First in the Domestic Food Service Industry! Watami Signs 'Nature Impact Finance' Loan Agreement with Sumitomo Mitsui Trust Bank - Promoting the 'Watami Model' to Contribute to the Development of a Sustainable Society

Watami Co., Ltd. (Headquarters: Ota-ku, Tokyo, hereinafter 'the Company') is pleased to announce that it has signed a 'Nature Impact Finance' loan agreement (hereinafter 'this Agreement') with Sumitomo Mitsui Trust Bank, Limited (Headquarters: Chiyoda-ku, Tokyo, hereinafter 'Sumitomo Mitsui Trust Bank'). This agreement marks the first case in Japan for a food service company under the 'Nature Impact Finance' program offered by Sumitomo Mitsui Trust Bank.

■ Background of the Agreement and Our Company's Sustainability Initiatives

The Watami Group was founded in 1984 with the slogan 'To become the group that gathers the most 'thank yous' on Earth,' and operates its business activities under the mission of 'Creating a better environment and providing better opportunities for the improvement of humanity on Earth.'

The Watami Group has been promoting initiatives to comply with environmental laws and reduce its environmental impact to realize a sustainable society in its business activities (domestic food service, overseas food service, home meal delivery, food manufacturing, agriculture, and environmental business). These efforts include obtaining ISO 14001 certification in 1999 and being certified by the Ministry of the Environment as the only (at the time) 'Eco-First Company' in the food service industry in 2010. In 2019, the company established an SDGs Promotion Headquarters and articulated a sustainable policy as a core management issue. It has identified SDGs materiality, formed five cross-organizational task force teams, and is promoting initiatives to achieve these goals. In line with the Watami Sustainable Policy, the Watami Group aims to achieve SDGs through sustainable business activities via the Watami Model (a circular sixth-sector industry model utilizing renewable energy).

The 'Nature Impact Finance' agreement signed this time is an impact finance initiative intended to support our company's efforts concerning nature and contribute to the development of a sustainable society. It does this by evaluating the impact of our business activities on nature and encouraging further enhancement of information disclosure based on recommendations from the Taskforce on Nature-related Financial Disclosures (TNFD).

■ Evaluation Framework

The evaluation related to this agreement (hereinafter 'this Evaluation') consists of a 'Sustainability System Evaluation' by Sumitomo Mitsui Trust Bank, as well as an 'Impact on Nature Evaluation' and a 'Natural Capital Management Evaluation based on TNFD Disclosure, etc.' by ERM Japan, Ltd. (*1). Through this evaluation, the impact of our company's business activities on nature is identified, and Sumitomo Mitsui Trust Bank monitors the progress of the KPIs and targets set by our company, creating a system that supports the realization of our impact.

Furthermore, the framework for this financing has received a third-party opinion (*2) from the Japan Credit Rating Agency, Ltd. regarding its conformity with the Ministry of the Environment's 'Basic Concepts of Impact Finance.'

■ Goals and Key Performance Indicators (KPIs) of this Evaluation

In concluding this agreement, an evaluation by ERM Japan, Ltd. (hereinafter 'Expert Evaluation') confirmed the validity of the identified significant impacts, goals, and Key Performance Indicators (KPIs). The following goals and KPIs, which our company discloses based on TNFD recommendations, were confirmed to be appropriate. We will continue to vigorously promote initiatives to achieve these goals.

The Expert Evaluation also pointed out areas where our current initiatives are considered excellent, as well as future challenges.

(*1) ERM Japan, Ltd.

ERM Japan, Ltd., the Japanese subsidiary of the ERM Group, has consultants with extensive knowledge and experience in EHSS (Environment, Health, Safety, and Society) and sustainability. It supports private companies, industry groups, and government-related organizations both in Japan and overseas in resolving various environmental risks. (https://www.erm.com/ja/)

(*2) Third-Party Opinion

Please refer to the website of the Japan Credit Rating Agency, Ltd. (https://www.jcr.co.jp/greenfinance/)

* For more on the Watami Group's sustainable initiatives ⇒ https://www.watami.co.jp/csr/

■ Watami Co., Ltd.

【Address】1-1-3 Haneda, Ota-ku, Tokyo

【Representative】Miki Watanabe, Chairman, President & CEO

【Established】May 1986

【Business Activities】Domestic and international food service, home meal delivery, agriculture, environmental business, and human resources services.

【Website URL】http://www.watami.co.jp