The Bank of Iwate, Ltd.
Climate Impact & Sustainability Data (2022-04-01 to 2023-03-31, 2023-04-01 to 2024-03-31)
Reporting Period: 2022-04-01 to 2023-03-31
Environmental Metrics
Total Carbon Emissions:4,660 tCO2e/year (2022)
Scope 1 Emissions:1,113 tCO2e/year (2022)
Scope 2 Emissions:3,547 tCO2e/year (2022)
Scope 3 Emissions:1,524,234 tCO2e/year (2022)
ESG Focus Areas
- Regional development and support for the growth of regional industries
- Providing services and value through the use of data
- Leading and innovative responses toward the realization of a decarbonized society
- Building an organization that maximizes the value of human resources
- Enhancement of corporate governance structure
Environmental Achievements
- Established the Sustainability Promotion Committee in August 2022 to facilitate response to TCFD recommendations and contribute to a sustainable community.
Social Achievements
- Implemented D&I initiatives aiming to create flexible ideas that embrace diverse values and enhance corporate value by improving the sense of management participation and productivity of employees.
- Established various work style reform systems, including flextime, hourly-paid annual leave, leave for employees with partners who have given birth, reserve leave, life design leave, and remote work.
Governance Achievements
- Endorsed the TCFD recommendations in August 2021.
- Established the Sustainability Promotion Committee in August 2022.
- Improved management transparency and strengthened oversight functions by transitioning to a company with an Audit & Supervisory Committee.
Climate Goals & Targets
Long-term Goals:
- Net Zero Emissions by 2050
Medium-term Goals:
- Consolidated net income of ¥10.0 billion and ROE over 5.0% by FY2032.
- Sustainable finance target amount of ¥500.0 billion accumulated execution by FY2030.
- Promotion of female employees to executive positions: 30% or more (40% or more from FY2025) by FY2030.
- 100% of male employees taking childcare leave by FY2030.
Short-term Goals:
- Consolidated net income of ¥7.0 billion and consolidated ROE over 4.0% by FY2025.
Environmental Challenges
- Decline of traditional business models due to prolonged low interest rates.
- Need to respond to changes such as the entry of companies from other industries and the expansion of online banking.
- Rapidly changing and unpredictable business environment due to climate change, rising prices, and new technologies.
- Challenges in Iwate Prefecture such as business closures, population outflow, worker shortages, and lack of successors.
- Transition risks related to decarbonization, including carbon taxes, capital investment needs, and changes in consumer preferences.
- Physical risks related to climate change, including extreme weather events and sea-level rise.
Mitigation Strategies
- Formulated a new long-term vision to become “a company of value co-creation that will solve our customers’ issues and drive the sustainable growth of the local community.”
- Launched the 21st Medium-Term Management Plan – Regional Value Co-Creation Plan – to realize the long-term vision.
- Plans to manage climate-related risks in an integrated manner, including discussions in the Sustainability Promotion Committee and ALM Committee.
- Calculated risk amounts for transition and physical risks based on IEA and IPCC scenarios.
- Set finance execution targets to help solve environmental and social issues through loans and other forms of finance.
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- Higher frequency of extreme events such as floods, strong winds, heat waves, and snow damage
- Increase in average temperatures and rise in sea level
Transition Risks
- Occurrence or increase of carbon taxes
- Capital investment and new technologies for decarbonization becoming necessary
- Consumers no longer using conventional products and services due to higher environmental awareness
Reporting Standards
Frameworks Used: TCFD
Reporting Period: 2023-04-01 to 2024-03-31
Environmental Metrics
Total Carbon Emissions:2,825 tCO2e/year (2023)
Scope 1 Emissions:1,051 tCO2e/year (2023)
Scope 2 Emissions:1,774 tCO2e/year (2023)
Scope 3 Emissions:1,322,406 tCO2e/year (2023)
ESG Focus Areas
- Regional development and support for the growth of regional industries
- Providing services and value through the use of data
- Leading and innovative responses toward the realization of a decarbonized society
- Building an organization that maximizes the value of human resources (Human Capital Management)
- Enhancement of our corporate governance structure
Environmental Achievements
- Reduced Scope 1 and 2 GHG emissions from 4,660 t-CO2 to 2,825 t-CO2
- A subsidiary’s entry into the renewable energy-related business
- Participation in the “30 by 30 Alliance for Biodiversity”
- Joint promotion of Iwate Prefecture’s “Comprehensive Production Base for Food and Energy” project
- Endorsing the “Decokatsu” (a national movement to create a new rich lifestyle toward decarbonization)
Social Achievements
- Recognition as a “distinctive initiative of financial institutions, etc. contributing to regional revitalization”
- Publication of the report “Current State and Future Directions of the Forest Industry in the Tohoku Region”
- Promoting sustainability initiatives such as joining the “Watashi no Kigyo Ouendan” to support female entrepreneurs in Iwate Prefecture
- Starting to offer menus using substandard vegetables at our headquarters cafeteria as part of efforts to reduce food loss
- Introduction of a “job-based” personnel system with Professional and Management Tracks
Governance Achievements
- Establishment of the Sustainability Promotion Committee in August 2022
- Endorsement of the Task Force on Climate-related Financial Disclosures (TCFD) recommendations
- Establishment of sustainability-linked loans
Climate Goals & Targets
Long-term Goals:
- Becoming “a company of value co-creation that will solve our customers’ issues and drive the sustainable growth of the local community” by FY2032
Medium-term Goals:
- Achieve long-term targets of ¥10.0 billion in consolidated net income and an ROE of 5% or higher by FY2032
- Achieve over ¥1.0 billion in customer service business profit by FY2025
- Reduce OHR to 60% levels by FY2025
- Achieve 30% or more percentage of women in newly appointed manager positions by FY2030
- Achieve 100% or more percentage of male employees taking childcare leave by FY2030
- Accumulated amount of execution for sustainable finance to reach ¥500.0 billion by FY2030
Short-term Goals:
- Achieve ¥7.0 billion in consolidated net income and an ROE of over 4.0% by FY2025
Environmental Challenges
- Decline of traditional business models due to prolonged low interest rates
- Need to respond to changes such as the entry of companies from other industries and the expansion of online banking
- Increasing global efforts to address climate change
- Rising energy and raw material prices caused by heightened geopolitical risks
- Increase in business closures and dissolutions and a decline in business establishments in Iwate Prefecture due to population outflow, worker shortage, and lack of successors
- Transition risks related to decarbonization across various sectors
- Physical risks related to climate change, including extreme weather events
Mitigation Strategies
- Formulated a new long-term vision and 21st Medium-Term Management Plan—Regional Value Co-Creation Plan
- Developing effective measures based on three basic policies (Advancement of social solution business, Establishment of a solid management foundation to support the region, Create an organization in which diverse human resources can continue to work in a rewarding environment)
- Managing climate-related risks in an integrated manner, including discussions in the Sustainability Promotion Committee and ALM Committee
- Setting finance execution targets to help solve environmental and social issues through loans and other forms of finance
- Implementing D&I initiatives to enhance corporate value
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- Higher frequency of extreme events such as floods, strong winds, heat waves, and snow damage
- Increase in average temperatures and rise in sea level
Transition Risks
- Occurrence or increase of carbon taxes
- Capital investment and new technologies for decarbonization becoming necessary
- Consumers no longer using conventional products and services due to higher environmental awareness
Reporting Standards
Frameworks Used: TCFD