January 28, 2004


Bank Creates Lending System to Promote Eco-Friendly Management

Keywords: Money Non-manufacturing industry Policy / Systems 

The Development Bank of Japan, established based on the Development Bank of Japan Law on October 1, 1999, announced in September 2003 that it will introduce a new loan system during the next fiscal year to promote environment-conscious management. Its corporate lending mechanism to date has been to first specify the types of facilities it will finance, such as pollution prevention equipment, and then to lend funds for its acquisition. But with the new system, the bank will first identify companies and then support their eco-friendly management, by broadly backing financing for environmental conservation through lending and corporate bond guarantees.

The selection of companies will be based on the DBJ's own screening assessment that grades companies' records of performance. Qualitative evaluation will include company goals, structure, and efforts for the environment, and quantitative assessment will be made in terms of eco-efficiency and resource productivity, among other items. The full details are yet to be decided, but the bank plans to select about 100 items to evaluate companies in the manufacturing and non-manufacturing sectors, and small- and medium-sized companies. Certain criteria will provide bonus points in the grading system.

After selecting a company for new loans, the bank will continue monitoring its management situation. The bank aims to promote environment-conscious management, in cooperation with private financial institutions, by disclosing its methods of evaluation, the allocation of marks and assessment criteria.

Posted: 2004/01/28 09:08:03 AM
Japanese version