Initiatives to Improve Corporate Value slide image

Initiatives to Improve Corporate Value

E (Environment): Carbon Neutrality (3) -Scope3- Initiatives to reduce GHG emissions (Scope 3, Category 15) from our investment and financing portfolio Basis for the calculation of financed emissions The volume of GHG emissions from each investee/borrower corporation is multiplied by the attribution factor (Balance of investment and financing / Sum of assets and liabilities) and the resulting numerical values for all investee/borrower corporations are aggregated Energy sector ΣΟ Carbon emission intensity of investees/borrowers (gCO2e/kWh) × Oil/Gas sector Σ Formula Value of investment/financing by the Company for investees/borrowers Volume of emissions from investees/borrowers (MtCO2e) Total value of investment/financing by the Company for all investees/borrowers subject to calculation Value of investment/financing by the Company for investees/borrowers Sum of borrowings and capital held by investees/borrowers Coverage ratio*1 Data quality score*2 ) 85% 2.1 ) 100% 3.0 Initiatives to be undertaken going forward To achieve our interim targets regarding the energy sector, we will proactively extend credit to corporations engaged in renewable energy-related businesses that will, in turn, facilitate the smooth transition of all other customers. Simultaneously, we will actively pursue dialogue with investees/borrowers and provide them with follow-up consulting on their initiatives. We will annually disclose the status of financed emissions associated with the "Energy," "Oil / Gas" and "Coal" sectors while considering the assessment of financed emissions from priority sectors other than the energy sector and the formulation of interim targets for them. We are aware of the need to expand the scope of financed emission assessments to, ultimately, encompass our overall portfolio, including credit extended to retail customers, and will thus be striving to reduce emissions from this portfolio. Accordingly, we will continue to act as a "running partner" for retail customers and assist them in the transition of their awareness and modes of behavior. By doing so, we will strive to assess and reduce the volume of financed emissions associated with credit extended for retail customers. *1. By sector, based on loans *2. Data-quality scores defined by PCAF Resona Holdings, Inc. 52 52
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