Sustainable Finance

As addressing social issues such as climate change, inequality, and population decline becomes an urgent priority, the importance of sustainable finance—which supplies the funds contributing to their resolution—is growing.

Sustainable finance refers to the flow of funds designed to support the creation of a sustainable society by incorporating Environmental, Social, and Governance (ESG) factors into financial decision-making. While traditional finance has primarily focused on financial returns, sustainable finance aims to support and promote businesses and organizations that contribute to resolving ESG issues—such as climate change mitigation, resource circulation, and respect for human rights—through the allocation of capital. It can be broadly categorized into two types—"Use of Proceeds" and "General Purposes"—depending on whether the use of funds is restricted to specific sectors or linked to the achievement of the organization’s overall sustainability performance targets (KPIs).

Backcasting from our vision for 2035 and beyond, we are driving sustainability management to contribute to creating a circular economy and a sustainable society, and resolving global social issues.

Since issuing our first green bonds in 2018, we have actively utilized a diverse range of financing methods, including sustainability-linked loans and Positive Impact Finance. Over the past seven years, we have raised approximately 890 billion yen in total (as of March 31, 2026), positioning us as one of the top corporate participants in Japan's sustainable finance market.

In 2025, we established Japan’s first Self-Assessment-Based Positive Impact Finance Framework. Moving forward, we remain committed to supporting our customers' business development through advanced financing methods while continuously striving to enhance our corporate value.

Sustainability-linked loans are a financing method where sustainability performance targets (SPTs) are set based on the borrower’s corporate strategy, with loan terms fluctuating according to the achievement of those targets. By linking the achievement of SPTs with loan terms, this approach aims to promote sustainable economic activities and growth that contribute to the environment and society.

Since entering our first sustainability-linked loan agreement in 2021, our cumulative financing has exceeded 470 billion yen (as of March 31, 2026). As a market leader in Japan, we advance sustainability management alongside our many stakeholders.

Positive Impact Finance is a financing method that comprehensively analyzes and assesses the environmental, social, and economic impacts of corporate activities based on the Principles for Positive Impact Finance developed by the United Nations Environment Programme Finance Initiative (UNEP FI). We have established Japan’s first Self-Assessment-Based Positive Impact Finance Framework. Distinct from conventional financial-institution-led PIF, this advanced approach allows us to develop our own unique evaluation framework and independently drive the entire process—from impact identification and KPI setting to ongoing monitoring.

Green bonds are bonds issued with the exclusive use of proceeds for "green projects" that yield environmental benefits, such as renewable energy and clean transportation (e.g., EVs). In fiscal 2018, we issued green bonds to secure funding specifically for equipment in our solar power generation business.

The DBJ Employees' Health Management Rated Loan Program provides financing for companies that demonstrate excellence in their commitment to employee health. In this program, Development Bank of Japan Inc. (DBJ) uses its proprietary screening system to rate companies on the quality of their initiatives for employee health.

Tokyo Century recognizes that it is essential to develop an environment where our human resources―our greatest asset―can work with vitality and maintain physical and mental well-being. With this as a priority issue, we promote health and productivity management. In recognition of our efforts, we earned the highest "Rank A" for the second consecutive time and successfully raised 15 billion yen in funding under the program.