Suntory Group's Sustainability Initiatives
Suntory’s history began in 1899 when Torii Shinjiro opened Torii Shoten in Osaka City. He held an untiring “Yatte Minahare” spirit, with a belief in “Giving Back to Society” as a Company. These two management philosophies have been continuously handed down from generation to generation within Suntory since its foundation more than 120 years ago.
In the 2000s, with increased recognition of global climate change and other common issues around the world, the Company launched several key initiatives. In 2003, the Natural Water Sanctuary Project was launched, and in 2004, the next-generation environmental education program, “Mizu-iku”, aiming at coexistence with water and natural environments cultivating water resources.
Since then, under the Group’s promise of “Mizu To Ikiru” (Sustained by Nature and Water), to its customers and society, the Suntory Group has been engaged in environmental activities with a long-term perspective. In 2019, we formulated the Suntory Group Sustainability Vision to promote group-wide activities to solve common global sustainability issues.
Under Suntory’s Environmental Vision toward 2050, we aim to reduce water usage at our plants worldwide by 50%*1 and achieve net-zero greenhouse gas (GHG) emissions across the entire value chain. Suntory’s Environmental Target toward 2030, will assist in achieving this by obtaining SBT certification, reducing water usage at our plants by 35%*1 globally, reducing GHG emissions at our sites by 50%*2, and reducing GHG emissions across the entire value chain by 30%*2 .
Against this backdrop, Suntory has formulated the Sustainable Finance Framework as a sustainability finance initiative aiming to achieve a decarbonized society and reduce water consumption. This is the first framework in Japan that incorporates targets for reducing water consumption, and we will further promote our sustainability initiatives in the future.
-
*1Reduction per unit production based on the business fields in 2015
-
*22019 emissions as base line
Sustainable Finance Framework
Suntory Holdings Limited has developed its Sustainable Finance Framework as described below based on the following relevant principles, etc.* for funding through Sustainable Finance.
The Company plans to raise funds through sustainable finance under the Framework after the establishment of the Framework.
The financing methods available under the Framework include Green bonds, Green loans, Sustainability-linked bonds and Sustainability-linked loans.
Suntory Sustainable Finance Framework（Overview）
Suntory Sustainable Finance Framework
-
*Principles/Guidelines
- Green Bond Principles (GBP) 2021 (International Capital Market Association (ICMA))
- Green Loan Principles 2023 (Loan Market Association (LMA), etc.)
- Green Bond Guidelines 2022 (The Ministry of the Environment of Japan)
- Green Loan Guidelines 2022 (The Ministry of the Environment of Japan)
- Sustainability-Linked Bond Principles 2023 (ICMA)
- Sustainability-Linked Loan Principles 2023 (LMA, etc.)
- Sustainability-Linked Bond Guidelines 2022 (The Ministry of the Environment of Japan)
- Sustainability-Linked Loan Guidelines 2022 (The Ministry of the Environment of Japan)
Second Party Opinion
Suntory Holdings Limited received a Second Party Opinion from Moody’s to ensure transparency and alignment with relevant principles and to attract more investors.
Green Bonds Overview
Green Bonds (Unsecured Corporate Bonds No.13)
| Name of the Bond | Suntory Holdings Limited 13th Publicly-offered Corporate Bonds （Green bond with specific inter-bond pari passu clause） |
| Issue Amount | 20 Billion Yen |
| Term | 5-years |
| Coupon | 0.628% |
| Issue Date / Maturity Date | November 24, 2023 / November 24, 2028 |
| Interest Payment Date | May 24 and November 24 each year |
| Ratings | AA (Japan Credit Rating Agency, Ltd.) |
| Use of Proceeds |
|
| Lead Managers | Mizuho Securities Co., Ltd., Mitsubishi UFJ Morgan Stanley Securities Co.,Ltd., BofA Securities Japan Co., Ltd. |
| Structuring Agent* | Mizuho Securities Co., Ltd. |
-
*A securities company that supports the implementation of sustainable finance, including the issuance of green bonds, through the development of a sustainable finance framework and advice on obtaining second-party opinions.
Green Bonds (Unsecured Corporate Bonds No.13) Report (As of December 31, 2023)
Suntory Holdings Limited allocated 8.44 Billion Yen to projects which fulfill eligibility criteria from 20 Billion Yen Suntory Holdings Limited 13th Publicly-offered Corporate Bonds (Green Bonds with specific inter-bond pari passu clause) issued on November 24, 2023.
11.56 Billion Yen of unallocated funds will be allocated by 2025.
| Eligibility Criteria | Allocated Amount | Impact Reporting |
|---|---|---|
|
Capital investment contributing to energy-saving at the plants we own 
|
JPY7,700MM （Refinance：JPY7,700MM） |
Reduction in GHG emissions： 3,510t-CO2e*1 |
|
Costs for procurement of green hydrogen 
|
JPY0MM To be allocated in 2025 |
－ |
| Capital investment for the construction of biogas refining facilities, biomass heat supply facilities or biomass power generation facilities through wastewater treatment | JPY590MM （Refinance：JPY590MM） |
Reduction in GHG emissions： 2,987t-CO2e*2 |
| Costs for procurement of electricity generated from renewable energy (purchase of renewable energy certificates) | JPY150MM （Refinance：JPY150MM） |
Reduction in GHG emissions： 124,294t-CO2e*3 |
| Total | JPY8,440MM （Refinance：JPY8,290MM） |
Above impacts represent environmental improvement effect for project as a whole |
-
（*1）Latest GHG emissions (or their estimate) × Improvement in energy consumption rate
-
（*2）Power generation using biogas × GHG emission factor of electricity, Reduction in use of city gas × GHG emission factor of city gas,
or GHG emissions with conventional design (gas boilers or coal boilers) − GHG emissions with new design (only methane gas boilers after abolishing coal boilers), etc. -
（*3）Power consumption × GHG emission factor of electricity