Japanese shipping major NYK has signed a sustainability-linked loan agreement worth $50 million with the compatriot Shiga Bank.

This is the first sustainability linked loan contract denominated in a foreign currency to be inked in Japan, and the second one for NYK following the signing of a yen-denominated deal in November 2019 in Japan.

The loan’s interest rate is linked with the company’s score on environmental and sustainability governance as well as efforts to combat climate change.

“NYK’s goal is to support ESG management and is in line with the company’s ESG management strategy,” the company said.

“To strongly promote ESG management, NYK will promote new value creation as a sustainable solution provider through a business strategy that responds to climate change.”

The Japanese major announced its plans to increase focus on sustainability goals in 2021 that would support its businesses and the environment.

Announcing the company’s ESG Story in February this year, Hitoshi Nagasawa, NYK President, said that companies that fail to respond to society’s demands in relation to ESG would not survive more than several years.

“However, it is not enough just to talk about the importance of ESG. In order to firmly establish ESG as part of our corporate culture, it will be necessary for all employees throughout the group to fully understand and to transform awareness so that ESG is used as a measure for judging all actions,” he added.

Under the ESG Story, NYK plans to accelerate the integration of ESG into its management strategy.

Source: Offshore Energy