NYK signed a sustainability linked loan (SLL) agreement with the Shiga Bank Ltd. (Shiga Bank).

This is the first SLL contract denominated in a foreign currency to be inked in Japan, and this is the second SLL contract for NYK following the signing of a yen-denominated SLL in November 2019 in Japan.

An SLL links its loan interest rate with the company’s CDP* score. A high CDP score is usually indicative of a company’s superior environmental awareness, advanced sustainability governance, and leadership to address climate change.

In its medium-term management plan “Staying Ahead 2022 with Digitalization and Green” formulated in 2018, NYK incorporates ESG perspectives into its management strategy and set goals to drive the sustainable development and growth of corporate and social values.

Shiga Bank’s “Shigagin” Sustainability Link Loan encourages lenders to take on ambitious SDGs and ESG-related business challenges and motivates them to achieve their goals. NYK’s goal is to support ESG management and is in line with the company’s ESG management strategy.

On February 3, NYK announced the NYK Group ESG Story,** which aims to further integrate ESG into the company’s management strategy, and this is the first ESG finance project since that announcement. To strongly promote ESG management, NYK will promote new value creation as a sustainable solution provider through a business strategy that responds to climate change.