The Japan Credit Rating Agency (JCR) has emerged as an active player in the realm of Green/Social Finance in response to the increased interest in ESG (Environmental, Social, and Governance) investment among issuers and investors. The credit rating agency offers comprehensive evaluations to green, social, and sustainable financing, which includes not just bonds or loans but also other forms of debt instruments.
In a bid to constantly improve and adapt to the ever-changing financial landscape, JCR has committed to staying current with market situations. By keeping their finger on the pulse of global trends and shifts, the agency aims to enhance its service offerings and ensure its ratings remain accurate and relevant.
Among the notable recent accomplishments, JCR awarded prominent ratings to two significant financial frameworks in August 2023. The Sustainability Finance Framework by Chiba Prefecture received SU1(F) and Blue 1(F) ratings on August 4, reflecting its robust commitment to sustainable financial practices.
Meanwhile, the Green Finance Framework of Takara Leben Real Estate Investment was also recognized by JCR. On July 31, 2023, it was assigned a Green 1(F) rating, the highest possible rating, signifying the company’s strong commitment to promoting green finance.
Another significant player in the green finance sector is Excellent REIT Advisors. The company established a green finance framework that allows it to raise funds through green bonds and loans for properties that meet specific environmental standards.
In a significant development, Excellent REIT Advisors issued its first green bond on September 25, 2020. The proceeds from this bond will be utilized for the acquisition of eligible green projects and loan repayment. This initiative was met with high praise, with the green bonds receiving the highest rating, “Green 1”, from the Japan Credit Rating Agency. This rating underscores the company’s strong commitment to promoting ESG management.
It’s clear that JCR’s role in promoting and evaluating green and social finance is gaining momentum. As more businesses and investors turn towards sustainable and socially responsible investment, JCR’s evaluations will undoubtedly play a critical role in ensuring transparency and accountability in these financial practices.
