Sustainable finance
Sustainable finance
SBI ARUHI contributes to realize a sustainable society by enabling mutual growth of the society and the company, connecting our social and environmental initiatives with our business strategy to attain our Materiality of our priority management theme.
We procure funds for these initiatives through sustainable finance.
Issuance of Green RMBS
SBI ARUHI issued the first Green RMBS (*1*2) in Japan, procuring funds for ”Super Flat (*3)” loans for residential properties that satisfy the “technical standards on energy saving.”
Furthermore, SBI ARUHI has established the uses of funds procured through Green RMBS and mechanisms and management systems for procuring funds as the SBI ARUHI Green Finance Framework. The framework was assessed by the Japan Credit Rating Agency as conforming to "Green Bond Principles", "Green Loan Principles", "Green Bond Guidelines" and "Green Loan Guidelines", and received an overall evaluation of “Green 1 (F)”, which is the highest evaluation.
- ※1 See the “Domestic Issuance List” of “Green Loans on the Green Finance Portal” operated by the Ministry of the Environment. (http://greenfinanceportal.env.go.jp/en/)
- ※2 RMBS is an abbreviation of Residential Mortgage-Backed Securities. Refers to securities issued with the backing of residential loan claims. Green RMBS refer to those issued with housing loans for acquiring properties expected to have a high environmental improvement effect as the underlying assets.
- ※3 ”Super Flat” is an original SBI ARUHI product using the housing loan insurance (for guarantee program) system (Flat 35 (Guarantee Program)) in which “the Japan Housing Finance Agency paying an insurance claim to a private-sector financial institution when a customer is unable to repay a housing loan provided by a private-sector financial institution.”
Defining Sustainable Finance Framework
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. SBI ARUHI strives to "Enriching housing and lifestyles for more people" through its social initiatives, while "Contributing to the creation of a circular society" through its environmental initiatives. 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.
The Framework specifies the use of proceeds, the process for project evaluation and selection, the management of proceeds, reporting, and other related matters. Developed in accordance with relevant 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.