Our Environmental and Social Management Policy for Financing and Investment Activity


Development Bank of Japan (DBJ) pursues both economic and social value through its unique business activities, beginning with sustainability management and its mission to realize sustainable development for Japan and the world. In 2017, DBJ created the Policy on Sustainability as a part of its efforts to proactively engage in dialogue with all stakeholders and to continuously improve its value creation process. In 2020, DBJ adopted the Equator Principles with the belief that it must further clarify its credit analysis process for project financing, especially in terms of identifying, assessing, and managing risks related to the environment and society.

From the standpoint of further incorporating environmental and social considerations into its investment and loan decisions, DBJ has formulated and disclosed its Our Environmental and Social Management Policy for Financing and Investment Activity for businesses and sectors with a high likelihood of posing major risks or having negative consequences for the environment and society.

This policy has been put into practice from October 1, 2021, and revised on August 25, 2023. This policy will be revised as necessary in the future.

Applicable Businesses

Businesses prohibited from receiving investments and loans regardless of sector

DBJ does not invest in or extend loans to businesses or businesspeople that may pose a significant risk or have a negative impact on the environment or society through their operations.

  1. 1.
    Businesses that have a negative impact on wetlands designated under the Ramsar Convention
  2. 2.
    Businesses that have a negative impact on World Heritage Sites designated by UNESCO
  3. 3.
    Businesses that infringe on the Convention on International Trade in Endangered Species of Wild Fauna and Flora (Washington Convention)
  4. 4.
    Businesses that engage in child labor or forced labor

Businesses that require additional due diligence for investments and loans regardless of sector

DBJ understands that the following businesses can pose significant risks or have negative impacts on the environment and society. When evaluating these businesses in terms of loans and investments, DBJ takes additional steps to ascertain that measures have been put in place to mitigate and avoid these inherent risks.

  1. 1.
    Businesses that negatively impact the local communities of indigenous peoples
  2. 2.
    Businesses that expropriate land and force the relocation of residents

Policies for specific sectors

DBJ believes there is a strong possibility inherent in the following sectors of risks or negative consequences for the environment and society. Accordingly, DBJ takes additional steps when evaluating investments and loans in these sectors, ascertaining that measures have been taken to mitigate and avoid these risks.

  1. 1.
    Cluster bombs have been designated as inhumane weapons of grave concern by international society. DBJ does not make investments in and extend loans to companies that manufacture cluster bombs due to their immoral nature.
    Likewise, other weapons are regarded by international society as inhumane weapons of grave concern, such as nuclear weapons, biological and chemical weapons, and anti-personnel mines. DBJ does not provide investments and loans to businesses that use these funds to manufacture such inhumane weapons.
  2. 2.
    Coal-fired thermal power generation
    DBJ Group has contributed to the long-term stable supply of energy while reducing its environmental impact, based on the fundamental principle of sustainability management for balancing economic and social value. In the renewable energy field in particular, DBJ supplies diverse risk capital, including project financing, mezzanine loans, and equity financing, to wind and solar power generation projects in Japan from their initial stages. DBJ also finances offshore wind power projects in Europe, with the aim of learning from cutting-edge initiatives overseas and applying those lessons in Japan. In view of the global debate about climate change and the OECD’s Arrangement on Officially Supported Export Credits, as well as Japan’s energy policy based on the 3E+S strategic plan, DBJ works to ensure reliable energy supply while aiming to achieve zero effective emissions of greenhouse gases by 2050. In renewable and alternative energy, we plan to increase the supply of risk capital for wind and solar power, new power grids, and hydrogen projects in order to encourage their introduction. While DBJ does not engage in projects to build new or expand existing coal-fired thermal power plants, it does participate in initiatives for transitioning to cleaner thermal power plants with the use of new technologies.
  3. 3.
    Palm oil
    Palm oil is an essential raw material in our daily lives. However, it is well understood that the production of palm oil has in the past led to human rights abuses, such as infringing on the human rights of indigenous peoples and child labor, as well as to environmental problems including the cutting and burning down of natural forests and damage to biodiversity. Before providing investments in, or loans to, businesses that cultivate palm oil plantations, DBJ takes a cautious approach, confirming the business in question has obtained Roundtable on Sustainable Palm Oil (RSPO) certification and has not caused any problems with indigenous peoples and local communities. For parties that have not obtained this certification, DBJ strongly recommends they get certified and asks them to explain their plans for doing so. DBJ asks them to publicly commit to No Deforestation, No Peat, No Exploitation (NDPE) policies. Moreover, as a similar effort, DBJ recommends that they strengthen their supply chain management and improve traceability in their supply chains.
  4. 4.
    The destruction of forests causes many problems, such as reducing biodiversity, destabilizing ecosystems, lowering water source cultivation functions, and degrading the ability to store carbon dioxide. DBJ takes a cautious approach to evaluating loans and investments for businesses involved in lumber production, making sure the business in question does not engage in illegal logging or cause trouble with indigenous peoples and local communities. In countries that are not high-income OECD member nations, DBJ requires entities in the business of harvesting timber to obtain the Forest Stewardship Council (FSC) or the Programme for the Endorsement of Forest Certification (PEFC) schemes. For parties that have not obtained these certifications, DBJ encourages and supports their acquirement, and requests them to submit a plan to acquire certification. For loans and investments in projects that involve deforestation in order to develop large-scale farms that involve timber harvesting (farms that cultivate soybeans, natural rubber, coffee and other products, as well as grazing land, larger than or equal to 10,000 hectares), DBJ asks the parties to draw up policies that explain their control over environmental and human rights issues, including their commitment to No Deforestation, No Peat, No Exploitation (NDPE). Moreover, as a similar effort, DBJ recommends that they strengthen their supply chain management and improve traceability in their supply chains.
  5. 5.
    Coal mining
    When coal mining is not properly managed, hazardous waste emitted from coal mines can impact ecosystems, and coal mine cave-ins and other accidents can lead to deaths, from the perspectives of environmental and social considerations, respectively. DBJ takes a conservative approach to decisions for investments and loans for coal mining projects, verifying whether environmental and social considerations are taken into account. DBJ refuses to provide investments and loans to new coal mining businesses and coal mining businesses that plan to practice mountaintop removal (MTR), a particularly destructive method of mining coal.
  6. 6.
    Oil and gas
    Oil and gas are essential sources of energy for society and our daily lives, but it is necessary to consider the impact on climate change of greenhouse gases emissions from such fossil fuels. The extraction of oil and gas has hitherto led to incidents of ocean and river pollution caused by spills of oil and gas, human rights abuses among indigenous peoples, and other potential negative impacts on the environment and society. It is therefore important to adequately consider whether such businesses have impacted the environment or caused problems for indigenous peoples and local communities. DBJ takes a cautious stance when evaluating investments and loans for any oil and gas development projects, oil sands projects, shale oil and gas development projects, and pipeline projects located in the Arctic Circle (which runs at 66 degrees 33 minutes north latitude), a region that requires additional consideration for protecting rare species and respecting the lifestyles of indigenous people therein, while paying due attention to environmental and social considerations.
  7. 7.
    Large-scale hydroelectric power
    Large-scale hydroelectric power stations (output of at least 30 MW and dam wall height of at least 15 m) play a major role in supplying clean renewable energy in the form of electricity. On the other hand, the construction of dams can affect river ecosystems, biodiversity, and the livelihoods of local residents, among other broad changes. DBJ takes a cautious approach to evaluating investments and loans in the specific use of funds for large-scale hydroelectric power projects, making sure there are no problems in terms of environmental impact, indigenous peoples, and local communities.

Governance Related to the Abovementioned Initiatives and Policies


DBJ has created the Sustainability Committee as a body under the Executive Committee to deliberate and address environmental and social issues. The abovementioned initiatives and policies were approved by the Executive Committee after due deliberation by the Sustainability Committee. In view of changes in the external environment, the Sustainability Committee identifies risks and periodically reviews these initiatives and policies, revising them as necessary to improve management and ensuring they are adequate and appropriate for the targeted sectors.

In-house education and training

DBJ educates and trains its executives and employees to properly follow relevant rules and procedures, in addition to furthering their understanding of the environment and social issues.

Communication with stakeholders

DBJ is keen to engage in communication with all stakeholders on these initiatives, policies, and endeavors so that they align with social norms and expectations.

Group Company initiatives

  • Click here for the sustainability policy of DBJ Asset Management Co., Ltd.