Green Finance

Policy and Approach

MHR has a policy of raising investment funds for environmentally friendly projects through green finance in order to contribute to the realization of a sustainable society and maximize unitholders' value in the medium to long term.
For the raising funds through green finance, MHR has formulated a Green Finance Framework conforming to the Green Bond Principles and other principles and guidelines. MHR conducts management based on this framework.

Green Finance Framework

Use of Funds Procured

Funds procured of the green finance will be allocated to acquire the assets that meet the following eligibility criteria (Eligible Green Projects), to refinance existing loans or to redeem investment corporation bonds (including green bonds) already issued.

Eligibility Criteria

Any assets with the following valid certifications that have already been obtained or updated or are planned to be obtained or updated in the future, at green financing or at reporting:

• A or S Rank by CASBEE for Real Estate
• A or S Rank by CASBEE for Buildings
• Four or Five stars by DBJ Green Building
• Four or Five stars by BELS
• Gold or Platinum by LEED

Process for Project Evaluation and Selection

MIM’s Sustainability Committee selects projects that meet the eligibility criteria, and the President & CEO makes decisions. The Sustainability Committee is comprised of MIM’s President & CEO as Chairperson, all General Managers, and some members of planning department. 

Management of Funds Procured

• MIM's Financial Department appropriates and manages the Funds Procured on its internal electronic files. 
• When the total amount of the funds procured from green finance are not immediately allocated to Eligible Green Projects, the unappropriated amount will be specified and the equivalent amount will be managed in cash or cash equivalents until it is allocated to Eligible Green Projects.
• Unappropriated funds temporarily on hand will be managed as an asset under portfolio management, if Eligible Green Projects where the proceeds were supposed to be invested are sold, fall short of Eligible Green Projects requirements, etc. after all the proceeds are allocated. Portfolio management is a method of managing the balance of the green finance not to exceed Green Eligible Debt, which are calculated by multiplying the sum of the acquisition prices of Eligible Green Projects by the ratio of interest-bearing debt to the total assets (LTV) at the end of the preceding fiscal year. Should it exceed green debts, MIM will manage the amount equivalent to the unappropriated funds in cash or cash equivalents.

 

Reporting

1. Allocation Reporting

• As long as the green finance balance exists, total acquisition price of Eligible Green Projects, the appropriation amount, and the green finance balance will be annually disclosed on MHR's website.
• Even after the appropriation is completed, if there is a material change in the appropriation status, that will be disclosed on MHR's website.

 

Total Acquisition Price of Eligible Green Projects

As of November 29, 2024              　     

Green Finance Balance and Allocation Amount

2. Impact Reporting

To the extent that the green finance balance exists, the following indicators will be disclosed annually on MHR's website:(To the extent possible under practical operations in all cases)

Evaluation by External Organization

MHR acquired Green1 (F), the highest rating in “Green Finance Framework Evaluation” from Japan Credit Rating Agency, Ltd. (JCR) as a third-party evaluation of the eligibility of the framework.
For details of “Green Finance Framework Evaluation ”,please refer to the following.
“Green Finance Framework Evaluation” from JCR