Toyobo : Notice regarding the Conclusion of a Positive Impact Finance Loan Agreement (159KB)

September 27, 2023

To whom may it concern,
Name of company:	Toyobo Co., Ltd.
Name of representative:	Ikuo Takeuchi,
	President & Representative Director
(Stock code: 3101, Prime Market of the Tokyo Stock Exchange)
Contact:	Yukiko Mochida,
	General Manager,

Corporate Sustainability Department (TEL [phone])

Hidekazu Takahashi,

General Manager, Finance Department (TEL [phone])

Notice regarding the Conclusion of a Positive Impact Finance Loan Agreement

Toyobo Co., Ltd. (hereinafter "Toyobo") and Sumitomo Mitsui Trust Bank, Limited concluded a "Positive Impact Finance (with unspecified use of funds)" loan agreement (hereinafter "the Agreement") that is in line with the Principles for Positive Impact Finance(*1) proposed by the United Nations Environment Programme Finance Initiative (hereinafter "UNEP FI")(*2).

1. Aim and background of Positive Impact Finance

Positive Impact Finance is intended to support corporations' activities of which we comprehensively analyze and evaluate the impacts (both positive and negative) related to the environment, society and economy. The most notable feature of Positive Impact Finance is that the degree of contribution from corporate activities, products and services in achieving Sustainable Development Goals (SDGs) is used as an evaluation indicator and monitored based on publicly disclosed information, and that we support corporations' activities to achieve these goals through engagement.

In May 2022, Toyobo anticipated change in the future business environment and formulated the Sustainable Vision 2030, showing the ideal state of Toyobo Group in 2030, sustainability indicators and action plans, based on its corporate philosophy of "Jun-Ri-Soku-Yu" (Adhering to reason leads to prosperity).

Through the evaluation of Positive Impact Finance, Toyobo's goals established under "Sustainable Vision 2030" and its initiatives for achieving those goals were assessed as being able to contribute to solving social issues, and Toyobo has concluded the Agreement. Toyobo will earnestly work for "Realizing sustainable growth" through the measures established at this time.

1

2. Measures, goals and KPIs that Toyobo works on through Positive Impact Finance

Theme

Content

Goals and Indicators (KPIs)

SDGs

(a) Thorough safety, disaster

prevention and quality assurance

Goals

i. Achieve zero industrial accidents in

workplaces

ii. Achieve zero product-related

accidents

Indicators (KPIs)

i. Number of serious accidents, number

of fires or explosions and number of spill

accidents

ii. Number of product-related accidents

・Ensure a safe and secure

(b) Realization of procurement and

Employee well-

working environment and the

logistics that involve fair and sincere

safety of people

transactions, respect human rights,

being and

・Prevent infringement on

are environmentally friendly, and

human rights in

human rights and respond to

consider impact on both society and

the supply chain

climate change in the supply

the environment

chain

Goals

・Maintain a ratio of 90% or above of

CSR procurement surveys returned

(conducted once every two years)

・Maintain 100% engagement with

business partners with identified issues

Indicators (KPIs)

・Ratio of CSR procurement surveys

returned (conducted once every two

years)

・Status of implementation of

engagement with business partners with

identified issues based on the surveys

(a) Provide solutions in the field of

infectious diseases

Goal

Reduce the number of patients

By 2030, 10 million tests conducted per

A healthy

with infectious

diseases, and

year by the provision of infectious

lifestyle and

improve

QOL

for dialysis

disease diagnostics.

health care

patients

Indicator (KPI)

Number of tests conducted per year by

the provision of infectious disease

diagnostics.

2

			(b) Provide materials essential for
			QOL improvement and medical
			treatment
			Goal
			By 2030, 250,000 dialysis patients per
			year provided with dialysis membranes
			Indicator (KPI)
			Number of dialysis patients provided
			with dialysis membranes
			Provide product materials necessary
			for advancing digital technology as
			well as solutions to support the
			manufacturing process
Smart
communities	Contribute to the realization of a		Goal
and comfortable	digital society		By 2030, Sales of product groups
spaces			supporting DX increased by 50%
			compared with FY2021
			Indicator (KPI)
			Sales of product groups supporting DX
			(a) Achieve carbon neutrality
			Goals
			i. Cutting GHG emissions (Scopes 1 and
			2) by 27.0% compared with FY2021 by
			FY2031 and achieve net zero GHG
			emissions by FY2051
			ii. Cutting GHG emissions (Scope 3
			(categories 1 and 11)) by 12.5%
			compared with FY2021 by FY2031
A decarbonized	Realize a decarbonized society		Indicators (KPIs)
and circular	and circular society through		i. GHG emissions (Scopes 1 and 2)
society	business operations		ii. GHG emissions (Scope 3 (categories
			1 and 11))
			(b) Increase green ratio of film
			products
			Goal
			Achieve a ratio of 60% of green films by
			2030
			Indicator (KPI)
			Ratio of green films

3

3. Others

With respect to the procedures related to the evaluation from Japan Credit Rating Agency, Ltd. in concluding the Agreement, Toyobo obtained a third-party opinion concerning compliance with the Principles for Positive Impact Finance and reasonableness of the evaluation indicators. Please refer to the following link for details.

(External link)

https://www.jcr.co.jp/greenfinance/*In Japanese only

(*1) The Principles for Positive Impact Finance

The Principles for Positive Impact Finance was developed by UNEP FI in January 2017 as a financial framework for achieving the SDGs. Companies disclose the level of contributions to achieving SDGs through KPIs. Banks then provide funding by evaluating the positive impact observed from these KPIs that is intended to guide the borrowers to increase the positive impact and reduce the negative impact.

The lending bank, as a responsible financial institution, will check if the impact is continuing or not by monitoring the indicators.

(*2) The United Nations Environment Programme Finance Initiative (UNEP FI)

The United Nations Environment Programme (UNEP) is an executive body for implementing the "Human Environment Declaration" and the "International Environmental Action Programme", established in 1972 as a subsidiary body to the United Nations system. UNEP FI represents a broad as well as a close partnership between UNEP and more than 200 global financial institutions. Since its establishment in 1992, UNEP FI has been working in concert with financial institutions, policy/regulatory authorities to transform itself into a financial system that integrates economic development and ESG considerations.

4