Aimed at financing increased production of SiC power semiconductors to support decarbonization
Mitsubishi Electric Corporation has announced that it will issue green bonds for the first time to raise money to build a silicon carbide (SiC) power semiconductor plant and upgrade related manufacturing facilities that process products that can contribute to decarbonization.
Green bonds are any type of debt instrument issued by a company or municipality for the exclusive purpose of financing or refinancing green projects at home or abroad.
In preparation for the issuance, Mitsubishi Electric has formulated a Green Bond Framework that specifies its policies regarding the use of proceeds, project evaluation and selection process, proceeds management and reporting, as defined in the Green Bond Principles 2021 issued by the International Capital Market Association (ICMA) and the Green Bond Guidelines 2022 issued by the Japanese Ministry of the Environment. The company’s Green Bond Framework has been evaluated by an independent third party, Rating and Investment Information, Inc. (R&I), and has been confirmed to be in accordance with the above principles and guidelines.
Mitsubishi Electric has also filed an amended registration statement for the issuance of the bonds with the Director General of the Kanto Local Finance Bureau.
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Mitsubishi Electric has positioned sustainability as a cornerstone of its overall operations, including initiatives to address climate change and other pressing issues facing modern society. This commitment to sustainability is reflected in the company’s Environmental Sustainability Vision 2050 and Environmental Declaration “protect the air, land and water with our hearts and technologies to enable a better future for all.” Mitsubishi Electric has committed to achieving net-zero GHG emissions from factories and offices by FY 2031 and net-zero GHG emissions across its value chain by FY 2051, and is working to create and grow businesses that contribute to carbon neutrality. In the future, Mitsubishi Electric expects to accelerate efforts to contribute to achieving Sustainable Development Goals (SDGs) in society for greater sustainability.