Sustainability finance refers to financing projects that meet both the Green Bond Principles and the Social Bond Principles. There are also growing variety of funding methods which does not specify the use of proceeds - i.e. bonds and loans that link the issuer's improvement in sustainability performance to the terms of the funding, or, positive impact finance in which both borrowers and lenders are committed to addressing the SDGs of the overall corporate activities. R&I provides Second Opinions for such financing on their alignment with various principles related to SDGs/ESG finance, not limited to either environmental conservation or social contribution.
(*1) Includes the sponsor of the project and the originator of the securitized project, etc.
ESG-related services is not the Credit Rating Business, but one of the Ancillary Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining to such business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business.