K” LINE, has signed a commitment line agreement utilizing the Mizuho Natural Capital Impact Finance scheme. Arranged through a syndicate led by Mizuho Bank, Ltd., the agreement marks the first time this specific financing framework has been utilized within the maritime industry.
The financing program relies on an assessment methodology developed by Mizuho Research & Technologies, Ltd., which incorporates the Taskforce on Nature-related Financial Disclosures (TNFD) and other natural capital frameworks.
This system evaluates a company’s commitment to nature-positive management. The agreement follows the recognition of “K” LINE’s proactive efforts in addressing environmental issues unique to shipping, such as oil pollution prevention, atmospheric emissions reduction, and marine biodiversity conservation.
The framework for this scheme has been reviewed by the Japan Credit Rating Agency, Ltd. (JCR), which issued an opinion confirming its alignment with the Ministry of the Environment’s Basic Guidelines on Impact Finance. During the development of this framework, the United Nations Development Programme (UNDP) also provided expert advice.
“The signing of the Agreement is an important “K” LINE Environmental Vision 2050 milestone, particularly regarding the expansion of initiatives for conserving the environment, including natural capital,” said Takenori Igarashi President & CEO “K” LINE.
Under the 10 billion JPY agreement, which has a five-year tenor, “K” LINE will establish several key performance indicators (KPIs) based on the principles of the financing scheme.
These initiatives will be regularly monitored by Mizuho Research & Technologies and Mizuho Bank to provide feedback on the company’s natural capital conservation progress. The lending syndicate includes a wide range of institutions, including Sumitomo Mitsui Trust Bank, MUFG Bank, and The Bank of Yokohama.
