Japanese shipping company Nippon Yusen Kabushiki Kaisha (NYK) has been awarded Japan’s first loan related to environmental sustainability.

The five-year sustainability-linked loan totals JPY50 billion (£354m) and will see interest rate fluctuate depending on sustainability performance – for example, hitting green goals early could see it fall and increasing emissions could see it rise.

The loan is linked to a score provided by the Carbon Disclosure Project (CDP) each year, with the finance being provided by MUFG Bank, Norinchukin Bank, Mizuho Bank and Sumitomo Mitsui Banking Corporation.

In similar news, Prada unveiled what it claims to be the first Sustainability Linked Loan in the luxury goods industry earlier this month.

The firm said: “The purpose of this loan is for NYK to promote its Environmental, Social and Governance (ESG) management and motivate the company to maintain a high CDP score by responding to climate change through business activities.”

The EU Council recently agreed its position on a revision of shipping emission rules.