Clean Nara, First in Paper Industry to Issue 30 Billion KRW Green Bonds

ESG Certification Evaluation 'G1' Grade, Financing for Eco-Friendly Facility Operation Investment... Accelerating ESG Management

[Asia Economy Reporter Kim Jong-hwa] Clean Planet, a comprehensive paper manufacturing company, has decided to issue 30 billion KRW worth of green bonds for the first time in the paper industry.

This green bond issuance was carried out to raise investment funds for eco-friendly facility operations, one of Clean Planet's ESG (Environmental, Social, and Governance) management goals, and the funds will be used for facility investments expected to have environmentally positive effects.

Clean Planet's green bonds received the highest G1 rating in the ESG certification evaluation by Korea Ratings Corporation, meeting the Green Bond Principles of the International Capital Market Association (ICMA). The rating also recognized efforts made for ESG management, including the development of eco-friendly product materials, expansion of eco-friendly energy businesses, realization of social value, and investment in environmental facilities.

The raised funds will be used for ▲energy recovery facilities through waste resource circulation ▲pollutant reduction facilities for air and water quality improvement, and through this, Clean Planet aims to achieve UNGC's Sustainable Development Goals (SDGs) such as 'Sustainable Cities and Communities,' 'Responsible Consumption and Production,' and 'Clean Water and Sanitation.'

Clean Planet started as a paper business based on resource circulation and has been continuously expanding eco-friendly management in the household goods business as well. In 2020, compared to 2018, it recorded remarkable achievements such as a 16% reduction in air pollutant emissions, an 11% reduction in greenhouse gas emissions, and a 79% increase in environmental facility investments over the past two years. The company is also making continuous efforts in developing environmentally friendly products such as biodegradable wet wipes and sanitary pads.

A Clean Planet representative said, "As we move toward becoming a 100-year company, sustainability is not a choice but a necessity," adding, "Our efforts for eco-friendly energy operations have been recognized, allowing us to receive the highest rating in the ESG bond issuance certification evaluation. This will serve as an opportunity to further accelerate our eco-friendly management."

Clean Planet's green bonds were issued through the 'ESG Bond Securitization Program,' which the Korea Development Bank has been continuously promoting since July to expand the base of ESG bond issuance and support corporate responsible management. The bonds were issued as unsecured private placement bonds, divided into two tranches, with 10 billion KRW and 20 billion KRW allocated respectively.

Green bonds are a type of ESG bond. ESG bonds are issued for the purpose of eco-friendly projects and socially responsible investments and are classified into green bonds, social bonds, and sustainability bonds. Green bonds are issued to raise funds specifically for solving environmental issues such as climate change.