Initiatives for Sustainability

Positioning of Major Sustainability Policies
The Group has established the Sustainability Policy as the basic policy for our sustainability-related initiatives and has establishedvarious policies regarding the “environment,” “society,” and “governance.”

Formulation of the Sustainability PolicyGroup Management Philosophy

The Group has formulated the Sustainability Policy as its basic policy for sustainability initiatives.

Sustainability PolicyGroup SDGs Declaration

Sustainability Policy
The Juroku Financial Group recognizes sustainability initiatives to be an
important management challenge. We will strive to solve various social issues
such as climate change through our core business of a “provider ofcomprehensive financial services to the region” and contribute to “achieving
growth and prosperity for our customers and the local community,” which is
our group management philosophy, while aiming at sustainable growth andenhancing the corporate value of the Group.
(*) Definition of sustainability: Creating a society that facilitates the growth and prosperity of customers and local communities, and passing
it over to future generations

Environment

Society

Governance

Environmental PolicyHuman Rights Policy(newly established in March 2024)

Code of Ethics(partially amended in March 2024)

Customer-oriented Business
Operation Policy

Basic Policy on
Corporate Governance

Investment and Lending Policy for the Creation of a Sustainable Society(partially amended in March 2024)

Compliance Policy

Procurement Policy (newly established in March 2024)

Procedures for Identifying Materiality

1[Identifying issues]
Identify multiple issues by considering SDGs, ESG(environment, society, governance), regional issues, etc.

Juroku Financial Group

SDGs Declaration
Juroku Financial Group, aiming to fulfill its management philosophy of “achieving growth and prosperity
for our customers and the local community,” is committed to working towards a sustainable society as acomprehensive financial group that builds a future with local communities and achieves sustainablegrowth with local economies.

Governance System for Sustainability
Various sustainability-related initiatives are deliberated at the Sustainability Council, which is chaired by the President.
The content of these deliberations is reported to the Board of Directors at least once every three months, and the Board ofDirectors supervises the activities of the Sustainability Council.

Key Challenges (Materiality)

23[Narrow down the priority issues]

Revitalization of thelocal economy

Narrow down the priority issues based on our management
philosophy, the business areas of each group company, thecharacteristics of the regions that are our operating base,and engagement with stakeholders

We will contribute to the growth of local
companies and revitalization of the local
economies by providing a wide range offinancial services that leverage theGroup’s management resources.

Sustainable developmentof the local community

We will work to create comfortable andappealing communities by utilizing local
resources and collaborating with local
governments to generate new value thatwill benefit future generations.

Empowerment ofdiverse human resources

We will promote diversity and work stylereforms to create workplaces where
diverse human resources can work andperform to their full potential with asense of fulfillment.

Environmental
conservation and climatechange actions

We will work to mitigate environmental
impact conserve the environment, andtake climate change actions by promoting
the adoption of renewable energy throughour business activities.

Advanced governance

We will enhance our governance andcompliance system to establish a soundand highly transparent management
structure.

[Identifying materiality]
Priority issues are grouped and the top five materiality
issues are identified and reported to the Board of Directors

Board of Directors

Creating the future of the region together

ReportSuperviseGroup’s Management Council

Deliberate
InstructSustainability Council
Chair by the President(Administration Office)Sustainability Management Office

Deliberate
ReportReportOverseeJuroku Financial Group

Sustainable BusinessWorking Group

Environmental Conservation
Working GroupD&I Working Group

Climate Change and
TCFD Working Group

Group Companies

27

JUROKU Financial Group ANNUAL REPORT 2024

28

Juroku Financial Group

Initiatives for Sustainability

SDGs Declaration

Juroku Financial Group, aiming to fulfill its management philosophy of “achieving growth and prosperity for our customers and thelocal community,” is committed to working toward a sustainable society as a comprehensive financial group that builds a futurewith local communities and achieves sustainable growth with local economies.

Addressing Key Challenges (Materiality)
Initiatives

Key challenges

Revitalizationof the localeconomy

Main Initiatives

Supporting business foundation and new businessStartup support by NOBUNAGA Capital Village

operations to foster future leaders of the local economy

Collaboration with local VCs and CVCs

Supporting local companies’ core business operations andStartup and venture support through NOBUNAGA21

management succession to contribute to their growth

Support for efforts to solve social and environmental issues

Supporting asset formation to achieve enriched living

New NISA initiatives

Sustainability KPIs
Item

March 2024 results(progress rate) *2*1
Sustainable finances¥2 trillion ¥459.4 billion
provided(including environment- (¥800 billion) (¥170.4 billion)
related finances)

Balance of Group assets
on deposit

Long-term proposals that fit customers’ life plans

Quantitativetarget¥550.0 billion ¥463.7 billion

22.9%(21.3%)

84.3%

Business

Business succession seminars

Sustainable
developmentof the localcommunity

Creating comfortable and appealing communities
Using local resources to create value that will benefit
future generations
Promoting digital transformation of local companies andlocal governments

Supporting local companies’ carbon neutral businessEnvironmental
conservation andclimate change
actionsmanagement
Implementing initiatives for environmental conservationand environmental impact mitigation
Responding to climate change and disclosing
information in line with TCFDManagement

Building a corporate culture that boasts diversity as aEmpowermentof diverse
humanresources

strengthImplementing work style reform to provide a good worklife balanceCreating workplaces that facilitate the growth of diverse
human resources and empower them omprehensive partnership agreement with Shirakawa Village, Gifu Prefecture,
Cfor regional revitalization
Support local businesses using food catalog gifts
Sustainable urban development through Kanda Machiokoshi
DX support consulting by Juroku Densan Digital Services
Initiatives toward cashless payments
Revitalize the local economy through cashless payments
Activities by the Juroku Foundation for Regional Promotion
Host the Economics Koshien Gifu Tournament
Support the promotion of sports
 resentation of case studies at the event commemorating the visit of the CEO ofP
the international environmental NGO CDP to Japan
Decarbonization consultingAwarded the Environment Minister’s Award for Best Practice (regional category)of the Principles for Financial Action for the 21st Century
Support for decarbonization by Juroku Lease
Expand the introduction of CO2-free electricity
Disclosure based on TCFD recommendations
Acquisition of external ESG evaluations
Participation in initiatives
Active appointment of women to managerial positions
New graduate recruitment
Job return system
Active personnel exchanges with different industries
Promotion of paid leave and reduction of overtime work
Promotion of healthy management
Return value to employees/improve financial wellness
Childcare supportHuman resource development policy, in-house environment improvement policy,and human resource development cycle
Human capital investment by expanding training opportunities
Expansion of the self-development qualification acquisition subsidy system
Development of IT/DX human resources
Skill guidelines
Career challenge system
Expert system

Cybersecurity management system

Advancedgovernance

Advancing corporate governance

Education and training

Strengthening risk management and complianceDialogue with shareholders

Achieving stakeholder engagement

Establishment of the Human Rights Policy
Initiatives in line with the Human Rights Policy*1

Social impactinvestments¥2 billion¥0.37 billion

18.5%

*1

DX-support
consultation cases

3,000 cases

403 cases

13.4%

CO2 emissions(vs. FY2013 level)100%
reduction

42.7%
reduction

42.7%

Paper use(vs. FY2019 level)

50%

33.5%

reduction

reduction

Ratio offemale managers

20%

9.1%

45.5%

Ratio of paid leaveclaimed

80%

54.7%

68.3%

8 times

400%

30 times

300%

Initial response training
for emergency
preparedness

Dialogue with investors

No less than
twice a year
No less than
10 times a year

67.0%

*1 Cumulative total from April 2022 *2 Progress rate is calculated by dividing March 2024 results by FY2030 target29JUROKU Financial Group ANNUAL REPORT 202430