Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Cultural Promotion
• Regional Safety

Environmental Achievements

• Implemented CO2 zero day movement, achieving 22.8% participation rate among monitored businesses and 40.3% among bank employees for commuting.
• Participated in the national movement for global warming prevention, "Team Minus 6%"

Social Achievements

• Launched "Thanks 60" community contribution activities in various fields including environmental protection, culture, and safety.
• Established an NPO grant system, supporting 3 organizations in the first round.
• Held the "Toyowa Bank Cup Oita Prefecture Gateball Tournament."
• Held the "16th Public Amateur Painting Exhibition."

Governance Achievements

• Strengthened compliance system with the establishment of a Compliance Council and Compliance Department.
• Implemented a hotline system for reporting compliance violations.
• Established a customer protection management system.

Climate Goals & Targets

Environmental Challenges

• World economic downturn, financial crisis, rapid yen appreciation impacting business performance and employment.
• Significant increase in credit costs due to worsening client conditions.
• Evaluation losses on securities due to global financial market turmoil.
• Failure to achieve targets for core business net profit ROA and business gross profit expense ratio in the management strengthening plan.

Mitigation Strategies

• Continued efforts to improve profitability and strengthen the financial base according to the management strengthening plan.
• Implemented preventive measures to mitigate risks.
• Utilized business tie-up with Nishi Nihon City Bank for product development.
• Developed a new management strengthening plan.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Community Contribution
• Crime Prevention

Environmental Achievements

• Implemented CO2 zero day movement (multiple times in 2009 and 2010)
• Participated in Team Minus 6%
• Implemented Cool Biz and Warm Biz to reduce energy consumption
• Supported NPOs focused on environmental protection

Social Achievements

• Launched 'Thanks 60' activities for community contribution
• Supported local NPOs through a grant program
• Organized street cleaning campaigns
• Established a children's safety program ('Kodomo Renrakujo')
• Implemented a campaign to eliminate drunk driving
• Held an entrepreneurship seminar for kids
• Organized the Howa Bank Cup Oita Prefecture Gateball Tournament
• Installed 'Oita Cancer Treatment Support Vending Machines'

Governance Achievements

• Established a compliance program and strengthened the compliance system
• Established a customer protection management system
• Established internal audit department directly under the board of directors
• Established an anti-social forces response policy
• Implemented an executive compensation system (details not specified)

Climate Goals & Targets

Environmental Challenges

• Economic downturn impacting lending interest income
• High unemployment rate in Oita prefecture
• Decreased return on assets (ROA)
• Need for further strengthening of financial base

Mitigation Strategies

• Implemented a management strengthening plan
• Focused on strengthening profitability and financial base
• Implemented measures to prevent and resolve non-performing loans
• Strengthened risk management
• Implemented cost reduction measures

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Implemented CO2 zero day movement (11 times in 2011)
• Implemented Cool Biz initiative to reduce energy consumption

Social Achievements

• Held the 20th Toyo Bank Cup Oita Prefecture Gateball Tournament
• Launched "Howa Growth Base Strengthening Fund" to support businesses in medical/care, tourism, food, and technology sectors
• Participated in Oita Prefecture's SME revitalization fund with relaxed lending conditions for earthquake-affected customers
• Donated 4,010,000 yen to disaster relief efforts following the Great East Japan Earthquake
• Reduced transfer fees for visually impaired customers using bank counters

Governance Achievements

• Established a compliance council and compliance department
• Implemented a compliance training program for all employees
• Established a hotline system for reporting compliance violations
• Established an anti-social forces response policy

Climate Goals & Targets

Environmental Challenges

• Low interest rates impacting securities interest and dividend income
• Need for further strengthening of financial base to maintain and enhance financial functions and contribute to the regional economy

Mitigation Strategies

• Implemented measures to mitigate credit costs and securities valuation losses, resulting in a return to profitability
• Continued efforts to improve profitability and increase internal reserves, while controlling the outflow of profits other than dividends

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

• Regional economic revitalization
• CSR
• Women's empowerment
• Disaster relief

Environmental Achievements

• Not disclosed

Social Achievements

• Established partnerships with local governments and universities for regional development initiatives.
• Hosted the 23rd Public Amateur Painting Exhibition.
• Established a universal design experience space at the main branch.
• Implemented a women's empowerment plan in accordance with the Act on the Promotion of Women's Participation in the Workplace.
• Supported the Oita Trinita soccer team.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Economic slowdown due to falling oil prices and slowing growth in emerging economies.
• Weakening of the yen.
• Slow recovery in personal consumption.
• Negative interest rates implemented by the Bank of Japan.
• The 2016 Kumamoto earthquake impacting the bank's operating areas.

Mitigation Strategies

• Implemented a management strengthening plan focused on regional revitalization and contribution.
• Provided support for SMEs through business improvement, restructuring, and growth development.
• Strengthened the financial intermediary function.
• Developed new initiatives to contribute to customer sales growth.
• Implemented measures to enhance operational capabilities, improve administrative quality, and develop human resources.
• Established disaster relief support programs for individuals and businesses affected by the Kumamoto earthquake.

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

• 地域への徹底支援による地元経済の活性化
• 次世代育成支援
• 地域貢献

Environmental Achievements

• Not disclosed

Social Achievements

• 「第10回 NPO 団体への助成金制度」助成金贈呈
• 「第16回アントレプレナーシップセミナー for Kids」開催
• 「夏休み親子スクール」開催
• 次世代認定マーク（愛称『くるみん』）取得

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• 九州北部豪雨や台風第18号による交通インフラの寸断や住宅等への甚大な被害

Mitigation Strategies

• 被災された皆さまに対し様々なご支援
• 事業者さま向けの「ほうわ災害復興支援ファンド」、個人のお客さま向けの「災害復興応援ローン」の提供

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• 九州北部豪雨、台風第18号による被害

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: 次世代認定マーク（愛称『くるみん』）

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 Development
• Sustainable Finance
• NPO Support

Social Achievements

• Donation of goods to Oita Prefectural Saiki Higher Technical College from the proceeds of "Howa SDGs Private Placement Bonds"
• Granting subsidies to four NPOs for educational, social welfare, environmental protection, and disaster prevention activities
• Co-hosting the 19th Entrepreneurship Seminar for Kids to foster entrepreneurial spirit and understanding of business activities in children.

Climate Goals & Targets

Environmental Challenges

• Persisting impact of the COVID-19 pandemic on certain industries (especially food and accommodation)
• Global resource shortages, rising overseas interest rates, and a weak yen leading to higher prices for resources, electricity, raw materials, and food.
• Potential for further economic downturn in Oita prefecture due to rising prices.

Mitigation Strategies

• Implementation of a new management strengthening plan (April 2022 - March 2025) focusing on three pillars of business support: V Support Services, Management Improvement Support Fund, and Liquidity Stabilization Fund.
• Focus on solving customer management challenges to improve the bank's sustainability and create shared value.

Supply Chain Management

Climate-Related Risks & Opportunities