Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by 29.9% from FY2013 to FY2020 (6,225 t-CO2 in FY2020)

Social Achievements

• Awarded highest 3-star “Eruboshi” certification and “Platinum Kurumin” certification by the Ministry of Health, Labour and Welfare.
• Ratio of women in posts equivalent to or higher than branch head: 10.0% (as of end of March 2021), exceeding the average for 62 regional banks (7.5%).
• Extended childcare leave until the child is 3 years old and shorter working hours to the beginning of the 4th year of elementary school.

Governance Achievements

• 60% of outside directors (as of Sep. 2021).
• A female outside director joined in June 2020.

Climate Goals & Targets

Environmental Challenges

• Climate change risks and opportunities

Mitigation Strategies

• Scenario analysis on risks and opportunities of climate change
• Considering setting indicators and targets in both risks and opportunities of climate change

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Certifications: 3-star “Eruboshi”, “Platinum Kurumin”

Awards & Recognition

• 3-star “Eruboshi”, “Platinum Kurumin”

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance
• SDGs

Environmental Achievements

• Introduced CO2-free electricity for head office and headquarters, decarbonizing about 20% of total electricity use.
• Reduced CO2 emissions by 29.9% from FY2013 to FY2020.

Social Achievements

• Awarded highest 3-star “Eruboshi” certification and “Platinum Kurumin” certification.
• Ratio of women in posts equivalent to or higher than branch head: 10.0% (exceeds average for 62 regional banks).

Governance Achievements

• Expressed support for TCFD recommendations in June 2021.
• 60% of outside directors (as of Sep 2021).

Climate Goals & Targets

Environmental Challenges

• Many redemptions of relatively high-yield JPY-denominated bonds.

Mitigation Strategies

• Increase the volume of loans to local companies and housing loans.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Certifications: 3-star “Eruboshi”, “Platinum Kurumin”

Awards & Recognition

• 3-star “Eruboshi”, “Platinum Kurumin”

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Finance
• Decarbonization

Environmental Achievements

• Reduced GHG emissions by 51.1% from FY2013 to FY2022 (Scopes 1 & 2), reaching 5,027 t-CO2 in FY2022. Achieved this mainly through the introduction of CO2-free electricity and LED lighting.
• Measuring Scope 3 emissions (Category 6 and 7), totaling 2212 t-CO2e.

Social Achievements

• Launched Hyakugo sustainable loans (green and sustainability-linked loan types), with third-party opinion from R&I confirming alignment with international principles.
• Partnered with Tsu City and Ise City to promote decarbonized management.
• Offered Decarbonized Management Support Guarantee program in cooperation with the Mie Prefecture Credit Guarantee Association.

Governance Achievements

• Endorsed the TCFD Recommendations.
• Established the “Hyakugo Bank Group Environmental Policy” in April 2022, committing to carbon neutrality.
• Public Relations SDGs Promotion Office plays a central role in ESG-related activities.
• SDGs Promotion Committee meets quarterly and reports to the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Physical risks: Major flooding causing damage to customer assets, supply chain disruptions, and damage to collateral property.
• Transition risks: Delays in responding to policy changes, technological innovations, and market changes related to decarbonization, leading to stranded assets and brand damage.

Mitigation Strategies

• Scenario analysis using IPCC RCP 2.6 and RCP 8.5 scenarios to understand and mitigate risks.
• Analysis of impact on credit costs for commercial credit recipients and housing loan borrowers.
• Assessment of carbon-related assets based on TCFD recommendations.
• Integrated risk management framework to identify and mitigate physical and transition risks.
• Capital adequacy assessment considering estimated physical risk and additional credit cost of transition risk.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Major flooding

Transition Risks

• Policy changes
• Technological innovations
• Market changes

Opportunities

• Increase in consulting and services related to decarbonized management support
• Increase in sustainable finance

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• Hyakugo sustainable loans
• Hyakugo SDGs private placement bonds

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Finance

Environmental Achievements

• Reduced GHG emissions by 50.9% from FY2013 to FY2023 (Scopes 1 & 2)
• Approximately 40% of Hyakugo Bank Group’s power consumption now comes from renewable energy sources.
• Executed ¥513.2 billion in sustainable finance in FY2023, with ¥121.4 billion allocated to environmental fields.

Social Achievements

• Partnership agreements with three local governments to promote decarbonized management.
• Support for SMEs in acquiring SBT certification.
• Dissemination of information about Ise City Office Decarbonization Support Subsidy.

Governance Achievements

• Established a Sustainable Investment and Loan Policy.
• Regular meetings of the SDGs Promotion Committee to discuss climate change progress and issues.
• Received a “B” grade in the 2023 Climate Change Survey by CDP.

Climate Goals & Targets

Environmental Challenges

• Physical risks: Damage to collateral property due to major floods, deterioration in business performance of commercial credit recipients.
• Transition risks: Deterioration in performance of credit clients due to sales fluctuations and increased costs associated with the transition to a decarbonized society.

Mitigation Strategies

• Scenario analysis to assess resilience to climate change risk.
• Integrated risk management framework to identify and mitigate physical and transition risks.
• Capital adequacy assessment considering estimated physical risk and additional credit cost of transition risk.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Major flooding causing damage to customer assets and disruption of supply chains

Transition Risks

• Policy changes, technological innovations, and market changes related to decarbonization

Opportunities

• Increase in consulting and services related to decarbonization management support
• Increase in sustainable finance initiatives

Reporting Standards

Frameworks Used: TCFD

Awards & Recognition

• B grade in the 2023 Climate Change Survey by CDP

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• 200,000 rolls of recycled toilet paper produced from 32 tons of waste paper, contributing to 647 fewer trees being felled and a reduction in CO2 emissions of approximately 48 tons per year.
• Participation in the Company Forest program since 2006, contributing to forest conservation activities.

Social Achievements

• Held a financial literacy course for 695 high school students.
• Provided consulting services to 55 companies to support their SDGs initiatives, including the preparation of SDGs declarations.

Governance Achievements

• Established Environmental Policy, Human Rights Policy, and Sustainable Investment and Loan Policy.
• Strengthened responses to climate change based on the TCFD recommendations.

Climate Goals & Targets

Environmental Challenges

• Climate change risks
• Regional economic challenges
• Declining birthrate and aging population

Mitigation Strategies

• Supporting businesses leading to environmental preservation and a reduction in environmental burdens.
• Offering financial services meeting various challenges and issues of customers, and contributing to creating regional economy.
• Actively engaging in education for children who will become responsible for the next generation.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• Seaweed-stock Soup Base

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions per square meter of floor area by 2.97% in FY2020 from FY2019. Initiatives include natural lighting, ventilation, and LED lighting.
• Engaged in forestation activities in five areas in Mie Prefecture through "Hyakugo Forest" initiative.

Social Achievements

• Increased number of females in posts equivalent to or higher than section chief to 175 (15.9%) in FY2020.
• Increased number of persons with disabilities employed to 94, exceeding the statutory employment rate.
• Supported business succession through Hyakugo Mirai Investment Co., Ltd. and "AIDMA No. 1" fund.
• Held events like "Mums’ and Dads’ meeting" and "Cooking school for dads" to promote work-life balance.

Governance Achievements

• Strengthened corporate governance with selective and diversified outside directors and corporate auditors. Ratio of outside directors increased to 40%.

Climate Goals & Targets

Environmental Challenges

• Many redemptions of relatively high-yield JPY-denominated bonds in FY2020.

Mitigation Strategies

• Increased volume of loans to local companies and housing loans to offset the impact of JPY-denominated bond redemption.

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

The Hyakugo Bank Group will contribute to the achievement of a sustainable society by setting the SDGs as important indicators for both the resolution of regional social challenges and achievement of economic development, and linking these SDGs to the Group’s corporate activities.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed