Mitsui O.S.K. Lines, Ltd. concluded a commitment line agreement through a transition-linked loan with Sumitomo Mitsui Banking Corporation, according to the company's release. This is Japan's first global commitment line agreement using a transition-linked loan.
This loan is a financial instrument designed to assist companies that are taking action on climate change and are committed to reducing greenhouse gas (GHG) emissions in accordance with a long-term strategy to achieve a decarbonized society. This is the third such loan that MOL has procured, following previous financing arrangements for the LNG bunkering vessel Gas Vitality and the bulk carrier Shofu Maru equipped with the Wind Challenger, which converts wind power into propulsive force. It marks the first time MOL used this approach to procure funds not tied to a specific vessel.
MOL has established a transition finance framework that sets sustainability performance targets for the goals set forth in "the MOL Group Environmental Vision 2.1," The eligibility of the loan has been assessed in a third-party evaluation by "DNV Business Assurance Japan" to ensure that it complies with all standards.
The MOL Group has set a goal of achieving net zero emissions by 2050. Through this loan, the group will carry forward its environmental strategy from the aspect of financing and contribute to the realization of a low-carbon/decarbonized society through concerted group-wide efforts.