News Releases 2020Meiden seals contract for sustainability-linked loan
Industry’s first signing to promote sustainable business management

Meidensha Corporation (Meiden) has sealed a contract for a sustainability-linked loan (SLL) with Sumitomo Mitsui Banking Corporation. This is the first such contract signed by a company in the electric machinery industry.

SLLs offer favorable interest rates if the borrower achieves goals associated with sustainability, thereby encouraging them to strive for sustainable economic growth by giving greater consideration to the environment and society. In other words, borrowing terms are linked to how well a company attains sustainability performance objectives. The loan Meiden received is tied to a commitment line for syndicated loans based on an assessment of environmental, social and governance (ESG) factors together with Sustainable Development Goals (SDGs). This loan program started last year.

This loan contains terms that motivate the Meiden Group to attain its sustainability goals. The Japan Research Institute, Ltd. will assess the group’s progress in improving sustainability management while achieving these targets. This is the first SLL in Japan to include such terms.

Under its “First Meiden Environmental Vision,” the Meiden Group aims to slash carbon dioxide emissions associated with its business activities by 30 percent by the end of 2030, compared with the fiscal 2017 level. To attain this goal, the group is cutting CO2 emissions and the discharge of volatile organic compounds and enhancing its green procurement ratio. These targets are spelled out in the 2020 Medium-Term Management Plan.

The group will continue to manufacture products that benefit society and, together with its stakeholders, strive to realize a vibrant society in which humans and nature exist in harmony and people live with peace of mind. This will enable Meiden to move a step closer to realizing its corporate mission of illuminating a more affluent tomorrow.

*For this loan, Meiden obtained a second opinion from the Japan Research Institute confirming that the loan complies with sustainability-linked loan principles stipulated by the Loan Market Association and the 2020 Green Loan and SLL Guidelines set by the Environment Ministry, as well as the appropriateness of Meiden’s sustainability goals. Meiden also received a letter to that effect from DNV GL Business Assurance, Japan. 

This year, Meiden received the highest rating in the ESG/SDGs assessment conducted by the Japan Research Institute as part of the assessment-based commitment line of syndicated loans that started last year. Meiden also received the highest rating last year.

Points evaluated in FY2020 ESG/SDGs assessment-based commitment line of syndicated loans

 E (Environment)

The company specified the 2030 numerical target for reducing greenhouse gas emissions associated with its business activities in its 2020 Medium-Term Management Plan and demonstrated willingness to reduce negative impacts from its activities.

 S (Society)

In April 2020, the company established the Social Infrastructure Business Planning Headquarters, an internal organization that supervises the power/energy, water infrastructure and railway businesses. Harnessing the group’s know-how on infrastructure equipment and data from operating relevant facilities, Meiden stably supplies regional infrastructure in cooperation with local governments and other entities.

 G (Governance)

The company’s top management leader declared in the 2020 Meidensha Report that Meiden will use the group’s technologies and expertise to help attain SDGs.


To attain SDGs through its business operations, the company has developed services and businesses that help solve social issues. These include energy solution services and businesses related to social infrastructure. Developing these operations has helped Meiden realize reductions in environmental burdens imposed by its clients, helping attain Goal 7 (Affordable and Clean Energy), Goal 11 (Sustainable Cities and Communities), Goal 13 (Climate Action) and other SDGs.

[Reference: Press release (in Japanese) dated September 25, 2019]
Meiden signs contract on ESG/SDGs assessment-based commitment line of syndicated loans

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