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Mitsui O.S.K. Lines Pioneers Japan’s First Sustainability-Linked Lease for Chemical Tanker

Mitsui O.S.K. Lines, Ltd. (MOL), under the leadership of President & CEO Takeshi Hashimoto, is taking a significant step forward in its environmental strategy. MOL’s group company, MOL Chemical Tankers Pte. Ltd. (MOLCT), spearheaded by President Akira Sasa, has signed Japan’s inaugural sustainability-linked lease agreement with Tokyo Century Corporation. This groundbreaking agreement pertains to the chemical tanker BONITA ANA and aligns seamlessly with the MOL Group’s environmental vision.

Dubbed the “MOL Group Environmental Vision 2.2,” this strategy, alongside the MOL Sustainable Finance Framework, has been recognized by Tokyo Century as instrumental in addressing sustainability issues. This recognition was pivotal in finalizing the lease agreement, which integrates sustainability performance targets in line with the group’s environmental goals. Notably, the lease payments will be reduced as these targets are met, reinforcing the commitment to environmental stewardship.

Tokyo Century’s role as an enabler in this initiative is notable. The company has launched Japan’s first “Sustainability Linked Finance and Transition Linked Finance Framework.” This framework aims to support projects under a Japanese Operating Lease with Call Option (JOLCO), with the BONITA ANA project being the first to leverage this innovative financial structure.

Environmental strategy forms a core component of MOL’s group management plan, “BLUE ACTION 2035.” This plan underscores the importance of marine and global environmental conservation, marking it as one of MOL’s primary sustainability issues. MOL’s dedication to environmental conservation is further evidenced by its ambitious goal of achieving net zero greenhouse gas (GHG) emissions by 2050. The company is committed to ongoing sustainable financing, utilizing frameworks like the one established by Tokyo Century to support its fundraising efforts.

This agreement is more than a financial transaction; it symbolizes a collaborative effort to foster sustainability within the maritime industry. By integrating financial incentives with environmental performance, MOL and Tokyo Century are setting a precedent for future initiatives. The BONITA ANA project exemplifies how business and environmental interests can align, driving progress towards a more sustainable future.

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