Fuyo Lease Sustainability Website

2023
ArchiveHOME

Sustainability

Sustainability

Fuyo Lease Group's CSV

Solving Social Issues throughBusiness

Environmental ReportSocial Report

Governance and Management

Each Group Company's
Environmental and Social initiatives

Fund procurement throughSustainable financeParticipation in Initiatives and Third- Environment/Social Data
Party Evaluation

1

"Integrated Report"PDF download"Integrated Report 2023" (16600KB)"Consolidated Financial statements 2023（revised）" (807KB)"Consolidated Financial statements 2023" (1202KB)
Other years' reports are here
Editorial Policy/For inquiries and comments regarding the sustainability activities, please contact:

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

2

Contents

Fuyo Lease Group's CSVP�Solving Social Issues through BusinessP��

Environmental ReportP��

Social ReportP��

Governance and Management

P��

Each Group Company's Environmental and Social initiatives

P���

Fund procurement through Sustainable ﬁnanceP���Participation in Initiatives and Third-Party Evaluation

P���

Environment/Social DataP���

Editorial Policy

p���

3

HOME

Sustainability

Fuyo Lease Group's CSV

Fuyo Lease Group's CSV
Top Message
Fuyo Lease Group's CSV Management

Basic Policy on Systems to Support Sustainable
Value Creation

Sustainability

Value Creation Process and Materiality

Solving Social Issues
through BusinessFuyo Lease Group and Its Stakeholders

Fuyo Lease Group's CSV

Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

4

HOME

Sustainability

Fuyo Lease Group's CSV

Top Message

Top Message
We aim to create value centered on trust and CSV as we move toward
our vision for 2030.

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement

President and Chief Executive Officer
Hiroaki Oda

Five Years of Strengthening Our Corporate Foundation
The Fuyo Lease Group has achieved steady growth over the past five years since the previous Medium-Term
Management Plan. This growth of approximately double the ordinary profit has been supported by the strengthening of
the Fuyo Lease Group’s unique sales capabilities and of our corporate foundation.
For me, the real pleasure of the job is establishing a good rapport with customers through repeated proposals andsuccessfully completing projects that are useful to them. Repeatedly and thoroughly, every time the occasion arises, I tellour employees that in order to build a pipeline with our customers, we should know our customers well and gain theirtrust by listening to their concerns, continuing to offer our wisdom, and keep making proposals until they are satisfied
with our services. Each and every one of our employees has become familiar with these guiding principles, and as theygain experience working on their own, they are now able to provide solutions that truly address our customers’ businesschallenges.
To achieve the goal of strengthening our sales capabilities, we added a company that provides BPO services to theGroup, and in addition to the business fields of human resources, accounting, general affairs, and sales, we also provide
training and other video creation services for business use, which has strengthened our sales style which maintains an
ongoing customer pipeline. At the same time, the BPO service itself became a major pillar of business and enabled us to
strive for even higher goals.

Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

Progress of the Medium-Term Management Plan Fuyo Shared Value 2026 and Future
Challenges
In fiscal 2022, we launched our Medium-Term Management Plan Fuyo Shared Value 2026. The plan fully incorporates theconcept of CSV (Creating Shared Value), which aims to improve corporate value by addressing social issues throughbusiness. This is the Fuyo Lease Group’s growth strategy, which aims to achieve strong and sustainable profit growth byequally pursuing financial (corporate value) and non-financial (social value) targets.
For business domains that drive growth, we will intensively invest management resources in the domains of Mobility andCircular Economy for strategic growth enabled by capturing tectonic social changes and in Energy & Environment, BPO/
5

ICT, and Healthcare for accelerated growth enabled by capturing market trends, with the aim of realizing dramatic
growth in profits.
In fiscal 2022, the first year of the plan, we achieved record-high business results and surpassed those of fiscal 2021. Thiswas mainly the result of steady advancements through businesses in the business domains that we have positioned as
growth drivers. We achieved both quality and quantity by improving ROA and increasing operating assets, realized
steady profit growth while improving profitability, and were able to pass through the first year of the plan at a steadypace, which I think is highly commendable.
Looking ahead, there is a strong tailwind in the Energy & Environment domain, as exemplified by the agreement reachedat the G7 Summit by a total of seven countries to aim to introduce three times the amount of solar power and seventimes the amount of offshore wind power compared to 2021 by 2030. Collaborations with partners both within Japanand overseas are proceeding in various formations, and we will work on expanding business further.
In the Healthcare domain, business operators’ funding issues have surfaced since the termination of subsidies related to
COVID-19, and the digitalization of operations is being delayed. We will combine the Group’s BPO functions andhealthcare-related services and contribute to earnings improvements and the streamlining of operational duties. In fiscal
2022, we participated in the creation of a region-specific healthcare fund, but the construction and maintenance of
medical and nursing infrastructure is an important societal topic. We will work to solve societal issues through methods
including collaboration with regional financial institutions that support local areas.
In the Circular Economy domain, determining how to establish a highly profitable business model and achieve economic
value along with social value will become an important topic. We have now released a “Circular Economy Lease,” which
is a product that works to promote the realization of a circular society together with customers. Although the current
scope of the lease is limited to items such as personal computers, we will work to expand the scope and simultaneously
create both social and economic value.
In the Mobility domain, rather than simply pursue short term EV figures, we will work to build a coalition with alliancepartners in preparation for the expansion of the EV market. Overseas, we will expand business on a global basis in thelogistics domain by turning our equity-method affiliate Pacific Rim Capital into a consolidated subsidiary. In addition,
looking toward the expansion of these new business domains, we will strongly promote collaboration with partnercompanies and strengthen insufficient functions.

We aim for value creation and sustainable growth centered on trust and CSV
Since becoming president, I have strongly transmitted a message of wanting to become a corporate group that istrusted. At the same time, we clarified our Mission, Vision and Values, and worked to improve the awareness of each andevery employee. In the past year, we held Group-wide workshops, considered overlaying each individual employee’s
vision onto the Group’s Vision, and deepened their understanding of the Vision as something personal. Additionally, inorder to implement the Values that serve as our action guidelines to achieve the Vision, we have repeatedly conveyed the“10 RM Practices” (see chart below), which will lead to concrete actions, and I feel that this has enabled us to begin
sharing a direction and a specific way of moving forward.
We will deepen understanding of the relationship between our Mission of contributing to realizing a prosperous society
and sustainable growth and our daily operating activities. Achieving our Values and feeling that they connected to the
Vision has led to an increase in the number of people who see the Vision as something personal, but I would also like topersistently talk about the Mission beyond that. In order for the Group to continually develop, we must simultaneously
pursue economic and social value, earn the trust of customers and society, and become a necessary presence. I believethat our ideal vision means value creation and sustainable growth centered on trust and CSV.
6

Initiatives for human resources development and DX:
Human resources development means cultivating trust, and spending 300% of ourmoney and physical energy on development
To those of us in the service business, people are the most important asset, and the thing that we must spend the mostamount of physical energy on is development. The human resources sought by Fuyo Lease are, to sum it up, people who
are trusted. Although we have set a target to increase the per-person human resource development-related expenses to300% of the fiscal 2021 level within five years, it is important to triple the physical strength of people spent on training
and learning in addition to the monetary amount. Those at the top will spend three times the amount of physical energy
themselves, and those who come to understand will become missionaries who spread the message to spend physicalenergy. That is why I believe people who value trust will grow.
That is not a unilateral process. For example, it is important to listen carefully to what young employees are thinking,and to deepen dialogue while responding appropriately. I feel that by engaging in so-called “bouncing off ideas”
conversations with employees, they will be able to grow and relationships of trust will be built between us, while at thesame time I will become able to organize my own thoughts and gaining new ideas.
The same applies to diversity. By “bouncing off ideas” with people in different positions with different values, we canbecome aware of new ways of thinking and learn. Listening to the voices of various people including women andforeigners will result in the promotion of diversity and lead to the discovery and understanding of new social value. Thatis also a very valuable concept for the development of CSV which the Group cherishes.
There are two aspects to DX initiatives, which are “DX for customers” and “In-house DX.” “DX for customers” is highly
compatible with BPO/ICT, and is capable of meeting customers’ DX needs in combination with the functions of affiliatedGroup companies. Meanwhile, in businesses that solve customers’ burdensome tasks, we must promote “In-house DX,”
shorten lead times, streamline operational tasks and create new value to increase profit. We will visualize internal
operational processes, identify the issues, and proceed with digitalization. To do that, I think it is important to work on
improving the awareness of each individual Group employee and to make each of them view the Mission as something
personal.

To our Stakeholders:We aim to solve social issues and simultaneously achieve value extending into the
future and sustainable growth
The Medium-Term Management Plan fully incorporates the concept of CSV, which aims to jointly improve corporate
value by solving social issues through business. The growth strategy of the Fuyo Group is to aim for robust andsustainable profit growth by pursuing financial goals, or corporate value, and non-financial goals, or social value,equally. The plan declares our aim to develop our business, expand into new business areas, and pursue sustainablegrowth as a company while solving social issues. By firmly executing the current Medium-Term Management Plan, we
will achieve growth as a company and move forward toward our mission almost like walking continually towards thehorizon.
7

Going forward, we will continue to increase the trust of our shareholders, customers, partners, and employees who are
our stakeholders, build win-win relationships, and aim to be “Fuyo Lease, which is trusted and always chosen.” We hopethat you will look forward to the future of the Fuyo Lease Group.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

8

HOME

Sustainability

Fuyo Lease Group's CSV

Fuyo Lease Group’s CSV Management

Fuyo Lease Group’s CSV Management
Approach to CSV Management
As climate change, resource problems, and a host of social issues are growing more serious, the business environment ischanging rapidly, leading to change in the requirements of stakeholders and the role that the Fuyo Lease Group is
expected to play. Through CSV management, the Group aims to realize social value (resolution of social issues) andcorporate value (profit growth) simultaneously in order to help resolve major issues facing society as represented by the
Sustainable Development Goals (SDGs). Moreover, by continuously creating new value from a CSV perspective, we will beable to grow sustainably even in an uncertain business environment, helping to increase the Group’s corporate value
over the medium to long term, and ultimately realizing the Group’s mission. Through management centered on CSV, theFuyo Lease Group will resolutely strive to create new value by further expanding and evolving its business domains,
contributing to the realization of a prosperous society and sustainable growth.

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:

Organizational and Structural Support for Sustainable Value Creation"Integrated Report" PDF
download

Realizing sustainable growth through CSV management requires a system of human resources, organizations andgovernance to be built. The Fuyo Lease Group has formulated “Basic Policy on Systems that Support Sustainable Value
Creation,” which includes responding to climate change, respect for human rights, human resource strategy to enhancevalue, contributing to the community, approach to risk, and ensuring compliance. Through the implementation of thispolicy, we are building a strong foundation for promoting CSV management.
Basic Policy on Systems to Support Sustainable Value Creation

9

CSV Promotion System
To promote sustainability and CSV-related initiatives, the Group established the CSV Promotion Committee, which ischaired by the executive officer who is head of management departments, and has members made up of the heads ofmajor departments in the corporate division and heads of departments responsible for each business domain. The
committee formulates, promotes, and monitors strategies, indicators, and targets related to important issues
concerning sustainability and CSV, and discusses matters such as materiality and progress on non-financial targets in theMedium-term Management Plan. The content of discussions and reports of the committee are submitted to the
Executive Committee for deliberation, and the overall sustainability and CSV policy for the Group, and the status ofprogress, are reported at least once a year to the Board of Directors.

Major Matters Discussed in the CSV Promotion Committee
The CSV Promotion Committee met three times in fiscal 2022 and deliberated and reported on matters such as theGroup’s value creation story and materiality, progress toward non-financial targets and planned response for thefollowing fiscal year.

Major discussions and reports in fiscal 2022
July
2022

Main response items in the fiscal 2022 Integrated Report
The Fuyo Lease Group’s value creation story and materiality (important issues to beaddressed)
Report on environmental performance for fiscal 2021

January2023

Progress on non-financial targets and expected final results
Progress of management strategies in the Medium-term Management Plan

March
2023

Expected full-year performance on non-financial targets
Revised plan for fiscal 2023
10

Understanding of CSV in the GroupTo create shared value, all employees of the Group need to understand the concept of CSV, support the concept, and put
it into practice. In fiscal 2022, we conducted “Fuyo Vision×My Vision,” a workshop for all employees of Group companies
in Japan. The workshop deepened understanding of, and empathy for, the Group's CSV management and its Mission,
Vision and Value by comparing the visions (desired way of existence) of the Group and those of individual employees.

In-house level of understanding of CSV and the Mission, Vision, and Value

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

A workshop in progress

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

11

HOME

Sustainability

Fuyo Lease Group's CSV

Basic Policy on Systems to Support Sustainable Value Creation

Basic Policy on Systems to Support Sustainable Value Creation
Basic Policy on Systems to Support Sustainable Value Creation

Sustainability

In addition to meeting the expectations of society and our stakeholders, the Fuyo Lease Group is committed to building asustainable society and achieving sustainable growth as a company through our business operations, and to addressing
social issues such as the SDGs. To this end, we will position the concept of CSV as the foundation of our management andstrengthen it as a long-term strategy.

Fuyo Lease Group's CSV

1. Responding to climate change

Environmental Report

In response to climate change issues, the Fuyo Lease Group is working to reduce greenhouse gas emissions from its own
operations. At the same time, we recognize the growing demand for renewable energy and environmentally friendly
products and services as a business opportunity and are working to help our customers decarbonize.
In addition, as a measure to adapt to climate change, we are working to strengthen our resilience in the event of an
emergency by promoting BCP measures that assume risks such as restrictions on corporate activities due to an increasein natural disasters. We will work proactively to mitigate and adapt to climate change and achieve sustainable growth.

Social Report

2. Respect for Human Rights

Fund Procurement
through Sustainable
Finance

The Fuyo Lease Group will act in a manner that respects the dignity and basic human rights of all people, including
business partners, officers and employees, and will build a corporate culture filled with a spirit of respect for humanrights.

3. Human Resource Strategy to Enhance Value
The Fuyo Lease Group believes that "Human Capital" are its greatest asset. We respect each employee and his or her
individuality, and we believe it is important for employees to ''job satisfaction'' and ''motivated to work'', to growthrough their work, and to lead fulfilling lives both physically and mentally.
We also believe that the sustainable growth of the Group will be achieved by encouraging the growth of every employee
and maximizing the use of their talents and abilities, thereby simultaneously enhancing corporate value and creatingsocial value.

4. Contributing to the Community

Solving Social Issues
through BusinessGovernance andManagement
Each Group Company's
Environmental and Social
initiatives

Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

The Fuyo Lease Group recognizes its deep relationship with local communities, and we want to continue to growtogether while fulfilling our role as a good corporate citizen that contributes to the development of local communities.
The Group has established a social contribution policy and is engaged in social contribution activities mainly in the areasof "environment," "local communities," "academia and research," and "support for disaster-stricken areas," while
making use of the Group's know-how, products and services.

5. Approach to Risk
The Fuyo Lease Group anticipates a variety of risks that could arise in the course of business development and is taking
steps to address them. Details of the Group's business and other risks are disclosed in our Annual Securities Report, andthe status of our response to these risks is regularly reported to the Board of Directors.
12

6. Ensuring compliance
The Fuyo Lease Group has positioned thorough compliance as a fundamental management principle, and we areworking to strengthen and enhance the compliance system to ensure strict adherence to all laws, regulations and rules,
as well as to carry out honest and fair corporate activities that do not violate social norms.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

13

HOME

Sustainability

Fuyo Lease Group's CSV

Value Creation Process and Materiality

Value Creation Process and Materiality
Fuyo Lease Group’s Value Creation Process
The Fuyo Lease Group's value creation process, which emphasizes CSV (Creating Shared Value: the simultaneous
realization of corporate value and social value) management, is to achieve sustainable profit growth while solving social
issues in the areas of “environment” and “society and people” through business in various domains. To achieve thevision for 2030 under this process, the Medium-Term Management Plan Fuyo Shared Value 2026 concentrates investmentof management resources on the growth drivers selected from the multiple business domains the Group possesses andis engaged with emphasis on organizational and structural support for sustainable value creation, such as humanresource investment and DX, and building partnerships with customers.

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download14

Materiality
We have identified materiality as an important item in relation to the key elements of the value creation process ofenvironment, society and people, organizational and structural support for sustainable value creation and value creation
through partnerships. Non-financial KPI and targets for fiscal 2026, the final year of the medium-term management plan,
have been set for each materiality issue, and we monitor progress while moving forward on each materiality issue.

Identifying Materiality
STEP 1 Determining a vision for 2030
Based on our CSV approach, we discussed and determined a vision of how we want each business area in eachdomain to be in 2030, taking into account what the world will be like in 10 years’ time.

STEP 2 Considering important issues
While drawing up the medium-term management plan, we specified the 2030 Vision of each business domain
and, back casting from this, identified important issues where there are strong needs to create social value andbusiness opportunities.

STEP 3 Discussions in each domain and at management level
During discussions* on drawing up the medium-term management plan, we positioned non-financial issues withequal weighting to financial issues and discussed the suitability of each non-financial issue while taking into
account a long-term strategy.
* Discussions were carried out in a multi-layered manner throughout fiscal 2021, with outside directors taking part indiscussions over several occasions.

STEP 4 Setting non-financial KPI
As KPIs to monitor the progress of each important issue, we have set appropriate indicators and goals inalignment with the Medium-Term Management Plan Fuyo Shared Value 2026.

STEP 5 Discussion and approval at the Board of Directors
Discussed by the Board of Directors and approved by the Board of Directors based on the opinions of outside
directors.

15

Materiality for Fuyo Lease Group
The Materiality identification process shown above identified eight material issues to be addressed through our new
Medium-Term Management Plan Fuyo Shared Value 2026.
1. Contribution to the realization of a decarbonized society
2. Contribution to the realization of a circular society
3. Delivery of reassurance by ensuring health and welfare
4. Creation of new value creation time
5. Strategic human resources development
6. Diversity and inclusion
7. Health and productivity management, work-life balance
8. Value creation through partnerships

Targets and Results of Materiality (Creation of Social Value throughBusiness Activities)
Environment
1.Contribution to the realization of a decarbonized society
Non-Financial KPI

FY2022 Results

FY2026 Targets

CO₂ emissions reduction
contribution

220,000 t-CO₂ / year

500,000 t-CO₂

Amount invested in promoting
decarbonization*1¥56.4 billion

Total of ¥300.0 billion over fiveyears

Renewable energy power
generation capacity*2

515MW

1,000MW

Percentage of Group vehicles
that are EVs or FCVs
(percentage held by Fuyo Auto
Lease)

0.7%

30%

Amount of financing handled
for the promotion of
decarbonization*3¥5.3 billion

5-year cumulative total ¥ 12.0
billionRelevant
SDGs

16

2.Contributing to the realization of a circular society
Non-Financial KPI

FY2022 Results

Percentage of returned items
that are reused or recycled*4

100%

100%

Percentage of materials /chemicals contained in waste
plastics (from returned items)
that are recycled*4

24.7%

100%

FY2026 Targets

Relevant
SDGs

FY2026 Targets

Relevant
SDGs

Society and people
3.Delivery of reassurance by ensuring health and welfare
Non-Financial KPI

FY2022 Results

Number of new rooms
provided at elderly care homes

553 rooms

5-year cumulative total
1,330rooms

Management support-related
financing in medical andwelfare markets*5¥ 21.7 billion¥56.0 billion

4.Creation of new value creation time
Non-Financial KPIWork hours saved by ourcustomers

FY2022 Results+180,000 hours

FY2026 Targets

Relevant
SDGs+1 million hours compared to
FY2021

17

Organizational and structural support for sustainable value creation
5.Strategic human resources development
Non-Financial KPI
Human resource
development-related expenses(non-consolidated)

FY2022 Results

188%

FY2026 Targets

Relevant
SDGs

300% compared to FY2021

6.Diversity and inclusion
Non-Financial KPI

FY2022 Results

Percentage of female
employees in management
positions (non-consolidated)

30.9%

35%

Percentage of eligible male
employees who have taken
childcare leave*6 (nonconsolidated)

100%

100%

FY2026 Targets

Relevant
SDGs

FY2026 Targets

Relevant
SDGs

7.Health and productivity management, work-life balance
Non-Financial KPI

FY2022 Results

Percentage of employees aged
35 or over who have had ahealth examination (nonconsolidated)

100%

100%

Rate of taking annual paid
leave (non-consolidated)

93.5%

90%

Rate of taking the +Friday
system (non-consolidated)

89%

No quantitative target

Percentage of improvement inengagement indicators*7(consolidated)

3.48

No quantitative target

18Value creation through partnerships
8.Value creation through partnerships
Non-Financial KPI

FY2022 Results

Investment in venturecompanies that havetechnologies and services thatwill create new social value

Investment Record
JSH Co., Ltd.
EV Motors Japan Co.,
Ltd.
Japan Wind Tunnel
Manufacturing Inc.
H.I.F. Co., Ltd.

FY2026 Targets

Relevant
SDGs

No quantitative target*1 Applies to investments in renewable energy facilities, energy-saving facilities, electric vehicles (including charging equipment),
batteries, hydrogen and ammonia-related facilities, CO₂ separation and recovery technologies (CCUS, DAC), circular-related facilities,
ZEB / Green buildings, SAF and start-up companies.
*2 Applies to investments and project financing, etc., made in the Renewable Energy Generation Business (power generation capacity is
calculated based on ownership ratio or share)*3 Covers the Fuyo Zero Carbon City Support Program and the Fuyo 100% Renewable Electricity Declaration Support Program*4 Applies to leased (rental) assets returned to the Hachioji Technical Center of FGL Circular Network Co., Ltd.
*5 The balance of operating assets for financing related to FPS Medical (factoring for medical and nursing care receivables by Accretive)
and business succession.
*6 Childcare leave taken percentage is calculated as the ratio of the number of employees who took childcare leave during the relevant
fiscal year to the number of employees eligible for childcare leave during the relevant fiscal year (number of people who had a childwithin the fiscal year).
*7 In the employee opinion survey, eight questions (five-point assessment scale) that represent engagement as defined by the Fuyo
Lease Group (a relationship in which each employee links the Company's growth to their own growth and they contribute to eachother's growth), and the average response value was measured."Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

19

HOME

Sustainability

Fuyo Lease Group's CSV

Fuyo Lease Group and Its Stakeholders

Fuyo Lease Group and Its Stakeholders
The Fuyo Lease Group aims to solve social issues through its business operations as it paves the way to a sustainable
society and sustainable business growth, while responding to the expectations of its stakeholders.

Creation of Shared Value with Our Stakeholders
The Fuyo Lease Group provides various opportunities for engagement with stakeholders. By understanding various
social issues and stakeholders’ expectations for the Group accurately and in a timely manner, and by promoting Creating
Shared Value (CSV), we aim to contribute to the realization of a prosperous society and sustainable growth.

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

20

Participation in the United Nations Global Compact (UNGC)
The UNGC is an initiative in which companies and organizations demonstrate responsible and creative leadership to act
as good members of society and participate in the creation of a global framework for the realization of sustainablegrowth. Fuyo Lease signed the UNGC in January 2018. We agree to and continue to work toward the achievement of the
UNGC's Ten Principles* related to protecting human rights, eliminating unfair labor, responding to environmental issues
and anticorruption.
The Global Compact Network Japan, which is the local network of the UNGC, hosts subcommittees organized by theme
to discuss and exchange information with experts regarding the efforts of member companies and organizations. Since
fiscal 2019, we have participated in several subcommittees, and use the knowledge and best practices we have gained
from these subcommittees to promote sustainable business activities.
* The Ten Principles of the UNGC

Human Rights

Principle 1: Businesses should support and respect the protection ofinternationally proclaimed human rights; andPrinciple 2: make sure that they are not complicit in human rights abuses.
Principle 3: Businesses should uphold the freedom of association and theeffective recognition of the right to collective bargaining;

LabourPrinciple 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment andoccupation.
Principle 7: Businesses should support a precautionary approach toenvironmental challenges;

Environment

Principle 8: undertake initiatives to promote greater environmental
responsibility; andPrinciple 9: encourage the development and diffusion of environmentallyfriendly technologies.

Anti-Corruption

Principle 10: Businesses should work against corruption in all its forms,
including extortion and bribery.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

21

HOME

Sustainability

Solving Social Issues through Business

Solving Social Issues through BusinessFuyo Vision Stories

Sustainability

In Fuyo Vision Stories, we bring you stories of Fuyo Lease value creation from the perspective of society, customers andemployees.

Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental Report

Towards the Realization of a Decarbonized Society

Social Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives

Creating Time for New Value Creation

Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data

Creating Reassurance about Health and Welfare

Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

22

Products and services that contribute to the achievement of adecarbonized society
We entered the renewable energy power generation business in fiscal 2012 by opening our first solar power plant, andare actively promoting CO₂ emission reductions by providing customers with a variety of services. We also offer a fullrange of backup services that only the Fuyo Lease Group can, including the use of various subsidy programs andintroducing our customers to suppliers. We contribute to customers’ decarbonization by promoting the installation or
upgrading of renewable energy or energy-saving facilities and equipment.

Green Electricity Supply Services (PPA: Power Purchase Agreement)This service supplies CO₂ free, green electricity by installing solar power generation systems and operating andmanaging them over a contracted period.
Click here for details

Energy-saving equipment and subsidy-based leases
We offer energy-saving measures using leases.
Click here for details

ESCO (Energy Service Company) service

As an ESCO operator, we support total energy-saving activities.
Click here for details

Fuyo 100% Renewable Energy Declaration Support Program

We provide the financing program for companies and organizations participating in RE100 and the "100% Renewable
Energy Declaration RE Action".
Click here for details

Fuyo Zero-Carbon City Support Program

A financing program to promote decarbonization. This program supports zero carbon cities , the municipalities thathave pledged to have virtually zero CO₂ emissions by 2050.
Click here for details

Financing for renewable energy companies

We provide various financing services in the renewable energy field.
Click here for details

Renewable energy generation business

The Group is involved in operation of solar power plants, and participates in renewable energy projects in Japan andoverseas.
Click here for details

One-stop EV services

This is a service for companies that have decided to introduce EV, providing not only EV, but also solutions to various
related issues such as establishing recharging infrastructure and energy management, in a one-stop package.
Click here for details

23

Products and services that contribute to the achievement of a circularsociety
We are contributing to the creation of a closed-loop society by providing economic advantages to our customers throughvarious services, such as reusing or recycling items whose leases have expired and purchasing used assets owned bycustomers, as well as by promoting the 3Rs (Reduce, Reuse, and Recycle).

Circular Economy Lease

We provide services to achieve extended product life and better resource recycling by steadily reusing and recycling
lease assets.

PC Lifecycle Management (PC-LCM) Service

We conduct comprehensive services related to general PC operations.
Click here for details

PC Eco & Value lease

We offer leases for personal computers in the pursuit of economic and ecological benefits.
Click here for details

Personal computer rental

We offer a rental system that flexibly responds to technological innovations in rapidly changing personal computers.
Click here for details

Used personal computer purchasing service
We purchase used personal computers.
Click here for details

Used assets purchasing service

We purchase redundant equipment and idle assets.
Click here for details

Products and services that create new value creation time for customers
The need to address intensifying labor shortages and implement work-style reforms has made raising productivity into
an important management issue. Accordingly, we are helping customers transform their operations in terms of boththeir operations and systems by providing total solutions that enlist operational outsourcing and DX.

BPO Services

We provide BPO (Business Process Outsourcing) services to support business efficiency.
Click here for details

PC Lifecycle Management (PC-LCM) Service

We conduct comprehensive services related to general PC operations.
Click here for details
24

Products and services that contribute to solutions to social issues in themobility field
We are contributing to solutions to social issues in the mobility field, such as industry-specific challenges and climatechange, through services related to logistics mobility, such as logistics, vehicles, and warehouses.

Vehicles area
One-stop EV services

This is a service for companies that have decided to introduce EV, providing not only EV, but also solutions to various
related issues such as establishing recharging infrastructure and energy management, in a one-stop package.
Click here for details

Auto Leases

We provide total vehicle services that include vehicle procurement, tax, and insurance payments, vehicle
maintenance and inspections, and vehicle disposal at lease end.
Click here for details

Vehicle maintenance consignment businessThis service manages maintenance exclusively for heavy-duty vehicles.
Click here for details

Logistics area
Logistics and material handling equipment financing services

We provide introduction and financing services for automated material handling equipment as solutions to support
supply chain restructuring and to automate and reduce manpower in logistics warehouses.
Click here for details

Management support services for transportation companies

We provide services for management support issues unique to transportation companies, such as vehicle
procurement, business succession and workplace environment improvement.
Click here for details

Building Leases

We handle building leases for warehouses and distribution centers.
Click here for details

25

Products and services that contribute to solutions for challenges in the
Healthcare fields
We are building a one-stop service system that provides a wide range of solutions for businesses in medical and welfare
markets, including medical and nursing care providers and dispensing pharmacies, which are facing various issues suchas reduced income from medical practices, labor shortages, and a lack of successors, against the background of thedeclining birthrate, aging population, and the concept of the Regional Medical Care Vision.

Clinic launch support loan

We provide finance services that quickly provides funds for opening a clinic.
Click here for details

FPS Medical (a factoring service for medical and nursing-care receivables)

We provide asset utilization type finance services to medical institutions, elderly nursing-care providers, anddispensing pharmacies.
Click here for details

Fuyo Mediwell Support (dedicated media for medical and nursing care providers)

An informational website that provides support for solving the management issues of clinics (medical and dental) andnursing care providers.
Click here for details
For a comprehensive list of products and services of Fuyo Lease Group, please click here.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

26

HOME

Sustainability

Solving Social Issues through BusinessTowards the Realization of a Decarbonized Society

Towards the Realization of a Decarbonized Society
Towards the Realization of a Decarbonized Society
Realizing decarbonization of customers and society by providing various services to reduce CO₂ emissions

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business

The Company has been promoting the reduction of CO₂ emissions by providing customers with services since
establishing its first solar power plant and joining the renewable energy business in February 2013. In September 2018,
we became the first general lease company in Japan to participate in RE100, and now aim to simultaneously achievecarbon neutrality for the Group and RE100 by 2030.
We will promote a decarbonized society through efforts for our Group and services for customers and society.

Roadmap to Decarbonization

Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download27

Renewable Energy Projects on a Global Scale

Supporting Customers’ Introduction of Renewable Energy
The Group works actively on a system called Power Purchase Agreement, or PPA, as a decisive resource to promote theintroduction of renewable energy by customers. This is a system in which the Company owns and manages power
generation equipment in spaces such as within grounds and on building rooftops, and provides the generated electricity
to users of the facility’s electricity for a fee.

Installed PPA on the rooftop of TEIKOKU SEN-I’s Kanuma Plant
Fuyo Lease became involved with TEIKOKU SEN-I CO., Ltd. during the construction of the new building of Kanuma Plant
by handling the installation of solar power generation equipment on the rooftop. The green power generated is utilized
in the company’s manufacturing processes, which contributes to the company’s shift to renewable energy.

28

From Customers

TEIKOKU SEN-I CO., Ltd. Vice President Tatsuru Okamura
As a company that conducts disaster prevention business, we view measures against greenhouse gas effects as a
critical issue. We have set a goal of reduction CO₂ emissions by 30% by 2030 and are promoting a conversion to
renewable energy. We were able to swiftly receive a proposal from Fuyo General Lease for solving our issues andrequested a PPA scheme located on the rooftop attached to the newly constructed building of Kanuma Plant,
which is our main factory. We were able to begin operation in July of this year and have also received proposals
aimed at further decarbonization, for which we are incredibly grateful. Going forward as well, I hope they will
enhance collaboration even further as a reputable business partner.

From Executive Officers in Charge of Sales

Fuyo General Lease Co., Ltd. Managing Executive Officer Masaki Gonda
We helped with the PPA located on the rooftop of the Kanuma Plant as a solution for converting to renewable energy,
which is a managerial issue faced by TEIKOKU SEN-I. The company has set even higher targets aimed at decarbonization,so we will continue to propose the most effective measures based on various scenarios and commit full effort in order tobe of service. We constantly face challenges from the customer’s perspective. We will devote full effort to developing
employees who can swiftly provide complete proposals and contribute to customers’ sustainable growth.

29

Supporting the Social Implementation of Advanced EV Technology
through Investment in EV Motors JapanEV Community Bus (Launched in spring 2021)

In December 2022, we made an investment in EV Motors Japan Co., Ltd. which conducts development manufacturing
and sales focused on EV for commercial use. EV Motors Japan harnesses technology such as its in-house developed
motor control system, which greatly reduces electricity consumption and battery deterioration, and the development oflightweight vehicles which solve the issue of cruising distance. Develops commercial EVs for mass production equippedwith a world-class low electricity consumption rate, long battery lifespan, and safety features. Our investment isscheduled to be allocated to items such as funding for construction of mass assembly plants, and research anddevelopment required for the development of trial vehicles and demo vehicles in order to accurately address market
demand.

Creating a Carbon Credit through a Forestry Fund Investment
In July 2023, we made an investment as 1 of 10 Japanese companies in Eastwood Climate Smart Forestry Fund I, a forest
fund of ¥60.0 billion total formed by Eastwood Forests, LLC, which is an American forestry asset management company
under the Sumitomo Forestry Group. In the U.S., where markets and systems are advancing ahead of other regions, wewill contribute to the realization of a decarbonized society by creating high-quality carbon credits through appropriate
forest management, and increase the value of forests as natural capital, which includes the maintenance of biodiversity
and the preservation of water resources.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.
30

HOME

Sustainability

Solving Social Issues through Business

Creating Time for New Value Creation

Creating Time for New Value Creation
Creating Time for New Value Creation in Business
Editing a company’s message into a video format and transmitting it online helps to drastically reduce
communication costs and significantly improve productivity.
Human Centrix provides video production solutions for business use.

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental Report

Videos contain a large amount of information compared to text or static images, which is why the market is becoming
aware of streamlining of operational processes through the use of videos.
Human Centrix, a member of the Group, provides a service designed to create time for our customers' value creation. Our
new solution to enhance operational efficiency supports our customers’ DX efforts.

Value Creation through Video Production and Transmission Service
Values Generated by Human Centrix
We solve the various managerial issues faced by companies through video (digitalization) and transmission (going
online).
Through the use of video and transmission, we support reductions to communication costs and improvements to
productivity.

Social Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

Human Centrix Chief Executive Officer Kanji Nakamura
We provide both production and distribution, breaking through industry conventions (outsourcing) by offering
a one-stop service.
→ We provide videos of uniform quality with short delivery times using our know-how backed by a trackrecord of over 50,000 video productions.
Based on the concept of “easy to understand,” we create videos that are highly practical and accurately reflect
the customer's issues.
→ Videos are capable of conveying a large amount of information, and are optimal for improving complex
operational processes.
31

A service lineup for handling diverse needs

32Services are being utilized for a variety of applications, such as forcustomers or for in-house use
Case studies of service introduction

Marubeni Real Estate Development Co., Ltd. Administration Department Hiring Representative
We were introduced to Human Centrix and received a proposal as we were in the middle of considering renewing
our video for company introduction sessions targeting new graduates on the occasion of moving ourheadquarters in October 2022.
From the stage when I initially heard their presentation, I felt that they would be able to put together a video
that would vividly capture our company’s appeal and our workplace environment, and we decided toproactively consider their proposal.
Amid a tight schedule, the process from meeting to filming went smoothly, which resulting in the delivery of astylish and impactful video that I was satisfied with.

HIROSHIMA GAS Co., Ltd.
General Manager of Sales Promotion Department Tsuyoshi Miyamoto
For customers living in all-electrified housing, a video was produced that advertises the benefits of city gas in an
aim to propose a switch to city gas.
At Human Centrix, everything from video planning to production is internalized, so they responded quickly, andthe video was made just as we had envisioned in a short time frame.
Additionally, we sought to increase viewership by attaching a QR code* for the video to fliers left in customers’
mailboxes, which I strongly feel has led to an increase in opportunities stemming from the video.
* QR Code is a registered trademark of DENSO WAVE INCORPORATED.

33

Sumitomo Forestry Co., Ltd.
General Manager of North America Business Department, Global Housing,
Construction and Real Estate Division
Yujiro Yoshizawa
A subsidiary (SFC ASSET MANAGEMENT) under our department’s jurisdiction received an internal company
award, so I requested the production of a business introduction video that would be screened at the award
ceremony.
During this special occasion attended by executives and employees of each Group company, I felt that we wereable to promote the initiatives of the subsidiary and our division to the attendees in a way that was incredibly
easy to understand.
By outsourcing the video production, I avoided burdening my subordinates with work outside of their
specialized areas, and was able to make a high-quality video just like I had pictured, so I am satisfied.

Solving Customer Issues
From Executive Officers in Charge of SalesManaging Executive Officer in charge of Western Japan Area Hitoshi Nitami
Our sales representative accurately assessed the environmental changes in Hiroshima Gas’ sales promotions, and wereable to bridge that assessment to a service proposal matched to their needs.
Every day, we roleplay in presentations that imagine interactions between young sales representatives and customers.
We envision various scenarios and conduct research so that we can make the best proposals.
I will support the efforts of young employees so that they can improve themselves and become partners trusted bycustomers.

34

From Executive Officers in Charge of SalesManaging Executive Officer in charge of Tokyo Metropolitan Area Keiichi Kawabata
In response to the inquiry from the Sumitomo Forestry Group, our sales representative collaborated with Human Centrix
and was able to propose an optimal service.
We aim to become a trusted partner by proposing optimal solutions while always addressing customers’ concerns fromtheir perspective.
We will do our best to develop independent human resources who can envision scenarios on their own and help ourcustomers to solve their problems.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

35

HOME

Sustainability

Solving Social Issues through Business

Creating Reassurance about Health and Welfare

Creating Reassurance about Health and Welfare
Creating Reassurance about Health and Welfare through BusinessSupport for Regional Medical Institutions
Creation of a Healthcare Fund Specializing in the Tohoku region Creating Reassurance for People’s Health and Welfare
through Financing and Business Support for Regional Medical Institutions

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental Report

The Fuyo Lease Group, The 77 Bank, Ltd. and Nihon Keiei Group pooled their respective expertise and resources, andestablished the Tohoku Healthcare Support Co., Ltd. on April 6, 2023, to operate Japan’s first fund specializing in local
communities, and on April 28, 2023, formed the Tohoku Healthcare Support No.1 Fund for the healthcare field in the
Tohoku region to provide optimal solutions to the various management issues confronting medical and nursing careproviders in regional areas.

A Scheme to Achieve Stakeholder Value Creation
The Fuyo Lease Group not only provides financial support through the fund, we also offer full Fuyo Lease platform
services owned by the Group and help medical care providers to solve management issues.
Provision of reassurance through the maintenance and expansion of the regional medical care base, solution ofmanagement issues for operators and acquisition of new earning opportunities for the Fuyo Lease Group make it an
initiative that brings new value to all stakeholders.

Social Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download36

Vision of Value Creation and Non-Financial Targets
We will deliver reassurance by ensuring health and welfare through solutions that resolve the management issues facedby medical welfare providers.
By tackling this as a key issue, we will contribute to the sustainable realization of a prosperous society and a healthy life
for all people.

From Customers and Society
We would like to utilize the Fuyo Lease Group's extensive
knowledge and wide range of solution menus to face thehealthcare issues faced by the community and be close to ourcustomers.

The 77 Bank, Ltd.
General Manager, Consulting Promotion Division(currently General Manager, General Planning & Coordination Division)
Shigeru Tanabe
When we launched this fund, we were attracted by the Fuyo Lease Platform Concept, which was able to provide
for a varied selection of solutions tailored to the situations faced by healthcare providers. So, we approached
Fuyo Lease as a business partner that could share our philosophy.
Setting up a fund with three companies jointly investing was the first time our bank had done such a thing, butwhen Fuyo Lease provided with a detailed and speedy explanation of the values and such things as its wealth ofknowledge and expertise it could provide, explanations inside the bank were smoothly organized.
Population decline and the progression of the aging of society are social issues shared throughout Japan. We
will cooperate with the Fuyo Lease Group to make this initiative a model case and leading indicator for all ofJapan, and help to create or revitalize local communities.

37

Sales Divisions and Dedicated Divisions Collaborated to Provide Value toCustomers and Society
The Fuyo Lease Group provides solutions through collaboration between sales representatives in charge of major
companies and areas, who deepen their understanding of needs through relationships of trust with customers, anddedicated divisions, support divisions and Group companies, who constantly think of new ideas and propose solutions.
Developing people who are capable of providing these types of services is the source of the cherished value creation of
the Fuyo Lease Group.

From Person in Charge, Dedicated Divisions (Solution Provision)

Deputy General Manager, Healthcare Advisory & Business Division
Hiroyuki Hyodo
This was the first time Fuyo Lease had been involved in investment in a fund operating company, and with thecooperation of everyone inside and outside of the Company, we cleared issues one by one and made it through toclosing. The Tohoku Branch also build a relationship of deep trust with The 77 Bank, and even though the situation wasalways changing, we were able to respond smoothly.
Leveraging the knowledge gained from operating a fund specializing in local communities, we will expand and provide aselection of solutions for problems facing business operators in response to a super-aging society.

From Person in Charge of Sales in Tohoku Area

Deputy General Manager, Tohoku Branch
Osamu Hatakeyama
In 2018, after considering the significance of the Tohoku Branch and the sales strategy of establishing relationships withlocal financial institutions, we formed the internal project team, Team Tohoku, in conjunction with Group companies
and the dedicated divisions in the head office.
To be a business partner in regional financial institutions’ efforts to create local communities, we needed to build grassroots relations, gains customers’ trust and always put ourselves in customers’ situations and think about what we could
do for them.
We don’t want to stop at just this initiative, but join those from regional financial institutions that share the philosophy ofcreating local communities and continue to work to solve social issues.

38

From Officer in Charge of SalesManaging Executive Officer, East Japan & Chubu Area Officer
Takeshi Kodaira
I feel that the key point in concluding this project was the multi-layered relationships built up between members of thesales divisions, dedicated divisions, support divisions and Group companies.
I expect that the successful experience this time will lead to many realizations among employees responsible for sales
and that will connect to further growth. We want to provide environments that encourage people to continue to take onchallenges, "Go Where No One Has Gone Before," and support employees’ further growth.
Last year, the Fuyo Lease Tohoku Branch celebrated its 50th anniversary of opening. Gathering the resources of the Fuyo
Lease Group, rooting ourselves in the local community and continuing to turn our attention to issues facing
communities, we will help to energize creation of local communities and other communities.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

39

HOME

Sustainability

Environmental Report

Environmental Report
Environmental Philosophy/ Environmental Policy

Environmental Management

Climate Change Initiatives

Information disclosure based on the TCFD
recommendations

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

40

HOME

Sustainability

Environmental Report

Environmental Philosophy/ Environmental Policy

Environmental Philosophy / Environmental Policy
Environmental Philosophy

Sustainability

The Fuyo Lease Group constantly adopts environmentally-friendly business practices in order to realize a sustainable
society and promotes activities to address environmental issues in line with its environmental policy.

Fuyo Lease Group's CSV

Environmental Policy
1.Providing products and services that contribute to environmental conservation

Solving Social Issues
through Business
Environmental ReportSocial Report

We endeavor to provide products and services that contribute to environmental conservation by having each Group
company leverage the characteristics of their business activities.

Governance andManagement

2.Promoting resource and energy efficiency

Each Group Company's
Environmental and Social
initiatives

We are aware of the environmental burdens associated with business activities and endeavor to engage in resource andenergy saving activities and green procurement.

3.Contributing to the development of a circular society

Fund Procurement
through Sustainable
Finance

We promote the reuse and recycling of products no longer leased, restrict the generation of waste, and ensure proper
disposal of waste.

Participation in Initiatives
and Third-Party
Evaluation

4.Complying with environmental laws

Environment / Social Data

We comply with environment-related laws and agreements to which the Fuyo Lease Group has agreed.

Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:

5.Establishing an environmental management system
We promote continuous improvement of an environmental management system and set environmental targets as we
endeavor to respond to climate change, prevent environmental pollution, and conserve biodiversity.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

"Integrated Report" PDF
download© Fuyo General Lease Co., Ltd.

41

HOME

Sustainability

Environmental Report

Environmental Management

Environmental Management
Environmental management system
Within the Fuyo Lease Group, the President of Fuyo General Lease serves as Chief Executive, and the Director responsible
for the Creating Shared Value Promotion Office serves as Environmental Control Officer. The Group has anenvironmental management system structure that covers the Fuyo Lease Group companies.

Environmental management system structure

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

42

Environmental education
The Fuyo Lease Group regularly provides environmental training to deepen the understanding of the environmental
management system and to increase environment-related knowledge and skills.
The following table shows the implementation status for fiscal 2022.

Implementation status of environmental education (FY 2022)
Training
Employee Training

PeriodIn-house study sessions related to climatechangeOctober 2022
February 2023

Zero Waste Activities

From November 2022

Hachioji Technical Center Training
Program

Suspended in fiscal 2022 due to impact of
the COVID-19 pandemic

Sanden Forest Biodiversity Training
Program

Suspended in fiscal 2022 due to impact of
the COVID-19 pandemic

In fiscal 2022, in-house study sessions were held on the
climate change and the impact that climate change could
have on companies. As part of Zero Waste Activities, an inhouse initiative related to the circular economy, we worked
to enhance knowledge of a broad range of environmentrelated information through video materials on topics such as
explaining the circular economy and plastic problems.
Scene from an in-house study session

Environmental Risk Management
In addition to ensuring compliance with laws and regulations concerning waste disposal, we conduct on-site surveys ofcompanies contracted to dispose lease-expired properties in order to reduce environmental risks related to waste
disposal.

Proper disposal of lease-expired properties
Fuyo Lease complies with laws such as Waste Management and Public Cleaning Law (Waste Management Act) andappropriately disposes of lease-expired properties that cannot be reused.
Furthermore, in addition to systematically conducting surveys to examine the waste disposal approaches and recycling
activities performed by contracted disposal companies, we also thoroughly manage and utilize the manifests* ofindustrial waste management.
* Manifest: a document or electronic data for examining whether waste has been disposed of appropriately. Waste generating business
operators are required by the Waste Management Act to issue and collect, or register a manifest in order to confirm proper disposal ofwaste.

For more details, please refer to the appropriate waste disposal approaches being adopted by FGL Circular Network Co.,
Ltd. and FGL LeaseUp Business Service Co., Ltd., Group companies which have been contracted by Fuyo Lease to disposeof waste.

43Compliance with environmental laws and regulations
Inspection Result

Cases

Violation of law

None

Environment-related complaints

None

The Fuyo Lease Group, through various environmental education activities, strives to ensure that all its officers andemployees comply with environmental laws and regulations. Furthermore, the Group regularly conducts compliancechecks concerning environmental laws and regulations, whereby the status of compliance with the environmental laws
and regulations is confirmed. The fiscal 2022 compliance checks, covering the period between February 2022 andJanuary 2023, were inspected in March 2023. In the checks, it was confirmed that there were no cases constituting a
violation of laws and regulations, and that there were no cases involving environment-related complaints. Similarly, in
previous years, there were no cases constituting violation of environmental laws and no cases involving environmentrelated complaints.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

44

HOME

Sustainability

Environmental Report

Climate Change Initiatives

Climate Change Initiatives
The Fuyo Lease Group’s Strategy for Decarbonization
Gravity of climate change has deepened in conjunction with the increase in greenhouse gases and is a global issue.
Countries have been moving ahead on initiatives for decarbonization against the backdrop of the Paris Agreement, thepost-2020 international framework.
Addressing climate change and decarbonization is an important business opportunity for the Group, which focuses onand has expertise in businesses related to renewable energy, and is a core area of CSV, where it can simultaneously
achieve a high level of realizing social value and corporate value. In the medium-term management plan, we set
contributing to the realization of decarbonized society as an important issue (materiality), and made a declaration to
reduce CO₂ emissions through business activities.
The Fuyo Lease Group in engaged in initiatives to ease the impact of climate change and at the same time to growbusiness through a strategy based on the dual wheels of decarbonization of the Group as a form of risk reduction anddecarbonization of customers and society as a business opportunity.

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance

In 2019, we expressed support for the recommendations of the Task Force on Climate-Related Financial Disclosures(TCFD) and are disclosing information based on the TCFD recommendations. Please refer to “Information disclosure
based on the TCFD recommendations” for on how we conducted a scenario analysis to identify risks and opportunities
and set indicators and targets to reduce risks and capture opportunities, etc.

Information disclosure based on the TCFD recommendations can be found here

Decarbonization of the GroupTo reduce the volume of greenhouse gases emitted, we decided that we needed to carry out initiatives voluntarily, and in
2018 became the first general lease company in Japan to participate in RE100 and declared in 2021 that we could achievecarbon neutrality in by 2030.
RE100 is an international initiative whose members intend to switch to electricity from renewable sources for the energy
they need for their business operations. We have set medium- to long-term targets of achieving RE100 and becoming
carbon neutral (for Scope 1 and 2 emissions) by 2030.

Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

Use of renewable energy generated inhouse
In fiscal 2021, all of the electric power used at the Group’s head office building was shifted to RE100-compliant electricity
and our overseas affiliates were also encouraged to use renewable energy. Electric power from renewable energies wasintroduced in our multiple domestic business locations in fiscal 2022 and the percentage of electricity derived fromrenewable energy amounted to 39% of the entire Group’s consumption.
45

Initiatives for more efficient energy use
Each business site within the Group is advancing energy-saving and energy efficiency initiatives. Specific efforts include
setting air conditioning systems to appropriate temperatures, encouraging energy saving measures, and switching tohigh-efficiency lighting. We are also working to reduce the amount of fuel consumed by company cars by promoting safe,
environmentally friendly driving techniques and raising awareness among employees. In fiscal 2022, six electric vehicles(EV) were introduced as company vehicles as part of efforts to reduce the volume of fossil fuel use.
Total CO₂ Emissions (Scope 1, 2)*1 *2 *3 Total Energy Consumption*2 *3 *4

Electricity Consumption*2 *3

Total Gasoline and Diesel Consumed byCompany Vehicles*2 *5*1 CO₂ emissions are calculated using the emission coefficient specified in the Ministerial Ordinance on Calculation of Greenhouse Gas
Emissions Emitted by Specified Emitters. (Calculations concerning domestic electric power use the annual adjusted emission
coefficients for general power transmission and distribution businesses that supply power in the regions where the offices to which
the calculations apply operate. Calculations concerning overseas electric power use the emission coefficients of the specific country
published by the International Energy Agency [IEA]) However, Fuyo General Lease and companies of the Fuyo Lease Group are notconsidered to be specified emitters.
*2 The statistics are collected from all domestic offices of Fuyo General Lease Co., Ltd., Fuyo Auto Lease Co., Ltd., FGLGROUP Business
Service CO., Ltd., FGL GROUP Management Service Co., Ltd., FGL Circular Network Co., Ltd., FGL LeaseUp Business Service Co., Ltd.,
Aqua Art Co., Ltd., FGL Techno-Solutions Co., Ltd., Sharp Finance Corporation, Accretive Co., Ltd., INVOICE INC., FUJITA Co., Ltd., NOC
Outsourcing & Consulting Inc., YAMATO LEASE CO., LTD., WorkVision Corporation, and Human Centrix Co., Ltd. as well as overseas
affiliates and subsidiaries including Fuyo General Lease (USA) Inc., Fuyo General Lease (China) Co., Ltd., Fuyo General Lease (HK)
Limited, Fuyo General Lease (Asia) Pte. Ltd., Fuyo General Lease (Taiwan) Co., Ltd., Fuyo General Lease (Thailand) Co., Ltd., FGL
Aircraft Ireland Limited, Aircraft Leasing and Management Limited, FGL Aircraft USA Inc., and Pacific Rim Capital, Inc. For the Fuyo
Lease Group companies, figures from before the figures began to be recorded are not indicated.
*3 Electricity usage has been estimated for some locations. The estimation method is based on multiplying the area of the site subject toestimation by the electricity consumption per area of the Fuyo Lease head office, the entire building of the site subject to estimation,or the head office of the site subject to estimation.
*4 Energy consumption is calculated using unit heating values stipulated by the Act on Rationalizing Energy Use.
*5 In addition to values shown in the graph, 602kWh of electricity and 664.75 kg of hydrogen fuel were used.

Adapting to climate change
The Fuyo Lease Group is not only engaged in mitigation activities for climate change, but the Group is also carrying out
adaption measures for it. We have a business contingency plan in place for responding to extreme weather, which
includes measures taken to prepare for massive flooding that could occur at our business sites, or data centers, and weare working to minimize risks.
46

Decarbonization of Customers and Society
The Group is working to reduce CO₂ emissions through the installation and replacement of renewable energy andenergy-saving equipment and devices for its customers, positioning this as an important contribution to reduction thatthe leasing business can make.

Energy Conservation via Products and Services
We have partnered with energy-saving equipment manufacturers, construction companies, and companies in othervarious sectors to help customers save energy through the ESCO service and other programs. The ESCO service provides
everything needed to improve energy efficiency, including technology, equipment, personnel, and funding, and achievesenergy conservation without compromising a customer's current environment or convenience. As the ESCO service
provider, we receive a portion of the actual energy cost savings generated through the service as compensation. In
addition, we help our customers reduce costs and CO₂ emissions by introducing various energy saving solutions tailoredto their energy usage. Examples of the solutions include energy-saving control and operational improvement for airconditioning systems and LED lightings, and subsidized leasing.

Promotion of Renewable Energy
As climate change risks increase, the renewable energy market continues to grow with a focus on solar, wind, biomass,
small and medium hydro, and geothermal power. Fuyo Lease contributes to the spread of renewable energy byproviding customers with a variety of optimal power generation facility installation plans combined with various
financing schemes. Our offerings include participation in large-scale power generation projects and green power supply(PPA) services, such as installing solar power generation systems on customers' facility roofs or idle land and directly
supplying the generated green power to customers. All these are based on the expertise we have accumulated throughour own power generation business.
At the same time, we are contributing to further expanding the introduction of renewable energy by forming businessalliances with venture companies that have advanced renewable energy-related technologies, and supporting
industrialization and commercialization.

Initiatives in the Renewable Energy Generation Business
The Fuyo Lease Group launched its renewable energy
generation business in FY2012, and now supplies
renewable energy to local communities. In fiscal
2021, we focused our efforts in Japan primarily on
solar and wind power generation, while overseas, we
joined a solar power generation business in the U.S.
In fiscal 2022, we promoted large-scale overseas
projects, focused on Europe and the United States,
and renewable energy generation capacity was 515
MW.

Hornsea One Offshore Wind Power Plant (U.K.)

Green Power Supplied (Output) / CO₂ emissions reduction contribution

47

Promoting Renewable Energy-Related Infrastructure
We offer two programs that provide financial support to companies and organizations working toward
decarbonization: the Fuyo 100% Renewable Electricity Declaration Support Program, and the Fuyo Zero Carbon
City Support Program.
The Fuyo 100% Renewable Electricity Declaration Support Program is a preferential financing program forbusinesses and organizations that have joined RE100 and the Renewable Energy 100 Declaration RE Action. The
program is aimed at encouraging the introduction of renewable energy and energy-efficient equipment.
Click here for details
The Fuyo Zero Carbon City Support Program is a donation-style finance program to support the decarbonizationof municipalities that have declared to have zero carbon dioxide emissions by 2050 (zero carbon cities). This is
an initiative where a donation equivalent to 0.2% of a lease contracted amount is donated to an organizationthat contributes to the promotion of zero carbon cities. It is conducted in collaboration with customers thathave introduced equipment or machinery for decarbonization in municipalities that have declared themselves
as zero carbon cities. The program has been used by many customers throughout Japan and was chosen by the
Ministry of the Environment as a project of certified excellence in the 2023 ESG Leasing Promotion Project.
Click here for details48

Providing Support for Investments in Renewable Energy-Related Technologies andTheir Commercialization
In order to contribute to the further expansion of renewable energy introductions, we provide
commercialization support to venture companies possessing cutting-edge renewable energy technologies
through investments and business collaborations.

Major Support Results
Investment
TimingPartner

Description

June 2018

Exergy Power Systems

Development and manufacture of nextgeneration energy storage systems

Mar. 2019

NExT-e Solutions

Provision of battery management
systems that utilize advanced battery
control technologies

Feb. 2020

Girasol Energy

Development of IoT platforms for the
maintenance and management of solar
power facilities

Investment
TimingPartner

Description

Oct. 2020

Tsubame BHB

Development manufacturing
technology for distributed productionof ammonia under low-temperature,
low-pressure conditions

Oct. 2021

i GRID SOLUTIONSEngaged in energy management,
Virtual Power Plant (VPP), and electric
power supply businesses

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

49

HOME

Sustainability

Environmental Report

Information disclosure based on the TCFD recommendations

Information disclosure based on the TCFD recommendations
Fuyo Lease Group is committed to the mitigation of climate change by reducing the GHG emissions of its business
operations. At the same time, the Group’s business activities are based on the consideration of the risks andopportunities that climate change brings to the Group’s business environment. Aware of the importance of correctly
communicating to our stakeholders the impact of climate change on us, we expressed support for the recommendationsof the Task Force on Climate-Related Financial Disclosures (TCFD*1) in May 2019.
*1Task Force on Climate-Related Financial Disclosures (TCFD)

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental Report

Established in December 2015 by the Financial Stability Board at
the behest of the G20 Finance Ministers and Central Bank
Governors Meeting.
In June 2017, it released recommendations outlining a frameworkfor disclosing information on the finance-related risks andopportunities created by climate change.

Social Report

GovernanceFund Procurement
through Sustainable
Finance

Risk Management
Strategy
Indicators and Targets

GovernanceFuyo General Lease Group has formulated the Basic Policy on Systems to Support Sustainable Value Creation as ourfundamental thoughts on climate change problems and set up the CSV Promotion Committee to move ahead on efforts
in this area. The committee is chaired by the executive officer who is head of management departments, and has
members made up of the heads of major departments in the corporate division and heads of departments responsible
for each business domain. The committee formulates, promotes, and monitors strategies, indicators, and targets related
to important issues concerning climate change. The content of discussions and reports of the committee are submitted
to the Executive Committee for deliberation, and the reported at least once a year to the Board of Directors.

Governance andManagement
Each Group Company's
Environmental and Social
initiatives

Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download50

Related Page
Fuyo Lease Group’s CSV Management

Risk Management
We believe that climate change risks are a category of managerial risks that should be managed, and we are managing
these risks using an integrated risk management system. More specifically, the Corporate Planning Division is the risk
management department that directs the Creating Shared Value Promotion Office, which is the department in charge ofrisks, regarding risk management whenever appropriate. The Creating Shared Value Promotion Office monitors majorrisks related to climate change that may affect the Fuyo Lease Group and reports any risks that have occurred
immediately to the risk management department, receives guidance, and takes appropriate action.

Strategy
As countries work to reduce greenhouse gases amid worsening climate change, business environments are rapidlytransforming toward decarbonization through society as a whole. The Fuyo Lease Group identified risks and51

opportunities through a scenario analysis and is moving forward on a dual wheel decarbonization strategy ofdecarbonization of the Group as a form of risk reduction and decarbonization of customers and society as a business
opportunity.
See Climate Change Response details on the Fuyo Lease Group’s decarbonization strategy and initiatives.
Click here for Climate Change Response

Climate-Related Scenario Analysis
The Group uses scenario analysis methods to forecast and analyze changes in the external environment as of 2030 inaccordance with the framework proposed by the TCFD*1 to understand the risks and opportunities and financial impact
of climate change on business activities in the future. To ensure that the analysis is based on a variety of climate changerelated scenarios, the Group conducted its assessment based on two climate change scenarios: the 1.5°C scenario, which
is sufficiently lower than the 2°C target of the Paris Agreement, and the 4°C scenario.

Change in global average temperatures

Source: Created by Fuyo Lease based on IPCC Fifth Assessment Report WG1
As the scope of our business activities is broad and varied, we started our analysis by identifying impact over the entire
Group, and then carried out scenario analysis focused on the Real Estate domain, which is large in terms of assets, andon three domains containing businesses whose characteristics mean they are particularly susceptible to the impact ofclimate change (Energy & Environment, Mobility, and Aircraft).

Correlation Between the Severity of the Impact of Climate Change and the Group’s
Businesses

Climate Change Risks and Opportunities
Climate Change Risks*2
In regard to impact over the entire Group, we identified an increase in costs for the achievement of RE100 and carbon
neutrality due to the introduction of a carbon tax as a risk. However, as a result of calculating the monetary amount of
this impact based on the Group’s CO₂ emissions, we recognize that the financial impact of this risk is minor.
Additionally, the risks in each domain identified as being particularly susceptible to the impact of climate change are as
follows.
52

Effect on Our Operations
DomainGroup-wide

Category

Transition
risks

Transition
risks

Business
Summary

Timeframe

Introduction of acarbon tax(policies andlegal regulations)

Risk of anincrease in costs
for theachievement ofRE100 andcarbonneutrality due tothe introductionof a carbon tax

1.5°C

4°C

Mediumto longterm

Minor

Minor

Decline incompetitivenessdue to changes
in customer
preferences(markets)

Risk of a decline
in profitability
and credibility as
a debtor if
properties thathave been
invested inthrough realestate financing
transactions,etc., are slow toadapt toenvironmental
measuresMediumto longterm

MediumMinor

Increasingly
serious natural
disasters (acute)

Risk of rises ininsurance
premiums due tothe increasing
frequency andintensification ofnatural disasters

Short-tolong-term

Minor

Minor

Institutionalchanges toenergy purchasesystems (FIT,
FIP), etc. (policy
and legal
restrictions)

Risk of decreases
in revenue fromelectric powersales, increases
in operationalcosts, etc. in theevent ofunexpected
institutionalchanges

Short-tolong-term

MediumMediumChanges in thebusiness
environment
around therenewableenergygeneration
business(markets)

Risk of decreases
in revenue fromelectric powersales due torestrictions on
outputMediumto longterm

MediumMediumIncreasingly
serious natural
disasters (acute)

Risk of rises ininsurance
premiums due tothe increasing
frequency andintensification ofnatural disasters

Short-tolong-term

MediumMediumReal EstatePhysicalrisks

Transition
risks

Energy &Environment

Physicalrisks

Impact by Scenario

53Effect on Our Operations
DomainMobility

AircraftCategory

Business
Summary

Timeframe

Stricterregulation of CO₂
emissions (policy
and legal
restrictions)

Risk of adecrease indemand for thelease ofconventional
diesel- andgasolinepowered
vehicles due to adecrease indemand forgasolinepowered
vehiclesfollowing thetightening of CO₂
emissions
regulations, etc.

Changes in thebusiness
environment(markets)

Impact by Scenario
1.5°C

4°C

Mediumto longterm

MediumMinor tomediumRisk of adecrease in theresale prices ofgasoline vehicles
in accordancewith a shift to EV

Mediumto longterm

MediumMinor

Decrease inmaintenancerevenues(technology)

Risk of adecrease in sales
and revenues
related tomaintenance inaccordance witha shift to EV

Long-term

MediumMinor

Decline inaircraft demand
due to stricter
regulations(policy and legal
restrictions)

Risk of adecrease in lease
revenues due toa decline indemand foraircraft following
the tightening of
CO₂ emissions
regulations, etc.

Mediumto longterm

Minor

Minor

Changes in thebusiness
environment(markets)

Risk of adecrease inprofits resulting
from a fall in theresale prices ofold model
aircraft after thetermination of
the lease period
in accordancewith the shift tofuel-efficient
aircraftMediumto longterm

MediumMinor

Transition
risks

Transition
risks

54

Definitions of time frames

Short-term: Present-2025; medium-term: 2026-2030; long-term: 2031-2050

Definitions of impact (monetary impact on our consolidated gross profit in 2030)

Major: Greater than 3 billion yen; medium: 100 million-3 billion yen; minor: Smaller than 100 million yen*2 In analyzing the 1.5°C scenario, there were some items where external information was insufficient, so data from the 2°C scenario wasused.

Climate Change Opportunities*3
We have positioned the creation of social value through solutions to climate change issues as an important business
opportunity and in our Medium-Term Management Plan Fuyo Shared Value 2026, we have formulated strategies thatincorporate the global aim of keeping temperature rises under 1.5°C. Within this, we are disclosing the items that theGroup is being particularly active in engaging as opportunities.
Effect on Our Operations
DomainCategory

Rise indemand forrenewableenergy(products,
services, andmarkets)
Energy &Environment

Mobility

Opportunities
Business
opportunities
created bynewtechnologies,
new systems,
etc.
(products,
services, andmarkets)
Opportunities
Rise indemand forelectric
vehicles(markets)

Rise indemand forservices
related toelectric
vehiclesBusiness
Summary

Timeframe

Increase of
initiatives forrenewableenergy projects
in JapanImpact by Scenario
1.5°C

4°C

Short-tolong-term

Major

Major

Increase of
initiatives forrenewableenergy projects
overseas

Short-tolong-term

Major

MediumIncrease of
initiatives for
new areas ofbusiness such as
secondaryenergyShort-tolong-term

Major

MediumShort-tolong-term

MediumMediumPromotion of
one-stop
services forelectric
vehiclesPromotion ofpartnershipwith carmanufacturers
and dealers,and alliancestrategies withpower
companies,
trading firms,
etc.
Retention ofmaintenance55Effect on Our Operations
DomainCategory(products
and services)

Aircraft

Opportunities

Introductionof new
technologies
related toaircraft andthe formationof newmarkets(products
and services)

Business
Summary
facilities andengineers
through thebuilding of amaintenancenetwork
Promotion of
FCV before
othercompanies do
Expansion of
the businessdomainCapture ofopportunities
regardingexisting
products andincrease inprofitability
throughinvestment inandcooperationand synergies
withperipheralbusinesses
Venturecapitalinvestment
andcooperation in
new areas oftechnology(sustainableaviation fuel[SAF],hydrogen /electric /eVTOL [electric
vertical takeoff
and landing]aircraft, etc.)

Timeframe

Mediumto longterm

Impact by Scenario
1.5°C

4°C

MediumMediumDefinitions of time frames

Short-term: Present-2025; medium-term: 2026-2030; long-term: 2031-2050

Definitions of impact (monetary impact on our consolidated gross profit in 2030)

Major: Greater than 3 billion yen; medium: 100 million-3 billion yen; minor: Smaller than 100 million yen*3 In analyzing the 1.5°C scenario, there were some items where external information was insufficient, so data from the 2°C scenario wasused.

About the Impact on the Group’s BusinessOur analysis shows that for both the 1.5°C and 4°C scenarios, the impact of climate change risks on the Group’s businesswill be limited, while the opportunities will be great. It also revealed that although both scenarios are expected to resultin an increase in consolidated gross profit, there is more potential for an increase in profit in the 1.5°C scenario.

56

Perspective under 1.5°C scenario

Perspective under 4°C scenario

Indicators and Targets
The Group recognizes that climate change-related risks and opportunities will have a significant impact on the Group’sbusiness activities and is proactively responding from both aspects of promoting decarbonization of the Group anddecarbonization of customers and society through business.
From the perspective of the Group’s promotion of decarbonization, in 2018 we became the first general lease company inJapan to participate in RE100, starting initiatives to convert to renewable energies for electricity consumption and in
2021 declared an intention to achieve carbon neutrality by 2030.
Moreover, as a Group with a wide-ranging business domain and customer base, we made achievement ofdecarbonization a Materiality KPI as we believe contribution to decarbonization of customers and society throughbusiness is an important issue, and set contribution to CO₂ reduction as a non-financial target to be achieved throughthe installation and replacement of renewable energy and energy-saving equipment and devices for its customers. We
will promote decarbonization of customers and society in such ways as expanding use of renewable energies in the
power generation business and strengthening financing of EV and FCV, while at the same time capture profits.
We have determined indicators and targets for both decarbonization of the Group to reduce risk and decarbonization ofcustomers and society as a business opportunity.

57

Indicators and targets for risks: Decarbonization of the GroupFY2030 Targets

FY2024 Targets

FY2022 Results

RE100 target*4(Percentage ofenergy used that isrenewable energy)

100%

50%

39%

CO₂ emissions*4(Scope 1 and 2)

Achievement ofcarbon neutrality

Compared to
FY2020 30%
reduction

Compared to
FY2020 15%
reduction

Emissions 1,715 tCO₂

*4 The scope includes Fuyo General Lease and its consolidated subsidiaries.

Indicators and targets for opportunities: Decarbonization of customers and society
Non-financial goals (excerpt of climate change-related targets)
FY2026 Targets

FY2022 Results

CO₂ reduction
contributions

500,000 t-CO₂ / year

220,000 t-CO₂ / year

Amount invested
in promoting
decarbonization*5¥300.0 billion¥56.4 billion

Renewable energy
generation
capacity*6

1,000MW

515MW

Percentage ofGroup vehicles
that are EVs or
FCVs*730%

0.7%

Amount offinancing handled
for the promotionofdecarbonization*8¥12.0 billion¥5.3 billion*5 Applies to investments in renewable energy facilities, energy-saving facilities, electric vehicles (including charging equipment),
batteries, hydrogen and ammonia-related facilities, CO₂ separation and recovery technologies (CCUS, DAC), circular-related facilities,
ZEB / Green buildings, SAF and start-up companies.
*6 Applies to investments and project financing, etc., made in the Renewable Energy Generation Business (power generation capacity is
calculated based on ownership ratio or share).
*7 Percentage held by Fuyo Auto Lease.
*8 Covers the Fuyo Zero Carbon City Support Program and the Fuyo 100% Renewable Electricity Declaration Support Program.

58

Reference: Environmental Data
The Group’s CO₂ emissions volumes and other important environmental data for the past 10 years are as follows.
2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Scope1

192

159

153

163

770

707

688

603

584

558

Scope2

956

1,110

1,045

1,089

1,273

1,197

1,283

1,414

872

1,157

Scope1+2

1,148

1,269

1,199

1,253

2,043

1,904

1,971

2,016

1,455

1,715

Scope3*11

1,246,345

1,243,298

1,420,896

1,639,334

1,768,197

2,789,556

2,866,387

2,372,283

2,471,642

2,149,492

CO₂ emission intensity(Scope1, 2) (t-CO₂ / 100
millions of yen)

0.31

0.33

0.30

0.32

0.36

0.36

0.29

0.28

0.22

0.25

Renewable energy
power generation
capacity (MW)*12

23

48

77

86

111

149

229

283

318

515

CO₂ emissions reduction
contribution due torenewable energy power
generation (t-CO₂)

8,910

22,236

39,636

54,11548,25869,51485,577

147,574

153,442

210,782

CO₂ emissions reduction
contribution due toother business (t-CO₂)

-

-

-

-

-

-

-

-

-

9,373

CO₂
emissions(t-CO₂)*9*10*9 Electricity usage has been estimated for some locations. The estimation method is based on multiplying the area of the site subject toestimation by the electricity consumption per area of the Fuyo Lease head office, the entire building of the site subject to estimation,or the head office of the site subject to estimation.
*10 Adjusted CO₂ emissions volumes are calculated using the emission coefficient specified in the Ministerial Ordinance on Calculation ofGreenhouse Gas Emissions Emitted by Specified Emitters. (Calculations concerning domestic electric power use the annual adjusted
emission coefficients for general power transmission and distribution businesses that supply power in the regions where the offices
to which the calculations apply operate. Calculations concerning overseas electric power use the emission coefficients of the specificcountry published by the International Energy Agency [IEA]). The statistics are collected from Fuyo General Lease Co., Ltd. and all
consolidated subsidiaries. For overseas affiliates and subsidiaries and Group companies, figures from before figures began to berecorded are not included.
*11 Scope 3 emissions are calculated based on Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply
Chain (Ministry of the Environment and Ministry of Economy, Trade and Industry Government of Japan).
Up to fiscal 2017, the data was calculated using emissions unit values from the Database for Emissions Unit Values for Accounting ofGreenhouse Gas Emissions, etc., by Organizations throughout the Supply Chain (Ver. 2.6). From fiscal 2018, the data was calculatedusing emissions unit values from the Database for Emissions Unit Values for Accounting of Greenhouse Gas Emissions, etc., by
Organizations throughout the Supply Chain (Ver. 3.0) and LCI Database IDEAv2 (For Calculating Greenhouse Gas Emissions in the
Supply Chain).
From fiscal 2021, the data was calculated using emissions unit values from the Database for Emissions Unit Values for Accounting ofGreenhouse Gas Emissions, etc., by Organizations throughout the Supply Chain (Ver. 3.2) and LCI Database IDEAv2 (For Calculating
Greenhouse Gas Emissions in the Supply Chain).
From fiscal 2022, the data was calculated using emissions unit values from the Database for Emissions Unit Values for Accounting ofGreenhouse Gas Emissions, etc., by Organizations throughout the Supply Chain (Ver. 3.3) and LCI Database IDEAv2 (For Calculating
Greenhouse Gas Emissions in the Supply Chain).
The statistics are collected from the Fuyo Lease Group and calculations cover all 15 categories.
*12 Covers investments made in the Renewable Energy Generation Business, project financing, etc. (power generation capacity is
calculated based on ownership ratio or share). From fiscal 2021, figures have been adjusted to include projects still in development.

Related Pages
Environment / Social Data
Participation in Initiatives and Third-Party Evaluation
Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.
59

HOME

Sustainability

Social ReportSocial Report
Responding to Human Rights

Sustainability

Human Rights Policy

Fuyo Lease Group's CSVRespect for Human Rights

Solving Social Issues
through Business

Relationship with Customers

Environmental Report

Improving Customer
Satisfaction

Social Report

Relationship with Shareholders

Each Group Company's
Environmental and Social
initiatives

Concept of IR

Governance andManagement

Communication with Our
Shareholders and Investors

Shareholder Returns andStatus of Shares

Participation in Initiatives
and Third-Party
Evaluation

Relationship with Regional Community
Approach to Social
Contributions

Community Engagement

Donation Activities

Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:

Relationship with Employee
Human CapitalFund Procurement
through Sustainable
Finance

Diversity & Inclusion

Building a Better Workplace

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

"Integrated Report" PDF
download

Employee HealthManagement© Fuyo General Lease Co., Ltd.

60

HOME

Sustainability

Social Report

Fuyo Lease Group Human Rights Policy

Fuyo Lease Group Human Rights Policy
Fuyo Lease Group’s mission is to contribute to the realization of a more prosperous society and it’s sustainable
development by boldly taking on the challenge of creating new value through developing and expanding our business.
We have established three visions (what we wish to achieve) to enable us to become a company group that is highly
regarded by a multitude of stakeholders.

Visions

The group that anticipates social changes and takes on the challenge of yet unseen issues
The group that is trusted by customers and works together to solve social issues
The group that grows with employees by supporting the challenges and growth of each employee

Fuyo Lease Group positions CSV (Creating Shared Value) which simultaneously enables solutions to social issues andimprovement of corporate value at the center of our management policy. We are promoting the medium-term
management plan “Fuyo Shared Value 2026,” and incorporate “Business and Human Rights” as one of our main CSV
management measures.
Recognizing the possibility that the business activities we conduct could potentially have an adverse impact on humanrights, Fuyo Lease Group has established this human rights policy (this “Policy”) in order to clarify our stance as acompany that respects human rights. Fuyo Lease Group will, in accordance with this Policy, contribute to the realizationof a society that respects human rights through our business activities.
This Policy was approved by the Board of Directors after deliberation by the Executive Committee.

1.Scope of Application

This Policy applies to officers and employees of Fuyo Lease Group (including temporary employees and contract
employees; collectively the “Employees”). We also expect that our customers, partner companies, and all otherstakeholders of Fuyo Lease Group will respect this Policy.

2.Upholding International Standards

Fuyo Lease Group will uphold international standards on human rights, such as the “International Bill of Human
Rights (Universal Declaration of Human Rights and International Covenants on Human Rights)” and the “ILO
Declaration on Fundamental Principles and Rights at Work,” and will also fulfill our responsibility to respect humanrights under the “Guiding Principles on Business and Human Rights” and “Children’s Rights and Business Principles.”In addition, Fuyo Lease has endorsed and signed the “United Nations Global Compact (UNGC).” We also support the
UNGC’s 10 principles related to the 4 areas of “ensuring human rights,” “eliminating unfair labor,” “addressing
environmental issues,” and “preventing corruption” and will continue striving to realize the principals.

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

3.Compliance with Laws and Regulations

Fuyo Lease Group complies with the laws and regulations applicable in each country and region where we conductbusiness activities. If the laws and regulations in a country or region differ from the human rights standards
recognized internationally, we pursue means to respect internationally recognized human rights standards.

61

4.Human Rights Issues in Business Activities(1) Forced Labor and Child Labor

Fuyo Lease Group does not tolerate forced labor or child labor or any form of modern slavery.

(2) Discrimination

Fuyo Lease Group respects the diversity of individuals and all basic human rights. We do not engage in any actionthat violates human rights, and we do not tolerate discrimination based on race, religion, gender, age, nationality,
sexual orientation, disability, or other factors.

(3) Labor

Fuyo Lease Group respects the freedom of association and the right to collective bargaining that Employees holdin labor-management relations. We will protect labor rights, reduce excessive working hours, and implement
other necessary measures in accordance with applicable laws and regulations. We will establish a work
environment where Employees can continue to work healthily, safely, and comfortably in an atmosphere ofmutual respect without harassment or excessive work, and we will seek to create a corporate culture in which adiversity of personnel can thrive.

5.Human Rights Due Diligence

Fuyo Lease Group recognizes the possibility that the business activities we conduct and the services we provide could
potentially cause or contribute to an adverse impact on human rights or become linked to such an impact. Fuyo
Lease Group will conduct appropriate human rights due diligence to identify and assess any actual or potential
adverse impact on human rights in relation to our business activities and to prevent and mitigate any such impact.

6.Grievance Mechanisms and Remedies

Fuyo Lease Group will strive to establish a mechanism for receiving requests for consultation and reports regarding
human rights and for remediating and rectifying such pertinent issues in order to deal with human rights issues in ourbusiness activities. If it is found that our business activities could potentially cause or contribute to any adverse
impact on human rights, or if it becomes evident that our business activities are linked to such an impact, we willpromptly take remedial measures and strive to remedy the issues.

7.Dialogue with Stakeholders

Fuyo Lease Group recognizes the importance of understanding any adverse impacts on human rights from theperspective of the affected people and taking appropriate measures to correct them. We will seek to advance andimprove measures for human rights through engagement and dialogue with stakeholders.

8.Education and Training

Fuyo Lease Group will distribute this Policy to all Employees and provide continued training to ensure that everyone
understands this Policy and can act in accordance with this Policy in their own individual duties.

9.Information Disclosure

Fuyo Lease Group will disclose information on our website and via other appropriate means regarding the initiatives
based on this Policy.
Established: May 18, 2022

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

62

HOME

Sustainability

Social Report

Respect for Human Rights

Respect for Human Rights
Expectations toward respecting human rights for stakeholders

Sustainability

The Fuyo Lease Group respects the rights of all its stakeholders (including board members, and employees, customers,
partner companies in all business areas, local communities, etc.) and is engaged in initiatives related to the promotion ofhuman rights. We actively encourage our employees and business partners to have a better understanding of the Group's
human rights policy.
Specifically, the Fuyo Lease Group's Human Resources Division provides instruction and support to all departments andoffices as well as group companies on planning, proposal and promotion of basic human resource policies andprocedures, including education and awareness raising regarding human rights, and also reports to the Executive
Committee on the results of implementation.
Expectations for key stakeholders are as follows:

Fuyo Lease Group's CSV

Board Members andEmployees

The Group has zero tolerance for all forms of discrimination and harassment on
the basis of gender, nationality, race, ethnicity, religion, disability, or any othergrounds. We strive to create a work environment where each and every
employee respects each other's human rights and can work in comfort andwith peace of mind.

Each Group Company's
Environmental and Social
initiatives

Customers

Our management philosophy is to "maintain customers first philosophy,
providing the best services." We will not only prevent and mitigate negative
impacts on human rights related to the provision of services, but also strive torespect the human rights of all our business partners.

Partner Companies

We expect partner companies providing services with our Group to understandthe Fuyo Lease Group Human Rights Policy, and respect human rights in thesame way as Group employees.

Fuyo Lease Group Human Rights Policy

Initiatives to Assess and Mitigate Human Rights Risks
The Fuyo Lease Group works to prevent negative impacts on human rights in its business and provide access to remedy.
Fuyo Lease's Corporate Planning Division regularly assesses the Group's risk management status, including human rights
issues, and reports it to the directors. If significant risks occur these are reported to the Risk Management Officer and to
the Executive Committee.

Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement

Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download63

Board Members and Employees
In the Group, the Audit Office and Human Resources Division conduct regular employee interviews in order to prevent
violations of human rights. In the event any human rights issue arises, a team lead by the Human Resources Division will
act in accordance with company policy to promptly resolve the issue.
In addition, we have set up internal and external whistleblower hotlines that allow anonymous reporting and guaranteethat all reports will be treated as confidential in order to promptly detect any infringements of compliance or Fuyo Lease
Group’s Basic Compliance Policy in the area of human rights, including bullying and harassment.
In fiscal 2022, 10 reports were received through the hotlines. In each report, investigations are promptly conducted, suchas confirming the facts with the parties concerned with due care to protect whistleblowers against detrimental
treatment and taking appropriate measures. All cases have been resolved, and measures put in place to prevent
recurrences.

Partners
Recognizing that it is possible that the Group could contribute to a negative impact on human rights in providing
services, we strive to take appropriate measures to prevent or mitigate any negative impacts on human rights that may
occur through our business activities. In particular, we focus on protecting the privacy of our business partners, building
an information management system according to the business content, and strictly managing our partners’ information.
Information security initiatives are here

Human Rights Due Diligence
As one initiative for human rights due diligence based on the Group’s Human Rights Policy, we make inquiries tobusiness units and interview partner companies to identify issues that have a negative impact on human rights in ourbusiness, and implement countermeasures according to the degree of risk severity. By continually implementing thiskind of process every term, we will work to prevent and mitigate human rights risks.
Human Rights Due Diligence Process

Human Rights Awareness Training
The Fuyo Lease Group continually provides human rights awareness training in its grade-specific training, which includes
that for new employees and newly appointed assistant managers / section chiefs with the aim of creating workplaces
with a fundamental respect for human rights. Through the publication of "Compliance News" and inhouse digital
signage to all group employees, we raise awareness of the Fuyo Lease Group's approach to human rights and labor andthe importance of respecting them. In fiscal 2018, the Group introduced a new training program for all employees, inwhich the participants view videos to improve their human rights awareness.
Furthermore, we provide training upon promotion for employees appointed at or above a certain level of management
position to enable them to respond appropriately when there are reports of incidents and consultations involving humanrights, including bullying and harassment.

64Building Positive Employer-Labor Relations
The Fuyo Lease Group recognizes freedom of association and collective bargaining rights as the rights of its employees.
While complying with laws and regulations and promoting these rights, we strive for appropriate communication
between employers and employees. In Fuyo Lease, the percentage of employees who belong to a labor union is 67.5%.

Promoting Appropriate Labor Standards
The Fuyo Lease Group strives to comply with domestic and foreign laws and regulations on labor standards where its
offices are located, such as working hours and pay but also to make the working environment even better in order toensure consideration for human rights. Not only do we strive to limit long working hours and guarantee a living wage inour offices in Japan, but we also carry out checks at our overseas sites as necessary, in addition to paying living wages
that exceed the minimum stipulated by local laws and regulations, to maintain high standards to ensure the retention of
excellent employees. Each month, we report the company’s overall status of working hours and any workers who are
working long hours to the director in charge of the Human Resources Division and the President & CEO and deliberate on
countermeasures when necessary. In addition, as an initiative to reduce long working hours at domestic groupcompanies, we are actively implementing measures to prevent overwork and have introduced “Refresh Day (no overtimeday)”, “+ Friday (leave-work-early system)”, and the “interval system” for employees to use freely.
In Fuyo Lease in fiscal 2022, there were no infringements of labor-related laws and regulations.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

65

HOME

Sustainability

Social Report

Improving Customer Satisfaction

Improving Customer Satisfaction
To improve customer satisfaction

Sustainability

The Fuyo Lease Group strives to provide services that can flexibly and promptly respond to the diverse needs ofcustomers by setting its Management Philosophy as "maintain customer's first philosophy, providing best services."
Please click here for information on various products and services.
Products & Services

Fuyo Lease Group's CSV

Customer-Oriented Business Policy

Social Report

Fuyo Lease is a Type II financial instruments business operator who invites its clients to participate as investors inJapanese operating leases. We have established the Customer-Oriented Business Policy based on the Principles for
Customer-Oriented Business Conduct issued by the Financial Services Agency in March 2017. Based on the Policy, we arecommitted to providing our clients with services in a sincere and fair manner.

Responses to financial ADR system
The Financial ADR System (Alternative Dispute Resolution System in the area of finance) was established in April 2010 toresolve financial issues quickly, flexibly, and conveniently. Under the System, certain providers of financial services are
obliged to conclude a basic contract with an institution on the performance of procedures, if there is a designateddispute settlement institution, and to take grievance and dispute resolution measures if there is no designated disputesettlement institution.
With regard to the money lending business, we concluded a basic contract on the performance of procedures with thedesignated dispute settlement institution, and took grievance and dispute resolution measures for the Type 2 financial
instruments business, which does not have a designated dispute settlement institution.

Please click here for details.

Solving Social Issues
through Business
Environmental Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

66

HOME

Sustainability

Social Report

Concept of IR

Concept of IR
Basic Approach

Sustainability

Fuyo Lease has been listed on the First Section of the Tokyo Stock Exchange since December 2004 and strives for timely,
appropriate and fair disclosure of information to all stakeholders, including shareholders and investors, in order toensure the transparency of the management structure.
Fuyo Lease also provides a variety of opportunities and methods to actively communicate with shareholders andinvestors.

Fuyo Lease Group's CSV

Disclosure Policy

Social Report

Fuyo Lease has set out its Disclosure Policy as the basic policy on the disclosure of information to facilitate the accurate
understanding and evaluation of the Company by stakeholders. The Disclosure Policy is published on the corporatewebsite.
Disclosure Policy

Solving Social Issues
through Business
Environmental Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

67

HOME

Sustainability

Social Report

Communication with Our Shareholders and Investors

Communication with Our Shareholders and Investors
General Meeting of Shareholders
In consideration of its shareholders, Fuyo Lease holds our General Meeting of Shareholders online and holds it at an earlydate to avoid days when there is a concentration of general shareholders' meetings, as well as sends out convocation
notices early and posts them on our website. Additionally, in order to enhance the convenience of our shareholders in
exercising their voting rights, we have made it possible for them to exercise the rights on the Internet.
Because we take the view that the general meeting of shareholders is a place for communicating with our shareholders,we aim for an open meeting, explaining reports in an easy-to-understand manner using images, charts, and tables.

Booklets containing the Report on Annual Business Results and theReport on Interim Business Results for shareholders
At Fuyo Lease, business activities are summarized in booklets containing the Report on Annual Business Results and theReport on Interim Business Results in an easy-to-understand manner. These booklets are sent to our shareholders every
half year.

Website IR Information
At Fuyo Lease, we have established the IR Information page on our website to convey the latest IR information in an easyto-understand manner.
In addition, we also provide the IR information e-mail distribution service for free. Through this service, notifications to email registrants is sent when the new IR information is posted online.

Financial results briefings
Fuyo Lease holds financial results briefings for institutional investors and analysts twice a year in May and November.
From the Fuyo Lease side, the president and senior managing director attend the briefings.

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

Individual meetings
In FY2022, we held individual meetings with a total of 47 companies (39 from Japan, 8 from overseas), primarily for main
domestic and overseas shareholders and investors.
From the Fuyo Lease side, the senior managing director and Corporate Communications Office officials attend themeetings.

68

Main themes and items of interest in the individual meetings
Strategies and aims of the Medium-Term Management Plan Fuyo Shared Value 2026
Impact of domestic and international interest rate trends on the businessState of sustainability initiatives
Human resources strategy, including human capital investment

Feedback for executive management and the Board of Directors
We periodically provide feedback to the Board of Directors and Executive Committee on interview details or opinions
obtained from shareholders and investors during individual meetings.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

69

HOME

Sustainability

Social Report

Shareholder Returns and Status of Shares

Shareholder Returns and Status of Shares
Basic Policy on Shareholder Returns
The basic policy of the Fuyo Lease Group is to enhance shareholders' equity with the aim of reinforcing the managementbase and financial structure, taking performance and management targets into consideration, while striving for the longterm, stable return of profits to shareholders.
In response to constant support from our shareholders, Fuyo Lease has also introduced a shareholder benefit plan withthe aim of increasing the appeal of investing in the Company's shares and increasing the number of long-term
shareholders.

Shareholder Benefit Plan
To implement the aforementioned goals for the introduction of the shareholder benefit plan, Fuyo Lease offers rewards
worth ¥3,000 for shareholders who have owned shares for less than two years and ¥5,000 for those who have owned
shares for at least two years in addition to a system that offers the choice of book vouchers or catalog gifts as benefits.
Our Management Philosophy is to support "corporate activities through our leasing business with view to contributing todevelopment of the society". In order to contribute to development of the society together with shareholders, weannually donate an amount equivalent to 10% of shareholder benefits to organizations involved in social contribution
activities.
The contributions made to date can be viewed on the following page.

Donation activities

Stock Information (As of March 31, 2022)
Number of shareholders: 18,929
Number of shares outstanding: 30,288 thousand shares

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download70

Breakdown of Shareholders

Number of Shares held
(in thousands)

Number of Shareholders

Individuals

18,433

2,504

Financial Institutions

35

12,253

Other domestic firms

196

10,639Foreign Shareholders

243

4,644

Securities companies

22

248

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

71

HOME

Sustainability

Social Report

Approach to Social Contributions

Approach to Social Contributions
Basic approach to social contributions

Sustainability

Recognizing close ties with our neighbors, the Fuyo Lease Group hopes to play the role of a good corporate citizen who
contributes to the development of local communities. Furthermore, based on our Mission, Vision and Value, we arefocused on creating shared value and solving social issues through our business operations, and contributing to society
as part of our business strategy.
Based on this approach, the Group has established a social contribution policy and is engaged in activities that align with
it. We identified the target areas for our social contribution activities based on our social contribution policy to achievesynergies between the social contribution activities and our Medium-term Management Plan. Our priority social
contribution areas are “academic and research activities” that support science and technology with commercialization
potential in New Domains, which is in the Incubation Zone, and “environmental activities” that help accelerate activities
in Energy & Environment, a business field in the Transformation Zone, which is a growth area, as defined in the Group's
Medium-term Management Plan.

Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives

Social Contribution Policy (excerpt)
Article 3 (Target areas for social contributions)

Fund Procurement
through Sustainable
FinanceEngage in the following subject areas:
1. Environment
2. Contributions to local communities
3. Academic activities and research
4. Support for areas affected by disasters

Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data

Article 4 (Implementation criteria)
Decide implementation according to the following criteria:
1. Obtaining the understanding of society
Approaches that are highly public and receive a broad public understanding
2. Using our characteristics
Approaches that use our know-how, products, and services
In addition, the Group's mission is to "seriously respond to customers' needs and provide solutions that exceed their
expectations." Because we believe that it is important for employees to gain awareness about regional issues and needs,
we have introduced a volunteer leave system to promote social contribution activities by employees. The system wasused by two employees in fiscal 2022.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Fuyo Lease Group's CSV

Basic Policy for Prevention of Money Laundering, etc.

Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download© Fuyo General Lease Co., Ltd.

72

HOME

Sustainability

Social Report

Community Engagement

Community Engagement
Recognizing close ties with its neighbors, the Fuyo Lease Group hopes to grow together with them, while being a good
corporate citizen who contributes to the development of local communities. The Group has formulated a Social
Contribution Policy and is conducting social contribution activities that make best use of its knowhow, products, andservices focusing on the environment, community engagement, academia and research, and assistance to disasteraffected areas.

Environmental and Community Engagement

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental Report

Environmental Activities and Student Support by Aqua Art

Social Report

Aqua Art, a group company, provides “AQUA ART” decorative interior aquariums
containing tropical fish and aquatic plants for rent. The company also minimizes
the impact on the environment and ecosystems by procuring fish and aquaticplants through aquaculture farms. The company also minimizes the impact on theenvironment and ecosystems by procuring fish and aquatic plants throughaquaculture farms. It has also prepared a system for providing a certain amount offish and aquatic plants, establishing its SDG-Related Project in 2020 in which theCompany breeds fish itself and reuses and cultivates aquatic plants that it bringsback after maintenance operations. In addition to platy, a kind of tropical fish, italso succeeded in breeding the Japanese rosy bitterling, a freshwater fish endemic
to Japan that has been designated as an endangered species. Aqua Art’s initiatives
and the aquariums have featured in a special edition of the Yomiuri SDGs
Newspaper: Life and the SDGs (first issue published in July 2021). In Japanese, thearticle was titled “Learning about ecosystems from an aquarium.”
Aqua Art also donates (rents for free) products and services to maternal and childliving support facilities based on the philosophy that “AQUA ART wants to makework and life better for the people who live and work in local areas.” It also holds
regular visiting lectures at facilities to which aquariums have been donated, offeringchildren an opportunity to learn about the environment and ecosystem. In 2022, theCompany held summer aquarium events at Nagareyama Otakanomori Shopping
Center and Tamagawa Takashimaya Shopping Center. These included a stamp rally
for completing a picture book of fish, and a learning-themed panel display of facts
about fish, to communicate the fun of observing and learning about living things.
The events provide an opportunity for people not only to enjoy the attraction of theaquarium, but also to consider the environment in which the fish live.
Fuyo Lease and Aqua Art also hold an annual aquarium design contest jointly withTOKYO DOME HOTEL CORPORATION. Students majoring in art and design at Tokyo
Metropolitan Kogei High School and Tokyo Designer Gakuin College, as well as
students studying to become aquarists at TCA Tokyo College of ECO & Animals,
design and decorate aquariums which are then exhibited at the entrance and lobbyof the Tokyo Dome Hotel. During the exhibition period, a contest is held in which
visitors to the hotel vote for their favorite.

Governance andManagement

Japanese rosy bitterling laying eggs

Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation

Children actively participating
in a visiting lecture (fiscal 2022)

Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download73

Participation in FIT Charity Run
The Fuyo Lease Group has participated in the FIT Charity Run (Financial Industry in Tokyo For Charity Run) since 2009.
The FIT Charity Run is a charity event aimed at supporting non-profit organizations engaged in community-based
activities. The event is organized by financial service companies in Tokyo, which gather and hold fund-raising activities.
FIT for Charity Run 2022 was the 18th event, held at the Japan National Stadium. Twenty-eight employees from the Fuyo
Lease Group entered the event for running or walking.

Inviting the local community to Fukuoka PayPay DomeAt Fuyo Lease, we have purchased Philanthropy Seats of the baseball stadium
Fukuoka PayPay Dome and invited people from the community welfare facilities
and young people in sports since fiscal 2012.
With the purchased Philanthropy Seats, 20 seats reserved per year on the first baseinfield side, audience members can watch the full schedule of official games of
Fukuoka Softbank Hawks.
Those who attended this activity have been very pleased and we will continue tomake use of these seats to maintain friendships with local communities in the
future.

Fukuoka PayPay Dome

The purchased Philanthropy Seats

Hosting internships for conveying the significance of work and providing work
experience to students who will be leading the next generation
In order to convey the significance of work to undergraduate and graduate students
who will be leading the next generation, Fuyo Lease provides internships throughwhich the students can deepen their understanding of the leasing business andexperience actual work in the industry.
The 13th internship program, held in fiscal 2022, was carried out over a period of 17days in total between September and February, with the participation of 389
students. The program consisted of a lecture on the basics of leasing, as well asgroup work on creating contract documents and leasing. It also included an
informal gathering where students exchanged opinions with our staff members on,
for example, job challenges and differences between students and professionals.
Students participating in the program made comments such as: "the program gaveme an opportunity to not only understand the leasing business but also to think
about the meaning of work" and "the group work gave me an opportunity to listen
to opinions that I would have never come up with, and it was also useful to hearadvice from HR." A similar internship program is scheduled for fiscal 2023.

Group work session for interns

Contribution to academia and research
In October 2017, Fuyo Lease established Japan's first industry-academia collaborative GAP Fund in cooperation with theTokyo Institute of Technology and Innovations and Future Creation Inc.
In general, commercializing the results of university research requires additional costs outside of research expenses,
including the cost of additional testing, creation of prototypes and customer interviews. However, since the researchexpenses and subsidies contributed by universities are limited to academic purposes, there is a “GAP” in funding
between basic research and commercialization. The GAP Fund is intended to fill this funding gap and support
commercialization of research results. Fuyo Lease continues to provide funding for the GAP Fund, participate in theselection of eligible projects, and support the commercialization of advanced technology. Up until now, 17 projects havebeen selected, of which two have resulted in creating startup companies.
From July 2023 we started operating Fuyo Mirai GAP Fund under a new framework and will continue to support
commercialization and product development of cutting-edge technologies in the future.

74

GAP Fund
A fund intended to fill the “GAP” to commercialization

Contributions to Culture and the Arts
In June 2021, we established the Fuyo-Joshibi Venus Fund with Joshibi University of Art and Design to support students
aiming to become artists.
Students at art colleges who seek to enter society as artists, designers and creators need opportunities for more people
to learn about their work. Through ongoing funding provided to this fund over a period of ten years, Fuyo Lease willpurchase works created by students at Joshibi University of Art and Design, while also working to provide numerous
venues for the works to be exhibited by leveraging our relationships with our customers and many other companies. By
communicating these works to the wider world—works that until now had been held by individuals or limited to oncampus exhibits—we will support these students in moving a step closer to their dreams.
As part of efforts to showcase works by students from fiscal 2022 onward, we have established a foundation operationcommittee within the university. In March 2023, the fund opened its first art exhibition at Kojimachi Garden Tower, where
the Group’s head office is located, and going forward we plan to expand our exhibition activities using spaces provided
by customers who share our aims.
Our goal is to contribute to the advancement of art and culture in Japan by actively supporting students seeking tobecome artists through promotion of this fund, and by giving new art back to society.

Fuyo-Joshibi Venus Fund75

Click here for details of the exhibited artworks and exhibition spaces (a dedicated website will open)

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

76

HOME

Sustainability

Social Report

Donation Activities

Donation Activities
Actual donations (unit: ten thousand yen)

Sustainability

Fuyo Lease makes annual donations to organizations working in disaster-affected areas, humanitarian assistance, theenvironment, cultural arts and academic research. In fiscal 2022, we made donations mainly in support of disaster areas
affected by torrential rains, children affected by COVID-19, culture and the arts, and environmental preservation
activities.

Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental Report

FY2018FY2019FY2020

FY2021

FY2022

Disaster-affected area
support andHumanitarian Assistance

1,127

1,040

575

562

628

Governance andManagement

Environment

50

50

50

272

524

Cultural Arts andAcademic Research

625

1,275

230

600

2,290

Each Group Company's
Environmental and Social
initiatives

Other

4

2

1

1

302

Total

1,806

2,367

856

1,435

3,744

Activities of Fuyo Heartful Fund 100
Within the Fuyo Lease Group, we established the Fuyo Heartful Fund 100 in
November 2010 for employees to contribute to society through donations.
Directors, officers and employees who join the fund donate 100 yen a month, 300
yen for directors and officers, from their salaries as donation funds. The
accumulated funds are donated to groups that develop activities including in theareas of environmental conservation, local community contribution, academic andresearch support and support for areas affected by disasters.
In fiscal 2022, we donated a total of ¥800,000 through this fund, comprising four
donations of ¥200,000 to environmental preservation and humanitarian aid
projects in Japan and overseas.

Social Report

Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

Donation Activities by Shareholder Benefit Plan
Fuyo Lease annually donates an amount equivalent to 10% of shareholder benefits to organizations involved in social
contribution activities.
In fiscal 2022, we donated ¥3.14 million to the “Fund to Support Volunteer and NPO Activities in Response to Torrential
Rain Disasters from Early August 2022“ of the Central Community Chest of Japan, and ¥3.14 million to the “Support for
Resolving the Problem of Child Poverty (Children’s Food Support Box)” of Save the Children Japan.
77

Donations (Past 10 Years)
Fiscal year

Donation recipient (outline of donation)

Fiscal 2012

Central Community Chest of Japan (Great East Japan Earthquake /support for volunteer and NPO activities)

2,959,600

Fiscal 2013

Japan Association of Corporate Executives IPPO IPPO NIPPON
Project Phase 5(Great East Japan Earthquake / provision of learning equipment toaffected senior high schools)

4,233,900

Japan Association of Corporate Executives IPPO IPPO NIPPON
Project Phase 7(Great East Japan Earthquake / provision of learning equipment toaffected senior high schools)

2,249,550

Japanese Red Cross Society(2014 West Africa Ebola Relief Fund)

2,249,550

Fiscal 2014

Fiscal 2015

Amount (yen)Total

4,499,100

Japan Association of Corporate Executives IPPO IPPO NIPPON
Project Phase 9(Great East Japan Earthquake / provision of learning equipment toaffected senior high schools)

2,561,900

Central Community Chest of Japan(Donations for disasters, including torrential rain due to Tropical
Storm Etau in 2015)

2,561,900

Total

Fiscal 2016

Kumamoto City
(Kumamoto earthquake / Kumamoto Castle disaster recovery
assistance fund)2,615,800

Japanese Red Cross Society(Middle East Humanitarian Crisis Relief Fund)

2,615,800
Total

Fiscal 2017

Fiscal 2018

5,123,800

5,231,600

Kumamoto City
(Kumamoto earthquake / Kumamoto Castle disaster recovery
assistance fund)2,815,850

Save the Children Japan (Save the Children Children's Fund)

2,815,850
Total

5,631,700

Central Community Chest of Japan (Donations for disasters due toTyphoon Jebi in 2018 and Hokkaido Eastern Iburi Earthquake /support fund for disaster volunteer and NPO activities)

2,535,700

Save the Children Japan (Save the Children Children's Fund)

2,535,700
Total

5,071,400

78

Fiscal year

Donation recipient (outline of donation)

Amount (yen)Fiscal 2019

Central Community Chest of Japan (Donations for disasters due toTyphoon Hagibis in 2019 / support fund for disaster volunteer andNPO activities)

2,176,200

Save the Children Japan (Save the Children Children's Fund)

2,176,200

Association of Para-Sports Promotion in Japan (APSPJ)

1,200,000
Total

Fiscal 2020

Fiscal 2021

Fiscal 2022

5,552,400

Central Community Chest of Japan (Donations for disasters,
including torrential rain from July 3, 2020 / support fund fordisaster volunteer and NPO activities)

2,850,450

Save the Children Japan (New Coronavirus Emergency Assistance
Activities)

2,850,450

Total

5,700,900

Central Community Chest of Japan (Donations supporting disastervolunteer and NPO activities in response to torrential rains since
early August 2021)

2,810,200

Save the Children Japan (Support for COVID-19 countermeasuresthrough food aid boxes for children)

2,810,200

Total

5,620,400

Central Community Chest of Japan (Donations supporting disastervolunteer and NPO activities in response to torrential rains since
early August 2022)

3,139,650

Save the Children Japan (Support for Resolving the Problem ofChild Poverty (Children’s Food Support Box))
Please see here (external site) for details

3,139,650

Total

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

6,279,300

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

79

HOME

Sustainability

Social Report

Human Capital

Human Capital
The Fuyo Lease Group believes that its people, i.e., its employees, are its greatest asset, and serve as the foundation for
the Group’s sustainable value creation. Based on this belief, we are actively investing in our human resources. We
believes it is important to respect each individual and their individuality and to enable them to feel satisfied and perceive
the significance of work. We aspire to help our employees to grow through their work and to live an emotionally andphysically fulfilling life.
We believe the Group will be able to achieve sustainable growth by facilitating the growth of each employee andenabling them to perform to the best of their talent and ability.
Our efforts related to investment in human resources are based on the following three pillars: strategic human resources
development, diversity and inclusion, and health and productivity management & work-life balance.

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data

For information on our initiatives regarding diversity and inclusion, health and productivity management, and work-lifebalance, please see below.
Please click here for information on Diversity & Inclusion
Please click here for information on Building a Better Workplace
Please click here for information on Employee Health Management

Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

Strategic Human Resources Development
To live up to our corporate slogan of “Go Where No One Has Gone Before,” the Fuyo Lease Group has encouraged its
employees to be autonomous human resources who think for themselves, act proactively, and are committed topersonal growth. In the future, employees will be encouraged to develop into human resources with high levels of
expertise in each business domain and the ability to create high added value in each area, in order to achieve themedium-term management plan through fiscal 2026 with CSV at the core, and to realize the Mission and Vision for 2030
and beyond. To maximize our support for employees’ development into the human resources we seek, we are actively
investing in human resources, with a target of increasing human resource development expenses (non-consolidated)
300% by fiscal 2026 compared to fiscal 2021.
Human resource development expenses increased 188% in fiscal 2022 and are projected to increase 210% in fiscal 2023.
80

We made changes to our human resources system in July 2019 and adopted the concepts of “converting a job function orability-based system where a generalist serves as a role model into a varied, multi-track, job duty-based system,” and“providing a framework which enables employees to achieve personal development and to expand the scope of theirduties in the long term.” In addition to changing the job description of clerical track to administrative track, the system
also has been changed to encourage employees not only to aspire to be a section manager, who had been served as rolemodels, but also to strive for even higher positions such as departmental manager. We encourage employees toindependently develop their career plans and we make efforts to offer them rewards that commensurate with the roles
they play and the duties they perform in their respective areas.
The Company's performance in terms of compensation and training (fiscal 2022) is as follows.
1. Results in terms of treatment
Average employee salary: 8.73 million yen
2. Results in terms of development
Human resource development expenses: 145 million yen
Dispatch of trainee to overseas subsidary: 6 people
Dispatch of employees for training in Japan for educational purposes (including secondment): 13 people

Developing autonomous human resources
We will increase the autonomy of human resources through initiatives to improve the leadership skills of supervisors andto foster self-awareness among employees.

Initiatives to strengthen guidance and development
Management training is held every year primarily for newly appointed assistant managers and section chiefs. Withchange accelerating in the business environment, the training involves lively discussions facilitated by outside
instructors on how to face this change, in terms of both job achievement and human resources development, based inpart on the results of surveys of upper-level managers and workplace members. Through the training, participants work
to further improve their management skills.
In the second half of fiscal 2019, we also introduced coaching training for management-level employees, designed tostrengthen guidance and development in cultivating the ability to "think, judge and act on one's own," and, as anorganization, to pass on human resource development practices to the next generation. Those who have completed a
six-month cycle of training and practice are granted our internal coaching qualification. In addition to teaching, we
encourage the growth and leadership of each employee through coaching and development, as we aim to create anorganization that maximizes diverse talents and capabilities.
81

Initiatives to promote autonomous learning
We emphasize each employee's efforts to pursue professionalism and take the initiative to develop their own abilities. A
cafeteria plan has been introduced in fiscal 2022 that allows employees to freely choose from an extensive menu ofofferings, including correspondence courses, e-learning, language learning and certification classes, and attendance atbusiness school, with support provided for tuition fees. Our "+ Friday Seminars*," established in fiscal 2021, cover a wide
range of topics, including the latest business information, general education and health, and aim to promote a habit
among employees, regardless of age or position, of using their free time to learn for themselves. In addition, in cases
where the COVID-19 pandemic makes it difficult to hold group training, we have created an environment where
employees can continue to enjoy opportunities to learn via online training and on-demand viewing of training videos. In
fiscal 2022, the average number of hours of education and training spent on each employee was 28.8 hours.
* “+Friday Seminars,” which are seminars held at irregular intervals on Friday afternoons, provide opportunities to learn during the timecreated by “+Friday,” in which employees select one Friday at random each month to work only for the morning and then go homeearly.

Click here for a more detailed explanation of our educational system

Self-assessment system
Fuyo Lease has a self-assessment system in place for promoting the autonomous and continuous development of
employees' skills. Once every year, individual employees submit a Self-assessment and Career Development form fordeclaring to the Company a list of abilities they have managed to improve, whether they have managed to expand thescope of their jobs, what kind of self-development efforts they are making and what areas of experience they would liketo build upon for their own development. The Company uses information on the declaration form to understand each
employee's plan for career development, and reflects it in its personnel measures.
Furthermore, the Company provides feedback to each employee on their current progress while attending various
seminars in an effort to encourage employees to actively make use of various self-development programs.

Internal recruitment system

Staff and trainees in the United States (New York)

Staff and trainees in Thailand

Fuyo Lease has a Trainee System and Internal Recruitment System in place for supporting active career development.
Furthermore, we introduced and launched the Job Posting System in fiscal 2018, and the Job FA System in fiscal 2021 togive employees the chance to take on the challenge of doing a job that interests them.
The Trainee System is being applied in the overseas trainees' program and also the training programs of various
departments such as credit decisions making and aircraft leasing departments.
We dispatch around six overseas trainees each year to our Group companies or overseas offices of financial institutions
whom we trade with in countries and regions including the United States, Hong Kong, and Thailand. By working in dayto-day operations locally, the trainees aim to build their basic knowledge of international financial transactions and theirlanguage skills. The Company is also working overseas to expand in areas such as environmental energy projects andreal estate leasing and finance in collaboration with business partners, and to strengthen its networks. In addition, by
establishing trainee systems for operations that are indispensable to each business, we expect that businesses will bestrengthened by human resources who have experience using those systems.
The Job Posting System was introduced as a framework for providing opportunities for each employee to develop byautonomously enhancing their knowledge and skills. In the system, the Company has job posts it offers, such as for
department / branch manager, president of affiliated companies, specialized business departments, and credit
departments.
The "Job FA System" basically allows employees who meet certain conditions to transfer to the department of theirchoice. This system was introduced with a view to maintain high levels of motivation.
82

Development of Human Resources Who Create High Added Value
In order to develop human resources who can address increasingly diverse and sophisticated business domains andcreate high added value, we have classified our skills structure into 3 levels. Programs that strengthen specialized
knowledge, particularly at Levels 2 and 3, are being intensively developed and expanded.
Notably, in the language field of Level 2, we have started to provide training in which young employees work remotely on
issues with overseas business people, in order to develop human resources capable of creating high added value inoverseas businesses. In fiscal 2022, 24 employees participated in this training. All employees are taking part in e-learning
to obtain basic knowledge of the digital transformation (DX) field, which is a key theme of the current medium-term
management plan. At Level 3, employees enhance their specialization through such means as a system of incentive
payments for the acquisition of certifications designed for each business domain and secondment to partner companies.

Moreover, with regard to Level 1, since fiscal 2017, the Fuyo Lease Group has been jointly conducting business skill
training, focused on training for new recruits, career training, and management. As a foundation for pursuing synergies,
this training serves as an opportunity to help share understanding of each company's business and culture.
A total of 275 group company employees took part in 15 training programs in fiscal 2022.

Young employees engaged in group work

Certification promotion programThis program covers around 150 certifications related to specialized expertise in legal affairs, accounting, finance,
languages, IT, real estate, healthcare, and other fields and provides support at successful completion in the form oftuition grants and incentive payments. The program is used every year by numerous employees.

Hiring and Promotions
In hiring and promoting human resources, we consider the knowledge and skills that will be required to promotebusiness strategy and analyze the requirements of employees in their actual jobs. We define human resource
requirements for the Group and work to continually hire people with high potential through networks with university
career centers and other organizations.

Course transfer system
In order to respond to the diversifying needs of employees in relation to employment and skill development, Fuyo Leasehas the Course Transfer System in place, which allows them to switch from administrative to generalist career tracks, orvice versa. A total of 15 people have used this system between April 2011 and April 2023, and they are now active in new
fields.
83

Full-time employee challenge system
In April 2014, in order to further develop skills and expand the job scope of highly capable and motivated contract
employees, Fuyo Lease introduced a new system of hiring contract employees meeting certain requirements as full-time
employees.
Between the introduction of the system and April 2023, a total of 14 contract employees had been hired as full-time
employees, and are working in the field of administration or sales administration.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

84

HOME

Sustainability

Social Report

Diversity & Inclusion

Diversity & Inclusion
Promoting Diversity and Inclusion

Sustainability

We believe that diversity is a key growth driver and bringing together different strengths, viewpoints and values
generates the innovation that creates new value, and leads to sustainable growth for the Group. Therefore, we areworking to promote diversity and inclusion with the goal of creating workplaces that are comfortable for everyone,
where every Group employee can maximize their full potential and enhance their expertise, regardless of age, sex,
nationality, sexual orientation, gender identity, race, ethnicity, disability, or the way they were recruited.
Given a background of responding to diversifying market needs, we consider empowering women in the workplace to bea particularly important management priority. To secure talented human resources, we are working on measures topromote roles for women aimed at creating an environment in which women can demonstrate their abilities and play anactive role.
The current status (as of March 31, 2023) and targets for women, non-Japanese, and mid-career hires in the Company,
and the gender pay gap, are as follows.
Current

Goal①Ratio of female employees inmanagement positions

30.9%

35% or more (by end of FY 2026)②Appointment of non-Japanese managers

0

About 2 (by the end of FY2030)③Appointment of mid-career hire
managers

139

Current status④Gender wage gap*

66.5%

-

Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data

* The gender wage gap is the ratio of women’s average annual wages to men’s average annual wages for all employees, combining
regular and non-regular employees. There is no wage gap between men and women for the same work. The gender wage gap is causedby differences in the proportion of employees in each job category, certification, and age.

Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:

Empowering female employees in the workplace"Integrated Report" PDF
download85

Towards creating a workplace environment where female employees
can exercise their abilities and participate more than ever:Given a background of a shrinking productive workforce and the need to respond to diversifying market needs, theGroup considers empowering women in the workplace to be a particularly important management priority. To securetalented human resources, we are advancing initiatives to promote the workplace participation of women aimed atcreating an environment in which, more than ever, women can demonstrate their abilities and play an active role. Under
our general employer action plan launched in fiscal 2020, based on the Women's Advancement Promotion Law, we have
set targets for the ratio of female employees hired and ratio of female employees in management positions, and we havebegun a variety of measures aimed at achieving them. Specifically, we are moving forward with initiatives that strongly
support women's advancement, including strengthening recruitment by expanding seminars at women's colleges andpromoting follow-up with women in managerial career track positions. To encourage women to elevate their careers, weare also providing more opportunities for them to interact with a diversity of role models, including by holding informal
exchanges with executives and division heads, as well as career lectures and dialogues with female business leaders. In
this way, we are working to increase motivation and nurture a suitable culture. As a result of our efforts, we received
Platinum Kurumin certification in fiscal 2017 and two-star Eruboshi certification (the second highest level) in fiscal 2021
from the Minister of Health, Labour and Welfare.
Moreover, empowering female employees continues to be an important human resource strategy under our mediumterm management plan, and we have set ambitious targets, including a ratio of female employees in management
positions of 35%. We will enhance and strengthen our current measures, and focus on further empowering female
employees.

Outline of Our General Employers Action Plan Based on the Women's Advancement
Promotion Law
Plan period: April 1, 2022, to March 31, 2027 (five years)
TargetDetails of Initiatives

Ratio of women in new
graduate hires of 40%

Provide internships for female university students and continue enhancing
seminar content

Ratio of female employees inmanagement positions of 35%

Continue to provide female employees with individual interviews and skill
development opportunities, and consider level-based training
Continue to provide opportunities for cross-sectoral interactions with diverserole models

Ratio of annual paid leave
taken of 90%

Continue to foster awareness of taking annual paid leave in a planned
mannerRaise awareness and implement training regarding increasing productivity

Ratio of paternity leave takenof 100%

Revise rules regarding childcare leave and keep employees informed
Collect and share examples of male employees taking paternity leave
Implement measures to foster an appropriate culture

Increasing the recruitment of female new graduates: outline of female employees'
work-styles
To give students an idea of what it is like for women working at Fuyo Lease, we have posted stories from female
employees working in various divisions on our recruitment website. The posts cover aspects such as work details,
careers, and working while raising children. Furthermore, in order to communicate more with female students, theCompany set up booths at events for female students.

86Conducting a three-party interview to support the career plan of each female
employee
The Company regularly conducts a three-party interview for the purpose of supporting women's career plans in which
each female employee is interviewed by her departmental manager and a staff member from Human Resources Division.
Individual career plans are designed based on issues and a future vision for supporting each individual's development.
Furthermore, in order to appoint female managers, the Company provides support for enhancing their abilities and skills
through training by organizing opportunities for female employees to attend external seminars on subjects such as
management skills and leadership.

Career Lectures for awareness of female employees and managers
We held career lectures with outside lecturers twice in 2015, to provide an opportunity for female employees to consider
and plant their future careers. Since 2017, the target audience of the lectures has no longer been limited to female
employees, and lectures have been held with the aim of creating a work environment where diverse employees canrealize their potential. In January 2019, an Ikuboss* Seminar was organized for management-level staff. From fiscal 2020,
we have been holding career seminars by female executives and providing opportunities to encounter a variety ofcareers and work values.
* Ikuboss: A leader who supports their staff's professional and personal development, and achieves good business performance, as wellas enjoys their work and personal lives.

Theme and content of lecture
Date

Theme

February 2015

What it means for women to continue working: thinking about their
future careers

July 2015

Creating a comfortable workplace

January 2017

Diversity and time management

January 2019

Ikuboss seminar

February 2021

Seminars by female executives
Learn about careers from female executive officers

September 2021

Seminars by female executives
YAMOTO LEASE CO., LTD. President & Chief Executive Officer Naomi
Ogata gave a lecture about careers

March 2022

Seminars by female executives
Learning from a female director of Sapporo Holdings Limited

September 2022

Seminars by female executives
Hints from Kao Corporation about creating a career that reflects
your own character

March 2023

D&I seminar
Lessons about leadership and CSV management from the COVID-19
pandemic

September 2023

D&I seminar
Sustainability and Diversity-For Sustainable Corporate Growth-Working group activities toward creating a better workplace (Everyone Active
Working Group)87Since January 2015, we are continuously running a working group for employeeswith the aim of creating a workplace that is more welcoming for employees to
get actively involved in, and allows them to envision their careers over the
medium and long term. In fact, several programs have been established throughthe discussions.
For example, a program called +Friday (Plus Friday) introduced in February 2017is one of them, which allows employees to choose one Friday each month when
they work just a half day. Flexible hours program introduced in May 2017 isanother program that was born out of the working group's discussions. This
program offers four different work schedules with earlier and later starting andfinishing times, in addition to the normal working hours, so that employees canchoose the schedule that is most suitable to their needs, for activities such as
childcare or family nursing care duties, as well as their lifestyles.
Through discussion and consideration by employee-participation-type working
group activities, we are striving to penetrate and establish systems to create
better working environments.
Period

1st

2nd

Theme

Content

Balancing work with childcare

Formulation of the Action Plan: Stage 6 for the Next
Generation Act
Creation and distribution of guidebooks for
empowering women in the workplace
Consideration of measures to improve thepercentage of male employees who take childcare
leave

The recruitment of women
Promoting male employees
to take childcare leave
Awareness raisingetc.

Revision of public relations tools for recruiting
women in new graduate recruitment
Consideration of measures to promote male
employees taking childcare leave
Initiatives for internal penetration and establishmentof female empowerment in the workplace
Consideration of measures for the Action Plan: Stage
6 "Implementation of Initiatives that Contribute to
Reviewing Work Styles" based on the Next
Generation Act

3rd

Flexible operation ofworking hours
Balancing work with nursing
careConsideration of "+ Friday" concept and naming
Implementation of Flexible hours program
Organizing and considering issues toward therealization of independent and active working styles

4th

Promotion of independentand active working styles
Consideration of work-lifebalance support andorganizational culture
reform measures

Discussion of work style systems currently being
tested, examined, and implemented by the General
Affairs Department
Consideration of specific measures to improve
efficiency and productivity
Welfare system

5th

Activation of communication
Promotion of independentand active working styles

Consideration of measures to activate
communication across departments
Consideration of meeting efficiency that contributes
to work style reform

Activation of communication
Building a rewarding
workplace

Discussion of issues to work autonomously andimprove the rate of taking paid leave
Activation of communication areas at new head
office, consideration of events, etc.

6th

etc.

88

Handout on creating a workplace that considers
Leaflet giving information on the childcare support
everyone's needs (a partial excerpt) created by the system (excerpt)
second working groupChildcare Support Guidebook created by the firstworking group

Employing people with disabilities
We are also working to hire people with disabilities.
In addition to the longstanding recruitment of mid-career employees, the Company has started recruiting new graduatessince fiscal 2015. In recruiting people with disabilities, the Company decides, with considerations to the characteristics oftheir disabilities and the jobs they want, the sections and jobs where they are to be assigned after joining the Company,
as well as their working hours. The Group also provides e-learning about disabilities to all Group employees and grouptraining to heads of departments and branch offices to promote understanding about this issue.
As of the end of fiscal 2022, the percentage of people with disabilities employed by Fuyo Lease was 2.3 percent.

Inclusion in the Workplace
We are working to increase understanding of diversity and inclusion in theworkplace by implementing measures such as providing e-learning abouthiring LGBTQ people and people with disabilities to all Group employees andgroup training on those issues to division heads, executives and humanresources managers. As a result of implementing these initiatives, we
received a Bronze rating on the PRIDE Index 2022, an assessment indicator for
efforts to address sexual minorities in the workplace. PRIDE Index 2022 wasdeveloped by work with Pride, a voluntary organization.

Elderly employment (reemployment after retirement)
In response to the enactment of the revised Act for Stabilization of Employment of Older Persons in April 2013, Fuyo
Lease reviewed the past continuous employment system and introduced a revised system, which allows, in principle, allemployees who are reaching retirement age to continue working until the age of 65 if they wish.
As of the end of fiscal 2022, there were 70 employees still employed after retirement. Using their knowledge andexperience acquired over many years, they are working in the functions of, for example, debt collection, making credit
decisions, and remarketing leased properties.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

89

HOME

Sustainability

Social Report

Building a Better Workplace

Building a Better Workplace
Basic Approach

Sustainability

The Fuyo Lease Group believes that creating a work environment in which employees can be healthy, safe and can workwith energy and enthusiasm leads to a more vital, productive organization. We are striving to build a better working
environment where all employees can find their own optimal work-life balance and enhance the quality of both life andwork by maintaining and improving their health, gaining new knowledge and experiences and attaining personal growth.
In addition, we believe that investing in the health of our employees—efforts to maintain and improve their health—is aninvestment in human capital on par with investing in education.
In addition to providing support for childcare and nursing care, since fiscal 2014 we have been implementing work-stylereforms across our corporate group and in fiscal 2020, we introduced hourly-based annual leave and established rules
for telecommuting to allow for even more flexible work styles. In fiscal 2022, we took initiatives in response to thedemands of the times, promoting measures such as the introduction of a flexible hours program.
In fiscal 2017, we formulated Next-Generation Training Support Action Plan: Stage 7 (April 2017-March 2022) with the aimof enabling each employee to independently and actively review workstyles tailored to their individual lifestyles, andwith the aim of creating a work environment and corporate culture that enables employees to balance work and family
while maintaining job satisfaction and a spirit of taking on challenges. Now that this action plan has finished, we willfurther advance its initiatives with the aim of achieving our numerical targets and promoting a variety of work-styles to
employees through the active use of various programs, leading to the realization of a self-sustained work-life balance.

Description

Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation

Promoting independent and active working styles
Encouraging male employees to take a more active role in parenting
Reducing total working hours
Offering diverse career path options

Environment / Social Data

Numerical targets (Fuyo Lease non-consolidated)
FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2026
TargetRate of taking annual paid
leave

68.0%

68.4%

66.3%

72.0%

82.3%

93.5%

90% ormore

Rate of male employees whotake childcare leave etc.

90.0%

90.5%

90.5%

78.6%

110%

100%

100%
or
more

Rate of taking the +Friday
system*

-

-

-

-

89.4%

89.0%

-

Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download* The percentage of people who took the +Friday system at least once a year among employees as of the fiscal year-end (excluding thoseon leave, retirees, and mid-career hires during the fiscal year). Excludes workers at seconded sites and overseas subsidiaries that do nothave the +Friday system.

90

Main Programs and Benefits
As programs to support childcare and nursing care for our employees, etc., we have established the following to promote
understanding in the workplace and the active utilization of these programs.
Name

Program contents

Maternity leave

A program that allows female employees to take paid leave of six
weeks before childbirth and eight weeks after childbirth. (Inrelevant legislation, companies are not required to provide pay
during maternity leave, so this initiative goes beyond legal
stipulations.)

Spousal childbirth leave

A program that allows male employees to take three days of paid
leave when their spouses give birth. (In relevant legislation,companies are not required to provide spousal childbirth leave, so
this initiative goes beyond legal stipulations.)

Parental leave

A program that allows employees raising children to take five daysof paid leave (however, a maximum of ten days of leave can betaken if it is taken in conjunction with childbirth leave)

Nursing leave

A program that allows employees to take leave when they need totake care of preschool children (five days per child per businessyear)

Nursing care leave

A program that allows employees to take up to five days of leave
per business year for each family member who is in need of nursing
care

Shortened working hours program

A program to allow for shortened working hours for employees
until the end of their child’s third year of elementary school

Flexible work hours

A system that allows employees to start work anytime between
7:00 and 11:00 and work for 7 hours and 20 minutes

Return-to-work program

A program that assists people who want to return to work after
leaving due to reasons such as marriage, pregnancy, childbirth,childcare, transfer of spouse, or nursing a family member

Telework program

A program that allows employees who want to use teleworking
may work from home or a location equivalent to home if theyreceive permission from their supervisor

Employee stock ownership program

A program that enables full employees of Fuyo General Lease Co.,
Ltd. to purchase and hold shares in the company and receive
benefits including incentives and dividends

91Initiatives to Support Childcare
Since the Act on Advancement of Measures to Support Raising Next-Generation Children went
into effect in 2005, we have been working to create a better job environment for working
parents by developing a “general employer action plan” as required by the law.
As a result, we achieved our action plan based on the Act on Advancement of Measures to
Support Raising Next-Generation Children. In addition, following fiscal 2007, fiscal 2009, fiscal
2011, fiscal 2013, and fiscal 2015, in fiscal 2017, we received our sixth “general business ownerconforming to standards” certification from the Tokyo Labour Bureau, and obtained the sixstar mark of the Next-Generation Certification (the Kurumin mark) from the Ministry of Health,Labour and Welfare as a company working to support balancing work and family life.
Also, in fiscal 2017, we received the special Platinum Kurumin certification, an accreditationthat is given to companies that have achieved a higher level of commitment among other
Kurumin-certified companies.
In fiscal 2018, we worked to transform mindsets by holding an Ikuboss Seminar, having
management-level staff take part in the Ikuboss Declaration, and participating in the Ikuboss
Corporate Alliance. In fiscal 2019, we revised a number of regulations to make it easier for
male employees to take childcare leave, and in fiscal 2020, we made it mandatory for male
employees to take childcare leave (in fiscal 2022, the rate of paid paternity leave was 100%).
Going forward, we will continue to make efforts to actively promote the participation of male
employees in childcare while also aiming to further increase the rate of paid paternity leave.

Platinum Kurumin markEmployee's comment: Mitsuhiro Uekusa, DX and Marketing Strategy Division"I used childcare-related
programs, and now I’m putting a
lot of effort into raising my child."

I am doing my best to care for my firstchild with my wife.

I took two special leaves of absence vacations, first taking
spousal childbirth leave when my wife gave birth, andthen taking childcare leave when she returned home after
giving birth in her hometown. The company encourages
male employees to take childcare leave, and thanks to
the understanding of my superiors and colleagues, I wasable to devote myself to childcare with peace of mind
while on leave. There is also a program to receive
childcare products as a gift to celebrate the birth of a new
child, and this makes me feel like the company supports
employees raising children. In the future, I would like tocontinue to take advantage of programs such as flexible
hours to work efficiently while also valuing the time that I
spend with my family.

Initiatives to Support Nursing Care
In January 2018, we held a Nursing care seminar to dispel concerns about nursing care, which is expected to affect many
employees in the future. At the seminar, over 170 employees learned about balancing work and nursing care. We also
provide various types of information on nursing care and support employees who are being confronted with nursing
care.

92

Promoting Work-Style Reforms
Refresh Day
In fiscal 2022, we continued to hold Refresh Day (no overtime day) once a week. Employees are free to choose any day of
the week as their Refresh Day.

＋Friday (Plus Friday)
To encourage each individual employee to review their workstyle, from February 2017 we introduced the +Friday
program, where employees can select one Friday of each month to work only for the morning then go home early. Usersin fiscal 2022 increased to 89.0% of our employees, as the system made it easier to work. At the same time, we also aim
to create an environment where employees’ diverse identities are reflected in operations by increasing their knowledge
and experience outside the workplace.

Employee's comment: Yuko Hoshino, ICT Solution Business Division"It's a good opportunity to separate workand private life."

I'm using the afternoon to refresh myself.

I use the time freed up by +Friday as an opportunity to go and see amovie, a favorite pastime of mine, and to go out with my husband, who
has days off on weekdays. In the past, I struggled with balancing workand housekeeping, but by being able to secure free time even once amonth, I feel I can have some downtime and it also increases mymotivation to work from the next week. In the future, I would like totake advantage of this program, not only for my hobbies but also forlessons on cultural activities.

Flexible Hours Program (formerly: Staggered Hours Program)
We have established a new program that encourages a shift to an autonomous and active work-style by allowing
employees to use their own discretion in managing time and work. Depending on their lifestyle, and not only for reasons
such as childcare and nursing care, the Staggered Hours Program lets us select from among four work patterns that
advance or postpone when we start and end work outside of the normal working hours. This, along with the
Discretionary Labor Program, was introduced and implemented from May 2017. Starting from fiscal 2022, the staggered
hours program was changed to the flexible hours program. Under this program, employees start work between the hoursof 7:00 and 11:00, then work for seven hours and 20 minutes, offering even greater flexibility.

Telework Program
In April 2021, we introduced a telework program with the aim of enabling autonomous and active work styles. Employees
who want to use teleworking may do so if they receive permission from their supervisor, enabling them to work
autonomously and actively in a way that can be expected to raise productivity and make operations more efficient.

93

Increased paid leave take-up rate
We have been working to improve the paid leave take-up rate through measures such as establishing a system in fiscal
2011 that encourages taking consecutive days of leave in summer and winter and introducing the Five-day Consecutive
Annual Leave system in fiscal 2016 with the aim of improving the rate at which career-track employees take leave.
Furthermore, in fiscal year 2021, we started promoting 'bridge holidays' that increase the chances of taking four to fiveconsecutive days off by taking leave on the one or two business days bracketed between a weekend and a national
holiday, in order to achieve a balanced approach to work and time off.
As a result, we achieved a paid leave take-up rate of 93.5% in fiscal 2022 (Fuyo General Lease non-consolidated).
In our Medium-Term Management Plan Fuyo Shared Value 2026, are targeting a paid leave take-up rate of at least 90%(Fuyo General Lease non-consolidated) by fiscal 2026. We will work to achieve this target by continuing to raiseawareness of taking annual paid leave in a planned manner.

Engagement
The Fuyo Lease Group defines engagement as “a relationship in which each employee links the growth of the company
with his or her own growth, and contributes to their mutual growth.” The Group measures indicators of engagement
through employee opinion surveys and monitors trends in those indicators.
In fiscal 2022, the surveys were administered to 2,753 employees in total at 13 companies in Japan, and the response
rate was 93.5%. The questions were divided into several sections, including workplace and job satisfaction, perceiving
the significance of work, and work-life balance, and evaluations were given on a scale of one to five. After conducting thesurvey, we aggregate and analyze the responses by department and by gender, and use the results to expand oursystems for improving on comfortable working environments and for personnel measures.

Results of employee opinion survey
FY2018FY2019FY2020

FY2021

FY2022

Number and percentage of
employees who answered
the survey

Domestic 8
groupcompanies,
1,490
employees

Domestic 10
groupcompanies,
1,714
employees(97.7%)

Domestic 12
groupcompanies,
2,096
employees(95.2%)

Domestic 12
groupcompanies,
2,051
employees(94.0%)

Domestic
13 group
companies,
2,575
employees(93.5%)

Job satisfaction

87.3%

85.8%

85.4%

85.9%

-

Percentage of improvement
in engagement indicators*

-

-

-

3.48

3.48

* In the employee opinion survey, eight questions (five-point assessment scale) that represent engagement as defined by the Fuyo Lease
Group (a relationship in which each employee links the Company's growth to their own growth and they contribute to each other's
growth), and the average response value was measured.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

94

HOME

Sustainability

Social Report

Employee Health Management

Employee Health Management
Our Approach for Health and Productivity Management
The Fuyo Lease Group believes that providing a healthy and safe work environment where employees can work
energetically will invigorate the organization and increase productivity. We consider both investment in the health of ouremployees (efforts to maintain their health) and human resources development to be investments in human capital.
Consequently, we promote strategic health and productivity management based on a management perspective.

Health Declaration
The Fuyo Lease Group believes that the mental and physical health of employees and their families is the source of theirfulfillment and wellbeing. We believe that it leads to their growth as responsible resolvers of social issues.
Based on this thinking, we have presented our Health Declaration, stating that we will strongly promote activities tomaintain and increase the health of employees and their families, and the Group is working together as one to engage inhealth and productivity management.
1. The Fuyo Lease Group recognizes that employees are its greatest asset, and that their health and that of their families
is important.
2. Employees also recognize that their health and that of their families is irreplaceable and will proactively work tomaintain and increase their own health.
3. The Company will continuously support these initiatives by employees and provide comfortable work environments.
4. With the participation of employees who are healthy and work with energy and enthusiasm, the Group will aim toresolve social issues and realize a better society.

The Fuyo Lease Group's Health and Productivity Management System

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download95

Health Committee
Fuyo Lease believes that creating a working environment where employees can work healthily, safely, and energeticallywill revitalize the company and lead to improved productivity.
Based on this idea, the Health Committee, set up under the Industrial Safety and Health Act, meets once a month tomaintain and improve the health and safety standards of the workplace. The Health Committee consists of health andsafety managers from each department, division managers, and occupational physicians. The Committee is responsiblefor identifying issues concerning health and safety at the Fuyo Lease Group, planning as well as implementing measures,and verifying the results of those measures.

Maintaining the Health and Productivity of Employees
In fiscal 2022, we identified employee disease prevention and early detection of disease as a priority issue for health andproductivity management. We lowered the age at which employees can receive a complete medical checkup with noout-of-pocket expenses from 40 or over to 35 or over, and all eligible employees received a complete medical checkup.
In addition, we believe that creating an environment in which female employees can maximize their abilities without
interrupting their careers will drive the Group’s growth. Based on this belief, we began holding online seminars toincrease understanding of women’s health issues. From fiscal 2023, we have been holding individual consulting sessions
guided by a female doctor three times a month for all female employees of the Group.
In recognition of these efforts, the Company was certified as a 2023 Health and Productivity Management Outstanding
Organization (large enterprise category), following on from its certification in fiscal 2021.
Performance Indicator

FY2021

FY2022

FY2026 Target

Percentage of employees aged 35
or over who have had a healthexamination (non-consolidated)

86%

100%

100%

Health examination
Health examinations for employees are held once a year. The general periodic health examination take rate for fiscal
2022 was 100%.

Mental health care
Fuyo Lease has been conducting stress checks since 2010, in order to maintain and improve employees' mental health.
With mandatory stress checks, the implementation system and method were discussed again this year by the HealthCommittee. Since establishing internal regulations, we have been carrying out activities with six affiliated companies
since 2021.
Employees receive stress checks on the Web and, after about a month, they can check the results of evaluations given byoccupational physicians, who are the implementers of the Web check. When doing so, we encourage employees who
have been assessed to be highly stressed to have a medical interview with an occupational physician, and take necessary
work-related measures based on the results of the interview.
In addition to stress checks stipulated in the Industrial Safety and Health Act, employees and their families can consult
specialist counselors. The results are not disclosed to the company, because we consider the privacy protection needs ofindividuals.
96

Site Policy

Privacy policy

Customer-oriented Operational Policies

Blocking Relationships with Antisocial Forces

Site Map

Basic Policy for Prevention of Money Laundering, etc.
© Fuyo General Lease Co., Ltd.

97

HOME

Sustainability

Governance and Management

Governance and Management
Corporate Governance

Code of Corporate Conduct

Risk Management and Compliance System

Information Security

Investment in intellectual property

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

98

HOME

Sustainability

Governance and Management

Corporate GovernanceCorporate Governance
Basic Approach to Corporate Governance
The Fuyo Lease Group places strong emphasis on creating and maintaining relationships with various stakeholders,
including shareholders, customers, employees, and local communities. We believe that the fundamental and mostimportant objective of corporate governance is to perform business activities with sincerity and fairness in line with theGroup’s mission, vision and value and to achieve the management targets outlined in the Group’s Medium-Term
Management Plan, Fuyo Shared Value 2026.
To achieve sustainable growth and increase corporate value over the medium to long term, we have established our own
Corporate Governance Guidelines which align with the purpose and spirit of the Japan's Corporate Governance Code.
These Guidelines serve as the foundation for our corporate governance framework, operating policies and othermanagement policies, to which we adhere to everything we do.

Corporate Governance Structure
Fuyo Lease employs the format of company with an Audit & Supervisory Board and has two outside Audit & Supervisory
Board Members who are independent from our company. In addition, to further improve the supervisory function of theBoard of Directors, four independent outside directors are appointed to supervise and advice on the execution ofbusiness operations from an external perspective.
Furthermore, to improve management efficiency and expedite decision-making by separating the management
oversight function from the execution of operations, we have adopted the executive officer system.
For further details, please refer to: Fuyo Lease Group Report on Corporate Governance (PDF)

Report on Corporate Governance (712KB)

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download99

Internal Committees
Compliance Committee

The Compliance Committee discusses matters related to thepromotion of compliance systems and the formulation ofcompliance programs (annual plan).

CSV Promotion Committee

The CSV Promotion Committee directs CSV promotion anddeliberates on materiality planning, etc.

DX Strategy Promotion Committee

The DX Strategy Committee directs overall DX strategies anddeliberates on the development of frameworks for the promotionof the strategies and necessary IT systems and the formulation ofsales strategies.

Business Risk Review Committee

Business Risk Review Committee deliberates on projects that havea significant influence on management and policies for initiatives
regarding business models and monitors the status of businessrisk, including credit risk.

ALM Committee

ALM Committee deliberates on specific measures for market risk
management, including interest rates, foreign exchange and pricefluctuations and monitors market risk situations.

System Strategy Committee

System Strategy Committee discusses and promotes overall
strategies for the Company’s IT systems.

Funds Investment Council

The Funds Investment Council deliberates on the establishment ofinvestment limits regarding investment projects related to funds
and monitors management status.

New Business Council

New Business Council deliberates on new projects that may
generate new business fields.

The Group Internal Audit Division
Committee

The Group Internal Audit Division Committee shares information,
advises Group companies and promotes collaboration among theGroup Internal Audit Divisions.
100Corporate Governance Guidelines
In conformity with the purpose and spirit of the Japanese Corporate Governance Code, Fuyo Lease has established ourown Corporate Governance Guidelines, which provide a foundation for corporate governance framework, operating
policies, etc. The Corporate Governance Guidelines set out the framework, operating policies, roles, and responsibilities
of different supervisory and executive functions, in addition to our basic approach to corporate governance. To achievesustainable growth and increase our corporate value over the medium to long term, we adhere to these guidelines ineverything we do across the Fuyo Lease Group.
For further details, please refer to: Corporate Governance Guidelines (PDF)
Corporate Governance Guidelines (55KB)

Activities of Main Organizations
Board of Directors
The Board of Directors is chaired by a non-executive internal Director and at least one-third of the board members are
Independent Outside Directors. Additionally, non-executive Directors make up at least half of the board, ensuring aseparation between execution and supervision. The Board of Directors deliberates and decides on important matterssuch as management plans and risk management, as well as matters stipulated by laws and regulations, and supervises
the execution of duties by Directors and Executive Officers through monthly management reports and regular reports foreach business domain.
In fiscal 2022, the Board of Directors met 12 times. The attendance rate was 100%.

Nomination and Remuneration Advisory Committee
Fuyo Lease has set up the Nomination and Remuneration Advisory Committee as a voluntary advisory body of the Boardof Directors to ensure objectivity and independence in the process of determining nomination of officers, remuneration,etc. The members and Chairperson of the Committee are non-Executive Directors. The Committee deliberates on thenomination of candidates for appointment as Directors or Audit and Supervisory Board members or removal thereof,
remuneration for Directors, succession plans for President & CEO, and the analysis and evaluation of overall
effectiveness of the Board of Directors. The Committee then reports its findings to the Board of Directors. The content ofsuch findings is determined based on the consent of all members present at the meeting, or when such consent may not
be obtained, on the consent of a majority of the members present at the meeting.
In fiscal 2022, the Nomination and Remuneration Advisory Committee met 5 times. The attendance rate was 100%.

Audit & Supervisory Board
According to the audit plan formulated by the Audit & Supervisory Board, each Audit & Supervisory Board Member audits
execution of operations by directors by attending important meetings, reviewing important documents, examining
operations and assets, and by hearing the audit findings of the Group Internal Audit Division. Audit & Supervisory Board
Members work closely with the Group Internal Audit Division and Internal Control Departments to enhance audit quality.
At the request of the Audit & Supervisory Board Members, an employee (a staff member from the Board of Directors
Operations office) has been appointed to assist them.
In fiscal 2022, the Audit & Supervisory Board met 13 times. The attendance rate was 100%.
Attendance at Board and Committee meetings (attendance in FY 2022 by board members, as of June 23, 2023)
Name

Yasunori Tsujita

Position

Attendance at Board and Committee
meetings

Director and Chairman
Chairperson of the Board of Directors

Board of Directors: 12/12

Chairperson of the Nomination andRemuneration Advisory Committee

Nomination and Remuneration Advisory
Committee: 5/5

101

Name

Position

Attendance at Board and Committee
meetings

Hiroaki Oda

President and Chief Executive Officer(Representative Director)

Board of Directors: 12/12

Soichi Hosoi

Director and Deputy President(Representative Director)

Board of Directors: 12/12

Keiji Takada

Director and Deputy President(Representative Director)

Board of Directors: 12/12

Yusuke Kishida

Senior Managing Director

Board of Directors: 10/10- (Elected in June 23,2022)

Director (Independent Outside Director)

Board of Directors: 12/12

Member of the Nomination andRemuneration Advisory Committee

Nomination and Remuneration Advisory
Committee: 5/5

Director (Independent Outside Director)

Board of Directors: 12/12

Member of the Nomination andRemuneration Advisory Committee

Nomination and Remuneration Advisory
Committee: 5/5

Director (Independent Outside Director)

Board of Directors: 12/12

Member of the Nomination andRemuneration Advisory Committee

Nomination and Remuneration Advisory
Committee: 5/5

Director (Independent Outside Director)

Board of Directors: 12/12

Member of the Nomination andRemuneration Advisory Committee

Nomination and Remuneration Advisory
Committee: 5/5

Yoshito Tsuruta

Full-time Audit & Supervisory Board
MemberBoard of Directors: 12/12
Audit & Supervisory Board: 13/13

Masaharu
Nakamura

Full-time Audit & Supervisory Board
MemberBoard of Directors: 10/10
Audit & Supervisory Board: 10/10- (Elected in June 23,2022)

Takashi Yonekawa

Outside Audit & Supervisory Board
Member (Independent)

Board of Directors: 12/12
Audit & Supervisory Board: 13/13

Hiroshi Imoto

Outside Audit & Supervisory Board
Member (Independent)

Board of Directors: 12/12
Audit & Supervisory Board: 13/13

Seiichi Isshiki

Hideo Ichikawa

Masayuki
Yamamura

Hiroko Matsumoto

Executive Committee
The Executive Committee is composed of Executive Officers with positions of Managing Executive Officer or higher, theheads of the Corporate Planning Division and Human Resources Division as well as the presidents of affiliatedcompanies. Full-time Audit & Supervisory Board Members also attend meetings of the Committee on a regular basis.
As a general rule, the Executive Committee meets at least once a month to make decisions on operating activities andimplementation of measures delegated to the President & CEO, and to discuss important issues concerning internal
controls. Its aim is to improve the quality of management decisions and to speed up decision-making.
In fiscal 2022, the Executive Committee met 20 times.
102

Compliance Committee
Fuyo Lease has set up a Compliance Committee chaired by the Chief Compliance Officer and vice chaired by the Group
Legal and Compliance Division Officer. The heads of relevant planning and administrative departments, the heads of
relevant departments of domestic and overseas subsidiaries serve as full-time committee members, and outside lawyers
serve as outside members. The Compliance Committee meets quarterly to discuss issues related to compliance systems
and implementing annual compliance plans. Based on its discussions the Committee submits reports to the Board of
Directors and the Executive Committee, and takes measures to develop and enhance compliance systems.

Internal Audit
The internal audit function is administered by the Group Internal Audit Division (staffed by nine employees). The GroupInternal Audit Division conducts operational audits of all departments, offices, branch offices, and major subsidiaries,
and plays a part in ensuring that internal controls are functioning in addition to examining their effectiveness. The
results of these audits of operations are reported to the President & CEO and Audit & Supervisory Board Members every
time they are conducted and periodically to the Board of Directors and the Executive Committee.

Internal Control System
Fuyo Lease has instituted an internal control system across our corporate group to ensure compliance with all relevantlaws and the articles of incorporation, capability to respond to various risks in a timely and appropriate manner, and toensure transparency and efficiency of operations, in addition to ensuring the reliability of financial reports, etc.
The Group Internal Audit Division, Audit & Supervisory Board Members, and accounting auditor share information aboutaudit findings to monitor the status and operation of the internal control system. The status of the internal control
system operation is reported to the Board of Directors during a meeting held at the end of each fiscal year, andcontinuous improvements are made in the light of the audit findings.
Basic Policy for Establishing the Internal Control System (in Japanese) (168KB)

Initiatives to Improve the Effectiveness of the Board of Directors
Fuyo Lease is engaged in a number of initiatives to ensure active and substantial discussions at its Board of Directors’
meetings. Regarding the analysis and evaluation of the overall effectiveness of the Board of Directors, a questionnaire
was administered to all directors and Audit & Supervisory Board Members and interviews were held as necessary. After
deliberations and reporting by the Nomination and Remuneration Advisory Committee (with the committee’s secretariat
being assisted by our corporate lawyers), of which independent outside directors comprise the majority, the results of
the analysis and evaluation were resolved by the Board of Directors.

Evaluation process (corporate lawyer assists the secretariat)
Assessment Criteria
1. Composition, etc. of the Board of Directors
2. Roles of the Board of Directors
3. Operation of the Board of Directors
4. Frameworks for supporting Outside Officers
5. Summary

FY2022 Evaluation Results
The effectiveness of the Board of Directors was confirmed as its size, composition, functions, roles, operation, and allother evaluation items were recognized to be appropriate. It is necessary to continue to steadily promote and further
establish measures to improve the functions of the Board of Directors and to constantly review the Board of Directors in
response to changes in the internal and external environment.
103

Progress on Issues identified last fiscal year
Issue 1 Further improvement of the Board of Directors’ functions

FY2022 Initiatives
Changed the Chairperson of the Board of Directors from being the President and Chief Executive Officer, the top
execution position to a non-executive Director (The Director and Chairperson, a non-executive internal Director,
assumed the role of the Chairperson of the Board of Directors following passage of a resolution by the Board.)
Transferred authority to execution by reviewing the criteria for submission stipulated in the Regulations governing
the Board of Directors.
Started initiatives in the Nomination and Remuneration Advisory Committee to advance succession planning.

Issue 2 Steady progression was made on the Medium-Term Management Plan and further
deepening of CSV management
FY2022 Initiatives
The Board of Directors received reports and deliberated on the progress status updates from each businessdomain, achievement status of each non-financial target and progress of the DX strategy, etc.
Conducted a management audit to measure the degree of Mission, Vision and Values prevalent within the Group.

Issue 3 Further enhanced information provision to Outside Officers

FY2022 Initiatives
Conducted Outside Officer workplace inspection tours (twice in total) that had been delayed by the impact of the
COVID-19 pandemic.

Future Issues and Initiatives
We recognized as issues that need to be addressed as continuing to advance the succession plan, enhancing deliberation
further on medium- to long-term themes and CSV management and the need to better provide information to Outside
Officers.

Strengthening Corporate GovernanceFuyo Lease has implemented various initiatives aimed at strengthening corporate governance.
Year

2015

2016

2018

Initiative

Objective

Increased the number of independent
outside directors from one to two

To strengthen the management oversight
structure

Established the Corporate Governance
Guidelines

To comply with the Japanese Corporate
Governance CodeSet up the Nomination and Remuneration
Advisory Committee

To ensure independence and objectivity inthe decision-making process for matterssuch as nomination and remuneration

Started analyzing and evaluating theoverall effectiveness of the Board of
Directors

To verify the effectiveness of the roles andfunctions, etc. of the Board of Directors
and to make ongoing improvements

Increased the number of independent
outside directors from two to three

To strengthen the management oversight
structure

Introduced a stock remuneration plan
(Board Benefit Trust, BBT)

To strengthen links between board
remuneration, shareholder value, andachievement status of the Medium-termManagement Plan
104

Year

2019

2021

Initiative

Objective

Released an English version of the
Corporate Governance Report

To enhance external disclosure related tocorporate governanceBegan reporting annual internal audit
results and annual plans and policies tothe Board of Directors

To expand reporting lines for internal
auditsIncreased the number of independent
outside directors from three to four

To strengthen the management oversight
structure

Revised Corporate Governance Guidelines

To comply with revised JapaneseCorporate Governance CodeAppointed a non-executive Director as
chairperson of the Board of Directors

2022

Comprised the Nomination andRemuneration Advisory Committee of nonexecutive Directors
Regarding indicators used for the
calculation of performance-linked
remuneration based on the new mediumterm management plan, changes weremade to financial items and non-financial
items were added.

Separation of execution and supervision

To ensure the achievement of financial andnon-financial targets in the new mediumterm management plan

Director Qualifications and Nomination Procedures
Policy and procedures for nominating and removing Directors and nominating candidates
for Audit & Supervisory Board Member
Our Corporate Governance Guidelines set forth procedures for nominating and removing Directors in addition to thequalifications of Audit & Supervisory Board Members and procedures for nominating Audit & Supervisory Board Member
candidates. Under these guidelines, a Director or Audit & Supervisory Board Member candidate must possess an
outstanding character, a wide breadth of knowledge, abilities, experience, and high ethical standards. The guidelines
also specify that candidates be nominated regardless of factors such as sex, age, and nationality, with the aim ofachieving greater diversity. To ensure fairness and transparency in the nomination process, the selection of candidates
for Directors and Audit & Supervisory Board Members is finalized by the Board of Directors following a discussion by the
Nomination and Remuneration Advisory Committee, which is comprised of majority Independent Outside Directors.
Selection of Audit & Supervisory Board Member candidates is finalized by the Board of Directors upon consent of the
Audit & Supervisory Board.

Independence standards for Outside Directors and Outside Audit & Supervisory Board
Members
Independence standards for Outside Directors and Outside Audit & Supervisory Board Members are stipulated in the
Corporate Governance Guidelines in line with the independence standards prescribed in the Guidelines Concerning
Listing Management, etc. established by the Tokyo Stock Exchange.

105

Skills Matrix(Note)
1. The above table does not show all the insight and experience held by each Director and Audit & Supervisory Board Member.
2. Of the 13 Directors and Audit & Supervisory Board Members, 12 are male and 1 is female. Years in office are calculated based on thenumber of months.

Director Remuneration
Fuyo Lease has a basic policy to link Director remuneration to corporate performance and shareholder value to boost
their morale and motivate them to improve the Company’s financial performance and share price, ensuring stableperformance and growth, while enhancing corporate value.
Regarding determination of remuneration for individual Directors, the basic policy is to set it at an appropriate level,taking into account each Director's respective responsibilities and other factors. The Company has introduced
performance-linked remuneration and stock-based remuneration (Board Benefit Trust (BBT)) as variable remuneration
systems, in addition to base remuneration provided as fixed remuneration.
The amount of performance-linked remuneration is determined based on factors such as consolidated performance,
degree of contribution to Company performance and efforts to address medium- to long-term management issues.
Performance linked remuneration is determined according to consolidated business performance and contribution
made by each officer to the performance. The stock remuneration plan is designed to further clarify the link between
officers’ remuneration and the value of the Company’s shares and to further raise officers’ awareness of contributing to
improving business performance and increasing corporate value over the medium to long term.
Taking into consideration the average ratio of remuneration in listed companies and other factors, the ratio of
remuneration and the breakdown of variable remuneration are as shown in the chart below.
Directors’ remuneration is discussed by the Nomination and Remuneration Advisory Committee to ensure greatertransparency and objectivity.
Internal Directors who do not execute operations are paid fixed remuneration and stock based remuneration, while
Audit & Supervisory Board Members and Outside Directors who have supervisory functions are paid fixed remuneration
only because the concept of performance based remuneration and stock remuneration is not suitable for the nature of
their duties.
Fuyo Lease stipulates in its internal rules that if a Director causes significant damage to the Company or engages ininappropriate conduct, etc., the Director will be subject to a reduction or non-payment of their base remuneration or
performance-based remuneration, or cancelation of their right to receive stock remuneration.

106

Internal Director Remuneration Composition

Remuneration of Board Member (Fiscal 2022)
Board Member
classification

Total amount(millions ofyen)

Directors

Breakdown of remunerations (millions of yen)

Number of
Board
Member
ApplicableBasicremuneration

Performancelinked
remuneration

Nonmonetary
remuneration

360

228

54

76

11

(Outside Directors)

48

48

-

-

4

Audit &
Supervisory Board
Members

66

66

-

-

5

(Outside Audit &Supervisory Board
Members)

21

21

-

-

2

* The above performance-linked remuneration comprises the amount, which shall be recorded in fiscal 2022.
* Non-monetary remuneration is a board benefit trust (BBT). The amount of the BBT comprises the amount recorded in the fiscal year
based on the number of points granted or expected to be granted during the fiscal year.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

107

HOME

Sustainability

Governance and Management

Code of Corporate Conduct

Code of Corporate Conduct
Fuyo Lease Group Code of Corporate Conduct
The Fuyo Lease Group has established the following six basic policies (guidelines) as an important foundation for
implementing our Mission / Vision / Value; positioning them as the “Fuyo Lease Group Code of Corporate Conduct” as awhole.
The contents of each policy can be viewed by clicking on the policy in the diagram.

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement

MissionEach Group Company's
Environmental and Social
initiatives

Our responsibilities
and raison d ʼetre

VisionWhat we want to become

Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:

Value

Guiding principles

Fuyo Lease Group Code of Corporate Conduct"Integrated Report" PDF
download

Fuyo Lease Group Basic Compliance Policy
Basic Policy for Establishing
the Internal Control System
Basic Policy on Systems to Support
Sustainable Value Creation
Corporate Governance Guidelines

Fuyo Lease Group
Human Rights Policy

Fuyo Lease Group
Environmental Policy108

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

109

HOME

Sustainability

Governance and Management

Risk Management and Compliance System

Risk Management and Compliance System
Our Approach to Risk Management and Risk Management System
As stipulated in the Fuyo Lease Group risk management regulations, we have established a risk management system at
our locations across the globe in order to manage risks based on their particular risk characteristics and importance.
Risks to be managed are categorized into credit, market (such as interest rate fluctuation risk), liquidity (such as cash
flow risk), administrative, system, legal, human, reputation, and other risks. Each type of risk is managed by a designateddepartment.
The Board of Directors and the Executive Committee receive updates on risk management, discuss risk management
policies according to the characteristics and importance of each risk, and evaluate the effectiveness of risk management.
The Asset and Liability Management (ALM) Committee meets on a regular basis to appropriately manage and control
market and liquidity risks. These efforts enable us to continually improve our risk management system.
For risk events that may affect the Group’s business, the Group has sought to comprehensively identify risks facing eachGroup business considering the scale and characteristics of the identified risks while making sure to include risks in eachbusiness domain, such as economic downturns, market fluctuations, and downturns in individual markets.
In addition, as a risk governance system for the entire group, we have established a "Three-Line Defense System" basedon risk management by each business unit (first line), risk management by the risk control department and thedepartment in charge of risk (second line), and verification by the internal audit department (third line).
The designated risk management division formulates a basic policy for managing risks identified as targets, andconducts an appropriate analysis, evaluation and measurement of risks according to the size and characteristics of therelevant business and risk profiles. In addition, the designated risk management division monitors the status of risks
held from an independent perspective, reports the results of monitoring to the Executive Committee, etc., andimplements supervision of sales and marketing divisions with an approach geared to the situation.
Moreover, the risk control division has established integrated risk management systems to promote risk management bycomprehensively identifying and evaluating risks by risk category, and to control risks within the scope of management
capabilities.

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

110

Risk Management Training
In order to foster a corporate culture that enables risk prevention and that can take appropriate measures against risks,
the Fuyo Lease Group regularly conducts training that includes content related to risk management. For example, in theleasing industry, legal risks are expected to be high, so training is conducted for new employees on regulatory laws andregulations. We focus on training using case studies and other methods so that each employee can deepen theirunderstanding of possible risks in their work and take appropriate measures.

Our Approach to Compliance and Compliance System
At the Fuyo Lease Group, ensuring compliance is a fundamental principle of management. We work to strengthen andenhance our compliance system, which enables us to operate with integrity and fairness by conforming to relevant social
norms, while complying with laws and regulations.
We promote compliance throughout the Group by stipulating various regulations, procedures, and manuals, conducting
compliance education, and enhancing the whistleblower system on the basis of the Fuyo Lease Group's Code ofCorporate Conduct. In order to maintain and further improve our compliance systems, we implement and carry out
compliance programs every fiscal year. Issues associated with the compliance programs are discussed at the Compliance
Committee and the Executive Committee before being submitted to the Board of Directors for approval. Findings andprogress of the programs are reported to the Board of Directors on a semi-annual basis.
The core of group compliance system is the Compliance Committee chaired by the Chief Compliance Officer and vicechaired by the Group Legal and Compliance Division Officer. The heads of relevant planning and administrative
departments, the heads of relevant departments of domestic and overseas subsidiaries serve as full-time committee
members, and outside lawyers serve as outside members. To verify the effectiveness of the compliance system for theentire group, the Compliance Committee meets every three months to deliberate and report on the formulation andprogress of the Group's compliance program, whether or not compliance problems have occurred and how to deal withthem, and trends in the enactment, revision, or abolition of major laws and regulations. In addition, at least once every
three years the internal audit division conducts audits on the status of compliance with laws, regulations, and rules
stipulated in the Fuyo Lease Group Basic Compliance Policy, fair business practices, risk management, and managementof information assets, among other items, and the findings are used to consider improvements and other measures tofurther strengthen the compliance system.
We will continue our group-wide activities including management and implementation of compliance measures andcompliance education, and streamlining our compliance systems across the Group to improve their effectiveness.

Fuyo Lease Group Basic Compliance Policy
The Fuyo Lease Group has formulated the Fuyo Lease Group Basic Compliance Policy, which specifies the basic policies
and position of the entire group as well as behavioral guidelines for the employees of the Group.
We conduct training programs and offer e-learning courses to all employees to enhance the effectiveness of the thisBasic Policy. These programs and courses ensure that all employees are aware of the Basic Compliance Policy, andevaluation of the training is regularly reviewed.
Fuyo Lease Group bases its business management on the approach of CSV (Creating Shared Value), and aims forbuilding a sustainable society and at the same time achieving the Group’s continuous growth through its
business undertakings.
For realization of these aims, it is essential to engage in compliant practices supporting sound corporate
management with our mission, vision and values. Fuyo Lease Group has established this Fuyo Lease Group Basic
Compliance Policy as guidelines for conduct to be observed by its directors, officers and employees.

1. Compliance with Laws and Rules(1) Fuyo Lease Group regards compliance as one of the most important management issues, will strictly comply
with all laws and rules, and will engage in business honestly and fairly, without deviation from social norms.
(2) Fuyo Lease Group will not only comply with international rules and the local laws of countries and regions inwhich Fuyo Lease Group conducts business, but will also respect the customs and cultures of such countries
and regions.
111

2. Respect for Human Rights
Recognizing the risk that Fuyo Lease Group’s business activities may have an adverse effect on human rights,
Fuyo Lease Group will, through its business activities and in accordance with the Fuyo Lease Group Human
Rights Policy, contribute to the realization of a society in which human rights are respected.

3. Commitment to Environmental Issues
Recognizing that environmental issues are not only community issues but also global issues, Fuyo Lease Groupwill be actively committed to the realization of a sustainable society, in accordance with the Fuyo Lease Group
Environmental Policy.

4. Fair Business Activities(1) Fuyo Lease Group will always strive to deal honestly with its customers, and will make efforts to engage intransactions in compliance with established rules and procedures and under appropriate terms andconditions.
(2) Fuyo Lease Group will engage in fair and transparent transactions with all of its customers based upon theprinciple of free competition and in compliance with antitrust laws and other relevant laws.
(3) Fuyo Lease Group’s directors, officers and employees will behave in a way that their own interests do notundermine the company’s or its customers’ interests, and will not use corporate assets for their own private
purposes.

5. Risk Management
With full awareness of their respective roles and responsibilities, Fuyo Lease Group’s operating divisions,
corporate functions divisions and internal audit division will exercise appropriate management of and control
over anticipated risks which Fuyo Lease Group may face in its activities.

6. Management of Information Assets and Respect for Intellectual Property
Rights(1) In recognition of the importance of information assets, Fuyo Lease Group will strictly manage such assets.
Fuyo Lease Group will obtain information from outside sources by legitimate means, and will not divulge toany other persons any personal and / or nonpublic information of its customers which may become known
to it in the course of business or Fuyo Lease Group’s own confidential information.
Any information which may be obtained by Fuyo Lease Group will be used solely for its business purposes,
and not for insider trading or other private benefits.
(2) Fuyo Lease Group will respect intellectual property rights including patent rights and copyrights, and will
not infringe any other persons’ intellectual property rights.

7. Appropriate Disclosure of Information
Fuyo Lease Group will continuously strive to improve transparency in the management of its business by fairly,
timely and appropriately disclosing information.

8. Avoidance of Relations with Anti-Social Forces(1) Fuyo Lease Group will avoid any relations with anti-social forces which threaten social order or safety.
(2) Fuyo Lease Group will not be involved in any way in terrorism, money laundering or any other organizedcrime.

9. Political Involvement; Government Relations(1) The conduct of Fuyo Lease Group in political involvement and government relations will be sound andnormal.
(2) Fuyo Lease Group will not be involved in any way in bribery or corruption.
112

Whistleblower Hotline
The Fuyo Lease Group operates whistleblower hotlines.
In addition to the in-house compliance hotline, we provide a consultation service desk through a cooperating law firm.
These services are available on a regular basis and guidance to these services is always posted on the company's intranet
bulletin board. Concerned individuals can immediately seek consultation or report whenever they detect any violationsof the law, the Basic Compliance Policy and other corporate regulations, harassment cases, misconduct in information
management or other potential infringements. The whistleblower systems accept anonymous reports to protect
whistleblowers.
Compliance Officers* as well as persons in charge of compliance are appointed as consultants within their departments
and group companies to handle individual cases. In the event of non-compliance or a suspected violation, compliance
personnel such as compliance officers are responsible for taking appropriate measures and conducting investigations
and reports in accordance with instructions and orders from Fuyo Lease's Group Legal and Compliance Division and theheads of the compliance departments of the relevant group companies as per the Compliance Manual.
* A compliance officer is appointed for each department or company to raise compliance awareness and ensure compliance.

Furthermore, Fuyo Lease has appointed full-time corporate auditors as a contact point for receiving whistleblower
reports from group companies, and we have also set up a contact point at affiliated law firms for whistleblowing from
employees of overseas subsidiaries.
In fiscal 2022, 10 reports were received through the hotline. In each case, investigations are promptly conducted, such asconfirming the facts with the parties concerned with due care to protect whistleblowers against detrimental treatment
and taking appropriate measures. All cases have been resolved, and measures put in place to prevent recurrences.

Prohibition of Corruption and Bribery
The implementation of fair and transparent transactions based on the principle of free competition is clearly stated in
section 4. Fair Business Practices and Chapter 9, Relations with Politics and Governments of the Fuyo Lease Group Basic
Compliance Policy. We prohibit corruption, including bribery, and any actions that could be suspected of being corrupt,
and facilitation payments are no exception. The Management Committee and Board of Directors of Fuyo Lease oversee
these policies and their management status and receive periodic reports from the Compliance Committee.
In order to prevent corruption and bribery and bring about its early detection, the Company implements compliance
audits in addition to identifying businesses, intermediaries and business partners that are high risk in the flow of its
operations and avoiding involvement with them. In business audits, risks regarding the identification and prevention ofcorruption and bribery are appropriately evaluated based on confirmation of items such as proper use of entertainment
expenses and the existence of a long-term employees in the sales department. Furthermore, for cases that areconsidered to be particularly high risk, we confirm that the compliance officer has further evaluated theappropriateness, and we are thoroughly preventing corruption and bribery.
We inform all Group employees about the Basic Compliance Policy and the prohibition of corruption and bribery, andencourage them to report to and seek consultation with the Whistleblower Hotline whenever they have any suspicions.
Support is also available anonymously.
Furthermore, the Basic Compliance Policy strictly prohibits the forging of collusive ties with political and administrative
authorities and business partners, and the private use of the company's assets. In fiscal 2022, no infringements related tocorruption were found in the Group. Additionally, no employees were dismissed or subjected to disciplinary action due
to corruption.
In fiscal 2022, the Company made no political donations.

Compliance Training
The Fuyo Lease Group emphasizes employee training programs that are designed to ensure compliance. Our training
programs include workplace compliance training and e-learning on insider trading regulations for all Group employees,
as well as group training conducted by external instructors for directors, heads of departments, offices and branch
offices, presidents of Group companies, and departmental compliance officers. *113

Compliance Training (fiscal 2022)
Group training and workplace training
Participant

Subject# of session

New recruit

Introduction to compliance, Fuyo Lease Group Basic
Compliance Policy, exclusion of anti-social forces

1

1st year employee (Generalist
track)

Confidential information management, Personal
information protection, Prevention of harassment,
Insider trading regulations

1

5th year employee (Generalist
track)

Response to accidents and troubles

1

Newly appointed head of
department / branch officeRequired compliance understanding of managers

1

Newly appointed assistantmanager / section chief

Prevention of power harassment, sexual and maternity
harassment

2

All employees (Including
contract and dispatch
employees and part-timeworkers)

Prevention of power harassment

1

Directors and head of
department / office / branch
officePrevention of harassment (sexual, power,
discrimination related to pregnancy)

1E-learning
Participant

Subject# of session

Directors, head of department/ office / branch office,compliance officer, entry level

Regulation for Insider Trading (e-learning material of
the Japan Exchange Group)2

All employees (Including
contract and dispatch
employees and part-timeworkers)

General issues on compliance

1Prevention of Money Laundering
The Fuyo Lease Group is striving to prevent money laundering and funding of terrorism.
Fuyo Lease complies with laws and guidelines together with a thorough due diligence of its business partners inaccordance with its Policy for the Prevention of Money Laundering. In addition, we have established a system toprevent money laundering and funding of terrorism not only in Japan but also in transactions outside Japan.
Furthermore, we continuously strive to promote understanding by way of training for all group employees and byinviting outside experts to train the compliance and legal staff of each group company.

114

Prevention of Insider Trading
At the request of the Tokyo Stock Exchange, Fuyo Lease has joined the J-IRISS*, which aims to prevent unfair trading andto maintain the transparency and impartiality of the market.
* J-IRISS (Japan-Insider Registration & Identification Support System): A system operated by the Japan Securities Dealers Association bywhich listed companies register information on their officers and securities firms periodically compare this information on officers with
their customer information with the aim of checking for unfair trading before it happens and eliminating it as much as possible.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

115

HOME

Sustainability

Governance and Management

Information Security

Information Security
Our Approach and Management System for Information Security andCustomer Information Protection
With unauthorized access to information via the Internet as well as cyber-attacks increasing daily and becoming moresophisticated, the Fuyo Lease Group recognizes that information security risks are an important management issue. The
Group has established an information management system based on work content, and strictly manages customer
information.
In order to establish a strict information management system for the entire Group, data is strictly controlled by our
information security manager in accordance with detailed rules, including the Confidential Information Management
Rule. Additionally, each employee is thoroughly informed of the Appropriate Information Management section includedin the Code of Corporate Conduct as well as the Privacy Policy, and we have implemented level-specific information
security training programs. Furthermore, the internal audit division conducts regular audits on information security.

Initiatives to Information Security and Customer Information Protection
To appropriately protect customer information, when outsourcing work, we impose confidentiality obligations on
outsourcers, and when obtaining personal information from individual customers, we always give notice of the purposeof use in accordance with the Act on the Protection of Personal Information and its guidelines. In addition, our rules andregulations subject to disciplinary action under the rules of employment include rules and regulations that concern
information security, and we make efforts to prevent violations. Furthermore, to maintain our information security
system, once a year, we confirm procedures that are not only conducted under regular circumstances but also those inwhich we assume emergency situations in response to incidents such as cyber-attacks and natural disasters.
Also, training is provided for each level of employment so that each employee can recognize the importance of
information security and manage information appropriately. In fiscal 2022, we conducted training on confidential
information management and personal information protection for first-year employees in the generalist track.
In fiscal 2022, there were minor issues, such as wrong email transmissions and incorrect delivery of mail, but there were
no incidents, such as violations of laws and regulations concerning information security, and there were no related
sanctions.
In response to each customer segment and the work being handled, the following group companies have acquired thePrivacy Mark Glossary business operators who have been deemed appropriate for the handling of personal
information, and ISO27001 certification Glossary , which is a global standard for information security management
systems. By continuously improving our management systems based on these standards, we are working to further
improve reliability.

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

116

Sharp FinanceSharp Finance is a leasing company that has its strengths in the retail market for small retail leasing, such as developing
vendor leasing in collaboration with dealers for small- and medium-sized enterprises.
Since 2006, the company has been granted the Privacy Mark by JIPDEC.

Privacy Mark Registration Certificate

Accretive
Accretive provides solution services such as financial services and accounting administration. In March 2006, it acquired
ISO27001 certification for the entire company.

ISO27001 Management System Registration Certificate

117

INVOICEINVOICE's offerings include business customers integrated billing services that help reduce costs and improve
productivity, and Internet services for residential buildings for individual customers.
Since 2008, the company has been granted the Privacy Mark by JIPDEC.

Privacy Mark Registration Certificate

NOC Outsourcing & Consulting
NOC Outsourcing & Consulting handles a wide range of business outsourcing such as back office services (accounting, HR
and payroll, general affairs, sales administration), IT services, personnel services.
In 1998, NOC Outsourcing & Consulting was granted the Privacy Mark by JIPDEC first in Japan. Furthermore, in February
2006, it acquired ISO27001 certification for the Information Systems Department, Business Headquarters.

Privacy Mark Registration Certificate

ISO27001 Management System Registration
Certificate

118

WorkVision
WorkVision provides a full range of IT solutions centered on cloud services and package services that cover planning,development and sales to operation, maintenance and other services.
In 2005, it was granted the Privacy Mark by JIPDEC and in 2007, it acquired ISO 27001 certification for the entire
company.

Privacy Mark Registration Certificate

ISO 27001 Management System Registration Certificate

119FGL Techno-Solutions
FGL Techno-Solutions provides equipment sales, outsourcing helpdesk services, kitting, construction, and othertechnical services in ICT-related fields. In June 2022 it received ISO 20000 and ISO 27001 certification for its departmentsthat provide systems and operations management services for customers.
Other registration certificates will be posted once organizational restructuring has been completed.

ISO 20000 and ISO27001 Management System Registration Certificates

FGL Circular Network
FGL Circular Network purchases and sells property of Fuyo Lease whose leases are up and used property owned bycustomers. The company has acquired ISO 27001 certification for its Hachioji Technical Center, which carries out reuse
and recycling of such property.

ISO 27001 Management System Registration Certificate

120

Glossary
Privacy MarkThe Privacy Mark is given to business operators that handle personal information appropriately by
conforming to the standards set in the Japanese Industrial Standard of JIS Q 15001: 2017 Personal
Information Protection Management System - Requirements.

ISO27001

ISO27001 is a global standard for the specification of information security management systems establishedby the International Organization for Standardization.

ISO20000

ISO 20000 is a global standard for the specification of IT service management systems established by theInternational Organization for Standardization.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

121

HOME

Sustainability

Governance and Management

Investment in intellectual property

Investment in intellectual property
Investment in intellectual property

Sustainability

Fuyo Lease Group manages our business portfolio based on a zone management approach, and in the "incubationzone", which is set as one of the portfolios, we are promoting investments in new ventures and capital and businessalliances, as well as expanding our business domain through collaboration with ventures in which we have alreadyinvested in order to foster new businesses through investments in R&D-oriented ventures.
In addition, as a measure to contribute to academia and research, as well as to culture and the arts, we invest in funds
that support the commercialization of university research results, and in funds that support students who aspire to
become artists.
Community Engagement

Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

122

HOME

Sustainability

Each Group Company's Environmental and Social initiatives

Each Group Company's Environmental and Social initiatives
Fuyo Auto Lease

Sharp FinanceAccretive

INVOICE

eXtreakNOC Outsourcing & Consulting

YAMATO LEASEWorkVision

Social Report

Human Centrix

FUJITA

Governance andManagement

Aqua Art

FGL Techno-Solutions

Each Group Company's
Environmental and Social
initiatives

FGL Circular Network,
FGL LeaseUp Business Service

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental Report

Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

123

Sustainability

HOME

Each Group Company's Environmental and Social initiatives

Fuyo Auto Lease

Fuyo Auto Lease
Outline of Fuyo Auto Lease

Sustainability

ProfileFuyo Lease Group's CSV

Fuyo Auto Lease reduces complicated operations related to customers' cars and supports a total rationalization ofmanagement.

Solving Social Issues
through BusinessCompany profile

Environmental Report

Established

January 1987

Capital

240 million yen

Shareholders

Fuyo General Lease (100%)

Business Activities

Handling of automobile leasing / installment / sales, car maintenance / repair /service, refueling cards / ETC cards

Fuyo Auto Lease website

Reducing the environmental impacts of auto leasing business
Based on Fuyo Lease Group's Environmental Policy, Fuyo Auto Lease strives to reduce environmental impacts companywide. Above all, in the core auto leasing business, we are working on environmental activities at all stages from the startof a lease lasting until the end of a lease.

Environmental activities in the auto leasing businessSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download124

Initiatives to contribute to customer safety
Drive recorder suggestions
At Fuyo Auto Lease, we assist customers to prevent accidents by suggesting that they install a drive recorder.
A drive recorder is an in-vehicle camera device that records items like the time, the location, forward image, acceleration,
turn signal operation and brake operation for approximately twelve seconds before and after a large impact.

Characteristics of drive recorder
The driver can confirm objectively review driving behavior that is likely to cause a near-miss or a traffic accident.
Drivers can understand their own driving behavior, improve their awareness of safe driving by reflecting on theiractions, and prevent traffic accidents.

Suggestions for telematics
Fuyo Auto Lease supports customer's operation management and accident prevention through telematics proposals.
"Telematics" is a blend word that combines "Telecommunication" and "Informatics." It refers to a service or a systemthat provides information by combining a communication system with a moving vehicle, such as an automobile. By
installing a dedicated in-vehicle unit, we can acquire various information and understand / analyze a driving situation.

Holding safe driving seminars
Fuyo Auto Lease holds safe driving seminars so that customers can use vehicles safely and securely. In fiscal 2022, we
held 23 seminars for major companies, medium-sized companies, and small to mid-sized companies, which wereattended by a total of 1,010 participants. At the seminars, we provided the attendees with lectures, paper tests, video
training programs, and driving aptitude tests using equipment.

125

Donation activities to assist children orphaned from traffic accidents
Fuyo Auto Lease aims to contribute to society generally, even in areas outside the scope of business.
In addition, in fiscal 2022, continuing from the previous year, we donated funds to support children orphaned by traffic
accidents.

Results of support provided from FY 2014 to 2022
Details of Activities

Donation

FY 2014

Donated funds from our employees / company to the ScholarshipFoundation for Traffic Accident Orphans

210,000 yen

FY 2015

Donated funds from our employees / company to the ScholarshipFoundation for Traffic Accident Orphans

210,000 yen

FY 2016

Donated funds from our employees / company to the ScholarshipFoundation for Traffic Accident Orphans

210,000 yen

FY 2017

Donated funds from the company to the Scholarship Foundation
for Traffic Accident Orphans

200,000 yen

FY 2018

Donated funds from the company to the Scholarship Foundation
for Traffic Accident Orphans

200,000 yen

FY 2019

Donated funds from the company to the Scholarship Foundation
for Traffic Accident Orphans

200,000 yen

FY 2020

Donated funds from the company to the Scholarship Foundation
for Traffic Accident Orphans

200,000 yen

FY 2021

Donated funds from the company to the Scholarship Foundation
for Traffic Accident Orphans

200,000 yen

FY 2022

Donated funds from the company to the Scholarship Foundation
for Traffic Accident Orphans

200,000 yen

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

126

Sustainability

HOME

Each Group Company's Environmental and Social initiatives

Sharp FinanceSharp Finance
Outline of Sharp Finance

Sustainability

ProfileFuyo Lease Group's CSV

Sharp Finance is a leasing company that has its strengths in the retail market for small leases, such as developing vendor
leasing in collaboration with dealers for small- and medium-size enterprises.

Solving Social Issues
through BusinessCompany profile

Environmental Report

EstablishedMay 1982

Capital3 billion yen

Social Report
Governance andManagement

Shareholders

Fuyo General Lease (65%)
Sharp Corporation (35%)

Each Group Company's
Environmental and Social
initiatives

Business Activities

Various leasing businesses, credit sales business, real estate rental business,and insurance agency business

Fund Procurement
through Sustainable
Finance"Sharp Finance" website
Fuyo General Lease and Sharp Finance have combined their expertise to meet diversified and sophisticated customer
needs.

Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data

Development of community-based healthcare through support toestablish clinics and initiatives to improve the health and welfare ofresidents

Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:

As the average age of doctors at clinics supporting community-based healthcare continues to increase*, “cycles” inwhich young doctors offer additional support will be essential to maintain healthcare systems. One of those cycles willbe the establishment of new clinics, which is actively supported by Sharp Finance. In this way, we aim to make social
contributions toward maintaining community-based healthcare systems.
Through leasing initiatives implemented in the course of our main business, which is medical equipment sales tovendors, we have amassed a business network of many customers that includes a large number of medical institutions,medical equipment manufacturers, pharmaceutical wholesalers, and accounting firms. In addition to being a financecompany providing financial support for business launches, we also provide one-stop support for starting a business incooperation with our business partners by fully utilizing our network in each specialized field, such as accounting firmsthat handle various notifications necessary for starting a business.
We supported the of opening of a clinic for the Toyocho Hagukumi Family Clinic, a pediatric clinic in Koto-ku, Tokyo
which opened in October 2021, as a result of an inquiry to our company’s specialized website for business launch
support. The area around Toyocho Station is being redeveloped, with construction of condominiums underway and thenumber of new families on the rise. We feel that we have contributed to community-based healthcare in thisneighborhood by helping hospital directors actualize their desire to build clinics that support the growth of children andthe health of their families, while fulfilling the demand for pediatric healthcare that has been continually increasing inthis region.

"Integrated Report" PDF
download127* The percentage of doctors over the age of 60 assigned to clinics was 51.5% in 2020; from the Statistics of Physicians, Dentists andPharmacists 2020 published by the Ministry of Health, Labour and Welfare

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

128

Sustainability

HOME

Each Group Company's Environmental and Social initiatives

Accretive

Accretive
Overview of Accretive

Sustainability

ProfileFuyo Lease Group's CSV

Accretive purchases receivable accounts that arise from the delivery of products and services, provides financial services
that support cash flow of supplying companies by providing cash early, and in addition to supporting business efficiency
also offers business process outsourcing (BPO) services such as accounting administration to clients including retailbusiness operators.

Solving Social Issues
through BusinessCompany profile

Social Report

EstablishedMay 1999

Capital

100 million yen

Shareholders

Fuyo General Lease (73.68%)
Pan Pacific International Holdings Corporation (26.32%)

Business Activities

Financial services centering on the purchases of accounts receivables, BPO
services such as accounting administration"Accretive" website

Cambodia support activities
Since 2017, in collaboration with its Cambodian subsidiary Accretive Service (Cambodia) Co., Ltd., Accretive has
supported to elementary schools in Takeo province, Cambodia.
Local staff and employees participating from Japan visited the local elementary schools and prepared a learning
environment by donating school supplies and reinforcing desks, as well as conducting exchange meetings to provide
guidance on hygiene and to donate goods such as clothing, stationery, and daily necessities collected from employees at
each base in Japan.
The exchanges with the children were helpful in understanding the current local situation and its issues, namely, that theeducational environment in Cambodia's rural areas is lacking due to factors such as equipment and funding shortages.
We will continue to participate in activities that improve this environment little by little in the future.

Environmental Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download129

We handed stationery directly to about 120 elementary school students

Teaching hand-washing with soap

Playing together using a donated long rope

Commemorative photographApproach to Positive Off Motion
Accretive agrees with the aims of the Positive Off -movement advocated by the Japan Tourism Agency to realize moremeaningful leisure activities of employees and their families.
This movement sees "holiday = off" as "forward-looking = positive." Each employee can proactively declare their plans totake paid leave, and as a result of going out and traveling during leisure time becomes refreshed both mentally andphysically, which enhances self-improvement, and contributes to economic revitalization.
Accretive is introducing a system that allows annual paid leave to be acquired in hourly units. The Company is engaging
in awareness-raising activities with posters to promote the new system and is endeavoring to improve working
environments and create an atmosphere that makes it easier to take a vacation.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

130

Sustainability

HOME

Each Group Company's Environmental and Social initiatives

INVOICEINVOICE
Outline of INVOICE

Sustainability

ProfileFuyo Lease Group's CSVINVOICE provides integrated billing services for business clients that help reduce costs and improve productivity, andInternet services for residential buildings for individual customers.

Solving Social Issues
through BusinessCompany profile

Environmental Report

Established

December 1992

Capital

100 million yen

Shareholders

Fuyo General Lease (100%)

Business Activities

Integrated billing services for business clients and Internet services forresidential buildings for individual customers“INVOICE” website

Contributing to Client Companies’ Improved Productivity through BPO
Services
INVOICE provides integrated billing services, which are BPO services where INVOICE compiles the individual
telecommunications and public utility bills that are delivered to a customer's individual offices, pays those bills on behalfof the customer, and then bills the customer for those charges all at once.
The corporate environment is changing significantly as labor shortages have become a social issue and work-stylereform is required to reduce long working hours. Companies face an urgent challenge to increase the productivity of
employees by streamlining cumbersome bill-processing tasks and increasing the time used to focus on high value-added
core business activities.
Against this backdrop, the utilization of INVOICE’s integrated billing services allows customers to unify the different
payment procedures used by each telecommunications carrier and utility provider, improving operational efficiency.
Using the client’s mobile phone and Internet-related bills to understand the details of usage and then proposing themost suitable communication plan also helps client companies reduce their communication costs.

Social Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download131

There have been drastic changes in the business environment surrounding payment and settlement services as a resultof technological advances. With INVOICE, we will take advantage of these changes to increase character recognition
rates using AI and improve the overall efficiency of business processes through the use of robotic process automation(RPA), thus contributing to the reduction of costs and improved productivity for more customers.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

132

Sustainability

HOME

Each Group Company's Environmental and Social initiatives

eXtreakeXtreak
Overview of eXtreak

Sustainability

ProfileFuyo Lease Group's CSV

eXtreak provides IT facility services to companies including design, construction, and building of IT infrastructure andfacility-related maintenance.

Solving Social Issues
through BusinessCompany profile

Environmental Report

Established

August 2002

Capital

100 million yen

Shareholders

INVOICE (100%)

Business Activities

IT Facility Service BusinessSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance“eXtreak” website

Support for Establishing Telecommunications Environments andDigitalization of Small- to Medium-Sized Companies
eXtreak has extensive knowledge and advanced technical capabilities regarding the establishment of facility
environments in terms of IT infrastructure design, implementation and construction, including LAN installation. It has
provided IT facility services for a large number of corporations. Meanwhile, INVOICE is helping to respond to a growing
personnel shortage and realize workstyle reforms through the provision of BPO services, such as a bundled invoiceservice for telecommunication and utilities charges (organization, visualization, and cost reduction). By combining
eXtreak’s expertise in telecommunications environments and INVOICE’s knowledge of telecommunication lines, we areable to provide telecommunication environment optimization solutions and comprehensive services from line
arrangements to facility environment preparation. In addition to management divisions that utilize BPO*1 services, wewill also offer IT systems divisions a wide range of services, accelerating our support for telecommunications
environment establishment and digitalization of small- to medium-sized companies.

Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download*1 Business Process Outsourcing: The practice of outsourcing part or all of a company’s business processes to dedicated service
providers in order to streamline and optimize a company’s business processes.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

133

Sustainability

HOME

Each Group Company's Environmental and Social initiatives

NOC Outsourcing & Consulting

NOC Outsourcing & Consulting
Outline of NOC Outsourcing & Consulting

Sustainability

ProfileFuyo Lease Group's CSVNOC Outsourcing & Consulting provides "total outsourcing" targeting administrative departments such as generalaffairs, accounting, human resources, and sales administration.

Solving Social Issues
through BusinessCompany profile

Environmental Report

Established

November 1988

Capital

100 million yen

Shareholders

Fuyo General Lease (100%)

Business Activities

Comprehensive outsourcing, human resources services, and shared services

Social Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives“NOC Outsourcing & Consulting” website

Fund Procurement
through Sustainable
Finance

Providing BPO services that meet the needs of the times

Participation in Initiatives
and Third-Party
Evaluation

The strengths of NOC Outsourcing & Consulting lie in its outsourcing services (BPO services) targeting administrative
departments such as general affairs, accounting, human resources, and sales administration. In addition to its robust
consignment and operational functions, it is contributing to operational efficiency and cost reductions at approximately
1,000 companies. It is doing this by providing "total outsourcing" which combines the visualization and standardizationof operations through the use of its own consulting functions, automation and reduction of employee numbers throughthe use of system development functions such as RPA and AI-OCR, and cloud systems.

Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download134

Demand for teleworking environment preparation and BPO services is growing. This has been driven by the recent
efforts to promote workstyle reforms, and also as part of BCP countermeasures in response to prolonged business
continuity risks in companies, as they were forced by COVID-19 pandemic to examine which operations they could
continue with the minimum number of staff.
Going forward, NOC Outsourcing & Consulting will continue to be more sensitive to changes in the business environment
as well as accompanying changes in needs, and will proactively respond to new needs of the times.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

135

HOME

Sustainability

Each Group Company's Environmental and Social initiatives

YAMATO LEASEYAMATO LEASE
Outline of YAMATO LEASE

Sustainability

ProfileFuyo Lease Group's CSVYAMATO LEASE provides support services for the management issues of transportation companies, such as succession
problems and driver shortages in addition to providing support for the leasing, procurement, and sales of new and used
trucks.

Solving Social Issues
through BusinessCompany profile

Social Report

Environmental Report

EstablishedMarch 1977

Governance andManagement

Capital30 million yen

Each Group Company's
Environmental and Social
initiatives

Shareholders
Business Activities"YAMATO LEASE" website

Fuyo General Lease (60%)
YAMATO HOLDINGS CO., LTD. (40%)
Truck leasing and installment, used car sales

Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download136

Supporting vehicle procurement to resolve management issues faced bytransport companies
In the logistics industry, many social issues have become apparent, including an increase in the volume of cargo being
handled due to the expansion of the e-commerce market, shortages and aging of truck drivers, and work-style reform in
response to the reduction of long working hours. In addition, the automobile industry is said to be entering a once-in-acentury period of great change due to CASE*1 technological innovations and the progress of MaaS*2 that connects
vehicles and other means of transportation with IT. Environmental regulations, such as automobile exhaust regulations,are also being strengthened. Against the backdrop of such changes in the business environment, transportationcompanies are also required to procure vehicles in an optimal manner to adapt to these changes.
By using truck leasing from YAMATO LEASE, transportation company customers can introduce vehicles that are suited to
the latest environment without the need for large sums of money. In addition, as truck distribution support, we offer full
support for the replacement of trucks through proposals for purchase of existing and used trucks to meet our customers'
and social needs. When selecting a used truck, we provide an environment where customers can search for a vehicle thatmeets their needs in a catalog-like manner through our "Tora-Machi" used-truck matching application.

Our strengths lie in our customer network as well as proposal-based sales, and going forward, we will continue toleverage these strengths in support of vehicle procurement that resolves the issues faced by transportation companies.
*1 CASE stands for Connected, Autonomous/Automated, Shared, and Electric. It is expected that technological innovation in these newareas will change the ways in which mobility and our society will exist.
*2 MaaS refers to Mobility as a Service, which indicates services that connect vehicles, public transportation, and other means oftransportation through IT.

137

The first leasing company to be certified as an organization that
promotes the Comfortable Workplace Certification System
YAMATO LEASE has been certified by the Ministry of Land, Infrastructure, Transport andTourism and the Nippon Kaiji Kyokai as an organization that promotes the Driver's Workplace
Environment Quality Certification System (commonly known as the Comfortable Workplace
Certification System).
The Comfortable Workplace Certification System is a system to certify companies that are
engaged in work-style reform, such as the revision of long working hours, in order to improve
working conditions and the working environments of drivers as well as to secure and train
drivers who are needed.
In order to promote the Comfortable Workplace Certification System, YAMATO LEASE holds
briefing sessions, provides advice as well as guidance, and supports trucking companies in
obtaining certification. In fiscal 2022, YAMATO LEASE supported 538 companies in obtaining
certification. We aim to maintain safety management of the transportation industry and solve
social issues such as the shortage of human resources.
* The Comfortable Workplace Certification System is a system in which a third-party organization evaluates and certifies the working
environments of automobile transportation companies and provides this information mainly to job seekers. To encourage companies
that have acquired certification to move to a higher level, there are three levels of certification depending on the number of certification
items that a company has achieved. The three levels of certification are one star, two stars, and three stars.

Business succession support services specifically for the transportationindustry
YAMATO LEASE provides business succession support services specifically for the transportation industry. The businesssuccession support services provided by YAMATO LEASE leverage the experience and know-how that we have acquired
from leasing trucks to transportation companies to match companies that are struggling to continue business due toaging managers and a lack of successors with companies that want to expand their business.
Through our business succession support services, we aim to solve the challenges facing the industry, such as the
problems of finding successors at transportation companies, retaining employees, and resolving driver shortages.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

138

Sustainability

HOME

Each Group Company's Environmental and Social initiatives

WorkVision

WorkVision
Outline of WorkVision

Sustainability

ProfileFuyo Lease Group's CSVWorkVision provides a full range of IT solutions centered on cloud services and package services that cover planning,development and sales to operation, maintenance and other services.

Solving Social Issues
through BusinessCompany profile

Environmental Report

Established

October 2012

Capital

100 million yen

Social Report
Governance andManagement

Shareholders

Fuyo General Lease (100%)

Business Activities

Development, sales, operation, maintenance, and other services related to IT
solutions centered on cloud services and package services“WorkVision” website

Providing cloud solutions to help customers transform their operations
Corporate management is being called on to increase operational productivity by overhauling non-core operations andundertaking the DX of tasks against a backdrop of enterprises encountering the need to address intensifying labor
shortages and implement work-style reforms. WorkVision is utilizing its ICT technologies to contribute to the realizationof a sustainable society by advancing the digital transformation of both companies and society.
WorkVision is a DX-certified operator* that develops new IT
solutions for both customers and society based on its in-house
experience developing DX initiatives. It is advancing innovation
through the development of a wide range of solutions, from highprofile public systems to systems for supporting operational
efficiency efforts at private enterprises.

Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download* A DX-certified operator is an enterprise that has received certification under the DX Certification system established based on the Act on
Partial Revision of the Act on Facilitation of Information Processing enacted in May 2020. Only enterprises that are recognized as “DXready,” meaning that they are ready to transform their business using digital technology based on the Digital Governance Codeformulated by the Japanese government, may receive certification.

WorkVision is advancing sustainability activities, primarily through its SDGs Promotion Working team, an organizationthat answers directly to the company’s president. Please see the link below for details.
SDGs Initiative (WorkVision official website)
Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.
139

Sustainability

HOME

Each Group Company's Environmental and Social initiatives

Human Centrix

Human Centrix
Overview of Human Centrix

Sustainability

ProfileFuyo Lease Group's CSV

Human Centrix provides services from planning and production to distribution related to video services for business use,
supporting companies to improve communication efficiency, marketing and DX promotion.

Solving Social Issues
through BusinessCompany profile

Environmental Report

Established

June 2004

Capital25 million yen

Social Report
Governance andManagement

Shareholders

Fuyo General Lease (100%)

Business Activities

Planning, proposal, filming, editing, and distribution of videos for use incorporate video production business“Human Centrix” website

Videos for business use can convey more information than text or still
images, enabling more efficient communication between companies.
There is demand for them in a number of business scenarios, mainly within major corporations, where businessprocesses are becoming increasingly complex. Moreover, COVID-19 has given rise to a diversification of communication
methods, including the use of online tools, and workstyles are on the cusp of a major revolution. In this environment,
demand for the use of video to improve business process efficiency is increasing.
Human Centrix provides comprehensive services from planning and production to distribution related to video services
for business use, such as products and services, company introductions, IR and general meetings of shareholders, andvarious kinds of manuals. Its services help companies to improve communication efficiency, marketing and DX
promotion. The company provides optimal, finely balanced video services developed through working on many projects
over the years. It is committed to providing even greater support for resolving issues in customers’ increasingly highlevel and complex business processes.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download© Fuyo General Lease Co., Ltd.

140

Sustainability

HOME

Each Group Company's Environmental and Social initiatives

FUJITA

FUJITA
Outline of FUJITA

Sustainability

ProfileFuyo Lease Group's CSV

FUJITA Co., Ltd. provides full support for the purchase, demolition and removal of medical equipment, in addition to thedisposal of medical equipment, furniture and fixtures when hospitals and clinics open, relocate, and/or close.

Solving Social Issues
through BusinessCompany profile

Environmental Report

Established

July 2006

Capital70.35 million yen

Shareholders

Fuyo General Lease (51%)
Ken Fujita (38%)
Shuji Furuta (11%)

Business Activities

Buying and selling second-hand medical equipment (including installation
and removal)
Demolition and removal of medical equipment, furniture and fixtures whenhospitals and clinics closed
Disposal of leftover office items“FUJITA” website

Initiative to resource circulation through promotion of the 3Rs
FUJITA is truly committed to the 3Rs (reuse, recycle, and reduce) to reduce the amount of waste when the company
engages in the purchasing and selling of second-hand medical equipment and disposing of medical equipment from
hospitals or clinics that have been closed.
In particular, FUJITA focuses its efforts on the reuse element of the 3Rs. The company reuses not only medical
equipment*1, but also extends its reuse activities including equipment, furniture, fixtures, and other items*2 that remain
in hospitals. The company strives for resource circulation in order to maximize the reuse of resources and cut down on
waste. Furthermore, the company provides support to hospitals and clinics in the disposal of their medical equipment
when they close. These activities allow the company to efficiently sort out and separate waste and recyclable metals or
plastics. The company's activities to reduce the waste amount results in lower waste disposal costs incurred by thecustomers.

Social Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download*1 Heavy medical equipment including MRI scanners, CT scanners, and angiography machines and portable equipment including
ultrasonic diagnostic equipment and endoscope systems.
*2 Hospital beds, office furniture and equipment, electrical appliances, books and magazines, etc.

141

FUJITA's 3Rs

Cost reduction through reusing and recycling① Reuse

FUJITA reuses medical equipment, office equipment and furniture, and electronic equipment.

② Recycle

FUJITA sorts out and separates waste. Furthermore, the company recycles it as resources including metals andplastics.

③ Reduce

As a result of reducing the waste amount, FUJITA can cut disposal costs.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

142

Sustainability

HOME

Each Group Company's Environmental and Social initiatives

Aqua Art

Aqua Art
Outline of Aqua Art

Sustainability

ProfileFuyo Lease Group's CSV

Aqua Art was established in March 1994 as a wholly-owned subsidiary of Fuyo Lease. It operates a rental business fortropical fish tanks, which replicate the natural environment.

Solving Social Issues
through BusinessCompany profile

Environmental Report

EstablishedMarch 1994

Capital50 million yen

Shareholders

Fuyo General Lease (100%)

Business Activities

Manufacture, sale, rental, and maintenance of ornamental aquarium

Social Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives

Aqua Art website

Fund Procurement
through Sustainable
Finance

AQUA ART interior aquarium

Participation in Initiatives
and Third-Party
Evaluation

AQUA ART is a product that reproduces the structure of the natural world in an aquarium using real creatures.
Specialist staff create each aquarium using detailed work and skills in a production process of around 50 steps. These
include cleaning the sand laid in the bottom of the aquarium, circulating water to disperse bacteria through the tank,individually planting each aquatic plant and positioning each rock and piece of driftwood to create the layout inside theaquarium to incorporate and adjust each of the materials. AQUA ART is unique, individually crafted rental aquarium.

Environment / Social Data

(1) Drawing people together to foster communication
AQUA ART provides spaces for people to share meaningful connections through conversation. It provides places forpeople to congregate naturally, and a pocket of relaxation in places where people visit for the first time, releasing
tension and starting conversations.

Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download(2) Raising awareness about preserving the natural environment and educating thenext generation
AQUA ART recreates environments for living creatures inside an aquarium, offering a chance to learn about how thenatural world works. We provide an opportunity to think about nature in terms of familiar living creatures, the foodchain, and biodiversity.

143

Cycle system of AQUA ART

Contributing to the environment through products
Our AQUA ART rental aquariums are tended by specialist staff, who recreate
natural eco systems inside them. The connection between aquatic plants andtropical fish promotes purification of the water, helping to maintain water
quality. This helps to minimize the amount of water used for replacement,
and maintains the condition of the fish and plants, helping to protect water
resources and living creatures.
Tropical fish and aquatic plants are procured through nurseries to maintainand protect the natural environment. At the same time, the Company is also
working to breed its own. Aqua Art launched the SDGs-Related Project andestablished a system to provide a certain quantity of fish and aquatic plants
through the in-house breeding of tropical fish such as platies, guppies,
corydoras, and African butterfly cichlids, as well as reusing and cultivating
aquatic plants brought back from maintenance work. We also strive toactively reuse and recycle old aquariums and apparatus.

In-house bred African butterfly cichlid

Contributing to society through products
Aqua Art is also collaborating with Fuyo General Lease in the "Aqua de Smile" social contribution activity using AQUA ART
aquariums.
As part of this activity, we provide AQUA ART free of charge to nine maternal and child living support facilities andfacilities supporting employment for people with disabilities in Tokyo and neighboring prefectures. Moreover, as part ofenvironmental education activities undertaken by our staff, during the summer holidays they hold visiting lessons for thechildren at the facilities. The lessons are filled with full of happy faces and joyful cheering, using a quiz format to teachchildren about the habits and characteristics of tropical fish in a fun way, and helping them to learn about ecosystems.
We also hold the AQUA ART Design Contest. Students of the Tokyo Metropolitan Kogei High School, Tokyo Designer
Gakuin College, and TCA Tokyo College of Eco & Animals, which have relationships with Fuyo General Lease and AQUA
ART, compete to create special design and decoration for an aquarium interior, with the best entries displayed at theentrance and lobby of the Tokyo Dome Hotel. During the exhibition period, the hotel visitors vote for their favorite entry,
enabling a large number of people to enjoy the competition.

Children actively participating during a visiting lecture (fiscal 2022)

Students in the production group from Tokyo Metropolitan Kogei High Schoolat a screening for the AQUA ART Design Contest (Summer 2022)
144

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

145

Sustainability

HOME

Each Group Company's Environmental and Social initiatives

FGL Techno-Solutions

FGL Techno-Solutions
Outline of FGL Techno-Solutions

Sustainability

ProfileFuyo Lease Group's CSV

FGL Techno-Solutions conducts equipment sales, outsourcing helpdesk services, and kitting, construction and othertechnical services in ICT-related fields.

Solving Social Issues
through BusinessCompany profile

Environmental Report

EstablishedMay 1984

Capital50 million yen

Social Report
Governance andManagement

Shareholders

Fuyo General Lease (100%)

Business Activities

ICT equipment and software sales business, ICT outsourcing business,
staffing and referral business for ICT business areas

FGL Techno-Solutions website

HR development to help solve corporate ICT issues
Many companies face management issues connected with a shortage of IT personnel and directly face not only thedifficulty of hiring IT professionals but also a problematic lack of resources for training new people internally fromscratch. At the same time, with ICT equipment becoming more diverse and complex, there are increasing cases ofcompanies having to perform work with a high level of technical difficulty or intricate work in large amounts over a shortperiod of time, and the barriers to solutions in the ICT field are getting higher by the day.
FGL Techno-Solutions provides outsourcing and staffing services in ICT-related fields. In outsourcing services, thecompany flexibly meets the changing needs of customers from the perspectives of where services are rendered, whether
onsite or inhouse, and when they are rendered, from short-term/spot to long-term. In staffing services, personnel
capable of being put to use immediately are provided in a timely manner.
It is IT professionals who support the provision of such services and the transformation of company businesses. FGL
Techno-Solutions focuses on training IT personnel, primarily young programmers and field engineers. By supporting skill
enhancement based on career plans while utilizing internal and external training programs and other resources, thecompany develops highly specialized engineers and technical personnel and others who are experts in ICT operations.
These professionals are helping to solve the issues of companies with various concerns in ICT fields in such areas as
general corporate administration and information systems for clients that include system integrators, major
communications carriers, and mobile phone sales companies.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download© Fuyo General Lease Co., Ltd.
146

Sustainability

HOME

Each Group Company's Environmental and Social initiatives

FGL Circular Network & FGL LeaseUp Business Service

FGL Circular Network & FGL LeaseUp Business Service
Collaborating to save resources and reduce waste
FGL Circular Network and FGL LeaseUp Business Service are involved in processing the leased properties of Fuyo Lease
whose lease agreements are up. FGL Circular Network reuses and recycles properties at the end of their leases when they
still have value and otherwise recycles and appropriately processes them as waste products. FGL LeaseUp Business
Service conducts administration for the continued use of properties for which re-leasing is possible. In this way, the twocompanies work collectively in “contributing to the development of a circular society,” a goal stated in theEnvironmental Policy of the Fuyo Lease Group.

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation

Outline of FGL Circular Network
ProfileFGL Circular Network purchases and sells properties of Fuyo Lease whose leases are up and used properties owned bycustomers, thereby helping to establish resource circularity.

Company profile
Established

April 1996

Capital10 million yen

Shareholders

Fuyo General Lease (100%)

Business Activities

Buying and selling of machinery and equipment, installment sales and import /export, and buying and selling of used goods

Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

FGL Circular Network website >147

Outline of FGL LeaseUp Business Service
ProfileFGL LeaseUp Business Service conducts administrative processing on a contract basis for the leased properties of Fuyo
Lease when their leases are up.

Company profile
Established

April 2022

Shareholders

Fuyo General Lease (100%)

Business Activities

Processing of properties with expired leases

Contributing to a circular society by promoting the reuse of used PCs
The Hachioji Technical Center of FGL Circular Network takes in several thousand computers each month for reuse,computers previously used in the PC Rental, PC Eco & Value Lease, and PC-LCM (lifecycle management) services provided
by Fuyo Lease.
Computers transferred to another party for reuse are first subject to appropriate processing that includes destroying alldata and checking for proper functioning. The company has established a system for reselling used computers that had
been leased or rented, and by promoting reuse, it contributes to the development of a circular society.
For devices that cannot be reused, efforts are made to limit the occurrence of waste and reduce it through a recycling
system established at the Seki Factory of Matsuda Sangyo Co., Ltd.

The Seki Factory,Matsuda Sangyo Co.,Ltd

Hachioji Technical Center website >Appropriate disposal of waste
Property for which a lease has expired and cannot be reused are discarded. Going above and beyond simply complying
with the Waste Disposal and Public Cleaning Law (Waste Management Act), as a waste generating business operator, we
keep close track of every piece of waste we dispose of through an electronic manifest system. We conduct on-site
inspections of waste disposal contractors according to an annual schedule.

148

Management of outsourcers

Management of reports

Examples of intermediate processing plants
Waste is transported to an intermediate processing plant and is reduced in quantity and volume by processes such as
crushing. As a result, a lot of waste is now being recycled at the intermediate processing plant.

KANAME KOGYO Co., Ltd.
Shikahama Recycling Center of KANAME KOGYO Co., Ltd. is an intermediate
processing factory established in September 2000. It is responsible for crushing andrecycling mixed waste generated in the Tokyo metropolitan area.
In 2002, it obtained ISO14001 certification, and in 2010 it acquired Industrial Waste
Expert certification under Tokyo's excellent industrial waste processing company
certification system. In 2011, it acquired certification as an Excellent Industrial
Waste Processing Company.
In December 2017, it was listed on the Second Section of the Tokyo Stock Exchange.
(Transferred to the Standard Market with the reorganization of market
classifications in April 2022)
The company publishes a waste information magazine called the KANAME
Environmental News for waste-generating business operators and carries out
activities such as free business consultations and workshops. The company isworking to expand the appropriate disposal of waste.

Shikahama Recycling Center,
KANAME KOGYO Co., Ltd.

Re-Tem Corporation
Tokyo Plant of Re-Tem Corporation, which was completed and started operationsin 2005, is the newest plant, and is part of the Tokyo Super Eco Town being built in
the Tokyo Bay area as part of Japan's urban renewal project. It recycles 100% ofvarious wastes, mainly metal waste, discharged in the Tokyo metropolitan area.
Tokyo Plant, Re-Tem Corporation
149

Example of final disposal site
The final disposal of waste is shifting to recycling processes due to the lack of final disposal sites for landfilling.

ECO KEIKAKU CO., LTD.
ECO KEIKAKU CO., LTD.'s Yorii Eco-Space and Arashiyama Eco-Space are the only
private facilities certified by the Ministry of the Environment under the Act on
Promotion of Development of Specified Facilities for the Disposal of Industrial
Waste as comprehensive recycling facilities contributing to improved recycling
rates.
Both facilities, which are capable of accepting waste items totaling over 20
different item types, are actively involved in developing new technologies such as
material recycling, in order to meet various needs. The plants use mainly thermal
recycling with a total processing capacity of 155.8 t a day.
Fuyo Lease periodically visits the company's disposal facility and disposal site toconfirm the on-site conditions, to exchange information and to build relationshipsthat can help both companies to improve environmental awareness.

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Yorii Eco Space,ECO KEIKAKU CO.,LTD

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

150

HOME

Sustainability

Fund Procurement through Sustainable FinanceFund Procurement through Sustainable Finance
The Fuyo Lease Group is promoting business strategies based on the CSV approach, and proactively advancing
sustainable financing initiatives in its fund procurement.
We will continue to diversify our methods of fund procurement and further promote our response to the problem ofclimate change and to social issues, aiming to contribute to the realization of a sustainable society.

Disclosure of Sustainable Finance Framework
We have formulated a sustainable finance framework to strengthen our fund procurement through sustainable finance.
Fuyo General Lease Co., Ltd. Sustainable Finance Framework (in Japanese) （4,800KB）

Issuance of Green Bonds
Green bonds are bonds whose proceeds may only be used for green projects (projects that are expected to improve theenvironment), such as renewable energy projects, construction and upgrade of energy-saving buildings, and theprevention and management of environmental pollutants.
Fuyo General Lease Co., Ltd. No.17 unsecured corporate bonds (limited to corporate bonds with a special agreementon the same priority) (Green Bond)
Fuyo General Lease Co., Ltd. No.20 unsecured corporate bonds (limited to corporate bonds with a special agreementon the same priority) (Green Bond)

Issuance of Sustainability-Linked Bonds
Sustainability-linked bonds are bonds whose conditions vary depending on the achievement of set sustainability
performance targets (SPTs), which are based on sustainability targets that have been set out in the issuers
comprehensive social responsibility strategy.
Fuyo General Lease Co., Ltd. No.27 unsecured corporate bonds (limited to corporate bonds with a special agreementon the same priority) (Sustainability-linked Bond)

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

Issuance of Sustainability Bonds
Sustainability bonds are bonds whose proceeds may only be used for projects that contribute to environmental andsocial sustainability.
Fuyo General Lease Co., Ltd. No.31 unsecured corporate bonds (limited to corporate bonds with a special agreementon the same priority) (Sustainability Bond) (Fuyo CSV Bond)

151

Disclosure of Internal Reviews Related to Sustainability-Linked Loans
with Engagement Dialogue
Sustainability-linked loans with engagement dialogue are a method of financing in which sustainability performancetargets (SPTs) are set through dialogue with the issuer to promote higher-level sustainability management, with the loan
conditions varying depending on the achievement of the SPTs.
As an internal review of the stated loans, we disclose the results of our self-assessments as follows.
Self-Assessment Results of Sustainability-Linked Loans with Engagement Dialogue (in Japanese) （1,587KB）

Positive Impact Finance (Loan) Agreements
Positive impact finance is a method of financing that comprehensively analyzes and evaluates the environmental, social,and economic impacts of corporate activities, and contributes to the achievement of the SDGs by expanding positive
impacts. Third-party opinions regarding the stated loans are disclosed as follows.
Third-Party Opinion on Positive Impact Finance with Shizuoka Bank (in Japanese) （1,983KB）
Third-Party Opinion on Positive Impact Finance with Mizuho Bank (in Japanese) （2,400KB）
Third-Party Opinion on Positive Impact Finance with MUFG Bank (in Japanese) （1,038KB）

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

152

HOME

Sustainability

Fund Procurement through Sustainable Finance

Outline of Sustainability-Linked Bond

Outline of Sustainability-Linked Bond
Fuyo General Lease Co., Ltd. No.27 unsecured corporate bonds (limited tocorporate bonds with a special agreement on the same priority) (SustainabilityLinked Bond)

Sustainability

Issue duration

7 years

Issuance amount

10 billion yen

Solving Social Issues
through Business

Name

Issuing Conditions and Related
Sustainability Performance
Targets (SPTs)

1. Renewable energy usage rate for group electricity consumption 50% ormore (Maturity: July 2024)
2. Cumulative amount of the Fuyo 100% Renewable Electricity Declaration
Support Program, and the Fuyo Zero Carbon City Support Program 5 billion
yen or higher (Maturity: July 2024)

Coupon rate

0.380% per annum from the day following December 24, 2020 to December 24,
2024.
From the day following December 24, 2024, a coupon step-up of 0.10% will be
generated if any of the SPTs linked to the issue conditions have not been met
on July 31, 2024.

Fuyo Lease Group's CSV

Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance

Condition decision date

December 18, 2020

Issue date

December 24, 2020

Participation in Initiatives
and Third-Party
Evaluation

Redemption date

December 24, 2027

Environment / Social Data

Japan Credit Rating Agency, Ltd. (JCR): A+
Rating and Investment Information, Inc. (R&I): A

Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:

Ratings

Third-party Assessment of Eligibility
Ministry of the Environment's Model Case for Issuance"Integrated Report" PDF
download

The Fuyo Lease Group's Sustainability-Linked Bond was selected as a model case for the fiscal 2020 Sustainability Linked
Loans, etc. Issuance by the Ministry of the Environment, and on November 27th, 2020 it was announced that the Ministryof the Environment and certification bodies (Japan Credit Rating Agency, Ltd. and E&E Solutions Inc.) had verified theconformity of the framework for issuing of the Sustainability Linked Bond with the Ministry of the Environment's Green
Loan and Sustainability Linked Loan Guidelines 2020 and the International Capital Markets Association's (ICMA)
Sustainability-Linked Bond Principles.

Conformity results for the Guideline of a model case for fiscal 2020 Sustainability Linked Loan, etc.
Pre-issuance Report

Announcement of Investment in the Sustainability-Linked Bond
These are the investors who have announced that they will invest in the Sustainability-Linked Bond

153

List of investors who have announced investment (Japanese alphabetic order)(As of December 18, 2020)
IO Shinkin BankAICHI CHITA AGRICULTURAL COOPERATIVEASSOCIATION
Asset Management One Co., Ltd.
Awaji Shinkin Bank
Ishinomaki Shinkin Bank
Ibaraki Prefectural Credit Federation of Agricultural
Cooperatives
Okayama Shinkin BankTHE KANAGAWA BANK, LTD.
Kanonji Shinkin Bank
Gifu Prefectural Credit Federation of Agricultural
Cooperatives
Kuwanamie Shinkin Bank
The 77 Bank, Ltd.
Shinonome Shinkin Bank
Shibata Shinkin Bank
Suwa Shinkin Bank
Seishin Shinkin Bank
Saison Automobile and Fire Insurance Co., Ltd.
Takanabe Shinkin Bank
Tajima Shinkin Bank
Danyo Shinyo Kumiai Bank
Choshi Shinkin BankTokyo City Shinkin BankTokyo Higashi Shinkin BankThe Tono Shinkin BankThe Toa Reinsurance Company, Limited

The Toyota Shinkin Bank
Nagano Shinkin Bank
Nagano Labour Bank
Nagoya Broadcasting Network Co., Ltd.
Nishihyogo Shinkin Bank
Nishimikawa Agricultural Cooperative
Nissay Asset Management Corporation
Hagi Yamaguchi Shinkin Bank
Hamamatsu Iwata Shinkin Bank
Handa Shinkin Bank
Hanno-Shinkin Bank
Hyogo Shinkin Bank
Hiratsuka Shinkin Bank
Fukoku Mutual Life Insurance Company
BlackRock Japan Co., Ltd.
The Hekikai Shinkin Bank
Mie Prefectural Credit Federation of Agricultural
Cooperatives
Sumitomo Mitsui Trust Asset Management Co., Ltd.
The Miyazaki Taiyo Bank, Ltd.
Moka Credit Union
The Yuki Shinkin Bank
Yokohama Agricultural Cooperative
Lifenet Insurance Company
Wakayama Prefectural Credit Federation of Agricultural
Cooperatives

Reporting
SPTs and Status of Progress on Targets
SPT 1 Renewable energy usage rate for group electricity consumption 50% or more
(Maturity: July 2024)
In participating in RE100, Fuyo General Lease has set a target of 50% renewable energy use for the Group by 2030 and
100% by 2050. However, under SPT (1) for this sustainability linked bond, we have brought forward the medium-termtarget achievement timing to renewable energy use of 50% by July 2024.*1 Most of the Fuyo Lease Group's electricity
consumption takes place among tenants of its office buildings. The Company is cooperating with the building owner of
its head office building and with retail electricity providers to develop a new method for realizing effective transition to
renewable energy for tenants.*2 In fiscal 2021, the Group’s head office switched to being powered by renewable energies,
and carrying on from this, multiple business sites in Japan also switched to renewable energies in fiscal 2022. Goingforward, we will continue to work to achieve medium-term targets by switching to renewable energy at various businesssites.

Status of Progress
Renewable energy usage rate for group electricity consumption: 35.8% (as of September 30, 2022)*1 In July 2021, we brought the target forward again, so that the current target is “50% by 2024, 100% by 2030.”*2 Relevant press release:“Individual Office Building Tenants Switch to RE100 Compliant Electricity from Solar Power Station at Namie,
Fukushima Prefecture, which is Working to Recover from the Great East Japan Earthquake” (In Japanese only)
154

SPT 2 Cumulative amount of the Fuyo 100% Renewable Electricity Declaration Support
Program, and the Fuyo Zero Carbon City Support Program 5 billion yen or higher (Maturity:
July 2024)
The second SPT is a target for the cumulative handling amount of the Fuyo 100% Renewable Electricity Declaration
Support Program, and theFuyo Zero Carbon City Support Program of 5 billion yen or higher by 2024. The Fuyo Zero
Carbon City Support Program uses green bonds and other sources of funds raised by the Company to provide financial
support to customers who are introducing properties that contribute to renewable energy and energy conservation. To
date, it has been used by customers representing more than 300 organizations located in 36 prefectures throughout
Japan. As of September 30, 2022, the handling amount for both programs reached a cumulative total of 8.71 billion yen,achieving the target. Moreover, under the Medium-Term Management Plan Fuyo Shared Value 2026, which started infiscal 2022, we are aiming for a cumulative handling amount for both programs of 12 billion yen (fiscal 2022 to fiscal
2026) as one non-financial target. We will continue to advance both programs to actively support companies and local
governments that are engaged in decarbonization.

Status of Progress
Cumulative amount: 8.71 billion yen (as of March 31, 2022) <Achieved target>

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

155

HOME

Sustainability

Fund Procurement through Sustainable Finance

Outline of Sustainability Bond (“Fuyo CSV Bond”)

Outline of Sustainability Bond (“Fuyo CSV Bond”)
Fuyo General Lease Co., Ltd. No.31 unsecured corporate bonds (limited tocorporate bonds with a special agreement on the same priority) (SustainabilityBond) (known as “Fuyo CSV Bond”)

Sustainability

Issue duration

5 years

Issuance amount

10 billion yen

Solving Social Issues
through BusinessCoupon rate

0.120%

Name

Condition decision date

September 10, 2021

Issue date

September 17, 2021

Redemption date

September 17, 2026

Use of proceeds

Refinance of the following in Use of Proceeds for this Sustainability Bond

Ratings

Japan Credit Rating Agency, Ltd. (JCR): A+
Rating and Investment Information, Inc. (R&I): A

Third-party Assessment of Eligibility
JCR Sustainability Bond RatingThis sustainability bond has been externally evaluated by the Japan Credit Rating Agency (JCR) regarding its
conformance with the Green Bond Principles 2021, the Social Bond Principles 2021, and the Sustainability Bond
Guidelines 2021 of the International Capital Market Association (ICMA) and the Green Bond Guidelines 2020 of the
Ministry of the Environment.

JCR Sustainability Bond Rating （1945KB）

Fuyo Lease Group's CSV

Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

156

Use of Proceeds for this Sustainability Bond
This sustainability bond (“Fuyo CSV Bond”) is intended to refinance the following green projects and social projects
among the important initiatives related to the Group’s CSV.

(News release as of August 20, 2021: Issued Sustainability Bond (Fuyo CSV Bond))

Announcement of Investment in the Sustainability Bond
These are the investors who have announced that they will invest in the Sustainability Bond.

List of investors who have announced investment (Japanese alphabetic order)(As of September 10, 2021)
Asset Management One Co., Ltd.
Izawa Metal Co., Ltd.
The 77 Bank, Ltd.
Jodo Shu
Tokio Marine Asset Management Co., Ltd.
The Toa Reinsurance Company, Limited
Nissay Asset Management Corporation
Higashi-Nippon Bank, Ltd.
Mitsui Sumitomo Insurance Company, Limited
Sumitomo Mitsui DS Asset Management Company, Limited
Sumitomo Mitsui Trust Asset Management Co., Ltd.
Mitsubishi UFJ Trust and Banking Corporation

Reporting
Scheduled to be updated after fund allocation
Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.
157

HOME

Sustainability

Fund Procurement through Sustainable FinanceFuyo General Lease Co., Ltd. No.17 unsecured corporate bonds (limited to corporate bonds
with a special agreement on the same priority) (Green Bond)

Fuyo General Lease Co., Ltd. No.17 unsecured corporate bonds(limited to corporate bonds with a special agreement on thesame priority) (Green Bond)
Outline of the Green Bond
Name

Fuyo General Lease Co., Ltd. No.17 unsecured corporate bonds (limited tocorporate bonds with a special agreement on the same priority) (Green Bond)

Application period

October 26, 2018

Payment dateNovember 2, 2018

Issue duration

5 years

Issuance amount

10 billion yen

Coupon rate

0.210%

Use of proceeds

The capital raised through the Green Bond will be used for the redemption ofcommercial paper issued to fund existing solar power generating facilities
owned by the Company's subsidiary and for capital investment in solar power
generating facilities under construction by the Company's subsidiary.

Ratings

Japan Credit Rating Agency, Ltd. (JCR): A
Rating and Investment Information, Inc. (R&I): A-

Third-party assessment of green bond eligibility
JCR green bond rating
Fuyo General Lease acquired a third-party rating from the Japan Credit Rating Agency, Ltd. (JCR) of Green 1, the highest
score in the JCR Green Bond Rating system with regards to green bond eligibility.

JCR Green Bond Rating （605KB）

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

Ministry of the Environment Financial Support Programme for Green Bond Issuance
The acquisition of a third-party rating makes the bond eligible for a subsidy from the Japanese Ministry of theEnvironment 2018 Financial Support Programme for Green Bond Issuance.

Financial Support Programme for Green Bond Issuance (Ministry of the Environment)
List of Notification of Decisions to Grant the Subsidy (Ministry of the Environment)158

Announcement of investment in the Green Bond
These are the investors who have announced that they will invest in the Green Bond.

List of investors who have announced investment (Japanese alphabetic order)(As of October 26, 2018)
Oita Bank Co., Ltd.
Saitama Medical University
The Sugamo Shinkin Bank
Tokio Marine Asset Management Co., Ltd.
Nippon Densetsu Kogyo Co., Ltd.
Higashi-Nippon Bank, Ltd.
Sumitomo Mitsui Trust Asset Management Co., Ltd.
Mitsubishi UFJ Kokusai Asset Management Co., Ltd.
Mitsubishi UFJ Trust and Banking Corporation
The Rokinren Bank

Reporting
Allocation of capital raised
It is planned to allocate the capital raised through the Green Bond to the redemption of commercial paper issued to fundexisting solar power generating facilities owned by the Company's subsidiary and to capital investment in solar power
generating facilities under construction by the Company's subsidiary.

Effect on improving the environment
The total annual effect on reduction of CO2 emissions from the eligible projects covered by the Green Bond will be 43,495
tons and total annual electricity generated will be 98,428MWh.
(Theoretical value based on output standard as of December 20, 2019)

Annual Review
As a result of an annual review by Japan Credit Rating Agency, Ltd. (JCR), compliance with the Green Bond Principles andthe Ministry of the Environment's Green Bond Guidelines has been confirmed, and a JCR Green Bond Evaluation of"Green 1" has been obtained.
Green Bond Review （201KB）

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

159

HOME

Sustainability

Fund procurement through ESG financeFund Procurement through Sustainable FinanceFuyo General Lease Co., Ltd. No.20 unsecured
corporate bonds (limited to corporate bonds
with a special agreement on the same priority)(Green Bond)

Fuyo General Lease Co., Ltd. No.20 unsecured corporate bonds(limited to corporate bonds with a special agreement on thesame priority) (Green Bond)
Outline of the Green Bond
Name

Sustainability
Fuyo General Lease Co., Ltd. No.20 unsecured corporate bonds(limited to corporate bonds with a special agreement on the samepriority) (Green Bond)

Fuyo Lease Group's CSV
Solving Social Issues
through Business

Application period

July 12, 2019

Payment dateJuly 22, 2019Social Report

Issue duration

5 years

Issuance amount

5 billion yen

Governance andManagement

Coupon rate

0.150%

Each Group Company's
Environmental and Social
initiatives

Use of proceeds

The capital raised through the Green Bond will be used to offer
financial products that provide incentives to join the new 100%
renewable energy initiative aimed at small- and medium-sizedenterprises (the so-called “Japan RE100”).

Fund Procurement
through Sustainable
Finance

Ratings

Japan Credit Rating Agency, Ltd. (JCR): A
Rating and Investment Information, Inc. (R&I): A-

Environmental Report

Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data

Third-party assessment of green bond eligibility
Ministry of the Environment Financial Support Programme for Green Bond Issuance
The Fuyo Lease Group's Green Bond was selected as a model case for the fiscal 2019 Green Bond Issuance by the Ministryof the Environment, and June 28th, 2019 it was announced that the Ministry of the Environment and certification bodies(E&E Solutions Inc. and Japan Credit Rating Agency, Ltd.) had verified the conformity of the framework for issuing of theGreen Bond with the Green Bond Guidelines, 2017.
Conformity results for the Guideline of a model case for fiscal 2019 Green Bond Issuance. (Ministry of the Environment)

Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

Pre-issuance Report160

Announcement of investment in the Green Bond
These are the investors who have announced that they will invest in the Green Bond.

List of investors who have announced investment (Japanese alphabetic order)(As of July 12, 2019)
THE SEISHIN SHINKIN BANK.
Tokio Marine Asset Management Co., Ltd
THE BANK OF NAGOYA, LTD.
Hanno-Shinkin Bank.
Sumitomo Mitsui Trust Asset Management Co., Ltd.

Reporting
Allocation of capital raised
The proceeds from this Green Bond were used to fund the provision of the “Fuyo 100% Renewable Electricity
Declaration'' and the ''Fuyo Zero Carbon City Support Program” (both Program A) by March 2022.

Positive environmental impacts
Because it is difficult to individually calculate the reduction of carbon dioxide emissions and other positiveenvironmental impacts for the wide range of properties subject to the Green Bond, the program execution amount, thenumber ofusers, expected positive environmental impacts for each property type, as well as the number of organizations
participating in RE100 and the 100% Renewable Electricity Declaration RE Action since the start of the program aredisclosed.

“Fuyo 100% Renewable Electricity Declaration Support Program” Program A (Green Bond)handling results (total amount spent / number of users / expected positive environmental
impacts)
Property type

Total amountspent on Program
A(Oct. 2019 to Mar.
2022)

Expected positive environmental impacts

1. Renewable energy equipment (solar
power, wind power, hydropower, biomass
power including biogas, and geothermal
power for private use)

337 million yen /4 organization-

Newly created renewable energy (power
generated): Approx. 2.5MW

2. Energy-efficient equipment (equipment
covered by the ESG Lease Promotion
Project Subsidy Program or equipmentwith 10% or more improved energy
efficiency*1)

Promotion of low carbon anddecarbonization in companies andorganizations participating in RE100 and the
100% Renewable Electricity Declaration RE
ActionProjects with 30% or more improved
energy efficiency

212 million / 1
organization-

Projects with 10% to 30% improved energy
efficiency

528 million yen /4 organization

3. Devices that are compliant with the Act
on Promoting Green Procurement
161

Property type

Total amountspent on Program
A(Oct. 2019 to Mar.
2022)

Information equipment, office automationequipment, etc.

2,922 million yen/ 105organizations

Electric vehicles, hybrid vehicles*2, plug-in
hybrid vehicles*2, fuel-cell vehicles

1,655 million yen/ 75 organization

Expected positive environmental impacts*1 This excludes energy-efficient equipment that uses coal. In cases where non-coal fossil fuels such as oil and natural gas are used, it ispossible to either reduce greenhouse gases or improve energy efficiency by at least 30% for all initiatives in buildings and otherfacilities including initiatives related to renewable energy, and this is limited to the replacement of equipment.
*2 Hybrid vehicles / plug-in hybrid vehicles are limited to those that satisfy emissions of less than 75 g CO₂-p/km (CO₂ emissions perperson when traveling 1 km).

Participation in RE100 and the 100% Renewable Electricity Declaration RE Action
End of July 2019
Number ofdomestic
participatingcompanies
andorganizations
RE100
100%
Renewable
Electricity
Declaration
RE Actionorganizations(Establishedin Oct. 2019)

End of July 2020

Power
consumption(Total)Number ofdomestic
participatingcompanies
andorganizations

20
companies

Approx. 17
TWh

0

0 GW
(Establishedin Oct. 2019)

End of July 2021

Power
consumption(Total)Number ofdomestic
participatingcompanies
andorganizations

35
companies

Approx. 26
TWh71
organizations

Approx. 914
GWh

End of March 2023

Power
consumption(Total)Number ofdomestic
participatingcompanies
andorganizations

Power
consumption(Total)58
companies

Approx. 46
TWh78
companies

Approx. 58
TWh157
organizations

Approx. 1.1
TWh319
organizations

Approx. 1.7
TWh

Annual Review
In an annual review by the Japan Credit Rating Agency, Ltd. (JCR), compliance with the Green Bond Principles and theMinistry of the Environment’s Green Bond Guidelines has been confirmed, and a JCR Green Bond Evaluation of “Green 1”
has been obtained.
Green Bond Review Results (488KB)

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

162

HOME

Sustainability

Participation in Initiatives and Third-Party Evaluation

Participation in Initiatives and Third-Party Evaluation
Participation in Initiatives
UNGC: United Nations Global Compact

The United Nations Global Compact (UNGC) is a voluntary initiative inwhich companies and organizations act as good members of society andparticipate in the creation of a global framework for sustainable growth bydemonstrating responsible and creative leadership. We became asignatory in January 2018. We support the 10 principles of the UNGC in
four categories (human rights, labor, environment, and anti-corruption)
and work toward making them happen.

TCFD: Task Force on Climate-related Financial Disclosures

The Task Force on Climate-related Financial Disclosures (TCFD), which
was set up by the Financial Stability Board (FSB), an internationalorganization of major countries' central banks and financial regulators,presents a framework for disclosures relating to climate change. In May
2019, Fuyo Lease expressed its support for the recommendations set out
in the final report of the TCFD and is preparing to make the required
disclosures.

RE100：Renewable Electricity 100

RE100 is a global initiative run by the Climate Group, an international NGO
in partnership with CDP. Member companies commit to, and publish, atarget of 100% renewable energy use in their businesses by 2050. Fuyo
Lease became a member in September 2018, announced targets of 50%
renewable energy use by 2024 and 100% by 2030, and is taking action to
make them happen.

JCLP: Japan Climate Leaders' Partnership

In February 2018, we became a supporting member of JCLP, a coalition ofcompanies working toward a sustainable, zero-carbon society, and an
executive member in December 2018. As well as engaging in our own zerocarbon initiatives, we are involved in a broad range of activities that
address climate change, such as developing and providing solutions thatwill help the transition to a zero-carbon society, collaborating with global
networks, and making policy recommendations.

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

EMF: Ellen MacArthur Foundation

The Ellen MacArthur Foundation (EMF) is an international initiative whose
purpose is to accelerate the transition to the circular economy. We
became a member of the foundation in November 2020 to acquire
knowledge of the circular economy and collaborate with other companies
and research organizations.

163

Japan Circular Economy Partnership (J-CEP)
J-CEP is a new business co-creation partnership in which companies
aiming to realize a sustainable society work to promote a circular
economy in collaboration with residents, governments, universities andother organizations.
We have been a member of J-CEP since its inception in October 2021.

Financial Behavior Principles for the Formation of a Sustainable Society:Principles for
Financial Action for the 21st Century
The Principles for Financial Action for the 21st Century were formulated as
the policy recommendation for financial institutions seeking to fulfill theirroles and responsibilities in forming a sustainable society. Fuyo Leasesigned the principles in June 2016.

Leading Tenant Action Policy

The Ministry of the Environment launched this program in October 2021 to promote decarbonization of tenantbuildings, etc. In November of the same year, we endorsed the program. The program aims to promote thedecarbonization of tenant buildings by communicating the needs of tenant companies to building owners throughthe formulation of the "Leading Tenant Action Policy," which outlines the decarbonization initiatives of tenantcompanies, etc., and by soliciting and publicizing companies, municipalities, etc., that support the policy.

Third-Party Evaluation
The Fuyo Lease Group is reinforcing its environmental, social, and governance (ESG) activities and pursuing CSV
initiatives to solve social issues. Our ESG practices have been highly evaluated by the following organizations, which ratecompanies based mostly on their non-financial information.

Inclusion in ESG-Related Stock Indices
FTSE4Good Index Series

The FTSE4Good Index Series is a set of stock indexes operated by FTSE
Russell of the London Stock Exchange Group to measure the performanceof companies that demonstrate strong ESG practices.

FTSE Blossom Japan Index

The FTSE Blossom Japan Index is a set of stock indexes operated by FTSE
Russell of the London Stock Exchange Group to measure the performanceof Japanese companies that demonstrate strong ESG practices. The FTSE
Blossom Japan Index is one of five ESG indexes selected by the Japanese
Government Pension Investment Fund (GPIF) to be tracked in order tomanage its ESG investment.

FTSE Blossom Japan Sector Relative Index

The FTSE Blossom Japan Sector Relative Index, created by global index
provider FTSE Russell, reflects the relative environmental, social andgovernance (ESG) performance of Japanese companies in each sector. The
index is designed to be sector neutral. In order to facilitate the transition
to a low-carbon economy, only those companies with particularly highgreenhouse gas emissions that are recognized for their improvement
efforts by the TPI Management Quality Score are included.
164

MSCI Japan Empowering Women Index (WIN)MSCI Japan Empowering Women Index (WIN) is a stock index operated by
MSCI Inc. to target Japanese companies in various industries that arepromoting and maintaining gender diversity. The GPIF also manages its
ESG investment by tracking this index.
* The inclusion of Fuyo General Lease in any MSCI Index, and the use of MSCI logos, trademarks, service marks or Index names herein,
do not constitute a sponsorship, endorsement or promotion of Fuyo General Lease by MSCI or any of its affiliates. The MSCI Indexes
are the exclusive property of MSCI. MSCI and the MSCI Index names and logos are trademarks or service marks of MSCI or its
affiliates.

S&P / JPX Carbon Efficient Index

Jointly developed by S&P Dow Jones Indices LLC. and Japan ExchangeGroup, Inc., the S&P / JPX Carbon Efficient Index is designed to adjust theconstituent weightings based on the companies' performance in terms ofcarbon emissions per unit of revenue and environmental information
disclosure level. The GPIF also manages its ESG investment by tracking
this index.

SNAM Sustainability Index

The SNAM Sustainability Index is an index managed based on the resultsof corporate ESG surveys conducted jointly by SOMPO Risk Management
Inc. and Integrex Inc. Companies whose total ESG scores exceed a
specified level are included in the index. Fuyo Lease has been included in
the index since 2012.

DBJ Environmental Rating

DBJ Environmental Rating is a rating system developed by theDevelopment Bank of Japan, Inc. for the rating companies based on thelevel of their environmental management practices. Based on this,companies can receive loans from the bank at preferential interest rates
according to their respective ratings. For 11 consecutive years, from fiscal
2011 to fiscal 2019, and fiscal 2021 to fiscal 2022, the Company obtained
the highest-level ranking in the DBJ Environmental Rating for its
exceptionally advanced environmentally conscious approach.

Evaluation of Our Initiatives
ESG Finance Awards Japan

In fiscal 2019, in the bond category of the first ESG Finance Awards Japan,
in which the Ministry of the Environment recognizes financial institutions
that are actively engaged in ESG finance and companies engaged inenvironmentally sustainable management, we received the Gold Prize(Minister's Prize, the Ministry of Environment) in recognition of our efforts
in the Fuyo 100% Renewable Electricity Declaration Support Program. In
addition, the Fuyo Zero Carbon City Support Program received a Special
Award (Selection Committee Chairman Award) in the indirect financecategory at the third annual ESG Finance Awards Japan in fiscal 2021 forits uniqueness and novelty.

Nikkei SDGs Management Survey

It is a survey conducted by Nikkei Inc. from 2019 that evaluates initiatives
that contribute to the SDGs through business and lead to improved
corporate value on a 10-point scale from 0.5 to 5 stars.
In the 4th Nikkei SDGs Management Survey in 2022, our company wasrecognized as a 4-star company (a deviation between 60 and 65) in theoverall evaluation.

Environmental Communication Awards

165

The Fuyo Lease Group Integrated Report 2020 received the ExcellenceAward in the Environmental Reporting category of the 24th Environmental
Communication Awards hosted by the Ministry of the Environment andGlobal Environmental Forum.

Platinum Kurumin

The "Kurumin" accreditation mark is issued to companies that have
implemented the General Employers Action Plan under the Act on
Advancement of Measures to Support Raising Next-Generation Children
and whose initiatives have been recognized. In fiscal 2017, we received a
special certification known as the Platinum Kurumin, which is awarded toKurumin-certified companies that have demonstrated a higher level ofcommitment.

EruboshiEruboshi is a system launched by the Minister of Health, Labour, andWelfare for certifying companies that are advancing excellent initiatives topromote the advancement of women in the workplace, based on the Act
on the Promotion of Female Participation and Career Advancement in the
Workplace. We received Eruboshi certification in fiscal 2021 after meeting
specific criteria (recruitment, continuous employment, ways of working
including working hours, percentage of female managers, diverse career
paths) for certification as an excellent company promoting theadvancement of women in the workplace.

PRIDE Index

This index was created in 2016 for the first time in Japan by the voluntary
association "work with Pride" to assess organizations' efforts to makeworkplaces welcoming to LGBTQ+ and other sexual minorities.
We were certified as "Bronze" in the "PRIDE Index 2022."

Health and Productivity Management Organization

Health and productivity management means to regard and strategically
implement employee health management from a business point of view.
Fuyo Lease was recognized as one of the enterprises under the 2023
Certified Health and Productivity Management Organization Recognition
Program, a scheme run by the Ministry of Economy, Trade and Industry(METI) and Nippon Kenko Kaigi.

ESG Lease Promotion Business and Excellent Efforts Certification Program
The program provides certification from the Minister of the Environment
for business operators conducting excellent efforts who have achieved
notable results or are engaged in notable efforts in relation to ESG leases(leases for introducing decarbonization equipment that meets standards
set by the Ministry of Environment).
The Company was certified as a business operator engaged in excellent
efforts in fiscal 2023.

Chiyoda City Global Warming Action Plan InitiateThis is an award system for excellent initiatives on reporting the current implementation status and plans for global
warming action, such as environmental activities, environmental education, and local contribution activities.
Fuyo Lease was awarded ‘Grand Prize’ under the evaluation of the Chiyoda City Global Warming Action Plan Initiate
for 2021.
166

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

167

HOME

Sustainability

Environment / Social Data

Environment / Social Data
Listed by indicators

Scope of coverage* Non-consolidated data: Fuyo General Lease Co., Ltd.
* Consolidated data: The statistics are collected from all domestic offices of Fuyo General
Lease Co., Ltd., Fuyo Auto Lease Co., Ltd., FGLGROUP Business Service CO., Ltd., FGL
GROUP Management Service Co., Ltd., FGL Circular Network Co., Ltd., FGL LeaseUp
Business Service Co., Ltd., Aqua Art Co., Ltd., FGL Techno-Solutions Co., Ltd., Sharp
Finance Corporation, Accretive Co., Ltd., INVOICE INC., FUJITA Co., Ltd., NOC
Outsourcing & Consulting Inc., YAMATO LEASE CO., LTD., WorkVision Corporation, andHuman Centrix Co., Ltd. as well as overseas affiliates and subsidiaries including Fuyo
General Lease (USA) Inc., Fuyo General Lease (China) Co., Ltd., Fuyo General Lease (HK)
Limited, Fuyo General Lease (Asia) Pte. Ltd., Fuyo General Lease (Taiwan) Co., Ltd., Fuyo
General Lease (Thailand) Co., Ltd., FGL Aircraft Ireland Limited, Aircraft Leasing andManagement Limited, FGL Aircraft USA Inc., and Pacific Rim Capital, Inc. For the Fuyo
Lease Group companies, figures from before the figures began to be recorded are notindicated.

Calculation period

One year from April 1 to March 31 of the following year

Independent Assurance

Environmental and social performance data indicated by the checkmark, ☑,have limited assurance by Ernst & Young ShinNihon LLC.
Third-party assurance for fiscal 2022 performance data

Environmental Data

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance

Energy / CO₂

Participation in Initiatives
and Third-Party
Evaluation

Waste

Environment / Social Data

Water Consumption

Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:

Social Data
Employees
Diversity & Inclusion"Integrated Report" PDF
download

Human resources development
Health and Productivity Management
Labor Practices / Health and Safety1681. Environmental Data
1-1 Energy / CO₂
Scope of coverage: Consolidated data
Indicator

Calculation applicability

Calculation method

Total Energy Consumption

Electricity, city gas, LP gas,
gasoline, diesel

Total amount of various fuels used(*1) or purchased amount.
Calculated using unit heating
values stipulated by the Act on
Rationalizing Energy Use.

Electricity Consumption

Conventional electricity,
renewable energies

Total amount of each type ofelectricity used (*1).

Total Gasoline and Diesel
Consumed by Company Vehicles

Gasoline, diesel

Total amount of each type of fuels
used or purchased.

Total CO₂ Emissions

Scope 1: Direct emissions from theuse of fuel for company vehicles,
city gas, natural gas.
Scope 2: Indirect emissions fromthe use of purchased electricity.

Calculated by multiplying theamount of each type of fuel used(*1) or purchased by the CO₂
emission factor for each energy
source.

Total Energy Consumption*1

Electricity Consumption*1

Total Gasoline and Diesel Consumed byCompany Vehicles*2

Total CO₂ Emissions (Scope 1, 2)*1 *3

169

CO₂ emissions (Scope 1, 2, 3)*1*3*4
CO₂ emissions (t-CO₂)
2019/32020/32021/32022/32023/3

Ratio of total CO₂
emissions(2023/3)

Scope 1

707

687

603

584

558☑

0.03%

Scope 2

1,230

1,318

1,460

872

1,157☑

0.05%

Scope 3

1,660,727

2,866,387

2,372,283

2,471,642

2,149,492☑

99.92%

Total CO₂
emissions

1,662,664

2,868,394

2,374,345

2,473,098

2,151,207

100%

CO₂ emissions (Components of Scope 3)*4
CO₂ emissions (t-CO₂)

Category
2019/3

1. Purchased
products andservices

2,120,559

2020/3

2,166,659

2021/3

1,837,2642022/3

1,939,951

2023/3

1,846,951

Composition
ratios intotal CO₂
emissions(2023/3)

Calculation method / remarks

85.93%

Calculated by multiplying the actual
amount by segment based on thecontract execution results of leasing
and installment sales for the current
fiscal year in consolidated
accounting by the emission intensity
based on the Input-Output Tables forJapan and purchase price for thetarget device (*5).

2. Capital
products

994

1,074

8,359

1,917

1,926

0.09%

Calculated by multiplying theacquisition amount of corporate
assets purchased in the current fiscal
year by the emission intensity.

3. Fuel- andenergy-related
activities notincluded in
Scope 1 or 2

347

362

366

385

433

0.02%

Calculated by multiplying theamount of electricity and fossil fuels
used in the Scope 1 and 2
calculations by emission intensity.

0.11%

Based on the contract execution
results of leasing and installment
sales for the current fiscal year inconsolidated accounting, andassuming the weight per amount of
the representative product (*6), thetransportation ton -kilometer iscalculated from the transportation
distance (domestic truck
transportation of 1,000 km one way)
based on the transportation
scenario. This transportation tonne kilometer is then multiplied by thedomestic truck transportation
emission intensity.

0.01%

Calculation is based on generation ofindustrial waste and general garbage
until 2020/3, and generation ofindustrial waste and general wastefrom 2021/3, multiplied by emission
coefficients for each type of disposal
method.

4.
Transportation
anddistribution(upstream)

5. Waste
generated inoperations*7

413,244258

436,416291

303,049170

330,273

143

2,350

101

170

CO₂ emissions (t-CO₂)

Category
2019/3

6. Businesstravel255

2020/3314

2021/394*

2022/3152*2023/3448

Composition
ratios intotal CO₂
emissions(2023/3)

Calculation method / remarks

0.02%

Calculated by multiplying thenumber of consolidated employeesby the emission intensity per
employee.
*As the impact of COVID-19 caused asignificant reduction in businesstravel in 2021/3 and 2022/3,
calculations are based on thenumber of consolidated employees
multiplied by the emissions intensityand business travel expenses relative
to fiscal 2019.

7. Employee
commuting

471

576

631

760

822

0.04%

Calculated by multiplying thenumber of consolidated employeeswith the number of business days at
Fuyo General Lease's head office,and the emission intensity per
working day (Work type: Office, City
classification: Large city).

8. Leased
assets(upstream)Not
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot applicable(Energy usage for rented offices, etc.,
is included in Scope 1 and 2.)

9.
Transportation
anddistribution(downstream)Not
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot applicable(There are no applicable emissions
since the Company bears
transportation costs in the entire
logistics process.)

10. Processingof sold
products

Not
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot applicable(There are no applicable emissions
since the Company does not handle
intermediate products.)

0.50%

Based on the contract execution
results of installment sales (leasing
and installment sales until 2022/3)
for the fiscal year under review inconsolidated accounting, we madeassumptions about sales volumes
per unit sales amount for
representative products (*6). We thenestimated the energy consumption
resulting from the usage of these
representative products, consideringfactors such as regular usage
scenarios. These scenarios are
assumed based on product design
specifications and consumers' usage
conditions. Finally, the outcome ismultiplied by the emission intensity
for each energy type.

0.01%

Based on the contract execution
results of installment sales for thecurrent fiscal year in consolidated
accounting, the weight per amountof representative product (*6) isassumed, the installment sales
product weight is calculated, and thisweight is multiplied by the emission
intensity for each waste type.

11. Use of soldproducts

12. End-of-life
treatment ofsold products

247,22716

254,84817

213,255

15

193,851

11

10,73638

171

CO₂ emissions (t-CO₂)

Category
2019/3

13. Assets(downstream)

14. Franchises

15.
Investments*8

Total CO₂
emissions

2020/3-Not
applicable

6,185

2,789,556

2021/3-Not
applicable

5,830

2,866,387

2022/3-Not
applicable

9,080

2,372,283

2023/3-Not
applicable

4,200

2,471,642

Composition
ratios intotal CO₂
emissions(2023/3)

Calculation method / remarks

281,189

13.08%

Based on the operating lease asset
balance for the fiscal year underreview in consolidated accounting,
we made assumptions about numberof lease units per unit sales amountfor representative products (*6). We
then estimated the energy
consumption resulting from theusage of these representative
products, considering factors such as
regular usage scenarios. These
scenarios are assumed based on
product design specifications andconsumers' usage conditions. Finally,
the outcome is multiplied by theemission intensity for each energy
type.

Not
applicableNot
applicableNot applicable(There are no applicable emissions
since the Company has no franchise.)

0.21%

Calculated by multiplying the Scope
1 and 2 emissions of major investees(listed share issues selected toaccount for 80% or more of the final
balance of listed shares) in theprevious fiscal year by theshareholding ratio.

100%

The Ministry of the Environment’s“Basic Guidelines on Accounting forGreenhouse Gas Emissions
Throughout the Supply Chain(ver.3.3)” and the “LCI database
IDEAv2 (for calculating greenhousegas emissions in supply chains)” areapplied to the above emission
intensity.

4,497

2,149,492☑

*1 Electricity usage has been estimated for some locations. The estimation method is based on multiplying the area of the site subject toestimation by the electricity consumption per area of the Fuyo Lease head office, the entire building of the site subject to estimation,or the head office of the site subject to estimation.
*2 In addition to values shown in the graph, 664.75 kg of hydrogen fuel was used.
*3 Total CO₂ emissions (Scope1,2) were calculated with the emission factors specified by the government based on the Ministerial
Ordinance Concerning GHG emissions Associated with Business Activities of Specified Emitters (The emissions associated withelectricity are calculated based on the adjusted annual emission factors issued by power transmission and distribution business
operators of where our regional operations and offices are located. Calculations concerning overseas electric power use the emission
coefficients of the specific country published by the International Energy Agency [IEA]). However, Fuyo General Lease and the Group’s
companies are not considered to be specified emitters.
*4 The total emissions (Scope3) are calculated for all calculable categories based on "Basic Guidelines on Accounting for Greenhouse Gas
Emissions Throughout the Supply Chain (Ministry of the Environment, Ministry of Economy, Trade and Industry)."
From fiscal 2018, the data was calculated using emissions unit values from the "Database for Emissions Unit Values for Calculation ofGreenhouse Gas Emissions, etc., by Organizations throughout the Supply Chain (Ver. 3.0)" and "LCI Database IDEAv2 (For Calculating
Greenhouse Gas Emissions in the Supply Chain)."
From fiscal 2021, the data was calculated using emissions unit values from the "Database for Emissions Unit Values for Calculation ofGreenhouse Gas Emissions, etc., by Organizations throughout the Supply Chain (Ver. 3.2)" and "LCI Database IDEAv2 (For Calculating
Greenhouse Gas Emissions in the Supply Chain)."
From fiscal 2022, the data was calculated using emissions unit values from the "Database for Emissions Unit Values for Calculation ofGreenhouse Gas Emissions, etc., by Organizations throughout the Supply Chain (Ver. 3.3)" and "LCI Database IDEAv2 (For Calculating
Greenhouse Gas Emissions in the Supply Chain)."*5 Representative products for leasing are personal computers, other general industrial machinery and equipment, construction andmining equipment, aircraft, trucks, buses, and other motor vehicles, passenger cars, medical machinery and equipment, other officeequipment and nonresidential construction (non-timber construction). Representative products for installment sales are service
equipment and construction and mining equipment.
*6 As a wide range of products is handled through leasing and installment sales, it is difficult to measure the usage situation of eachindividual product. Therefore, the statistics have been standardized using IT and office equipment (laptop computers) as therepresentative product.
*7 Scope of coverage includes industrial waste from all domestic locations of Fuyo General Lease Co., Ltd. and FGL Circular Network Co.,
Ltd., as well as general waste from Fuyo General Lease / head office, FGL GROUP Business Service Co., Ltd. and FGL GROUPManagement Service Co., Ltd.
*8 Scope of coverage is Fuyo General Lease Co., Ltd.
172

1-2 Waste
Scope of coverage: All domestic locations of Fuyo General Lease and FGL Circular Network Co., Ltd.
Indicator
Volume of Industrial Waste
Generated

Calculation applicability

Calculation method

In addition to industrial waste,
includes items such as bottles
among objects, but not cardboard.

Total of industrial waste items thatcan be confirmed weight from the
manifest.

Volume of Industrial Waste Generated

1-3 Water Consumption
Scope of coverage: Fuyo General Lease Co., Ltd. / Head Office (including FGL GROUP Management Service Co., Ltd.) andAqua Art Co., Ltd.
Volume of water consumed*9*9 For Fuyo General Lease, only water consumption for certain floors of Fuyo General Lease / head office was applicable in calculations
from June 2020 onward due to the relocation of head office, resulting in a significant decrease in water consumption from fiscal 2020.

173

2. Social Data
2-1 Employees
Scope of coverage: Non-consolidated data unless otherwise noted
Reference date: Final day of calculation period (March 31)
Indicator

Calculation applicability

Calculation method

Retention rate of employees after 3
years

Applies to new graduates(managerial career track andoperations staff)

Percentage of employees whojoined the Company in theapplicable fiscal year and remain
employed as of April three years
thereafter.

Turnover rate

Coverage for key career track,
managerial career track andoperations staff employees.
The turnover rate includes
voluntary resignations, mandatory
retirement, and other reasons forleaving (e.g., transfer). It does notinclude employees who have beenre-employed on a contractual
basis leaving at the end of theircontracts.

Turnover rate = the number of
employees who left their job
during the fiscal year divided by
the number of key career track,
managerial career track andoperations staff on the first day of
the fiscal year (April 1), multipliedby 100.

Number of employees – consolidated data (persons)
End of FY
2016

End of FY
2017

End of FY
2018

End of FY
2019

End of FY
2020

End of FY
2021

End of FY
2022

1,703

1,715

1,960

2,416

2,637

3,189

3,437

Number of
employees

Number of employees (persons)
End of FY 2018

End of FY 2019

End of FY 2020

End of FY 2021

End of FY 2022

Male

Female

Total

Male

Female

Total

Male

Female

Total

Male

Female

Total

Male

FemaleTotal

Key career
track andmanagerial
career track
employees*10

459

63

522

456

85

541

469

104

573

473

122

595

468

139

607

Operations
staff*10

1

155

156

1

138

139

2

137

139

2

142

144

3

139

142

Temporaryemployees

20

6

26

28

7

35

38

9

47

46

13

59

54

13

67

Total

480

224

704

485

230

715

509

250

759

521

277

798

525

291

816

*10 In the fiscal 2019 revision to the human resources system, the classification of managerial career track and general staff changed to key career track, managerial career track, andoperations staff.

174

Number of new graduates employed (persons)
FY ofjoining
Fuyo
Lease

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023

Total

28

31

35

29

45

38

43

43

Male

20

18

20

18

27

18

20

18

Female

8

13

15

11

17

20

23

25

Number of new graduates employed (persons) and retention rate after 3 years (%)
FY ofjoining
Fuyo Lease

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Managerial
careertrack
employees

16

26

22

29

27

27

39

Operations
staff

3

0

6

2

6

2

6

Total

19

26

28

31

33

29

45

Retention
rate ofemployees
3 yearsafter
joining
Fuyo Lease

94.7

100

85.7

100

94.3

89.7

88.9☑

Rate of mid-career hires (%)
FY of joining
Fuyo Lease

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

Rate of midcareer hires

18.4

14.6

21.6

6.3

22.4

28.3

175

Number of employees leaving (persons) / reasons for leave / turnover rate (%)
FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

Key career
track andmanagerial
career track
employees*10

6

11

13

10

12

15

18

Operations
staff*10

1

3

2

4

2

1

1

Total

7

14

15

14

14

16

19

Voluntary
resignation

6

9

14

11

11

11

14

Mandatory
retirement

1

2

1

2

1

1

3

Other

0

3

0

1

2

4

2

Turnover
rate

1.0

1.9

1.9

1.8

1.7

1.9

2.2☑

Average age (age) / average length of service (years) / average salary (thousand yen)
End of FY
2016

End of FY
2017

End of FY
2018

End of FY
2019

End of FY
2020

End of FY
2021

End of FY
2022

Average
Age

41.5

41.4

41.2

41.3

41.4

41.4

41.3

Length ofservice

16.4

14.7

14.6

14.8

14.5

14.2

14.1

Annualsalary

8,410

8,454

8,669

8,833

8,675

8,771

8,734

176

2-2 Diversity & Inclusion
Scope of coverage: Non-consolidated data
Reference date: March 1 only for employment of employees with a disability and, for others, final day of calculation
period (March 31)
Indicator

Calculation applicability

Calculation method

Number of female employees inmanagement positions(Employees)

Applies to regular employees.
Revision to the human resources
system at the end of fiscal 2019classified senior leaders (a position
equivalent to the position ofsection chief) as managers.

Total number of female managers.

Percentage of female employees inmanagement positions (%)

As above.

Ratio of women among thenumber of male and female
managers.

Applies to regular and non-regular
employees.

Calculated using the same method
used by the Ministry of Health,Labour and Welfare based on the
Act to Facilitate the Employmentof Persons with Disabilities, using
March 1 as the reference date.

Employment rate of the disabled(%)

End of2016

End of2017

End of2018

End of2019

End of2020

End of2021

End of2022

Female managers (person)

29

32

36

79

113

130

141☑

Percentage of female
managers (%)

9.1%

9.9%

11.5%

21.1%

27.5%

29.5%

30.9%☑

Number of female
employees who takechildcare leave (persons)

10

4

3

6

1

7

3

Percentage of female
employees who takechildcare leave (%)

100

100

100

100

100

100

100

Number of male
employees who takechildcare leave (persons)

11

2.3

19

12

11

22

17

Percentage of male
employees who takechildcare leave (%)

52.4

43.8

90.5

85.7

78.6

110.0

100

Employment rate of thedisabled (%)

2.2

2.3

2.3

2.1

2.4

2.2

2.3☑

177

2-3 Human Resources Development
Scope of coverage: Non-consolidated data
Reference date: Final day of calculation period (March 31) unless otherwise noted.

Total employee training hours (hours) / Average training hours per employee (hours)
FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

Total
employeetraining hours(hours)

16,10918,093

19,11819,937

19,80920,175

20,840*11

Averagetraining hours
per employee(hours)

29.2

31.2

31.9

32.6

30.3

29.8

28.8

*11 Some language support and qualification acquisition support programs that had been counted as training hours until fiscal 2021
have been excluded from calculation because they were changed to be covered under the cafeteria plan (self-development) fromfiscal 2022.

Number of trainees sent overseas (persons)
FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

5

8

8

9

3

6

6

Number of
employees
sentoverseas

Number of employees who used the career track shift system (persons)
Numberof users

Apr. 2017

Apr. 2018

Apr. 2019

Apr. 2020

Apr. 2021

Apr. 2022

Apr. 2023

1

1

0

2

6

0

2

Number of employees converted from contractors to full-time employees under the Fulltime employee challenge system (persons)
Numberof users

Apr. 2017

Apr. 2018

Apr. 2019

Apr. 2020

Apr. 2021

Apr. 2022

Apr. 2023

0

3

1

0

3

1

1

178

2-4 Health and Productivity Management
Scope of coverage: Non-consolidated data
Reference date: Final day of calculation period (March 31)
Indicator

Calculation applicability

Calculation method

Rate of taking annual paid leave

Applies to regular and non-regular
employees employed from the firstdate of calculation through to thefinal date of calculation. (Applies
to seconded employees, but does
not apply to officers, those on
long-term leave and those on
incoming assignment).

Leave acquisition rate = Number ofdays of paid leave taken byworkers during the calculation
period divided by the number ofdays of paid leave granted toworkers during the calculation
period, multiplied by 100.

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

Rate of taking
annual paid
leave

68.9

68.0

68.4

66.3*12

72.0

82.3

93.5☑

Rate ofemployees
receiving
regularmedicalcheck-ups(%)*13

99

97.5

98.4

98.4

100

100

100

*12 Due to restrictions on the number of employees coming to work in conjunction with the spread of COVID-19, actual data on paid
leave for eight Fuyo General Lease (USA) Inc. employees is not included.
*13 Regularly provided medical check-ups are categorized into general medical examinations for employees of less than 35 years of age
and comprehensive medical examinations for employees of 35 years of age or above.

2-5 Labor Practices / Health and Safety
Scope of coverage: Non-consolidated data
Reference date: Final day of calculation period (March 31)

Number ofindustrial
accidents(number ofcases)*14

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

1

1

2

4

2

3

2

*14 Accidental injuries due to falling in the street while commuting, all of which are minor injuries.

Third Party Assurance

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.179

HOME

Sustainability

Independent assurance

Independent assurance
Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fundprocurement
through ESG financeParticipation in Initiatives
and Third-Party
Evaluation
Editorial Policy
Independent assurance"Integrated Report" PDF
download

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

©

Fuyo General Lease Co., Ltd.

180

HOME

Sustainability

Editorial Policy/For inquiries and comments regarding the sustainability activities, please contact:

Editorial Policy/For inquiries and comments regarding thesustainability activities, please contact:
About this website

Sustainability

On this website, we report on Fuyo Lease Group's approach to sustainability and on the main activities carried out by theGroup in fiscal 2022 in as much detail as possible. Additionally, details on the activities carried out by group companies
have been included, so please have a look at these.
Each Group Company's Environmental and Social initiatives

Fuyo Lease Group's CSV

Since fiscal 2018, we have also published an Integrated Report, which details how social and corporate value is createdthrough our businesses from medium- to long-term perspectives. Please also take a look at this.
"Integrated Report" PDF download

Environmental Report

The Group would like to receive opinions and impressions from a wide range of stakeholders which we would like to referto in future activities and reports. Please send us questions, comments, impressions, and other feedback you mighthave.
For questions, comments, and other feedback, please click here

Solving Social Issues
through BusinessSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives

Reporting organization

Fund Procurement
through Sustainable
Finance

Reporting period

Participation in Initiatives
and Third-Party
Evaluation

Fuyo General Lease Co., Ltd. and its 65 consolidated subsidiaries and 18 affiliated companies
Fiscal 2022 (April 1, 2022 to March 31, 2023)* Some reports include reports from outside the reporting period.

Update time

January 2024 (previous information was updated in November 2022)* Updated as needed

Reference guidelines

In preparing this report, we have referred to the Global Reporting Initiative (GRI), GRI Standards, Ministry of theEnvironment's Environmental Reporting Guidelines 2018, and Japan Standards Association's ISO26000: 2010 Social
Responsibility Guidance.

Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download

181

For inquiries and comments regarding the Sustainability
activities of Fuyo Lease Group, please contact:
Fuyo General Lease Co., Ltd. Creating Shared Value Promotion OfficeTEL+81-3-5275-8809

We welcome any questions, comments, impressions, and other feedback you might have.
Content us here

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

182

HOME

Sustainability“Integrated Report” PDF download“Integrated Report” PDF download“Integrated Report 2023”“Integrated Report 2022”“Integrated Report 2023”(16600KB)
Consolidated Financial
statements 2023
（revised） (807KB)
Consolidated financial
statements 2023
(1202KB)“Integrated Report 2021”“Integrated Report 2022”(12366KB)
Consolidated financial
statements 2022
(1334KB)
Sustainability Website
2022 Archive (13009KB)

Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report“Integrated Report 2020”“Integrated Report 2021”(4761KB)
Sustainability Website
2021 Archive (14129KB)“Integrated Report 2019”

Sustainability“Integrated Report 2020”(5649KB)
Consolidated financial
statements 2020(1214KB)
CSR Website 2020 Archive(13151KB)“Integrated Report 2018”“Integrated Report 2019”(5378KB)
CSR Website 2019 Archive(11487KB)“Integrated Report 2018”(6714KB)“Integrated Report 2018”
full version (7645KB)

Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fund Procurement
through Sustainable
Finance
Participation in Initiatives
and Third-Party
Evaluation
Environment / Social Data
Editorial Policy / For
inquiries and comments
regarding thesustainability activities,
please contact:"Integrated Report" PDF
download“Integrated”

Site Policy Privacy policy Customer-oriented Operational Policies
Blocking Relationships with Antisocial Forces Site Map

Basic Policy for Prevention of Money Laundering, etc.

© Fuyo General Lease Co., Ltd.

183