極東証券株式会社

Climate Impact & Sustainability Data (2023)

Total Carbon Emissions:297 t-CO2

Governance
Business Strategy (including pursuit of a unique business model, expansion of services for the 100-year life era, strengthened sales activities through DX, support for emerging companies through underwriting, enhanced governance and compliance, strengthened risk management system)
Sustainable Business Foundation (including sustainable global environment, improved financial literacy, human resource development and diversification, contribution to local communities)
TCFD

Increased total human capital investment by approximately 10% compared to 2022 (approximately ¥12 million)
95.8% of sales staff obtained FP qualifications
Implemented LINE WORKS service on sales staff's mobile terminals to improve efficiency of various sales activities
Contribution to academic activities and education in finance and economics through donations

Held 4 risk management committee meetings to discuss key risk monitoring and risk management issues
Implemented compliance checks at sales offices considering recent points of attention regarding securities sales
Conducted training for external staff to improve their quality

Increased costs due to the obligation to replace equipment to meet environmental standards
Increased costs due to the expansion of environmental information disclosure obligations
Decreased market competitiveness (products/services) due to technological delays
Increased costs when introducing new sales methods/services due to changes in customer needs
Decline in ESG rating due to insufficient climate change initiatives and disclosure information, leading to exclusion from ESG indices or reduced weight, resulting in reduced institutional investor holdings and share price decline
Loss of customers due to insufficient ESG product lineup
Damage to company image due to failure to switch to renewable energy, etc. (e.g., use of gasoline cars, non-use of energy-saving equipment)
Decline in share price due to decline in ESG rating
Increased business costs due to rising energy prices (electricity, gasoline, etc.)
Disasters to company employees, damage to headquarters building, etc., due to typhoons and heavy rain
Restrictions on outdoor activities due to rising temperatures (e.g., increased risk of heatstroke, road flooding due to rising sea levels)
Increased electricity usage in operations (e.g., increased use of air conditioning due to rising temperatures)

Considering switching company vehicles (including leased vehicles) to electric vehicles and switching electricity to renewable energy
Appropriately responding to environmental disclosure obligations and improving disclosure of other non-financial information to improve the company's ESG rating
Collaborating with foreign financial institutions to discover (develop) products that differentiate the company from others (ESG-related products such as green bonds)
Investing in environmental-related venture companies and promising fields for a decarbonized society
Preparing a system that allows Face-to-Face sales to continue smoothly (digitalization such as enabling remote interviews and remote work through tool introduction)
Acquiring new revenue opportunities through digitalization of new customer contact and information provision

Cost reduction through resource efficiency and energy sources
Provision of new products that capture changes in customer needs (e.g., green bonds, weather derivatives)
Introduction of new sales methods/services (e.g., digitalization of new customer contact and information provision)
Securing new revenue sources by underwriting and selling green bonds
Increased revenue through investment in environmental-related venture companies and promising fields for a decarbonized society
Improved reliability from clients through promotion of renewable energy programs and energy-saving measures

Frameworks Used: TCFD