MOL Signs Japan’s 1st Sustainability-linked Lease Agreement
Steadily Pursuing Environmental Strategy Initiatives
TOKYO – Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Takeshi Hashimoto) has announced that its group company, MOL Chemical Tankers Pte. Ltd. (MOLCT; President: Akira Sasa; Headquarters: Singapore), has signed Japan’s first sustainability-linked lease agreement with Tokyo Century Corporation (President: Koichi Baba; Head Office: Chiyoda-ku, Tokyo) for the chemical tanker BONITA ANA.
This agreement is part of MOL Group’s “MOL Group Environmental Vision 2.2” and MOL Sustainable Finance Framework, which Tokyo Century deemed contributive to sustainability initiatives. The lease agreement includes sustainability performance targets aligned with the group’s environmental strategy, reducing lease payments as these targets are met.
Tokyo Century, serving as the enabler, has established Japan’s first “Sustainability Linked Finance and Transition Linked Finance Framework” to support this initiative under a Japanese Operating Lease with Call Option (JOLCO). The BONITA ANA project is the first to utilize this framework.
Environmental strategy is a central component of MOL Group’s “BLUE ACTION 2035” management plan, highlighting “marine and global environmental conservation” as a key sustainability issue. MOL aims to achieve net zero greenhouse gas (GHG) emissions by 2050 through collaboration with stakeholders and will continue leveraging sustainable financing frameworks for fundraising.
Notes:
- An enabler is a financial institution that supports the sustainability (transition) strategies of other companies through its services.
- Sustainability performance targets are set based on the environmental strategy of the financing company.
For more details, visit the Tokyo Century website.
