Economic Indicators and Efforts for Sustainability slide image

Economic Indicators and Efforts for Sustainability

Efforts for Sustainability I-1 _ Summary of Response to TCFD Recommendations Framework of TCFD Overview of Initiatives Governance Strategies Risk Management Benchmark and Targets Copyright 2022 lyogin Holdings, Inc. All Rights Reserved. Established a Group Sustainability Committee operated by the Group Management Meeting and set up a reporting structure to ensure that important matters could be appropriately and timely reported to the Board of Directors Expanded the scope of the "Environmental Policy" and "Policies on investments and loans for specified sectors" to Group companies other than the Bank [Opportunity] Established a support team for carbon neutrality measures Expanded the visualization service of CO2 emissions from customers through collaboration with external organization, in addition to alliance agreements with local electricity companies Promoted sustainable finance initiatives such as green loans, sustainability linked loans and transition loans [Risk] Conducted scenario analysis of physical risks for the Bank's corporate customers regarding risks such as an increase in credit costs, etc., resulting from damage in collateral real estates and interruption on business caused by flood For migration risk, risk importance assessment was conducted on the two cores of risk assessment (impact) by sector and the Bank's portfolio composition ratio (credit amount), and the "Electricity/Gas” sector was selected. Then, we conducted scenario analysis for the sector. Calculated the ratio of carbon-related assets to loans and other assets mainly based on the recommended disclosure items in the TCFD Recommendations [End of fiscal 2021: 28.1%]. Added items concerning environmental friendliness (business status in consideration of climate change and environment) as evaluation items in the "business feasibility assessment," which the Bank has put efforts into Set a CO2 emission reduction target (combining scope 1 and 2) 50% reduction by fiscal 2030 (compared to fiscal 2013) [Fiscal 2021 results: 28.8% reduction] Set a sustainable finance target Cumulated transaction amount from fiscal 2021 to fiscal 2030: ¥1,400.0 billion, including ¥700.0 billion in the environmental area [Cumulated results: ¥151.0 billion] -32-
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