Man walks in front of the Nissan logo at Nissan Gallery in Yokohama

Nissan signed a $1.44 billion green loan agreement to fund the company's carbon-neutral initiatives, the Japanese automaker announced Wednesday.

The loan was arranged by Mizuho Bank and MUFG Bank with contract periods of five and seven years. Nissan stated that it would use the funds to research and develop zero-emission vehicles, electric vehicle components as well as other carbon-neutral initiatives as part of its goal of achieving carbon neutrality across the entire company by 2050.

Nissan already has plans in place to electrify the majority of its fleet by the early 2030s and has started promoting innovations across the four strategic areas in electrification and manufacturing technologies.

The areas Nissan has outlined as important for its carbon neutrality goal are innovating efficient batteries for electric vehicles, energy efficiency across electrified powertrains, renewable energy generation, and greater efficiency throughout the manufacturing process.

"Response to climate change is one critical issue that must be addressed globally," wrote Nissan in the company's carbon neutrality statement.

Nissan's 2022 program places an emphasis on reducing carbon emissions not just while a vehicle is in use but throughout the entire life of the vehicle. This includes corporate activities and Nissan's own infrastructure.

Nissan has been a pioneer in automotive green energy. It was in 2010 that Nissan established a joint venture with Sumitomo Corporation in order to research more uses for the lithium-ion batteries used in electric vehicles. The venture later established the first lithium-ion recycling plant in Japan in March 2018.

Joji Tagawa, Nissan's chief sustainability officer, said in an Aug. 2 news release that the company "is determined to be a truly sustainable company," adding that "our progress and achievements from the past year emphasize how sustainability lies at the heart of our purpose-led growth strategy, and how long-term value creation is driven at the intersection of innovation and sustainability."