Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Capital Management
• Diversity, Equity, and Inclusion (DE&I)
• Sustainable Finance
• Regional Revitalization

Environmental Achievements

• Reduced CO2 emissions by 34% compared to fiscal 2013 (combining Scope 1 and 2)
• Introduced solar power generation facilities in Kawanoe Branch and other branches
• Introduced electric vehicles and portable power feeders to reduce CO2 emissions
• Concluded a business matching agreement with Carbon Free Consulting Corporation for environmental management consulting

Social Achievements

• Introduced the concept of “career fields” to enhance employee strengths and expertise
• Raised base and starting salaries in April 2023
• Increased female manager ratio to 18.6% (as of March 31, 2023)
• Reduced overtime work hours
• Improved employee engagement score to 70 (as of March 31, 2023)
• Established Iyogin Challenge & Smile Co., Ltd. to promote employment of persons with disabilities
• Concluded collaboration agreements with two national institutes of technology in Ehime Prefecture for industry-academia-government collaboration
• Supported business foundation and regional revitalization through crowdfunding

Governance Achievements

• Transitioned to a holding company structure in October 2022
• High ratio of independent directors (37.5% as of March 2023)
• Established Group Sustainability Committee
• Formulated Group Corporate Credo and Corporate Governance Guideline
• Implemented a comprehensive risk management structure

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical risks
• Rising energy and raw material prices
• Depreciation of the yen
• Pressure on corporate earnings and household budgets due to rising prices
• Aging population and declining birthrate
• Shortage of manpower
• Climate change and its impacts on business activities and customers
• Business succession issues

Mitigation Strategies

• Transitioned to a holding company structure to enhance group synergies and flexibility
• Implemented BPR strategies to increase productivity and free up manpower for customer interactions and planning work
• Developed new business creation strategies to address regional issues and improve sustainability
• Established Iyogin Digital Solutions Co., Ltd. to provide DX support for regional companies
• Established Iyogin Business Succession and Growth Support Fund to support business succession
• Implemented scenario analysis for transition and physical risks related to climate change
• Developed policies on investments and loans for specified sectors to mitigate environmental and social risks
• Strengthened risk management framework with focus on market, liquidity, credit, operational, and reputational risks
• Implemented a comprehensive compliance structure including a whistle-blowing system
• Improved customer experience value (CX) through various initiatives

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Strengthened regulations on carbon emissions
• Introduction of carbon tax

Opportunities

• Investments in renewable energy

Reporting Standards

Frameworks Used: TCFD

Certifications: Platinum Kurumin, Eruboshi (three stars)

Awards & Recognition

• One of the top 500 enterprises (White 500) in the “2023 Certified Health & Productivity Management Outstanding Organizations Recognition Program”

Environmental Metrics

ESG Focus Areas

• Sustainable development of local economies and industries
• Climate change and environmental burdens
• Population decline and aging population with low birthrate
• Improvement in human capital
• Pursuit of integrity

Environmental Achievements

• The Group’s CO2 emission reduction rate (Scope 1 and 2) (44.0)% (Compared to FY13)

Social Achievements

• Awarded first place in the world in the Culture and Tradition Category at the Green Destinations Story Awards ITB Berlin
• Increased the number of referrals to new customers within the Group
• Employee engagement score 72

Governance Achievements

• Transitioned to a holding company structure
• Established Iyogin Digital Solutions in April 2023
• High transparency information disclosure to ensure understanding of our corporate value

Climate Goals & Targets

Environmental Challenges

• Labor shortages, low birthrate, and aging society
• Personnel exchanges between Iyo Bank and other Group companies
• Redundant areas between Group companies and services
• Intensified competition and rapid changes in the external environment
• Shrinking local economies due to declining population and a decrease in the number of business offices
• Workforce shortages
• Aging trend among small and medium-sized enterprise owners and an increase in business suspensions and closures
• Climate change and environmental burdens

Mitigation Strategies

• Formulated new Fiscal 2024 Medium-Term Management Plan
• Personnel exchanges between Iyo Bank and other Group companies
• Relocating functions at Group companies
• Developing a system that will allow Group companies to focus more on their business
• Structural reforms focused on Sales × Human Resources
• Rebuilding our portfolios of both businesses and human resources
• Revising training and development systems, supporting career formation, strengthening career management, increasing communication within the organization, defining the skills necessary for each area, and introducing an internal skill certification system
• Supporting decarbonization of local communities and customers
• Support of personnel matching in response to customers’ human resource issues
• Support of regional revitalization centered around tourism industry
• Support of operational efficiency improvement and digitalization of local companies
• Building the next-generation core system
• Promoting and accomplishing the project as an excellent opportunity to develop human resources who are digital specialists
• Personnel exchanges between employees in charge of development in the Systems Development Division and headquarters divisions
• Review of branch locations, including reorganization of branches
• Developing new channels using digital technologies
• Improving and promoting AGENT app
• Developing and improving generative AI and data utilization system
• Improving the language level of employees who are involved in ship finance

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• an increase in our credit-related expense arising from a deterioration in customers’ business performances and damages on real-estate collateral with typhoons, floods, and other natural disasters
• risks of being unable to continue business due to damages on our head office, branches, and other holdings, and increases in costs arising from countermeasures and restoration

Transition Risks

• an increase in credit-related expense for sectors to be subject to impacts caused by responding to strengthened climate-related regulations, such as restrictions on carbon emissions, a hike in carbon tax, and other risks

Opportunities

• pursuing both the realization of sustainable global environment and business activities will lead to creation of new business opportunities

Reporting Standards

Frameworks Used: TCFD

Awards & Recognition

• Green Destinations Story Awards ITB Berlin