ESG Finance

Donated electric vehicles (EVs) and educational support materials to Niiza City Certificate of Appreciation from the Mayor of Niiza City

April 20, 2023

Sanken Electric Co., Ltd. recently cooperated in Saitama Resona Bank's donation of electric vehicles (EVs) to Niiza City and educational support materials to elementary and junior high schools in the city through "Saitama Resona CSR Private Placement Bonds with Donated Goods" handled by Saitama Resona Bank. The "CSR Private Placement Bonds with Donated Goods" is a bond issue in which we use a portion of our fees from the issuance of the bonds to designate the recipients and items to be donated to the bank.

On April 20 (Thu), a presentation ceremony was held at Niiza City Hall. After opening remarks by Mr. Satoshi Fukuoka, President and CEO of Saitama Resona Bank, and Mr. Masaru Takahashi, President of our company, Mr. Fukuoka presented the donation catalogue to Mr. Suguru Namiki, Mayor of Niiza City, and Mr. Namiki, Mayor of Niiza City, and Mr. Kaneko, Chief Education Officer, presented a certificate of appreciation to the donors.

We have been doing business in Niiza for 71 years, and have grown along with the development of the city of Niiza. We will continue to contribute to society in various ways so that we can grow as a company that is valuable to the local community and to our various stakeholders.

Greenbond

Green Bond Issuance

Sanken Electric Co., Ltd (hereinafter referred to as "the Company") issued Green Bonds in June 2022.
Sanken Electric promotes ESG management and aims to contribute to a sustainable society through its core business of power semiconductors. With regard to GHG emissions, which are feared to have an impact on climate change, the Company is monitoring emissions throughout its supply chain in Scope 1, 2, and 3. We aim to reduce GHG emissions in Scope 1 and 2 by 33% from the fiscal 2020 level by 2030, and beyond that, we will accelerate our efforts to achieve our long-term goal of carbon neutrality by 2050.
We will contribute to the resolution of social issues by investing the proceeds of this Green Bond issue in projects that will reduce GHG emissions.

Green Finance･Framework

We have established a Green Finance Framework to ensure that the funds raised through Green Bonds are used appropriately.
This framework is based on the "Green Bond Principles 2021" of the International Capital Markets Association (ICMA),the "Green Bond Guidelines 2020" of the Ministry of the Environment, the "Green Principles 2021" of the Loan Market Association (LMA),the Asia-Pacific Loan Market Association (APLMA), and the Loan Syndication and Trading Association (LSTA),and the "Green Principles 2021" of the International Finance Association (IFA).The Green Bond Guidelines are based on the Green Principles 2021 of the Loan Syndication and Trading Association (LSTA) and the Sustainability Linked Loan Guidelines 2020, and are third-party certified by R&I.

Notice of Conclusion of a Sustainability Linked Loan Agreement

September 27, 2021

Sanken Electric Co., Ltd. (headquartered in Niiza City, Saitama Prefecture, hereinafter "we") entered into a syndicated Sustainability Linked Loan ("SLL") agreement with Resona Bank, Ltd., Saitama Resona Bank, Ltd., Mizuho Bank, Ltd., the Mitsubishi UFJ Bank, Ltd., Sumitomo Mitsui Banking Corporation, and the 82 Bank, Ltd. on this date. We hereby provide the following information.

The SLL is based on the SLL Principles established by the Loan Market Association ("LMA") and other bodies, and the Company has established an ambitious Sustainability Performance Target ("SPT"). By linking its achievement with interest rates and other borrowing conditions, the SLL aims to enhance the Company's commitment to sustainable management and, through its achievement, to grow and promote economic activities that are sustainable in terms of the environment and society.

We have identified two material issues as materiality: initiatives to save electricity and increase efficiency through the development, production, and sale of eco-energy-efficient products; and efforts to reduce environmental impact in implementing our core business. We are committed to contributing to the realization of a sustainable society through the development, production, and sale of power electronics products that use high reliability and cutting-edge technologies. As part of these efforts, in light of the strong social demands for preventing global warming, the SLL Agreement we signed this time stipulated in the SPT the rate of reduction in CO₂ emissions (Scope 1 and 2*) compared to fiscal 2020 as an effective milestone for achieving reductions in environmental impact over the medium to long term.

Through this financing, we will develop measures to reduce CO₂ emissions of electricity required for production, in conjunction with the further promotion of our core business of developing environmentally conscious products globally. As a specific measure, we plan to achieve zero CO₂ emissions and "carbon offset" at the Horimatsu Plant through initiatives for the utilization of renewable energy, including not only energy conservation at the Ishikawa Sanken-Horimatsu Plant, our group company, but also the development of on-site forests, the installation of solar power plants, and clean energy derived from hydroelectric power. We also plan to accelerate efforts to reduce CO₂ at each Group company.

Summary of the SLL Agreement

• * Scope 1: Direct emissions of greenhouse gases by businesses themselves
• * Scope 2: Indirect emissions associated with the use of electricity, heat, and steam supplied by other companies
  This SLL Agreement has been granted by the Japan Credit Rating Agency, Ltd. ("JCR") a third-party opinion on the SLL principles established by the LMA, etc., as well as the conformity to the Green Loan and Sustainability Link Loan Guidelines issued by the Ministry of the Environment, and the reasonableness of the established SPT.
  For details, please refer to the release published by JCR.
  https://www.jcr.co.jp/greenfinance/sustainability/topic/