Climate Change Data

The 77 Bank, Ltd.

Climate Impact & Sustainability Data (2022, 2024)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:10,331 tCO2e/year (FY2022)
Scope 1 Emissions:1,483 tCO2e/year (FY2022)
Scope 2 Emissions:8,848 tCO2e/year (FY2022)

ESG Focus Areas

  • Revitalization of the Regional Economy
  • Responding to Global Warming and Climate Change
  • Encouraging and Supporting the Activities of Our Employees
  • Advancing Corporate Governance

Environmental Achievements

  • Reduced CO2 emissions by 38.5% compared with FY2014
  • Switched lighting to LED at all branches and cash service corners
  • Installed solar power generation systems at new branches

Social Achievements

  • Launched “77 SDGs Support Services” and “77 SDGs Support Loans”,
  • Held various seminars and other events related to the SDGs
  • Increased the proportion of women in management positions to 14.2%
  • Implemented various initiatives to ‘foster an ambitious spirit’
  • Increased the number of ‘specialist personnel’ that serve a purpose for customers and local communities

Governance Achievements

  • Transitioned to a company with an audit & supervisory committee in June 2017
  • Increased the number of Outside Directors and female Directors
  • Established the “Sustainability Promotion Office” in December 2021
  • Established the “Sustainability Promotion and Management Policy” in January 2022
  • Established the “Sustainability Committee” in July 2022

Climate Goals & Targets

Long-term Goals:
  • Become a leading company that works to achieve prosperity in the local community by FY2031
Medium-term Goals:
  • Increase the proportion of women in management positions to 30% or more by FY2031
  • Reduce CO2 emissions across the 77 Bank Group by 46% by FY2031 compared with FY2014
  • Achieve a dividend payout ratio to net income attributable to owners of the parent to 30% by FY2024
Short-term Goals:
  • Increase the proportion of women in management positions to 18% or more by FY2026
  • Reduce the average number of hours worked on days off to less than 10 hours per person per month by FY2026
  • Maintain an annual rate of taking paid time off of 70% by FY2026
  • Establish 10 projects in new businesses or sectors by FY2024

Environmental Challenges

  • Digital transformation
  • Initiatives for new businesses and sectors
  • Sustainability efforts, including climate change and carbon neutrality
  • Corporate culture reform
Mitigation Strategies
  • Implementing various initiatives related to the digital field, including cybersecurity and streamlining administrative processing
  • Aiming to establish 10 projects in new businesses or sectors by FY2024
  • Announced support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in July 2021
  • Holding a “business contest” and an “essay contest” to solicit new business ideas
  • Holding individual briefings at all branches to promote understanding of “Vision 2030”

Climate-Related Risks & Opportunities

Physical Risks
  • Earthquake and tsunami damage
  • Storm and flood damage
Transition Risks
  • Increased credit risk related to borrowers affected by the transition to a low-carbon society
Opportunities
  • Providing various related services and products and developing products to support our clients’ transition to decarbonization and initiatives for the SDGs

Reporting Standards

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

Certifications: Health and Productivity Management Organization 2022, Platinum Kurumin, Eruboshi (Grade 3), Gold Certified Company

UN Sustainable Development Goals

  • Goal 7
  • Goal 13

The 77 Bank Group aims to contribute to the future of the region and the realization of a sustainable society by working toward the achievement of the Sustainable Development Goals (SDGs) on a Group-wide basis.

Sustainable Products & Innovation

  • 77 SDGs Support Services and Loans
  • 77 SDGs Privately Placed Corporate Bonds

Awards & Recognition

  • MSCI Japan Empowering Women Index constituent

Reporting Period: 2024

Environmental Metrics

Total Carbon Emissions:8,433 tCO2e/year (FY2023)
Scope 1 Emissions:1,138 tCO2e/year (FY2023)
Scope 2 Emissions:7,295 tCO2e/year (FY2023)
Scope 3 Emissions:8,535,613 tCO2e/year (FY2023)
Carbon Intensity:3.8 tCO2e/millions of yen (FY2023)

ESG Focus Areas

  • Climate Change
  • Biodiversity
  • Regional Revitalization
  • Human Rights
  • Diversity & Inclusion
  • Financial Literacy

Environmental Achievements

  • Reduced CO2 emissions by 49.8% compared to FY2013
  • Achieved 15% reduction in CO2 emissions compared to FY2023 through off-site corporate PPA
  • Aiming for carbon neutrality by FY2030

Social Achievements

  • Launched 77 Insurance Service for life plan consulting
  • Launched marriage consultation business (77 Musubi)
  • Established 77 Business With for outsourcing services, promoting diversity and inclusion
  • Increased proportion of women in management positions to 17.5%
  • Provided financial education to 42,833 people (cumulative)
  • Held 53 seminars on SDGs with 3,711 participants (cumulative)

Governance Achievements

  • Revised financial targets in Vision 2030
  • Revised Policy of Return of Profits to Shareholders
  • Established Group Business Strategy Committee
  • Updated MEJAR system, reducing operational costs by approximately 20%
  • Formulated 77 Bank Group Human Rights Policy
  • Ratio of Outside Directors is 50%
  • Ratio of female Directors is 12.5%

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
Medium-term Goals:
  • Achieve carbon neutrality by FY2030
  • Triple labor productivity in core operations by FY2030
  • Increase the number of growth support cases for business founders to 3,000 by FY2030
  • Increase the proportion of women in management positions to 30% by FY2030
  • Cumulative sustainable finance of JPY 1.2 trillion by FY2030
Short-term Goals:
  • Reduce CO2 emissions to 7,400 tCO2e by FY2024
  • Increase the number of growth support cases for business founders to 2,100 by FY2024
  • Increase proportion of women in management positions to 19% by FY2024

Environmental Challenges

  • Aging society with low birthrate
  • Falling population
  • Concentration in Tokyo
  • Lack of corporate successors
  • Climate change risks (physical and transitional)
  • Cybersecurity threats
  • Third-party risks
Mitigation Strategies
  • Implementing Vision 2030 strategies (Top Customer Satisfaction, Double Productivity, Regional Growth, Corporate Culture Reform)
  • Strengthening risk management systems
  • Formulating Cybersecurity Management Rules and implementing multi-layered technological and organizational measures
  • Formulating Policies on Third-Party Risk Management
  • Formulating Emergency Response Plan for Disasters

Supply Chain Management

Responsible Procurement
  • Collaboration with Tohoku Electric Power Co., Inc. for renewable energy

Climate-Related Risks & Opportunities

Physical Risks
  • Credit risk from natural disasters
  • Decline in real estate collateral value
  • Operational risk from disasters
  • Credit risk from sea level rise
Transition Risks
  • Credit risk from climate change regulations and tax systems
  • Credit risk from decarbonization technology failure
  • Reputational risk from insufficient climate change response
Opportunities
  • Expansion of investment and lending opportunities for energy-saving and renewable energy projects
  • Increased consulting needs for decarbonization
  • Expansion of investment and lending opportunities in decarbonization-related businesses
  • Expansion of investment needs with environmentally friendly investment products

Reporting Standards

Frameworks Used: IFRS Foundation’s International Integrated Reporting Framework, METI’s Guidance for Collaborative Value Creation, TCFD

Certifications: Health and Productivity Management Organization 2024, Platinum Kurumin, Gold Certified Company (Miyagi Prefecture), Eruboshi (Grade 3)

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 contribute to these goals through regional revitalization, sustainability promotion, financial literacy programs, and human rights policy

Sustainable Products & Innovation

  • 77 SDGs Support Loan
  • 77 Seven Goals
  • 77 Sustainability Linked Loan
  • 77 Positive Impact Finance
  • 77 SDGs Privately Placed Corporate Bonds
  • 77 Green Loan
  • 77 Social Loan
  • 77 Open-Type Green Foreign Currency Time Deposit

Awards & Recognition

  • Inclusion in MSCI Japan Empowering Women Index