Nippon Life Insurance Company (President: Satoshi Asahi, hereinafter “Nippon Life”) has decided to invest in Green MBS issued by Incorporated Administrative Agency Japan Housing Finance Agency (President: Shinji Mouri, hereinafter “Japan Housing Finance Agency”). This is the first Green MBS issued by Japan Housing Finance Agency and the first investment in Green MBS for Nippon Life.
The funds raised through this bond will be used for the purchase of housing loans under Flat 35 for houses that meet certain energy-efficiency performance standards.
This contributes to the reduction of CO₂ emissions by promoting energy-efficient housing, thereby supporting the realization of carbon neutrality by 2050.
Furthermore, the Green Bond Framework applied to this bond, formulated by the Japan Housing Finance Agency, has obtained a third-party opinion regarding its alignment with the Green Bond Principles (GBP) 2025,＊1 established by the International Capital Market Association (ICMA), and the Green Bond Guidelines 2024＊2 established by Japan’s Ministry of the Environment.
Based on our mission and public role as a life insurance company, Nippon Life is strengthening its commitment to responsible investment with the aim of coexisting with the environment, local communities, and society, while sharing stable growth with the economy and businesses. The investment in this bond qualifies as a Thematic Investment and falls under the Decarbonization Financing Facility.*3
We will continue to work toward realizing a sustainable society and further enhancing policyholder benefits by shaping sustainability outcomes through responsible investment.
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*1
The Green Bond Principles (GBP) 2025 were established by the International Capital Market Association (ICMA) to promote market integrity by recommending transparency, disclosure, and reporting for green bonds.
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*2
Green Bond Guidelines 2024 were established by the Ministry of the Environment to ensure the credibility of the environmental benefits of Green Bonds while reducing the cost and administrative burden on issuers and promote the use of Green Bonds in Japan.
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*3
Thematic Investment is an investment target that leads to achieving SDGs. Decarbonization Financing Facility is an investment target for contributing to the decarbonization of companies and society as an internal target of Thematic Investment. In order to see them in more detail, please access the link below.
Overview of the Green MBS
| Issuer | Incorporated Administrative Agency Japan Housing Finance Agency |
|---|---|
| Nippon Life Investment Amount | JPY 1 billion |
| Use of Proceeds | The funds of Flat 35 that meets certain energy-efficiency performance standards |
SDGs related to the Bond
