The Development Bank of Japan (DBJ), a government-affiliated financial institution, announced on November 16, 2006, that its financing to companies for environmentally conscious management systems reached a total of 102 billion yen (U.S.$864 millions) by the end of first half of fiscal 2006. In the DBJ's lending program for promoting environmentally conscious management, which started in April 2004, the bank uses its own screening system to classify applicants in terms of environmentally conscious management into four grades (including rejection). Based on the results of the screening process, the bank ranks qualified companies on a three-point scale. Higher ranking companies will be offered loans with more favorable conditions. To date, the DBJ has lent over 100 billion yen under this program.
In fiscal 2004, the DBJ applied this program to various industries, while developing it as a financial scheme appropriate to medium and small companies. In fiscal 2005, collaboration and cooperation with financial institutions in local communities expanded in terms of environmental fields. It encouraged local companies that had made efforts in environmental activities to apply for financing, and thus the implementation of this program in medium companies increased. At the same time, the grading system encouraged some companies to improve their environmental management.
In fiscal 2006, the DBJ revised the rating system: the bank added biodiversity to its criteria, and paid more attention to reducing environmental impacts at the consumer stage by increasing the number of questions about the development of products and services. The bank reconsidered its policy to promote environmentally conscious management, and lowered the acceptance level for medium and small companies, as well as creating a logo for environmental ranking.
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