Nippon Life establishes Transition Finance Framework

Written by Adam Cadle

19/06/2024

Nippon Life has established the Nippon Life Transition Finance Framework, which provides with concrete evaluation criteria, its basis and evaluation process regarding transition finance.

The insurer is to conduct the evaluation whether a company’s long-term plan is in line with an internationally credible, science-based pathway that is consistent with the Paris Agreement pursuing a 1.5C target.

Furthermore, the insurer said it will support a company’s overall activities as an institutional investor by evaluating the company’s long-term plan and strategy, rather than just focusing on individual technologies. The insurer said through ongoing monitoring and dialogues, it will flexibly cope with changes in a company’s long-term plan in order to evaluate the plan, considering uncertainty in the future.

“Specifically, based on the information of corporate level short-, mid-, and long-term GHG emissions reduction goals (2030, 2040, and 2050, respectively) provided by a company, we will evaluate and confirm if the long-term plan is aligned with the Paris Pathway. For the company with the plan that is not aligned with the Paris Pathway at corporate level, we will proceed to the evaluation at asset level. Even in cases of neither aligned with the Paris Pathway at corporate level nor asset level, we still support the company’s decarbonisation efforts through our non-label finance.”

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