Vigeo Eiris provided second-party opinion on the first Green Bond issued by Mitsui O.S.K. Lines, Ltd
The Bond will be used to finance or refinance shipping projects aiming at reduction the environmental footprint of vessels
The Green Bond will be used to finance or refinance six Eligible Project categories (Ballast water treatment system, Sulfur Oxide (SOx) scrubber, LNG-fuelled vessels, LNG fuel bunkering vessel, New type of PBCF or Wind Challenger Plan projects).
Vigeo Eiris provided an independent Second Party Opinion on the sustainability credentials and management of this Green Bond leading to a moderate level of assurance on on the Issuer’s commitments and the Bond’s contribution to sustainability.
All Eligible Projects to be (re)financed by the Bond are expected to contribute to air and water pollution prevention, and marine biodiversity protection. As of today, although LNG fuel has not the highest reduction potential compare to other alternative fuels and energy, LNG is the best available option for full scale application to reduce emissions in the global shipping industry, especially for long-distance navigation purpose. Propeller Boss Cap Fins (PBCF) is an energy saving device, requiring less power to propel the vessel. However, LNG fuelled vessels and upgraded PBCF’s contribution to the energy transition and climate change is considered not substantial given the level of GHG reduction this industry should achieve based on a long-term perspective, although the issuer has formalized an environmental vision and action plan and has set ambitious medium to long-term GHG emission reduction targets toward FY2050.
Further information is available on by Mitsui O.S.K. Lines, Ltd. website