Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Community Investment
• Sustainable Growth
• SDGs

Environmental Achievements

• CO2 emission reduction ratio of 25.0% compared with FY2013 (Bank Total)
• Balance of investments and loans for renewable energy of 208.1 billion yen (As of March 31, 2021)

Social Achievements

• “Platinum Kurumin” certification for superior childcare support
• Recognized as an outstanding organization under the 2021 Certified Health & Productivity Management Outstanding Organizations Recognition Program
• Percentage of women in assistant manager positions or higher of 30.0% (As of March 31, 2021, Bank Total)
• Issuance of private placement bonds with donation scheme totaling 68.7 billion yen, with approximately 138 million yen donated (Cumulative total since FY2016)

Governance Achievements

• 5 outside directors (including 1 female outside director) on the 12-member Board of Directors
• Implementation of a restricted stock compensation plan for executive directors to align compensation with long-term corporate value

Climate Goals & Targets

Environmental Challenges

• Regional issues such as population decline, aging population, business succession difficulties, and the impact of the COVID-19 pandemic
• Climate change and environmental issues, including natural disasters
• Digitalization and the need to adapt to changing customer needs
• Maintaining profitability in a low-interest-rate environment

Mitigation Strategies

• Enhancement of consulting services to support businesses and individuals
• Structural reforms for enhanced productivity, including core system integration and branch network optimization
• Development of human resources for value creation, including IT and digital skills
• Proactive support for customers impacted by the COVID-19 pandemic
• Commitment to TCFD recommendations and setting a CO2 emission reduction target of 30% or more by FY2030
• Proactive support for renewable energy businesses
• Environmentally and Socially Friendly Investments and Loans Policy

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters resulting from climate change

Opportunities

• Promoting renewable energy businesses

Reporting Standards

Frameworks Used: TCFD

Certifications: Platinum Kurumin

Awards & Recognition

• Platinum Kurumin
• 2021 Certified Health & Productivity Management Outstanding Organizations Recognition Program

Environmental Metrics

ESG Focus Areas

• Revitalization of the regional economy and local communities
• Response to climate change and environmental conservation
• Promotion of digitalization
• Response to an aging society
• Promotion of diversity

Environmental Achievements

• Reduced Group CO2 emissions by 54.1% from FY2013 to FY2023 (10,294 tons of CO2 in FY2023)
• 39.6% of electricity used by the Group was converted to renewable energy in FY2023
• Introduced an Internal Carbon Pricing (ICP) system in October 2023

Social Achievements

• Launched various initiatives to support an aging population, including life plan consulting, asset management and succession support, and financial education
• Increased ratio of female employees in assistant manager positions or higher to 35.2% by the end of March 2024 (target achieved one year ahead of schedule)
• Implemented initiatives based on the Diversity Policy, improving the work environment and increasing employee engagement

Governance Achievements

• Established a governance structure centered on the Sustainability Committee under the supervision of the Board of Directors
• Implemented a robust risk management system, including an ALM/Risk Management Committee and regular monitoring of sustainability risks
• Established the Environmentally and Socially Friendly Investments and Loans Policy and have not engaged in investments and loans in conflict with the policy since March 2021

Climate Goals & Targets

Environmental Challenges

• Stagnant regional economy due to inability to respond to increasingly diverse and sophisticated customer needs
• Deterioration in business performance due to an increase in business closures and bankruptcies
• Labor shortage due to declining birthrate and aging population
• Business succession problem
• Climate change risks (physical and transition risks)
• Natural capital-related risks

Mitigation Strategies

• Deepening comprehensive financial services, including consulting functions for business companies
• Developing new business areas by leveraging the Group’s strengths
• Promoting DX to improve productivity and customer convenience
• Enhancing response to an aging society through life plan consulting and gerontology-related services
• Implementing initiatives based on the Diversity Policy
• Conducting scenario analysis of climate change risks and developing mitigation strategies
• Supporting customers’ decarbonization efforts through financial support and consulting services
• Analyzing dependencies and impacts of business activities on nature and developing response measures

Supply Chain Management

Responsible Procurement

• Group-wide Procurement and Purchasing Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme natural disasters
• Chronic climate changes

Transition Risks

• Tightening of laws and regulations
• Changes in industrial structure

Opportunities

• Increased demand for climate change-related businesses
• Increased sustainable finance and related transactions
• Cost reduction through resource and energy saving

Reporting Standards

Frameworks Used: TCFD, TNFD, SDGs

Certifications: DX Certified Business Operator

Sustainable Products & Innovation

• Private placement bonds with J-Credit purchase option

Awards & Recognition

• 3rd Regional Revitalization SDGs Finance Award
• Debtor Usage Rate Prize from densai.net Co., Ltd.