NTN : Signs a Sustainability Linked Loan Agreement with The Norinchukin Bank

Accelerating efforts to realize a sustainable society through funding linked to sustainability activities

NTN Corporation (headquartered in Kita-ku, Osaka; Eiichi Ukai, Representative Executive Officer, President; hereafter "NTN") and The Norinchukin Bank (headquartered in Chiyoda-ku, Tokyo; Kazuto Oku, President & CEO; hereafter "Norinchukin") have signed a Sustainability Linked Loan (hereafter "SLL") agreement linking the loan terms to NTN's progress toward its Sustainability Performance Targets (hereafter "SPTs").

NTN aims to realize a "NAMERAKA Society" in which people can easily lead a secure and fulfilling life in harmony with nature by implementing its corporate philosophy. In December 2020, we created a roadmap that stipulates materiality (key issues) to be prioritized and specific measures to promote ESG management by backcasting from the future we aim for.

With regard to one of our key issues, "realizing carbon neutrality," we have set a target of achieving "carbon neutrality in FY2035 (FY2050 including supply chain)," and are promoting efforts to reduce CO₂ emissions in our business activities and contribute to the environment through the provision of products and services*.

With the support of Norinchukin, NTN has now developed a Sustainability Linked Finance Framework that sets out achievement targets (SPTs) and applicable interest rates linked to loan terms as well as reporting and other requirements. In this framework, NTN has set as SPTs the status of achievement of interim targets toward "carbon neutrality in FY2035 (FY2050 including supply chain)," which is NTN's target for decarbonization, and we will accelerate its efforts to reduce CO₂ emissions to achieve the SPTs.

This framework will continue to be used for financing based on the progress of sustainability activities similar to those of each financial institution.

Through this agreement, Norinchukin will promote economic activities to solve environmental and social issues and support the growth of NTN's business activities through the provision of funds, while NTN will build a stable financial base and accelerate its efforts to solve social issues, including environmental issues, through the steady achievement of SPTs.

* NTN's efforts to "Realize Carbon Neutrality" :
https://www.ntnglobal.com/en/csr/idea/carbon-neutrality.html

Overview of the Loan

The agreement has been certified by Rating and Investment Information, Inc. as conforming to the Sustainability Linked Loan Principles, and has received an independent opinion from Rating and Investment Information, Inc. as to the reasonableness of the targets set. For more information, please refer to the link below.

Third-party opinion by Rating and Investment Information, Inc.(Japanese Only)（PDF: 1KB）

Norinchukin Initiatives

Norinchukin has defined its Raison d'être (Purpose) as "Sustaining All Life. ~Together with our stakeholders we nurture the agriculture, fishery, and forestry industries, creating a future abundant in food and life, while contributing to a sustainable global environment~." In the medium- and long-term goals announced in May 2021, Norinchukin aims to put sustainable management into practice, such as setting a sustainable finance target of 10 trillion yen in new finance by FY2030. Norinchukin will support NTN's corporate efforts by supporting the formulation of NTN's framework and providing funds through SLL, and aims to contribute to solving environmental and social issues, including climate change, which is closely related to the agriculture, forestry and fisheries industries that form the foundation of Norinchukin's business.

https://www.nochubank.or.jp/en/sustainability/