Climate Change Data

株式会社北國銀行 (Hokkoku Bank, Ltd.)

Climate Impact & Sustainability Data (2020-04 to 2021-03, 2020-09 to 2021-03, 2021-03)

Reporting Period: 2020-04 to 2021-03

Environmental Metrics

ESG Focus Areas

  • Climate Change
  • Regional Economic Revitalization
  • Human Resource Development
  • Corporate Governance
  • Diversity and Inclusion

Environmental Achievements

  • Implemented net-zero energy building (ZEB) initiatives in large branches to improve energy efficiency and environmental sustainability.
  • Published books on Hokkoku Bank's business model and digital strategy, promoting sustainability awareness.

Social Achievements

  • Launched a new account service, "HOKKOKU LIFE+", offering cashless payment, cloud banking, and other convenient features to enhance customer experience.
  • Established the "Hokkoku DX Cashless Fund" (1 billion yen) to promote cashless transactions and regional revitalization.
  • Provided various support for customers' life planning, including asset building and succession planning.
  • Supported employee well-being through initiatives such as promoting work-life balance, health management programs, and recurrent education.

Governance Achievements

  • Enhanced corporate governance and transparency through improved information disclosure and internal communication processes.
  • Revised shareholder return policy to prioritize stable dividends and share buybacks.
  • Actively engaged with shareholders and investors through online presentations and meetings.

Climate Goals & Targets

Long-term Goals:
  • Achieve 210 billion yen in operating profit and 130 billion yen in net profit by FY2031.
Medium-term Goals:
  • Achieve 160 billion yen in operating profit and 100 billion yen in net profit by FY2026.

Environmental Challenges

  • Rapidly changing social and economic conditions, including the impact of the COVID-19 pandemic and digital transformation.
  • Need to adapt to the changing needs and values of customers.
  • Maintaining business efficiency while expanding business areas.
Mitigation Strategies
  • Transitioning to a holding company structure to enhance group governance and synergy.
  • Expanding business areas through new subsidiaries in consulting and investment.
  • Implementing digital transformation (DX) and green transformation (GX) initiatives.
  • Strengthening consulting capabilities to support customer growth and regional revitalization.
  • Investing in employee development and training to adapt to changing needs.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

  • HOKKOKU LIFE+ account service

Reporting Period: 2020-09 to 2021-03

Environmental Metrics

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Increased the proportion of EV/HV vehicles in the company fleet to 8.5% in FY2020.
  • Supported 63 energy-saving consulting projects in FY2019 and 23 in FY2020 (as of September).
  • Provided loans utilizing interest subsidies for energy-saving equipment investments (4 projects, ¥369 million in FY2019; 2 projects, ¥25 million in FY2020).

Social Achievements

  • Implemented initiatives to create a work environment where women can thrive, including promoting short-term childcare leave (up to elementary school 3rd grade), extending childcare leave (up to 2 years), and providing support for returning employees.
  • Launched an ICT-based project to improve productivity in山中漆器 production.
  • Participated in the Ishikawa PPP/PFI regional platform.

Governance Achievements

  • Increased the ratio of independent outside directors to 33% in 2020.
  • Introduced an effective evaluation system for the board of directors in 2016.
  • Introduced a stock grant trust in 2017.

Climate Goals & Targets

Environmental Challenges

  • Economic impact of the COVID-19 pandemic.
Mitigation Strategies
  • Established consultation desks and dedicated phone lines for customers.
  • Simplified loan procedures for faster processing.
  • Promoted non-branch transactions.
  • Implemented telework and split shifts for employees.
  • Provided online training for new employees.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2021-03

Environmental Metrics

ESG Focus Areas

  • Climate change
  • Regional economic revitalization
  • Human resource development
  • Corporate governance

Environmental Achievements

  • Reduced printing volume from 1,802,044 sheets in 2017 to 479,781 sheets in 2020.
  • Provided loans utilizing the interest subsidy system for energy-saving equipment investment (2020: 2 cases, 108 million yen; cumulative: 6 cases, 477 million yen).

Social Achievements

  • Launched Hokkoku DX Cashless Fund (10 billion yen) to promote cashless society and regional revitalization.
  • Improved diversity management, increasing the ratio of female managers from 37% in 2017 to 43.1% in 2021.

Governance Achievements

  • Increased the ratio of independent outside directors to 45%.

Climate Goals & Targets

Medium-term Goals:
  • Increase ordinary profit (consolidated) to 160 billion yen by FY2026, and 210 billion yen by FY2031.
  • Increase net income (consolidated) to 100 billion yen by FY2026, and 130 billion yen by FY2031.
  • Increase new business revenue (consolidated) to 75 billion yen by FY2026, and 110 billion yen by FY2031.

Environmental Challenges

  • Decreased lending interest and securities interest/dividend income due to lower interest rates.
  • Increased credit costs due to the downgrading of some major clients.
  • Economic impact of the COVID-19 pandemic.
Mitigation Strategies
  • Implemented various measures to support customers and employees during the COVID-19 pandemic.
  • Continued to implement sufficient provisions to maintain a high recovery rate and reduce the risk of future impact on profits.
  • Accelerated digital transformation initiatives to improve efficiency and reduce costs.

Supply Chain Management

Climate-Related Risks & Opportunities