April 22nd, 2025
Codo Advisory Inc.
Codo Advisory Issues Second Party Opinion on Yamaguchi Heavy Industries’ Sustainability-Linked Loan Framework
Codo Advisory, Inc. (Head Office: Chuo-ku, Fukuoka) is pleased to announce that it has provided a Second Party Opinion (SPO) on the Sustainability-Linked Loan Framework developed by Yamaguchi Heavy Industries Co., Ltd. (Head Office: Minato-ku, Tokyo).
In an effort to accelerate its contribution to a sustainable society, Yamaguchi Heavy Industries is considering the use of sustainability-linked loans as a financing mechanism. The framework was developed with the support of the Kyushu Economic Research Center (Head Office: Chuo-ku, Fukuoka), which acted as the sustainability coordinator. Codo Advisory served as the independent third-party evaluator for the SPO.
As Japan’s first licensed consulting firm using the ACT (Accelerate Climate Transition) initiative’s methodology—developed by the French government agency ADEME and the carbon disclosure project CDP—Codo Advisory brings a proven track record in supporting the development of credible and actionable decarbonization transition plans. Our SPO evaluations are guided by a proprietary ESG assessment framework based on ACT indicators, enabling us to deliver comprehensive, transparent, and reliable assessments of KPIs and SPTs from both qualitative and quantitative perspectives.
In this evaluation, the KPIs1 were assessed as “Robust” and SPTs2 as “Ambitious”, the second highest evaluation. Yamaguchi Heavy Industries was particularly recognized for its strategic alignment of KPIs with core business operations, the establishment of targets exceeding the Science Based Targets initiative (SBTi) standards for SMEs, and its pioneering decision to join the SteelZero initiative—the first Japanese company to do so. These efforts reflect the company’s strong ambition and genuine commitment to decarbonization. Development of a Business as Planned (BAP) scenario to evaluate KPIs and SPTs against may improve their evaluation.
This SPO marks a significant step forward in promoting sustainable finance in the Kyushu region. Codo Advisory remains committed to supporting the sustainable development of businesses and communities by providing high-quality, trusted evaluations and expert support.
ご参考
- Yamaguchi Heavy Industries’ press release：https://www.yamakou.co.jp/news/press-release/3010/
- Kyushu Economic Research Center’s press release：https://www.kerc.or.jp/info/2025/04/post-119.html
- Second-Party Opinion on Yamaguchi Heavy Industries’ Sustainability-Linked Loan Framework
- More information about our sustainable finance services：https://codo.jp/en/transition-financing/
- More about ACT: https://codo.jp/en/act-assessment-low-carbon-transition-plan-stress-test/
以上
For media inquiries, please contact：
Codo Advisory – Public Relations
contact@codo.jp ・092-409-4337
- A Key Performance Indicator (KPI) refers to a quantifiable metric that reflects the borrower’s performance on material environmental or social issues. KPIs form the basis for setting SPTs and are used to monitor and assess the borrower’s progress on sustainability initiatives over time. ↩︎
- A Sustainability Performance Target (SPT) is a specific, measurable goal set in relation to a KPI, which the borrower commits to achieving within a defined time frame. In sustainability-linked loans, SPTs are directly linked to loan conditions and are a key component in evaluating a borrower’s progress toward sustainability commitments. ↩︎