Overview
SBI ARUHI has identified “materiality” issues as key management priorities from an ESG perspective to better connect our social and environmental initiatives with its business strategies, ultimately leading to the growth of both society and our company.
In our social initiatives, we provide housing loans tailored to the diverse needs of our customers (including accessible housing for the elderly and people with disabilities) and offer services tailored to their life stages. We also contribute to regional revitalization in collaboration with local governments and businesses.
In our environmental initiatives, we provide housing loans for high-quality pre-owned housing and eco-friendly housing that meet specific technical standards, aiming to contribute to building a circular society where quality housing is passed on and used for many years.
Aiming to provide a broad array of products and services through finance, SBI ARUHI has developed Sustainable Finance Framework (the “Framework”).
Going forward, based on the Framework, SBI ARUHI plans to raise funds through green bonds/loans, social bonds/loans, and sustainability bonds/loans (collectively, "Sustainable Finance"). We believe that this fundraising will contribute to decarbonized society, address social issues, and build a sustainable society.
Developed in accordance with principles including the Green Bond Principles (GBP) 2025 and Social Bond Principles (SBP) 2025 defined by the International Capital Market Association (ICMA), this Framework has obtained a second-party opinion from Rating and Investment Information, Inc. (R&I) regarding its conformity to these principles.
Use of Proceeds under the Sustainable Finance Framework
Proceeds raised under this Framework will be allocated to new for investments and refinancing of existing projects that qualify as green or social projects, as described below:
| Program | Category | Technical standard | Applicability | Related SDGs | |
|---|---|---|---|---|---|
| Primary energy consumption grade | Insulation grade | ||||
| New houses |
|
||||
| “Flat 35” S |
ZEH
|
ZEH | Equivalent to 6 | Equivalent to 5 | |
|
Interest Plan A
(Energy saving) |
Approved low-carbon housing | 6 | 5 | ||
| Housing with insulation grade 5 or higher and primary energy consumption grade 6 | 6 | 5 or higher | |||
| Approved performance improvement plan housing | 6 | 5 | |||
|
Interest Plan A
(Durability and modifiability) |
Long-life quality housing | 6 | 5 | ||
| Pre-owned houses | |||||
| “Flat 35” S |
ZEH
|
ZEH | Equivalent to 6 | Equivalent to 5 | |
|
Interest Plan A
(Durability and modifiability) |
Long-life quality housing | 6 | 5 | ||
- * “Flat 35” S technical standards apply.
| Program | Category | Technical standard | Applicability | Related SDGs |
|---|---|---|---|---|
| The grade of measures for attending the elderly | ||||
| New houses |
|
|||
| “Flat 35” S |
Interest Plan A
(barrier-free accessibility) |
Housing with measures for attending the elderly, etc., grade 4 or higher (grade 3 is acceptable for exclusive parts of condominium buildings.) |
4 or higher (3 or higher) |
|
|
Interest Plan B
(barrier-free accessibility) |
Housing with measures for attending the elderly, etc., grade 3 or higher | 3 or higher | ||
| Pre-owned houses | ||||
| “Flat 35” S |
Interest Plan A
(barrier-free accessibility) |
Measures for attending the elderly, etc. for housing, grade 3 or higher | 3 or higher | |
|
Interest Plan B
(barrier-free accessibility) |
Measures for attending the elderly, etc. for housing, grade 2 or higher | 2 or higher | ||
- * “Flat 35” S technical standards apply.
Management of Proceeds
SBI ARUHI's Finance Department manages the proceeds raised under this Framework and allocates them to eligible projects through an internal management system. The Company manages the total balance of Sustainable Finance proceeds ensure it does not exceed the total balance of the eligible project portfolio.
Should the total balance of Sustainable Finance proceeds exceed the balance of the eligible project portfolio, the excess amount will be managed in cash and cash equivalents. Regarding re-allocation, funds will be re-allocated to other eligible projects that meet the eligibility criteria.
Reporting
SBI ARUHI will annually disclose an allocation report and an impact report on its website and through other channels. The initial disclosure is scheduled to be made within a year of raising the proceeds. Furthermore, any significant changes after the allocation of the proceeds funds will be disclosed in a timely manner.