Environmental Conservation and Climate Change Actions
VISION

Working on reducing the environmental impact and helping local companies achievecarbon neutrality in order to build a decarbonized society

Decarbonization consulting
In order to provide one-stop support for customers’ carbon neutral business management, The Juroku Bank is offering the following
support menu through business co-creation with Wastebox Inc., a company with a 10-year record in tracking environmental impacts
and greenhouse gas emissions.

Since August 2021: Carbon Neutral Navigator Supported by WasteBox
Since February 2023: Decarbonization Management Transition Plan review
Since August 2023: Greenhouse gas emissions management system “Trianet Zero”

Key Items

Decarbonization support for local companies

Paper use reduction

CO2 emission reduction

Use of HVs and EVs for sales fleet

Environmental Policy
Basic
Philosophy

Since March 2024:

We ensure that greenhouse gas emissions are calculated and offset appropriately for the products our customers manufactureand sell, and assist in obtaining certification.

Step

1

Step

2

Step

3

The Juroku Financial Group (the corporate group consisting of the Company and its consolidated
subsidiaries) recognizes that making efforts for environmental conservation is a duty that should be
fulfilled by society as a whole. As the responsibility of a good corporate citizen serving the community,
we will contribute to the building of a sustainable society as well as creating corporate value by sincerely
addressing environmental issues through our business activities.
Implement GHG emission
calculation and offset

ActionGuidelines

Carbon offset certification acquisition support

1. We comply with environment-related laws, regulations, agreements, and other rules.
2. Recognizing that the initiative for environmental conservation is one of our management priorities, we
strive to disclose information about our activities.
3. We accurately grasp the impact on the environment of our corporate activities, and strive to reduce theenvironmental impact through energy-saving, resource-saving and other measures.
4. We support customers’ environmental conservation efforts by developing and providing
environmentally friendly financial products and services.
5. Taking a long-term perspective, we promote social contribution activities in collaboration andcooperation with society at large.
6. We conduct awareness raising and education to increase the environmental awareness of each and every
officer and employee.

Supporting Local Companies’ Carbon Neutral Business Management
Presentation of case studies at the event commemorating the visit of the CEO of theinternational environmental NGO CDP to Japan
We presented examples of our corporate initiatives on the theme of “The role offinancial institutions in decarbonization” at the event in Japan commemorating thevisit of Ms. Sherry Madera, CEO of CDP, a non-profit organization that operates a
global environmental information disclosure system for companies, investors, andlocal governments.

Certification
application

Certification label
acquisition and PR

Carbon offset
certified products

Business
matching

Listed clientcompanies

Awarded the Environment Minister’s Award for Best Practice (regional category) of the Principles for
Financial Action for the 21st Century
In recognition of our efforts, such as expanding ourdecarbonization support menu and providing decarbonization
consulting, we were awarded the 2023 Environment Minister’sAward for Best Practice (regional category) of the Principles for
Financial Action for the 21st Century in March 2024.
This award is the highest level given by the Principles for
Financial Action for the 21st Century Secretariat to initiatives thatare in line with the core business of financial institutions, selected
and recognized from those solicited as contributing to the creationof a sustainable society .

Supporting decarbonization by Juroku Lease
As the first regional bank-affiliated lease company to introduce a “Carbon Neutral Program,” we provide one-stop support forvisualizing CO2 emissions reducing CO2 emissions through energy conservation, energy creation, and fuel conversion offsetting
CO2 emissions that cannot be fully reduced.
In addition, we have participated in the Tokyo Stock Exchange’s Carbon Credit Market since December 2023.

Initiatives for Environmental Conservation and Environmental Impact Mitigation
Expanding introduction of CO2-free electricity
From June 2024, the company has switched to CO2-free electricity at 87 branches, two loan service centers, and four training
facilities of The Juroku Bank, the group’s core company, in Gifu Prefecture.
CO2-free electricity has already been introduced at The Juroku Bank’s head office building since November 2021 and The Juroku
Bank’s computer center and administrative center building since October 2023. The proportion of renewable energy in the Group’s
annual electricity consumption is expected to be approximately 60%.

31

JUROKU Financial Group ANNUAL REPORT 2024

32

Environmental Conservation and Climate Change Actions

Responding to business opportunities associated with climate changeWith the transition to a decarbonized society, customer demand for funds is expected to increase, and business restructuring anddemand for new financial instruments and services are expected to grow, creating more business opportunities for the Group. The
Juroku Financial Group will proactively work to provide various financing and solutions utilizing financial and non-financial functions
to solve customers’ problems.

Disclosure Based on TCFD Recommendations<Governance>
Sustainability management structure

Financing to solve environmental issues

Board of Directors

As stated in the Sustainability Policy, the Juroku Financial
ReportSuperviseGroup recognizes sustainability initiatives (e.g. on climate
Group Management Council
change) as an important management challenge. “The Juroku
Financial Group SDGs Declaration” lists “revitalization of the
Sustainability Council Chaired by the President
local economy,” “sustainable development of the local
ReportInstructcommunity,” “environmental conservation and climate change
Sustainability Management Officeactions,” “empowerment of diverse human resources,” and“advanced governance” as key challenges.
ReportOversee
In order to address these challenges appropriately, theSustainable Business
Environmental Conservation
D&I
Climate Change andGroup has set up the Sustainability Council, which is chaired
Working Group
Working Group
Working Group
TCFD Working Group
Response to climate change /Business
CO2 emissions reduction /by the President and consists of Group Management Council
Diversity andDisclosure based on TCFD
opportunity
Environmental
work-style reform
recommendations
initiatives
conservation
members, Division General Managers and the head of the
Sustainability Management Office. The Council generally
meets at least once every 3 months to deliberate key challenges (e.g., drawing up a policy for implementing initiatives on climatechange and other sustainability issues, setting targets and checking progress), and reflects the results to management strategies and risk
management.The content of deliberation at the Council is regularly reported to the Board of Directors at least once every three months
for appropriate supervision.
In addition, four working groups have been established under the Sustainability Council with responsibilities for Sustainable
Business, Environmental Conservation, D&I, and Climate Change and TCFD. The working groups are composed of cross-organizational
members from each Group company, including the executive director in charge, and generally meet at least once a month to discusschallenges that line up with respective responsibilities and report details to the Sustainability Management Office.

Opportunities and risks associated with climate change
The Juroku Financial Group analyses risks and opportunities associated with climate change in the timeframes of “short term,” “midterm” and “long term.” The results of analyzing scenarios are used to organize active dialogue (Engagement) for supporting customers
who are working toward a decarbonized society, and reinforce financial support in the forms of sustainable financing and transition
financing to create business opportunities and reduce risks.

Opportunity

Main opportunities and risks

Timeframe

Products and services

Increase in business opportunities (e.g. offering investments, loans and consultation services to help Short- to long-term
customers transition to a decarbonized society)
Increases in public works projects for disaster management and the demand for customers’ capital Mid- to long-term
investment fundResource efficiency
Energy sources

Reduction in business costs through resource-saving, energy-saving, and new technology utilization

Increase in collaborative system development efforts with local governments and other organizations on
disaster preparedness/mitigation to strengthen local resilience
Enhancement in corporate value by appropriately implementing and disclosing climate change initiatives
Deterioration in customers’ business performance associated with an increase and intensification in theseverity of abnormal weather, and degradation in loan asset value resulting from damage to collateral value
Acute risks
PhysicalWork suspension occurring as a result of emergencies affecting the Group’s sites or officers and employees
Degradation in loan asset value resulting from damage to collateral value; deterioration in customers’risksbusiness performance resulting from such factors as changes in precipitation and weather patterns, as well
Chronic risks
as higher average temperatures and sea levels
Degradation in loan asset value resulting from deterioration in customers’ business performance, associated
Policy / Law
with such factors as climate change policies and regulatory reinforcements
Degradation in loan asset value resulting from deterioration in customer’s business performance, associatedTransitional Technologies
with failure to invest in and the transition costs for low-carbon technologies
Degradation in loan asset value resulting from deterioration in customer’s business performance, associatedrisksMarketwith such factors as changes in consumer behavior and rising raw material costs
Degradation in corporate value resulting from slow implementation and disclosure of appropriate climateReputation
related initiatives*Short-term = Around 5 years; Medium-term = Around 10 years; Long-term = Around 30 years

Risk

Resilience

33

Green loan and green private placement bond
These financing products limit the use of funds to those that contribute to solving environmental issues, such as the introduction of renewable energy
generation facilities or the switch to highly energy-efficient equipment. The scheme of obtaining a second opinion from an external organization allows
the company to communicate its environmental initiatives to society and stakeholders.

Sustainability linked loan
This financing product sets sustainability performance targets (SPTs), which are business goals related to SDGs and ESG, and offers preferential interest
rates and other loan terms based on the degree to which the SPTs are achieved. We support our customers’ efforts for carbon-neutral business
management by setting greenhouse gas emission reduction targets consistent with the levels required by the Paris Agreement.

Positive impact financeThis financing product comprehensively analyzes and evaluates the impact of corporate activities on either environmental, social, or economic aspects,
and establishes KPIs that contribute to creating positive impact and reducing negative impact. We continue to support our customers’ efforts throughmonitoring of KPI achievement.

Supporting local companies to achieve carbon neutrality<Strategy>

Assessment item

We offer a full range of financing products to meet our customers’ financing needs for carbon-neutral business management and green initiatives.

JUROKU Financial Group ANNUAL REPORT 2024

Short- to long-term

We support carbon management by providing consultation services to help customers visualize their greenhouse gas emissions and set
reduction targets.
Since the service was launched in August 2021, we have provided decarbonization consultation services to 217 companies.We are also
working to support our customers in obtaining SBT certification (for SMEs), and 154 companies have been certified with the support of Juroku
Financial Group.

Offering

FY2021

Decarbonization consultation

47 cases

91 cases

79 cases

217 cases

SBT certification support

2 cases

43 cases

43 cases

154 cases

Decarbonization
consultation

Identifying
the status quo
Identifying
Scope 1 and 2
emissionsShort- to long-term
Short- to long-term
Short- to long-term
Short- to long-termMid- to long-term

FY2022

Properly disclosing
progress annually

Reducing/
Disclosing

Management integrated
emissions reduction/
disclosure activity

FY2023

Total

Identifying the damage businessactivities have done to the planet, using
an international standard called theGreenhouse Gas Protocol

Setting thetargetSetting SBT
standard reduction
targetSetting targets(SBTi)

Mid- to long-termMid- to long-termMid- to long-term

Furthermore, we have built a continuous support system to help our customers achieve decarbonization management, including helping them
prepare decarbonization management transition plans and providing a system environment for calculating emissions.

Short- to long-term

34

Environmental Conservation and Climate Change Actions

Transitional risks
Following a qualitative analysis of sectors with large credit exposure and the carbon-related sectors defined in the TCFD recommendations, we haveidentified the “electric power sector” and “automotive sector” as sectors of significant transitional risks for the Group.

Examples of risks associated with climate change
The Juroku Financial Group organizes climate change risk into four categories. For physical and transitional risks arising from climatechange, the following examples are assumed.
Risk
category

Examples of physicalrisks

Definition

Risk of incurring losses due to the decrease orloss of asset value including off-balance assets

Credit risk caused by deterioration of customers’
financial condition

Risk of incurring losses from the fluctuationof the value of assets and liabilities(including off-balance assets and liabilities),
as a result of changes in various market risk
Market risk factors such as interest rates, foreignexchange rates, and stocks, as well as the riskof incurring losses due to fluctuations in theincome generated from assets and liabilities
Risk of incurring losses due to difficulties insecuring necessary funds or being forced toraise funds at significantly higher interest
rates than usual because of a mismatch
Liquidity between investment and financing periods or
unexpected outflow of funds as well as risk ofrisk
incurring losses due to the inability to tradein the market or being forced to trade at asignificantly unfavorable price than usual
because of market disruption

Operational Risk of incurring losses due to inappropriate
business processes, activities of officers andrisk
employees, or systems, or external events

Timeframe

Deterioration in customers’
business performance associatedwith an increase andintensification in the severity ofabnormal weather, anddegradation in loan asset value
resulting from damage tocollateral value

Short- tolong-term

Deterioration in investee
companies’ business performancedue to increased and more severe
extreme weather events, causing adecline in prices of securities
holdings

Deposit outflows due to theoccurrence of demand for funds
from customers affected byextreme weather events

Short- tolong-term

Short- tolong-term

Work suspension occurring as aresult of emergencies affecting theGroup’s sites or officers andemployees

Short- tolong-term

Examples of transitionalrisks
Degradation in loan asset value
resulting from deterioration incustomers’ business performance,
associated with such factors as
climate change regulatory
reinforcements, failed investment
in low-carbon technologies, andchanges in consumer behaviors
Deterioration in investee
companies’ business performancedue to climate-related regulationtightening, failed investment in
low-carbon technologies, andchanges in consumer behaviors,
causing a decline in prices of
securities holdings
Deterioration in the financing
environment and outflow ofdeposits due to deterioration in
the Group’s creditworthinessresulting from delays inaddressing climate change risk

Losses from fines and lawsuits due
to inappropriate responses toclimate change, etc.

Timeframe

In terms of transitional risks, on the premise of the RCP2.6 scenario (2 °C scenario) and NZE scenario (1.5 °C scenario), we calculated theimpact on the Group’s credit-related costs in view of the increased cost of transition into a decarbonized society such as the introduction of the
carbon tax, a decline of net sales and future market trends. The result points to a cost increase of approx. 2.5 billion yen.

Analysis results are calculated under specific preconditions.
The impact on the Group’s finances has been found to be limited within the scope of this analysis, but we will continue toenhance the scenario analysis.

Mid- tolong-term

Carbon-related assets
For carbon-related assets for which the TCFD recommendations recommend disclosure, the following table shows the loan balance bysector and the percentage of total sector loans.
Short- tolong-term

Short- tolong-term

Ratio of carbon-related assets against theloan balance(as of the end of March 2023)*L oan balance = Total of loans, foreign exchange,
acceptance and guarantee, etc.
*Electric power & utilities sector excludes the water andrenewable energy power sectors

Short- tolong-term

SectorLoan balance (Millions of Yen)

Ratio

Oil & gas

36,562

0.7%

Electric power & utilities

45,424

0.9%

Air transportation

17,0380.3%

Marine transportation

3,091

0.1%

Land transportation

105,679

2.1%

Automotive

78,241

1.6%

Metals & mining

96,3702.0%

Chemicals

24,913

0.5%

Construction materials & capital goods

216,628

4.4%

Real estate management & development

417,768

8.5%

Beverages & food61,552

1.2%

Agriculture

2,674

0.1%

Paper & forestry

Scenario analysis

Total

30,6970.6%

1,136,636

23.0%

The Juroku Financial Group conducts scenario analysis on physical risks and transitional risks in order to identify how climate-relatedrisks would affect the Group.
Physical risks

Transitional risks

Scenario

IPCC/RCP8.5 scenario (4°C scenario)

IPCC/RCP2.6 scenario (2°C scenario)
IEA/NZE scenario (1.5°C scenario)

Risk event

Large-scale flooding

Transition to a decarbonized society

Analysis target

Borrowers in Gifu/Aichi prefectures
Collateral of real estate (buildings) in Gifu/Aichi prefectures(excluding secured home loans)

Electric power sector
Automotive sector

Analysis content

Deterioration of business performance due to customers’
business suspension/stagnation
Damage to the Group’s real estate (buildings) collateral

Deterioration of customers’ business performance due to cost
increase and sales decline

momentum to address climate change, and we have implemented proactive management and risk control measures based on the risk

Analysis period

Up to 2050

Up to 2050

change and decarbonization.

Increase of credit-related costs: Up to approx. ¥7.0 billion

Increase of credit costs: Cumulative total of approx. ¥2.5
billionAnalysis results

Physical risksRain-prone Japan experiences heavy precipitations each year, causing rivers to swell and triggering flooding. In recent years, the number of heavy
localized rainstorms has become more common, causing significant damage to many areas including the Group’s sales territories.
In terms of physical risks, we have anticipated an increase in the frequency of large-scale flooding due to climate change, and calculated theimpact of climate-attributable large flooding in Gifu and Aichi prefectures on the Group’s credit-related costs on the premise of the RCP8.5
scenario (4 °C scenario). The result points to a cost increase of approx. 7.0 billion yen.

JUROKU Financial Group ANNUAL REPORT 2024

Climate change risk identification and assessment process
The Juroku Financial Group considers risks that could have a significant impact on management to be top risks. From the perspectiveof probability and degree of impact, the Board of Directors selects the risk events that may have a significant impact on our financial
year, as top risks. Eleven top risks were selected by the Board of Directors in March 2023, one of which is the risk related to climatechange. The selection was made in light of the increase in extreme weather events and natural disasters and the growing international*IPCC: Intergovernmental Panel on Climate Change*IEA: International Energy Agency

35<Risk Management>

scenario of deteriorating business performance and business model obsolescence of the borrower due to delays in responding to climate

Climate change risk management process
An integrated risk management framework is in place at the Group, categorizing into and managing the Group’s overall financial risks
as “credit risk,” “market risk,” “liquidity risk” and “operational risk.” Climate change risk is recognized as a driver of financial risk, andis managed with the framework for managing risks such as credit and operational risks.
We have also introduced a risk appetite framework (RAF) from the perspective of organically combining earnings, risk, and capital toenhance corporate value through integrated management. With respect to climate change risk, we are working to manage itappropriately, with our Risk Appetite Policy stating that we will deepen our efforts and promote engagement.

36

Environmental Conservation and Climate Change Actions
Formulating an investment and lending policy
The Group has the Investment and Lending Policy for the Creation of a Sustainable Society.
Basic policy
Juroku Financial Group (the corporate group consisting of the Company and its consolidated subsidiaries) strives to contributeto medium- to long-term enhancement of corporate value and sustainable growth of customers by vigorously supporting
initiatives to resolve environmental and social issues through investment and lending.
Moreover, the Group strives to mitigate or avert the impact of investment and lending that may pose a significant risk or havea negative impact on the environment and society by subjecting any such investment and lending to meticulous consideration.
Investments and loans prohibited across all sectors
The Group will not invest in or extend loans to companies that are found to be directly or indirectly involved in human rights
violations, such as child labor, forced labor, or human trafficking.

Coal-fired power generation is said to emit more greenhouse gases and harmful substances than other power generation
methods, potentially leading to significant negative impacts on the environment, including climate change and air pollution.
The Group will not invest in or extend loans to projects that involve building new coal-fired thermal power stations or
expanding existing power generation facilities, while taking a prudent approach in considering exceptional cases in responseto emergencies or in projects in line with the Japanese government’s energy policy.

Inhumane
weapons
manufacturing

The Group will not invest in or extend loans to companies that manufacture weapons, regardless of fund usage, in view of theinhumane nature of cluster bombs, anti-personnel landmines, and biological/chemical weapons.

Palm oilplantation
development

While palm oil is a crucial raw material used in products essential to everyday life, the development of palm oil plantations
can have negative impacts on climate change, local residents and communities, and ecosystems, and may also lead to humanrights violations such as illegal logging and child labor.
For investments or loans related to palm oil plantation development, the Group will carefully consider the impact on thelocal economy and the environment, after assessing the clients’ efforts to address environmental and social concerns.

Deforestation

Large-scale deforestation could potentially have major negative impacts on climate change, local residents and communities,
as well as ecosystems.
The Group will not invest in or extend loans to projects that involve large-scale deforestation, illegal logging, or forest
incineration. Moreover, investment and loans where the funds are used for operations that involve deforestation will beconsidered carefully in view of their impact on the local economy and the environment.

<Metrics and targets>
CO2 emissions results (t-CO2)
Calculation item

FY2023

Direct emissions

1,488

1,347

Scope 2

Indirect emissions

6,020

6,153

7,508

7,500

Category 1

Purchased goods and services

14,234

14,761Category 2

Capital goods

3,976

7,199

Category 3

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

1,536

1,467

Category 4

Upstream transportation and distribution

1,839

1,857

Category 5
Category 6
Category 7

Waste generated in operations
Business travel
Employee commuting

64
192
3,193

50
236
2,940

With regard to CO2 emissions generated by the Group’s energy use (Scope 1 and 2), the Group originally set the goal to “halve CO2
emissions by FY2030 from the FY2013 level and achieve carbon neutrality by FY2050.” However, in September 2023, we revised
this target upward to achieve carbon neutrality by FY2030.

Achieve carbon neutrality by FY2023

CO2 emissions (Scope 1 and 2)(t-CO2)

14,00013,00012,00011,00010,000
9,000
8,000
7,000
6,000
5,000
4,000

13,11012,892
12,218

11,873

11,733

10,809
9,836

Preliminary figures

9,452(42.7%)
7,879

7,508

7,500
Carbonneutrality

FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2030TargetFY2023CO2 emissions in FY2023 were reduced by 42.7% compared to FY2013. By switching to LED lighting in stores and upgrading tohigh-performance air conditioning equipment, we were able to reduce electricity consumption by 3.5% compared to the previous
fiscal year. In addition to The Juroku Bank’s head office building, we have also introduced CO2-free electricity at The Juroku
Bank’s computer center building and administrative center building, as we strive to increase our renewable energy ratio. However,CO2 emissions only decreased slightly compared to the previous fiscal year due to an increase in the electricity emission factor (avalue published by electric power companies that indicates the amount of CO2 emissions per kWh of electricity used). We willcontinue to work toward reducing CO2 emissions by considering measures such as expanding the introduction of CO2-freeelectricity, introducing environmentally friendly stores, and converting our company vehicles to hybrid vehicles (HVs) and electricvehicles (EVs).

Roadmap to carbon neutrality
The roadmap for carbon neutrality is as follows. We will promote various measures to achieve carbon neutrality by FY2030.
FY2023
Scope1

FY2024FY2025

FY2026FY2027

FY2028FY2029FY2030Switching company vehicles to eco-friendly vehicles (from gasoline-powered vehicles to HVs and EVs)

Category 8

Upstream leased assets——

Implementing energy-saving measures (switching to LED lighting in stores, upgrading air conditioning equipment)

Category 9

Downstream transportation and distribution——

Category 10

Processing of sold products——

Converting our own contracted electricity to renewable energy (gradually expanding the number of locations where it is introduced)*

Category 11

Use of sold products——

Category 12

End-of-life treatment of sold products——

Category 13

Downstream leased assets

426

428

Category 14

Franchises——

Category 15

Investment (listed equity securities and Japanese corporate bonds)
Investment (business loans)

Total of Scope 3

37

FY2022

Scope 1
Total of Scope 1 and 2

Scope 3

Juroku Financial Group’s CO2 emissions reduction targets and results

TargetSector-specific policies
Coal-fired
thermal power
generation

For the emissions results for FY2022, we obtained independent third-party assurance for all Scope 1, 2 and 3 emissions to ensure
the reliability of the values, and have revised the figures from the previously published preliminary figures to the finalized values
for which assurance was obtained. The FY2023 results are preliminary figures, and we plan to obtain independent third party
assurance for those results.
With regard to Scope 3 Category 15 emissions, from FY2023, calculations are made for listed equity and corporate bonds, inaddition to business loans. Also, the emission factors used have been changed from FY2023 in accordance with therecommendations on emission factors published by PCAF. If the same emission factors are used as in FY2022, the emissions related
to business loans in FY2023 would be 7,994,579 t-CO2.

JUROKU Financial Group ANNUAL REPORT 2024—

353,201

9,011,285

3,153,964

9,036,745

3,536,103

Scope2

Planning and implementing environmentally friendly store introduction (achieving ZEB standards when relocating or rebuilding of sales offices)
Planning and implementing solar power generation equipment installation
Planning and implementing the use of PPA (on-site and off-site)

Carbon offset

Considering and implementing carbon offset introduction*We introduced renewable energy at The Juroku Bank's head office building in November 2021, at The Juroku Bank's computer center and administrative center building in
October 2023, and at 87 branches of The Juroku Bank and others in Gifu Prefecture in June 2024.

38

Environmental Conservation and Climate Change Actions<ESG-related External Evaluation>

Calculation of the CO2 emissions of investees and borrowers (scope 3 category 15)
Since indirect emissions (Scope 3 Category 15) through investments and loans account for a large share of CO2 emissions of financial
institutions, it is important to promote efforts to calculate, monitor, and reduce these emissions. The Group utilizes the PCAF
standard calculation method to calculate CO2 emissions for loans to domestic corporate clients.

CO2 emissions of investees and borrowers (Scope 3)CO2 emissions (t-CO2)
SectorListed equity andcorporate bonds

Oil & gas

Business loans

2,661

463,246

231,236

115,91096

33,287

Marine transportation

1,682

20,507

Land transportation

19,335

190,947

Automotive

8,729

25,626

Metals & mining

8,511

258,512

Electric power & utilities
Air transportation

5,967

99,844

Construction materials &capital goods
Real estate management &development

Chemicals

36,448456,872

330

4,629

Beverages & food

6,277

856,882

022,893459

76,386

Other

31,470528,423

Total applicable assets

353,201

3,153,964

Agriculture
Paper & forestry

Total

applicable assets

Listed equity andcorporate bonds

FTSE Blossom Japan Sector Relative Index

S&P/JPX Carbon Efficient Index

Business loans (loans todomestic corporations)

The Company has been selected as a constituent of the TSE Blossom

The Company has been selected as a constituent of the S&P/JPX

Japan Sector Relative Index.

Carbon Efficient Index.

*Excluding loans to borrowers
with insufficient financial data

The FTSE Blossom Japan Sector Relative Index is one of the ESG

The S&P/JPX Carbon Efficient Index uses the TOPIX, a

indices developed by FTSE Russell, a global index provider. It reflects

representative stock price index that shows trends in the Japanesethe performance of Japanese companies that excel in responding tomarket, as its universe. It determines the weighting of constituent

environmental, social and governance (ESG) issues within each sector.

stocks by focusing on the disclosure of environmental information andCO2 emissions = (Emissions of each borrower x Contributionof the Group’s loans)
CO2 emissions
calculation method

Data quality score3,507,165

the level of carbon efficiency.

<Participation in Environmental Initiatives>

Investment and loan balance
As of March 31, 2024
Financial and emissions data of investment and loan
recipients
Latest financial period data held by the Group as ofMarch 31, 2024

Reference date

Coverage* Emissions of each investment and loan recipient are calculatedusing Scope 1 and 2 data disclosed by the companies. When data isunavailable, estimates are made using the emission factors per unitof sales by developed country and sector from the PCAF database.
* Contribution ratio = The Group’s investment and loan balance /The investment and loan recipients total funding

1.5

3.6

90.1%
(Listed equity and bonds ofcalculation targets / Total oflisted equity andcorporatebonds)

98.0%(Loan balance of thecalculation target / Total loanbalance)

CDP Climate Change Program

Task Force on Climate-Related Financial Disclosures

We have received a “B” rating from CDP 2023, an international

In March 2022, we endorsed the Task Force on Climate-related

environmental non-profit organization that evaluates companies’

Financial Disclosures and are working to disclose climate-related risks

initiatives to address environmental issues. A “B” rating is the third-

and opportunities.

highest out of a total of eight ranks.

We will continue to work toward expanding the scope of CO2 emissions calculation and improving the data quality score.
The results of this calculation may change significantly in the future due to clarification of international standards, sophisticationof estimation, and other factors.

PCAF

Sustainable finance targets
The following targets are set on sustainable finances in order to support, through our core business, customers’ initiatives for solving
environmental issues and to contribute to achieving a decarbonized society.
Target amount for FY2030(cumulative for 9 years)

Sustainable finances providedof which, environment-related finances

Amount provided in FY2022

Progress rate

¥2 trillion¥459.4 billion

22.9%¥800 billion¥170.4 billion

21.3%

In March 2023, we joined the Partnership for Carbon Accounting

Principles for Financial Action Towards a
Sustainable Society

Financials (PCAF), an international initiative launched with the aim of

We have signed the Principles for Financial Action Towards a

standardizing the measurement and disclosure of greenhouse gas

Sustainable Society, led by the Ministry of the Environment. Throughemissions from recipients of investments and loans. We use thethe creation of a positive impact on the environment, society, andknowledge and database provided by PCAF to measure and disclose

economy, and supporting problem-solving efforts, we will fulfill our

the GHG emissions of investment and loan recipients.

responsibilities and roles necessary to creating a sustainable society.

GX League

Nature-related Financial Disclosure Task Force ForumIn April 2024, we participated in the GX League announced by the

In April 2024, we endorsed the efforts of the Taskforce on Nature-

Ministry of Economy, Trade and Industry.

related Financial Disclosures (TNFD) and participated in the TNFD

We support the GX League’s goal of achieving carbon neutrality by

Forum. Through our participation in the TNFD Forum, we will2050 in collaboration with government and academia, and we willcontribute to building a framework for disclosing nature-related

strengthen various initiatives aimed at carbon neutrality.

financial information.

Sustainable finances: investment and lending for SDGs / ESG initiatives that contribute to building a sustainable society
Environment-related finances: investment and lending for initiatives to reduce environmental impact

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JUROKU Financial Group ANNUAL REPORT 202440