Sumitomo Mitsui Trust Bank signs loan agreement with Sumitomo Heavy Industries
Sumitomo Mitsui Trust Bank, Limited announces the signing of a loan agreement with Sumitomo Heavy Industries, Ltd., the company said in its release. The loan is in accordance with the Principles for Sustainability Linked Loanestablished by Loan Market Association.
The Sustainability Linked Loan aims to promote and support environmentally and socially sustainable economic activity and economic growth of a client company by setting sustainability performance targets (hereinafter, “SPTs”) which align with the sustainability goals set out in client borrowers' CSR strategies, by linking lending terms and borrowers' performance with SPTs, and motivating them to achieve the SPTs.
The aim of this loan is to support SHI's activities toward realization of a sustainable society by setting targets for “reducingcarbon dioxide emissions during production andtransportation of products” and “increasing the ratio of environmentally-friendly productsin net sales” as SPTs.