Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Development Goals (SDGs)
• Regional community development
• Environmental sustainability
• Human resource development
• Compliance

Environmental Achievements

• Promoting environmental management and working to ensure a sustainable society characterized by prevention of global warming and protection of biodiversity.

Social Achievements

• Launched the “New Business Support Loan (SDGs Plan)” to support businesses contributing to SDGs, offering financing up to ¥100 million with a maximum interest rate discount of 0.3%.
• Established the SDGs Prize under the Shigagin Nonohana Prize program to reward companies developing business models that foster the resolution of societal issues.

Governance Achievements

• Published the Shigagin SDGs Declaration, pledging to work for sustainable development.

Climate Goals & Targets

Environmental Challenges

• Declining birthrate and aging population
• Depopulation
• Biodiversity loss
• Climate change
• Efficient use of regional resources
• Protecting the water quality in Lake Biwa

Mitigation Strategies

• Building up a regional economy through new business models fostered by solving societal issues and promoting innovation.
• Supporting businesses that aim to solve societal issues.
• Promoting new approaches to work and diversity, creating a work environment that incentivizes and motivates all employees.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SDGs

Environmental Metrics

ESG Focus Areas

• Regional Economy Creation
• Global Environmental Sustainability
• Diverse Human Resource Development

Environmental Achievements

• Reduced CO2 emissions by 34% compared to 2013
• Achieved 100% carbon-neutral branches
• Increased renewable energy usage (solar power)
• Reduced paper usage by 33%
• Promoted eco-commuting

Social Achievements

• Launched SDGs business matching fair with 1519 attendees and 935 business deals
• Supported local businesses through various initiatives (e.g., Shiga 6th Industrialization Fund, cloud funding)
• Established Shigagin Welfare Foundation, providing cumulative grants of 367,130,000 yen
• Supported youth development through various programs (e.g., Shigagin Cup soccer tournament)
• Implemented initiatives for LGBT inclusion
• Provided support for empty house countermeasures
• Supported local cultural creation and development
• Participated in community activities (e.g., Yoshi harvesting, fish release)

Governance Achievements

• Established CSR Committee chaired by the President
• Implemented various compliance measures (e.g., compliance helpline, lawyer consultation system, stress checks)
• Obtained ISO 14001 certification
• Participated in TCFD consortium

Climate Goals & Targets

Environmental Challenges

• Climate change risks and environmental issues (e.g., ocean pollution)
• Regional economic challenges (e.g., declining population, aging society)
• Maintaining a sustainable balance between economic growth and environmental protection

Mitigation Strategies

• Developed environmental finance products and services
• Supported sustainable business models through various initiatives (e.g., Shiga SDGs x Innovation)
• Implemented energy-saving measures and resource recycling
• Promoted sustainable agriculture through GAP certification support
• Invested in ESG and SDGs-aligned bonds and projects

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green purchasing

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ISO 26000

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

The bank's initiatives align with various UN SDGs, particularly those related to sustainable development, poverty reduction, and community development.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Eco-First Enterprise

Environmental Metrics

ESG Focus Areas

• Declining birthrate, aging population, and depopulation
• Business succession
• Efficient use of local resources
• Decarbonization and renewable energy
• Work style reform
• Human resource development
• Digitalization of regional communities
• Environmental management
• Social impact of business activities
• Sustainable business model
• Human rights
• Work environment

Environmental Achievements

• Revised Environmental Policy for the first time in ten years, prioritizing global environmental protection and responding to the climate crisis and preserving biodiversity.
• Launched a loan plan to support the decarbonization efforts of local companies in cooperation with Shiga Prefecture

Social Achievements

• Established the Sustainable Strategy Office and Digital Promotion Office to promote sustainability and digitalization.
• Co-hosted the SDGs Business Succession and M&A Conference 2020.
• Promoting the Flexsus Project to transform core systems.
• Focus on SDGs consulting and sustainability-linked loans for SMEs.
• Developing IT business support that solves business partners’ management issues from a digital perspective in cooperation with FinTech companies.

Governance Achievements

• Instituted Sustainability Policy on October 1, 2020, outlining key principles for sustainable development.

Climate Goals & Targets

Environmental Challenges

• Declining birthrate, aging population, and depopulation
• Business succession challenges
• Need for efficient use of local resources
• Accelerated need for digitalization in regional communities due to COVID-19

Mitigation Strategies

• Established the Sustainable Strategy Office and Digital Promotion Office to address these challenges.
• Promoting digitalization of regional communities through various initiatives.
• Supporting the creation of problem-solving businesses.
• Providing SDGs consulting and sustainability-linked loans.
• Developing IT business support in cooperation with FinTech companies.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Regional Economic Development
• Biodiversity
• Workforce Diversity & Inclusion

Environmental Achievements

• Reduced greenhouse gas emissions by 42.08% from fiscal year 2013 levels.
• Introduced net CO2-free electricity at the Head Office, reducing emissions by approximately 2,000 tons of CO2 per year.
• Launched "Carbon Neutral Loan, Mirai-Yoshi" for decarbonization investments.

Social Achievements

• Launched SDG consulting service for corporate customers.
• Offered Sustainability-Linked Loans (SLL) and Positive Impact Finance (PIF) loans.
• Increased the percentage of male employees taking spouse maternity leave to 66.67%.
• Reorganized the Committee for Advancing Women’s Success into the Diversity Promotion Committee.
• Established the Shigagin Nonohana Prize to support new businesses.

Governance Achievements

• Established the Nomination and Compensation Committee to strengthen board independence and transparency.
• Implemented a restricted stock-based compensation system for directors.

Climate Goals & Targets

Environmental Challenges

• Regional economic downturn due to depopulation.
• Prolonged ultra-low interest rate environment.
• Climate change (transition and physical risks).
• Accelerating digitalization.
• Intensifying competition for human resources.
• Business succession challenges.

Mitigation Strategies

• Developed ESG finance products (SLL, PIF, green loans).
• Provided SDGs consulting and business succession support.
• Implemented an ESG assessment system for customers.
• Launched initiatives to promote digitalization and improve branch efficiency.
• Implemented diversity and inclusion initiatives.
• Strengthened risk management framework (RAF).

Supply Chain Management

Responsible Procurement

• Green procurement

Climate-Related Risks & Opportunities

Physical Risks

• Escalation of natural disasters (wind and flood damage)

Transition Risks

• Tightening regulations to meet the Paris Agreement.
• Changes in market orientation towards low-carbon.

Opportunities

• Increase in renewable energy-related businesses
• Providing solutions for environmental regulations

Reporting Standards

Frameworks Used: TCFD, SDGs, Principles for Responsible Banking (PRB)

Certifications: ISO 14001

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)
• Goal 17 (Partnerships for the Goals)

Initiatives align with SDGs through ESG finance, community development, and workforce development.

Sustainable Products & Innovation

• Sustainability-Linked Loans (SLL)
• Positive Impact Finance (PIF) loans
• Green loans
• Carbon Neutral Loan, Mirai-Yoshi

Awards & Recognition

• Selected as an example of "Distinctive Efforts by Financial Institutions contributing to Regional Revitalization for Fiscal Year 2021"
• Certified as an "Eco-First Enterprise" by the Ministry of the Environment
• Bronze Prize in the 2022 ESG Finance Awards Japan

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Regional Community Development
• Biodiversity Preservation
• Human Capital
• Sustainable Finance

Environmental Achievements

• Reduced greenhouse gas emissions by 66.80% from fiscal year 2013 levels.
• Introduced CO2-free electricity at the Head Office.
• Implemented the “Ikimonogatari” (Tales of Life) environmental volunteer activities.
• Helped Inazuma Rock Fes 2022 become a carbon-offset event.

Social Achievements

• Launched “Mirai-Yoshi Support,” a CO2 emissions management service.
• Launched an online housing loan service.
• Offered SDGs consulting to 165 clients.
• Arranged 71 sustainable finance transactions for ¥52.3 billion.
• Provided financial and economic education to 15,771 participants.
• Launched a human resources placement service.

Governance Achievements

• Listed stocks on the Prime Market of the Tokyo Stock Exchange.
• Established the Sustainability Policy.
• Established the Sustainability Committee.
• Announced support for TCFD Recommendations.
• Implemented the ESG assessment system.
• Established the “Investment and financing policies for realizing a sustainable society” and “Policies for biodiversity preservation”.

Climate Goals & Targets

Environmental Challenges

• Regional economic downturn due to depopulation.
• Ultra-low interest rate environment in Japan and rising interest rates outside Japan.
• Rising energy and commodity prices.
• Tightening requirements for supply chains to address climate change.
• Further depopulation, low birthrate, and aging population.
• Accelerating rural flight and widening regional disparities.
• Rapid social change toward achieving a decarbonized society.
• Tightening regulations to meet the Paris Agreement and address climate change.
• Progress in digital innovation.
• Intensifying competition for acquiring young and specialized human resources.

Mitigation Strategies

• Developing products and services for each sector by strengthening collaboration with stakeholders and leveraging digital technology.
• Established the Digital Promotion Office to provide IT business support.
• Launched “Mirai-Yoshi Support” and “Shigagin Super Housing Loan Mirai-Yoshi” to promote decarbonization.
• Consolidating branches and enhancing non-face-to-face channels.
• Implementing “Mindset-Work reforms” to switch from a bank-centric to customer-centric approach.
• Strengthening risk management through the Risk Appetite Framework.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Escalation of natural disasters

Transition Risks

• Tightening regulations to meet the Paris Agreement and address climate change

Opportunities

• Expansion of opportunities for environment-related businesses

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, TCFD Recommendations

Certifications: ISO 14001

Sustainable Products & Innovation

• Mirai-Yoshi Support
• Shigagin Super Housing Loan Mirai-Yoshi
• Shigagin Sustainable Assessment Loan

Awards & Recognition

• ESG Finance Awards Japan (four consecutive years)

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Regional Revitalization
• Human Capital Development
• Biodiversity Preservation
• Sustainable Finance

Environmental Achievements

• Reduced CO2 emissions by 44.3% from fiscal year 2018 (Scope 1+2)
• Established Shigagin Energy Co., Ltd., a wholly-owned subsidiary for energy business and GX initiatives.
• Launched "Mirai-Yoshi Support," a CO2 emissions calculation and management service.
• Introduced "Shigagin Super Housing Loan, Mirai-Yoshi," a loan product with near-zero interest for installing solar panels, batteries, and fuel cells.

Social Achievements

• Launched "Shigagin Entrepreneurship and Business Management School" and "Shigagin Nonohana Prize for Innovation" to support new businesses.
• Established a specialized business succession consulting team.
• Launched "Alumni Network" to engage with retirees.
• Established "Future Lounge" as a community space for employees.
• Implemented various SDGs commemorative projects.

Governance Achievements

• Established a new Purpose and Principles.
• Formulated the 8th Medium-Term Business Plan.
• Enhanced information disclosure, including investor relations.
• Implemented performance-linked executive compensation.

Climate Goals & Targets

Environmental Challenges

• Population decline in Shiga Prefecture.
• Climate change and its impact on the regional economy.
• Lack of business successors.
• Need to improve ROE and OHR.
• Maintaining a balance between risk-taking and soundness.

Mitigation Strategies

• Formulated the 8th Medium-Term Business Plan with three basic strategies: Impact Design, Base for Growth, and Human First.
• Implemented strategic RAF (Risk Appetite Framework) for risk-taking.
• Established Shigagin Energy Co., Ltd. and Shigagin Capital Partners Co., Ltd. (planned) for new business development.
• Developed human resources with advanced financial knowledge.
• Enhanced information disclosure and investor relations.

Supply Chain Management

Responsible Procurement

• Supporting suppliers in acquiring SBT (Science Based Targets).

Climate-Related Risks & Opportunities

Physical Risks

• Increased natural disasters (floods)

Transition Risks

• Tightening of regulations
• Market shifts towards low-carbon

Opportunities

• Development of low-carbon products and services
• Increased business opportunities from higher social reputation

Reporting Standards

Frameworks Used: TCFD, TNFD, Principles for Responsible Banking (PRB), SDGs

Certifications: ISO 14001

Third-party Assurance: Third-party assurance organization (for greenhouse gas emissions)

UN Sustainable Development Goals

• Various SDGs mentioned in the report

Initiatives contribute to SDGs through regional revitalization, environmental conservation, and human capital development.

Sustainable Products & Innovation

• Mirai-Yoshi Support
• Shigagin Super Housing Loan, Mirai-Yoshi
• SDGs private placement bonds
• Sustainability Linked Loans

Awards & Recognition

• ESG Finance Awards Japan (Silver Prize, 5 consecutive years)
• Other awards mentioned in the report