Kawasaki Heavy Industries has signed a financing contract with Gunma Bank for sustainable finance. This contract, similar to the financing contract signed last month, is a green loan utilizing the world's first funding framework, the 'Master Framework'*1.

In general, when it comes to executing sustainable finance, there is a higher operational burden than that required in regular financing contracts, including eligibility assessments and third-party certifications, sometimes extending for months. The 'Master Framework' accommodates all forms of sustainable finance, having obtained eligibility guarantees and third-party certifications in advance. This reduces the administrative burden for both financial institutions and our company during financing execution. Additionally, by widely publicizing the 'Master Framework' in advance, financial institutions can choose projects and fund uses that resonate with them and proceed with financing contracts. The fact that we were able to execute this financing contract following the financing contract with SBI Sumishin Net Bank last month demonstrates broad support for our company's business and the effectiveness of reducing administrative burden. Building on these achievements steadily will significantly contribute not only to our company but also to the development of sustainable finance in Japan.

■Lending contract counterpart and types of sustainable finance

The Master Framework is a framework for funding that covers all types of sustainable financing, established to promote the utilization of sustainable finance that supports the three focus fields set out in our Group Vision 2030: 'Safe and Secure Remote Society,' 'Near-Future Mobility,' and 'Energy and Environmental Solutions.'
The green loan to be raised this time is a loan obtained when raising funds for projects that have environmental improvement effects. The funds raised in this loan are expected to be used for new expenditures and refinancing of existing expenditures related to eligible criteria "clean hydrogen transportation and storage" based on the master framework.

Eligibility Criteria	Eligibility Category	Sample Projects
Clean Trucking and Storage of Hydrogen	Environmentally adaptive products, environmentally conscious production technologies and processes (sustainable marine transport)			Hydrogen liquefaction machine
				Liquefied hydrogen shipping and receiving base
				Liquefied hydrogen storage tank
				Liquefied hydrogen transport ship
				Hydrogen fuel ship
				Tank system for transporting liquefied hydrogen on ships
				Hydrogen compressor

*The marks mentioned in each project example refer to the following project classifications.

Green Project:Blue Project:

Our group has set a KPI of "50% of sustainable finance in long-term borrowings by 2030, and 100% by 2050" towards achieving the "Group Vision 2030". With the conclusion of this loan agreement, that percentage will be 22%. We will continue to accelerate our sustainability initiatives, strengthen engagement with stakeholders, and contribute to achieving the SDGs and realizing a sustainable society.

*1: About the Master Framework

[Reference Link]

Signed loan agreement utilizing the master framework (announced by Gunma Bank).

- About our efforts in sustainable finance

About Group Vision 2030.