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Heiwa Real Estate Company’s New Sustainable Finance Initiative

Heiwa Real Estate Company, headquartered in Chuo, Tokyo, is taking significant strides in sustainable management by promoting sustainable finance. Recently, the company has successfully entered into a Sustainability-Linked Loan (SLL) agreement, a move aimed at enhancing its sustainability practices.

What is a Sustainability-Linked Loan (SLL)?

The Sustainability-Linked Loan is a unique financing mechanism that ties the borrower’s interest rates to ambitious sustainability performance targets (SPT). This structure is designed to motivate borrowers towards achieving their green goals by offering a financial incentive based on their success in meeting these targets.

In Heiwa Real Estate's case, the SPT includes maintaining a Climate Disclosure Project (CDP) score of A- or higher during the evaluation period of the loan, which is set to execute in August 2026. This approach not only promotes sustainable business practices but also ensures that the company remains accountable to its sustainability commitments.

Commitment to Transparency and Urban Development

In addition to implementing the SLL, Heiwa Real Estate aims to further enhance its sustainability management by adopting transparent financial disclosures that include their performance regarding sustainability efforts. Furthermore, the company is committed to contributing to the development of the Nihonbashi Kabutocho and Kayabacho areas, incorporating sustainable urban planning into their strategy.

By aligning their financial strategies with sustainability goals, Heiwa Real Estate is positioned to respond flexibly to the challenges posed by natural disaster risks, advancements in corporate governance, and increasing awareness of ESG (Environmental, Social, and Governance) and SDGs (Sustainable Development Goals).

Challenges and Opportunities Ahead

The changing business landscape presents both challenges and opportunities. Heiwa recognizes the ongoing shift in the management environment, driven by the need for a more resilient response to environmental changes and an enhanced focus on corporate responsibility. Therefore, the company remains committed to advancing its sustainability initiatives, aiming to flourish even in the face of an evolving marketplace.

As Heiwa looks to the future, it aspires to capitalize on new business opportunities while addressing societal challenges through corporate activities that also contribute to the achievement of the SDGs. Under the banner of “Bazukuri Company,” Heiwa is dedicated to improving stakeholder satisfaction through proactive engagement and communication, striving for a sustainable society.

Vision for Urban Development 2040

Heiwa Real Estate’s commitment to urban innovation aligns with its Vision for Nihonbashi Kabutocho and Kayabacho by 2040. With ongoing initiatives and information-sharing platforms like Kontext, KabutoLIVE, and FinGATE, the company continues to foster community engagement and development in these historic districts.

Company Overview

Founded in 1947 in the heart of Japan's financial district, Heiwa Real Estate operates as an owner of securities exchange buildings across major cities such as Tokyo, Osaka, Nagoya, and Fukuoka. With a foundation built on trust and a commitment to historical and modern values, Heiwa aims to create a prosperous future that benefits generations to come.

About Heiwa Real Estate Company

• - Established: July 1947
• - CEO: Kiyotaka Tsuchimoto
• - Headquarters: 1-10 Kabutocho, Chuo, Tokyo
• - Website: Heiwa Real Estate

Through this new venture in sustainable finance, Heiwa Real Estate is not only reinforcing its dedication to sustainability but is also setting an example for other companies in the real estate sector to follow suit.