Rengo Co., Ltd. announces that it has concluded a syndicated green loan agreement with Sumitomo Mitsui Banking Corporation in line with the “Green Loan Principles 2021” ^(*1) established by international organizations for the financial industry and the “Green Loan and Sustainability Linked Loan Guidelines 2020” established by Japan's Ministry of the Environment.
A green loan is a loan used by a company or other entity to raise funds needed for projects that contribute to solving environmental issues (“green projects”), and the proceeds are allocated exclusively to green projects. Green loans are also characterized by transparency, as they are made secure through managing the tracking of funds and reporting after financing.

The Rengo Group is promoting ESG management under its medium-term vision, “Vision115.” In “Eco Challenge 2030,” a set of environmental targets established for 2030, the Group defined six core issues—creation of a carbon-free society, improvement of energy efficiency, creation of a recycling-oriented society, creation of products that solve environmental and social issues, water risk management, and value chain management (downstream)—and set specific goals for each issue ^(*4).
The new biomass boiler and RPF production facility and the new plant for 100% biodegradable cellulose microbeads derived from wood pulp are green projects designed as part of the environmental investment toward achieving these targets. The proceeds from the green loan will be fully allocated to these green projects.