Overview
SBI ARUHI has defined materiality as management priority themes from an ESG perspective to align our social and environmental endeavors with business strategies, and 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 user-friendly houses 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 preowned houses and eco-friendly housing that meet specific technical standards, aiming to contribute to the creation of a circular society where good houses are passed on and used for many years.
With the aim of providing a broad array of products and services through finance in these initiatives, SBI ARUHI has defined the Sustainable Finance Framework.
Based on the Framework, SBI ARUHI plans to raise funds through green bonds/green loans, social bonds/social loans, and sustainability bonds/sustainability loans (collectively, "sustainable finance"). We expect that this helps decarbonize 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 funds under Sustainable Finance Framework
The procured funds under this Framework are expected to be used for investments and refinancing of new and existing projects qualified as green projects 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 | ||
| Preowned 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 | ||
| Preowned 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 Funds
SBI ARUHI's financial department manages funds procured in this Framework and allocates them to eligible projects using an internal management system. SBI ARUHI manages the total balance of procured sustainable finance in a way not to exceed the balance of the portfolio of eligible projects.
Should the total balance of procured sustainable finance exceed the balance of the portfolio of eligible projects, the excess amount will be managed in cash and cash equivalent. As for re-allocation, funds are re-allocated to another eligible project that meets the eligibility criteria.
Reporting
SBI ARUHI discloses a fund allocation status report and impact report annually on its website and through other channels. The initial disclosure will be made within a year of procuring funds. Any significant changes after the allocation of procurement funds will be disclosed as appropriate.