May 20 -- Nippon Life Insurance Company issued the following news release:
Nippon Life Insurance Company (President: Hiroshi Shimizu, hereinafter "Nippon Life") has invested 2.6 billion yen in transition bonds (hereinafter "Bonds") issued by Kyushu Electric Power Company, Incorporated[*1]. The investments were Nippon Life's first in transition bonds issued by a Japanese company. Transition bonds aim to support companies making steady efforts to reduce greenhouse gas emission in accordance with a long-term strategy for the realization of a carbon-free society.
Funds raised by issuing the Bonds will be used for the development of highly efficient LNG thermal power plants and to cover the costs of suspension or closure of existing thermal power plants. The Sustainable Finance Framework applied to the issuance of Bonds formulated by Kyushu Electric Power has obtained a third-party opinion that it complies with the "Basic Guidelines on Climate Transition Finance" formulated by the Financial Services Agency, Ministry of Economy, Trade and Industry, and Ministry of the Environment.
Nippon Life is strengthening its ESG investment and finance, given its mission and the public nature of the life insurance business and from the standpoint that it has always worked to coexist with the environment, communities and society, and to share stable growth with the economy and other companies. Financing of this Project is one aspect of this. In addition, it is an investment that utilizes the decarbonized finance framework that was recently set as a target[*2].
Going forward, Nippon Life will continue to engage in ESG investment and financing with the aim of contributing to the realization of a sustainable society and better serving the interests of policyholders.
[*1] Nippon Life has concluded an investment agreement with Nissay Asset Management Corporation, to which it has transferred its credit investment and alternative investment functions. https://www.nissay.co.jp/english/news/pdf/20210304.pdf
Disclaimer: The table has been omitted (The document can be viewed at https://www.nissay.co.jp/english/news/pdf/20220520.pdf)
Goal 7: AFFORDABLE AND CLEAN ENERGY
Ensure access to affordable, reliable, sustainable and modern energy for all
Goal 13: CLIMATE ACTION
Take urgent action to combat climate change and its impact
Source: Nippon Life Insurance Company
[Category: Power, ESG, Funding Activities]