification of the projects funded by thestraight Social Bond 2022, the 1st digital Social
Bond 2022 and the 2nd digital Social Bond2022 from March 2022 to March 2023 todetermine if the projects were aligned with theUse of Proceeds Criteria outlined in the MaruiGroup Social Bond Framework and above inTable 1.
Verification of the projects funded by thestraight Social Bond 2022, the 1st digital Social
Bond 2022 and the 2nd digital Social Bond2022 from March 2022 to March 2023 todetermine if the impact of the projects wasreported in line with the impact indicators
outlined in the Marui Group Social Bond
Framework and above in Table 1.

All projects reviewed
complied with the Useof Proceeds criteria.

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

Error orExceptions
Identified
None

None

2 Sustainalytics limited assurance process includes reviewing the documentation relating to the details of the projects that have been funded, including

description of projects, and project impact, which were provided by the Issuer. The Issuer is responsible for providing accurate information. Sustainalytics
has not conducted on-site visits to projects.
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Marui Group Co., Ltd.

Appendix
Appendix 1: Allocation of Social Bond Proceeds3

Bonds

Net Bond
ProceedsAllocation(million JPY)

Straight Social Bond 20224

1,285

1st digital Social Bond 20225

96

2nd digital Social Bond 20226

88

Total Net Bond Proceeds Allocated:

1,471

Total Net Bond Proceeds from Social Bond Issuance:

1,471

Use of Proceeds Category
Access to Essential Services(financing and financialservices)
Socioeconomic Advancementand Empowerment(equitable access to and control
over assets, services, resources,and opportunities; equitableparticipation and integration into
the market and society,including reduction of incomeinequality)

Total Net Bond Proceeds Unallocated:

0Appendix 2: List of impact indicators7
Use of Proceeds Category

Impact Indicators

Access to Essential Services(financing and financialservices)
Socioeconomic Advancementand Empowerment(equitable access to and control
over assets, services, resources,and opportunities; equitableparticipation and integration into
the market and society,including reduction of incomeinequality)【Outcome】◆ The number of final beneficiaries through Gojo &Company and eligible funds of Crowd Credit:
approximately 33,000 people◆ Total loans to final beneficiaries: 1,500 million JPY

3 The amount is rounded down to million JPY.
4 Social bond issuance amount of 1,300 million JPY less issuance expenses
5 Social bond issuance amount of 121 million JPY less issuance expenses
6 Social bond issuance amount of 119 million JPY less issuance expenses
7Impact Reporting by Marui Group is available at (Japanese only): https://www.0101maruigroup.co.jp/ir/pdf/impactbook/2023/impactbook_all.pdf
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Marui Group Co., Ltd.

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Marui Group Co., Ltd.

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