SUSTAINABILITY
DATA
BOOK

2021
April 1, 2021–March 31, 2022

SUSTAINABILITY DATA BOOK 2021

Editorial Policy

Positioning of Sustainability Data Book
Tokyo Century discloses information on its values and strengths and on the sustainability initiatives that contribute toongoing improvements in corporate value through its integrated reports and other materials and venues. Through thesemeans, we hope to facilitate a deeper understanding among stakeholders.
Sustainability Data Book 2021 consolidates the environmental, social, and governance (ESG) information disclosed via
our integrated reports, website, and other venues. Through this approach, we aimed to develop a data book that catalogs
information based on ESG areas to be used as a reference for stakeholders, particularly those with high levels of interest in
ESG investment. Please also consult our integrated reports and website.
Furthermore, we hope to make our sustainability data books easier to understand by incorporating reader feedback inorder to evolve these data books into more effective communication tools for engagement with stakeholders.

Scope of Reporting

Scope of Data
Collection

Report Period

Publication

In principle, this data book includes data from Tokyo Century Corporation and its consolidated subsidiaries.
Should certain data pertain to Tokyo Century Corporation on a non-consolidated basis or a different scope,
notification will be provided.

April 1, 2021–March 31, 2022
(Information on some activities from outside of this period is included.)

December 2022

Independent Practitioner’s Assurance
To ensure the reliability of its environmental performance information, the Company has received independent practitioner's
assurance from Deloitte Tohmatsu Sustainability Co., Ltd., with regard to Scope 1, Scope 2, and Scope 3 (categories 1, 13,
and 15) greenhouse gas emissions as well as for the annual electricity generation volumes and CO2 emissions reductions
associated with the solar power generation business of Kyocera TCL Solar LLC (see Independent Practitioner's Assurance on
pages 2–4 for more information).

LegendEMS: Nine companies applicable under Tokyo Century’s environmental management system
( Tokyo Century Corporation; TRY Corporation; TC Agency Corporation; TC Business Service Corporation; TC Business Experts Corporation;
TC Property Solutions Corporation; S.D.L. Co., Ltd.; FLCS Co., Ltd.; and ITEC Leasing Co., Ltd.)TC: Tokyo Century Corporation (non-consolidated)

Gr: 60 Tokyo Century Group companies
(43 domestic companies and 17 overseas companies): Items for which Independent Practitioner’s Assurance has been received− 01 −SUSTAINABILITY DATA BOOK 2021

Independent Practitioner's Assurance

To ensure the reliability of its environmental performance information, the Company has received independent practitioner’s
assurance from Deloitte Tohmatsu Sustainability Co., Ltd., with regard to Scope 1, Scope 2, and Scope 3 (categories 1, 13,
and 15) greenhouse gas emissions as well as for the annual electricity generation volumes and CO2 emissions reductions
associated with the solar power generation business of Kyocera TCL Solar LLC.

Independent Practitioner’s Assurance Report（TRANSLATION）

Independent Practitioner’s Assurance Report
October 24, 2022

Mr. Koichi Baba,
President & CEO, Representative Director,
Tokyo Century Corporation.

Masahiko Sugiyama
Representative Director
Deloitte Tohmatsu Sustainability Co., Ltd.
3-2-3, Marunouchi, Chiyoda-ku, Tokyo

We have undertaken a limited assurance engagement of the environmental performance data indicated withfor theyear ended March 31, 2022 (the “Environmental Quantitative Information”) included in the “SUSTAINABILITYDATA BOOK 2021” (the “Report”) of Tokyo Century Corporation. (the “Company”).
The Company’s Responsibility
The Company is responsible for the preparation of the Environmental Quantitative Information in accordance withthe calculation and reporting standard adopted by the Company (the Report P.3-4). Greenhouse gas quantification is
subject to inherent uncertainty for reasons such as incomplete scientific knowledge used to determine emissions
factors and numerical data needed to combine emissions of different gases.
Our Independence and Quality Control
We have complied with the independence and other ethical requirements of the Code of Ethics for Professional
Accountants issued by the International Ethics Standards Board for Accountants, which is founded on fundamental
principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior.
We apply International Standard on Quality Control 1, Quality Control for Firms that Perform Audits and Reviews ofFinancial Statements, and Other Assurance and Related Services Engagements, and accordingly maintain acomprehensive system of quality control including documented policies and procedures regarding compliance withethical requirements, professional standards and applicable legal and regulatory requirements.
Our Responsibility
Our responsibility is to express a limited assurance conclusion on the Environmental Quantitative Information basedon the procedures we have performed and the evidence we have obtained. We conducted our limited assurance
engagement in accordance with the International Standard on Assurance Engagements (“ISAE”) 3000, Assurance
Engagements Other than Audits or Reviews of Historical Financial Information, issued by the International Auditing
and Assurance Standards Board (“IAASB”), ISAE 3410, Assurance Engagements on Greenhouse Gas Statements,
issued by the IAASB and the Practical Guideline for the Assurance of Sustainability Information, issued by theJapanese Association of Assurance Organizations for Sustainability Information.
The procedures we performed were based on our professional judgment and included inquiries, observation ofprocesses performed, inspection of documents, analytical procedures, evaluating the appropriateness of quantification
methods and reporting policies, and agreeing or reconciling with underlying records. These procedures also included
the following:
・ Evaluating whether the Company’s methods for estimates are appropriate and had been consistently applied.
However, our procedures did not include testing the data on which the estimates are based or reperforming theestimates.
・ Performing interviews of responsible persons and inspecting documentary evidence to assess the completenessof the data, data collection methods, source data and relevant assumptions applicable to the sites.
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent
than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance
engagement is substantially lower than the assurance that would have been obtained had we performed a reasonableassurance engagement.
Limited Assurance Conclusion
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention
that causes us to believe that the Environmental Quantitative Information is not prepared, in all material respects, inaccordance with the calculation and reporting standard adopted by the Company.
The above represents a translation, for convenience only, of the original Independent Practitioner’s Assurance report issued in
the Japanese language.
Member of
Deloitte Touche Tohmatsu Limited− 02 −

Calculation Standards
Assured Items

Fiscal 2021 Scope and Calculation Methods

Scope of Data Collection
Tokyo Century Corporation and major Group companies (60 companies)
Scope 1
greenhouse gas
emissions

Domestic companies (43): Tokyo Century Corporation; TRY Corporation; TC Agency Corporation;
TC Business Service Corporation; TC Business Experts Corporation; TC Property Solutions
Corporation; S.D.L. Co., Ltd.; Fujitsu Leasing Co., Ltd.;*1 ITEC Leasing Co., Ltd.; 20 group companiesof Nippon Rent-A-Car Service, Inc.; four group companies of Shinko Real Estate Co., Ltd.;*2 Nippon
Car Solutions Co., Ltd.; Orico Auto Leasing Co., Ltd.; Orico Business Leasing Co., Ltd.; IHI FinanceSupport Corporation; Kyocera TCL Solar LLC; KCT Koyo LLC; Energy Gate2 LLC; Energy Gate4 LLC;
TC Hotels & Resorts Karuizawa Co., Ltd.; and CSI Leasing Japan K.K.
*1 Effective April 1, 2022, Fujitsu Leasing Co., Ltd., changed its name to FLCS Co., Ltd.
*2 Effective April 1, 2022, Shinko Real Estate Co., Ltd., changed its name to TC KOBELCO REAL ESTATE CO., LTD.

Overseas companies (17): Tokyo Century Leasing China Corporation; Tokyo Century Factoring
China Corporation; Tokyo Century Leasing (Singapore) Pte. Ltd.; Tokyo Century Capital (Malaysia)

Sdn. Bhd.; PT. Century Tokyo Leasing Indonesia; TISCO Tokyo Leasing Co., Ltd.; TC Car Solutions(Thailand) Co., Ltd.; HTC Leasing Co., Ltd.; CSI Leasing, Inc.; EPC Inc.; Tokyo Century (USA) Inc.; AP
Equipment Financing Inc.; Work Truck Direct Inc.; Aviation Capital Group LLC; Aviation Capital Group
Singapore Pte. Ltd.; ACG Aircraft Leasing Ireland Limited; and BPI Century Tokyo Lease & FinanceCorporation
Scope 2 greenhousegas emissions

Applicable emissions: Greenhouse gas emissions from energy use
Calculation Method
Scope 1: Fuel use volume × CO2 emission factor*1*1 L
 ist of Calculation Methods and Emissions Factors for Calculation, Reporting and Announcement Systems specified in the Act on
Promotion of Global Warming Countermeasures

Scope 2: Electricity use volume × CO2 emission factor*2*2 Japan: List of Emissions Factors by Electric Power Utility specified in the Act on Promotion of Global Warming Countermeasures
United States: U.S. average (2020) coefficient from Environmental Protection Agency’s Emissions & Generation Resource Integrated
Database
Other countries: Country-specific emission factors for most recent fiscal year from IGES Grid Emissions Factors

Scope of Data Collection
Scope 3 greenhousegas emissions
Category 1—
Purchased goods and services

Tokyo Century Corporation

Calculation Method
Lease property acquisition costs × Emission basic unit based on industry tables*3*3 D atabase of emission basic unit for calculating organizational greenhouse gases across the supply chain provided by the Ministryof the Environment (Ver. 3.2)

1. Computers, office equipment, telecommunications equipment
Scope of Data Collection
Tokyo Century Corporation

Calculation Method
Scope 3 greenhousegas emissions
Category 13—
Downstream leased assets

Energy consumption of high-representation equipment × Estimated annual operating time× CO2 emission factor*4 × Unit number of applicable equipment*4 F iscal 2021 substitution values from List of Emissions Factors by Electric Power Utility specified in the Act on Promotion of Global
Warming Countermeasures

2. Aircraft
Scope of Data Collection
Tokyo Century Corporation; TC Skyward Aviation U.S., Inc.; TC Skyward Aviation Ireland Limited; TC
Aviation Capital Ireland Limited; Aviation Capital Group LLC

Calculation Method
Based on data extracted from IBA’s Carbon Emissions Calculator, which calculates CO2 emissions
based on flight data of the aircraft managed by the above companies− 03 −

Assured Items

Scope 3 greenhousegas emissions
Category 13—
Downstream leased assets

Fiscal 2021 Scope and Calculation Methods
3. Ships
Scope of Data Collection
Tokyo Century Corporation

Calculation Method
Annual use of class A and class C fuel oil × CO2 emission factor*1*1 L
 ist of Calculation Methods and Emissions Factors for Calculation, Reporting and Announcement Systems specified in the Act on
Promotion of Global Warming Countermeasures

Scope of Data Collection
Scope 3 greenhousegas emissions
Category 15—

Tokyo Century Corporation
Applicable investments: Cross-shareholdings

Investments

Calculation Method
CO2 emissions of cross-shareholding counterparty × Ownership ratio (as disclosed by CDP)

Scope of Data Collection
Annual electricity
generation volumes
and CO2 emissions
reductions from solar
power generation
business of Kyocera
TCL Solar LLC

Solar power generation facilities of Kyocera TCL Solar LLC

Calculation Method
Annual generation volume: Total annual generation volume (transmission basis) for all solar power
generation facilities
CO2 emissions reductions: Annual solar power generation volume (transmission basis) × CO2 emission
factor*2*2 399.5 g-CO2/kWh (arrived at by subtracting figure of 45.5 g-CO2/kWh for crystalline silicon solar cells [solar power generation
system electricity consumption] from figure of 445 g-CO2/kWh for per-generation CO2 emissions from preliminary greenhouse gas
emission figures released by the Ministry of the Environment in fiscal 2019, as described in CO2 reduction standards in fiscal 2021
Japan Photovoltaic Energy Association guidelines)− 04 −SUSTAINABILITY DATA BOOK 2021

Contents
Editorial Policy01

Independent Practitioner's Assurance02

Sustainability
Corporate Information

06

Financial Information

07

Sustainability Philosophy and Policies

08

New Fourth Medium-Term Management Plan

19

Environment
Environmental Policies

20

Environmental Performance23

Climate Change Response Strategy

25

Environmental Market Opportunities

27

SocialHuman Rights

29

Diversity

31

Human Resource Utilization

33

Health and Productivity Management

36

Social Contribution Activities

37

Human Resource Data

38

Engagement with Shareholders, Investors, and Customers

40

GovernanceCorporate Governance42

Risk Management

46

Compliance

49

Information Security

54

Personal Information Protection

56

OthersExternal Evaluations / Inclusion in ESG Indices59

Participation in External Initiatives

60

GRI Standards Index
Universal Standars

61

Economic, Environmental, and Social Items

63− 05 −SUSTAINABILITY DATA BOOK 2021

Sustainability
Corporate Information
Company Profile
Company nameTokyo Century Corporation

Business activities

Equipment leasing, mobility and fleet management, specialty financing, international
business operations

Head office

FUJISOFT Bldg., 3 Kanda-neribeicho, Chiyoda-ku, Tokyo 101-0022, JapanFoundedJuly 1, 1969

Company representatives

Masataka Yukiya, Chairman & Co-CEO, Representative Director
Koichi Baba, President & CEO, Representative Director

Capital¥81,129 million

Stock listing (securities code)

Tokyo Stock Exchange, Prime Market (8439)

Major shareholders

ITOCHU Corporation; Chuo-Nittochi Co., Ltd.; Nippon Telegraph and Telephone Corporation;and Mizuho Bank, Ltd.

Global network coverage

More than 30 countries and regions

Operating Segments
Equipment Leasing

Leasing and finance (moneylending and investment) including ancillary services and otherbusinesses dealing with information and communications equipment, office equipment,
industrial machinery, transportation equipment, and equipment for commercial and service
industries

Mobility & Fleet Management

Automobile leasing for corporate customers and individuals, car rental and car-sharing
businesses, etc.

Specialty Financing

Leasing and finance (moneylending and investment) including ancillary services and otherbusinesses focusing on product fields, such as shipping, aviation, real estate, and theenvironment and energy, in Japan and overseas

International BusinessLeasing and finance (moneylending and investment) including ancillary services and fleet
service businesses, among others, mainly in East Asia, the ASEAN region, and North, Central,and South America

Operating Segment(

Number of Employees (Consolidated)

Equipment Leasing

692(125 )

Mobility & Fleet Management

3,493(3,138)Specialty Financing

1,192(1,424)

International Business

1,982

(17 )

Others58(22)

Corporate (shared) / Administrative

217

(30)

7,634

(4,756)Total(As of March 31, 2022)

Note: N umber of employees represents full-time employees. Figures in parentheses represent the average number of temporary
employees over the respective fiscal year and are not included in the number of full-time employees.

− 06 −

Financial Information
1. Consolidated Financial Results
Item

Unit

Fiscal 2019

Fiscal 2020

Fiscal 2021

Revenues

Millions of yen

1,166,599

1,200,184

1,277,976

Operating income

Millions of yen

88,346

77,154

82,675

Ordinary income

Millions of yen

91,126

78,10590,519Net income attributable to owners of parent

Millions of yen

56,30349,14550,290Net income per shareYen

524.96402.57411.56Return on equity

%

11.5

8.7

8.1

Return on assets

%

1.9

1.4

1.6

Operating income to revenues

%

7.6

6.4

6.5

2. Consolidated Financial Position
Item

Unit

Fiscal 2019

Fiscal 2020

Fiscal 2021

Total assets

Millions of yen

5,608,556

5,602,897

5,663,787

Net assets

Millions of yen

660,145688,345795,580

Shareholders’ equity ratio

%

9.9

10.2

11.9

Net assets per shareYen

4,543.43

4,670.45

5,507.50

3. Consolidated Cash Flows
Item

Unit

Fiscal 2019

Fiscal 2020

Fiscal 2021

Net cash provided by (used in) operating activities

Millions of yen

50,664

51,331

227,383

Net cash provided by (used in) investing activities

Millions of yen

315,177

97,405

16,075

Net cash provided by (used in) financing activities

Millions of yen

523,062

18,946

201,421

Cash and cash equivalents at end of year

Millions of yen

250,096

216,901

240,047

4. Segment Information (Fiscal 2021)
Millions of yen

Adjustments inconsolidated
financialstatements

Total inconsolidated financial
statements

Equipment
Leasing

Mobility & Fleet
Management

Specialty
Financing

International
Business

Revenues

512,691

342,098

307,108

116,8141,036

1,772

1,277,976

Segment income (loss)

33,93919,22729,49818,987351

11,484

90,5191,379,734

611,769

2,311,842

557,055

18,999784,386

5,663,787

2.4%

3.1%

1.3%

3.7%

−

−

1.9%

Item

Segment assets
Return on assets** Return on assets = Ordinary income ÷ (Segment assets at beginning of year + Segment assets at end of year ÷ 2)

− 07 −

OthersSustainability Philosophy and Policies
Management Philosophy

The Tokyo Century Group will work alongside customers
in pursuit of their growth as a highly specialized and unique financial services company
and will contribute to the creation of an environmentally sound,sustainable economy and society.

Management Policy

We will provide the best products and services around the world to contributeto the success of our customers’ businesses while pursuing all possibilities
by collaborating with customers and uniting the overall strengths of the Group.

We will strive to raise our corporate value over the medium
to long term by pioneering new business fields and realizing sustainable growth.

We will cultivate a corporate culture that allows diverse human resources
to fully demonstrate their skills and personalities, andwe will build a company in which all officers and employees can hone their expertiseand experience growth as well as a sense of pride.

We will always be mindful of our social responsibility
as a corporation and conduct our business activities with vigor
and sincerity as we fulfill our role of creating a sustainable economy and society.

Corporate Slogan

Solutions to your Pursuits− 08 −

Corporate Code of Conduct

1.

Dedication to Customers
The Tokyo Century Group is dedicated to the success of its customers’ businesses by accurately responding to their needs withquality products and services and thereby forging solid relationships of trust.

2.

Sound and Fair Corporate Activities
The Tokyo Century Group engages in sound and fair corporate activities by complying with all laws, regulations, and rules andconforming to social norms.

3.

Corporate Responsibility and Contribution to Society
The Tokyo Century Group seeks to fulfill its social responsibilities through honest business management and contributes to society
by meeting public expectations as an upstanding corporate citizen.

4.

Respect for Human Rights
The Tokyo Century Group respects the human rights of all people and promotes diversity to nurture a corporate culture thatencourages personnel with diverse characteristics to thrive.

5.

Preservation of the Environment
The Tokyo Century Group seeks to preserve the environment in all areas of its business activities by endeavoring to create
an environmentally sound, sustainable economy and society.

6.

Response to Global Standards
The Tokyo Century Group acts from a global perspective that is highly transparent and sincere, by respecting the cultures andcustoms and complying with the laws, regulations, and relevant systems of the countries and regions in which it operates.

Our Action Guidelines

1.

We will continue creating solutions that earn customer trust and recognition.
We will strive to resolve the issues faced by our customers by harnessing our high level of expertise and foresight to provide
optimal products and services that earn their trust and recognition.

2.

We will act in compliance with laws and regulations and in accordance with our social conscience.
We will comply with laws and regulations to conduct fair and proper business activities, and we will act on our own initiative inaccordance with our social conscience as dignified individuals. We will distinguish between the Company’s interests and our
individual interests and will strictly refrain from actions that impair the interests of the Company.

3.

We will respect human rights and human dignity and create a rewarding working environment.
We will respect our mutual human rights and human dignity and strive to create a vibrant, rewarding working environment wherediscrimination and harassment have no place.

4.

We will stringently manage personal information and customer information.
We will stringently manage the personal information and customer information we obtain through our operations to prevent bothleakage outside the Company and use for unintended purposes.

5.

We will pursue activities to preserve the environment.
We will maintain a high awareness of environmental issues and actively work to preserve the environment, which includes actions
to prevent global warming and promote energy conservation.

6.

We will avoid contact with antisocial forces and criminal organizations.
We will act decisively to avoid any contact with antisocial forces that obstruct the course of social order and safety or with criminalorganizations inside or outside Japan that hamper legitimate economic activity.

− 09 −

Sustainability Management Policy

Tokyo Century’s commitment to sustainability is driven by its pursuit of further sustainable development and higher corporate value along withstakeholders as a financial services company, and it thereby contributes to the creation of an environmentally sound, sustainable economy andsociety. In promoting sustainability management, we envision, with due consideration of the United Nations Sustainable Development Goals(SDGs), a society 10 to 20 years into the future and then take a backcasting approach toward creating financial services that will meet theneeds of that time.

Promotion of Sustainability Management
Tokyo Century has defined its materiality (key issues), which isitself based on the SDGs, and is advancing initiatives based on thismateriality for the purpose of promoting sustainability management
to address social issues through its business activities. We thereby
aim to improve corporate value while ensuring sustainable growth forboth the Tokyo Century Group and the greater society.
Tokyo Century’s materiality comprises five key issues anda shared platform that supports efforts based on these issues.
This structure was arrived at through meetings involving relevant
Companywide organizations, discussions by the Sustainability
Committee, identification of the relationship of our materiality to
the medium-term management plan, and final deliberation by theManagement Meeting and the Board of Directors. This process wasframed by the materiality map linked to and based on analysis of the
169 targets for the 17 SDGs.
We are advancing materiality initiatives while implementing
a PDCA cycle to confirm progress in this regard. In addition, we
have implemented protocols for including materiality notifications
in agendas for meetings of the Transaction Evaluation Meeting,Management Meeting, and the Board of Directors; a contributionaward program; and other frameworks for improving awareness ofmateriality initiatives among employees.

* Major ESG evaluation and non-financial disclosure standards referenced indetermining the degree of materiality of key issues to stakeholders:
Dow Jones Sustainability Index, FTSE4Good Index, MSCI Index, and SASB

− 10 −

Tokyo Century’s Materiality (Key Issues) Linked to the SDGs
Materiality

Priority materiality initiatives

Initiative examples

Contribution to
decarbonized society

Contribute to widespread use of clean energy throughclimate change response and environmental efforts

Renewable energy business including
solar power generation, popularization ofelectric vehicles via leasing

Creation of new
businesses driven bytechnical innovation

Create new businesses by integrating newtechnologies into financial services and contribute to
the digital economy

Subscription services, fintech, and newrental car services utilizing smartphone
apps

Contribution to social
infrastructuredevelopment

Respond to advances in global mobility services andcooperate with local communities to contribute tosocial infrastructure development

Regional revitalization through rental carsand car sharing, Drive Doctor telematics
driving control service that supports safe
driving, and hotel business

Sustainable resource use

Contribute to development of a circular economy
focused on the value of assets

IT equipment leasing, refurbishment,
aircraft life-cycle management, andautomobile leasing

Enhancement of work
environment, leading tostrengthening of human resources

Promote human resource development, diversity, andworkstyle reforms that improve job satisfaction andfoster a sense of personal growth

Introduction and implementation of
telecommuting, employee awarenesssurveys, and 360° evaluations

Shared platforms

SDGs

Utilize diverse partnerships to create new value

Structure for Promoting Sustainability Management

The Sustainability Committee (established in April 2018) is responsible for deliberations related to sustainability management at Tokyo
Century. This committee meets twice a year, in principle. Important matters deliberated on by the Sustainability Committee are reported to anddiscussed by the Management Meeting and the Board of Directors to allow for oversight by the Board of Directors. The Sustainability Committee
is chaired by the president of the Corporate Planning Unit, and this committee promotes initiatives positioning sustainability as an importantmanagement issue.
Members and Meetings of the Sustainability Committee (Fiscal 2021)
Members
Chairperson

Director and President of the Corporate Planning Unit

Members

Operation Headquarters: Unit heads (IT Unit, Business Process Management Unit, Personnel
Unit, General Affairs Unit, and Risk Management Unit), deputy president of the Corporate
Planning Unit, general manager of the Corporate Planning Division, and general manager of
the Sustainability Management Division

Auditors

Standing corporate auditors

Business Headquarters: Four business unit general managers (Equipment Leasing, Mobility &Fleet Management, Specialty Financing, and International Business) and observers (invited asnecessary)

Meetings
Meetings held

4

Major agenda items• Information disclosure based on recommendations of TCFD
• Business and human rights initiatives• Progress of medium- to long-term sustainability management initiatives (road map)
• Carbon-neutrality initiatives− 11 −

Non-Financial Materiality KPIs
Tokyo Century has established non-financial key performance indicators (KPIs) related to its materiality in order to promote sustainability
management.
The following pages contain information on the principal non-financial KPIs defined for each materiality (key issue).
(Some non-financial KPIs overlap with the ESG-related non-financial KPIs described on page 20 and thereafter.)

Contribution to Decarbonized Society
Tokyo Century recognizes that combating climate change is an important management priority. Our efforts to contribute to a decarbonizedsociety include environmental activities in offices, the development of solar power and other renewable energy businesses, the promotion of
the Financing Program for Joint Crediting Mechanism (JCM) Model Projects for reducing greenhouse gas emissions through collaboration with
developing countries and for sharing emissions reduction benefits between involved countries, and other efforts for addressing climate change
through our business activities. We are also working to reduce Scope 3 emissions. For example, Aviation Capital Group LLC has ordered 60 new
Airbus aircraft, including Airbus A220 aircraft that use 25% less fuel than prior models. Furthermore, we have set the target of amassing a fleetof 100,000 electric vehicles by fiscal 2030 in the Mobility & Fleet Management segment.
Moreover, Tokyo Century announced its endorsement of the recommendations of the Task Force on Climate-related Financial Disclosures(TCFD) in April 2021. In addition, we identified climate change risks and opportunities under multiple scenarios and conducted qualitativeand quantitative business impact assessments in line with TCFD recommendations. Information in this regard is disclosed on our corporatewebsite.*Response to Climate Change and TCFD Endorsement https://www.tokyocentury.co.jp/en/csr/environment/tcfd.html

KPI
Reduction of electricity use(environmental contributions throughoffice activities)

Reduction of gasoline use(environmental contributions throughoffice activities)

MetricUnit

Targetyear

TargetFiscal 2019

Fiscal 2020

Fiscal 2021

Electric use

kWhFiscal2022

Less than 1,650,000 kWh

1,598,069

1,578,546

1,539,011

CO2 emissions

t-CO2

Fiscal2022

Less than 725 t-CO2

818

770

723

Gasoline use

L

Fiscal2022

Less than 65,000L

69,03843,76845,360CO2 emissions

t-CO2

Fiscal2022

151t-CO2

160

102

105

Fuel efficiency

km/L

Fiscal2022

More than13.5km/L

13.9

14.3

14.5

Reduction of paper use (environmental
contributions through office activities)

Paper use
(A4 size equivalent)Thousandsof sheets

Fiscal2022

Less than 10 million sheets

13,832

9,262

8,278

Reduction of head office electricity use(intensity target)

Per-area electricityuse

kWh/m2

Fiscal2030

70.00 kWh/m2(23% reduction incomparison with FY2009)

65.28

59.75

64.84

Reduction of annual CO2 emissions
associated with head office electricity
use (intensity target)

CO2 emissions
from per-area
electricity use

t-CO2/m2

Fiscal2030

0.041t-CO2/m2(23% reduction incomparison with FY2009)

0.033

0.029

0.030

Annual generation
volumeMWhFiscal2022

More than 478,900 MWh

359,665

414,047

482,795(compared withstandard thermal
power generation)

t-CO2

Fiscal2022

More than 191,321 t-CO2

162,029

172,864

192,877

Rate of electrified vehicle use(EVs, FCEVs, PHEVs, HVs)

Mobility and fleet
management*2

%

−

−

16.9

18.4

19.3

Rate of fuel-efficient aircraft*3 use

Ratio offuel-efficient
aircraft assets*4

%

−

−

31.3

40.4

45.7

Projected aggregate greenhouse gas
emissions reductions from JCM Model
Projects

Projected aggregate
greenhouse gas
emissions reductions

t-CO2

Fiscal2025

56,00029,79534,54735,457

Reduction of CO2 emissions throughsolar power businesses of four
consolidated subsidiaries*1CO2 emissions*1 Four consolidated subsidiaries: Kyocera TCL Solar LLC and three other solar power business companies*2 Mobility and fleet management: Nippon Car Solutions Co., Ltd.; Nippon Rent-A-Car Service, Inc.; and Orico Auto Leasing Co., Ltd.
*3 Fuel-efficient aircraft: A220, A320neo, A321neo, A350, 737MAX, 747-8F, and 787*4 Ratio of fuel-efficient aircraft assets: Ratio of fuel-efficient aircraft to all aircraft (including those of Aviation Capital Group LLC)

− 12 −

Carbon Neutrality Policy
The Tokyo Century Group has defined “contribution to decarbonized society” as one part of its materiality (key issues), based on which it isworking to popularize the use of clean energy through initiatives for combating climate change and preserving the environment. In conjunction
with the start of the commercial operation of a biomass co- firing power plant of Shunan Power Corporation in September 2022, the Groupunveiled its carbon-neutrality policy for fiscal 2040. This policy describes our goal of achieving effectively zero greenhouse gas emissions while
also presenting a transition road map for the aforementioned power plant.
The biomass co- firing power plant of Shunan Power is projected to produce around 98% of the Group’s greenhouse gas emissions going
forward. For this reason, we look to achieve effectively zero greenhouse gas emissions as soon as possible, with fiscal 2040 being our target
year for the accomplishment of this goal. To this end, we will increase the biomass co-firing ratio at this plant while adopting black pellets,
which feature high combustion efficiency, prefaced on assumptions of future technological developments. At the same time, we will transition
to the burning of ammonia, which does not emit greenhouse gas emissions. We are also increasing our use of renewable energy for purposessuch as powering domestic and overseas consolidated subsidiaries. Through these efforts, the Tokyo Century Group will work toward its goal ofachieving carbon neutrality by fiscal 2040.

The Tokyo Century Group’s Carbon-Neutrality Policy

The Tokyo Century Group*1 promotes the reduction ofgreenhouse gas (GHG) emissions*2 andaims to achieve carbon neutrality by fiscal 2040.
As the interim target for achieving carbon neutrality,

the Tokyo Century Group aims to achieve a 50% reduction in GHG emissions by fiscal 2030 (vs. FY2021*3).
*1 Major consolidated subsidiaries where personnel are located (including the biomass co- firing power plant of Shunan Power Corporation)*2 Direct emissions from Company-owned and controlled resources (Scope 1) and indirect emissions from the consumption of purchased electricity, heat, and steam (Scope 2)*3 Greenhouse gas emissions of 1,365,000 t-CO2 in fiscal 2021
(Emissions volume as calculated in relation to carbon-neutrality target = Fiscal 2021 greenhouse gas emissions + Estimated annual greenhouse gas emissions from hotel businessand biomass co-firing power plant of Shunan Power)

Image

The Tokyo Century Group’s Greenhouse Gas Emissions Reduction Plan

GHG at the biomass co-firing power plant

Other greenhouse gas
emissions

Challenges

25,000 t-CO2

Strategic actions for achievingcarbon neutrality taken at biomass
co-firing power plant in light ofoperating environment

Down
50 %

In consideration of the projected increase in the biomass
co-firing ratio and the anticipated use of next-generation
technologies, including ammonia co-firing, the Groupestablished the “Transition Roadmap for Achieving
Carbon Neutrality by 2040,” which is aimed at reducing
GHG emissions by 50% by fiscal 2030 and achievingcarbon neutrality by fiscal 2040.

Down
50 %

1,340,000
t-CO2
50%
reduction

Fiscal 2021

Fiscal 2023

(Base year)(Year of interim
target)POINT

0Commercial Operations Begin at Shunan Power Corporation’sPower Plant

Fiscal 2040
(Target year for
carbon neutrality)− 13 −

Overview of Transition Road Map for Shunan Power
Corporation’s Power Plant (in Japanese only)
Evaluation Report by Japan Credit Rating Agency, Ltd. (inJapanese only)Creation of New Businesses Driven by Technical Innovation

Tokyo Century seeks to create new businesses by integrating new technologies into financial services and to contribute to the digital economy
through collaboration with partner companies and investment in companies boasting promising technologies. In the Equipment Leasing
segment, where we possess a broad customer base and are developing numerous joint ventures together with prime partners, we arereinforcing our foundation for supporting the digital economy through investment in and a business alliance with Bplats, Inc., a provider ofcomprehensive subscription service business platforms, while also developing subscription service businesses. Also in this segment, wehave established IBeeT Corporation, a joint venture with ITOCHU Corporation, to supply subscription services for household electricity storage
systems, decentralized power sources that contribute to decarbonization, and peripheral equipment. Meanwhile, in the Mobility & Fleet
Management segment, where we develop a comprehensive range of industry-leading automotive businesses, Tokyo Century is co-creating new
businesses that promote digital transformation in the mobility field. For example, we have concluded a capital and business alliance agreementwith Mobility Technologies Co., Ltd., which operates the GO taxi dispatch app covering the largest number of affiliated taxis in Japan. Also, weare engaged in mobility-as-a-service (MaaS) and smart city businesses through a business alliance with major map solutions provider ZENRIN
CO., LTD., in which we combine the resources of this company with our own. In the Specialty Financing segment, which drives Tokyo Century’s
growth with highly specialized operations, we have concluded an investment contract with Germany’s Volocopter GmbH, a company developing
flying cars as a form of next-generation aerial mobility, and are advancing other Companywide initiatives aimed at creating new businesses forthe next era.
In December 2020, the DX Strategy Division was established within the Corporate Planning Unit to plan and promote Companywide digitaltransformation strategies. In addition, Tokyo Century was the first leasing-based financial services provider to be recognized as a DX-certified
operator advancing superior initiatives under the DX Certification system organized by the Ministry of Economy, Trade and Industry (METI).
The Company is also focused on fostering a corporate culture in which employees feel empowered to boldly tackle new challenges without
fear of failure. For this purpose, we introduced the TC Biz Challenge Project, a new business proposal initiative, in fiscal 2020 to providea system for driving future business growth. Through this project, the Company offers its full support for promising business plans andimplements frameworks for examining methods of commercializing such plans. In its first year, a total of 36 proposals were received throughthe TC Biz Challenge Project, and a verification test is being advanced to assess the feasibility of commercializing the one proposal that passed
the final screening.

KPI

Certification under METI’s DX Certification system** Outline of the DX
Certification System

Supplement

Certification achieved in March 2021

The DX Certification system is an initiative implemented under the Act on Partial Revision of the Act on Facilitation of Information Processing, which came into force on May
15, 2020. In line with the guidelines set by the Japanese government that present to companies ideal approaches for making use of strategic systems in their business
management and for creating such systems, an authority certifies companies engaging in outstanding efforts, if companies eligible for certification file a request accordingly.
Under the DX Certification system, beyond being poised to promote digital transformation, it is important that companies have taken measures related to the fundamental
items of management goals, strategies, performance, KPIs, and governance systems that are defined in the digital governance code compiled by METI in November 2020.
Moreover, Tokyo Century was included in the Digital Transformation Stock Selection (DX Stocks) announced in June 2022. DX Stocks is a selection of Tokyo Stock
Exchange-listed companies that have established internal frameworks for promoting digital transformation aimed at improving corporate value and which have beensuccessful in highly utilizing digital technologies. Between one and two companies are chosen for each industry. The Company has also been included in this program ineach of the eight years since the establishment of the Competitive IT Strategy Company Stock Selection program—the predecessor of the DX Stocks program—in 2015.

− 14 −

Contribution to Social Infrastructure Development

In the Mobility & Fleet Management segment, where we develop industry-leading automotive businesses, Tokyo Century provides mobilityrelated services through its auto leasing and car rental businesses. These services play a crucial role in contributing to social infrastructure
while also having material importance to supporting safety. Moreover, we are promoting the use of vehicles equipped with automated brakes
and other safety features in order to contribute to the achievement of target 3.6—By 2020, halve the number of global deaths and injuries fromroad traffic accidents—of SDG Goal 3: Good health and well-being. In addition to these equipment-related initiatives, we are proactively offering
support through software-related initiatives, namely, safe driving lessons that utilize telematics systems.
In a business environment free of regulatory constraints, Tokyo Century is branching out from leasing and financing to develop and growunique business models based on the concept of “Finance × Services × Business Expertise” through co-creation with partners. For example, we
recognize that the revitalization of local communities through the tourism industry is an important task as the depopulation of areas outside ofmajor urban centers becomes an increasingly serious social issue. In this regard, ANA InterContinental Beppu Resort & Spa, an establishmentthat Tokyo Century played a part in attracting, was opened in Beppu City, Oita Prefecture, in August 2019. This facility garnered attention as
Japan’s first InterContinental resort hotel and is functioning as a piece of social infrastructure that promotes tourism and contributes to regional
revitalization. Calling upon the expertise gained through this undertaking, we were able to conclude an operation subcontracting agreementwith InterContinental Hotels Group PLC, based on which we opened Hotel Indigo Karuizawa—located in Karuizawa, a popular Japanese highland
resort area—in spring 2022.
Tokyo Century is also involved in real estate operations in Tokyo. As part of the TOKYO TORCH redevelopment project taking place in frontof the Nihonbashi exit of Tokyo Station, the Company acquired a super luxury hotel and large-scale hall to be built in Torch Tower, a building
scheduled for completion in fiscal 2027, jointly with Mitsubishi Estate Co., Ltd. Together with the office section previously acquired by bothparties, these assets are expected to function as important parts of social infrastructure in this urban center. In addition, the Tokyo Cross Park
Vision project has been announced by a group of 10 participating companies, including Tokyo Century. This next-generation smart city projectcalls for the development of the area of the Uchisaiwaicho 1-chome district of Tokyo. With an aggregate floor space of 1.1 million ㎡, this will be
one of the largest development projects in Tokyo. Connected to the 16-hectare Hibiya Park, the Tokyo Cross Park Vision project will install officebuildings, commercial facilities, and residential housing while contributing to the shared goal of operating in a carbon-negative manner in orderto help realize a sustainable community and society.
Furthermore, we announced a business and capital alliance with Nippon Telegraph and Telephone Corporation (NTT) in February 2020.
The need for high-speed processing and collection of large quantities of data is growing on a global scale, stimulating a rise in data centers.
In response to this trend, we will advance social infrastructure business initiatives through our alliance with NTT as we seek to make othercontributions together with partners.
Meanwhile, together with NTT TC Leasing Co., Ltd., we are providing building leases for new market facilities as part of a project forreorganizing publicly certified wholesale markets being advanced by Toyama City, Toyama Prefecture. Together with this partner, we seek torespond to demand for rebuilding aged public facilities across Japan, expand businesses for invigorating local economies through contributions
to infrastructure development, and advance initiatives with significant social meaning that help revitalize local communities.

KPI

Applicable
companies*1

Unit

Number of vehicles equipped with telematics services

NCS, NRS, OAL

Number of safe driving lessons conducted using
telematics services*2

Ratio of rental cars equipped with safety features(automated brakes, etc.)

Fiscal 2019

Fiscal 2020

Fiscal 2021

Vehicles

63,66867,757

74,180Lessons

962

459

923

Participants

19,212

7,095

13,261

%

90.3

94.3

96.0

NCS

NRS

*1 NCS: Nippon Car Solutions Co., Ltd.; NRS: Nippon Rent-A-Car Service, Inc.; OAL: Orico Auto Leasing Co., Ltd.
*2 The number of safe driving lessons declined substantially in fiscal 2020 in response to the COVID-19 pandemic, and this reduction led to a decrease in the number of participants.

− 15 −

Sustainable Resource Use

The leasing business Tokyo Century has developed since its founding is built on the 3Rs (reduce, reuse, and recycle), meaning that theCompany has been contributing to the realization of an environmentally sound, sustainable economy and society since its inception. Leasing
businesses necessarily involve assets, and focuses on the value of assets and on effectively utilizing these assets are thus of crucial
importance to such businesses. By further honing the propensity for judging the value of the assets we have refined throughout our history,
we look to broaden the scope of assets we handle to branch out from traditional financing and leasing to engage in life-cycle management
operations related to automobiles and aircraft. At the same time, we will work together with our partners to combine our specialties and areasof expertise to address social issues. In this manner, Tokyo Century will seek to evolve business models in fields where it can contribute to
the realization of an environmentally sound, sustainable economy and society in which it is possible to achieve economic growth while using
resources efficiently.
Information and communications equipment is a major offering of our leasing business. In recent years, greater importance has beenplaced on the environment and on information management with regard to the disposal of end-of-lease IT equipment. This trend is anticipatedto spur rapid growth in demand for IT asset disposition (ITAD) services such as data erasing and disposal for IT equipment, which can be used
to ensure the safe and appropriate disposal of these IT assets. We anticipate that this demand will be seen centered on global companies
seeking to provide services that are standardized on a worldwide basis. In this regard, U.S.-based IT leasing subsidiary CSI Leasing, Inc., isa major source of strength. This company is able to supply high-quality global-standard services through its IT equipment leasing and ITAD
service operations in more than 40 countries across the globe. In fiscal 2021, CSI Leasing posted ordinary income approximately 3.7 times thelevel seen in fiscal 2015, when Tokyo Century commenced investment.
In the aviation business, the conversion of major U.S. aircraft leasing company Aviation Capital Group LLC into a wholly owned subsidiary
in December 2019 made it possible for the Tokyo Century Group to engage in self-driven forays into the operating lease business for new andother aircraft. Going forward, we will continue to pursue intra-Group synergies capitalizing on the strengths of the Group’s aircraft value chain,
which includes such companies as aircraft parts and service business operator GA Telesis, LLC, and allows for strategic aircraft life-cycle
management.
Tokyo Century’s auto businesses contribute to sustainable resource use through a value chain that encompasses maintenance factories.
In this area, Nippon Rent-A-Car Service, Inc., offers car rental services that deliver improved customer convenience and which contribute tosharing economies, as exemplified in the trend toward transitioning from ownership to use, amid the rising focus on realizing an environmentallysound, sustainable economy and society. In addition, Tokyo Century has concluded a capital and business alliance with MIRAI-LABO, which
possesses electric vehicle (EV) battery diagnosis and evaluation and reuse technologies. The goal of this alliance is to expand its EV leasing
and rental businesses. Through this alliance, the used EV battery diagnosis technologies of MIRAI-LABO, which is acting based on its expressedgoal of becoming an environmental platform holder, will be utilized to strengthen these businesses. At the same time, we will work with MIRAILABO’s partners to bolster and supply environment-friendly mobility services related to the reuse and recycling of EV batteries.

MetricUnit

Targetyear

TargetRefurbishment businessAnnual salesof secondhand
computers

Computers

Fiscal2024

ITAD data erasure services(CSI Leasing subsidiary Executive
Personal Computers, Inc., of the UnitedStates)Number of units
processed withITAD services

Units

Promotion of car rental services(Nippon Rent-A-Car Service, Inc.)

Number of rental
cars

Cars

KPI

Fiscal 2019

Fiscal 2020

Fiscal 2021

More than 210,000
computers

479,625

405,055

247,456−−

1,246,042

829,815

1,208,184−−

37,83233,09831,157− 16 −

Enhancement of Work Environment,
Leading to Strengthening of Human ResourcesTokyo Century continues to invest in the human resources who support its growth and to develop workplace environments in which all officers
and employees feel empowered in their work. These undertakings will be imperative to ensuring that the Company can keeping growing andevolving in the current era of rapid change.
We conduct employee awareness surveys to help focus our efforts to develop workplace environments in which all employees respect one
another and are able to fully exercise their talents. The results of these surveys are analyzed to identify issues and shape future initiatives, andthis information is incorporated into officer training and discussed on an ongoing basis by the Management Meeting and the Board of Directors,
so that identified issues can be addressed as top management priorities. Various measures for improving employee engagement have been
implemented based on these surveys. For example, we have introduced an hourly paid leave program and a teleworking system, along with the
Career Challenge Program internal recruitment initiative, which is designed to provide employees with an opportunity to chart their own careercourses. Surveys have also been used to facilitate the enhancement of work–life balance support systems for assisting employees giving birth,raising children, or providing care to family members.
Moreover, the Diversity Promotion Office and the Career Design Office have been established within the Personnel Division to guide mediumto long-term growth initiatives. Under the guidance of these organizations, we are fostering a corporate culture in which diverse employees
are able to proactively exercise their talents and individuality through efforts such as recruiting and developing diverse human resources andpromoting diversity and inclusion. We also provide employees with a plethora of training opportunities. In addition to annual training and otherdesignated training programs, we offer online learning programs in which employees can select courses on business and other skills as well aspractical and specialized training for specific business areas. By supplying various opportunities for enhancing skills, we aim to develop humanresources capable of supporting the growth of the Company and contributing to management in the future.
Furthermore, Tokyo Century established its Basic Policy on Health and Productivity Management in fiscal 2021, thereby outlining its intent
to increase its focus on the promotion of health of the Company’s officers and employees. It is important to develop an environment in which
all of our human resources—who represent our greatest assets—can work vigorously in good health, both physically and mentally, and fully
exercise their individuality and all their abilities. We therefore strive to maintain and improve the well-being of our officers and employees andtheir families with the recognition that health and productivity management is a corporate management issue.

KPI

Unit

Targetyear

TargetFiscal 2019

Fiscal 2020

Fiscal 2021

Career track
employees

15.2

14.9

16.5

Administrative
employees

2.7

3.2

2.6

Total

10.2

10.2

11.2

Hours

−

Annual paid leave acquisition rate%

Fiscal
2023

70%

−

76.3

72.7

75.6

Childcare leave acquisition rate%

Fiscal
2023

Rate of childcare leaveacquisition by male
employees
100%

Women

100.0

100.0

100.0

Men

100.0

100.0

100.0

Average monthly overtime hours−

Targetemployees

Ratio of employees with disabilities

%

−

−

−

2.93

2.61

3.22

Ratio of women among new-graduate hires%

Fiscal
2023

30%

−

50.0

30.8

52.9

Ratio of women in management positions%

Fiscal
2023

30%

−

7.9

9.1

9.7

Ratio of women in section leader positions

%

−

−

−

48.8

50.7

48.1

Ratio of employees remaining at the Company for
10 years or more (by gender)

%

−

−

Women

57.4

48.6

42.9

Men

60.3

53.7

58.3

%

Women

1.2

0.7

0.9

Employee turnover rate

Men

4.9

3.7

4.5

−

−

Rate of employees undergoing regular healthcheck-ups

%

−

−

−

100.0

100.0

100.0

Rate of employees undergoing stress checks

%

−

−

−

97.0

94.3

98.6

People

−

−

−

−

14

13

Employees relocated through Career Challenge
Program internal recruitment system

Note: Figures are for Tokyo Century Corporation (non-consolidated). The Career Challenge Program internal recruitment initiative was commenced in 2020.

− 17 −

Shared Platforms

Creation of New Value through Diverse Partnerships
Exercise of Management Philosophy

2009Tokyo Century has continued to support the ambitions ofvarious companies and businesses while growing together
with these partners● Converted IHI Finance Support Corporation
into a consolidated subsidiary● Century Tokyo Leasing Corporation establishedthrough a merger between Century Leasing System,
Inc., and Tokyo Leasing Co., Ltd.

2010

2011

● Conducted merger between Tokyo Auto Leasing

Co., Ltd., and Nippon Car Solutions Co., Ltd., andconverted Nippon Car Solutions into a consolidated
subsidiary2012● Acquired shares in GA Telesis, LLC, and converted it into an
equity-method affiliate● Established solar power generation company Kyocera TCL
Solar LLC with Kyocera Corporation as a joint venture● Converted Nippon Rent-A-Car Service, Inc.,
into a consolidated subsidiary

2013

2014

● Acquired shares in a leasing subsidiary of Bankof the Philippine Islands, a leading bank in thePhilippines, and converted it into an equity-method
affiliate before converting it into a consolidated
subsidiary in 2020

● Converted CSI Leasing, Inc., a leading U.S.-

based independent leasing company, into an
equity-method affiliate before converting it into
a wholly owned subsidiary in 20162015

● Established Orico BusinessLeasing Co., Ltd., which
specializes in vendor
leasing, with Orient
Corporation

2016● Converted Aviation CapitalGroup LLC, a major U.S.-based
commercial aircraft lessor,
into an equity-method affiliate
before converting it into awholly owned subsidiary in
2019

2017

2018

● Changed corporate name to Tokyo
Century● Converted Bplats, Inc., into an
equity-method affiliate● Acquired shares in Shinko Real
Estate Co., Ltd., and converted
it into a consolidated subsidiary● Acquired shares in Amada

Lease Co., Ltd., and converted
it into a consolidated subsidiary2019● Acquired shares in U.S.-basedleasing company AP Equipment
Financing, Inc., and converted it
into a wholly owned subsidiary● Concluded a capital andbusiness alliance agreementwith Nippon Telegraph andTelephone Corporation (NTT)コーポレートシンボル● Acquired shares in ITOCHU

Aタイプ（英語版）

データは、アイソレーションの枠（透明）を設定しています。

Construction Machinery andchanged its name to ITOCHU TC
Construction Machinery2020● Established NTT TC Leasing
Co., Ltd., as a spin-off ofthe leasing and financing
operations of NTT FINANCECORPORATION
カラー● Acquired shares in NITTSU Lease& Finance Co., Ltd., and converted
it into an equity-method affiliate

2021

モノクロ

− 18 −

on New Fourth Medium-Term Management Plan:
New Fourth Medium-Term Management Plan Information
https://www.tokyocentury.co.jp/download/pdf/en/news/200206_newsrelease_en.pdfs

Principal Measures by Operating Segment
Equipment Leasing

Mobility & Fleet Management

Operating Segment

Operating Segment

Boost value of leasing business and adapt todigital transformation

View changing times as an opportunity to
pursue mobility services that go a step further

Boost value of leasing business and accelerate business co-creation
Create new business domains in response to digital transformation
Optimize organization and improve operational efficiency to suit changes
in business styleEnhance customer value and brand power with unrivaled quality of service
Pursue channel and segment strategies aimed at expanding business baseTake innovative initiatives for a new era
Strengthen Group management systems to support business expansion

Specialty Financing

International Business

Operating Segment

Operating Segment

Further refine businesses with expertiseand creativity

Respond to expansion of the digital economy
and the mobility revolution

Maximize the value chain in collaboration with partners
Develop new businesses in response to changes in the operating
environment
Build organizational platform and infrastructure in accordance with global
standards
Perform post-merger integration and establish governance systems at
acquired companies

Collaborate with leading companies through alliance strategies
Pursue broader and deeper business related to fintech andmobilityStrengthening of the Management Base: Key Themes and Policies
Strengthen consolidated management

Drive business transformation with digital technology

Raise level of consolidated management on a global basis
Manage sustainably to help strengthen responsiveness to
the SDGs and ESG issues
Continue examination of operating systems to create
systems that contribute to autonomous management ofeach business domain
Generate creative ideas and new businesses

Enhance and reinforce the financial baseHarness digital technology to enhance corporate value
and bolster competitiveness
Drastically revise existing systems to accelerate digital
innovation
Develop systems aimed at promoting digital innovation

Enhance risk management systems

Strengthen risk management in response to diversificationof business investments and other elements of risk profile
Build risk control framework aimed at efficient allocationof management resources
Respond to social need for information security, diverse
crisis management, quality control, etc.

Stabilize fund procurement
Expand foreign currency procurement capabilities
Raise level of asset liability management

Emphasize diversity in human resource development andworkstyle reforms

Strengthen corporate governance

Secure diverse human resources (skilled personnel
required by each operating segment or operation
headquarters)
Develop global human resources
Review and reform personnel policies to suit thecharacteristics of operating segments and workstylereforms

Strengthen management systems contributing toenhancement of corporate value
Strengthen Group governance
Strengthen efforts to improve effectiveness of Board of
Directors− 19 −SUSTAINABILITY DATA BOOK 2021

Environment
Environmental Policies

Basic Environmental Policy
The Tokyo Century Group recognizes that addressing environmental issues is a key
management concern and will seek to contribute to the creation of an environmentally sound,sustainable economy and society and a decarbonized society based on the United Nations
Sustainable Development Goals (SDGs). To this end, the Tokyo Century Group will act withdue consideration for environmental issues, including prevention of environmental pollution,
reduction of greenhouse gas emissions, mitigation and adaptation to climate change impacts,
and conservation of biodiversity and ecosystems, in all areas of its operating activities.
1. Global Environmental Preservation through BusinessWe will strive to contribute to reducing environmental impacts, conserving forests, oceans, andwater resources through our operating activities by developing and providing environmentallysound products and services around the world. We also track the impact of our operating
activities on ecosystems and engage in activities that contribute to biodiversity conservation.

Policies
related to theenvironment

Basic Environmental
Policy2. Contribution to Creating an Environmentally Sound, Sustainable Economy and Society
From the standpoint of life cycle management, we will seek to create an environmentallysound, sustainable economy and society through our efforts for promoting waste reduction,
reuse and recycling, and renewable energy.
3. Promotion of Resource and Energy Conservation Activities
We will promote resource and energy conservation activities in recognition of theenvironmental impact caused by the consumption of resources and energy and the dischargeof wastes and other materials associated with our operating activities, including in our supply
chain.
4. Legal Compliance
We comply with environmental laws and regulations, ordinances and treaties, as well asinternational environmental standards and stakeholder agreements to which the Tokyo
Century Group agrees.
5. Efforts for Continuous Improvement
We will seek to prevent environmental pollution and engage in environmental activities
along with providing environmental education and ensuring its dissemination by setting
environmental objectives and goals. Furthermore, by constantly reviewing the results of these
activities, we will strive to continuously improve our environmental management system andraise awareness of environmental issues.
6. Information Disclosure
We will strive to disclose information on this policy and our environmental initiatives to ourvarious stakeholders and encourage their understanding and cooperation.

Management
systemChief executive

President & CEO, Representative Director

Oversightorganization

Environmental Management Committee

Climate changerelated oversightby the Board of
Directors

Tokyo Century takes steps to address climate change-related issues through management
reviews conducted via an environmental management system based on ISO 14001. These
reviews are used to evaluate environmental performance and provide guidance for future
directives. In addition, twice-annual meetings are convened for the Environmental Management
Committee, which is chaired by the president of the Risk Management Unit, who is also theenvironmental oversight representative.
The Environmental Management Committee reports to the Management Meeting on theenvironmental activities implemented in a given fiscal year and receives evaluations of these
activities as well as guidance for future directives.
The Company’s governance system is designed so that important matters, such as theestablishment, revision, or abolition of the Basic Environmental Policy, are resolved after beingbrought to the attention of the Board of Directors for discussion.
− 20 −

The Tokyo Century Group recognizes that it has a social responsibility to help addressenvironmental issues. Accordingly, it has acquired ISO 14001 certification, the international
standard for environmental management systems, for the following companies (certification
was received from BSI Group Japan K.K.).

Scope of ISO 14001 Certification

Acquisition of ISO
14001 certification

ISO 14001 certification has been acquired for the following
Tokyo Century Group entities.
■ Tokyo Century Corporation(head office, Okachimachi office, Akihabara UDX office)■ TRY Corporation■ TC Agency Corporation■ FLCS Co., Ltd. (head office)In addition, the following three consolidated subsidiaries have received certification on an
individual basis.
■ Nippon CarSolutions Co., Ltd. (head office)■ Amada Lease Co., Ltd.
■ Executive Personal Computers, Inc. (subsidiary of CSI Leasing, Inc., of the United States)

Scope of Application of Environmental Management System

Tokyo Century Corporation; TRY Corporation; TC Agency Corporation; TC Business Service
Corporation; TC Business Experts Corporation; TC Property Solutions Corporation; FLCS Co., Ltd.;
S.D.L. Co., Ltd.; and ITEC Leasing Co., Ltd.

Environmental Management System
Board of Directors(Sustainability Committee)

Management
systemEnvironmental
management
system promotion
framework

Sustainability Management
Division
Coordination

President(Management Meeting)(Internal environmental
management system audits)
Audit Unit

(Environmental manager)
President of the Risk
Management Unit

(Environmental Management
Committee)(Environmental Management
Office)Risk Management Division(Persons in charge of environment)
Head of each division and branch
Office(Eco leaders)
Responsible person of each divisionand branch officeEnvironmental
auditsInternal environmental audits of organizations at companies applicable under the
aforementioned environmental management system are performed to confirm that theiroperations are conducted in accordance with the stipulations of the environmental management
system. The fiscal 2021 audit found no nonconforming organizations.
Tokyo Century participates in the Japan Leasing Association’s plan for achieving a low-carbon
and has set proprietary targets for contributing to the accomplishment of the Japan Leasing
Association’s long-term targets for fiscal 2030.

Long-term quantitative
greenhouse gas
emissions reduction
targets(intensity targets)

Long-Term Targets
1. Per head office floor space electricity use
Fiscal 2030: 70.00 kWh/m2 (23% reduction compared with fiscal 2009)
2. Annual CO2 emissions from per head office floor space electricity use
Fiscal 2030: 0.041 t-CO2/m2 (23% reduction compared with fiscal 2009)
Item

Unit

Per head office floor space electricity use

kWhm²

65.28

59.75

64.84

Annual CO 2 emissions from per head
office floor space electricity use

t-CO2/m²

0.033

0.029

0.030

− 21 −

Fiscal 2019

Fiscal 2020

Fiscal 2021

Environmental
education• Environmental education is provided through e-learning programs for the purpose of raising environmental awareness at
Tokyo Century Corporation and Group companies.
• We have issued our in-house newsletter, eco news, three to four times a year since fiscal 2021, renaming it Sustainability
Communication in January 2020. The newsletter has been used to communicate on environmental issues and sustainability
topics pertaining to management strategies. The redesigned sustainability newsletter is currently distributed to Tokyo
Century Corporation and to Group companies, and was issued five times in fiscal 2021, in both Japanese and English.
• In divisions engaged in operations closely related to the environment, such as those responsible for disposal of end-of-leaseproperties and renewable energy business initiatives, environmental regulation tables are used to periodically confirm theregulations and ordinances related to the activities of these divisions. In addition, division members participate in internaland external lectures and training to gain deeper insight with this regard.
• Tokyo Century has been making ongoing contributions to environmental education for elementary and junior high school
students through donations to local environmental preservation organizations in the regions where it operates solar power
generation businesses. As a result of these efforts, the Company received a letter of appreciation from an environmental
preservation organization in Shiga Prefecture.

Biodiversity-Related Guidelines

See Basic Environmental Policy on page 20

Woodland Banking Project

Tokyo Century is participating in a woodland banking project in partnership with Tsubaki Farm, an organization that
conducts verification tests of woodland preservation (woodland banking) activities in Shisui Town, Chiba Prefecture. These
woodland banking activities use a framework designed to offset the negative environmental impacts of development
and other economic activities with the positive effects of conservation activities based on market principles to createa Japanese version of biodiversity preservation.
For more information, please refer to the following press release (in Japanese only).
https://www.tokyocentury.co.jp/_cms/wp-content/uploads/2021/07/58105ee0d259efdd95ea649543643920.pdf

Biodiversity
initiatives

Coastal Forest Restoration Project Planting area: 72.46 ha; Aggregate number of trees planted: 370,198 (As of March 31, 2022)• Tokyo Century is involved in a project that supports the restoration of coastal forests damaged by the tsunamis that
followed the Great East Japan Earthquake, through seedling cultivation and reforestation activities.
• We are supporting the Great East Japan Earthquake Reconstruction Support–Coastal Forest Restoration Project throughongoing donations to OISCA (The Organization for Industrial, Spiritual and Cultural Advancement-International).

Mangrove Tree Planting Scope: 9 countries; Planting area: 8,543 ha (As of March 31, 2022)• Tokyo Century is advancing mangrove tree planting projects in the Asia Pacific region to protect coastal environments andthe lifestyles of people in coastal areas by preventing erosion caused by high waves and the loss of coastal mangrove
trees.
• We also began supporting a mangrove tree planting project as a new donation-driven venture by OISCA in fiscal 2022.

Kodomo no Mori Plan Scope: 5,406 schools in 37 countries and regions (As of March 31, 2022)• The Kodomo no Mori Plan is a project that promotes greening and teaches children to love nature and value greenery byhaving them plant and take care of trees at their schools or in other locations in their communities.
• We make regular donations to OISCA to support the Kodomo no Mori Plan, which gives children the opportunity to plant
and take care of trees at their schools or in the surrounding areas.

Sustainable
Resource Use

PaperLabTokyo Century has installed the PaperLab A-8000, an office papermaking system developed by Seiko Epson Corporation.
This system uses the waste paper collected in recycling boxes at the Company’s offices to produce new paper.
Using this system, we aim to reduce our environmental impact by cutting down on waste paper, including shredded waste
paper, and by recycling used office paper.

Refurbishment Businesses

In our refurbishment businesses, we erase the data of end-of-lease computers, servers, and other IT equipment so thatthey can be resold rather than discarded, thereby contributing to the creation of an environmentally sound, sustainableeconomy and society.

− 22 −

Environmental Performance
Scope

Unit

Fiscal 2019

Fiscal 2020

Fiscal 2021

Scope 1 (direct emissions)

Gr

t-CO2

3,139

3,613

10,963*1

Scope 2(indirect emissions originated from energy use)

Gr

t-CO2

8,590

7,964

9,177*2t-CO2

1,390,556

1,043,996

6,195,446*3

Total

t-CO2

1,402,285

1,055,573

6,215,586

Scope 3 (emissions from supply chain, etc., notincluded in Scope 1 or Scope 2)

Scope 3 Emissions by Category

Greenhouse gas
emissionsCategory 1

Purchased goods and services

TC

t-CO2

1,054,304

843,494

617,405

Category 2

Capital goods

TC

t-CO2

512

100

71

Category 3

Fuel- and energy-related activities(not included in Scope 1 or Scope 2)

TC

t-CO2

1,574

1,739

3,820

Category 4

Upstream transportation anddistribution

TC

t-CO2

0

0

0

Category 5

Waste generated in operations

TC

t-CO2

597

1,247

593

Category 6

Business travel

TC

t-CO2

127

120

121

Category 7

Employee commuting

TC

t-CO2

231

221

222

Category 8

Upstream leased assets

TC

t-CO2

0

0

0

Category 9

Downstream transportation and distribution

TC

t-CO2

0

0

0

Category 10

Processing of sold products

TC

t-CO2

0

0

0

Category 11

Use of sold products

TC

t-CO2

3,108

5,452

19,104

Category 12

End-of-life treatment of sold products

TC

t-CO2

350

148

575

Category 13

Downstream leased assets

t-CO2

193,866

181,292

Category 14

Franchises

TC

t-CO2

0

0

0

Category 15

Investments

TC

t-CO2

135,886

10,183

9,369

Unit

Electricity use andrelated CO2 emissions

Environmental
contributions
through officeactivities

1,880,000

1,550,000

1,650,000kWh1,598,069

1,578,546

1,539,011

t-CO2

723

15,80013,50013,000Thousands of sheets

13,832

9,262

8,278

L
(environmental targets)

90,00072,00069,000L

69,03843,76845,360

t-CO2

160

102

105

km/L
(fuel efficiency)

13.9

14.3

14.5

MWh
(environmental targets)

300,000

355,000

400,000

MWh(annual generation
volume)340,712

388,084

447,619

CO2 emissions
reductions
t-CO2

153,491

162,025

178,824

Units(environmental targets)

210,000

230,000

260,000

Units

479,625

405,055

247,456

Total waste emissions

t

1,533

2,670

1,350

Waste sent to landfills

t

851

1,685

824

31

22

18

22.96

16.43

12.87

Renewable energy generation
operations
CO2 emissions reductions
associated with solar power
generation business of Kyocera
TCL Solar LLC
Refurbishment operations
EMS(Annual number of
secondhand computers sold)Water
resources

Fiscal 2021

770

Gasoline use, CO2 emissions,and fuel efficiency for businessvehiclesand rent-a-car fleet

Waste

Fiscal 2020

818

EMS

Environmental
contributions
through businessactivities

Fiscal 2019kWh(environmental targets)Thousands of sheets(environmental targets)

Paper use

Other
environmental
performancedata

5,544,166*3

TC

TC

Water intake(only head office and Okachimachi Bldg.)
Water intake (per unit of production)− 23 −

Thousands of mm

3

3

Compliance

Environmental
accounting

Number of environmental law violations

TC

Environmental preservation costs

TC

Cases

0

0

0

Fiscal 2019

Fiscal 2020

Fiscal 2021

Item

Specific Expenses

Unit

1. Costs within businessarea

Costs for transition to ecofriendly vehicles and network
equipment upgrades

Millions of yen

164

33

147

2. Upstream anddownstream costs

Waste disposal expenses

Millions of yen

47

98

50

ISO 14001 certification
maintenance and related costs

Millions of yen

Secretariat, environmental,
and CSR expenses

19

28

35

Millions of yen

230

159

231

Fiscal 2019

Fiscal 2020

Fiscal 2021

3. Administrative costs

Total

Green revenue

Sales of solar
power generation
businesses

Gr

Green
purchasing rate

Rate of green purchasingof office supplies

Greenhouse gas
emissions throughJCM Model Projects

Projected aggregate
greenhouse gas emissions
reductions when choosing
JCM Model Projects

Aviation business
fuel-efficiency
initiatives

Introductionof eco-friendly
vehiclesRatio of fuel-efficient
aircraft assets

Gr

Seven aircraft models with highfuel efficiency compared withconventional models

Gr
Rate of electrified
vehicle use(EVs, FCEVs, PHEVs, HVs)

Breakdown

Unit

Seven domestic solar power
generation business companies
Total for Kyocera TCL Solar LLC
and six other companies

Billions of yen

13.3

14.7

18.4

%

68.6

80.2

81.6

Projected aggregate
greenhouse gas emissions
reductions

t-CO2

29,79534,54735,457

Ratio of fuel-efficient aircraft
assetsRatio of fuel-efficient aircraft
to all aircraft

%

31.3

40.4

45.7

Three auto businesscompanies
Nippon Car Solutions Co., Ltd.;
Nippon Rent-A-Car Service, Inc.;and Orico Auto Leasing Co., Ltd.

%

16.9

18.4

19.3

Ratio of purchase of Tokyo
Century-recommenced items

Items compliant with Act on Promotion of
Procurement of Eco-Friendly Goods andServices by the State and Other Entities

Changes to the Scope of Data Collection
The following changes to the scope of data collection were implemented in fiscal 2021 (see pages 3 and 4 for more information on the scope of data collection).
*1 The car rental service operations of 20 Nippon Rent-A-Car Group companies were included in the scope of data collection.
*2 Four solar power generation subsidiaries were included in the scope of data collection.
*3 Four aviation business subsidiaries and the Company’s shipping business were included in the scope of data collection.

− 24 −

Climate Change Response Strategy

Tokyo Century has identified climate change as one of the operational risks covered by its risk management system,
and we manage this risk as a non-financial risk. Climate change presents significant risks to Tokyo Century’sbusiness while also creating substantial business opportunities. Various initiatives are being advanced based on
this perspective.
Tokyo Century announced its endorsement of the recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD) in April 2021. In addition, based on a risk severity assessment related to climatechange, we have conducted scenario analyses in accordance with the TCFD recommendations for environment
and energy businesses (solar power generation, May 2021) and the aviation business (aircraft leasing, April 2022).
These scenario analyses used multiple scenarios to identify climate change-related risks and opportunities and toassess the potential qualitative and quantitative impacts on our business.
For more information on Tokyo Century’s response to climate change and endorsement of TCFD recommendations,please refer to the following website.
https://www.tokyocentury.co.jp/en/csr/environment/tcfd.html
Scenario Analysis of Environment and Energy Businesses (Solar Power Generation, excerpt)
Risk Severity Assessment

Climate-relatedrisks andopportunities

Definition of CountermeasuresScenario Analysis of the Solar Power Generation Business
https://www.tokyocentury.co.jp/download/pdf/en/csr/sa_solarpower_e.pdf− 25 −

Scenario Analysis of Aviation Business (Aircraft Leasing, excerpt)
Risk Severity Assessment

Climate-relatedrisks andopportunities

Definition of Countermeasures S cenario Analysis of Aircraft Leasing Business
https://www.tokyocentury.co.jp/download/pdf/en/csr/sa_aircraft_e.pdf

Reduction ofenvironmental
impacts

Environmental impact
assessments

Tokyo Century’s Management Philosophy and Basic Environmental Policy state that it
will contribute to the creation of an environmentally sound, sustainable economy andsociety. Contributing to the environment through our business activities is imperative
to accomplishing this goal. Accordingly, we began conducting environmental impact
assessments in fiscal 2019 using environmental impact assessment worksheets toevaluate and track the impact of individual projects on the environment.
It is important for the Company to take the environment into account in the investments
it conducts. For this purpose, we are expanding the scope of environmental impact
assessments, and in fiscal 2020 we started using the abovementioned environmental
impact assessment worksheets to evaluate the environmental policies of investment
candidates and the potential environmental impacts of their businesses.
Item

Unit

Number of environmental impact
assessment checks*

Fiscal 201920

Fiscal 2020
36

Fiscal 2021*
48* Figures for fiscal 2019 and fiscal 2020 only include projects in Japan. Trial overseas projects are included in the figure
for fiscal 2021.

− 26 −

Tokyo Century is conducting the following energy conservation initiatives on a Companywide
basis.

Reduction of Electricity Use

Companywide energy
conservation initiatives

Employees are asked to turn off their computer monitors when they are away from their seatsand to turn off lights in unused meeting rooms and during lunch breaks. We also encourage
employees to dress cooler in the summer and warmer in the winter to cut back on airconditioning use. In addition, we are working to reduce overtime hours through increased
operational efficiency. These are just some of our efforts for reducing energy use.

Reduction of Gasoline Use

Reductions in gasoline use from driving for business purposes are being pursued by improving
the fuel efficiency of business-use vehicles through eco-friendly driving techniques, utilizing
trains and rental cars, and employing telematics systems installed in business-use vehicles.

Reduction of Paper Use

We are reducing paper use by employing paperless applications and other documents andelectronic applications and by holding paperless meetings through the utilization of thin-clientcomputers and tablets.

Reduction ofenvironmental
impacts

Tokyo government’s
global warming
response plan system

Tokyo Century’s head office (FUJISOFT Building) qualifies as a specified tenant as definedby Tokyo ordinances. For this reason, we have submitted a specified tenant global warming
response plan to the Tokyo government.
The names of specified tenants with an overall ranking of A or above are disclosed
as excellent business operators. On the six-level ranking scale (C–S), Tokyo Century has
consistently received an AA ranking, indicating that we are a tenant implementing superiorenergy conservation initiatives and systems.
For more details, please refer to Tokyo’s list of disclosed tenants.

Tokyo Bureau of Environment

Evaluations and list of global warming response measures of specified tenants can be found via
the link below (in Japanese only).
https://www.kankyo.metro.tokyo.lg.jp/climate/large_scale/tenant/tenant_karte.html

Environmental Market Opportunities

Energyconservation
subsidy services

Environmentrelated
financial
products

Financialservices
contributing
to socialsustainability
Corporate
power purchaseagreements(in-house
generation support
services)Tokyo Century uses various subsidy programs to help customers introduce cuttingedge equipment that help to lower their environmental impacts. The resulting
reductions in lease payments effectively drive the spread of low-emissions
equipment, thereby helping preserve the environment while supporting small to
medium-sized companies in achieving carbon-free operations.

Major Subsidy Programs• ESG lease subsidization program for contributing to a carbon-free society• Cutting-edge energy-saving investment support subsidy• Advanced factory and workplace decarbonization support programs

In June 2022, Kyocera Corporation, KYOCERA Communication Systems Co.,
Ltd., and Tokyo Century launched a donation-oriented corporate power purchaseagreement (in-house generation support) service as a new initiative for contributing
to the accomplishment of the SDGs.
This service will use a framework in which the initial investment andmaintenance costs and work will be handled by KYOCERA Communication
Systems and Tokyo Century in order to supply customers with options for corporate
power purchase agreements (in-house generation support) that allow them tointroduce solar power generation systems with no upfront investment. Moreover,the service supplements conventional corporate power purchase agreement
contracts with donations to public welfare organizations and NPOs that contributeto accomplishment of the SDGs. Customers that introduce solar power generation
systems through this service are able to designate the organization of their choice
to receive a donation of a portion of the revenues of Tokyo Century.
For more information, please refer to the following press release (in Japanese only).
https://ssl4.eir-parts.net/doc/8439/tdnet/2150317/00.pdf− 27 −

Overview

In October 2018, Tokyo Century procured ¥10.0 billion through the issue of green
bonds (unsecured bonds) in the form of a domestic public offering. The procured
funds were allocated to the leasing of solar power generation equipment byconsolidated subsidiary Kyocera TCL Solar LLC.

Green bonds

For more information, please refer to the following press release.
https://www.tokyocentury.co.jp/_cms/wp-content/uploads/2018/10/181005_
Announcement-on-the-Issuance-of-the-25th-and-26th-Series-of-Unsecured-Bonds.
pdf

Third-Party Assessment Concerning ComplianceA second opinion regarding the green bonds was received through an R&I Green
Bond Assessment by Rating and Investment Information, Inc. (R&I), indicating thatthe green bonds complied with the Green Bond Principles 2018 and Green Bond
Guidelines 2017 of the Ministry of the Environment.
For more information, please refer to the following website.
https://www.r-i.co.jp/en/rating/esg/greenfinance/index.html
Overview
Since concluding its first sustainability-linked loan contract in March 2021,
Tokyo Century has proceeded to procure a total of ¥213.5 billion through six
sustainability-linked loans (as of March 31, 2021). Sustainability-linked loans
entail setting sustainability performance targets linked to sustainability goals.
Borrowing conditions are then determined based on performance with regard to thesustainability performance targets in order to encourage economic activities andgrowth founded on environmental and social sustainability.

Greenmechanisms

Environmentrelated
financial
products

Sustainabilitylinked loans

Third-Party Assessment Concerning Compliance
Third-party assessments were received from either R&I or Japan Credit Rating
Agency, Ltd. indicating the compliance of all of the Company’s sustainability-linked
loans with sustainability-linked loan guidelines, including those of the Ministry of
the Environment, and confirming the rationality of the sustainability performancetargets.
The following sustainability performance targets were chosen based on Tokyo
Century’s materiality key issues of “Contribution to decarbonized society” and“Enhancement of work environment, leading to strengthening of human resources.”• Annual power generation volume and CO2 emissions reductions associated with solar
power generation business of Kyocera TCL Solar LLC• Accomplishment of targets for aggregate greenhouse gas emissions reductions whenchoosing JCM Model Projects• Maintenance of status as DX-certified operator under the DX Certification systemorganized by METI
• Annual paid leave acquisition rate of 70% or more
• Rate of childcare acquisition by male employees of 100%

For more information, please refer to the press release available on Tokyo Century’s
corporate website (in Japanese only).
https://www.tokyocentury.co.jp/jp/ir/

Projects forrealizing adecarbonizedsociety

JCM system

The Joint Crediting Mechanism (JCM) system facilitates the diffusion of Japan’s
superior decarbonization technologies to partner countries with support in theform of subsidies for part of the installation costs toward contributing to theestablishment of sustainable social infrastructure and in the form of reduced
greenhouse gas emissions in these partner countries. At the same time, the systemallows for the crediting of some of the reduction in greenhouse gases under Japan’semissions.
Tokyo Century has engaged in 10 projects in four countries that have been
selected for the JCM system (as of March 31, 2022).
Two of the projects undertaken in fiscal2021 were recognized under the new
JCM Eco Lease Scheme, which Tokyo Century was involved in designing.
For more information, please refer to the following website.
https://www.tokyocentury.co.jp/en/csr/csr/social.html
TargetProjected aggregate
greenhouse gas emissions
reductions when choosing
JCM Model Projects− 28 −

Unit

2021

2022

2023

2024

2025

t-CO2

39,00045,00049,00053,00056,000SUSTAINABILITY DATA BOOK 2021

SocialHuman Rights

Tokyo Century Group Human Rights Policy

We are mindful of corporate social responsibility, offer high expertise and a wide range of unique financial services
by leveraging our flexible business domain, and have set out in our management philosophy that we will contributeto the creation of an environmentally sound, sustainable economy and society that enables economic development
through the effective use of resources.
We have formulated this Human Rights Policy in accordance with our management philosophy and promoterespect for human rights throughout our business activities. Recognizing respect for human rights as a key issue,
we will cultivate a corporate culture that allows diverse human resources to fully demonstrate their skills andindividual characteristics to become a company where all officers and employees can hone their expertise andexperience growth as well as a sense of pride.
1. Scope
This Human Rights Policy applies to all officers and employees of the Tokyo Century Group. We expect all of our
stakeholders, including customers and suppliers of Group companies, to respect human rights.
2. Affirmed international standards
We endorse and have signed the United Nations Global Compact. We also refer to the International Bill of
Human Rights (Universal Declaration of Human Rights and International Covenants on Human Rights), the UN
Guiding Principles on Business and Human Rights, and the ILO Declaration on Fundamental Principles andRights at Work* in implementing initiatives for respecting human rights.
* Freedom of association and the right to collective bargaining, elimination of all forms of forced or compulsory labor, the effective abolition of childlabor, elimination of discrimination in respect of employment and occupation, and equal remuneration for work of equal value

3. Legal compliance
We comply with the relevant laws and regulations in each country or region where we operate. Where there isa conflict between internationally recognized standards and regional laws or regulations, we will find a way torespect international standards.

Policies

4. Where the policy stands
This Human Rights Policy was established after deliberation by the Management Meeting followed by approvalby the Board of Directors.
5. Human rights of all officers and employees
We respect the human rights of all officers and employees and strive to create a vibrant, rewarding working
environment where everyone’s human rights and human dignity is respected. Furthermore, we promote diversity
and inclusion in accordance with the separately established Basic Diversity Policy and foster a corporate culturethat enables diverse talent to thrive in an environment free from discrimination based on race, religion, gender,
age, sexual orientation, disability, and nationality.
6. Human rights due diligence
We recognize that our businesses and services have the potential to cause or contribute to adverse impacts
on human rights in any domain, and we conduct appropriate due diligence to prevent or mitigate such impacts
associated with our business activities.
7. Remedy
If we find that our business has caused or contributed to adverse impacts on human rights, we will strive toprovide a remedy to those affected.
8. Dialogues with stakeholders
We will conduct dialogues with stakeholders on our human rights initiatives.
9. Communication and education
We engage in communication and education to ensure that all officers and employees understand theimportance of respecting human rights and that the Human Rights Policy is incorporated in all aspects of ourbusiness activities. Additionally, we will conduct compliance-related training to confirm that we will not tolerate
any discrimination or harassment and that our officers and employees will fully comply with related laws.
10.Information disclosure
We strive to ensure that shareholders understand our initiatives based on the Human Rights Policy by disclosing
information on our website and other media.

− 29 −

The following provisions related to respect for human rights can be found in Tokyo Century’s Corporate Code of
Conduct and Our Action Guidelines.

Corporate Code of Conduct
Corporate Code of
Conduct and Our
Action Guidelines(human rights)• Respect for Human Rights

The Tokyo Century Group respects the human rights of all people and promotes diversity to nurture a corporate
culture that encourages personnel with diverse characteristics to thrive.

Our Action Guidelines• We will respect human rights and human dignity and create a rewarding working environment.

We will respect our mutual human rights and human dignity and strive to create a vibrant, rewarding working
environment where discrimination and harassment have no place.

Signing of the United
Nations Global
Compact

Tokyo Century is a signatory to the United Nations Global Compact and endorses the compact’s Ten Principles* inthe four areas of human rights, labour, environment, and anti-corruption. Through ongoing efforts to live up to theseprinciples, we aim to contribute to the creation of an environmentally sound, sustainable economy and society.
* The Ten Principles of the United Nations Global Compact are based on the Universal Declaration of Human Rights, the ILO Declaration on
Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development, and the United Nations Convention against
Corruption.

All officers and employees submit a Compliance Confirmation Form each year, pledging their commitment to the
Corporate Code of Conduct and Our Action Guidelines, which include our human rights policies. In addition, theCompliance Handbook, which is available in Japanese, English, and Chinese, is distributed to all domestic andoverseas officers and employees to promote further awareness regarding and understanding of human rights. We
also conduct the following training and educational activities to foster awareness of respect for human rights.

Human rights training
and educational
activities

TargetMajor Themes

All officers and employees■ Human rights risks in business activities, business and human rights, and humanrights initiatives■ Prohibition of harassment (sexual harassment; abuses of power; harassment
for pregnancy, childbirth, childcare leave, family care leave, etc.; harassment
associated with teleworking)Members of divisions and branch offices(individual workplaces)

Prohibition of harassment, related laws and regulations, prevention guidelines, basic
stance on prevention of occurrence, etc.

Staff responsible for human rights at
Group companies

Basic knowledge of human rights

System for addressing
human rights
violations (grievancemechanism)

As a means of addressing real or perceived compliance violations, including harassment and human rights
violations, the Tokyo Century Group operates an internal reporting system available to all officers and employees at
Group companies in Japan and overseas (directors, executive officers, employees, contract employees, temporary
employees, seconded employees, part-time employees, and others), as well as to former employees up to a year
after their resignation. Moreover, we make the utmost effort to ensure the anonymity of whistleblowers andmaintain the confidentiality of their reports, and we will take remedial measures for victims in cases where humanrights violations are proven through investigations into the cases reported.
We conduct an annual compliance survey of all officers and employees, which features questions regarding humanrights violations and other compliance concerns, and conduct hearings depending on the content of the responses
to prevent problems from occurring.

Human rights due
diligence

We plan to implement a PDCA cycle starting in fiscal 2022 to analyze, identify, and evaluate the negative humanrights impacts associated with the Tokyo Century Group’s business activities and take corrective action to preventor mitigate such impacts. Accordingly, we are engaged in discussions with a specialized external organization on
the specific human rights issues we should consider based on the characteristics of our business.

− 30 −

Diversity

Basic Diversity Policy

The Tokyo Century Group will work alongside customers in pursuit of their growth as a highly specialized and uniquefinancial services company and further expand its business domains and develop its global business. We will
promote diversity to enable employees with diverse capabilities and personalities to demonstrate flexible thinking
and dynamic action to better serve the varied needs of our customers by consistently providing services with high
1. Nurturing Our Corporate Culture
Each employee will understand the importance of diversity and nurture a corporate culture that encourages
personnel with diverse characteristics to thrive.

Policies

2. Promoting the Active Participation of Diverse Human Resources
We will promote the hiring, development, and appointment of human resources from diverse backgrounds,
regardless of race, religion, gender, age, sexual orientation, disability, or nationality.
3. Supporting Career and Ability Development
We will support the career and ability development of each employee to encourage them to fully demonstrate
their ability and individuality.
4. Enhancing Work–Life Balance
We will enhance support for balancing work and private life so that each employee can work flexibly as
appropriate to their life circumstances.

Promotion system

The Diversity Promotion Office has been established within the Personnel Division to plan and promote
Companywide diversity initiatives.
Diversity training is conducted to foster greater understanding of diversity among all officers and employees. Topics
related to diversity are incorporated into basic onboarding training for new-graduate and mid-career hires, anddiversity-related e-learning programs are administered to all officers and employees. In addition, diversity seminars
are arranged at which external instructors are invited to hold lectures and lead discussions.
TargetDiversity training

Support for the
LGBTQ+ community

TopicsAll officers and employees

Basic diversity knowledge, fostering of understanding regarding diversity
Diversity promotion and management strategies
Tokyo Century’s Basic Diversity Policy
Flexible workstyles
Balancing of work and long-term care for family members and Tokyo Century’s
support systems
Understanding of the LGBTQ+ community

Female employees

Fostering of understanding regarding diversity
Women’s career development
Understanding of importance of viewing issues from a broader perspective
Development of action plans for addressing issues

Employees with up to nine years ofservice (rank-based training)

Workstyle reforms (high-productivity workstyles)

Non-Japanese staff

Fostering of mutual understanding and enhancement of communication

The Tokyo Century Group distributes its Compliance Handbook to all officers and employees. This handbook
clearly indicates our stance against all forms of harassment, including sexual harassment, abuse of power, andthe negative treatment of women in relation to pregnancy or child-rearing. It also describes our prohibition of
discrimination of members of the LGBTQ+ community. Factual awareness in this regard is promoted throughconcrete examples, and training is conducted for all officers and employees to foster an accurate understanding of
the LGBTQ+ community.

− 31 −

Promotion of active
participation of global
human resourcesTokyo Century has expanded its overseas network to more than 30 countries and regions around the world throughan alliance strategy in collaboration with prime local partners overseas. As developing global human resources
is essential for its continued growth, Tokyo Century continues to proactively hire non-Japanese employees withthe aim of developing and appointing diverse human resources who thrive around the globe. In addition, Tokyo
Century is working to develop human resources who can play an active role globally in the future by establishingan international course for new graduates and actively promoting an overseas trainee system and overseas
assignment for junior employees.
Tokyo Century seeks talented individuals from an extensive array of backgrounds and actively employs people withdisabilities in order to provide a workplace where highly motivated people can flourish. The Company also meetsthe requirements for the ratio of employees with disabilities, as established in the Act to Facilitate the Employmentof Persons with Disabilities. (Non-consolidated ratio of employees with disabilities of 2.86% as of June 1, 2022)

Employment of people
with disabilities

As an effort to further promote the employment of people with disabilities, in April 2019 Tokyo Century hired six
staff members (people with mental disabilities) and opened the TC Work Happiness Farm in Funabashi City, Chiba
Prefecture, with two teams. In conjunction with the expansion of this plantation, Tokyo Century hired an additional
three people with disabilities in February 2021, and this plantation is thus currently operated by three teams fromthe Company.
The meaningfulness of the operating the plantation at the TC Work Happiness Farm has been communicatedthroughout the Company and more than 20 Group companies, and we have shared our experiences at theplantation across the Group. This sharing prompted four teams from two Group companies to take part in theplantation, which is now staffed by seven teams consisting of a total of 21 individuals from throughout the Group.
The TC Work Happiness Farm provides a secure and fulfilling working environment for people with disabilities on
a long-term basis. Specifically, the plantation grows vegetables in a farm house designed under the motto of safety
and cleanliness and donates the harvested vegetables to the Second Harvest Japan (2HJ) as part of our social
contribution activities.
2HJ was established in March 2002 as Japan’s first food bank. A food bank is a charitable organizationthat distributes food to those who are going hungry. 2HJ redistributes a variety of food donated from food
manufacturers, wholesalers, farmers, and individuals that would normally be disposed of, despite still being edible,
to welfare agencies, orphanages, and women’s shelters; people with disabilities; impoverished individuals; andothers in need. Furthermore, 2HJ carries out relief activities in response to the needs in the regions struck by the2011 Great East Japan Earthquake, the 2016 Kumamoto Earthquake, and other natural disasters.
Based on the Act on the Promotion of Female Participation and Career Advancement in the Workplace, Tokyo
Century empowers its female employees and has drawn up an action plan designed to enable each and every
employee to work flexibly and in a diverse number of ways.

Action Plan for the Promotion of Women’s Active Participation*1
Plan Period

Empowerment offemale employees

Quantitative Targets

April 1, 2016–March 31, 2023

• Increase the percentage of women among new hires to atleast 30%
• Increase the percentage of women in management
positions to at least 30%• Increase the percentage of childcare leave acquisition by
men to 100%
• Increase the percentage of annual paid leave acquisition
to at least 70%*1 This plan has been disclosed through the Ministry of Health, Labour and Welfare’s database of companies actively empowering female employees(in Japanese only).
http://positive-ryouritsu.mhlw.go.jp/positivedb/detail?id=985

Tokyo Century established its Action Plan on the Promotion of Women to Officer and Management Positionsin October 2014 in order to steadily increase its number of female officers and managers through the active
employment, training, and promotion of highly motivated and talented women.

Action Plan on the Promotion of Women to Officer and Management Positions*2
Promotion of women
to management andofficer positions

Targets• Increase the percentage of women among new hires to at least 30%• Increase the percentage of women in management positions to at least 30%

Furthermore, in order to ensure that all employees can work comfortably through every stage of life, we arecontinuously striving to reform our workplace culture, support career and ability development, and enhance andpromote the use of systems that aid in balancing work and private life.
(Two female directors and 55 female managers, making for a ratio of women in management positions of 11.4%,
as of July 1, 2022)*2 The Action Plan on the Promotion of Women to Officer and Management Positions is also disclosed on the website for Keidanren (Japan Business
Federation) (in Japanese only).
http://www.keidanren.or.jp/policy/woman/ap10425.html− 32 −

Human Resource Utilization

Careerdevelopment

Tokyo Century believes that personnel are its greatest assets and the driving force behind its the sustainablegrowth. Accordingly, in order to encourage each and every employee to demonstrate their abilities and individuality,
we support voluntary career and skills development and conduct various training programs.

Types of Training

Training for junior employees by year of employment, management training, career design training, global humanresource cultivation (external training, overseas trainee dispatch), etc.

Promotion system

To support employees in developing their careers throughout their professional lives, Tokyo Century has established
the Career Design Office within the Personnel Division to help employees be the principal proponent in planning,
designing, and developing their careers. In addition, Tokyo Century provides helpdesks for employees of specificage groups that can be used for training, interviews, or voluntary training as part of its efforts to support employee
career development.

Skills development
supportTokyo Century aids employee learning through a bonus system for employees who have completed distancelearning courses and through a subsidy system for employees who have obtained qualifications relevant to theirwork.

360° evaluations

We implement 360° evaluations that aim to foster the development of section managers and which emphasizeorganizational management, with a focus on smooth workplace relationships.

Career Challenge
Program

The Career Challenge Program is an internal recruitment system designed to provide employees with opportunities
for charting their own career course.

TC Biz Challenge
Project

The TC Biz Challenge Project is a new business proposal system designed to assist employees in proactively
chasing their ambitions. In the first iteration of this project, 36 proposals were received, and verification tests havebeen commenced aimed at the commercialization of one of these proposals.

Employeeengagement surveys

Tokyo Century aims to create an environment in which individuals can fully demonstrate their talents based on
mutual respect. To facilitate the creation of such an environment, we administer employee engagement surveys.
The results of these surveys are analyzed to identify issues and shape future initiatives, and this information isincorporated into officer training and discussed on an ongoing basis by the Management Meeting and the Boardof Directors so that issues can be addressed as top management priorities. At the same time, Tokyo Century isdeveloping workplace environments that are conducive to the enhancement of our human resource capabilities inpursuit of ongoing improvements in employee engagement, and regular reports are issued to the Board of Directors
with regard to the progress of these activities.

Based on the results of its first employee awareness survey, Tokyo Century has introduced the Career Challenge
Program*1 and the TC Biz Challenge Project*2 to further improve employee engagement. The results of the second
employee awareness survey will also be analyzed to facilitate effective measures going forward.

Improvementof Employee
Engagement− 33 −

Tokyo Century promotes work–life balance so that all employees can work flexibly to suit their life circumstances.

Major Work–Life Balance Support Systems
Targets

Childbirth andchildcare

Work–life balance
supportNursing

SystemPeriodPre-childbirth leave

Six weeks prior to childbirth

Post-childbirth leave

Eight weeks after childbirthChildbirth leave for fathers

Four weeks during first eight weeks after childbirthChildcare leave

Until child reaches the age of two years and six months

Special leave to visit a hospital,such as for physical examinations

Until one year after pregnancy and childbirth (only days required)

Special leave for childbirth by a
spouseOne month prior to childbirth until two weeks after childbirth(five days in total)

Nursing leave

Until child starts elementary school (five days per year per child;leave should be taken per day, half a day, or hour)

Exemption from overtime

Until child reaches the third year of elementary school

Bringing forward of work start/end
time

Until child reaches the third year of elementary school (up to two hours)

Pushing back of work start/end time

Until child reaches the third year of elementary school (up to two hours)

Shortened working hours

Until child reaches the third year of elementary school(up to 75-minute reduction)

Family care leave

Up to one year in total (the number of applications is not limited)

Nursing leave

Up to five days per family member who is under care; leave should be taken
per day, half a day, or hour

Exemption from overtime

Until the care for the family member in question ends

Bringing forward of work start/end
time

Three years from the start date (up to two hours, but the number ofapplications is not limited)Pushing back of work start/end timeThree years from the start date (up to two hours, but the number ofapplications is not limited)

Shortened working hours

Three years from the star t date (up to two hours, but the number ofapplications is not limited)

Family Day

Tokyo Century holds Family Day events in which employees’ children are invited to their parents’ workplace during
their school summer holidays, as part of our initiatives to promote diversity. The purpose of these events is tofurther motivate the employees of the Tokyo Century Group in their work and to promote CSR and work-life balance.

Working Mothers’ and Fathers’ Community

At Tokyo Century, we organize periodical lunch roundtable discussions for parent employees to network among
themselves to exchange information on managing work while raising children as part of our support for parent
employees with childcare.

− 34 −

Tokyo Century formulated the following Work Style Reform Action Plan* on March 30, 2018. Through the plan,
Tokyo Century will promote employees’ physical and mental health in order to achieve higher productivity and allow
individual employees to adopt diverse, flexible workstyles and to accelerate its business and corporate growth.

1. Reduction of Long Working Hours
KPI (Numerical Target, Time Limit)• Maintain average monthly overtime working hours below 10 hours

Action Plan
• Strictly control employees’ working hours through management of prior application and approval for overtime work,in order to raise employees’ awareness of time management to make the most of their time to achieve maximum
output• Encourage employees to leave the Company basically on time in summer (July and August), in order to promote
their self-development and physical and mental health

2. Promotion of Annual Paid Leave Acquisition
KPI (Numerical Target, Time Limit)• Keep the percentage of annual paid leave acquisition over 70%

Workstyle reforms

Action Plan
• Encourage employees to take annual paid leave in a planned manner from the beginning of fiscal years, including
consecutive days of leave for summer vacation, for the year-end and New Year holiday, and before and after
weekends or national holidays• Encourage employees to take hourly paid leave• Utilize internal annual leave calendar to allow employees to schedule and take annual paid leave in a planned
manner from earlier in each fiscal year

3. Promotion of Flexible Workstyles
KPI (Numerical Target, Time Limit)• Increase the percentage of childcare leave taken by men to 100% by March 31, 2023
• Achieve a nursing care turnover rate of zero by March 31, 2023

Action Plan
• Encourage the taking of childcare leave among male employees and their superiors and introduce male employees
who have taken childcare leave along with their superiors in internal magazine and via other means• Provide nursing care handbook on the intranet and conduct training to cultivate understanding of nursing care inorder to help employees continue working by balancing work and nursing care
* The Work Style Reform Action Plan is also disclosed on the website for Keidanren (Japan Business Federation) (in Japanese only).
http://www.keidanren.or.jp/policy/wlb/actionplan.html

Excessive overtime
prevention andwork–life balance
supportTokyo Century promotes work streamlining and strives to improve work–life balance through such means as
ensuring sufficient time for self-development, family, and friends by reducing overtime hours. Particularly during
summer (July–August), a time when the government urges electricity conservation, Tokyo Century encourages
employees to leave the office on time and to dress cooler, in order to cut back on air-conditioner use.
In addition, based on the Labor Standards Act, Tokyo Century has concluded an Agreement on Overtime Workand Working on Holidays (so called “36 Agreement”) with its labor union.
In relation to other working conditions, Tokyo Century complies with the Labor Standards Act. Tokyo Century fullycomplied with the act throughout fiscal 2021, and no penalties were imposed.
Complying with the laws of each country of operation, the Tokyo Century Group pays a living wage that exceeds
the legally mandated minimum wage and does not practice unreasonable wage reduction.

− 35 −

Health and Productivity Management

Basic Policy on Health and Productivity Management
Tokyo Century will work alongside customers in pursuit of their growth as a highly specialized and unique financial
services company and will contribute to the creation of an environmentally sound, sustainable economy andsociety. Under this management philosophy, we intend to achieve further growth and increase our corporate value
by promoting partnership strategies to continue creating new businesses. To this end, it is important to develop an
environment in which all of our human resources, who represent our greatest assets, can work vigorously in good
health, both physically and mentally, and fully demonstrate their individuality and all their abilities. We therefore
strive to maintain and improve the well-being of our officers and employees and their families with the recognition
that health management is a corporate management issue.

Policies

1. Fostering health awarenessWe will provide information on mental and physical well-being and support the self-sustaining efforts of each
officer and employee to foster awareness of prioritizing health.
2. Identifying health issues
We will strive to understand issues identified from the results of physical checkups and stress checks.
3. Health management and measures
We will take action to improve and rectify each health issue and properly manage health-related information.
4. Supporting the balance between work and treatment of disease
We will promote initiatives for preventing and detecting diseases at an early stage while supporting the balance
between work and treatment of disease.

Health and Productivity Management Initiatives
1. Fostering health awareness(1) Collaborate with health insurance associations to help form sound habits by providing applications thatencourage healthy activities(2) Establish a basic policy on health and productivity management and publicly disclose health management
initiatives both inside and outside the Company(3) Work with industrial physicians and occupational health nurses to continue to provide information throughe-learning and other means to raise health awareness(4) Introduce a basic policy for affiliated companies to share information on the details of health management
initiatives(5) Disseminate information on said initiatives both internally and externally through our corporate website
2. Identifying health issues(1) Conduct regular physical checkups, aiming for 100% participation(2) Implement stress checks, aiming for 100% participation(3) Disclose the results of regular physical checkups and stress checks both internally and externally

Health and productivity
management
initiatives

3. Health management and measures(1) Provide specific health guidance to officers and employees diagnosed with metabolic syndrome through regular
health check-ups(2) Provide opportunities to see industrial physicians for employees who have been diagnosed with high stress via
stress checks(3) Establish and publicize a health consultation service offered by the Human Resources Department, industrial
physicians, and occupational health nurses for employees to consult about their mental and physical healthconcerns or questions(4) Properly manage the working hours of all employees to prevent long working hours(5) Recommend that employees telework, stagger their working hours, or take hourly leave to prevent COVID-19
infections(6) Subsidize the cost of medical examinations for officers and employees identified as needing a re-examination
or more thorough examination through regular health check-ups(7) Set KPIs to improve dietary habits and reduce smoking rates and release the results both internally andexternally
4. Supporting the balance between work and treatment of disease(1) Recommend that employees telework, stagger their working hours, or take hourly leave so they can continue towork while receiving treatment for disease(2) Establish and help with a return-to-work support system for employees on mental health leave so they caneasily return to work(3) Adopt an orphans’ pension program to provide educational funds for the children of employees in the event ofdeath or severe disability so they can confidently work for their families without concern(4) Recommend and subsidize voluntary medical examinations such as complete medical checkups and cancer
exams to detect and treat diseases at an early stage(5) Expand the special reserve leave system to help employees continue to work insofar as possible while
undergoing infertility treatment− 36 −

Social Contribution Activities

Leave system forvolunteer activities

In 2009, Tokyo Century introduced a system that can be used by employees to acquire special leave for volunteer
activities that fall into one of the following four categories: 1. Environmental preservation activities, 2. Community
outreach activities, 3. Social welfare activities, and 4. Other activities authorized by the Company.
Tokyo Century offers relief to the victims of large-scale natural disasters, such as the 2016 Kumamoto Earthquake
and the 2020 Kyushu floods, in the forms of monetary donations and free car rentals. In addition, we donateddesks and chairs that were left over following the renovation of our head office to elementary schools that suffereddamages due to Typhoon Hagibis (Marumori Town, Miyagi Prefecture, and Koriyama City, Fukushima Prefecture) in
2020 so that they could be put to good use.

Disaster relief

Tokyo Century donated a set of disaster stockpiles for 1,274 people that had been stored at its head office, in
accordance with the Tokyo Metropolitan Ordinance on Measures for Persons with Difficulty Returning Home,
to a total of eight food bank organizations nationwide through Kuradashi Co., Ltd., which operates the social
contribution shopping site KURADASHI. These disaster stockpiles were distributed to underprivileged households,
welfare facilities, refugee support groups, and other institutions through the respective food bank organizations to
be used for good purposes.
Meanwhile, the Mobility & Fleet Management segment has been expanding its electric vehicle (EV) initiatives.
One facet of these efforts is supplying business continuity products that utilize EVs as a source of emergency
power. This approach has already been used to support post-disaster reconstruction, as we supplied such EVs to
Chiba Prefecture during a prolonged blackout resulting from Typhoon Faxai in 2019. These EVs were used as an
emergency power source for social welfare facilities.
Furthermore, Tokyo Century is supporting the Great East Japan Earthquake Reconstruction Support–Coastal Forest
Restoration Project through ongoing donations to OISCA (The Organization for Industrial, Spiritual and Cultural
Advancement-International).

Disaster
preparedness
measures

Contributions
through shareholder
incentive systems

Tokyo Century was named a model company in Tokyo for limiting instances of all employees leaving work at thesame time during a natural disaster in fiscal 2021.
This honor was bestowed on Tokyo Century and eight other companies among the 32 companies certified under
the respective system to recognize the highly effective and influential initiatives of these companies.
For more information, please refer to the following website (in Japanese only).
https://www.bousai.metro.tokyo.lg.jp/kitaku_portal/1000048/1006510/index.html
As a form of contribution through its shareholder incentive systems, Tokyo Century donates an amount equivalent
to 5% of the value of shareholder incentives (Quo Card prepaid cards) each fiscal year to organizations engaged
in social contribution activities. In fiscal 2021, Tokyo Century donated amounts equivalent to 2.5% of the value ofshareholder incentives to the Japan Service Dog Association, which is engaged in the training of service dogs, andto the Japan Rescue Association, which facilitates the training and deployment of disaster search dogs.
The Tokyo Century Group takes part in the education of the next generation around the world through pro bono andother activities.

Support for
education of thenext generation

Initiatives in Japan• Dispatch of employees as lecturers to teach universities’ industry research seminars (finance, leasing, etc.) and career
design and other seminars• Internship programs for junior high school students

Overseas Initiatives• Arrangement of financial literacy lectures for elementary and high school and university students in Indonesia, etc.

Another part of our efforts to support the education of the next generation is the provision of children’s reading
subsidies and the promotion of digital library services through donations to the ITOCHU Foundation.

Support for sports

Tokyo Century’s sports support activities include acting as an official sponsor for the KAWASAKI FRONTALE J.League
soccer team. In addition, we offer special sponsorship to the 12th annual Fukushima Prefectural swimming clubcompetition, an event aimed at improving the swimming skills of children in Fukushima Prefecture ranging fromelementary school to high school students.

Support for the arts

The Company maintains a corporate membership to the Mitsubishi Ichigokan museum as part of its efforts to
support the arts.
In addition, we are supporting cultural activities through ongoing donations to the Shibusawa Eiichi Memorial
Foundation, among other initiatives.
Tokyo Century Group officers and employees take part in clean-up activities as part of our efforts to coexist inharmony with local communities.

Clean-up activities,
etc.

Activities in Japan E arly morning volunteer clean-up activities around our head office (Chiyoda Ward) andOkachimachi office (Taito Ward)
Overseas Activities P articipation in coral reef preservation and coastal clean-up activities at beach located insidenaval base by employees of Thailand subsidiary and other voluntary clean-up activities inoverseas countries of operation
For information on other CSR topics, please refer to the following website.
https://www.tokyocentury.co.jp/en/csr/topics/− 37 −

Human Resource Data

KPI

TC

Ratio of women among new-graduate hires

Ratio of women among newly hired employees(including mid-career hires)

Target(Target year)
At least 30%(Fiscal 2023)−

Subcategory

Fiscal 2019

Fiscal 2020

Fiscal 2021

Women

8

4

9

Total of men and women

16

13

17

Ratio of women

50.0%

30.8%

52.9%

Career track employees

21.4%

12.1%

23.8%

Administrative employees

100.0%−

100.0%

Contractors

11.1%

50.0%

100.0%

Total

22.6%

17.9%

28.9%

Career track
employees

11.0 years

11.2 years

11.2 years

Administrative
employees

17.8 years

18.8 years

19.6 years

Total

15.9 years

16.6 years

17.1 years

Career track
employees

17.3 years

17.3 years

17.3 years

−

−

−

Total

17.3 years

17.3 years

17.3 years

Women

36

42

45

Total of men and women

454

460

466

Ratio of women

7.9%

9.1%

9.7%

Career track employees

15.2 hours

14.9 hours

16.5 hours

Administrative employees

2.7 hours

3.2 hours

2.6 hours

Total

Women

Average years of continuous employment by gender(as of March 31 of each fiscal year)−

Administrative
employees

Men

Ratio of women in management positions (as ofMarch 31 of each fiscal year)

Average overtime hours per month(labor outside legally designated hours)

At least 10%(Fiscal 2023)−

10.2 hours

10.2 hours

11.2 hours

Career track
employees

68.8 times

167.5 times

72.1 times

Administrative
employees

193.5 times−

1.0 times

Contractors

5.0 times

1.0 times

2.5 times

Total

84.3 times

96.1 times

55.9 times

Career track
employees

47.6 times

44.7 times

41.8 times

−

−

−

1.6 times

1.7 times−

38.6 times

40.6 times

42.3 times

Career track employees

1.4

3.8

1.7

Administrative employees

−

−

−

Contractors

3.1

0.6

−

Total

2.2

2.4

1.3

Career track employees

11.0%

11.3%

12.0%

Administrative employees

100.0%

100.0%

100.0%

Contractors

25.0%

24.3%

29.4%

Temporary staff

77.4%

81.3%

86.8%

Total

30.7%

30.6%

30.7%

Women

1.2%

0.7%

0.9%

Men

4.9%

3.7%

4.5%

Total

6.1%

4.4%

5.3%

Women

Ratio of successful job applicants by gender(including mid-career hires)−

Administrative
employees

Men

Contractors
Total

Ratio of men to women among new hires (including
mid-career hires)

Ratio of women among employees (as of March 31
of each fiscal year)

Employee turnover rate

−

−

−

− 38 −

Target(Target year)

Subcategory

Ratio of employees with disabilities(as of June 1 of each fiscal year)−

Rate of employees undergoing regular health check-ups
Rate of employees undergoing stress checks

KPI

TC

Ratio of continuous employment after 10 years bygender(Fiscal 2019: Newly hired employees between fiscal
2008 and fiscal 2010)(Fiscal 2020: Newly hired employees between fiscal
2009 and fiscal 2011)(Fiscal 2021: Newly hired employees between fiscal
2010 and fiscal 2012)

Fiscal 2019

Fiscal 2020

Fiscal 2021

−

2.93%

2.61%

3.22%

−

−

100.0%

100.0%

100.0%

−

−

97.0%

94.3%

98.6%

Career track
employees
Administrative
employees

45.8%

36.8%

37.5%

66.7%

62.5%

50.0%

Total

57.4%

48.6%

42.9%

Career track
employees
Administrative
employees

60.3%

53.7%

58.3%

−

−

−

Total

60.3%

53.7%

58.3%

Career track
employees
Administrative
employees

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

Total

100.0%

100.0%

100.0%

Career track
employees
Administrative
employees

100.0%

100.0%

100.0%

−

−

−

Total

100.0%

100.0%

100.0%

Career track employees

73.2%

71.4%

73.6%

Administrative employees

83.9%

76.5%

80.3%

Contractors

98.0%

77.7%

92.4%

Total

76.3% (14.6 days)

72.7% (14.0 days)

75.6% (14.5 days)

Women

101

113

115

Total of men and women

207

223

239

48.8%

50.7%

48.1%

Women

1

1

2

Total of men and women

43

43

42

Ratio of women

Women

−
Men

Women

Rate of childcare leave acquisition by gender

Rate of childcare
leave acquisitionby maleemployees 100%
(Fiscal 2023)
Men

Annual paid leave acquisition rate

Ratio of women in assistant manager position orequivalent

70%(Fiscal 2023)−

Ratio of women

Ratio of women officers

Occupational category and employment typechange data by gender

−

−

2.3%

2.3%

4.8%

Nationwide →
Tokyo

−

−

−

Tokyo →
Occupational Nationwide
category
Nationwide →changeAdministrative staff

−

−

−

−

−

−

Tokyo →
Administrative staff−

1 (woman)−

Temporary →Administrative staff−−

1 (woman)

Total

−

1

1

Women

4

3

4

Men

33

23

24

Total

37

26

28

Employment
type change

Re-employment and mid-career employment databy gender−

Diversity training data−

Number of e-learning programs

1

2

3

Career Challenge Program internal recruitment system data−

Number of relocations

−

14

13

Note: Launched in fiscal 2020

− 39 −

Engagement with Shareholders, Investors, and Customers

Basic Policy Regarding Information Disclosure
The Company will actively and consistently disclose its management strategy, status of business activities,
financial condition, and other information to shareholders, investors, and other stakeholders in a timely,
fair, and accurate manner.

Standards Concerning Information Disclosure
The Company will disclose information based on the Companies Act, Financial Instruments and ExchangeAct, and other laws and regulations as well as the Securities Listing Regulation defined by the Tokyo Stock
Exchange. In addition to information based on the above laws and regulations, we will disclose informationthat is useful for encouraging a clearer understanding of the Company. We may, however, withhold
information that is deemed inappropriate for disclosure based on due consideration.

Method of Information Disclosure

IR Policies

We will disclose information relevant to the Securities Listing Regulation based on designated proceduresby holding a briefing at the Tokyo Stock Exchange, after which the information will be disclosed throughthe exchange’s Timely Disclosure Network (TDnet) as well as to media organizations. Following disclosure,the information will be promptly made available on the Company’s website. From the perspective of timely
disclosure, we will also disclose other information not covered by the Securities Listing Regulation in an
appropriate manner.

Forward-Looking Statements
Forward-looking statements disclosed by the Company may include forecasts and outlooks. Suchstatements are based on the Company’s judgment as of the time the reference material was compiled. As
forward-looking statements involve risks and uncertainties, the Company cannot guarantee the accuracy
and results thereof.

Silent PeriodIR

To prevent leakage of financial information and to ensure fairness, the Company designates the period
between the settlement date and the reporting date, including those for quarterly disclosures, as a silent
period. During this period, the Company will, in principle, refrain from commenting or replying to queries
related to financial information. However, in the event that the Company expects any change, as defined by
the standards of the Securities Listing Regulation, to occur with regard to its current earnings forecast, theCompany will disclose such information as required in a timely manner, even during the silent period.
In principle, the Company issues dividend payments twice a year in the form of an interim and year-end
dividend.
Tokyo Century’s basic dividend policy is to provide stable, long-term returns to shareholders, and we are
pursuing increases in the payout ratio founded on continuous earnings growth.

Shareholder returns

Dividends per Share
Annual dividend
Payout ratio

Dialogue withinvestors

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

¥114

¥124

¥136

¥138

¥143

23.5%

25.1%

25.9%

34.2%

34.7%

● Institutional investors: More than 200 online meetings and teleconferences with domestic and overseas
institutional investors and sell-side analysts (including more than 40 meetings
with overseas institutional investors) as well as financial results briefings, small
meetings, etc.
● Private investors: Company briefings held online in fiscal 2021 in response to the COVID-19 pandemic− 40 −

The following provisions related to customer trust can be found in Our Action Guidelines.

Our Action Guidelines
Our Action
Guidelines(customer trust)• We will continue creating solutions that earn customer trust and recognition.

We will strive to resolve the issues faced by our customers by harnessing our high level of expertise andforesight to provide optimal products and services that earn their trust and recognition.

• We will stringently manage personal information and customer information.

We will stringently manage the personal information and customer information we obtain through ouroperations to prevent leakage outside the Company and use for unintended purposes.

Solicitation Policy for Financial Products
1. Legal Compliance
We will comply with social norms and with laws and regulations, including those governing the sale offinancial products and the Consumer Contract Act, and appropriately conduct business operations thatsatisfy our customers.

Solicitation Policy
for Financial
Products

2. Proper Solicitation
We will recommend appropriate financial products for customers based on their knowledge, experience,
purpose of purchase (investment), financial condition, and other considerations. When explaining our
products, we will endeavor to do so at a time and place and in a manner convenient for our customers.
3. Explanation of Important Matters
We will make every effort to provide explanations that enable our customers to fully understandimportant matters, such as the nature of the product and associated risks, so that they can exercise
their own judgment regarding the transaction.
4. Protection of Privacy
We will properly and strictly manage information related to our customers.
5. Education and Training
Our employees will strive to acquire and improve their knowledge and skills so as not to fall short of thetrust and expectations of our customers.

Customers

This is our solicitation policy based on Japan’s Act on the Provision of Financial Services.

Responsibilities to Customers
1. Policies and Basic Concept
The Tokyo Century Group, which is engaged in corporate activities centered on financial service
business in more than 30 countries and regions around the world, believes that resolving social andethical issues through its business activities will maintain sustainability and lead to further growth.
We will fulfill our responsibilities to customers by implementing education and training programs for
employees and further improving our management system to provide financial services tailored tocustomers’ needs.

Responsibilities tocustomers

2. Provision of Appropriate, High-Quality Products and Services
The Tokyo Century Group will comply with all laws, regulations, and rules and provide appropriate, highquality products and services to realize the development of our customers’ businesses. In addition,
we strive to earn the trust and recognition of our customers by conducting e-learning and othereducational and training programs on responsible business activities and compliance.
3. Responsible Advertising and Marketing
In accordance with the management philosophy, the Corporate Code of Conduct, and Our Action
Guidelines, the Tokyo Century Group engages in responsible advertising and marketing activities withdue consideration for social responsibility.
Through two-way dialogues with stakeholders, we will gain an understanding of the expectations andneeds of society and reflect them in our business activities.
4. Targets
To realize the development of our customers’ businesses, the Tokyo Century Group will provide
appropriate, high-quality products and services and build strong relationships of trust with its
customers.
We will implement employee training programs to provide appropriate, high-quality products andservices in a sustainable way.

− 41 −SUSTAINABILITY DATA BOOK 2021

GovernanceCorporate GovernanceManagement Structure

Basic policy

Tokyo Century recognizes that effective corporate governance is an important management issue to be addressedin order to maximize corporate value. We therefore strive to maintain a sound and highly transparent management
system that enables swift and accurate decision-making in response to changes in the operating environment. We
also work to enhance the soundness and transparency of corporate management through the implementation ofeffectively functioning internal control and risk management systems.
Tokyo Century’s management structure centers on the Board of Directors and the Board of Corporate Auditors. In
addition, an executive officer system has been introduced to accelerate management strategy decision-making andstrengthen supervision and operational execution systems.
The Company has two female directors among its 13 directors and one female officer among its 26 executive
officers (as of July 1, 2022).
Internal Control System and Corporate Governance System (as of July 1, 2022)

Internal control
system andcorporate
governance system

Corporate
Governance Report

Corporate Governance Report (Last Update: June 28, 2022) (239 KB)
https://ssl4.eir-parts.net/doc/8439/tdnet/2168514/00.pdf

The Board of Directors deliberates on and makes decisions about the policies, strategies, business plans, andother key management issues of the Company and Group companies as well as matters specified by prevailinglaws and regulations, the Articles of Incorporation, and rules governing the Board of Directors. It also supervises
the execution of operations by directors and executive officers.
Board of Directors
Chairperson

Number of Members (after Shareholders’ Meeting held in June 2022)

Meetings Held in Fiscal 2021

Koichi Baba
President & CEO,representative director

Directors: 13(including 5 external directors)

13− 42 −

The Board of Corporate Auditors meets regularly and executes independent and fair audits of the compliance andappropriateness of corporate activities, including the performance of duties by directors and executive officers.
Board of Corporate
Auditors

Chairperson

Number of Members (after Shareholders’ Meeting held in June 2022)

Futoshi Okada
Standing Corporate Auditor(External Corporate Auditor)

Corporate auditors: 4(including 2 external corporate auditors)

Meetings Held in Fiscal 2021
9

The Management Meeting deliberates on particularly important matters concerning the execution of operations
and makes decisions for the Tokyo Century Group.
Management Meeting

Chairperson

Number of Members

Koichi Baba
President & CEO,representative director

8

Meetings Held in Fiscal 2021
Once a week, in principle

The Transaction Evaluation Meeting discusses and makes decisions about major business transactions being
considered by Tokyo Century and Group companies as well as transactions that warrant complex risk analysis.
Transaction
Evaluation Meeting

Committees

Chairperson

Number of Members

Ko Nakagawa
Managing executive officer

8

Meetings Held in Fiscal 2021
Once a week, in principle

Meetings Heldin Fiscal 2021

Name

PurposeNomination Committee

As an advisory body to the Board of Directors primarily consisting of external directors, theNomination Committee deliberates on the nomination of candidates for director and corporate auditor
positions and reports to the Board of Directors.

8

Compensation Committee

As an advisory body to the Board of Directors primarily consisting of external directors, theCompensation Committee discusses matters such as director compensation systems and policies
and reports to the Board of Directors.

2

Internal Control
Committee

The Internal Control Committee discusses general internal control matters, including the evaluation of
the effectiveness of the financial reporting system and the scope of evaluation, in order to ensure theinternal control system functions effectively, and reports to the Management Meeting.

4Comprehensive Risk
Management Committee

The Comprehensive Risk Management Committee discusses matters such as the construction of
the risk management system and approaches to measuring risk while periodically assessing theCompany’s risk exposure and reporting to the Management Meeting.

4

Credit Risk Management
Committee

The Credit Risk Management Committee discusses matters including the Tokyo Century Group’s
credit portfolio as a whole and credit risk management and reports to the Management Meeting.

2

Asset Liability
Management Committee

The Asset Liability Management Committee discusses matters relevant to managing market, liquidity,
and other risks—in order to identify and minimize the exposure of assets and liabilities to risks, including
fluctuations in interest and foreign currency exchange rates—and reports to the Management Meeting.

4

IT and Administration
Strategy Management
Committee

The IT and Administration Strategy Management Committee discusses matters including the IT
strategies, IT investment plans, and administrative system plans of Tokyo Century and Group
companies and reports to the Management Meeting.

2

Sustainability
Committee

The Sustainability Committee reports important matters related to the Tokyo Century Group’s
sustainability activities to the Board of Directors; plans, promotes, and oversees said sustainability
activities; discusses important issues related to sustainability; and reports to the Management Meeting.

4

Investment Management
Committee

The Investment Management Committee facilitates appropriate investment management by deliberatingon matters related to the development and implementation of investment management structures andthe assessment of large-scale investment projects and reports to the Management Meeting.

9− 43 −

Director Skills Matrix (as of July 1, 2022)

Director skills
matrixPolicies andmethod for
determining officer
compensation

Policies for determining the amounts of compensation to be paid to individual directors are decided through deliberations
by the Board of Directors after consulting with the Compensation Committee, which primarily comprises external directors
designated as independent directors, and receiving advice from external experts.
Systems for director compensation are designed to raise directors’ awareness regarding the enhancement ofshareholder value by aligning the interests of directors with those of shareholders through healthy incentives to contributeto the ongoing growth of the Company and frameworks for linking compensation to the medium- to long-term developmentof its businesses. In addition, director compensation systems aim to attract outstanding talent in order to recruit andcultivate individuals who can drive the improvement of the Company’s corporate value.
Compensation policies, systems, and levels are decided by the Board of Directors based on consultations with andreports from the Compensation Committee.
Compensation systems comprise basic compensation, bonuses, and stock options provided as non-monetary,stock-based compensation. Basic compensation, which is fixed compensation, is determined through comprehensive
consideration of such factors as the duties, roles, and responsibilities of the recipient.
The compensation of directors responsible for operational execution comprises basic compensation as well as
performance-based bonuses and stock options provided as stock-based compensation. The payment ratio of basic
compensation and performance-based compensation is set at approximately 1.0:1.0–2.5 and is determined within thisrange by comprehensively taking into account achievements and performance based on each director’s expected duties.
The Compensation Committee discusses matters regarding the compensation of individual directors, including whether
said compensation adheres to the defined policies. The president &CEO then decides individual compensation amounts based on and inconsideration of reports from the Compensation Committee. The Boardof Directors therefore judges that compensation amounts have been
decided based on the defined policies. The compensation of external
directors and corporate auditors, who are in positions independent ofoperational execution, consists entirely of basic compensation basedon their roles. In addition, the compensation of corporate auditors is
decided through deliberations among the corporate auditors within thedefined limits.

− 44 −

The Company hires a third-party assessment institution to objectively evaluate the effectiveness of the Board of
Directors and uses its evaluation reports during meetings of the Board Effectiveness Review Council.

Important Themes for Fiscal 2021
1. Reinforcement of control and oversight functions for subsidiaries and affiliates
Bolstering of monitoring of investee companies in view of growing business risks associated with large-scale
M&A activities and investments implemented
2. Composition of Board of Directors, including giving consideration to issue of diversity
Deepen discussion on Board of Directors’ oversight functions and continue to explore ideal ratio of internal andexternal directors and gender and global aspects of diversity

Evaluation in Fiscal 2021

Evaluation ofBoard of Directors’
effectivenessManagement Issues to Be Discussed at Board of Directors’ Meetings in Fiscal 2022
1. Medium- to Long-Term Discussion Looking toward 10 to 15 Years in the Future
There is a need for expanded discussion on management visions, business models, long-term targets, risk
control, and other topics based on the rapidly changing operating environment.
2. Group GovernanceGroup governance systems must be enhanced to allow for greater coordination of information-sharing and risk
management frameworks amid growing overseas operations and joint initiatives with partner companies.

− 45 −

Risk Management

Policies

The Tokyo Century Group has established the Basic Risk Management Policy for its risk management activities.
In addition, we have defined the Comprehensive Risk Management Rules for comprehensive risk management
activities as well as various other individual risk-specific rules based on the Basic Risk Management Policy. Risk
management is promoted in accordance with these rules.
Our risk management approach focuses on strengthening visual risk management, controlling non-financial
risks, and enhancing consolidated Group governance in Japan and overseas through the use of consolidated
enterprise risk management (ERM) and management information system (MIS) measures.

Comprehensive Enterprise Risk Management
The Tokyo Century Group will continue to practice comprehensive ERM in accordance with its management
guidelines for capital use rates based on quantitative risk control on a consolidated basis. The capital use rate isused to assess risk resilience, which is an important criterion for rating financial institutions. We have therefore
sought to keep the risk amount within a certain level of capital buffers by adhering to the aforementioned
management guidelines. As our business domain continues to expand, the relationship between the amount of
capital and level of risk receives greater attention from investors and other interested parties. For this reason, thecapital use rate has become a key indicator for objectively determining prospects for our sustainable growth andinvestment capacity.
We refer to the targeted level of the capital use rate only as a guideline, since the regulations regarding capitaluse levels for financial institutions are not applied to us. In operating a business, seizing business opportunities,
such as the opportunity to take part in M&A activities, is also an important factor considered under the risk
management framework. Rather than adopting a passive approach to the soundness of corporate management,
we pay due consideration to the magnitude of increase in the amount of risk over a medium-term period of about
three years, the projection for organic increases in the shareholders’ equity ratio from earnings growth, and thelevel of tolerance of our capital policy. Even amid the COVID-19 pandemic and the changes to the geopoliticallandscape, we will continue to maintain the capital use rate at the appropriate guideline level while securing
sufficient growth potential. At the same time, we will constantly improve on the efficacy of our risk management
frameworks in conjunction with the expansion of our business domain and changes in the operating environment.

Management

Visual Risk Information Tracking at the Management Level
In addition to measuring risks on a consolidated basis and controlling the capital use rate, we implement a visual
management information system (MIS). Under the system, the Credit Risk Management Committee and theComprehensive Risk Management Committee take the lead in regularly monitoring risk information on multiple
criteria and report the results to the Management Meeting and the Board of Directors.
In our global operations, we pay particular attention to Aviation Capital Group LLC (ACG) and CSI Leasing, Inc.
(CSI), our U.S.-based subsidiaries that specialize in leasing and for which the scale of investments and assets isquite large. ACG has achieved success as a textbook example of a resilient company made so through a unique risk
management approach that includes introducing a risk appetite framework to clarify the risks to be accepted, suchas aircraft asset risks, and the risks to be avoided (mitigated or transferred), such as interest, liquidity, and foreignexchange rates. However, it is also important to establish unified governance in line with the Company’s corporate
standards from the standpoint of consolidated management control. Accordingly, the management standards of
ACG and CSI are being integrated into the global management policies of Tokyo Century. ACG and CSI were bothlarge acquisitions, and we feel that these companies are prime examples of effective post-merger integration.

Non-Financial (Non-Quantitative) Risks
As our business domain grows and we branch out from the financial sector to provide business services, it
is becoming increasingly important to account for non-financial operational risks that cannot be measured
quantitatively. Based on this recognition, Tokyo Century has established key risk indicators (KRIs) for non-financial
risks. Regular monitoring of these KRIs is performed, and the results are reported to the Board of Directors andother relevant bodies.
KRIs have been set pertaining to human resources, information security, accidents, compliance, climatechange, legal affairs, and corruption. We are also expanding our range of environmental KRIs in relation to
renewable energy, CO2 emissions, and the portion of our portfolio accounted for by fuel-efficient aircraft amid therising importance of tracking and managing climate change risks. Nevertheless, stakeholder concern for nonfinancial risks is constantly rising. From the perspective of sustainability, Tokyo Century will continue to bolster
its range of effective indicators related to climate change risks as well as to other environmental, social, andgovernance (ESG) factors and to the United Nations Sustainable Development Goals (SDGs).

− 46 −

Major Risks and Management Approaches

Major risks andmanagement
approaches

With respect to Group risk management, we mainly manage the following risks based on the characteristics of ourbusiness operations.

Relationship between
major Group
companies and main
risk categories− 47 −

For the purposes of effectively controlling diversifying investment risks and optimizing its business portfolio, Tokyo
Century has instituted an investment management framework. Primary focuses of this framework include clarifying
investment screening, continuation, and withdrawal standards and developing standardized monitoring processes.
Under this framework, meetings of investment advisory committees are held prior to discussions by theManagement Meeting as part of the process for screening investments of a predetermined scale, in order toconfirm the anticipated level of profitability after considering capital costs based on the inherent risks (quantitative
standards) and the compatibility with Tokyo Century’s strategies (qualitative standards). In addition, multifaceted
evaluations will be conducted by business divisions with regard to business plans, investment structures, andprojected quantities of risk and environmental impacts. After investment, projects will continue to be monitored
through standardized processes, and the status of projects and their conformity to the scenarios formulated at
the time of their selection will be confirmed regularly. Should it become apparent that a project will not be able toachieve its initial targets, discussions will be arranged on whether investment will be continued.

Investment
management
framework

ROIC monitoringin four operating
segments

Tokyo Century regularly monitors the return on invested capital (ROIC) spread (ROIC less weighted average cost ofcapital) as a cost-of-capital-based indicator of the risk and reward balance of specific business areas. Business andrisk characteristics are accounted for in this monitoring. Moreover, this timing-based monitoring approach is used
to promote management that emphasizes cost of capital along with sound financial discipline. Factors examinedthrough this monitoring include whether an appropriate balance is being maintained between risks and returns
in our four operating segments and whether the necessary risks are being taken to generate value and stimulate
growth.

− 48 −

Compliance
ComplianceManagement

At the Tokyo Century Group, the Compliance Office promotes compliance measures under the supervision of thechief compliance officer (CCO) appointed by the president & CEO, who is also the chief compliance executive.
The heads of each business division and branch office of the Company, along with the presidents of Group
companies, act as compliance officers (COs) with the responsibility of coordinating with the Compliance Office toguarantee compliance with all relevant laws and regulations and ensure that business activities are kept in linewith social norms.

Compliancestructure

Complianceactivities

Compliancehandbooks

We report and review the Group’s compliance structure and operation as well as identified compliance violations
at the meetings of the Management Meeting and the Board of Directors every six months. Based on the results ofthese reviews, which look at effectiveness, we formulate and implement compliance promotion plans.
Specific compliance activities include e-learning programs, face-to-face and online training sessions, distributionof compliance-related information, and compliance awareness surveys. We also arrange Groupwide forums forsharing compliance information.
In addition to the above, we oblige all officers and employees to submit a compliance pledge once every year inorder to underscore their commitment to adhering to our compliance regulations.
In fiscal 2021, there were no major compliance violations, including human-rights violations, deserving of publicannouncement.

The Tokyo Century Group distributes its Compliance Handbook to all
officers, managers, and employees and makes it available on its corporate
portal at all times. The Compliance Handbook outlines our Management
Philosophy, Corporate Code of Conduct, and compliance management
regulations and other internal regulations. In addition, the handbook
clearly stipulates the Group’s stance toward respect for human rights andthe prohibition of harassment.
The Group also strives to improve the compliance mindset at its local
subsidiaries overseas and has created an English and Chinese edition of
the handbook for these subsidiaries.

− 49 −Aiming to thoroughly instill a compliance-oriented mindset, the Tokyo Century Group provides systematic andcontinuous compliance education through such means as rank-based training programs designed for employees
ranging from new hires to newly appointed managers; e-learning-based training targeting all officers, managers,
and employees (including contractors and temporary staff); and workplace compliance training conducted bycompliance officers (heads of divisions and branch offices) based on compliance information.
Targets (Training Methods)

New employees(rank-based training programs)

•
•
•
•
•
•
•

New heads of divisions andbranch offices(rank-based training)

Roles and responsibilities of heads of divisions and branch offices concerning risk
management and compliance• Organizational risk and compliance management system and promotion thereof• Responses to crises, incidents, and accidents• Business continuity measures• nformation security and information management (personal information, insider
information, etc.)• Prevention of bribery and corruption (non-association with antisocial organizations;prevention of money laundering and of provision of funds for terrorism; appropriate
means of offering entertainment to public officials, political contribution control, etc.)• Initiatives for environment-related businesses, etc.

All officers and employees(e-learning)• Internal reporting system• Prohibition of harassment (sexual harassment; abuses of power; harassment for
pregnancy, childbirth, childcare leave, family care leave, etc.; harassment associatedwith teleworking)• Points to note on entertainment and the exchange of gifts with people working at
private companies, domestic public officials, overseas public officials, etc.
• Non-association with antisocial organizations• Prevention of money laundering and of provision of funds for terrorism• Appropriate management of personal information, My Number (social security and tax
numbers in Japan), information assets, and insider information• Attendance management (workhours, teleworking, annual paid leave, etc.)• Fraud triangle (motivation, opportunity, and rationalization)• Appropriate use of copyrighted works• Prohibition of misuse of subsidies from the government and local governments• Compliance with the Antimonopoly Act• Self-checking of basic actions and behavior pertaining to Corporate Code of Conduct,
Our Action Guidelines, etc.

Employees at divisions andbranch offices(workplace compliance training
conducted by complianceofficers / heads of divisions andbranch offices)• Internal reporting system (details, purposes, and appropriate use)
• Prohibition of harassment—relevant laws and regulations and prevention guidelines,
basic stance toward prevention, etc.
• Prohibition of excessive offering of entertainment and exchange of gifts• Prevention of money laundering and of provision of funds for terrorism• Act on the Protection of Personal Information• Insider trading regulations• Antimonopoly Act• Intellectual property rights• Political contribution control• Trends in and lessons learned from compliance violations at other companies, etc.

Employees at overseas bases(training for overseas assignees,
training conducted by the headsof compliance (base heads),
e-learning)• Training for overseas assignees (regulations related to compliance and risk
management at overseas bases, management systems, internal reporting system andother systems, features of assigned bases, etc.)• Workplace compliance training conducted by heads of compliance (base heads)(internal reporting system, prohibition of harassment, prevention of bribery andcorruption, non-association with antisocial organizations, prevention of money
laundering and of provision of funds for terrorism, appropriate means of offering
entertainment to public officials, personal information protection, information security,
insider trading regulations, fraud triangle, etc.)• E-learning (same as above)

Complianceeducation

Meaning and nature of complianceImpacts of compliance violations
Deep understanding of compliance-oriented mindset
Advice for practicing good compliance
Details and purposes of the internal reporting system
Importance of information security measures and defense against cyberattacks
Management systems, rules, and important points for information security, etc.

1

1

2

About 4

As needed
4 or more

As needed

Unit

Fiscal 2019

Fiscal 2020

Fiscal 2021

No. of Training Sessions per Year

Sessions

109

9

No. of Participants in E-Learning Programs*2

Participants

4,865

5,173

4,480

*1

Compliance training

No. of Training Sessions
per Year

Major Subjects*1 T raining sessions conducted by Tokyo Century head office and e-learning programs (excluding those conducted by branch offices and Group
companies)*2 A
 ggregate number of participants in abovementioned e-learning programs− 50 −

The Tokyo Century Group strives to detect and address risks at the earliest possible stage, improve its
organizational corrective capabilities, and reinforce its compliance management by operating an internal reporting
system (Consultation / Whistle-Blowing System) that allows officers and employees who become aware of acompliance violation to directly report the matter without the intervention of their superiors.
1. Outline of Internal Reporting System
All officers and employees of Tokyo Century Group companies in Japan and overseas are eligible to use thisinternal reporting system—including directors, officers, permanent employees, contractors, temporary staff,
seconded employees, part-time staff, and others—as well as those who have retired within the past year.
In order to ensure independence, we have set up three contact points: the Compliance Office inside theCompany; the legal counsel’s office outside the Company, which is well informed in this field; and full-time
corporate auditors. Reports can be submitted through any of these channels, irrespective of content, and besubmitted in any form, such as by email or in writing as well as by phone or otherwise verbally, to the contact
points listed on the Company’s intranet. Submitted reports are included in the Group’s Compliance Handbook,which is distributed to all officers and employees. Moreover, reports can be submitted in either English or
Japanese.
The system covers a wide range of issues, including violations of the Anti-Monopoly Act that impede faircompetition; bribery and other acts of corruption; violations of the Financial Instruments and Exchange Act
that undermine the interests of investors; harassment; violations of any laws concerning business operations,
including human rights violations; and misconduct that violates corporate ethics or internal rules. Furthermore,
the internal reporting system is open for consultation when an individual becomes aware of or is concerned
about a compliance violation or when they have a question about compliance in the course of executing
business.
Whistleblowers are given stringent protection. We strictly prohibit any disciplinary action, retaliation, orother disadvantageous treatment of whistleblowers by the Company and strive to thoroughly protect anonymity
and maintain confidentiality concerning their reports. Personnel involved in responding to these reports aredesignated as being in charge of whistleblowing, as stipulated in Japan’s Whistleblower Protection Act, and are
obliged to maintain complete confidentiality with regard to the identity of the whistleblower and to eliminate therisk of their being recognized.

Internal reporting
system

2. Response to Issues Raised by Internal Reports
When an issue is reported, the chief compliance officer (CCO) is consulted to determine a response with due
consideration to the whistleblower’s wishes and, if deemed necessary, an investigation is promptly conducted
to establish the facts. The Company is obliged to notify the whistleblower (within no more than 20 days following
the submission of a report) as to whether an investigation will be conducted and to provide reasons for thedecision, except when the report has been submitted anonymously.
During this process, we impose strict confidentiality on those involved in or subject to any investigation andprohibit any disadvantageous treatment of those under investigation or cooperating therewith, as is the casewith a whistleblower.
Timely reports on the status of an investigation are made to the CCO, who, in the event of a confirmed
compliance violation, will implement corrective measures and seek to prevent further damage based on theadvice of a legal counsel while also taking action to prevent a recurrence. The CCO will take remedial action if
the case is related to a violation of human or other rights.
Serious compliance violations will be reported to the chief compliance executive of the Tokyo Century Group(president & CEO of Tokyo Century Corporation) and corporate auditors.
3. Status of Reports Received by Internal Reporting Contact Points
The types of cases received by the contact points for internal reporting are roughly classified into such
categories as rule violations, harassment, workplace environment, and other cases. The number of cases
received over the years, including those reported by Group companies in Japan and overseas, are summarized
in the graph below. There was a total of 16 cases reported in fiscal 2021.
Appropriate corrective measures are being taken in accordance with the content in all types of cases.
For more information, please refer to the following website.
https://www.tokyocentury.co.jp/en/csr/governance/compliance.html

Number of reports received (consolidated basis)

Unit

Fiscal 2019

Fiscal 2020

Fiscal 2021

Number ofReports Received

17

17

16

4. Revision of the Internal Reporting System and Measures to Promote Use
Use of the internal reporting system and responses to individual cases are reported once every six months to
the Management Meeting and Board of Directors and are regularly checked and evaluated by our legal counsel
to make any necessary improvements.
We also encourage all officers and employees to use the internal reporting system through an annualcompliance survey to ascertain their awareness of how contact points have been used, biannual e-learning
sessions on the purpose and significance of the system, and various training programs that include sessions on
the system.

− 51 −

Prevention of Money Laundering
In accordance with its Corporate Code of Conduct and Our Action Guidelines, Tokyo Century recognizes theimportance of taking action against money laundering, the financing of terrorism, and proliferation financing (ML/FT/PF) and thus strives to prevent the Tokyo Century Group, its employees, and its customers from becoming
involved in such acts.
The Group therefore works to prevent regulatory violations associated with ML/FT/PF while continuously
strengthening its countermeasures to fulfill the requirements of international organizations such as the United
Nations and the Financial Action Task Force on money laundering as well as to adhere to the laws and regulationsof Japan and other countries, including those imposed by the U.S. Office of Foreign Assets Control.
A specific internal control framework and operation provisions are stipulated in our Regulations for Anti-Money
Laundering and Financing of Terrorism.
1. Establishment of a Framework to Prevent Money Laundering and the Financing of Terrorism
The Company recognizes that implementing measures against ML/FT/PF is an important management issue
and will establish and maintain an effective control framework.
2. Commitment by Management
The Company’s management takes a leadership role in preventing ML/FT/PF.
Initiatives forpreventing money
laundering

3. Identification, Assessment, and Mitigation of Risks Associated with Money Laundering and the Financingof Terrorism
The Company adopts a risk-based approach to identifying and verifying risks related to ML/FT/PF that are
relevant to the Company, assesses the risks identified, and takes appropriate action to mitigate said risks inlight of the assessment results.
4. Customer Verification
To ensure public security and sound economic practices, the Company takes “Know Your Customer” measuresin a timely and appropriate manner to prevent ML/FT/PF that encourages organized crime and to block any
relationships with anti-social forces. To this end, we make use of databases and other tools to perform pretransaction screening and conduct checks during transactions in addition to monitoring contractual procedures
based on internal rules.
5. Notification of Suspicious Transactions
The Company will promptly notify the authorities in the event that it detects suspicious transactions based on
checks and monitoring conducted during transactions or through reporting by sales and other divisions.
6. Training of Officers and Employees
The Company provides ongoing training so that its officers and employees can deepen their knowledge
regarding the prevention of ML/FT/PF and take appropriate action at any time necessary.
7. Compliance Auditing
To ensure appropriate operations regarding the prevention of ML/FT/PF, the Company conducts internal audits
on a regular basis and strives to improve its internal framework.

− 52 −

Anti-Corruption
The Tokyo Century Group is committed to preventing corruption by conducting fair, equitable, and transparent
transactions in all of its business activities.
1. Initiatives for Preventing Corrupt Practices
The Group makes a concerted effort to ensure compliance and prevent corruption while addressing issues suchas the prevention of money laundering, the financing of terrorism, and proliferation financing; the blocking of
any relationships with anti-social forces; prohibition of insider trading; and compliance with the Anti-Monopoly
Act, including provisions related to cartels and bid-rigging, as well as with the competition laws of othercountries.
2. Prohibition of Bribery
Except when permitted by the relevant rules, the Group prohibits offering entertainment, cash, or any otherbenefits to domestic and foreign public officials* and engaging in behavior such as receiving, demanding, or
promising illicit or unjustifiable business profits with the intention of obtaining favors, rewarding public officials
for favors obtained, or gaining illicit profit, either directly or indirectly through agents, consultants, or any otherthird party.
* “Public officials” is understood hereafter to include private customers, business partners, and other business entities.

Initiatives forpreventing
corruption

3. Education and Training
Our initiatives for preventing corruption are clearly laid out in the Japanese, English, and Chinese editions of
our Compliance Handbook. We also incorporate these initiatives into e-learning and other in-house training asnecessary to ensure awareness among officers and employees across the Group. In our international business,
we remain particularly committed to acting prudently and appropriately with regard to entertainment and gifts
to and from foreign public officials in stringent compliance with the laws and regulations of Japan and those ofother countries and regions.
We have compiled the Guidelines on Offering Entertainment to Public Officials in Japanese, English, andChinese, which states the points to be noted, and which are known, by officers and employees at the Group’s
overseas subsidiaries.
(1) Key considerations for providing entertainment and gifts to public officials
i. Entertainment and gifts should not be given with the intention of obtaining favors or rewarding public
officials for favors obtained.
ii. The purpose and objective must be justifiable, and the cost and other expenses must be within the scopeof typical social norms.
iii. The location of meetings and the handling of expenses must be open and transparent.
(2) Key considerations for providing entertainment and gifts to foreign public officials
i. to iii. of (1) above andiv. It must be clear that the purpose is not to obtain illicit business profits, and the expenses must be
kept within the customary and socially acceptable range of the country of the foreign public official inquestion.
4. System and Response
We remain committed to protecting whistleblowers so that no discriminatory or retaliatory actions will bedirected toward any officer or employee who reports on, or provides information concerning, violations or
potential violations of laws, regulations, or internal rules on preventing corrupt practices.
5. Reporting
The progress and status of initiatives for preventing corrupt practices are reported to and reviewed by theManagement Meeting and Board of Directors as part of the implementation of the Group’s compliance system.
In fiscal 2021, no fine was imposed on the Group and no officers or employees were dismissed or disciplined forcorruption.

Policy on politicalfunds

The Tokyo Century Group’s Corporate Code of Conduct stipulates that we should act from a global perspective thatis highly transparent and sincere, by respecting the cultures and customs of the countries and regions in which
the Group operates and complying with all laws, regulations, and rules, in addition to conducting sound and faircorporate activities in accordance with social norms.
Our policy on political funds prohibits donations to political parties, political fundraising groups, other politicalorganizations, and candidates for public office (e.g., politicians).
Therefore, no political contributions are recorded each year.

− 53 −

Information Security

The Tokyo Century Group has acquired certification under the ISO/IEC 27001 international information security
management system standards, with the goal of protecting the information assets of its clients and those of theGroup from threats such as unauthorized access, loss, leakage, revision, and destruction. With this certification,
we practice the appropriate protection and management of information assets on a Groupwide basis. Aiming toalways be a company trusted by society, the Group will strive to ensure information security by working to further
entrench adherence to ISO/IEC 27001 standards and by engaging in continuous improvement efforts (certification
was received from BSI Group Japan K.K.).
ISO 27001
certification

Scope of ISO 27001 Certification
ISO 27001 certification has been acquired for the following Tokyo Century Group
entities.
■ Tokyo Century Corporation (head office, Okachimachi office, Akihabara UDX
office)■ TRY Corporation■ TC Business Services Corporation
In addition, the following consolidated subsidiary has received certification on an
individual basis.
■ FLCS Co., Ltd. (all offices)Tokyo Century Group seeks to protect the information assets of business partners and of the Group from various
security risks by laying out guidelines and related rules and regulations to carry out the following initiatives.
1. Protection of Information Assets
We will protect all information assets related to our business activities. In particular, we will designate
information concerning our business partners and confidential information concerning the Group as vital
information, and we will appropriately handle such information to protect it against illegal access, loss, leaks,
falsification, and destruction.
2. System of Information Security Management
We will clarify the roles and responsibilities for information security through the Information Security Committee,
as the organization for deliberating on information security, and a Chief Information Security Officer, as the
person responsible for implementing related measures, and we will pursue these activities Group-wide.
Basic Information
Security Policy

3. Information Security Education
We will consistently conduct education and training on information security for officers and employees tomaintain and deepen awareness of information security.
4. Response to Incidents and Accidents
We will strive to prevent incidents and accidents related to information security, and in the event of such an
incident or accident, we will promptly respond with appropriate action, including preventive measures.
5. Legal Compliance
We will comply with laws and regulations on information security as well as rules and contractual security
requirements.
6. Initiatives for Continuous Improvement
We will evaluate the security risks of information assets based on appropriate risk assessment to promote
effective security measures. In addition, we will respond to changes in the management environment andprogress in information technology by regularly reviewing our policies, rules, and measures to make continuous
improvements.

− 54 −

Information security
initiatives

Tokyo Century views information security as a crucial issue affecting corporate management. The Company
has accordingly obtained certification under ISO 27001, the international standard for information security
management systems. Under the leadership of the Information Security Committee, we periodically revise
regulations and rules regarding information management, conduct regular risk assessments to address information
security risks, and carry out security training for employees and officers.
The TC-CSIRT (computer security incident response team) has been set up within the IT Unit as a dedicatedcybersecurity organization. Under normal circumstances, the TC-CSIRT will take steps to prevent the recurrenceof past incidents and the occurrence of new incidents by monitoring security systems, assessing the security ofcloud services, and educating officers and employees. As cyberattacks grow more sophisticated and complex,
we endeavor to enhance our response capabilities by periodically having our cybersecurity measures assessedby third-party institutions, sharing information with external partners through membership in the Nippon CSIRT
Association, and participating in drills for exercising the knowledge acquired in this manner.
Developing a global business means that actions must be taken to protect personal information and strengthen
information security measures with respect for various cultures and regulatory environments. Based on thisrecognition, we encourage closer collaboration with Group companies by establishing security guidelines for said
companies, strengthening management of outside subcontractors, providing information on information security,and holding regular liaison meetings.
In addition to these efforts, we conduct email drills targeting the Company and its domestic and overseas Group
companies with emails in Japanese, English, and Chinese several times a year. These drills have proved to be aneffective training method for improving the information security awareness of officers and employees.

− 55 −

Personal Information Protection

Tokyo Century Corporation (hereafter “the Company”) recognizes that protecting personal information, including
Personal Identification Number and specific personal information (hereafter “specific personal information”) as avital social responsibility, and we will appropriately handle personal information under the following guidelines.
1. On Compliance with Relevant Laws and Regulations
The Company will handle personal information in strict compliance with the Act on the Protection of Personal
Information (hereafter “the Personal Information Protection Act”) and the Act on the Use of Numbers to Identify
a Specific Individual in the Administrative Procedure (hereafter “the Numbers Act”) and other relevant laws andregulations.
2. On Obtaining Personal Information
The Company will obtain personal information through legitimate and appropriate means within the scopenecessary for performing the Company’s business activities.
3. On Using Personal Information
The Company will use personal information only after specifying its purpose and will not use personal
information beyond the scope of achieving its purpose, except in cases where prior consent has been granted
or where regulatory approval has been obtained. The Company will limit its use of specific personal information
to purposes that have been defined under the Numbers Act and other relevant laws and regulations.

Privacy Policy

4. On Providing Personal Information to Third Parties
The Company will not provide the personal information of customers to a third party, except in cases where priorconsent has been granted or where regulatory approval has been obtained. However, the Company may provide
such information without the consent of customers within the scope of achieving its purpose when the Company
consigns the handling of personal information to a third party or when the Company becomes involved in amerger or similar actions. The Company will not provide specific personal information to a third party, except as
defined under the Numbers Act and other relevant laws and regulations.
5. On Ensuring Secure Management of Personal Data
The Company will take steps to securely manage the personal information to prevent leakage, loss, falsification,etc., by establishing rules related to the protection of personal information and by appointing staff to be
responsible for ensuring the secure management of personal information. Furthermore, if the Company wereto entrust the handling of personal information to a third party, it would only do so to those who meet theCompany’s standards for safe management and would conduct necessary and appropriate supervision.
As for the specific details of action for the security control of personal data, the Company will respond without
delay if customers inquire at the reception desk separately designated.
6. On Responding to Requests for Disclosure, etc., of Personal Information
The Company will respond in good faith to customer requests for disclosure of personal data in its possession
or records of third party provision. Furthermore, the Company will respond appropriately and promptly in cases
where factual errors have been discovered in such personal data and the Company receives requests for an
addition, correction, or deletion of such data, as well as through complaints or consultation from customers.
7. On Making Continuous Improvements
The Company will strive for continuous improvement in its handling of personal information by revising theseguidelines and related internal rules, etc., to reflect changes in the Personal Information Protection Act,
Numbers Act, and other relevant laws and regulations as well as societal requirements.
Koichi Baba
President & CEO, Representative Director
Tokyo Century Corporation
FUJISOFT Bldg., 3 Kanda-neribeicho, Chiyoda-ku, Tokyo
101-0022, Japan− 56 −

1. Purposes of Personal Information Use
In the handling of customers’ personal information, the Company shall specify the purpose of use and,excluding when consent has been received in advance and when recognized by law, it will not use personal
information beyond the scope necessary to achieve the purposes of use below concerning the Company’sbusiness activities. Note that when specific purposes of use of personal information are separately restrictedby laws and ordinances, such as the use of Personal Identification Number as defined by the Numbers Act,
personal information shall not be used for purposes other than the relevant purpose of use.

Company businessactivities

Handling ofcustomers’ personal
information

Purposes of use

1. Businesses involved in leasing, installment sales, and sales and intermediaries
thereof concerning computers, transportation equipment, industrial machinery,
medical equipment, other various movables, real estate, and rights;
2. Financial businesses;
3. Casualty insurance agencies and insurance agencies as described in the Act on
Securing Compensation for Automobile Accidents;
4. Businesses concerning the solicitation of life insurance;
5. Possession, management, administration, and sale of marketable securities;
6. Investment, financing, loan guarantees, and management advice to unlistedcompanies;
7. Contracting businesses involved in design, construction, installation, repair, anddemolition;
8. Businesses involved in business contracting and business undertaking;
9. Collection agency businesses;
10. Businesses engaged in the sale and rental of welfare equipment as described in
the Long-Term Care Insurance Act;
11. In-home, long-term care support businesses as described in the Long-Term Care
Insurance Act;
12. Businesses involved in home care services;
13. Type II financial instruments businesses;
14. Businesses concerning the supply, sale, intermediary, etc., of energy including
electricity;
15. Businesses engaged in hotel and ryokan (traditional Japanese-style hotel)
management; and
16. Any businesses associated with or related to the foregoing.
1. In order to make credit decisions when engaging in transactions with customers
concerning the above business activities, such as leasing, installment sales, andloans
2. In order to engage in appropriate management as concerns contracts relating totransactions with customers
3. In order to introduce products and services offered by the Company or Tokyo
Century Group companies as well as to respond to inquiries and applications inthis regard
4. In order to provide information to relevant third parties within the scope necessary
when the Company concludes or considers concluding a contract with a third
party involving transactions with customers
5. In order to confirm the identity of a customer or that of a customer proxy intransactions with customers
6. In order to disclose customers’ personal information to third parties, including
the credit bureaus of which the Company is a member, to the extent required toappropriately execute relevant business activities
7. In order to engage in suitable solicitation concerning products and services
offered by the Company or Tokyo Century Group companies in accordance withprinciples regarding suitability established in laws and ordinances such as the
Financial Instruments and Exchange Act
8. In order to make use of information in market research and new productdevelopment as concerns products and services offered by the Company andTokyo Century Group companies
9. In order to appropriately execute all other business activities concerningtransactions with customers− 57 −

2. Sharing of Personal Information
The Company may share customers’ personal information as described in (1) through (3) below.
However, the Company will not share specific personal information.
(1) Personal Information to Be Shared■ Information concerning attributes such as name, gender, address, date of birth, telephone number, email
address, and place of work
■ Information concerning transactions with the Company as well as transaction history, such as the balances oftransactions made with Group companies and others(2) Scope of Sharing
Domestic Group companies and overseas subsidiaries noted on the “Corporate Information” page in the “About
Us” section and the “Overseas Network” page of the Company’s website(3) Purposes of Use of Parties with Which Information Is Shared
Use within the scope necessary to achieve the purposes of use above(4) Chief Executive of Personal Information
Chief Compliance Officer
Tokyo Century Corporation
FUJISOFT Bldg., 3 Kanda-neribeicho, Chiyoda-ku, Tokyo 101-0022 Japan
3. Provision of Personal Information to Third Parties
Excluding when consent has been received from a customer or when recognized by laws and ordinances, inprinciple, the Company will not provide the personal information of a customer to a third party. However, when
the processing of personal information is to be outsourced externally, the Company may commit personal
information to a third party with a sufficient management system within the scope necessary for the purposeof use. Note that specific personal information shall not be provided to third parties, excluding in those cases
clearly delineated in the Numbers Act.
Handling ofcustomers’ personal
information

4. Security Control Measures
The Company shall establish and maintain regulations concerning the protection of personal information.
The Company shall strive to store and manage customers’ personal information in an accurate and up-todate state. The Company shall also select a person responsible for the management of the safety of personal
information, and it shall take safety management measures necessary and appropriate for preventing theleakage, loss, revision, etc., of personal information. In addition, in the event the Company outsources thehandling of customers’ personal information to a third party, the Company shall only outsource to parties thatmeet its standards concerning information safety management and shall engage in necessary and appropriate
supervision.
5. Request for Disclosure of Personal Information, etc.
The Company has established the information desk noted below to handle requests for the disclosure (disclosure,
notification of purposes of use, amendment, addition, deletion, suspension of use, erasure, or suspensionof provision to a third party) of personal information as well as complaints and inquiries in this regard. The
Company shall strive to respond appropriately and promptly to customers or their proxies concerning personal
information in the possession of the Company (however, this is limited to retained personal data as definedby the Personal Information Protection Act). Note that the Company has established procedures concerning
requests for disclosure, including entering one’s name and applying one’s signature to the established form andconfirming the identity of the person making the request. In addition, please be aware that these procedures
may require fixed fees.
Information Desk for Personal Information Disclosure Requests, Complaints, and Inquiries
Business Risks Management DivisionTokyo Century Corporation
FUJISOFT Bldg., 3 Kanda-neribeicho, Chiyoda-ku, Tokyo 101-0022 Japan
TEL: +81-3-5209-8273(Monday through Friday 9:00 a.m.–5:15 p.m. (JST), not available on Japanese national holidays)
6. Continuous Improvement Efforts
The Company shall appropriately review this policy and relevant internal regulations in response to revisions oflaws and ordinances such as the Personal Information Protection Act and the Numbers Act, advancements in
information technologies, and changes in social demand while continuously striving to improve its handling of
personal information.

− 58 −SUSTAINABILITY DATA BOOK 2021

OthersExternal Evaluations / Inclusion in ESG Indices

MSCI ESG Ratings

FTSE4Good Index Series

MSCI ESG Research LLC rates companies
on a seven-tiered scale, from CCC to AAA,according to their exposure to ESG risks
and other factors. Tokyo Century received
an MSCI ESG Rating of AA in 2020.

Tokyo Century has been selected as aconstituent of the FTSE4Good Index Series, amajor global index series for socially responsible
investment.
For more information, please refer to the FTSE official website.
https://www.ftserussell.com/products/indices/FTSE4Good

For more information, please refer to the MSCI official website.
https://www.msci.com/accept-terms-and-conditions

FTSE Blossom Japan Index

MSCI Japan ESG Select Leaders Index

The FTSE Blossom Japan Index is designed as atool to measure the performance of Japanesecompanies that have a track record of strong
ESG practices. Tokyo Century has been a
constituent of the index since 2017.

The MSCI Japan ESG Select Leaders
Index is based on the MSCI Japan IMIIndex and composed of companies thathave demonstrated outstanding ESG
performance. Tokyo Century has been a
constituent of the index since 2017.

For more information, please refer to the FTSE official website.
https://www.ftserussell.com/products/indices/FTSE4Good

For more information, please refer to the MSCI official website.
https://www.msci.com/accept-terms-and-conditions

FTSE Blossom Japan Sector
Relative Index

S&P/JPX Carbon Efficient Index

The FTSE Blossom Japan Sector RelativeIndex is an index designed to be sector
neutral, reflecting the performance ofJapanese companies that demonstrate
outstanding ESG practices in theirrespective sectors. Tokyo Century has
been a constituent of the index since 2022.

The S&P/JPX Carbon Efficient Index comprises
companies that boast high levels of carbon
efficiency and that actively disclose information
on CO2 and other emissions. Tokyo Century has
been a constituent of the index since 2018.

DX Certification System

For more information, please refer to the FTSE official website.
https://www.ftserussell.com/products/indices/blossom-japan

The DX Certification system is based on the Act
on Partial Revision of the Act on Facilitation ofInformation Processing. In 2021, Tokyo Century
was certified by the Ministry of Economy, Tradeand Industry (METI) through this system,
indicating that the Company is implementing
superior initiatives based on the guidelines for
information system implementation andmanagement.

CDP
CDP is a U.K. nonprofit organization thatencourages companies to disclose
information regarding climate change andother environmental issues and that
conducts surveys and analyses of suchinformation. Tokyo Century has been
disclosing information through responses
to CDP’s climate change and water
security questionnaires since fiscal 2016

DX Stock Selection
DX Stocks comprises listed companies selectedby METI and the Tokyo Stock Exchange forhaving established internal frameworks topromote digital transformation (DX) aimed at
improving corporate value and for having beenhighly successful in utilizing digital technologies.
The Company has been included in this programin each of the eight years since the establishmentof the Competitive IT Strategy Company Stock
Selection program, the predecessor of the DX
Stocks program.

CDP score

Category

Fiscal 2019

Fiscal 2020

Fiscal 2021

ClimatechangeB−

B−

B

Water security

C

C

C

Platinum Kurumin Certification
In 2017, Tokyo Century was accredited with
Platinum Kurumin certification by the Ministry of
Health, Labour and Welfare as a company
pursuing high quality initiatives for supportingchildrearing.

Tokyo’s Model Company for Disaster
Prevention Measures
The Tokyo Metropolitan Government certifies
companies that actively work to prevent
employees from returning home at the sametime in the event of a disaster. The purpose ofthis measure is to prevent problems withlifesaving and rescue activities and secondary
damage. Tokyo Century was selected as amodel company for its work on this initiative inTokyo in fiscal 2021, in recognition of its
outstanding efforts that have a particularly large
influence on society.

Semi-Nadeshiko Brand
For four consecutive years since 2019, Tokyo
Century has been selected as a Semi-Nadeshiko
Brand company in the program jointly arranged
by METI and the Tokyo Stock Exchange torecognize companies that excel in empowering
women.

− 59 −

Participation in External Initiatives

Signing of theUnited Nations
Global Compact

Tokyo Century became a signatory to the United Nations Global Compact in May
2018. An international initiative spearheaded by the United Nations, the Global
Compact invites companies and organizations to participate on a voluntary basis.
Signatories exercise creative and responsible leadership and act as good citizens
to contribute to the development of global frameworks for realizing sustainablegrowth.
Moreover, the Global Compact requests that signatories adhere to its Ten
Principles in the four areas of human rights, labour, environment, and anticorruption. Through ongoing efforts to live up to these principles, we aim tocontribute to the creation of an environmentally sound, sustainable economy andsociety.

Joining of the
Unstereotype
Alliance

The Unstereotype Alliance is a global initiative led by UN Women, the United Nations
entity dedicated to gender equality and the empowerment of women, to promote
gender equality through media and corporate public relations activities including
advertising, and to end harmful stereotypes from the perspective of respect forhuman rights.
Tokyo Century has been a member of the Japan branch of the Unstereotype
Alliance since fiscal 2020.

Endorsementof TCFD
recommendations

Tokyo Century announced its endorsement of the recommendations of the
Financial Stability Board’s Task Force on Climate-related Financial Disclosures(TCFD) in April 2021. We have since been disclosing information based on TCFD
recommendations.
■ For more information, please refer to the TCFD official website.
https://www.fsb-tcfd.org

Membership in the
TCFD Consortium

An initiative advanced by corporations and financial institutions that endorse
the TCFD recommendations, the TCFD Consortium was established to provide aforum for discussions on effective climate-related financial disclosure methods
and initiatives to utilize disclosed information in making appropriate investment
decisions by financial institutions.

Signing of
Principles for
Financial Action forthe 21st Century

In May 2016, Tokyo Century signed the Principles for Financial Action toward theFormation of a Sustainable Society (Principles for Financial Action for the 21stCentury), an initiative encouraging financial institutions to incorporate seven ESG
principles into their financial activities.
We take the environment and society into account in our activities based onthese principles for contributing to the realization of a sustainable society.

Support for Fun to
Share initiative

Tokyo Century has been supporting the Fun to Share initiative since March 2014.
The Fun to Share initiative is a climate change response campaign advanced by
the Ministry of the Environment to contribute to the realization of a decarbonizedsociety.
The slogan of the Fun to Share initiative translates as, “Let’s share the latest
insights on global warming response measures to create a decarbonized society.”− 60 −SUSTAINABILITY DATA BOOK 2021

GRI Standards Index
Universal Standards
Disclosure
Number

Disclosure Name

Relevant Page of Sustainability
Data Book 2021

Relevant Section of Website(As of October 31, 2022)

1. Organizational profile
102-1

Name of the organization

Company Profile (page 6)

Corporate Information

102-2

Activities, brands, products, and services

Operating Segments (page 6)

Our Services

102-3

Location of headquarters

Company Profile (page 6)

Corporate Information

102-4

Location of operations

102-5

Ownership and legal form

Company Profile (page 6)102-6Markets served

Operating Segments (page 6)

102-7

Scale of the organization

102-8

ー

List of Offices (in Japanese only)
Overseas Network
Corporate Information
Our Services
Four Operating Segments

Operating Segments (page 6)

Corporate Information

Financial Information (page 7)

Corporate Profile

Information on employees and otherworkers

Human Resource Data
(pages 38–39)

Together with Our Employees

102-11

Precautionary Principle or approach

Risk Management (pages 46–47)

Risk Management102-12External initiatives

Participation in External Initiatives(page 60)

Commitment and External Evaluation

2. Strategy
102-14102-15ーStatement from senior decision-maker

Key impacts, risks, and opportunities

Message from the President & CEOTokyo Century’s Materiality (Key Issues)
Linked to the SDGs (page 11)

Tokyo Century’s Sustainability
Management

Climate Change Response Strategy(pages 25–26)

Response to Climate Change and TCFD
Endorsement

3. Ethics and integrity
102-16

Values, principles, standards, and normsof behavior

Sustainability Philosophy and Policies(pages 8–9)

Tokyo Century’s Sustainability
Management102-17

Mechanisms for advice and concerns
about ethics

Internal reporting system (page 51)

Compliance—Internal Reporting System

4. Governance102-18Governance structureManagement Structure (pages 42–43)

Governance System102-19Delegating authority

Structure for Promoting Sustainability
Management (page 11)

Tokyo Century’s Sustainability
Management102-20Executive-level responsibility for economic,
environmental, and social topics

Risk Management (pages 46–47)

Tokyo Century’s Sustainability
Management102-22Composition of the highest governancebody and its committees

Management Structure (pages 42–43)− 61 −

Governance System
Corporate Governance Report (page 7)

Universal Standards
Disclosure
Number

Disclosure Name

Relevant Page of Sustainability
Data Book 2021

Relevant Section of Website(As of October 31, 2022)

4. Governance102-23Chair of the highest governance body

Board of Directors (page 42)102-25

Conflicts of interest

102-26

Role of highest governance body insetting purpose, values, and strategy

102-27

Collective knowledge of highest
governance body102-28

Evaluating the highest governancebody’s performance

Evaluation of Board of Directors’
effectiveness (page 45)

Corporate Governance Report (page 5)102-29Identifying and managing economic,
environmental, and social impacts

Promotion of Sustainability Management(page 10)

Tokyo Century’s Sustainability
Management102-30Effectiveness of risk management
processes

Risk Management (pages 46–47)

Risk Management102-31

Review of economic, environmental, andsocial topics

Risk Management (pages 46–47)

Risk Management102-32Highest governance body’s role insustainability reporting

Structure for Promoting Sustainability
Management (page 11)

Tokyo Century’s Sustainability
Management102-33

Communicating critical concerns

Internal reporting system (page 51)

Compliance—Internal Reporting System

102-34Nature and total number of criticalconcerns

Internal reporting system (page 51)

Compliance—Internal Reporting System

102-35

Remuneration policies

Policies and method for determining
officer compensation (page 44)

Corporate Governance Report (page 15)102-36

Process for determining remuneration

Policies and method for determining
officer compensation (page 44)

Corporate Governance Report (page 15)ーBoard of Directors (page 42)ーCorporate Governance Report (page 7)
Corporate Governance Report (page 2)
Corporate Governance Report (page 17)
Corporate Governance Report (page 5)

5. Reporting practice102-45

Entities included in the consolidated
financial statements

102-46

Defining report content and topic
Boundaries

Scope of Reporting (page 1)

Integrated Report 2022 (page 6)102-47

List of material topics

Tokyo Century’s Materiality (Key Issues)
Linked to the SDGs (page 11)

Tokyo Century’s Sustainability
Management102-50

Reporting period

Scope of Reporting (page 1)

Integrated Report 2022 (page 6)102-51

Date of most recent report

Sustainability Data Book 2021 :September 10, 2021

Integrated Report 2022:
August 30, 2021

102-52

Reporting cycle

Sustainability data book : Once a year

Integrated report: Once a year

102-53

Contact point for questions regarding
the report

Sustainability data book : Sustainability
Management Division

Integrated report: Investor Relations
Division102-54Claims of reporting in accordance with
the GRI Standards

GRI Standards Index (pages 61–65)

ー

102-55

GRI content index

GRI Standards Index (pages 61–65)

ー

102-56External assurance

Independent Practitioner’s Assurance
Report (page 2)ーー− 62 −

Annual securities reports (page 7, inJapanese only)Universal Standards
Disclosure
Number

Disclosure Name

Relevant Page of Sustainability
Data Book 2021

Relevant Section of Website(As of October 31, 2022)

Management Approach

103-1

103-2

103-3

Explanation of the material topic and its
Boundary

The management approach and its
components

Evaluation of the management approach

Promotion of Sustainability Management(page 10)Structure for Promoting Sustainability
Management (page 11)

Tokyo Century’s Sustainability
Management

Structure for Promoting Sustainability
Management (page 11)

Risk Management

Risk Management (pages 46–47)

Environmental Management System
Organization

Basic Environmental Policy, Management
system (pages 20–21)

Basic Environmental Policy

Basic Policy on Health and Productivity
Management (page 36)

Basic Policy on Health and Productivity
Management

Tokyo Century Group Human Rights
Policy (page 29)

Tokyo Century Group Human Rights
PolicyNon-Financial Materiality KPIs
(pages 12–17)

Environmental Performance Report

Environmental Performance(pages 23–24)

Promoting the Active Participation ofDiverse Human Resources

Human Resource Data (pages 38–39)

ー

Relevant Page of Sustainability
Data Book 2021

Relevant Section of Website

EconomyDisclosure
Number

Disclosure Name(As of October 31, 2022)

Economic Performance
201-1

Direct economic value generated anddistributed

201-2

Financial implications and other risks
and opportunities due to climate change

201-3

Defined benefit plan obligations andother retirement plansーClimate Change Response Strategy(pages 25–26)
ーAnnual securities report—Consolidated
Statement of Income (page 72, inJapanese only)
Response to Climate Change and TCFD
Endorsement
Annual securities report—Provisionof Retirement Benefits (page 141, inJapanese only)

Indirect Economic Impacts
Together with Customers and Clients-Project Cases-

203-1

Infrastructure investments and services
supported

Contribution to Social Infrastructure
Development (page 15)

203-2

Significant indirect economic impacts

Social Contribution Activities (page 37)

Together with Local Communities

Initiatives for Regional Revitalization
through the Hotel BusinessAnti-corruption
205-2

Communication and training about anticorruption policies and procedures

Anti-Corruption (page 53)

Initiatives for Preventing Corruption

205-3

Confirmed incidents of corruption andactions taken

Anti-Corruption (page 53)

Initiatives for Preventing Corruption

Anti-competitive Behavior
206-1

Legal actions for anti-competitive behavior,anti-trust, and monopoly practicesー− 63 −

Compliance Structure of Tokyo Century
GroupEnvironmental
Disclosure
Number

Disclosure Name

Relevant Page of Sustainability
Data Book 2021

Relevant Section of Website(As of October 31, 2022)

Materials
301-1

Materials used by weight or volume

Other environmental performance data
(page 23)

Environmental Performance Report

301-2

Recycled input materials used

Other environmental performance data
(page 23)

Environmental Performance Report

301-3

Reclaimed products and their packaging
materials

Other environmental performance data
(page 23)

Environmental Performance Report

302-1

Energy consumption within theorganization

Other environmental performance data
(page 23)

Environmental Performance Report

302-4

Reduction of energy consumption

Reduction of environmental impacts(pages 26–27)

Environmental Performance Report

EnergyWater and Effluents
Water withdrawal

Other environmental performance data
(page 23)

Habitats protected or restored

Biodiversity initiatives (page 22)

Participation in Woodland Preservation
Activities in Shisui Town, Chiba
Prefecture (in Japanese only)

305-1

Direct (Scope 1) GHG emissions

Greenhouse gas emissions (page 23)

Environmental Performance Report

305-2

Energy indirect (Scope 2) GHG emissions

Greenhouse gas emissions (page 23)

Environmental Performance Report305-3

Other indirect (Scope 3) GHG emissions

Greenhouse gas emissions (page 23)

Environmental Performance Report

305-4

GHG emissions intensity

Long-term quantitative greenhouse gas
emissions reduction targets (intensity
targets) (page 21)

Environmental Performance Report

Reduction of GHG emissions

Carbon-Neutrality Policy (page 13)
Long-term quantitative greenhouse gas
emissions reduction targets (intensity
targets) (page 21)

Environmental Performance Report

Waste generated

Compliance (page 24)

ーCompliance (page 24)

ー

303-3

ー

Biodiversity
304-3

Emissions

305-5

Waste
306-3

Environmental Compliance
307-1

Non-compliance with environmental laws
and regulations− 64 −

SocialDisclosure
Number

Disclosure Name

Relevant Page of Sustainability
Data Book 2021

Relevant Section of Website(As of October 31, 2022)

Employment
401-1

New employee hires and employee
turnoverHuman Resource Data (pages 38–39)

Employee Data

401-3

Parental leave

Rate of childcare leave acquisition bygender (page 39)

Promoting the Active Participation ofDiverse Human Resources

Workstyle reforms (page 35)

Employee Health and Safety, Reductionof Long Working Hours and Work-Life
Balance

Human Resource Utilization (page 33)

Support for Career and Ability
Development

Diversity (pages 31–32)

Promoting the Active Participation ofDiverse Human Resources

Social Contribution Activities (page 37)

Together with Local Communities

Customers (page 41)

Responsibilities to Customers

Occupational Health and Safety
403-6

Promotion of worker healthTraining and Education
404-2

Programs for upgrading employee skills
and transition assistance programs

Diversity and Equal Opportunity
405-1

Diversity of governance bodies andemployees

Local Communities
413-1

Operations with local community
engagement, impact assessments,
and development programsMarketing and Labeling
417-1

Requirements for product and service
information and labeling

Customer Privacy
418-1

Substantiated complaints concerning
breaches of customer privacy and lossesof customer dataーCompliance Structure of Tokyo Century
Group

ー

Compliance Structure of Tokyo Century
Group

Socioeconomic Compliance419-1

Non-compliance with laws andregulations in the social and economicarea− 65 −