Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• ESG investing

Social Achievements

• Held 10 seminars for listed companies on shareholder engagement, receiving positive feedback.

Governance Achievements

• Increased the ratio of outside directors to 50%.

Climate Goals & Targets

Environmental Challenges

• Increased scrutiny from institutional investors and activists regarding governance issues.
• Growing need for shareholder engagement (SR) consulting due to increased foreign shareholder ratios, corporate governance code, and stewardship code.

Mitigation Strategies

• Established a new investment banking headquarters in Marunouchi to enhance financial, legal, and auditing expertise.
• Improved global research and consulting capabilities through AI-powered systems.
• Expanded services to include M&A advisory, proxy advisory, and shareholder meeting support.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Governance

Governance Achievements

• Stock split, dividend increase, and buyback of treasury stock.

Climate Goals & Targets

Environmental Challenges

• Uncertainty in global and Japanese capital markets, increasing importance of ESG in corporate evaluation, and potential for corporate restructuring and mergers and acquisitions.

Mitigation Strategies

• Developing and providing unique equity consulting services to navigate these changes.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Governance
• Social Responsibility (SR)

Social Achievements

• Increased SR support, governance consulting, and capital policy simulations for existing clients.
• Developed AI-driven activist response capabilities.
• Expanded independent director introduction service with diverse candidates meeting international standards.

Governance Achievements

• Expanded services to include governance consulting and capital policy simulations.
• Improved corporate governance through initiatives like increased independent directors and enhanced board evaluation.

Climate Goals & Targets

Environmental Challenges

• Increasingly difficult to secure stable shareholders due to decreasing cross-shareholding ratios.
• Active activism leading to increased demand for proxy advisory and M&A services.

Mitigation Strategies

• Expanded services to address activist demands, including capital policy, M&A strategy, and governance consulting.
• Established a robust equity consulting system leveraging expertise in shareholder analysis and activism response.
• Opened offices in Kasumigaseki, NY Manhattan, and Marunouchi to strengthen corporate foundation for growth.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Governance
• ESG disclosure

Governance Achievements

• Increased demand for services related to shareholder engagement and governance due to stricter voting rights and the increasing activity of activist investors in Japan.

Climate Goals & Targets

Environmental Challenges

• Increased activity of activist investors in Japan
• Stricter voting rights exercise by institutional investors

Mitigation Strategies

• Providing comprehensive consulting services in IR/SR, investment banking, and securities agency business to adapt to market changes.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Governance

Governance Achievements

• Expanded proxy advisory and financial advisory services, focusing on shareholder interests and fair M&A practices.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Governance
• Stakeholder engagement
• Corporate Social Responsibility

Social Achievements

• Improved stakeholder engagement through enhanced information disclosure and IR activities.

Governance Achievements

• Strengthened corporate governance to ensure management soundness, efficiency, and transparency.

Climate Goals & Targets

Environmental Challenges

• Increased activism in the Japanese capital market, posing challenges to corporate governance and business strategies.
• COVID-19 pandemic impacting economic activity and increasing capital risk concerns among listed companies.

Mitigation Strategies

• Expanded investment banking services (PA/FA) to address activist challenges and M&A situations.
• Developed new work styles leveraging AI and IT expertise to adapt to the changing environment.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• ESG

Climate Goals & Targets

Environmental Challenges

• The degree of urgency was loosened due to the COVID-19 pandemic with regard to the progress of SR consulting for listed companies.

Mitigation Strategies

• The SR Consulting Department and Investment Banking Department accurately grasped these business opportunities, and continued to increase the number of entrustments of large-scale projects such as PA and FA for contests for corporate control, activist responses, and MBOs. At the same time, we expanded our equity consulting services to existing and new clients. These services included capital risk response, practical guidelines on business restructuring, ESG-focused responses.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Governance

Climate Goals & Targets

Environmental Challenges

• Carrying forward of the completion of some large-scale projects planned for the second half of the fiscal year to the following year.
• Impact of the lifting of ROE standards application by advisory companies on the exercise of voting rights in the run-up to the general meetings of shareholders due to the coronavirus outbreak.
• Increased need by listed companies for equity consulting due to a revision of the Tokyo Stock Exchange (TSE) market categories and the Corporate Governance Code.

Mitigation Strategies

• Deepening and expanding the business base through even more advanced solutions.
• Absorbing the increase in labor costs and achieving an improved growth in profit margin on sales.
• Establishing Japan Originated Investment Bank, Inc. to expand investment banking business.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability
• Climate Change
• Diversity & Inclusion

Social Achievements

• Actively recruits women, foreigners and midcareer hires; implemented action plans to create a comfortable environment where employees can demonstrate their abilities and achieve a work-life balance (maternity/childcare leave, shortened working hours, curbing overtime, telecommuting, flexible work system).

Governance Achievements

• Established the Nomination and Compensation Advisory Committee (with a majority of independent outside directors) to ensure fairness and objectivity in director nomination and compensation; conducted an evaluation of the effectiveness of the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Lagging promotion of women to management positions; drastically changing business environment requiring flexible revisions to plans.

Mitigation Strategies

• Further efforts to develop human resources and improve the internal environment to raise the ratio of women in management positions; prompt response to changes in the business environment, clients’ needs, and competitive situation; setting and achieving annual performance goals.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Increased selling, general, and administrative expenses due to aggressive human resource investment and system investment in securities agency services.

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Increased selling, general, and administrative expenses due to human resource strengthening at subsidiary JOIB and system investment in securities agency services.

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Governance
• Compliance

Governance Achievements

• Strengthened information management system, conflict of interest management system, and risk management system supervision functions.

Climate Goals & Targets

Environmental Challenges

• A former officer was indicted for violating the Financial Instruments and Exchange Act (insider trading regulation violation).
• Decrease in new and additional project acquisitions in real shareholder identification surveys and other peacetime response projects due to the inability to actively propose equity consulting services until the end of the previous fiscal year.

Mitigation Strategies

• Continuing efforts to further improve the compliance awareness of officers and employees.
• Strengthening information management system, conflict of interest management system, and risk management system supervision functions.
• Resuming active proposal activities for equity consulting.

Supply Chain Management

Climate-Related Risks & Opportunities