Investing in the world's first plastic waste reduction bond

When it started

In July 2020, Henkel in Germany issued the world's first corporate bond with limited use of funds for the purpose of reducing plastics waste. Dai-ichi Life and Dai-ichi Frontier Life have collaborated with Henkel for issuance and purchased the entire issuance amount.

Explanation of technology and business model

Henkel is a major global consumer goods manufacturer, and globally manufactures and sells household products such as household detergents, shampoos, and toothpastes. The funds raised by the corporate bonds will be used for the following two efforts of the company to reduce plastics waste.

＜1＞ Improvement of recyclability of products manufactured by the company (introduction of completely reusable packaging materials, improvement of bottle recyclability, etc.)

＜2＞ Reduction of the amount of plastic materials used in the company's manufacturing process (development of shampoos and detergent bottles using recycled plastics and recycled materials, etc.)

Henkel is a founding member of the Alliance to End Plastic Waste, which works to reduce plastics waste. Through this investment, it can be expected to spreadthe expansion of plastics waste reduction efforts in related industries.

Achievements and goals

Henkel has set sustainability-related goals, including the following three, as its sustainability strategy, and projects funded by corporate bonds will be linked to these goals.

＜1＞ Make packaging materials 100% recyclable and reusable (by 2025)

＜2＞ Reduce the amount of petroleum-derived plastic used by 50% (same as above)

＜3＞ Zero plastic waste to the natural environment (same as above)

The specific impact of investing in corporate bonds (reduction of plastics waste, increase in the proportion of reusable and recyclable packaging, etc.) will be monitored annually.

Related information

https://www.dai-ichi-life.co.jp/company/news/pdf/2020_032.pdf

https://www.meti.go.jp/shingikai/energy_environment/ce_finance/pdf/003_03_01.pdf