Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Conservation
• Regional Vitality
• Corporate Social Responsibility (CSR)

Environmental Achievements

• Reduced GHG emissions by 18.8% from FY2013 to FY2019; achieved 15% reduction target for FY2020 (compared to FY2013)
• Achieved No. 1 rank in CDP 2019 (Climate Change) comprehensive rating for Japanese banking sector
• Announced support for TCFD in March 2020
• ISO14001 certification for all domestic branches since March 2002

Social Achievements

• Approximately 6,600 employees participated in volunteer activities in FY2019
• Established the “Nagano Economic Research Institute” in 1984 and the “Hachijuni Culture Foundation” in 1985 to contribute to regional development
• Introduced the “Special Holiday System to Encourage Volunteer Activities”

Governance Achievements

• Established three special conferences under the Board of Directors: ALM and Comprehensive Risk Conference, Compliance and Operational Risk Conference, and Loan Management Conference
• Appoints outside directors and outside audit & supervisory board members
• Established the “Nominating and Compensation Committee”

Climate Goals & Targets

Environmental Challenges

• Sluggish Japanese economy in FY2019 due to weak consumer spending, capital investments, decline in exports, consumption tax hike, and natural disasters
• Substantial harm to economic activities since January 2020 due to the coronavirus outbreak
• Uncertainty in economic outlook due to unpredictable factors including COVID-19 containment timeline, overseas economic conditions, and post-tax hike consumption trends

Mitigation Strategies

• Promoted the 31st Long-Term Management Plan entitled “Dare to Change; Create the Next Generation” to contribute to regional development
• Supported regional communities recovering from typhoon damages and the coronavirus pandemic
• Worked to achieve customer profit through concerted effort by all officers and employees

Supply Chain Management

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons (e.g., Typhoon Hagibis)

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001

Third-party Assurance: Lloyd’s Register Quality Assurance Limited (LRQA)

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Conservation
• Regional Vitality
• Social Contribution
• Governance

Environmental Achievements

• Reduced GHG emissions by 19.9% from FY2013 (exceeding the 15% target).
• Achieved A- rating from CDP 2020 (Climate Change) questionnaire, top rank in Japanese banking sector.
• ISO14001 certification for all domestic branches.

Social Achievements

• Approximately 1,400 employees participated in volunteer activities.
• Established the Nagano Economic Research Institute and the Hachijuni Culture Foundation to contribute to the regional community.
• Introduced the “Special Holiday System to Encourage Volunteer Activities”.

Governance Achievements

• Established the Hachijuni Bank Group’s Sustainable Investment and Lending Policy.
• Appoints outside directors and outside audit & supervisory board members to avoid conflicts of interest.
• Established three special conferences under the Board of Directors: ALM and Comprehensive Risk Conference, Compliance and Operational Risk Conference, and Loan Management Conference.

Climate Goals & Targets

Environmental Challenges

• Impact of COVID-19 on the non-manufacturing sector and some targets under the 31st Long-Term Management Plan.
• Transition risks (increased credit risks from stricter climate-related regulations).
• Physical risks (increased credit risks from natural disasters).

Mitigation Strategies

• Provided financial support to customers.
• Cut costs steadily.
• Established the Hachijuni Bank Group’s Sustainable Investment and Lending Policy (including a policy not to invest in new coal-fired power generation projects).
• Implemented scenario analysis to assess transition and physical risks (carbon tax and major flooding).

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Possible increase in credit risks due to deterioration of business performance caused by stagnation of customers’ business and impairment of collateral value from natural disasters caused by climate change.

Transition Risks

• Possible increase in credit risks of customers subject to stricter climate-related regulations, etc. in the process of transitioning to a decarbonized society.

Opportunities

• Increased business opportunities such as finance for renewable energy business and the provision of consulting to support customers’ transition to a decarbonized society.
• Increase in social prestige due to appropriate initiatives and disclosure.

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO14001

Third-party Assurance: Lloyd’s Register Quality Assurance Limited (LRQA)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Decarbonization
• Environmental Preservation
• Sustainable Regional Communities
• Community-Oriented Finance
• Human Capital
• Diversity & Inclusion
• Governance
• SDGs

Environmental Achievements

• Achieved net zero greenhouse gas (CO₂) emissions in FY2022 (for scope 1 and 2 emissions) ahead of schedule.
• Converted three branches to net zero energy buildings (ZEBs).
• All three head office buildings began using Shinshu Green Power (carbon-free energy).
• Became the first regional bank to purchase non-fossil-fuel energy certificates.
• Became the first to purchase J-Credits created by the Nagano Public Corporation of Forestry.

Social Achievements

• Opened Hachijuni Inheritance Consultation Plaza and Hachijuni Insurance Plaza.
• Introduced Wallet+ smartphone app.
• Expanded special leave for infertility treatment and outpatient cancer treatment.
• Increased the number of days of childcare leave and allowed for hour-based increments.
• Implemented multiple-track career development system.
• Expanded training to support career development and skill improvement.
• Conducted financial and economic education programs for elementary, junior high, and high school students.

Governance Achievements

• Established Sustainability Council and Sustainability Working Group.
• Analyzed and disclosed scenarios based on TCFD recommendations.
• Calculated and disclosed 15 categories of scope 3 emissions.
• Established a green, social, and sustainability bond framework.
• Endorsed the TCFD recommendations.

Climate Goals & Targets

Environmental Challenges

• Rapid changes in the world and resistance to change among employees.
• Concerns about banks losing their role in payments due to market entry of other industries.
• Aging population and loss of industry in rural regions.
• Increasing sophistication and diversification of customer needs.
• Need to establish a culture where employees can take on more new challenges.
• Need to address climate change and transition to a decarbonized society.

Mitigation Strategies

• Formulated Medium-Term Management Vision 2021.
• Merger with the Nagano Bank.
• Digital reforms to operations and organizations.
• Personnel system reforms to support growth and satisfaction.
• Investments in system development and data utilization.
• Development of sustainable finance products and services.
• Collaboration with government, corporations, and communities.
• Scenario analysis based on TCFD recommendations.
• Establishment of Hachijuni Link Nagano Co., Ltd.

Supply Chain Management

Responsible Procurement

• Use of recycled paper
• Use of Shinshu Green Power
• Purchase of non-fossil-fuel energy certificates

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters caused by climate change leading to customers’ businesses being temporarily interrupted.

Transition Risks

• Increased credit risk for customers impacted by strengthened policy measures related to climate change.
• Increased carbon costs for companies.
• Fuel restrictions impacting automobile makers.
• Increased raw material prices for electric vehicles.
• Increased electricity prices.

Opportunities

• Increased business opportunities in financing renewable energy businesses and providing consulting to support customer transitions to a decarbonized society.

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, Guidance for Collaborative Value Creation, TCFD, GRI Standards, SASB, SDGs, PCAF Standard

Certifications: ISO 14001

Sustainable Products & Innovation

• Environmental loans
• Green car loans
• SDG loans
• Paperless reception system
• E-Livre (accounts without passbooks)
• Digital contract service for loans

Awards & Recognition

• Outstanding Employer in Corporate Health 2023
• Eco-First Corporation certification

Environmental Metrics

ESG Focus Areas

• Greenhouse gas (CO2) emissions reduction
• Sustainable Finance
• Diversity and Inclusion
• Regional Community Development
• Digital Transformation

Environmental Achievements

• Achieved net-zero greenhouse gas emissions in FY2023 (target).
• Opened three Net Zero Energy Buildings (ZEB) branches in FY2022 (Fujimi, Omachi, Fukushima).
• 46% reduction in greenhouse gas emissions compared to FY2013 (as of FY2022 projection).

Social Achievements

• Launched 'Wallet+' money management app with non-financial services.
• Introduced life support services (177 cases in 1H FY2022) and real estate agent introduction services (164 cases in 1H FY2022).
• Started trust services for individuals (50 cases of Relay of hearts, 22 cases of Longevity and peace of mind, 43 cases of Testamentary trusts, 3 cases of Estate arrangement services).
• Achieved 91.7% utilization of childcare leave by male employees in 1H FY2022.
• Implemented a multiple-track course system for employee career development.
• Provided diversity management training to all store managers in 1H FY2022.
• Established a new dress code to enhance employee autonomy and diversity.
• 90th Anniversary Commemorative Project: Volunteer Donation (90 participants).

Governance Achievements

• Proactively returning profits to shareholders through stable dividends and share buybacks.
• Set numerical targets for reducing cross-shareholdings (20% reduction from 3/2021).

Climate Goals & Targets

Environmental Challenges

• Rising interest rates impacting bond valuations and increasing credit-related expenses.
• Market uncertainty affecting investment performance.
• Need to balance risk reduction with income generation in securities investments.

Mitigation Strategies

• Sold bonds to secure profits and reduce future interest rate hike risk.
• Deepened diversified investments to secure income gain and create unrealized profit over the medium to long term.
• Implemented flexible trading strategies in response to market conditions.
• Strengthened risk management practices.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Sustainability Link Loan (SLL), Hachijuni Sustainability No.1 fund, SDGs loan, Positive Impact Finance (PIF)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Decarbonization
• Environmental Preservation
• Regional Development
• Population Decline
• Aging Population
• Digitalization
• Diversity and Inclusion
• Human Resource Development
• Corporate Governance
• Risk Management
• Customer Protection
• Human Rights
• Biodiversity

Environmental Achievements

• Achieved net zero Scope 1 and 2 greenhouse gas (CO2) emissions in FY2022 (first in banking industry) and maintained net zero in FY2023.
• Achieved 83.7% reduction in greenhouse gas emissions compared to FY2013.
• Received the highest score of A from the CDP in its 2023 climate change rating (first Japanese bank).
• Introduced carbon-neutral gas.
• Joined the Tokyo Stock Exchange carbon credit market.
• Endorsed Taskforce on Nature-Related Financial Disclosures (TNFD) recommendations and became a member of the TNFD Forum.
• Obtained ISO 14001 certification for all domestic locations.

Social Achievements

• Launched Hachijuni Forest volunteer activities.
• Implemented activities to preserve terraced rice fields.
• Provided training to outside organizations on unconscious bias.
• Increased employee engagement score to 3.88 (out of 3) with a positive response rate of 73.9%.
• Received Platinum Kurumin Plus certification for support of working parents.

Governance Achievements

• Established the Sustainability Council, Sustainability Committee, and Sustainability Working Group.
• Endorsed the TCFD recommendations.
• Established a basic policy on diversity and inclusion.
• Established a long-term personnel policy.
• Implemented multiple-track career development system.

Climate Goals & Targets

Environmental Challenges

• Aging and declining population in Nagano Prefecture.
• Labor shortages.
• Climate change impacts on regional economy and agriculture.
• Increasingly sophisticated and diverse customer needs.
• Digital divide.
• Need to enhance profitability and ROE.

Mitigation Strategies

• Business merger with The Nagano Bank.
• Development of non-financial services (regional trade, electric power).
• Strengthening of consulting services.
• Digital transformation initiatives.
• Human resource development programs.
• Strengthening of customer engagement.
• Implementation of TCFD and TNFD recommendations.
• Establishment of Hachijuni Sustainability Fund No. 1.

Supply Chain Management

Responsible Procurement

• Use of recycled paper
• Introduction of PaperLab

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (floods)

Transition Risks

• Carbon taxes
• Changes in fuel procurement costs
• Increased costs for introducing low-carbon vehicles
• Changes in customer behavior
• Assessment by investors and lenders

Opportunities

• Reduction in logistics costs
• Increased business opportunities from decarbonization efforts

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IFRS Foundation), Guidance for Collaborative Value Creation (Ministry of Economy, Trade and Industry), TCFD, TNFD

Certifications: ISO 14001

Sustainable Products & Innovation

• Sustainability link loans
• Positive impact finance
• Hachijuni Sustainability Fund No. 1
• SDG loans
• CO2 Emission Visualization Service
• SDG Initiative Support Service
• J-Credit Referral Service
• Sustainable Management Support Service

Awards & Recognition

• CDP Climate Change A rating (2023)
• Outstanding Employer in Corporate Health (8 consecutive years)
• Platinum Kurumin Plus certification