Glossary

Its official name is the Taskforce on Inequality and Social -related Financial Disclosures. It is an international working group (task force) established to consider a framework for information disclosure on social inequality and human Issue by companies and Financial Institution .

The aim of the initiative is to establish guidelines for transparent disclosure to investors and stakeholders about the impact of corporate activity on social inequality and human rights, and it is positioned as a social version of the TCFD(Task Force on Climate-related Financial Disclosures) and TNFD(Task Force on Nature-related Financial Disclosures).

This is an LCA (Life Cycle Assessment) database that was constructed in accordance with Japan's domestic Industry structure and supply chains. It contains highly reliable Emission factor for precisely understanding GHG (greenhouse gas) emission amount throughout the entire life cycle of products and Service , and is primarily used by companies that calculate greenhouse gas emission amount on a volume basis.

SAF (Sustainable Aviation Fuel) is a jet fuel Manufacturing renewable resources and waste materials such as used cooking oil, biomass, and waste plastic as raw materials. Compared to conventional fossil-based aviation fuel, it is said to be able to significantly reduce greenhouse gas (GHG) emissions throughout its life cycle, and is positioned as one of the important options for decarbonizing the aviation sector.Carbon offset and Reduction Schemes for International Aviation) as one of the means to reduce emissions, and each country is working to establish systems and build supply infrastructure.

Its official name is the Energy Efficiency Existing Ship Index. It is a regulation on Energy efficiency introduced by the International Maritime Organization (IMO) in 2023, targeting existing ships of 400 gross tons (GT) or more engaged in international navigation. It quantifies the Energy efficiency of each ship using a calculation method similar to the EEDI (Energy Efficiency Design Index) for new ships, and ships that exceed the standard value are required to take improvement measures such as renovations. It is an international technical regulation aimed at reducing greenhouse gas (GHG) emissions in the maritime sector.

The international principles for greenhouse gas (GHG) emission management in ship financing were established by major European and American Financial Institution in 2019. It is a framework for evaluating and disclosing the consistency of ship financing portfolios with the IMO (International Maritime Organization) GHG reduction targets, and is a system that supports and promotes decarbonization in the shipping industry through the investment and lending activity of Financial Institution .

These bonds are issued by companies and local governments to Funding for initiatives aimed at solving environmental problems both domestically and internationally. They are attracting attention primarily from ESG investors. They have three features that ensure transparency: the use of funds is limited to green projects, the funds raised are tracked and managed, and reporting is provided after issuance.

There are four types of green bonds.

1. Standard Green Use of Proceeds Bond: A bond issued to raise funds required for green projects. Repayment is made using the issuer's overall cash flow, without relying on a specific source of funds.

2. Green Revenue Bond: A bond issued to raise funds required for green projects. The bond is issued based on the cash flow of the public green projects to which the funds are to be allocated, and the relevantThe bonds are repaid using the fees for the use of public facilities related to the applicable funds, special taxes, etc. For example, bonds that use the funds for the construction and operation of facilities necessary for waste disposal operations conducted by external organizations and are repaid using only the profits from those operations fall into this category.

3. Green Project Bond: A bond issued to raise funds required for green projects. Redemption is funded by the cash flow of one or more green projects to which the proceeds are allocated. For example, a bond issued by an SPC engaged exclusively in renewable Energy power generation projects, with the funds used for the development and operation of facilities necessary for said projects, and redemption funded solely by the profits from said projects, falls into this category.

4. Green Securitized Bond: A bond that is secured by multiple assets related to green projects (including loan receivables, lease receivables, trust beneficiary rights, etc.) and is repaid using the cash flow generated from these assets. Examples of this include ABS (asset-backed securities) backed by loan receivables related to solar panels, highly energy-efficient equipment, facilities, housing, and low-emission vehicles such as electric vehicles and hydrogen vehicles.

(Ministry of the Environment)Green Bond Guidelines 2020"reference)

This refers to the phenomenon in which companies in countries and regions with strict carbon regulations relocate their production location to countries with looser emission regulations to avoid rising production costs, resulting in greenhouse gas (GHG) emissions not being reduced but rather increasing in other regions. Carbon leakage is being prevented by the introduction of the Carbon Border Adjustment Mechanism (CBAM).

The official name is Life Cycle Inventory.

It refers to the collection of quantitative data on the environmental impact of a product or Service throughout its life cycle. LCI is one of the main components of Life Cycle Assessment (LCA), and quantitatively records and compiles the Energy consumption and emissions (greenhouse gases, air and water pollutants, waste, etc.) at each stage of the process.

Representative LCI databases include Japan's IDEA (Inventory Database for Environmental Analysis), Switzerland's ecoinvent, and Germany's GaBi.

A comprehensive growth strategy aimed at transitioning to a sustainable economy, announced by the European Union (EU) in December 2019. Its main goal is to achieve net-zero greenhouse gas emissions (carbon neutrality) within the EU by 2050.

Key initiatives include expanding the use of renewable Energy, transitioning to a circular economy, developing Energy and resource-efficient buildings, and promoting sustainable smart mobility.

Biodiversity credits are market-based instruments designed to enable businesses and other organisations to offset the impacts of their activity on biodiversity (biodiversity offset).

Specifically, when ecosystems are damaged by development projects, etc., biodiversity conservation activity are carried out in other locations to compensate for the loss, and the results are traded as credits, which promotes Funding for environmental conservation activity .