Climate Change Data

Environmental Metrics

ESG Focus Areas

• Diversity
• Community Investment
• Corporate Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Sponsored Mito HollyHock soccer club and held a company-sponsored tournament for youth teams.
• Supported Mito Indoor Orchestra.
• Participated in volunteer activities (e.g., cleaning up Lake Inawashiro).
• Launched "Shine! MITO Women's Challenge" to promote women's advancement.

Governance Achievements

• Revised dividend policy from "approximately 30%" to "30% or more".
• Repurchased and cancelled own shares to improve capital efficiency.
• Established Customer Service Improvement Committee.

Climate Goals & Targets

Environmental Challenges

• Slow progress in mutual fund/foreign bond net increase and new account openings.
• Impact of consumption tax increase on the Japanese economy.

Mitigation Strategies

• Implemented various campaigns, economic lectures, and seminars (inheritance/gift) to address slow progress in mutual fund/foreign bond net increase and new account openings.
• Upward revision of fund wrap target from 190 billion yen to 240 billion yen.

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

• Community Investment
• Diversity & Inclusion
• Customer Service
• Employee Well-being

Environmental Achievements

• Used FSC® certified paper and vegetable oil ink in the report. Null

Social Achievements

• Donation of ¥10,000,000 to the Japanese Red Cross Society Ibaraki Branch for Kanto-Tohoku heavy rain disaster relief.
• Employee volunteer contributions and company donation of supplies to disaster relief efforts.
• Annual contribution from a portion of the trust fee of the investment trust "Mito Securities Asia-Oceania Bond Open (with donation)" to disaster relief funds in Ibaraki, Fukushima, Miyagi, and Iwate prefectures.
• Sponsorship of Mito Hollyhock Festival, renamed "Mito Securities Challenge Festival."
• Second female branch manager appointed.
• Establishment of a Customer Service Improvement Committee.
• Kurumin (Next Generation Certification Mark) acquisition.

Governance Achievements

• Held a company briefing session for institutional investors and analysts in July.

Climate Goals & Targets

Environmental Challenges

• Slow progress on investment trust/foreign bond net increase and new account openings in the third medium-term management plan.
• Decreased trading profits due to volatile stock market.

Mitigation Strategies

• Implementation of various campaigns, economic lectures by economic experts at each branch office, and inheritance/gift seminars.
• Efforts to expand new investor base through Japan Post Holdings' listing and Junior NISA.
• Opening of new branch offices in Tochigi and Saitama prefectures to strengthen brand presence in northern Kanto region.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Use of FSC® certified paper and vegetable oil ink

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Kurumin (Next Generation Certification Mark)

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

• Community Contribution
• Diversity and Inclusion
• Compliance
• Corporate Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Launched "Mito Women's Challenge" to promote women's advancement.
• Held a company sports day to enhance employee communication and well-being.
• Supported local sports and arts initiatives.
• Provided financial education to children.

Governance Achievements

• Established CSR principles and a regional contribution activity policy.
• Implemented measures to prevent customer fraud.

Climate Goals & Targets

Environmental Challenges

• Decreased investment trust sales due to global stock market fluctuations.
• Decreased trading profits due to reduced US stock trading volume.

Mitigation Strategies

• Focused on increasing fund wrap fees and other stable revenue sources.
• Implemented the Fourth Medium-Term Management Plan (2016-2019) to strengthen the profit base.

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

• Launched "Self-Innovation (self-transformation) training" for female employees to enhance their role awareness.
• Implemented CSR initiatives, including community service activities (cleaning, disability support, financial education).

Governance Achievements

• Established an independent Nomination and Remuneration Committee.
• Implemented an executive compensation system linked to long-term performance indicators.
• Introduced a system of executive officers to separate management supervision and business execution functions.

Climate Goals & Targets

Environmental Challenges

• Maintaining stable earnings and expanding the profit base.
• Achieving the numerical targets of the Fourth Medium-Term Management Plan.
• Achieving qualitative targets in the long-term management strategy.
• Reducing administrative errors and further improving customer-centric business operations.
• Increasing the ratio of female managers to create a more supportive work environment.
• Continuing and expanding community contribution activities.
• Improving customer service through efficient work processes and employee training.
• Securing new accounts and attracting younger customers.
• Adapting to the changing competitive landscape of the securities industry.

Mitigation Strategies

• Implemented the "Fourth Medium-Term Management Plan" (2016-2019) and "Management Vision" (2015-2022).
• Focused on customer-centric sales strategies, including new fund introduction and increased fund-wrap balances.
• Implemented "Business Reform Project" to improve efficiency and reduce costs.
• Implemented training programs to improve employee skills and knowledge.
• Regularly conducted stress tests on liquidity to ensure financial stability.
• Maintained minimum borrowing to ensure stable funding and maintain good relationships with financial institutions.
• Developed and published "Policy for Customer-Oriented Business Operations" to prioritize customer needs.

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

• Environment
• Social
• Governance

Environmental Achievements

• Appropriate management of air conditioning temperatures
• Use of eco-cars for company vehicles
• Use of recycled paper for business cards and copy paper

Social Achievements

• Donations to children's canteens and food banks
• Support for organizations assisting people with disabilities
• Lectures at Saturday learning programs
• Implementation of industry-academia collaborative lectures
• Community cleanup activities and volunteer activities
• Installation of AEDs and communication boards
• Disaster relief support
• Donations and participation in afforestation activities
• Work style reform
• Initiatives for health management

Governance Achievements

• Strengthening corporate governance
• Thorough compliance
• Risk management system
• Customer-centric business operations

Climate Goals & Targets

Environmental Challenges

• Stagnant economic mood due to global economic slowdown from US-China trade friction
• Decreased commission fees due to the directionless stock market
• Decreased sales of investment trusts due to worsening investment environment
• Decrease in fund wrap operating fees and investment trust agency fees

Mitigation Strategies

• Focus on portfolio sales combining high-return and stable investment funds
• Lowered minimum deposit amount for fund wrap to attract more customers
• Continued efforts towards achieving the 5th medium-term management plan and management vision

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability

Social Achievements

• Increased consultant hiring (approx. 480, including 160 new graduates)

Climate Goals & Targets

Environmental Challenges

• Maintaining high consultant quality and quantity in a competitive market.

Mitigation Strategies

• Aggressive hiring of new graduates and experienced consultants, OJT training

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability
• Community Contribution
• Governance
• Human Resources
• Digital Transformation

Environmental Achievements

• Not disclosed

Social Achievements

• Increased community investment through donations for COVID-19 relief and other initiatives.
• Implemented a three-year training plan for employee development, with over 90% achieving FP qualifications.

Governance Achievements

• Transitioned to a company with an audit and supervisory board, enhancing oversight and decision-making speed. Increased the ratio of outside directors to over one-third.

Climate Goals & Targets

Environmental Challenges

• High dependence on domestic equities.
• Shortage of sales staff.
• Aging customer base.
• Slow pace of digitalization.
• Low levels of US equity holdings despite growth.

Mitigation Strategies

• Focusing on portfolio proposals with long-term holdings of Japanese and US stocks, and recommended funds.
• Strengthening sales staff support through the headquarters and customer center.
• Expanding customer center operations to include foreign equity orders and outbound calls.
• Implementing digital tools like iPads for improved proposals and efficiency.
• Developing a three-year training plan for employee development.

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: TCFD (implicitly mentioned)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 11: Sustainable Cities and Communities
• Goal 17: Partnerships for the Goals

The company's initiatives in community contribution, employee development, and sustainable business practices contribute to these goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Customer-centric business operations
• Investment in human capital
• SDGs, community contribution
• Climate change risk
• Corporate governance

Social Achievements

• Established a Diversity Promotion Section within the HR department to support the active participation of diverse employees and implement flexible work styles. Introduced pre-application for overtime work to prevent long working hours and childcare/nursing care systems exceeding legal standards.
• Achieved 4 consecutive years (2021-2024) of certification as a Health Management Excellent Company by the Japan Health Conference.
• Implemented a self-nomination system to support employee growth and the realization of the behavioral guideline "Challenge Yourself."

Governance Achievements

• Established a Nomination and Remuneration Committee as an advisory body to the Board of Directors to enhance the fairness and transparency of director nominations and remuneration, and strengthen the Board's supervisory function.
• All principles of the Corporate Governance Code are implemented.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Health Management Excellent Company (Large-scale business sector) for 4 consecutive years (2021-2024) by the Japan Health Conference

Environmental Metrics

ESG Focus Areas

• Financial Literacy
• Community Investment
• Social Contribution
• Sustainability
• Stakeholder Engagement

Social Achievements

• Provided financial literacy education to university students and schoolchildren.
• Supported various community initiatives through the 'Future Support System', including NPOs and local orchestras.
• Implemented electronic provision of shareholder meeting materials.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Food Donation
• Financial Education
• Regional Revitalization
• Environmental Protection (Forest Conservation, Climate Change Mitigation, Ocean Conservation)
• Social Equality
• Sustainable Consumption and Production

Environmental Achievements

• Participated in tree planting activities and cleanup efforts after firework displays and at shrines and beaches.
• Donated disaster relief food to reduce food waste.

Social Achievements

• Donated disaster relief food to eight organizations, including food drives and children's canteens (2,300 meals in July 2024).
• Provided financial education to elementary, middle, and high school students.
• Supported local sports teams (Mito HollyHock and Ibaraki Robots) and the Mito Chamber Orchestra.
• Made donations to facilities supporting people with disabilities.
• Implemented various systems to support employee growth and work-life balance.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decreasing forests globally (4.7 million hectares annually)
• Increasing plastic waste in the ocean (8 million tons annually)
• Rising global temperatures and increased natural disasters
• Food waste (4.72 million tons annually in Japan)

Mitigation Strategies

• Donated disaster relief food and participated in tree planting activities.
• Participated in cleanup activities.
• Promoted energy conservation and the use of public transportation.
• Encouraged the use of eco-bags and responsible recycling.
• Promoted the practice of 'temaedori' (taking items with the closest expiration dates first).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Increased natural disasters (e.g., heavy rain, typhoons)

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1 (No Poverty)
• Goal 2 (Zero Hunger)
• Goal 4 (Quality Education)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 14 (Life Below Water)
• Goal 17 (Partnerships for the Goals)

The report highlights various initiatives contributing to these goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed