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American Katerra, a proud subsidiary of Yamaguchi Heavy Industries Ltd., is excited to announce our commitment to sustainable operations through the adoption of our parent company’s newly established Sustainability-Linked Loan (SLL) Framework. This initiative reinforces our dedication to building a sustainable future while aligning our financial strategy with ambitious environmental and social goals.
The announcement of Yamaguchi Heavy Industries for the Sustainability-Linked Loan Framework is here: https://www.yamakou.co.jp/news/press-release/3010/
Driving Sustainability Through Innovative Financing
The Sustainability-Linked Loan Framework, developed by Yamaguchi Heavy Industries in collaboration with the Kyushu Economic Research Center, is designed to incentivize the achievement of rigorous Sustainability Performance Targets (SPTs). By integrating sustainability into our financing strategy, American Katerra will pursue measurable goals that contribute to a low-carbon economy and a more sustainable society.
Key highlights of the framework include:
Key Performance Indicators (KPIs)
KPI-1
Achieve a 15.0% reduction in CO₂ emissions per activity volume (per ton of incoming materials) in Scope 3 Category 1 by FY2029, compared to FY2023.
KPI-2
Reduce CO₂ emissions per activity volume in Scope 1 and 2 by 17.4% by FY2029, relative to FY2023.
Sustainability Performance Targets (SPTs)
- Annual reduction targets of 2.5% for KPI-1 and 2.9% for KPI-2, culminating in the FY2029 goals.
- These targets are verified annually by an independent third-party evaluator to ensure transparency and accountability.
Loan Characteristics
Interest rates on loans will adjust based on the achievement of SPTs, rewarding progress with lower rates and encouraging continuous improvement.
Global Alignment
The framework aligns with the Sustainability-Linked Loan Principles (SLLP) and Japan’s Green Loan and Sustainability-Linked Loan Guidelines, ensuring compliance with international standards. It has also received a second-party opinion from Codo Advisory, Inc., validating its robustness.
A Commitment to Green Innovation
American Katerra will leverage Yamaguchi Heavy Industries’ industry-leading sustainability practices to drive green innovation in the U.S. market. Our parent company has set ambitious medium- and long-term goals, including a 60% reduction in CO₂ emissions per activity volume by FY2035 compared to FY2023, surpassing benchmarks set by the UK and Japanese governments.
To achieve these targets, we are adopting strategies such as:
- Green Steel Procurement: Prioritizing low-emission steel, such as “Hobo Zero” and “NSCarborex Neutral,” to reduce supply chain emissions.
- Renewable Energy: Utilizing 100% renewable electricity in manufacturing processes, certified fossil-free.
- Advanced Technologies: Implementing innovative welding methods, carbon capture and storage (CCS), and welding robots to minimize emissions.
Additionally, Yamaguchi Heavy Industries’ commitment to the SteelZero Initiative inspires our goal to ensure 50% of steel procured by 2030 is low-emission, with a roadmap to 100% net-zero steel by 2050.
Building a Sustainable Future Together
As American Katerra embarks on this journey, we are committed to transparency and accountability. We will report annually on our progress toward SPTs, with results verified by independent evaluators and shared publicly on our website. This framework not only supports our environmental goals but also strengthens our mission to “Build for Dreams,” creating jobs, delivering essential products, and leading the industry toward a sustainable future.
We invite our stakeholders, partners, and communities to join us in this transformative effort. For more details on Yamaguchi Heavy Industries’ Sustainability-Linked Loan Framework, visit Yamaguchi Heavy Industries’ official website or explore the second-party opinion from Codo Advisory, Inc..
Together, let’s engineer a sustainable tomorrow.
