Environmental measures are an important aspect of corporate management
- Beginning in the 1960s with pollution countermeasures, during the past 40 years DBJ has taken part in more than \3 trillion worth of financing of environment-related businesses.
- Owing to global warming, environmental concern within the corporate sector is growing. However, although achieving a sustainable society plays an increasing role in corporate missions, clients require support to put environmental measures in place, from the standpoint of supporting environmental management, as well as from a financing perspective.
Program to support projects beneficial to the environment
DBJ financing based on environmental responsibility ratings
To promote environmentally responsible management, in 2004 DBJ developed the world's first system of financing based on environmentally responsible ratings.*
Support of environmentally beneficial businesses
- New energy, wind-power generation, biomass generation, solar powered generation, etc.
- Waste processing and recycling
- Soil remediation measures
DBJ provides support for environmental initiatives by its financing of business in these fields.
- In an example of public?private-sector cooperation, DBJ established the Japan Greenhouse Gas Reduction Fund, the first Asian emissions trading fund, to help reduce greenhouse gas emissions.
- Through this program, clients who are considering the acquisition of emissions trading rights are matched with entities selling such rights (investment banks, emissions rights funds), helping to smooth the emissions reduction process.
In 2004, DBJ inaugurated the Japan Greenhouse Gas Reduction Fund (JGRF), the first Asian emissions trading fund, through the cooperation of 32 companies, including Toyota, Sony and Tokyo Electric. We set up Japan Carbon Finance, Ltd. (JCF), to operate this fund.
Environmentally Rated Financing
The process of acquiring an environmental rating includes interviewing clients to evaluate objectively the environmental measures they have in place, as well as areas that could be strengthened and improved. Such evaluations help clients formulate clear explanations of their environmental activities to stakeholders.
Fukuoka Clean Energy Corporation
DBJ addressed this situation by structuring an arrangement involving a direct agreement between the city of Fukuoka and Kyushu Electric and a banking syndicate, providing financing to be repaid through fees received from the city of Fukuoka for processing waste and through income from the sale of electricity to Kyushu Electric. This scheme clearly outlined the division of risks, enabling long-term financing from other financial institutions.