Mitsui O.S.K. Lines Signs Japan’s First Sustainability-Linked Lease for Chemical Tanker

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Mitsui O.S.K. Lines, Ltd. (MOL), led by President & CEO Takeshi Hashimoto, announced that its subsidiary, MOL Chemical Tankers Pte. Ltd. (MOLCT), has signed Japan’s first sustainability-linked lease agreement with Tokyo Century Corporation. This agreement pertains to the chemical tanker BONITA ANA and aligns with MOL Group’s environmental strategy.

Environmental Strategy and Financial Framework

The MOL Group’s environmental initiatives, encapsulated in the “MOL Group Environmental Vision 2.2” and the MOL Sustainable Finance Framework, were recognized by Tokyo Century as contributing to sustainability efforts. This recognition facilitated the lease agreement, which incorporates sustainability performance targets consistent with the group’s environmental strategy. Lease payments are adjusted based on the achievement of these targets.

Role of Tokyo Century

Tokyo Century, acting as an enabler has established Japan’s first “Sustainability Linked Finance and Transition Linked Finance Framework” to support companies under a Japanese Operating Lease with Call Option (JOLCO). This agreement marks the first project to utilize this framework.

Commitment to Environmental Conservation

The MOL Group has integrated environmental strategy into its management plan, “BLUE ACTION 2035,” and has prioritized “marine and global environmental conservation” as a key sustainability issue. MOL is dedicated to addressing environmental challenges through collaboration with stakeholders, aiming for net zero greenhouse gas (GHG) emissions by 2050. The company will continue to pursue sustainable financing through this framework to support its environmental goals.

An enabler is a financial institution that supports other companies’ sustainability or transition strategies through its services. Sustainability performance targets and indicators are set based on the company’s environmental strategy. Mitsui O.S.K. Lines’ pioneering sustainability-linked lease agreement for the chemical tanker BONITA ANA underscores its commitment to environmental sustainability and innovation in financing, setting a precedent in the industry.

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Source: Mitsui O.S.K.Lines,Ltd.