Initiatives to Improve Corporate Value slide image

Initiatives to Improve Corporate Value

E (Environment): Carbon Neutrality (2) -Scope3- Initiatives to reduce GHG emissions (Scope 3, Category 15) from our investment and financing portfolio ■Committed to achieving net zero by 2050 in terms of GHG emissions from our investment and financing portfolio Identified interim targets to be achieved by the end of FY2030 for investees/borrowers in the energy sector • Initiatives undertaken thus far Identified "Real estate / Construction," "Automotive / Transportation" and "Energy" as priority sectors in light of such factors as the potential impact of climate change on carbon-related sectors specified by the TCFD*1, the size of our portfolio, and a sector- based analysis of financed emissions determined using simple calculation methods. Further analyses, including quantitative risk assessments, were also conducted. New initiatives (identification of interim targets) Implemented the assessment and analysis of financed emissions, emphasizing the energy sector over other priority sectors as it has already seen advances in the development of measurement methods and data accumulation Measurements of three sector components were conducted *2: "Energy," "Oil / Gas" and "Coal." [Breakdown of financed emissions by sector] [Energy sector (Electric power, Oil/Gas, Coal) of financed emissions] Energy priority sectors 3% 0% 6 Real estate / Construction 15% Automobile/Transport Materials Agriculture / Food Paper pulp/ Forestry products Banking/Life insurance Scope subject to GHG emission calculation Indicators Results('22/3) Amount of investments and loans Electric power Power generation Scope1 Physical carbon emission intensity 25% 30% Oil/Gas 21% Coal Mining Scope1-3 Mining Scope1-3 Absolute volume 139 gCO2e/kWh 0.17 MtCO2e 276.0 bn 7.4 bn Absolute volume (Not applicable) Taking the above factors into account, we have identified interim targets for the energy sector (targets have not been set for "Oil / Gas" and "Coal" as the number of customers in these fields is very low) Concepts behind target setting for the energy sector • • • The current carbon emission intensity, which amounts to 139gCO2e/kWh, falls short of the standard for 2030 envisioned in the 1.5°C scenario (NZE2050),*3 due mainly to the general termination of new project financing for coal-fired power generation businesses and proactive lending to domestic borrowers engaged in renewable energy-related businesses. On the other hand, the energy sector is an infrastructure component supporting all industries as well as people's daily lives. Accordingly, pursuing the decarbonization of this sector is essential to helping retail customers achieve decarbonization. Therefore, we will strive for the popularization of renewable energy, which is integral to nationwide decarbonization, while supporting power generation businesses endeavoring to achieve transition and technological innovation. In these ways, we aim to reduce emissions from the energy sector to a level that is substantially lower than the global standard stipulated in the 1.5°C target. Interim targets Carbon emission intensity in FY2030: 100 to 130gCO2e/kWh *1. The Company's sector classification consists of "Energy," "Real estate/Construction," "Automotive/Transportation," "Material," "Agriculture/Food," "Pulp/Forestry products," and "Banking/Life Insurance." *2. Calculated with reference to methods developed by the PCAF *3. Comparison with the 2030 carbon emission intensity (165g CO2e/kWh) envisioned in the NZE2050(WEO2022) Resona Holdings, Inc. 51
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