Climate Change Data

The San-in Godo Bank, Ltd.

Climate Impact & Sustainability Data (2021-04 to 2022-03, FY2020 (April 1, 2020 - March 31, 2021))

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:8106 t-CO2e (FY2021)

ESG Focus Areas

  • Climate Change
  • Regional Revitalization
  • Human Capital Development
  • Corporate Governance
  • Social Contribution
  • Diversity & Inclusion

Environmental Achievements

  • Established Gogin Energy Co., Ltd., a wholly-owned renewable energy generation company.
  • Set medium- and long-term greenhouse gas emission reduction targets (net-zero for Scope 1 & 2 by 2030, net-zero for Scope 1, 2 & 3 by 2050).
  • Achieved a 36.3% reduction in greenhouse gas emissions (non-consolidated) in FY2021 compared to FY2013.
  • Constructed ZEB (Net Zero Energy Building) branches.
  • Implemented green purchasing initiatives.

Social Achievements

  • Revised personnel and career development systems.
  • Promoted first female executive officer.
  • Operates Gogin Challenged, employment offices for people with disabilities.
  • Operates Shofukan, a private school training future regional leaders.
  • Implemented various community investment initiatives (e.g., forest conservation, sports sponsorship).

Governance Achievements

  • Established a Sustainability Committee.
  • Strengthened risk management system.
  • Improved Board of Directors composition and effectiveness.
  • Implemented a remuneration system for directors and executive officers that incentivizes corporate value improvement.
  • Established internal and external whistleblower systems.

Climate Goals & Targets

Long-term Goals:
  • Net-zero greenhouse gas emissions (Scope 1, 2, and 3) by FY2050.
  • Cumulative amount of sustainable finance to reach 1.5 trillion yen by FY2030 (including 500 billion yen in the environmental sector).
Medium-term Goals:
  • Net-zero greenhouse gas emissions (Scope 1 and 2) by FY2030.
  • Increase ratio of female managers to 25% or more by the end of FY2023.
Short-term Goals:
  • 50% reduction in greenhouse gas emissions from FY2013 levels by FY2023 (Scope 1 and 2).

Environmental Challenges

  • Aging and declining population in the San-in region.
  • Weak economic base of the San-in region.
  • Climate change risks (physical and transition risks).
  • Securing and training future human resources.
  • Business succession issues in SMEs.
Mitigation Strategies
  • Relationship banking approach focusing on local issue solving.
  • Innovation and cost reduction to improve productivity.
  • Climate change risk scenario analysis and development of mitigation strategies.
  • Investment in human resource development and reskilling.
  • Support for business succession and M&A through consulting and investment funds.

Supply Chain Management

Responsible Procurement
  • Policy on Purchasing Activities focusing on environmental and social aspects.

Climate-Related Risks & Opportunities

Physical Risks
  • Increased damage due to extreme weather events.
  • Risk of damage to collateral property due to flooding.
Transition Risks
  • Increased costs due to carbon tax.
  • Regulatory changes impacting existing products and services.
  • Shift to lower-emission technologies.
Opportunities
  • Development of energy-efficient products and services.
  • Growth in renewable energy sector.

Reporting Standards

Frameworks Used: GRI Standards, TCFD Recommendations

UN Sustainable Development Goals

  • All 17 SDGs

Initiatives contribute to various SDGs through core business and social contribution activities.

Sustainable Products & Innovation

  • Sustainability-Linked Loans
  • Green Loans
  • Gogin Duo Card

Awards & Recognition

  • Special Award at Principles for Financial Action for the 21st Century
  • First Regional SDGs Financial Award
  • Excellence Award at Forest x Decarbonization Challenge 2022
  • Certified Health & Productivity Management Outstanding Organization (White 500)

Reporting Period: FY2020 (April 1, 2020 - March 31, 2021)

Environmental Metrics

Total Carbon Emissions:8,686 tCO2e/year
Scope 1 Emissions:1,457 tCO2e/year
Scope 2 Emissions:7,229 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:148,669 GJ/year
Water Consumption:36,000 m3/year
Waste Generated:29 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environment
  • Society
  • Governance

Environmental Achievements

  • 28.9% reduction in CO2 emissions (FY2020 compared with FY2013)
  • Partial electricity coverage at some branches through solar power generation

Social Achievements

  • Employment rate of people with disabilities increased from 2.48% to 2.65%
  • Percentage of female managers increased from 22.5% to 22.6% (March 2020 - March 2021)
  • Launched Gogin business succession funds with Gogin Capital in January 2021
  • Started “Gogin SDGs management support service”
  • Introduced online inheritance procedures

Governance Achievements

  • Established the Sustainability Committee chaired by the President in May 2021
  • Established the Sustainability Promotion Office in October 2021
  • Endorsed TCFD recommendations in April 2021
  • Change in directors composition, June 2021: Six independent outside directors (50%), Two female directors (16.6%)

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality
Medium-term Goals:
  • Cumulative execution amount of sustainable finance from FY2021 to FY2030: 1.5 trillion yen (of which 500 billion yen is in the environmental field)
  • 25% or more of female managers by the end of FY2023
Short-term Goals:
  • 50% reduction in CO2 emissions in FY2023 vs. FY2013

Environmental Challenges

  • Shrinking population, declining birthrate, aging population in the San-in region
  • Business succession problems caused by labor shortages
  • Problems related to maintenance and strengthening of social infrastructure
  • Environmental problems and response to climate change
  • COVID-19 pandemic impact on regional economy and businesses
Mitigation Strategies
  • Relationship banking as a universal business model
  • Initiatives toward regional revitalization, energizing the community
  • Expanding business support, including digitalization and securing human resources
  • Supporting employee well-being and autonomous growth
  • Financing support and business support for clients devastated by the COVID-19 pandemic
  • Establishment of the COVID-19 Business Support Team
  • Formulating future-oriented management reform measures

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Adoption of energy-saving and eco-friendly products

Climate-Related Risks & Opportunities

Physical Risks
  • Increased frequency of natural disasters and abnormal weather
Transition Risks
  • Regulatory changes, market shifts related to carbon-free society
Opportunities
  • Green financing for renewable energy projects
  • Transition financing to promote the shift toward a zero- or low-carbon society

Reporting Standards

Frameworks Used: GRI Standards, TCFD Recommendations

Certifications: Health & Productivity Management Outstanding Organization

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • All 17 SDGs

The Bank endorses the spirit of the United Nations’ Sustainable Development Goals (SDGs), and aims to realize a sustainable regional society through initiatives to solve regional issues.

Sustainable Products & Innovation

  • Gogin sustainability linked loan
  • Gogin green loan/social loan
  • Preferential interest rates for housing loans using lumber produced in Shimane and Tottori Prefectures
  • Preferential interest rates for purchasing solar power generation PV systems and batteries

Awards & Recognition

  • SOMPO Sustainability Index component