Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• SDGs
• ESG
• Regional Sustainability
• Business Succession
• Decarbonization
• Sustainable Finance
• Human Resources Development
• Digitalization

Environmental Achievements

• Reduced greenhouse gas emissions by 8.5% compared to FY2021; achieved a 50% reduction from FY2013.
• Switched head office building to renewable electricity in April 2022.
• Environmental improvement benefits from green bonds (end of FY2021): 65,576 tons of CO2/year

Social Achievements

• Launched a staffing service in January 2022.
• Selected by the Cabinet Office as an indirectly subsidized service provider for the 2021 Leading Human Resource Matching Project.
• Dispatched three instructors to teach a Finance Literacy course at Gunma University in FY2021.
• Conducted financial education classes for high school students in FY2021.
• Supported activities such as sponsoring regular concerts for the Gunma Symphony Orchestra.

Governance Achievements

• Established a Sustainability Committee in April 2022, chaired by the President.
• Revised criteria for Board of Directors agenda to allow more time for discussion of major management directions and policies.
• Introduced a performance-linked share remuneration system for inside directors in June 2021, incorporating non-financial indicators measuring contributions towards the SDGs.

Climate Goals & Targets

Environmental Challenges

• Prolonged low interest rates.
• Prolonged impact of COVID-19 pandemic.
• Decreasing birthrate and increasing aging population.
• Climate change (physical and transition risks).
• Business succession issues.
• Digitalization of the banking sector.

Mitigation Strategies

• Implemented five reform initiatives to reinforce strengths in Connections (Sales Process, Business Process, Channel, Human Resources, and External Collaboration).
• Developed a mid-term business plan focused on innovation for purpose.
• Established a Sustainability Committee to address sustainability issues.
• Set a net-zero greenhouse gas emissions target for FY2030.
• Developed a risk appetite framework for business management and risk management.
• Strengthened digital capabilities through alliances and internal initiatives.
• Introduced various sustainable finance services (Sustainability Linked Loans, Gungin SLLs, SDGs private placement bonds, etc.).
• Implemented digital strategies to improve operational efficiency and customer experience.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Damage to real estate collateral and business facilities

Transition Risks

• Increased credit risk due to tighter climate change-related regulations; changes in consumer product preferences; increased migration costs of transitions to low-carbon products.

Opportunities

• Reduction of operating costs through resource and energy conservation; increased demand for public works projects and corporate capital investment as countermeasures for climate change-related disasters; provision of new financial products and services to support the transition to a decarbonized society.

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC), TCFD Recommendations

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 13 (Climate action)

The Gunma Bank Group's initiatives contribute to these goals through sustainable finance, regional revitalization, human resource development, and decarbonization efforts.

Sustainable Products & Innovation

• Sustainability Linked Loans
• Gungin SLLs
• SDGs private placement bonds
• Loans for renewable energy projects
• Financing with Special Clause for waiver in the event of Torrential Rain and Earthquake

Environmental Metrics

ESG Focus Areas

• Sustainable development of regional economy
• Preservation and creation of the global environment
• Promotion of a variety of human resources into active positions
• Promotion of partnerships

Environmental Achievements

• Reduced greenhouse gas emissions by 26.2% from FY2013 to FY2022 (8,272 tons of CO2)
• Switched all electricity at head office building and computer center to renewable energy
• Acquired naming rights to Gungin Oze Katashina Power Plant and will procure carbon-free renewable energy
• Promoting the use of eco-friendly electric vehicles at all banking outlets
• Set a greenhouse gas emissions reduction target of net zero by fiscal 2030

Social Achievements

• Launched Connecting Process, engaging in in-depth dialogue with 2,548 corporate customers and identifying over 7,000 needs
• Increased ratio of female managers to 18.6% (surpassing 2024 target)
• Introduced a side job system, allowing 21 employees to pursue other work
• Provided SDGs Initiative Support Service to 181 companies
• Improved the well-being of employees, resulting in 80.5% paid leave taken

Governance Achievements

• Established Sustainability Committee chaired by the President
• Introduced a performance-linked share remuneration system for inside directors, incorporating non-financial indicators
• Enhanced corporate governance through the appointment of Inside and Outside Auditors and Outside Directors
• Established Nomination Advisory Committee and Compensation Advisory Committee

Climate Goals & Targets

Environmental Challenges

• Declining population and environmental issues
• Rising raw material costs and securing human resources for local companies
• Changes in customer needs and channels
• Global price rises, economic impact of monetary policy, and geopolitical risks
• Rapid technological advancements

Mitigation Strategies

• Established Purpose: “We use our strengths in connections to spin the threads of the future for local communities.”
• Implemented Innovation for Purpose mid-term business plan
• Introduced Connecting Process for sales activities
• Implemented five reform initiatives: Sales Process, Business Process, Channel, Human Resources, and External Collaboration reforms
• Developed digital strategies for community, customer contact points, and internal operations
• Strengthened cooperation through alliances with regional banks
• Established Sustainability Committee and implemented sustainability initiatives
• Revised personnel system to reward challenges and improve human capital

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Damage to real estate collateral due to flooding
• Increased credit risk due to business stagnation caused by damage to customers’ business facilities
• Increased operating costs due to damage to the Bank’s business facilities

Transition Risks

• Increased credit risk due to tighter climate change-related regulations
• Increased credit risk due to negative impacts on customer performance (transition costs, market shifts)
• Damage to the Bank’s reputation due to inadequate disclosure

Opportunities

• Provision of new financial products and services to support the transition to a decarbonized society
• Reduction of operating costs through resource and energy conservation

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 17

Initiatives contribute to these goals through sustainable finance, decarbonization efforts, human resource development, and partnerships.

Sustainable Products & Innovation

• Gungin SLL (sustainability-linked loan)
• SDGs private placement bonds
• Loans for renewable energy projects