Climate Change Data

Environmental Metrics

ESG Focus Areas

• Renewable Energy
• Sustainable Agriculture
• Regional Economic Development

Environmental Achievements

• Provided a sustainability-linked loan to Suzuka Group for the development of solar power generation projects on abandoned farmland.

Social Achievements

• Supporting Suzuka Group's initiative to revitalize abandoned farmland and contribute to regional economic development.

Governance Achievements

• The sustainability-linked loan adheres to the Sustainability-Linked Loan Principles and the Ministry of the Environment's guidelines.

Climate Goals & Targets

Environmental Challenges

• Securing abandoned farmland for the project can be challenging due to land ownership issues and negotiations with landowners.

Mitigation Strategies

• Suzuka Group utilizes its network of agricultural corporations and leverages its experience in land acquisition and negotiation to overcome these challenges.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Contribution to decarbonization goals through renewable energy generation

Reporting Standards

Frameworks Used: Sustainability-Linked Loan Principles, Ministry of the Environment's Green Loan and Sustainability-Linked Loan Guidelines 2022

Third-party Assurance: Rating and Investment Information, Inc. (R&I)

UN Sustainable Development Goals

• SDG 2
• SDG 7
• SDG 11
• SDG 12

The project contributes to these goals by promoting sustainable agriculture, renewable energy, urban-rural linkages, and responsible consumption and production.

Environmental Metrics

ESG Focus Areas

• Regional community prosperity
• Financial service advancement
• Environmental conservation
• Employee engagement and diverse workforce
• Governance strengthening

Environmental Achievements

• Switched to carbon-neutral city gas and CO2-free electricity at headquarters.
• Established Ichinomiya Mirai Energy Co., Ltd., a local new power company.

Social Achievements

• Achieved 88% male parental leave rate in 2022.
• Awarded “Aichi Women Shining Company” by Aichi Prefecture.
• Provided support for startups through Aichi Capital Co., Ltd.

Governance Achievements

• Adopted an audit and supervisory committee system.
• Implemented an executive officer system.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on business activities and financial performance.
• Transition risks associated with decarbonization.
• Physical risks such as large-scale flood damage.

Mitigation Strategies

• Risk management focusing on credit risk and operational risk.
• Scenario analysis using IEA's 1.5°C scenario and IPCC's 4°C scenario.
• Development of ESG finance products and consulting services.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Large-scale flood damage

Transition Risks

• Changes in client performance due to decarbonization

Opportunities

• Increased demand for ESG finance and consulting services

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Sustainability-linked loans, positive impact finance, SDGs evaluation services

Awards & Recognition

• Platinum Kurumin, Eruboshi, Aichi Women Shining Company

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Economic

Environmental Achievements

• Increased industrial waste recycling rate to 85% by 2031 (from 79.4% in 2023)

Social Achievements

• Increased average employee paid leave days to 11 by 2027 (from 7 in 2023)

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Waste generation from construction activities
• Potential for water and air pollution during construction
• Work-related accidents due to outdoor work

Mitigation Strategies

• Implementing protective measures to prevent soil and debris scattering during construction
• Utilizing cameras and appropriate personnel allocation for efficient work and reduced resource consumption
• Flexible break times based on weather and temperature to reduce employee health burden
• On-site waste sorting and processing at the company's recycling center

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: UNEP FI Positive Impact Finance Principles, Environmental Agency's Basic Concept of Impact Finance

Certifications: Null

Third-party Assurance: Rating and Investment Information, Inc. (R&I)

UN Sustainable Development Goals

• SDG 8
• SDG 9
• SDG 11
• SDG 12

The company's activities contribute to these goals through job creation, sustainable infrastructure development, responsible waste management, and promotion of a circular economy.

Sustainable Products & Innovation

• RC40 recycled concrete product

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions (Scope 1) from 27.1t-CO2 in 2022 to 24.7t-CO2 in 2023 through promoting public transportation, car sharing, and cycle sharing in business activities.
• Reduced GHG emissions (Scope 2) from increased levels in 2022 to 145.9t-CO2 in 2023 by switching to renewable energy in some offices and other fixed assets.
• 80-90% of renovations incorporate water and energy-saving equipment.

Social Achievements

• Developed and implemented the "MUGEN ESTATE Group Human Rights Policy", based on international guidelines.
• Achieved "Kurumin" certification in April 2023 for supporting employees with childcare.
• Implemented various programs to enhance employee growth and well-being, including management training and leadership programs.

Governance Achievements

• Established a Sustainability Committee chaired by the President and CEO to oversee sustainability initiatives.
• Adherence to Corporate Governance Guidelines to ensure transparency and soundness.

Climate Goals & Targets

Environmental Challenges

• Increase in Scope 3 emissions (69,659.6t-CO2 in 2023, a 51.7% increase year-on-year), mainly due to increased sales.
• Gap in paid leave rate between management and non-management staff.

Mitigation Strategies

• Plans to promote environmentally friendly real estate transactions and development to curb emission increases.
• Target of 80% paid leave rate for management staff by 2029.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Careful calculation of necessary materials to prevent waste during ordering.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding, high tides

Transition Risks

• Stricter environmental regulations

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD

Certifications: Kurumin (2023)

Third-party Assurance: Rating and Investment Information, Inc. (R&I)

UN Sustainable Development Goals

• SDG 8
• SDG 11
• SDG 12

The company's activities contribute to these goals through promoting sustainable employment, creating sustainable housing, and responsible resource management.

Sustainable Products & Innovation

• Renovations incorporating water and energy-saving equipment

Awards & Recognition

• Kurumin certification (2023)