Watches
Here we outline our four businesses, through which we contribute widely to the lives of people around the world.
Machine tools
Citizen began production of machine tools in 1936, utilizing the technologies and know-how developed through the manufacture of watch parts. Our products contribute to the development of manufacturing industries all over the world.
Corporate Philosophy
Loved by citizens, working for citizens.
CITIZEN's corporate philosophy, "Loved by citizens, working for citizens" is to
deeply contribute to the lives of people around the world through the manufacturing of products that are loved and trusted by citizens.
Message From President & CEO
Crafting a new tomorrow Towards sustainable value creation
IR Library
CITIZEN REPORT(Integrated Report)
Top Management
By further promoting sustainable management, we aim to become a company that can create value sustainably
Sustainability Management
CITIZEN Group’s Sustainable Management
- TOP
- Sustainability
- Sustainability Management: Sustainability-linked Bonds
Sustainability-linked Bonds
Sustainability-linked Bonds
Since its establishment, CITIZEN Group has been consistently committed to manufacturing in consideration of people and the environment, rooted in its corporate philosophy of "Loved by citizens, working for citizens.” In December 2019, the Group revised the CITIZEN Group Environmental Policy, which forms the basis of the Group's environmental measures, to promote global environmental management aimed at realizing a sustainable civil society. In April 2020, the Group also revised the CITIZEN Group Environmental Vision 2050, which commits to decarbonization with virtually zero greenhouse gas and sustainable resource use emissions, and newly formulated the CITIZEN Group Resource Recycling Vision. In February 2022, the Group also revised the CITIZEN Group Environmental Goals 2030, referring to its five targets for achieving the SDGs, in line with changes in the external environment; the Group will implement "sustainable management" through production activities at "sustainable factories" that consider the environment throughout the value chain, including suppliers.
To put "sustainable management" into practice, the Group formulated CITIZEN Group Vision 2030 as the Group's long-term vision reflecting various future environmental changes that are predicted to occur down the road. By backcasting from this CITIZEN Group Vision 2030, the Group identified material issues with a large impact that the Group should address preferentially. The Group identified five issues: responding to climate change and contributing to a recycling-oriented society, contributing to high-quality life, providing solutions in industry, increasing job satisfaction and cultivating human resources, and fulfilling social responsibility.
The Group believes that, among these issues, responding to climate change is one of the most serious global environmental risks. As measures to mitigate climate change, the Group as a whole is focusing on energy saving measures at offices and factories and the introduction of energy from renewable resources to reduce its GHG emissions. To express its commitment to mitigating climate change, the Group participates in the Japan Climate Initiative, and in FY2020, announced its support for the TCFD recommendations. Furthermore, in the CITIZEN Group Environmental Goals 2030, the Group sets forth in a roadmap for environmental initiatives and FY2030 targets covering a wide range of areas, including the reduction of greenhouse gas and hazardous chemical emissions, and effective use of water and other resources. In January 2023, the Group acquired SBT certification for its revised greenhouse gas emissions (Scopes 1, 2 and 3) reduction target.
In this context, the Company decided to issue bonds whose terms vary depending on whether a predetermined sustainability performance target is achieved or not, in order to encourage action on climate change, which is one of its material issues. The Company selected the rate of reduction of greenhouse gas emissions (Scope 1 and 2) as the KPI for the Bonds, believing that achievement of this target will contribute to realization of the Group Vision. Through issuance of the Bonds, the Company will promote global environmental management aimed at achieving the SDGs and will contribute to the realization of a decarbonized and resource-recycling society that is safe, secure and affluent.
What is a Sustainability-linked Bonds
Bonds whose terms vary depending on whether predetermined sustainability or ESG targets are achieved or not. The issuer of the sustainability-linked bonds commits to future improvements in sustainability outcomes with a pre-defined timeline. Specifically, sustainability-linked bonds are financial instruments based on the evaluation of future performance using key performance indicators (KPI) and sustainability performance targets (SPT)* determined in advanced by the issuer. The terms of the bonds vary depending on whether the SPT set as a target to be achieved with respect to the KPI is achieved.
- * A target based on the issuer's management strategy which determines the terms of issuance of the sustainability-linked bonds
Overview of the Bonds
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| Name | Citizen Watch Co., Ltd. 4th Unsecured Bonds （Sustainability-Linked Bond） |
|---|---|
| Maturity | 5 years |
| Amount | 10.0 billion yen |
| Interest rate | 0.578% |
| Determination date of issuance terms | September 13, 2023 |
| Issue date | September 20, 2023 |
| Redemption date | September 20, 2028 |
| KPI | Rate of reduction in the Group's greenhouse gas emissions (Scope 1 and Scope 2)*
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| SPT | 33.6% reduction in greenhouse gas emissions (from FY2018 level) by FY2026 |
| Characteristics of the bond after assessment | If the sustainability performance target (SPT) is not achieved as of the assessment date (October 31, 2027), the characteristics of the Bonds vary and the Bonds will have either or both of the characteristics described below. The Company will decide between (i) and (ii) below for the variable characteristics on or after the abovementioned assessment date. |
(i) If the SPT is not achieved, the Company will donate an amount equivalent to 0.1% of the SLB issue amount to a public interest incorporated association, a public interest incorporated foundation, an international institution, a local government authorized NPO, a local government, etc. for the purpose of environmental conservation activities* by the redemption date of the Bonds.
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(ii) If the SPT is not achieved, the Company will purchase emission rights (credits or certificates representing greenhouse gas emissions reductions*) in an amount equivalent to 0.1% of the SLB issue amount by the redemption date of the Bonds.
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| Rating acquired | A (Rating and Investment Information, Inc.) |
| Lead underwriters | Nomura Securities Co., Ltd. (Lead Managing Underwriter), Mizuho Securities Co., Ltd., SMBC Nikko Securities Inc., Okasan Securities Co., Ltd. |
| Structuring agent*1 | Nomura Securities Co., Ltd. |
| Third-party evaluation | The Company obtained a third-party opinion from Rating && Investment Information, Inc. (R&I) to the effect that the Bonds complies with the Sustainability-Linked Bond Principles 2023 of the International Capital Market Association (ICMA) and the Sustainability- Linked Bond Guidelines 2022 of the Ministry of the Environment of Japan. |
| Framework |
Sustainability Linked Bond Framework (Japanese) (PDF: 1.20MB)
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| News Release | August 24, 2023 Notice Regarding Issuance of Sustainability-linked Bonds (PDF: 2.34MB)
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| September 13, 2023 Notice Regarding Determination of Issue Terms of Sustainability-linked Bonds (PDF: 183MB)
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- An entity that supports the introduction of green bonds through the establishment of a framework for sustainability-linked bonds, the provision of advice on obtaining second-party opinions, and other means.
Compliance of Sustainability-linked Bonds
The Company formulated the Sustainability-Linked Bond Framework for the issuance of the Bonds and obtained a third-party opinion from Rating & Investment Information, Inc. (R&I) to the effect that the framework complies with the Sustainability-Linked Bond Principles of the International Capital Market Association (ICMA) and the Sustainability- Linked Bond Guidelines and the Sustainability-Linked Loan Guidelines of the Ministry of the Environment of Japan.