Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• SDGs
• ESG Management

Environmental Achievements

• Reduce emissions by 50% by fiscal 2030 versus the fiscal 2013 level (Scope 1 and Scope 2 emissions). FY2020 result: 8,841 t (-35.9%)
• Built the Higashinagaoka Branch as a zero-CO2 emissions branch.

Social Achievements

• Achieved its initial target of 20% for the percentage of female managers.
• Launched the “I Love Kyoto Campaign” (since 1982) and “I Love Shiga Campaign” (since 2013).
• COVID-19 Pandemic Support Team provided support beyond funding to cover solutions to a wide range of issues, such as sales and customer outreach, business succession, new business development, and digitalization support. Addressed around 6,300 management issues through various solutions.

Governance Achievements

• Endorsement of the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations.
• Established the Sustainability Management Policy (March 2022) and revised the Environmental Policy.
• Established a new shareholder return policy of achieving a total return ratio of 50%.

Climate Goals & Targets

Environmental Challenges

• Negative interest rate policy causing yields to gradually contract and heightened cost burden for upfront investments.
• Uncertainty and disruptions caused by the COVID-19 pandemic and the Russia-Ukraine conflict.
• Rising geopolitical risk and increasing uncertainty in economic conditions.

Mitigation Strategies

• Improving value-added services and improving efficiency (strengthening consulting services, promoting digitalization, shifting the workforce from administrative work to sales, making branch operations more efficient, and developing specialists).
• Implementing sustainable financing of ¥1 trillion by fiscal 2030.
• Reducing securities held for strategic equity by ¥16.0 billion (10% of book value) over around three years.

Supply Chain Management

Responsible Procurement

• Collaboration with SHIMADZU CORPORATION to support SDGs and decarbonization measures for its suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (heavy rains, etc.)

Transition Risks

• Changes in laws and stricter regulations
• Changes in the supply-and-demand balance
• Technology transformation

Opportunities

• Increased consulting opportunities
• Increased financing opportunities

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Decarbonized Society
• SDGs
• ESG

Environmental Achievements

• Reduce CO2 emissions from the Group’s business activities (Scope 1 and 2) by 50% from the FY2013 level by FY2030
• Execute ¥1 trillion in sustainable finance by FY2030

Social Achievements

• Established an integrated consulting system that includes understanding at the entry point through to implementation and evaluation, via the Kyogin SDGs Declaration Support, Kyogin Sustainability Management Support and Kyogin SDGs Execution Support.
• Increased the locations with the Inheritance and Asset Succession Consulting Plaza Kyoto-Chuo (Shimogyo-ku, Kyoto, April 2022) and Inheritance and Asset Succession Consulting Plaza Kyoto-Minami (Kyotanabe City, Kyoto Prefecture, April 2023).

Governance Achievements

• Strengthened and enhanced governance by practicing business operations in accordance with our Basic Policy on Customer-First Operations and by strengthening our risk management framework, including against cyber and systemic risks.
• Transition to a holding company structure in October 2023

Climate Goals & Targets

Environmental Challenges

• Rising raw material prices and responding to labor shortages for SMEs
• Concerns about a future slowdown in overseas economies
• Physical risks (natural disasters) and transition risks (legal system changes, strengthened regulations, changes in the supply-demand balance, technological conversion) from climate change

Mitigation Strategies

• Provide business customers with financing support and consultation on management issues
• Establish a system to manage climate change-related risks within the framework of integrated risk management by utilizing scenario analysis
• Reduce investments and loans for coal-fired power generation projects and proactively invest and lend to contribute to the reduction of climate change risks

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters due to torrential rain, etc.

Transition Risks

• Legal system changes and strengthened regulations
• Changes in the supply-demand balance
• Technological conversion

Opportunities

• Increased consulting opportunities
• Increased financing opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC), Guidance for Collaborative Value Creation (METI), TCFD