Green Bond|ESG|Nippon Prologis REIT, Inc.

Nippon Prologis REIT, Inc.

Green Bond

What is a Green Bond

As a part of the Prologis Group's ESG initiatives, NPR has been engaged in investing in and managing high-quality, energy-efficient modern logistics facilities, and it continues to proactively obtain green building certifications. Additionally, ESG-related social concerns from Japanese investors appear to be significantly rising. In response to this interest, NPR has issued investment corporate bonds in the form of green bonds. Green bonds are a type of bond instrument, the proceeds of which are used for green projects that have clear environmental impact. Green bonds are issued by corporations, investment funds and municipalities. The issuance of green bonds must adhere to the Green Bond Principles stipulated by the International Capital Market Association (ICMA). For detailed information about green bond principles, please refer to ICMA’s following website: https://www.icmagroup.org/green-social-and-sustainability-bonds/green-bond-principles-gbp/

NPR Green Bond

From time to time, NPR may issue green bonds to raise capital for various corporate activities that would ultimately contribute a more sustainable and carbon-free society. Green bonds are issued according to the protocols described in Prologis’ “Green Bond Framework.” This Green Bond Framework follows the GBP 2017, which provides guidelines in four key areas:

  1. Use of proceeds;
  2. Process for project evaluation and selection;
  3. Management of proceeds; and
  4. Reporting

Proceeds from the issuance of green bonds will be used for new or existing investments in or expenditure on properties that meet the eligibility criteria of sustainability building certificates. The proceeds may also be used for refurbishments to properties to significantly improve energy efficiency and/or water efficiency, or to make other environmentally beneficial improvements to a building, building subsystem or land, and investments in or expenditures on the acquisition, development, construction and/or installation of renewable energy production units as well as energy storage systems. Projects to which green bond proceeds are allocated are evaluated and selected by NPR’s Green Bond Committee, which comprises members of NPR’s Sustainability Committee. NPR will report on its website, within a year of the issuance of applicable green bonds, the status of allocation to the eligible green project portfolio.

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