Climate Change Data

The Chiba Bank, Ltd.

Climate Impact & Sustainability Data (2020-04 to 2021-03, 2021-04 to 2022-03)

Reporting Period: 2020-04 to 2021-03

Environmental Metrics

Total Carbon Emissions:19,016 tCO2e/year
Scope 1 Emissions:2,425 tCO2e/year
Scope 2 Emissions:16,591 tCO2e/year
Carbon Intensity:72.7 kg-CO2/m2 in FY2020

ESG Focus Areas

  • Regional economy and community
  • Aging population
  • Financial services
  • Diversity
  • Environmental protection

Environmental Achievements

  • Completed new head office building with an S-rank equivalent CASBEE rating
  • Proactively introduced environment-friendly vehicles (hydrogen, electric, hybrid)
  • Reduced CO2 emissions by 25.1% compared to FY2013 (per unit area)

Social Achievements

  • Launched Chibagin Asset Management Trust for elderly care
  • Established Issue Resolution Consortium in 100-Year Life with Chiba University
  • Concluded agreement with Chiba University Hospital on testamentary bequests
  • Supported the building of Takataki Lake Glamping Resort
  • Supported sustainable agriculture and harmful wildlife control
  • Donated to Chiba Prefecture and Chiba University Hospital to combat COVID-19
  • Awarded grants from the Chibagin Heartful Welfare Fund

Governance Achievements

  • 33.3% ratio of outside directors (3 out of 9)
  • 33.3% ratio of female directors (3 out of 9)
  • Established Chiba Bank Group Human Rights Policy
  • Established Chiba Bank Group Environmental Policy

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050 (aligned with Japanese government's target)
Medium-term Goals:
  • Reduce CO2 emissions by 26% compared to FY2013 (considering resetting the goal)
  • Triple the number of high-margin digital customers to 1.50 million
  • Expand digital customers’ contribution to 50% of overall profits
Short-term Goals:
  • Provide the best apps and portals to all customers
  • Realize a centralized system for accessing information
  • Eliminate the use of paper and stamps completely within the Bank by June 2022

Environmental Challenges

  • Prolonged disruption caused by the COVID-19 pandemic
  • Declining birthrate and aging population
  • Continued low interest rate policy
  • Climate change risks (physical and transition risks)
Mitigation Strategies
  • Provided approximately 16,000 loans related to COVID-19, amounting to ¥700.0 billion
  • Developed various customer-centric initiatives based on enhancing customer experience
  • Strengthened digital channels (Chiba Bank app, Chibagin Business Portal)
  • Implemented various infection countermeasures in branches
  • Qualitative and quantitative analyses of climate change risks
  • Policies on Loans to Specific Sectors addressing climate change risks
  • Setting of sustainable finance targets (¥2 trillion by 2030)

Supply Chain Management

Responsible Procurement
  • Requesting customers and suppliers to respect human rights

Climate-Related Risks & Opportunities

Physical Risks
  • Storm and flood damage to real estate collateral
  • Damage to business locations
  • Damage to branch locations
  • Sea level rises
Transition Risks
  • Revision to climate change regulations and taxes
  • Decarbonization technology failures and market changes
Opportunities
  • Provision of renewable energy-related loans
  • Reduction of business costs through resource and energy conservation
  • Increased demand for funds driven by infrastructure investment

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

Various initiatives contribute to these goals as detailed in the Chiba Bank Group Declaration on SDGs.

Sustainable Products & Innovation

  • Chiba Bank SDGs Friends Loan

Awards & Recognition

  • Refinitiv Lipper Fund Awards Japan 2021
  • 2021 J-Win Diversity Award (Grand Prize in the Advanced Division)
  • Nadeshiko Brand (4th consecutive year)
  • Platinum Kurumin certified
  • Eruboshi (stage three) designation

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:18,577 tCO2e/year (Scope 1 and 2)
Scope 1 Emissions:2,776 tCO2e/year
Scope 2 Emissions:15,801 tCO2e/year
Scope 3 Emissions:6,315,148 tCO2e/year (estimated)

ESG Focus Areas

  • Regional Economy and Community
  • Aging Population
  • Financial Services
  • Diversity
  • Environmental Protection

Environmental Achievements

  • FY2030 Carbon Neutrality Declaration to achieve virtual zero CO2 emissions (Scope 1 and 2) by FY2030.
  • Achieved A- score in CDP's 2021 climate change survey.

Social Achievements

  • Obtained “Platinum Eruboshi” certification for promoting women's participation and advancement in the workplace.
  • Established the TSUBASA Diversity & Inclusion Declaration.
  • Provided Chibagin Training Center as a temporary medical facility.
  • Donated ¥10 million to Chiba University Hospital for an ECMO car.
  • Supported developing countries through the Table For Two (TFT) program.
  • Provided food to people in need through Foodbank Chiba.

Governance Achievements

  • Introduced a restricted stock remuneration system for directors.
  • Introduced the Group Chief Officer System.
  • Formulated the “Policy on Corporate Governance”.
  • Increased the ratio of outside directors on the Board of Directors to one-third.
  • Established the Appointment, Remuneration and Corporate Advisory Committee.

Climate Goals & Targets

Long-term Goals:
  • Realize sustainable regional communities.
Medium-term Goals:
  • Achieve virtual zero direct CO2 emissions (Scope 1 and 2) by FY2030.
  • Achieve ¥2 trillion of sustainable finance (¥1 trillion environmental finance) by FY2030.
Short-term Goals:
  • Improve Chiba Bank app and Chibagin Business Portal.

Environmental Challenges

  • COVID-19 pandemic impact on business environment.
  • Acceleration of digitalization and carbonization.
  • Uncertainty in the banking sector due to inflationary pressures, the Ukraine situation, supply constraints, and changes in interest rate policies.
  • Physical risks from large-scale storm and flood damage.
  • Transition risks from regulatory changes, decarbonization technology failures, and market shifts.
  • Reputational risk from excessive investments and loans to fossil fuel-related businesses.
Mitigation Strategies
  • Active efforts to meet financing needs of corporate and individual customers.
  • Acceleration of DX strategies.
  • Strengthening of sustainable finance initiatives.
  • Implementation of top risk management.
  • Enhancement of scenario analysis.
  • Announcement of Policies on Loans to Specific Sectors, stricter credit system for carbon-related sectors.
  • Providing decarbonization support to customers.

Supply Chain Management

Supplier Audits: Monitoring once every six months to confirm that suppliers have no human rights violations.

Responsible Procurement
  • Chiba Bank Group Human Rights Policy

Climate-Related Risks & Opportunities

Physical Risks
  • Large-scale storm and flood damage to real estate collateral and customer operations.
  • Sea level rises impacting customer operations.
Transition Risks
  • Regulatory changes and taxes affecting customer businesses.
  • Decarbonization technology failures and market changes.
Opportunities
  • Increases in sustainable finance.
  • Increases in decarbonization support services.
  • Increased demand for funds for disaster countermeasures and business continuation.
  • Reduction of operation costs through resource and energy savings.

Reporting Standards

Frameworks Used: International Integrated Reporting Framework

Certifications: Platinum Eruboshi

UN Sustainable Development Goals

  • Goal 7
  • Goal 13

Initiatives contribute to these goals through environmental protection, sustainable finance, and community development.

Sustainable Products & Innovation

  • Chiba Bank Sustainability Linked Loan
  • Chiba Bank Green Loan
  • Chiba Bank SDGs Leaders Loan
  • Chiba Bank SDGs Friends Loan

Awards & Recognition

  • Platinum Eruboshi