Fuyo Lease Sustainability Website

2022
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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 through ESG
finance

Participation in Initiatives and ThirdParty Evaluation"Integrated Report"PDF download"Integrated Report 2022" (12366KB)"Consolidated financial statements 2022" (1334KB)
Other years' reports are here1

Editorial Policy

Independent assurance

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

For inquiries and comments regarding thesustainability activities, please contact:

Basic Policy for Prevention of Money Laundering, etc.

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Contents

Fuyo Lease Group's CSV

P4Solving Social Issues through Business

P22

Environmental Report

P41

Social Report

P64

Governance and Management

P104

Each Group Company's Environmental and Social initiatives

P132

Fund procurement through ESG ﬁnance

P157

Participation in Initiatives and Third-Party Evaluation

P168

Editorial Policy

P172

Independent assurance

p174

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Sustainability

Fuyo Lease Group's CSV

Fuyo Lease Group's CSV
Top Message
Our Thoughts on CSV

Basic Policy on Systems to Support Sustainable
Value Creation

Sustainability

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
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.

©

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Sustainability

Fuyo Lease Group's CSV

Top Message

Top Message
In anticipation of what society will be in 10 years, we aim to achievesustainable growth by simultaneously solving social issues andenhancing corporate value.

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

President & Chief Executive Officer Hiroaki Oda

Review of the Previous Medium-Term Management Plan
My name is Hiroaki Oda, and I'm honored to be appointed president & CEO of Fuyo General Lease Co., Ltd
The Fuyo Lease Group's five-year Medium-term Management Plan, Frontier Expansion 2021, marked its final year in fiscal
2021 (the fiscal year ended March 31, 2022). During this time, we achieved all of the plan's key management goals(ordinary profit, return on assets (ROA), and operating assets). Notably, ordinary profit showed a high average annual
growth rate of over 10%. These results were made possible by achieving improved ROA while also accumulating
operating assets. This achievement, in turn, reflected growth in businesses in New Domains such as non-asset
businesses like business process outsourcing (BPO) and the Mobility Business, coupled with the expansion of businesses
focused on Strategic Areas, which serve as our growth drivers. Moreover, I believe that the past five years marked aperiod in which our full-scale launch of inorganic strategies to maximize group synergies and CSV management to createshared value between society and companies enabled us to demonstrate, through our track record, that we could
achieve sustainable growth even in the financial industry, which has traditionally been regarded as a stable, low growth
sector.

Fundprocurement
through ESG financeParticipation in Initiatives
and Third-Party
Evaluation
Editorial Policy
Independent assurance"Integrated Report" PDF
download

Moving to a New Era by Aligning Directors' and Employees' Values, Judgment, andActions in the Same Direction
The Fuyo Lease Group's corporate slogan is "Go Where No One Has Gone Before." The Group has consistently
encouraged employees to embrace challenges under this slogan. This encouragement has grown into a powerful driving
force, resulting in the Group's impressive results. We used the launch of our new medium-term management plan tochart a course to "Go Where No One Has Gone Before." In order to share with all executives and employees, and toprovide a guide for moving forward, we have created our "Mission," "Vision," and "Values" as a new statement after
reviewing our past actions and experiences.

5Our Vision, or in other words our description of "What we want to become," states that we will become a group that
anticipates social changes and takes on the challenge of yet unseen issues; a group that is trusted by customers andworks together to solve social issues; and a group that grows with employees by supporting the challenges and growthof each employee. While realizing this Vision will take time, I'm confident that if every employee combines theirindividual aspirations with the Vision, we will get closer to realizing it little by little.
The new Medium-Term Management Plan, which I will now describe, will signal the start of this Vision. Through this plan,we will make steady strides toward realizing "what we want to become."

Fuyo Shared Value 2026 - A Medium- to Long-Term Growth Strategy Based on CSV
Our new Medium-Term Management Plan, Fuyo Shared Value 2026, fully embraces the Creating Shared Value (CSV)
approach, which aims to solve social issues through business while also enhancing corporate value. Fuyo Shared Value
2026 is Fuyo Lease Group's new growth strategy - one that aims to achieve sustainable profit growth through thebalanced pursuit of financial goals (corporate value) and non-financial goals (social value).
In anticipation of what the world will be in 10 years, we constantly consider what we will need to accomplish as acompany to solve social issues. We developed strategies for each business domain using a backcasting approach that
focuses on what we will need to have accomplished five years from now, which is at the midway point of our 10-year timeframe. We set up two fields that represent the social value that we should realize as we enhance our corporate value
through our businesses. The two fields are "Environment" and "Society and People."

6

Environment
In the environment field, the most important issue is the realization of a decarbonized society, so massive investment,
including the development of renewable energy, is expected. In the U.S., investments between several ¥10 trillion and¥100 trillion are anticipated over the next 10 years, whereas in Europe investments to double the renewable energy ratio(on a power mix basis) from its current level to 65% will be needed in 2030. Even in Japan, the public and private sectors
are expected to invest around ¥150 trillion yen over 10 years to achieve greenhouse gas emissions targets,*1 and it isuncommon for a single theme to drive the economy on such a vast scale. Furthermore, initiatives will be accelerated,such as those to store electricity in order to use renewable energy effectively and efficiently. The Group sees this external
environment as a business opportunity and will invest more than ¥300.0 billion in the promotion of decarbonization over
5 years. We will advance the renewable energy power business worldwide, increasing our renewable energy power
generation capacity by more than 3 times the current level to 1,000 MW. Moreover, in the field of energy management,
we will work intensively on priorities such as promoting the widespread adoption of electric vehicles (EVs) by developing
package solutions that encompass chargers and storage batteries. Naturally, we will also continue to advance theGroup's carbon neutrality efforts (achieve carbon neutrality and RE100*2 in 2030).
Furthermore, we will increase our efforts to realize a circular society in order to build a sustainable world. The Group, as
the owner of numerous lease assets, connects the forward logistics of economic supply responsible for the production
and sale of products, and the reverse logistics of economic collection that recycle and reuse products after they havebeen used. In collaboration with partner companies, we will strive to realize a circular society by launching a circular
economy platform that generates economic benefits by facilitating the circulation of resources.
*1 To achieve carbon neutrality by 2050, the Japanese government announced in April 2021 a target for a 46% reduction in greenhousegas emissions by fiscal 2030 (compared to fiscal 2013).
*2 RE100 is an abbreviation comprised of the initial letters of "Renewable Energy 100%." It is an international corporate partnership
whose members intend to procure all of the electricity they need for their business operations from renewable sources. The Company
joined in 2018 and aims to achieve RE100 and become carbon neutral by 2030 for the Group.

Society and People
In the field of Society and People, addressing the shrinking labor force and improving productivity are important themes
to society. We always hear about problems in this area when we speak with our customers. In fact, the COVID-19
pandemic has altered work styles and demand for business process outsourcing (BPO) has been increasing. Customers
will need to address issues such as the so-called 2024 problem*3 in the logistics industry. Therefore, demand forsolutions to improve business efficiency will only continue to increase. The Group will promote a total solution that it has
named a business process service (BPS), which links BPO and information and communication technology (ICT). In
addition to BPO, the Group will offer proposals for fundamentally improving business efficiency through the replacementof whole business systems. Moreover, the Group intends to provide Environmental BPS as a service. This service will use
BPS to support companies' decarbonization initiatives and disclosure of related information.
In the Medical & Welfare field, one priority is that as society continues to age, it will be absolutely critical to maintain andimprove the community healthcare system. The Group will provide Healthcare BPS, which will combine traditional
healthcare and BPS, by offering BPO services for medical office work and by promoting improved efficiency using ICT.
The Group will support the effective utilization of management resources by healthcare providers to contribute to thedevelopment of a dependable community healthcare system.
Additionally, the Group has supported the advancement of innovation by investing in more than 20 startups to date. In
the future, the Group will continue to collaborate with startups that will play a key role in solving edgy social issues.
The Group will continuously meet the expectations of society, customers, and business partners by providing solutions
to the important social issues described above. Concurrently, these efforts will also present the Group with major
earnings opportunities, so we have positioned these business domains as growth drivers and will intensively allocate
management resources to each of these growth drivers.
Throughout the process of formulating the Medium-Term Management Plan, we held many discussions with outside
directors and we gained insights from their many and varied opinions and viewpoints. In addition, the entire Board of
Directors agreed on a shared medium- to long-term strategy based on CSV, and non-financial indicators were developed
and adopted as evaluation criteria for directors' performance-linked remuneration from the current fiscal year. The
Group's directors and employees will work as one to meet both financial and non-financial targets.
*3 The 2024 problem refers to a wide range of issues that are expected to arise in the logistics industry when work style reform laws, suchas regulations limiting overtime work, go into effect. Transportation companies will need to limit truck drivers' extended overtime
hours and implement measures to improve productivity by improving business processes even more than before.

Nurture People Who Create Sustainable Value and Foster Relationships with
Customers
7

People are crucial to creating sustainable value. The Fuyo Lease Group is a non-manufacturing business, so it doesn't
necessarily possess cutting-edge technologies or game-changing products. The main thrust of its value creation process
is for employees to listen carefully to customers and obtain hints from such dialog, identify customers' true needs, andthen create and provide solutions. It is crucial that employees ensure that the first instance of value creation builds therelationship with the customer and earns their trust, and thus leads to the next instance of value creation, thereby
generating a positive cycle. By repeating this process, the customer relationship will evolve into an even stronger
partnership.
To make this happen, we will focus on investment in human resources and work in earnest to support the growth of
employees. We will provide as many opportunities as possible for training so that employees can identify and solve theissues they need to overcome to attain personal growth. To do so, the Company will prepare the necessary training
program and create a framework that facilitates participation in the training. The sub-heading of our Medium-Term
Management Plan contains the phrase "through human growth and dialog." In keeping with this phrase, we will support
human growth, while further deepening our customer relationships through dialog with customers. Through these
efforts, we will strive to create sustainable value.
Another key is digital transformation (DX). DX is most effective when it visualizes issues and harnesses data. We will strive
to raise the sophistication of business processes using digital technologies to rapidly propose solutions that better fit
customer needs. We will supply valuable solutions that combine the capabilities of people and DX, with a view tofostering strong relationships with customers.

Towards Achieving Sustainable Corporate Growth
In these times of major upheaval, we have not only seen the emergence of the COVID-19 pandemic and geopolitical risks,
but we could also experience events that are even more unexpected in the near future. The path to realizing our vision
for "what we want to become" is by no means smooth and straight. It is essential that we constantly overcome newproblems that will arise along the way by constantly formulating hypotheses, taking action and verifying those actions,as we continually anticipate social changes and refine our problem-solving skills. The Fuyo Lease Group is determined toceaselessly come up with ways to deliver value, with a view to creating an even better society. Through these efforts, we
aim to achieve sustainable growth as an enterprise, and we will constantly enhance our capabilities so that we can serve
society as a reliable and trusted partner.
Looking ahead, we will continue to ambitiously expand new business domains and create value as we endeavor to
realize a prosperous society and sustainable growth.

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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

Fundprocurement
through ESG 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.

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

Participation in Initiatives
and Third-Party
Evaluation
Editorial Policy
Independent assurance"Integrated Report" PDF
download

4. Contributing to the Community
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.
9

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.

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Fuyo Lease Group's CSV

Our Thoughts on CSV

Our Thoughts on CSV
Practicing management based on CSV
The Fuyo Lease Group focuses on the concept of Creating Shared Value (CSV): achieving the sustainable growth of theCompany by solving social issues. In practicing CSV, we believe it is important to deliver both corporate value (corporate
profits) and social value (solving issues), and to build structures (for human resources, organization, and governance)that will support the sustainable generation of both values. We are engaged in a range of initiatives aligned with thesepriorities.

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

We used the launch of our new Medium-Term Management Plan Fuyo Shared Value 2026 as an opportunity to redefine
our material issues (important issues to be addressed). We considered potential issues by backcasting from our vision of
10 years into the future, in 2030, to identify the greatest social value creation needs and then determining whether there
were any areas in which the Group can create business opportunities by responding to these needs. We will strive toachieve the KPIs we have set for each issue while actively disclosing information to encourage our stakeholders'
understanding and cooperation as we accelerate our activities.
In addition to our expertise in finance cultivated in the lease business, we will also utilize our strengths in a wide range offields, including Energy & Environment, Circular Economy, BPO/ICT, Mobility, and Medical & Welfare. By combining thesestrengths, the Group will work as one, aiming to solve social issues through its businesses.

"Integrated Report" PDF
download

CSV Promotion System
In October 2020, we established the CSV Promotion Committee to promote CSV and sustainability efforts in a crosssectoral Group-wide manner. It comprises the main general managers from the Corporate Division, as well as generalmanagers from the Sales Division with authority over each business domain. Matters discussed by and reported to theCommittee are submitted to the Executive Committee, and then reflected in the Group's strategy upon approval.
The Group's overall policy involving CSV and promotion status, will be reported to the Board of Directors at least once a
year in an effort to enhance their effectiveness.
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Major Matters Discussed in the CSV Promotion Committee
In addition to discussing and receiving reports on matters important for the promotion of CSV, the CSV Promotion
Committee produces non-financial targets and plans and monitors progress against those targets and plans. In fiscal
2021, the committee held three meetings during which it discussed and received reports on the development of a basic
policy for systems that support sustainable value creation, progress against non-financial and environmental targets,and the setting of non-financial targets in the new medium-term management plan, among other items.

Major discussions and reports in fiscal 2021
2nd

Development of the value creation story
Organization of a set of material issues
Reports on progress against non-financial targets and environmental targets

3rd

Development of a basic policy on systems that support sustainable value creation

4th

Setting of non-financial targets in the new Medium-Term Management Plan (Fuyo Shared
Value 2026)
Review of progress against non-financial targets and environmental targets

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 2020, Fuyo General Lease held a series of CSV training programs (“Let’s CSV!”) for all employees.
In fiscal 2021, the Group held the series for all employees of the Group. In the series, all employees of the Group took an
e-learning course and then participating in a “workshop to think about connections between your work and CSV.” In theworkshop, heads of departments, offices and branch offices acted as instructors. In the CSV training, employees becameaware of what kinds of value they can provide to customers and communities through their work. Certain Group
companies posted images of internal workshops on the intranet. Interest in CSV has increased in Group companies.
12

Images of a workshop at NOC that were posted on the company intranet

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Sustainability

Fuyo Lease Group's CSV

Materiality

Materiality
In order to realize a sustainable society, the Fuyo Lease Group has identified issues to be solved through the Group'sbusinesses as Material Issues (important issues to be addressed), taking into consideration each issue’s impacts onsociety and stakeholders with reference to the SDGs proposed by the United Nations. We have since used the launch of
our new Medium-Term Management Plan Fuyo Shared Value 2026 as an opportunity to redefine these material issues,
which are important issues to be addressed to create social value through our business, and set new KPIs and targets tobe achieved by fiscal 2026. We will advance initiatives to address the material issues as part of efforts to realize asustainable society and the sustainable growth of the Group by resolving social issues while at the same time delivering
economic value.

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.

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 finance

STEP 2 Considering important issues
We then backcasted from our vision of 2030 to identify the greatest social value creation needs and determine
whether there were any areas in which the Group can create business opportunities by responding to theseneeds.
This enabled us to define the important issues (material issues) to be addressed through Fuyo Shared Value
2026.

Participation in Initiatives
and Third-Party
Evaluation
Editorial Policy
Independent assurance"Integrated Report" PDF
download

STEP 3 Deciding on non-financial KPI
After determining specific material issues, workplaces and members of upper management discussed which
non-financial KPI are the most appropriate for monitoring progress on addressing them. The Board of Directors
then decided which of KPI will be used.

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
14

3. Delivery of reassurance by ensuring health and welfare
4. Creation of new value creation time
5. Value creation through partnerships
6. Strategic human resources development
7. Diversity and inclusion
8. Health and productivity management, work-life balance

KPIs and Targets of Materiality (Creation of Social Value throughBusiness Activities)
Environment
1.Contribution to the realization of a decarbonized society
CSV1:Energy & Environment
CSV4:Mobility
Non-Financial KPI

FY2026 Targets

Supplemental

500,000 t-CO₂

The estimated reduction in
CO₂ emissions achieved
through the provision offacilities and services that
contribute to decarbonization.

Amount invested in promoting
decarbonization

Total of ¥300.0 billion
over five years

The total of capital
expenditure related to theprovision of facilities andservices that contribute todecarbonization as well as
investment in and loans tobusinesses that contribute todecarbonization, etc.

Renewable energy generation
capacity*1

1,000MWFY2021 result was 318 MW.

Percentage of Group vehicles
that are EVs or FCVs

30％

Percentage owned by Fuyo
Auto Lease

Total of ¥10.0 billion
over five years

The cumulative result for
FY2019-2021 was ¥6,460
million.
¥10.0 billion is a cumulative
target for the five-year period
from FY2022-2026

Contribution to CO₂ emissions
reduction

Amount of financing handled
for the promotion of
decarbonization*2

Relevant
SDGs

2.Contributing to the realization of a circular society
CSV2:Circular Economy

15

Non-Financial KPI
Percentage of returned items
that are reused or recycled
Percentage ofmaterials/chemicals containedin waste plastics (fromreturned items) that arerecycled*3

FY2026 Targets

Supplemental

100％

FY2021 results were 100% for
PCs and 95% for other items.
Under the new medium-term
management plan, the target
covers all returned items.

100％

Excludes thermal recovery*4.
The percentage of Material andchemical recycling*3 that willcontribute to a reduction in
CO₂ emissions or resource
recycling.

Relevant
SDGs

Society and people
3.Delivery of reassurance by ensuring health and welfare
CSV5:Medical & Welfare
Non-Financial KPI

FY2026 Targets

Supplemental

Number of new rooms
provided at elderly care homes

Total of 1,000 rooms
over five years

The number of rooms createdthrough building leases for
elderly care homes

56.0 billion

The balance of operating
assets for financing related to
FPS Medical (factoring for
medical andnursing care receivables by
Accretive) and businesssuccession. The FY2021
balance related to
FPS Medical was ¥23.3 billion.

Management support-related
financing in medical andwelfare markets¥

Relevant
SDGs

4.Creation of new value creation time
CSV3:BPO/ICT
Non-Financial KPIWork hours saved by ourcustomers

FY2026 Targets

Supplemental+1 million hours
compared to FY2021

In FY2021, we provided BPO
services to 20,134 companies.
Under the new medium-term
management plan, hours
saved at customer companies
through the provision ofservices will count toward thetarget.

Relevant
SDGs

5.Value creation through partnerships
16Non-Financial KPI
Investment in venturecompanies that havetechnologies and services thatwill create new social value

FY2026 Targets

Supplemental

No quantitative target

Investment in start-up
companies that are working tosolve social issues, primarily inbusiness areas positioned as
growth drivers.

Relevant
SDGs

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

FY2026 Targets

Supplemental

300% compared to
FY2021

FY2021 result was ¥74.0
millionFY2026 Targets

Supplemental

Relevant
SDGs

7.Diversity and inclusion
Non-Financial KPI
Percentage of female
employees in management
positions (non-consolidated)

35％

FY2021 result was 29.5%.

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

100％

FY2021 result was 110%.

Relevant
SDGs

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

FY2026 Targets

Supplemental

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

100％

FY2021 result was 86%

Rate of taking annual paid
leave (non-consolidated)

90％

FY2021 result was 82.3%.

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

No quantitative target

A system enabling employees
to select one Friday of eachmonth to work only a half day

Percentage of improvement inengagement indicators(consolidated)*5

No quantitative target

In FY2021, the percentage of
employee satisfaction toward
work*5 was 85.9%

Relevant
SDGs*1 Covers investments made in the Renewable Energy Generation Business, project financing, etc. (power generation capacity is
calculated based on ownership ratio or share)17

*2 Covers the Fuyo Zero Carbon City Support Program and the Fuyo 100% Renewable Electricity Declaration Support Program*3 Material recycling: Waste that is reused as a raw material. Chemical recycling: Used resources that have their compositions alteredthrough chemical reactions and are then recycled.
*4 The recovery and reuse of thermal energy generated by burning waste.
*5 Percentage of employees who rated at least one out of six job satisfaction questions as four or above (on a scale of one to five) in the
Employee Satisfaction Survey

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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.

Sustainability
Fuyo Lease Group's CSV

Stakeholder Dialogue
We believe that communicating with stakeholders is the key to accurately understanding various social issues and therole we are expected to play. We see communication as the bridge that brings us closer to stakeholders, and we use it toensure that we live in harmony with people from all walks of life.

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

Customers

Our management philosophy is “we maintain customers first philosophy,
providing the best services.” In putting that philosophy into practice, we work
to enhance the level of satisfaction of all our customers.

Suppliers and partners

We work together with suppliers, business partners, and vendors to build andmaintain fair and equal relationships that serve as fertile ground upon which
everyone involved can grow.

Shareholders

Our basic policy is to return stable profits to shareholders on a long-term basis.
We also disclose information in a timely, appropriate, and fair manner toensure the transparency of our operations.

Industry organizations andcompetitors

We work with competitors to enhance business, improve services, and share
information through, for example, participation in industry associations.
19Communities and NPO

We value communication with people, companies, NGO/NPO and otherorganizations not only in the areas where we operate but also with a host ofcommunities that lie beyond, and engage in community-based activities as a
responsible corporate citizen.

Natural environment

To address environmental issues, we actively implement environmental
initiatives through our business activities and strive to minimize ourenvironmental footprint.

National government,
administrative authorities, etc.
Financial institutions
Employees and their families

We maintain appropriate relationships with the government of Japan, relevant
ministries and agencies, and local governments. We also maintain soundrelationships with the governments and administrative authorities of countries
where our overseas subsidiaries operate.
We raise funds necessary for our operations by maintaining strong
relationships of trust with financial institutions.
We strive to create comfortable and secure workplace environments for all
employees and support the realization of self-sustaining work-life balances toenhance the quality of both life and work.

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.
20Anti-Corruption

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

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Sustainability

Solving Social Issues through Business

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

CSV1:Energy and Environment

CSV2:Circular Economy

Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement

CSV3：BPO/ICT

CSV4:Mobility Business

Each Group Company's
Environmental and Social
initiatives
Fundprocurement
through ESG finance

CSV5:Medical & Welfare

Products and services that contribute to the achievement of adecarbonized society

Participation in Initiatives
and Third-Party
Evaluation
Editorial Policy
Independent assurance"Integrated Report" PDF
download

We are actively promoting energy conservation, renewable energy, and the creation of new energy for the future throughleasing and financing. We are helping customers to decarbonize by developing a wide range of businesses that promoteenergy conservation and renewable energy.

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

22

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 ProgramThis is a finance program that supports the installation of renewable energy and energy-saving facilities in areas
promoted as “Zero-Carbon Cities” by the Ministry of the Environment.
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

Agri BusinessWe provide finance services that reduce the initial investment burden for businesses responsible for next-generation
agriculture. We also operate one of the largest plant factories in Japan.
Click here for details

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).

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
23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

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.

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

Building Leases

We handle building leases for warehouses and distribution centers.
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.

24

Click here for details

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

Products and services that contribute to solutions for challenges in the
Medical & Welfare 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.

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Sustainability

Solving Social Issues through Business

CSV1:Energy & Environment

CSV1:Energy & Environment
Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement* Affiliations and titles are as of August 2022

Growth Strategies
2030 Goals
Serve as a global company that helps give rise to a decarbonized society by engaging in energy-related businessdomestically and overseas
Serve as a frontrunner that contributes to resolving environmental issues in breaking ground in the new Energy &Environment business domain

Fuyo Shared Value 2026

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

We seek to help resolve social issues and contribute to decarbonization with respect to society overall and our customers
by actively promoting energy conservation, renewable energy, and newly created forms of energy going forward.

Fuyo Shared Value 2026 Strategies for Achieving Our Goals
1. ¥300.0 billion investment in promoting decarbonization
We aim to invest a cumulative total of ¥300.0 billion over the five years of the medium-term management
plan in the Energy & Environment domain in helping to achieve a decarbonized society particularly withrespect to renewable energy and energy conservation.
2. Expansion of renewable energy supply
We will strive to expand the supply of renewable energy available to society by promoting renewable energy
development and renewable energy generation business on a global scale through coordination withstrategic partners both in Japan and overseas. In so doing, we aim to contribute to climate change initiatives
targeting 1,000 MW of renewable energy power generation capacity.

26

3. Challenges in new domains
We will take on challenges enlisting our new business model geared to seeking expansion and creation amid
structural transformation in the energy industry. This will involve initiatives that include developing thestorage battery business and participating in the supply-demand adjustment market.

TOPICS
Left to rightYasushi Sekihara, General Manager of Renewable Energy Business
Division
Hideki Oka, General Manager of Energy & Environment Business
Division* Affiliations and titles are as of August 2022

1. Participating in Offshore Wind Power Generation Project Overseas
At the end of May 2022, the Company became involved in an offshore wind power generation project in the United
Kingdom for the first time through investment in the “Equitix MA 21 LP” investment fund targeting offshore wind farmprojects in the United Kingdom.
Our participation in the UK offshore wind power generation business through investment in the fund enables us to gain
expertise in terms of the latest industry trends and the offshore wind power generation business in the United Kingdom.
This in turn makes it possible for us to help bring about development of the energy industry, which is likely to encounter
major changes going forward, and contribute to achieving a decarbonized society.

2. Participating in Large Power Grid Storage Battery Project Overseas
The Company has taken part in a project involving large storage batteries for an approximately 100 MW power grid in the
United Kingdom, led by Nippon Koei Energy Europe B.V., a wholly owned subsidiary of Japan’s largest general
construction consultancy Nippon Koei Co., Ltd.
The project will contribute to power grid stabilization by providing the power grid operator with power grid stabilization
services using storage batteries in connecting to the power transmission and distribution network operated by National
Grid, a major power transmission company in the United Kingdom.
In addition to investing in the project, the Company will engage in financing as a senior lender, which will involvearranging project finance using the operating revenue generated by the large power grid storage battery project as thesource of repayment. This constitutes the first time the Company has ever taken part in a large storage battery project.
In Japan as well, we will engage in initiatives looking toward the successively expanding supply-demand adjustment
market as we continue to extend our business domain in conjunction with our alliance partners, drawing on knowledge
we gain through our participation in the project under the leadership of Nippon Koei, which has an extensive trackrecord.

3．Facilitating Decarbonization of Companies and Other Organizations in the Zero
Carbon City
In 2020, we launched the “Fuyo Zero Carbon City Support Program” to facilitate decarbonization efforts of municipalities
that serve as zero-carbon cities in having declared their intent to achieve “net zero CO2 emissions by 2050.” Thus far, ourzero carbon city support program has been used by customers representing more than 250 organizations located in 31
27

prefectures and other municipalities throughout Japan.
We have been making use of 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. Moreover,
we have been taking a multifaceted approach to addressing climate change also by contributing the equivalent of 0.2%
the value of contracts jointly with our customers to public interest incorporated foundations, NPOs, and other such
entities.

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Sustainability

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CSV2:Circular Economy

CSV2:Circular Economy
Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement* Affiliations and titles are as of August 2022

Growth Strategies
2030 Goals
Serve as a Circular Economy infrastructure companies that transcends the leasing businessContribute to achievement of Japan as a recycling-oriented nation through our Circular Economy businessFuyo Shared Value 2026
We believe that “the leasing business connects the forward logistics and reverse logistics value chains of resources and isa core domain for the realization of the circular economy.” Given that the notion of achieving a circular economy
approach hinges on building various networks, we create opportunities for customers to readily take part in resource
recycling through our leasing network. We seek to engage in Creating Shared Value (CSV) business practices by creating
new value through a circular economy approach.

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

Fuyo Shared Value 2026 Strategies for Achieving Our Goals
1. 100% reuse and recycling of lease assets upon its return
We aim to achieve 100% reuse and recycling of lease assets returned to the Company’s business locations inorder to promote resource recycling initiatives through our leasing business. With the aim of achieving
advanced resource recycling, we also engage in efforts that involve maintaining various forms ofinfrastructure related to reuse and recycling and developing channels for resource recovery.
2. 100% recycling of waste plastics
Waste plastics constitute one form of waste that adversely affects society given the substantial emissions
volume attributable to such waste and difficulty in recycling it. Thermal recovery (conversion to fuel) serves
as the primary method of recycling such waste in Japan, but the method poses cause for concern given that it
is not regarded as means of recycling under global standards because it yields CO2 emissions during the
combustion phase. To achieve a 100% recycling rate of waste plastic from returned properties through29

"material recycling" and "chemical recycling, we repeatedly perform proof-of-concept testing on a daily
basis.

TOPICS
Left to rightYasushi Mizuta, Executive Officer and General Manager ofCircular Economy Promotion Division
Yumiko Yoshihara, President & Chief Executive Officer, FGL
LeaseUp Business Service Co., Ltd.
Takashi Nakamura, President & Chief Executive Officer, FGL
Circular Network Co., Ltd.
* Affiliations and titles are as of August 2022

1．Launch of New Organization to Help Achieve a Circular Economy Approach
A circular economy is an economic system whereby the generation of waste is minimized by preserving and maintaining
the value of products and resources for as long as possible. We are accordingly building a new business model geared toenabling a circular economy approach through our leasing business, serving as a leasing company that handles various
types of tangible property.
In April 2022, the Fuyo Lease Group substantially restructured the organization with the aim of further accelerating its
Circular Economy initiatives. This involved launches of the Circular Economy Promotion Division to take on the planning
function of the head office , FGL LeaseUp Business Service Co., Ltd. for the purpose of promoting advancement of lease
expiration affairs and resource recovery, and FGL Circular Network Co., Ltd. as a functional subsidiary responsible for our
Circular Economy operations.
The Fuyo Lease Group will work in conjunction with the three units in carrying out our Circular Economy business andcreating new value.

2．Providing Services That Enable Customers to Participate in the Circular Economy
through Leasing
The notion of the circular economy is often discussed from a corporate social responsibility perspective and is still notoften talked about in terms of serving as a business. Commercialization hinges on creating mechanisms for promoting
resource circulation and simultaneously producing economic benefits. Fuyo Lease Group seeks to achieve extended
product life and better resource recycling, which are cornerstones of its Circular Economy business. This will involve
prompting more widespread availability of mechanisms for leases with return conditions (return conditions that take30

effect upon lease expiration). Specifically, we are developing and expanding our range of lease products (lifecycle
management services) encompassing services under contract involving lifecycle management (LCM) of repair, reuse, andrecycling.
Although it tends to be difficult for a company to engage in the circular economy on its own, our customers are able totake part in product lifecycle management aligned with Circular Economy aims by using such lease products. We willencourage our customers to use such services given that they are highly beneficial to society.
First, we have launched our PC Lifecycle Management (PC-LCM) Service equipped with such features with respect topersonal computer operations. Going forward, we will consider the option of more widely providing the service withrespect to applications that include forklifts and medical equipment. We are enlisting the cooperation of our customers
in making steady progress with respect to developing infrastructure and building networks for achieving a circular
economy approach.

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CSV3:BPO/ICT

CSV3:BPO/ICT
Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement

Growth Strategies
2030 Goals
Become a leading company in Business Process Service (BPS)
Serve as the most trusted company for customers struggling to address the serious shortage of IT professionals

Fuyo Shared Value 2026
Corporate management is being called on to increase operational productivity by overhauling non-core operations andundertaking DX of tasks against a backdrop of companies enterprises encountering the need to address intensifying
labor shortages and implement work-style reforms. Fuyo Lease Group accordingly helps customers transform theiroperations in terms of both their operations and systems by providing total solutions in the form of BPS that enlist
operational outsourcing and DX.

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

Fuyo Shared Value 2026 Strategies for Achieving Our Goals
1. Making Time for Customers to Create New Value
By providing business process outsourcing (BPO) services and facilitating DX, we aim to achieve a reduction
in customer workloads in terms of work hours by a cumulative total of one million hours in the final fiscal
year of the medium-term management plan relative to actual work hours in FY 2021. We will help ourcustomers make time for creating new value, thereby helping them increase productivity while also
contributing to corporate work-style reforms and greater job satisfaction among all employees.
2. Providing BPS linking BPO and ICT
We provide total solutions with respect to BPS ranging from upstream to downstream by combining productswith operational outsourcing and consulting related to DX. By expanding the BPO service menu andproviding services tailored to the corporate scale of the client, we will realize benefits such as increased
operational efficiency and focus on core businesses.
3. Digital Transformation of customers supported by Fuyo Lease Group Companies with Strengths in DX
Having become a subsidiary of Fuyo Lease Group in October 2021, WorkVision serves as a DXaccredited
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enterprise that proposes solutions to customers tailored to their needs involving use of packaged cloud
products, based on its in-house experience developing DX initiatives. It accordingly resolves management
challenges encountered by customers, including the shortage of IT professionals and transformation of theirbusiness models.

* DX Certification logo: WorkVision obtained Digital Transformation Certification in December 2021.

TOPICS
Left to right
Yuji Kawasaki, General Manager of BPO Service Promotion
Division
Kiyoshi Nii, General Manager of ICT Solution Business Division* Affiliations and titles are as of August 2022

1．Providing Business Process Service (BPS)
Total solutions through “Outsourcing + DX” of business operations DX
Outsourcing (Business Consulting and Solutions)
Our BPO services that make up our BPS encompass a wide range of services that meet diverse needs of general affairs,
accounting, personnel, and information system departments. Meanwhile, we have been building a framework thatenables us to provide such services working in partnership with INVOICE, NOC, and other Group companies. Our totalsolutions based on consulting provide a means of addressing the labor shortage and contending with work-stylereforms.

DX (Systems Consulting and IT Solutions)
We have assembled a menu of options for taking an information and communications technology (ICT) perspective in
addressing management challenges such as the shortage of corporate IT professionals. Through our comprehensive ICT
outsourcing company FGL Techno-Solutions Co., Ltd., we undertake non-core operations involving our customers’
personal computers and provide support for having information system departments place their focus on core
operations.

2. Providing Solutions through Alliances
Fuyo Lease Group and NTT Communications Corporation
We offer comprehensive services that entail undertaking a whole series of billing operations by combining theBConnection Digital Trade cloud-based invoice digitization service provided by NTT Communications with the digitized
BPO and accounting BPO services provided by NOC.

33

Fuyo Lease Group and Dynabook
Our dynabook Package personal computer lifecycle management (LCM) package-based service, offered in partnershipwith Dynabook, provides one-stop services available for a fixed monthly fee encompassing everything from PC
installation to operations management, maintenance, and replacement.

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Sustainability

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CSV4:Mobility Business

CSV4:Mobility Business
Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement* Affiliations and titles are as of August 2022

Growth Strategies
2030 Goals
A mobility solutions provider that solves social issues, including climate change issues, in the areas of general vehicles
and logistics

Fuyo Shared Value2026
In the general vehicles area, we will contribute to solving social issues, including climate change issues, by promoting the
introduction of electric vehicles (EV) and fuel cell vehicles (FCV), which are expected to rapidly become widely used, andby realizing social application of technological innovations such as CASE and MaaS.
In the logistics area, we will utilize Group synergies to provide solutions for a wide variety of issues facing customers,
including the need for more efficient distribution accompanying increases in cargo volumes, as well as personnel
shortages.

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

Fuyo Shared Value 2026 Strategies for Achieving Our Goals
1. Electrification of general vehicles and advancement of next-generation mobility
In addition to introducing EV leases, we will also provide one-stop EV services that offer total support foraddressing the various management and operational issues that accompany these leases. This willencourage customers to choose EV for their lease vehicles. We will contribute to the realization of adecarbonized society by aiming to have EV and FCV account for 30% of the operating assets (vehicles) owned
by Fuyo Auto Lease by the end of fiscal 2026. We will also actively engage the next-generation mobility field,
which includes autonomous driving, by advancing the realization of next-generation transportation options
together with partner companies.
2. Total support for the logistics industry
We will leverage the transportation and logistics industry knowledge possessed by YAMATO LEASE to advancevarious initiatives, including providing diverse support concerning the remedying of long working hours for35

drivers and promotion of workstyle reforms, and addressing customer’s business succession needs. We will
also contribute to solving logistics industry issues by providing consulting services covering the building of
new warehouses and the installation of logistics equipment during new renovations of existing warehouses,
as well as various financing schemes.
3. Business collaboration with the Yamato GroupWe are working through YAMATO LEASE to establish a business collaboration with the Yamato Group. This
will include leveraging our expertise to develop and deliver a range of solutions to a wide range of supply
chain issues.

Fuyo Lease Group’s Mobility Business

TOPICS
Left to right
Yoshinobu Nagano, President & Chief Executive Officer, Fuyo
Auto Lease Co., Ltd.
Hirotoshi Tadokoro, General Manager of Mobility Business
Promotion Division
Naomi Ogata, President & Chief Executive Officer, YAMATO
LEASE CO., LTD.
* Affiliations and titles are as of August 2022

1．Contributing to the Realization of Decarbonized Society(Solving social issues
associated with EV)
When a company decides to introduce EV, it has to address a variety of issues, from the lifecycle management of its
current gasoline-based vehicles to the establishment of recharging infrastructure, review of power supply agreements,and energy management. We are working with partner companies to establish a framework for providing one-stop
solutions to these diverse issues (one-stop EV services), with the aim of supporting companies that want to introduce EV.

36

2．Autonomous Driving (Participating in three proof-of-concept tests)
Japan is seeing changes in its social structure—including a declining birthrate, aging population and the concentrationof population in urban areas— which is leading to the emergence of a variety of social issues related to mobility, such as
ensuring freedom of movement, revitalizing local communities, and reducing environmental impact. Expectations arefocused on autonomous driving as one means of solving these kinds of issues and in order to facilitate its early
implementation, in June 2021, the Group entered into a business alliance with MACNICA, Inc. to advance social
applications of autonomous driving. Since then, we have participated in proof-of-concept tests that have trialed different
applications. These were 1) the testing of “Healthcare MaaS” at Shonan Health Innovation Park, 2) the testing of a selfdriving bus service at Mibu Highway Park (part of Tochigi Prefecture’s ABC Project), and 3) the second round of themunicipal testing of next-generation mobility in Yokkaichi, Mie Prefecture, which aimed to test new transportation
applications. Going forward, we will continue to deepen our relationships with MACNICA and other partner companies tocontribute to the implementation of autonomous driving through self-driving testing programs.

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Sustainability

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CSV5:Medical & Welfare

CSV5:Medical & Welfare
Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement

Growth Strategies
2030 Goals
A company that offers solutions to the management issues faced by businesses engaged in the health market of asuper-aged society
Provision of new services that address changes in the business environment driven by the advancement of DX in thehealthcare fieldFuyo Shared Value 2026
In addition to management issues such as reduced income from medical practices, labor shortages, and a lack ofsuccessors, the 2025 problem* is expected to make medical and welfare needs even greater and more complex. We willcontribute to businesses in the medical and welfare market, such as medical and nursing care providers andpharmacists, who are facing these challenges. For businesses with business restructuring and succession needs, we will
provide financing services in collaboration with regional financial institutions and professional consulting companies, aswell as solutions that leverage the various functions possessed by our Group companies.

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

Fuyo Shared Value 2026 Strategies for Achieving Our Goals
1. Providing services tailored to a super-aged society
Responding to the super-aging of society is an urgent issue and we are developing partnerships with nursing
care providers to support the creation of 1,000 new rooms at elderly care facilities over a five-year period. We
are also working with various alliance partners to expand initiatives in related business areas.
2. Supporting the enhancement of regional healthcare and welfare
We are addressing the management issues facing medical and nursing care providers and dispensing
pharmacies, such as opening or closing hospitals, reorganizing and restructuring, business succession, andM&A, by establishing a healthcare fund and providing solutions that include financing for hospital real estateand financing for business restructuring and succession. We are also engaging in the medical DX field,
including anticipated growth areas such as remote healthcare, by leveraging synergies between WorkVision38

and startups we have invested in to support the enhancement of essential regional medical and welfare
providers.
3. Providing medical and nursing care businesses with useful information
We have established Fuyo Mediwel Support, a Group-wide website that provides clinic (medical and dental)
and nursing care provider customers with a wide range of information that is useful for solving management
issues. We also offer specific solutions such as factoring for medical and nursing care receivables by
Accretive, financial support for business launches and building leases by Sharp Finance, and BPO services
from various Group companies.
* Various challenges that are expected to manifest in 2025, when the baby boomer generation born between 1947 and 1949 reach thelatter-stage elderly age of 75 and above. These challenges include a rapid increase in social security costs and shortages of healthcare
and nursing care personnel and facilities.

TOPICS
Left to rightShuji Furuta, Representative Director , FUJITA Co., Ltd.
Eiki Koseki, General Manager of Healthcare Business
Promotion Division
Takeshi Sugahara, President & Chief Executive Officer,
Accretive Co., Ltd.
* Affiliations and titles are as of August 2022

1．Expanding the Fuyo Lease Platform Concept
We are working on expanding the Fuyo Lease Platform to respond to the various management challenges facing medical
and nursing care providers and dispensing pharmacies with one-stop solutions.
Up to now, we have been bringing companies with strengths in the medical field into the Group, including Accretive,
which carries out factoring for medical and nursing care receivables, and FUJITA, which specializes in buying andremoving second-hand medical equipment. We have also been growing business collaborations in new business areas
with partners such as CB Holdings, which carries out M&A operations for medical businesses and dispensing pharmacies,
RIVERFIELD, a joint academic-industrial joint venture company originating from a university, and Lily MedTech.
Going forward, we will continue to contribute to solving various issues by enhancing the platforms’ various functions todeliver solutions covering areas such as consulting on business succession and support for hospital businessrestructuring, as well as the financing needed to establish and maintain elderly care facilities.

2．Launch of Fuyo Mediwel Support
39

Clinics (medical and dental) and nursing care providers face a wide range of challenges, including securing personnel
such as doctors, nurses, and nursing care staff, implementing work style reforms, and coping with the COVID-19
pandemic. Through Fuyo Mediwel Support, a Group-wide website, we provide these clinics and nursing care providers
with a wide range of specialized information tailored to diverse management environments and challenges, as well as
various services. In this way, we are providing support for solving management issues, including by enhancing the
productivity of medical institutions and nursing care providers, as well as contributing to the realization of sustainableregional healthcare and nursing care frameworks. We are also implementing CSV by working with partner companies on
the creation of joint content that leverages both parties’ expertise to provide added-value information that goes beyond
the Group’s knowledge base.

Fuyo Mediwel Support: https://www.fuyo-mediwel-support.jp/

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Sustainability

Environmental Report

Environmental Report
Environmental Philosophy/ Environmental Policy

Environmental Management

Climate Change Initiatives

Information disclosure based on the TCFD
recommendations

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
Fundprocurement
through ESG financeParticipation in Initiatives
and Third-Party
Evaluation
Editorial Policy
Independent assurance"Integrated Report" PDF
download

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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 saving activities

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

Fundprocurement
through ESG financeParticipation in Initiatives
and Third-Party
Evaluation
Editorial Policy

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

5.Establishing an environmental management system

Independent assurance"Integrated Report" PDF
download

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.

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Sustainability

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Environmental Management

Environmental Management
Environmental management system

Sustainability

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

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

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 2021

Implementation status of environmental education (FY 2021)
Training

Employee
Training

PeriodNumber of Participants

Environmental e-learning

October 2021

899employees

Hachioji Technical Center
Training Program

Suspended in fiscal 2021 due to impact of the COVID-19
pandemic

Sanden Forest Biodiversity
Training Program

Suspended in fiscal 2021 due to impact of the COVID-19
pandemic
43

In fiscal 2021, we conducted an environmental e-learning program targeting
all employees to increase their knowledge of the latest environment-related
information and environmental laws.

Hachioji Technical Center Training Program

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.

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 2021 compliance checks, covering the period between February 2021 andJanuary 2022, were inspected in February 2022. 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.

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Environmental Report

Climate Change Initiatives

Climate Change Initiatives
Basic Approach

Sustainability

Today, climate change is a universally recognized problem, and increasing greenhouse gas emissions are making it
worse. As the Paris Agreement, an international framework for climate action beyond 2020, and other initiatives give
momentum to efforts to reduce greenhouse gas emissions across the globe, renewable energy along withenvironmentally-friendly products and services are more important than ever.
The Fuyo Lease Group has positioned “contribution to the realization of a decarbonized society” as one of its material
issues to be addressed by fiscal 2026. Accordingly, we are working to mitigate climate change by reducing greenhousegas emissions from our operations and carrying out business activities, while taking into account the risks andopportunities in the business environment that climate change brings. We also recognize that business opportunities lie
in renewable energy generation and energy-efficient asset leasing businesses and expanding and enhancing services inthese areas is one of the growth drivers of our Medium-Term Management Plan Fuyo Shared Value 2026. We aim to growour businesses alongside activities to mitigate climate change.
In 2019, we expressed support for the recommendations of the Task Force on Climate-Related Financial Disclosures(TCFD) and in 2022, we conducted an analysis of risks and opportunities using the 1.5 °C and 4 °C scenarios. As a result,
we are disclosing information based on the TCFD recommendations.

Fuyo Lease Group's CSV

Information disclosure based on the TCFD recommendations can be found here

Fundprocurement
through ESG financeInitiatives to Reduce Greenhouse Gas Emissions

Participation in Initiatives
and Third-Party
Evaluation

The Japan Leasing Association has formulated a voluntary low-carbon society action plan, which Fuyo Lease has signed
on to as a member company. The Fuyo Lease Group is making efforts to conserve the environment at all our locations bysetting targets that lower our CO₂ emissions and energy consumption, and work to reduce power usage, as well as ourcompany vehicles' fuel consumption and exhaust emissions.
In 2018, we started to issue green bonds (available only to those businesses that are expected to improve theenvironment) to raise funds from a variety of sources while promoting renewable energy. In the same year, we officiallyjoined the Japan Climate Leaders Partnership (JCLP), a group of companies that aims to realize a sustainable, carbonfree society. In addition, we joined RE100, a business initiative which aims to source 100% renewable energy to powerbusiness activities.

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

Editorial Policy
Independent assurance"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. Consequently, the percentage of power
derived from renewable energy rose to 44% of power consumed by the entire Group.

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 2021, we added two fuelcell vehicles (FCV) to our fleet of company cars to reduce fossil fuel use.
45

Total CO₂ Emissions (Scope 1, 2)*1 *2

Total Energy Consumption*2 *4

Electricity Consumption*2

Total Gasoline and Diesel Consumed byCompany Vehicles*2 *5* A checkmark ☑ indicates that figures have been assured by KPMG AZSA Sustainability Co., Ltd.

Independent assurance*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., FGL Group 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 Co., Ltd., Accretive Co., Ltd., INVOICE INC., FUJITA Co., Ltd., NOC
Outsourcing & Consulting Inc., YAMATO LEASE CO., LTD., and WorkVision Corporation, 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. and FGL Aircraft Ireland Limited, andAircraft Leasing and Management Limited. For Fuyo Lease Group companies, figures from before figures began to be recorded are notincluded.
*3 Up to fiscal 2020, Scope 2 emissions were calculated based on standard emission factors, but from fiscal 2021 onward, they arecalculated based on emissions factors after adjustment. Results of past years have been revised accordingly.
*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, 219 kg of hydrogen fuel was 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.

Energy Conservation via Products and Services46

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 leverage the know-how gained through our power
generation business to offer a host of power generation equipment installation plans that meet a wide array of customer
needs. Those include everything from large-scale power plants to rooftop solar panels of distribution warehouses andother commercial facilities as off-grid schemes for self-consumption. Along with various financing options, we introduce
them to customers with the aim of taking the use of renewable energy to new heights. At the same time, we arecontributing to further expanding the introduction of renewable energy by forming business alliances with venturecompanies that have advanced renewable energy-related technologies, and supporting industrialization andcommercialization.

Initiatives in the Renewable Energy Generation Business
The Fuyo Lease Group launched its renewable energy
generation business in 2012, 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.
Including equity participation, this increased theGroup's power generation capacity to 318 MW (sumof figures from Group businesses and partner
businesses adjusted in accordance with equity
investment share).

Wind Farm Tsugaru in Tsugaru City,Aomori Prefecture, Japan

Green Power Supplied (Output)/CO₂ Reductions from Renewable Energy (estimated)

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.
47

The Fuyo 100% Renewable Electricity Declaration Support Program is a preferential financing program forbusinesses and organizations that have joined RE100 and the 100% Renewable Electricity Declaration RE Action.
Using funds raised by the Company through green bonds, the program is aimed at encouraging the introductionof renewable energy facilities and energy-efficient equipment.
Click here for details
The Fuyo Zero Carbon City Support Program is a donation-built-in program open to all companies,
organizations, and local governments. Along with customers who install facilities and equipment that contributeto decarbonization in areas of municipalities that have declared themselves zero-carbon cities, the program
donates an amount equivalent to 0.2% of the value of lease contracts to organizations that contribute topromoting zero-carbon cities.
Click here for details

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

Tsubame BHB

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

Oct. 2020

48

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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.

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business*1Task Force on Climate-Related Financial Disclosures (TCFD)

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

The Fuyo Lease Group’s Climate Change Initiatives

Fundprocurement
through ESG finance

Governance

Governance andManagement
Each Group Company's
Environmental and Social
initiatives

Strategy

Participation in Initiatives
and Third-Party
Evaluation

Risk Management

Editorial Policy

Indicators and Targets

Independent assurance

The Fuyo Lease Group’s Climate Change Initiatives"Integrated Report" PDF
download

We recognize that climate change-related risks and opportunities will have a significant impact on the Group’s businessactivities, and we are implementing a response under our CSV Promotion System and risk management system.

We believe that to reduce greenhouse gas (GHG) emissions, we must first take a proactive stance and in 2018, we became
the first general lease company in Japan to participate in RE100.

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.
Also, as a group that operates in extensive areas of business and has an extensive customer base, we believe that
contributing to the decarbonization of society as a whole through our business activities is an important commitment.
Therefore, we have positioned addressing climate change issues and renewable energy as one of our material issues

49

(important issues to be addressed to create social value through our business) , and we are advancing operations
accordingly. Specifically, we aim to contribute to the development of a decarbonized society through initiatives based on
the following three pillars: 1) renewable energy generation business, 2) promotion of renewable energy-related
infrastructure and 3) investment and commercialization support for renewable energy-related technologies.
For details, please see Solving Social Issues through Business (CSV1: Energy and Environment).

Initiatives for the Development of a Decarbonized Society (Overview)

GovernanceWe engage in initiatives for the achievement of a sustainable society under our CSV Promotion System. The Creating
Shared Value Promotion Office identifies risks and opportunities concerning climate change. Non-financial targets areset for the opportunities related to climate change that are recognized as particularly important. Progress on thesetargets is managed by the CSV Promotion Committee and reported at Board of Directors meetings at least once a year.
We have built the climate change risk management system outlined below for the management of climate change risks
and this risk management is carried out under a Group-wide risk management system.

Climate Change Risk Management System

Related page
Our Thoughts on CSVStrategy
To quantitatively measure the impact of climate change on our financial affairs, we performed a scenario analysis basedon two climate change scenarios, the 1.5°C scenario and the 4°C scenario.
50

The risks and opportunities identified as a result of this analysis have been reflected in our Medium-Term Management
Plan Fuyo Shared Value 2026, which started in fiscal 2022. For each of our financial and non-financial targets, we have
set targets that will address climate change risks and maximize opportunities.

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.

51

Effect on Our Operations
DomainGroup-wide

Category

Aircraft

Impact by Scenario
1.5°C

4°C

Introduction of a carbon tax(policies and legal regulations)

Risk of an increase in costs for theachievement of RE100 and carbon
neutrality due to the introduction of acarbon tax

Medium-to
long-term

Minor

Minor

Transition
risks

Decline in competitiveness due
to changes in customer
preferences (markets)

Risk of a decline in profitability andcredibility as a debtor if properties thathave been invested in through real estate
financing transactions, etc., are slow toadapt to environmental measures

Medium-to
long-term

MediumMinor

Physicalrisks

Increasingly serious natural
disasters (acute)

Risk of rises in insurance premiums due tothe increasing frequency andintensification of natural disasters

Short-tolong-term

Minor

Minor

Institutional changes to energy
purchase systems (FIT, FIP),
etc. (policy and legal
restrictions)

Risk of decreases in revenue from electric
power sales, increases in operationalcosts, etc. in the event of unexpected
institutional changes

Short-tolong-term

MediumMediumChanges in the businessenvironment around therenewable energy generation
business(markets)

Risk of decreases in revenue from electric
power sales due to restrictions on output

Medium-to
long-term

MediumMediumIncreasingly serious natural
disasters (acute)

Risk of rises in insurance premiums due tothe increasing frequency andintensification of natural disasters

Short-tolong-term

MediumMediumStricter regulation of CO₂
emissions (policy and legal
restrictions)

Risk of a decrease in demand for the leaseof conventional diesel- and gasolinepowered vehicles due to a decrease indemand for gasoline-powered vehicles
following the tightening of CO₂ emissions
regulations, etc.

Medium-to
long-term

MediumMinor tomediumChanges in the businessenvironment (markets)

Risk of a decrease in the resale prices ofgasoline vehicles in accordance with ashift to EV

Medium-to
long-term

MediumMinor

Decrease in maintenancerevenues (technology)

Risk of a decrease in sales and revenues
related to maintenance in accordance witha shift to EV

Long-term

MediumMinor

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

Risk of a decrease in lease revenues due toa decline in demand for aircraft following
the tightening of CO₂ emissions
regulations, etc.

Medium-to
long-term

Minor

Minor

Changes in the businessenvironment (markets)

Risk of a decrease in profits resulting froma fall in the resale prices of old model
aircraft after the termination of the lease
period in accordance with the shift to fuelefficient aircraft

Medium-to
long-term

MediumMinor

Transition
risks

Physicalrisks

Mobility

Timeframe

Transition
risks

Real Estate

Energy &Environment

Business Summary

Transition
risks

Transition
risks

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 was
used.
52

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 in demand forrenewable energy (products,
services, and markets)
Energy &Environment

Opportunities

Business opportunities
created by newtechnologies, new systems,
etc. (products, services, andmarkets)
Rise in demand for electricvehicles (markets)

Mobility

Opportunities
Rise in demand for services
related to electric vehicles(products and services)

Aircraft

Opportunities

Introduction of newtechnologies related toaircraft and the formation of
new markets (products andservices)

Business Summary

Timeframe

Impact by Scenario
1.5°C

4°C

Increase of initiatives for renewableenergy projects in Japan

Short-tolong-term

Major

Major

Increase of initiatives for renewableenergy projects overseas

Short-tolong-term

Major

MediumIncrease of initiatives for new areas ofbusiness such as secondary energy

Short-tolong-term

Major

MediumPromotion of one-stop services forelectric vehicles
Promotion of partnership with car
manufacturers and dealers, and alliancestrategies with power companies,
trading firms, etc.
Retention of maintenance facilities andengineers through the building of amaintenance network
Promotion of FCV before othercompanies do

Short-tolong-term

MediumMediumExpansion of the business domain
Capture of opportunities regarding
existing products and increase inprofitability through investment in andcooperation and synergies with
peripheral businesses
Venture capital investment andcooperation in new areas of technology(sustainable aviation fuel [SAF],
hydrogen/electric/ eVTOL [electric
vertical takeoff and landing] aircraft,
etc.)

Medium-to
long-term

MediumMedium53

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*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.

Counter Measures and Reflection in Strategies
To address climate change risks while maximizing opportunities, the analysis has been reflected in the key strategies of
our Medium-term Management Plan Fuyo Shared Value 2026, which started in fiscal 2022. The plan was written on theassumption that society will aim to limit global warming to 1.5°C. By concentrating our management resources on
decarbonization, we intend to profit through, for example, the expansion of our renewable energy power generation
business and greater financing for EV and FCV. We have also set the following non-financial targets for advancing ourstrategies.

Non-financial goals (excerpt of climate change-related targets)Category

Environment

Targets
2027/3Contribution to CO₂ emissions
reduction

500,000 tCO₂

Amount invested in promoting
decarbonization￥

Remarks

3 00.0billionSum total for five years

Renewable energy generation
capacity

1,000MW

Applicable toinvestments made in the
Renewable Energy
Generation Business,
project financing, etc.
(The power generation
capacity is calculated
based on the ownership
ratio and share.)

Percentage of Group vehicles
that are EVs or FCVs

30%

Percentage held by Fuyo
Auto Lease¥10.0
billionSum total over five years
Applicable to the “FuyoZero Carbon City Support
Program” and the “Fuyo100% Renewable
Electricity Declaration
Support Program”

DecarbonizedsocietyAmount of financing handled
for the promotion of
decarbonization

54Perspective under 1.5°C scenario

Perspective under 4°C scenario

55

Main Reference Literature
IEA: World Energy Outlook 2021 (NZE, APS, SDS, STEPS), Net Zero by 2050 , Energy Technology
Perspectives 2017
IPCC: Fifth Assessment Report (RCP 2.6, RCP 8.5)
NGFS: Climate Scenarios for central banks and supervisors
Climate impact explorer , a free tool by Climate Analytics (jointly developed with NGFS)WRI (World Resources Institute): Aquatic Floods
Ministry of Economy, Trade and Industry of Japan: 6th Strategic Energy Plan
Ministry of Economy, Trade and Industry of Japan: Green Growth Strategy Through Achieving Carbon
Neutrality in 2050
Agency for Natural Resources and Energy: Net Zero Energy Buildings
Ministry of the Environment of Japan: Ministry of the Environment Initiative Policy for the Further
Introduction of Energy Efficiency
Japan Meteorological Agency: Climate Change in Japan – Report on Assessment of Observed/Projected
Climate Change Relating to the Atmosphere, Land and Oceans (December 2020)

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.

Climate Change Risk Management System (repost)

56

Risk Management System
See the related pages on risk management and compliance for details.

Related Pages
Risk Management/ComplianceIndicators and Targets
We joined RE100 in 2018 and set medium- and long-term environmental targets for the shift of all of the electric power
we use in business operations to renewable energy and also the achievement of carbon neutrality (Scopes 1 and 2) by2030. In order to achieve these targets, we also set short-term targets each year and are continuously working to improve
environmental performance.

The Fuyo Lease Group’s Medium-to Long-Term Environmental Targets*4 Applicable to both Fuyo General Lease and its consolidated subsidiaries.
*5 Scope 1: direct emissions from the use of fuel in company vehicle, city gas, etc.; Scope 2: indirect emissions accompanying the use ofpurchased electric power, etc.

In our Medium-term Management Plan Fuyo Shared Value 2026, we have set non-financial targets in conjunction with
our financial targets, based on the risks and opportunities identified through scenario analysis. They have also beenreflected in strategies. These targets have been positioned as extremely important in terms of implementing businessstrategy and CSV management, and the degree to which they have been achieved is one of the factors used to calculate
officer remuneration. (See the Strategy section above for details).
Additionally, we are actively participating in major initiatives in Japan and overseas, such as the Japan Climate Leaders’Partnership (JCLP) and the Ellen MacArthur Foundation, to accumulate knowledge and expertise and to expand
networks.

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

57

CO₂
emissions(t-CO₂)*7

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Scope1(adjusted)

202

192

159

153

163

770

707

688

603

584 ☑

Scope2(adjusted)

1,065

956

1,110

1,045

1,089

1,273

1,197

1,283

1,414

872 ☑

Scope1+2(adjusted)

1,267

1,148

1,269

1,199

1,253

2,043

1,904

1,971

2,016

1,455 ☑

Scope3*8-

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☑

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

0.34

0.31

0.33

0.30

0.32

0.36

0.36

0.29

0.28

0.22

Renewable energy
power generation
capacity (MW)*9

8

23

48

77

86

111

149

229

283

318

CO₂ reductions fromrenewable energy(estimated) (t-CO₂)

472

8,910

22,236

39,636

54,11548,25869,51485,577

147,574

153,442*6 Figures marked with a ☑ have received third party assurance from KPMG AZSA Sustainability Co., Ltd.
*7 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 towhich 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.
*8 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).
The statistics are collected from the Fuyo Lease Group and calculations cover all 15 categories.
*9 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
Environmental Data
Participation in Initiatives and Third-Party Evaluation

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Environmental Data

Environmental Data
Energy / CO₂*1

Sustainability

Total Energy Consumption*2

Electricity Consumption

Fuyo Lease Group's CSV
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Total Gasoline and Diesel Consumed byCompany Vehicles*3

Total CO₂ Emissions (Scope 1, 2)*4

Each Group Company's
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Independent assurance* A checkmark ☑ indicates that fiscal 2021 figures have been assured by KPMG AZSA Sustainability Co., Ltd.

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Independent assurance

CO₂ emissions (Scope 1, 2, 3)*4
CO₂ emissions (t-CO₂)

Ratio of total CO₂
emissions(2022/3)

2018/3

2019/32020/32021/32022/3 ☑

Scope 1

770

707

688

603

584

0.02%

Scope 2*5

1,273

1,197

1,283

1,414

872

0.04%

Scope 3*6

1,768,197

2,789,556

2,866,387

2,372,283

2,471,642

99.94%

Total CO₂
emissions

1,770,240

2,791,460

2,868,358

2,374,300

2,473,098

100%

59

CO₂ emissions(Components of Scope 3)*6
CO₂ emissions (t-CO₂)
Category

1. Purchased
products andservices

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

4.
Transportation
anddistribution(upstream)

2018/3

2019/3-

1,767,060

207-

2,120,559

994

347

413,244

2020/3

2,166,659

1,074

362

436,4162021/3

1,837,264

8,359

366

303,0492022/3

1,939,951

1,917

385

330,273

Composition
ratios intotal CO₂
emissions（2022/3）

Calculation method/remarks

78.49%

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 for Japanand purchase price for the target
device.

0.08%

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

0.02%

Calculated by multiplying the amountof electricity and fossil fuels used in
the Scope 1 and 2 calculations byemission intensity.

13.36%

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, thetransportation tonne -kilometer iscalculated from the transportation
distance (domestic truck
transportation of 1,000 km one way)
based on the transportation scenario.
This transportation tonne -kilometeris then multiplied by the domestic
truck transportation emission
intensity.
Until 2020/3, calculated bymultiplying the amount of industrial
waste and the amount of generalwaste by the emission factors foreach type of waste and disposal
method. From 2021/3, calculated bymultiplying the amount of industrial
waste by the emission factors foreach type of waste and disposal
method.

5. Waste
generated inoperations

294

258

291

170

143

0.01%

6. Businesstravel

223

255

314

94*

152

0.01%

Calculated by multiplying the numberof consolidated employees by theemission intensity per employee.
*Because business travel was
significantly reduced in 2021/3 due tothe impact of the COVID-19,
calculated by multiplying the numberof consolidated employees by theemissions intensity and percentage ofbusiness travel expenses compared
to previous year.
60Composition
ratios intotal CO₂
emissions（2022/3）

CO₂ emissions (t-CO₂)

Category
2018/3

2019/32020/32021/32022/3Calculation method/remarks

7. Employee
commuting

412

471

576

631

760

0.03%

Calculated by multiplying the numberof consolidated employees by the
number of business days and theemission intensity by work type andcity per number of working days.

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.)

7.84%

Calculated by estimating the energy
consumption during use andmultiplying by the emission intensity
for each energy type, based on thecontract execution results of leasing
and installment sales for the current
fiscal year in consolidated
accounting, assuming sales volume
per price of the representative
product* and the standard usage
scenario (with assumptions regarding
product design specifications andconsumer conditions of use), etc.
* We handle a wide range of products
through leasing and installment sales
making it difficult to measure theusage situation of each individual
product. Therefore, the statistics
have been standardized using IT and
office equipment (laptop computers)
as the representative product.

11. Use of soldproducts-

247,227

254,848

213,255

193,851

12. End-of-life
treatment ofsold products

-

16

17

15

11

0.00%

Based on the contract execution
results of installment sales for thecurrent fiscal year in consolidated
accounting, the weight per amount ofrepresentative product is assumed,
the installment sales product weightis calculated, and this weight ismultiplied by the emission intensity
for each waste type.

13. Assets(downstream)

-

-

-

-

-

-

Emissions associated with use ofleased products are recorded in
Category 11.

61

2018/3

2019/32020/32021/32022/3Composition
ratios intotal CO₂
emissions（2022/3）

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

0.17%

Calculated by multiplying the Scope 1
and 2 emissions of major investees inprevious fiscal year by theshareholding ratio. (The emissions in
2022/3 is calculated by multiplying
the Scope 1 and 2 emissions of major
investees in FY2020 by theshareholding ratio.)

100%

The Ministry of the Environment’s“Basic Guidelines on Accounting forGreenhouse Gas Emissions
Throughout the Supply Chain(ver.3.2)” and the “LCI database
IDEAv2 (for calculating greenhousegas emissions in supply chains)” areapplied to the above emission
intensity.

CO₂ emissions (t-CO₂)

Category

14. Franchises

15.
Investments

Total CO₂
emissions-

1,768,197

6,185

2,789,556

5,830

2,866,387

9,080

2,372,283

4,200

2,471,642☑

Calculation method/remarks*1 The statistics are collected from all domestic offices of Fuyo General Lease Co., Ltd., Fuyo Auto Lease Co., Ltd., FGL Group 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 Co., Ltd., Accretive Co., Ltd.,INVOICE INC., FUJITA Co., Ltd., NOC Outsourcing & Consulting Inc., YAMATO LEASE CO., LTD., and WorkVision Corporation, 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. and FGL Aircraft Ireland Limited, and Aircraft Leasing and Management Limited.
For group companies, figures prior to the start of data collection are not included.
*2 Energy consumption is calculated using unit heating values stipulated by the Act on Rationalizing Energy Use.
*3 In addition to values shown in the graph, 219 kg of hydrogen fuel was used.
*4 Total CO₂ emissions 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 with electricity are calculated based on the adjusted annual emission factors issued by power transmission anddistribution business operators of where our regional operations and offices are located. Calculations concerning overseas electric power use the emission coefficients of thespecific country published by the International Energy Agency [IEA]). However, Fuyo General Lease and the Group’s companies are not considered to be specified emitters.
*5 Up to fiscal 2020, Scope 2 emissions were calculated based on standard emission factors, but from fiscal 2021 onward, they are calculated based on emissions factors after
adjustment. Results of past years have been revised accordingly.
*6 Scope 3 emissions are calculated for all calculable categories based on "Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain (Ministry of theEnvironment, Ministry of Economy, Trade and Industry)."
The data up until fiscal 2017 was calculated using the emissions unit values from the "Database for Emissions Unit Values for Calculation of Greenhouse Gas Emissions, etc., by
Organizations throughout the Supply Chain (Ver. 2.6)"
From fiscal 2018, the data was calculated using emissions unit values from the "Database for Emissions Unit Values for Calculation 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 Calculation of Greenhouse 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)."
The scope of calculations is the Fuyo Lease Group.

62

WasteVolume of Industrial Waste Generated*7*7 Data coverage: all domestic locations of Fuyo General Lease and FGL Circular Network.

Water Consumption
Volume of water consumed*8*8 The scope of calculations is Fuyo General Lease / Head Office (including FGL Group Business Service) and Aqua Art. Due to therelocation of the head office, water consumption at Fuyo General Lease/Head Office has been significantly reduced since fiscal 2020,as water consumption on only some floors has been counted since June 2020.

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Contributions

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Employee Data

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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.

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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.

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
65

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

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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

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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.

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 the Code ofCorporate Conduct in the area of human rights, including bullying and harassment.
67

In fiscal 2021, eleven reports were received through the hotlines. In each report, investigations are promptly conducted,
such as 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 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 witha fundamental respect for human rights. We have also distributed the Code of Corporate Conduct mini-booklet to all
employees to raise awareness of the Fuyo Lease Group's approach to human rights and labor and the importance ofrespecting them. In fiscal 2018, the Group introduced a new training program for all employees, in which 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.

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 64.4%.

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 2021, there were no infringements of labor-related laws and regulations.

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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."

Fuyo Lease Group's CSV

Providing the FLOW data service, which contributes to improving
customers' administrative efficiency

Environmental Report

Fuyo Lease provides FLOW, a proprietary data service for managing lease
contracts online as one of the services that provide added value to customers.
FLOW has the advantage of improving the administrative efficiency of online
viewing and downloading of contract information and accounting referencematerials, and also completing contract termination procedures.
In addition, as a new service, we began offering the FLOW Cube+, a cloud-based
fixed asset management system, which enables customers to prepare financial
statements which portray the actual situation (physical asset management)
while keeping customers' labor and costs down.
With the FLOW Cube+, we can respond to changes in taxation and accounting
systems in fixed asset management, and match information and accounting
books of fixed assets that are needed for strengthening internal controls, which
contributes to improving the reliability of financial reporting.
We also respond promptly to the new lease standard of the International
Financial Reporting Standard (IFRS), IFRS16, which is applicable from January
2019.

FLOW Fuyo General Lease web service
FLOW Cube+ cloud-based general asset management service

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Customer-Oriented Business Policy
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.
69

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.

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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

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Environmental and Social
initiatives
Fundprocurement
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Communication with Our Shareholders and Investors

Communication with Our Shareholders and Investors
General Meeting of Shareholders

Sustainability

At Fuyo Lease, considering the convenience of our shareholders, we hold a general meeting of shareholders early inorder to avoid the day on which meetings are concentrated, as well as dispatch the notice of convocation early and post
it on our websites.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.

Fuyo Lease Group's CSV
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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

Financial results briefings
Fuyo Lease holds financial results briefings for institutional investors and analysts twice a year in May and November. We
also have individual meetings with analysts. In fiscal 2021, we conducted meetings with a total of 44 companies.

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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
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Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fundprocurement
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Evaluation
Editorial Policy
Independent assurance"Integrated Report" PDF
download73

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

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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 corporate slogan of “Go where no one
has gone before” and our management philosophy, we are focused 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.

Fuyo Lease Group's CSV
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Governance andManagement
Each Group Company's
Environmental and Social
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Social Contribution Policy (excerpt)
Article 3 (Target areas for social contributions)

Fundprocurement
through ESG 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
Editorial Policy

Article 4 (Implementation criteria)

Independent assurance

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"Integrated Report" PDF
download

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 one employee in fiscal 2021.

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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
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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, and it is also working to breed fish itself,
establishing its SDG-Related Project in 2020. In addition to platy, a kind of tropicalfish, it also 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.
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
Fundprocurement
through ESG financeParticipation in Initiatives
and Third-Party
Evaluation

Children actively participating
in a visiting lecture (fiscal 2022)

Editorial Policy
Independent assurance"Integrated Report" PDF
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Participation in FIT Charity Run 2020
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.
The 16th FIT Charity Run 2020 was held online due to the impact of the COVID-19 pandemic. A total of 9 employees fromthe Group participated in the event through activities of running, walking or cycling.

Inviting the local community to Fukuoka PayPay Dome76

At 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 12th internship program, held in fiscal 2021, was carried out over a period of
eleven days in total between December and February, with the participation of 353
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 2022.

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.

GAP FundA fund intended to fill the “GAP” to commercialization

77

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. The committee will decide on how the fund should be managed and carry out
preparatory work for exhibiting works.
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 Fund

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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 2021, we mainly provided donations to support areas
affected by disasters related to torrential rains, to children affected by the COVID-19 pandemic, and to cultural arts.

Fuyo Lease Group's CSV
Solving Social Issues
through Business

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

Disaster-affected area
support andHumanitarian Assistance

563

1,127

1,040

575

562

Environment

50

50

50

50

272

Cultural Arts andAcademic Research

125

625

1,275

230

600

Each Group Company's
Environmental and Social
initiatives

Other

42

4

2

1

1

Fundprocurement
through ESG finance

Other

780

1,806

2,367

856

1,435

Environmental Report

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 2021, we donated a total of ¥800,000 as donations of ¥200,000 to 4 projects
in Japan and overseas related to COVID-19 countermeasures and support forchildren with incurable diseases and their families.

Social Report
Governance andManagement

Participation in Initiatives
and Third-Party
Evaluation
Editorial Policy
Independent assurance"Integrated Report" PDF
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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 2021, we donated ¥2.81 million each to a fund managed by Social Welfare Corporation Central Community Chestof Japan supporting disaster volunteer and NPO activities in response to torrential rains since early August 2021, and a
program by Save the Children Japan providing support for COVID-19 countermeasures through food aid boxes forchildren.
79

Actual donations
Fiscal year

Donation recipient (outline of donation)

Amount (yen)Fiscal 2011

Japanese Red Cross Society (Great East Japan
Earthquake/donation for disaster area)

2,594,500

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

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
80

Fiscal year

Fiscal 2019

Fiscal 2020

Fiscal 2021

Donation recipient (outline of donation)

Amount (yen)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

5,552,400

Central Community Chest of Japan (Donations for disasters,
including torrential rain from July 3, 2020/support fund for disastervolunteer 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)
Please see here (external site) for details

2,810,200

Total

5,620,400

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Human Resource Development and Appointment

Human Resource Development and Appointment
Basic Approach to Investment in Human Resourse
The Fuyo Lease Group believes that people are its greatest asset and that it is important to respect each individual andtheir 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 and physically 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.
The Group expects its employees to each think individually and act proactively on their own, to be eager to grow andindependent. We will actively invest in human resources to cultivate “high value-added” human resources who will focus
on Creating Shared Value (CSV) and facilitate sustainable growth.
Investing in human resources, the Group will focus on developing an organization and systems that will underpin
sustainable value creation, particularly the diversification of business domains, the strategic development of humanresources in response to advances in technology, diversity and inclusion, and health and productivity management. The
Group aims to be a corporate group that supports each employee’s endeavors and growth and that grows together with
its employees.

Strategic Human Resource Development
We made changes to our human resources system in July 2019 to perform fair and impartial evaluations and expand
business domains under our previous Medium-term Management Plan, Frontier Expansion 2021. The core concept of thecurrent human resources system is to convert a job function or ability-based system where a generalist serves as a rolemodel into a varied, multi-track, job duty-based system, and to provide a framework which enables employees toachieve personal development and to expand the scope of their duties 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 role models, but also to strive for even higher positions suchas departmental manager. We encourage employees to independently develop their career plans and we make efforts tooffer them rewards that commensurate with the roles they play and the duties they perform in their respective areas.
Moreover, under our new Medium-term Management Plan, Fuyo Shared Value 2026, we plan to increase human resource
development expenses 300% during the period of the plan, believing that it is essential to cultivate human resources
who can help address highly complex social issues, such as the realization of a carbon-free society, and to actively
develop human resources with techniques that are very different from conventional approaches.
In addition to training for acquiring knowledge about accounting, tax practice, and legal affairs that are necessary forleasing and finance and acquiring common business skills, including communication and thinking skills, we are
expanding training programs intended to increase added value in individual business areas, including languages, digitaltransformation, and progressive finance. For language acquisition, we started for young employees a training program
where employees remotely cooperate with business persons overseas to do tasks.
To develop expertise in individual business areas, we have introduced a cafeteria plan in our self-development system.
We annually grant self-development points equivalent to 300,000 yen maximum to mid-level employees, and they canchoose from an extensive menu, including attending language school and computer school and participating in externalseminars.

Sustainability
Fuyo Lease Group's CSV
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download82

Approach to 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.

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.” Indicators of engagement are measured throughemployee opinion surveys.
In fiscal 2021, the surveys were administered to 2,182 employees in total at 12 companies in Japan, and the response
rate was 94.0%. 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
FY 2018

FY 2019

FY 2020

FY 2021

Number of employees who answered thesurveyDomestic 8
groupcompanies,
1,490
employees

Domestic 10
groupcompanies,
1,714
employees

Domestic 12
groupcompanies,
2,096
employees

Domestic 12
groupcompanies,
2,051
employees

Job satisfaction*

87.3%

85.8%

85.4%

85.9%

* Percentage of employees who rated at least one out of six job satisfaction questions as four or above (on a scale of one to five) in the
Employee Opinion Survey.

Human resource development policy and internal environment policy
and status to ensure diversity
As the needs of our stakeholders are constantly changing, diversifying and becoming more sophisticated, we believe thateach and every one of our diverse employees needs to be able to "think for themselves and make the right choices" inorder to realize the mission assigned to them. In addition to on-the-job training (OJT), we provide group training in legal
affairs, taxation/accounting, finance, financial analysis, product knowledge, and thinking business skills at a wide rangeof levels.
In addition, the basic idea of our evaluation system is to fairly and equitably evaluate the achievements of each of ourdiverse employees and their efforts to develop their abilities and realize their role tasks. In addition to clarifying
83strengths and challenges through feedback from evaluators and setting new challenges, which leads to employee
growth, we have also introduced a "Job Posting System" and a "Job FA System" to encourage autonomous growth andchallenges, and to help employees realize their career plans.

Investment in Human Capital
The Company invests in human capital with a focus on the treatment and development of employees. With regard to thetreatment of employees, we take into consideration a wide range of factors, including the environment surrounding theindustry, the performance of the company at the time, and the treatment levels of the public and other companies in thesame industry. With regards to the development of employees, in addition to on-the-job training (OJT) in the workplace,
we provide training on a wide range of topics and encourage self-development in order to develop employees' ability to"think for themselves and make the right choices. At the same time, we focus on developing global human resources by
dispatching trainees to overseas subsidiaries and supporting employees' initiative and motivation by supporting theirattendance at language and business schools.
The Company's performance in terms of compensation and training (fiscal2021) is as follows.
1. Results in terms of treatment
Average employee salary: 8.77 million yen
2. Results in terms of development
Human resource development expenses: 74 million yen
Dispatch of trainee to overseas subsidary: 6 people
Dispatch of employees for training in Japan for educational purposes (including secondment): 12 people

Policies related to human resources development
Developing autonomous human resources
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 2021, the average number of hours of education and training spent on each employee was 29.8 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
Since fiscal 2017, the Fuyo Lease Group has been jointly conducting business skill
training, focused on training for new recruits, career training, and management. Asa foundation for pursuing synergies, this training serves as an opportunity to help
share understanding of each company's business and culture.
A total of 300 group company employees took part in 13 training programs in fiscal
2021.

Young employees working on
tasks given by the training
program.
(During group training,they wear masks and keep theirdistance to participate in the
training.)
84

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.

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

A trainee dispatched to New York,
United States (at that time)

A trainee dispatched to China(at that time)

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.
Every year, the Company dispatches about nine overseas trainees per year to its Group companies in the US and Hong
Kong, as well as the overseas branches of financial institutions. As a result, by getting involved in their day-to-day
operations locally, the Company aims to increase the level of the trainees' basic knowledge and linguistic abilities toengage in international financial transactions. At the Company, we have set Overseas as one of its strategic areas in theMedium-term Management Plan, and are working to expand the real estate leasing and environment and energy
businesses in collaboration with our business partners and strengthen our overseas 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.
85

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.

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. Between April 2011 and April 2022, 13 employees were transferred to their new career track taking advantageof this system.

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 2022, a total of 13 contract employees had been hired as full-time
employees, and are working in the field of administration or sales administration.

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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 thatcreates creates new value, and leads to sustainable growth for the Group. Therefore, we
are working 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 candemonstrate demonstrate theirabilities and play an active role.
The current status (as of the end of March 2022) and targets for women, non-Japanese, and mid-career hires in ourcompany are as follows.
Current

Goal

Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives①Ratio of female employees inmanagement positions

29.5%

35% or more (by end of FY 2026)

Fundprocurement
through ESG finance②Appointment of non-Japanese managers

0

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

99

Current status

Participation in Initiatives
and Third-Party
Evaluation

Empowering female employees in the workplace

Editorial Policy
Independent assurance"Integrated Report" PDF
download

Towards creating a workplace environment where female employees
can exercise their abilities and participate more than ever:87

～Preparing and promoting an action plan for promoting theparticipation of female employees in the workplace～
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.
At the start of our new medium-term management plan in April 2022, we set new numerical targets to create a workplace
where every employee can work comfortably and feel job satisfaction. These targets include a ratio of women in new
graduate hires of 40% and a ratio of female employees in management positions of 35%.
Accordingly, we have also updated the targets in our general employer action plan, which covers the period from April 1,
2022, to March 31, 2027. To achieve these targets, we will focus on further promoting the workplace participation of
women by enhancing and strengthening the various measures we have taken to date.

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
In the course of fiscal 2020 recruitment activities, the Company revised its recruitment website in order to facilitate
students to visualize what it is like for female employees to work at Fuyo Lease. The revised website introduce theCompany's female employees working in various functions, explain the scope of their jobs and careers, and how they are
managing their work and child care. Furthermore, in order to communicate more with female students, the Company set
up booths at events for female students.

88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 hold career lectures by inviting external lecturers as an opportunity for female employees to think about and design
their future careers. Since 2017, the target audience of the lectures has no longer been limited to female employees, andlectures have been held with the aim of creating a work environment where diverse employees can realize theirpotential. In January 2019, an Ikuboss* Seminar was organized for management-level staff. From fiscal 2020, we havebeen holding career seminars by female executives and providing opportunities to encounter a variety of careers andwork 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
Career Lecture

Date

Theme

1st Lecture

February 2015

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

2nd Lecture

July 2015

Creating a comfortable workplace

3rd Lecture

January 2017

Diversity and time management

4th Lecture

January 2019

Ikuboss seminar

5th Lecture

February 2021

1st Seminars by female executives

6th Lecture

September 2021

2nd Seminars by female executives

7th Lecture

March 2022

3rd Seminars by female executives

8th Lecture

September 2022

4th Seminars by female executives

Working group activities toward creating a better workplace (Everyone Active
Working Group)
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.

89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.

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 group90

Childcare 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 2021, the percentage of people with disabilities employed by Fuyo Lease was 2.2 percent.

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 2021, there were 57 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.

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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. We will continue to adapt our operations in line with therequirements of the times.
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.

Fuyo Lease Group's CSV

Description

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

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

Editorial Policy
Independent assurance"Integrated Report" PDF
download

Numerical targets(Fuyo Lease non-consolidated)
FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2026
targetRate of taking annual paid
leave

68.0%

68.4%

66.3%

72.0%

82.3%

90% ormore

Rate of male employees whotake childcare leave etc.

90.0%

90.5%

85.7%

78.6%

110%

100% ormore

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.

92

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 hours program

A program that allows employees to choose from five different
working-hour schedules to match their lifestyles

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

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.

Platinum Kurumin mark93

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 2021, the rate of paid paternity leave was 110%).
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.

Employee'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.

Promoting Work-Style Reforms
Refresh Day
In fiscal 2021, 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
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. A totalof 84.8 percent of employees take advantage of this program, which is intended to help them work better and acquire
knowledge and experience outside the workplace. We aim to create an environment that encourages employees to comeup with a variety of ideas for their work.

Employee's comment: Yuko Hoshino, ICT Solution Business Division
94

"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
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.

Employee's comment: Keijiro Miyazono, Real Estate Planning Division"Using the program, I have moretime to spend with my children."

I can now spend time with my children on weekdays as well.

With the Staggered Hours Program, I chose to start
work at 9:30 a.m., which is 30 minutes later than theregular starting time. I use the time in the morning tohave breakfast with my children and prepare them fornursery school. Because my wife is also working, I
hope to share housekeeping and childcare
responsibilities as much as possible. But, until now, I
had felt sorry to have to leave everything on weekday
mornings to my wife. Because I have been able to takecharge of the morning childcare due to flexible
attendance, my wife is also very pleased. In addition,by having more time to spend with my children, I am
also happy that I can experience my daughter growing
up gradually day by day.

Employee's comment: Yuki Nukui, Corporate Business Division II"I can now use time in a way that suits mylifestyle."

Time to study a foreign language andfor acquiring a qualification has become
available every day

With the Flexible Hours Program, I chose a work pattern to startworking at 8:30 a.m., which is 30 minutes earlier than the regularstarting time, and I leave work at 4:50 p.m. Because I leave work 30
minutes early, I use the time to take lessons at an English conversation
school using the personal development support program, in order tostudy for qualifications, and to practice golf, which is my hobby. As aresult, the time after work is being used better than before. Because
working hours have become uneven, I feel that not only the people who
use this program benefit, but also others benefit from a spreading
company-wide awareness of finishing work exactly at a fixed time andgoing home.
95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.

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 2021, we started promoting “bridge holidays” by encouraging employees to use a day of leave insituations where one or two working days are bracketed by a weekend and a national holiday, increasing opportunities
for taking four- or five-day breaks in order to achieve a balanced approach to work and time off.
As a result, we achieved a paid leave take-up rate of 82.3% in fiscal 2021 (Fuyo General Lease non-consolidated), thereby
surpassing the annual leave taking rate of 70% or more that was the target of the Action Plan: Stage 7 (from the period ofApril 2017 to March 2022) pursuant to Act on Advancement of Measures to Support Raising Next-Generation Children, as
well as the rate of 80% that was the target for the final year of our previous Medium-Term Management Plan (fiscal 2021).
As a new objective, in our new Medium-Term Management Plan Fuyo Shared Value 2026, we have raised our target to apaid leave take-up rate of at least 90% (Fuyo General Lease non-consolidated) by fiscal 2026. We will work to achieve thistarget by continuing to raise awareness of taking annual paid leave in a planned manner.

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Social Report

Employee Health Management

Employee Health Management
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
Fundprocurement
through ESG financeParticipation in Initiatives
and Third-Party
Evaluation
Editorial Policy
Independent assurance"Integrated Report" PDF
download

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.

97

Health examination
Health examinations for employees are held once a year. The general periodic health examination take rate for fiscal
2021 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.

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Sustainability

Social Report

Employee Data

Employee Data
Employee Data

Sustainability

Figures marked with a ☑ have received third party assurance from KPMG AZSA Sustainability Co., Ltd.

Fuyo Lease Group's CSV

Independent assurance

Solving Social Issues
through BusinessFuyo Lease Group consolidated data

Environmental Report

Number of employees (persons)

Number of
employees

End of FY
2015

End of FY
2016

End of FY
2017

End of FY
2018

End of FY
2019

End of FY
2020

End of FY
2021

1,559

1,703

1,715

1,960

2,416

2,637

3,189

Social 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

99

Fuyo Lease non-consolidated data
Number of employees (persons)
End of FY 2017

End of FY 2018

End of FY 2019

End of FY 2020

End of FY 2021

Male

Female

Total

Male

Female

Total

Male

Female

Total

Male

Female

Total

Male

Female

Total

Generalist
track

458

53

511

459

63

522

456

85

541

469

104

573

473

122

595

Administrative
track

0

149

149

1

155

156

1

138

139

2

137

139

2

142

144

Temporaryemployees

24

5

29

20

6

26

28

7

35

38

9

47

46

13

59

Total

482

207

689

480

224

704

485

230

715

509

250

759

521

277

798

Number of new graduates employed (persons)
FY of joining
Fuyo Lease

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

Total

26

28

31

35

29

45

38

43

Male

19

20

18

20

18

27

18

20

Female

7

8

13

15

11

18

20

23

Number of new graduates employed (persons) and retention rate after 3 years (%)
FY of joining
Fuyo Lease

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

Generalist
track

16

16

26

22

29

27

27

Administrative
track

0

3

0

6

2

6

2

Total

16

19

26

28

31

33

29

Retention rateof employees 3
years after
joining Fuyo
Lease

87.5

94.7

100

85.7

100

94.3

89.7 ☑

Rate of mid-career hires（%）
FY of joining Fuyo
Lease
Rate of mid-careerhires

FY 2016

FY 2017
17.6

FY 2018
18.4

FY 2019
14.6

FY 2020
21.6

FY 20216.3

22.4

Number of employees leaving (persons)/reasons for leave/turnover rate (%)
100

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

Generalist
track

5

6

11

13

10

12

15

Administrative
track

1

1

3

2

4

2

1

Total

6

7

14

15

14

14

16

Voluntary
resignation

3

6

9

14

11

11

11

Mandatory
retirement

2

1

2

1

2

1

1

Other

1

0

3

0

1

2

4

Turnover rate

0.8

1.0

1.9

1.9

1.8

1.7

1.9 ☑

* The turnover rate includes voluntary resignations, mandatory retirement and other reasons for leaving (e.g. relocation). It does not include employees who have been re-employedon a contractual basis leaving at the end of their contracts.

Average age (age)/average length of service (years)/average salary (thousand yen)/Rate of paid leave taken (%)
End of FY 2015

End of FY 2016

End of FY 2017

End of FY 2018

End of FY 2019

End of FY 2020

End of FY 2021

Average Age

41.7

41.5

41.4

41.2

41.3

41.4

41.4

Length ofservice

16.6

16.4

14.7

14.6

14.8

14.5

14.2

Annual salary

8,366

8,410

8,454

8,669

8,833

8,675

8,771

Rate of paid
leave taken

61.9

68.9

68.0

68.4

66.3*

72.0

82.3 ☑

* 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.

Number of female managers and assistant female managers (persons) / rate (%)
End of FY
2015

End of FY
2016

End of FY
2017

End of FY
2018

Female managers

27

29

32

36

Percentage of female
managers

9.0%

9.1%

9.9%

11.5%

End of FY
2019*1 *2

End of FY
2020*2End of FY
2021

79

113

130 ☑

21.1%

27.5%

29.5% ☑

*1 Our human resources system was revised in July 2019 to classify senior leaders (a position equivalent to the position of section chief) as managers, and, as a result, the number offemale managers and the ratio of female managers at the end of fiscal 2019 increased year on year.
*2 Figures for the end of fiscal 2019 and fiscal 2020 were changed to exclude employees who are rehired, so they differ from the figures published on the website and in the Integrated
Report, etc. the previous fiscal year and prior.

Total employee training hours (hours) / Average training hours per employee (hours)
FY 2015
Total employee
training hours(hours)13,921

FY 2016
16,109FY 2017
18,093

FY 2018
19,118FY 2019
19,937FY 2020
19,809FY 2021
20,175101

FY 2015
Average training
hours per employee(hours)

FY 2016

25.6

FY 2017

29.2

FY 2018

31.2

FY 2019

31.9

FY 2020

32.6

FY 2021

30.3

29.8

Number of trainees sent overseas (persons)
FY 2015
Number of
employees
sent overseas

FY 2016

FY 201755FY 2018
8

FY 2019
8

FY 2020
9FY 20213

6

Number of employees who used the career track shift system (persons)Apr. 2016
Number ofusers

Apr. 2017

Apr. 2018

1

1

Apr. 20191

Apr. 2020
0

Apr. 2021
2

Apr. 2022
60

Number of employees converted from contractors to full-time employees under the Full-time employee challenge system(persons)
Apr. 2016
Number ofusers

Apr. 2017

Apr. 2018

10

Apr. 20193

Apr. 2020
1

Apr. 2021
0

Apr. 2022
3

1

Other employee data
FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY
2021

FY 2020

Number of female
employees whotake childcare
leave (persons)

8

9

10

4

3

6

1

7

Percentage offemale employees
who take childcare
leave (%)

100

100

100

100

100

100

100

100

Number of male
employees whotake childcare
leave (persons)

0

11

11

7

19

12

11

22

Percentage of male
employees whotake childcare
leave (%)

0.0

47.8

52.4

43.8

90.5

85.7

78.6

110.0

Rate of employees
receiving regular
medical check-ups
(%)*1

99.8

97.5

99.0

97.5

98.4

98.4

100

100

Employment rateof the disabled
（%）

2.0

1.8

2.2

2.3

2.3

2.1

2.4

2.2 ☑
102

FY 2014
Number ofindustrial
accidents (numberof cases)*2

FY 2015
2

FY 2016
2

FY 2017
1

FY 2018
1

FY 20192

FY2021

FY 2020
4

2

3*1 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 Accidental injuries due to falling in the street while commuting, all of which are minor injuries.

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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
Fundprocurement
through ESG financeParticipation in Initiatives
and Third-Party
Evaluation
Editorial Policy
Independent assurance"Integrated Report" PDF
download

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Sustainability

Governance and Management

Corporate GovernanceCorporate Governance
Basic Idea and Structure
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 laid out in our Medium-Term Management
Plan.
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 has established an Audit & Supervisory Board Member and appointed two outside corporate auditors whoare independent from our company.In addition, in order to enhance the supervisory function of the Board of Directors,
we have also appointed four independent outside directors, who provide oversight and advice on the execution ofbusiness operations from an external perspective.

Corporate Governance 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
Fundprocurement
through ESG financeParticipation in Initiatives
and Third-Party
Evaluation
Editorial Policy
Independent assurance"Integrated Report" PDF
download

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 (179KB)
105

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

Initiative

Objective

2008

Introduced performance-based
compensation and stock compensationtype stock options

To strengthen links between directors'
remuneration and their performance andshareholder value

2011

Reduced the term of office of a director
from two years to one year

To increase opportunities to build
shareholder confidence

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 Compensation
Advisory Committee

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

Started analyzing and evaluating theoverall effectiveness of the Board of
Directors

To verify the effectiveness of the roles andfunctions 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 compensation plan
(Board Benefit Trust, BBT)The base index for calculation of
performance-based compensation waschanged to key performance indicators for
the Medium-term Management Plan
(operating assets, ordinary profit, and ROA
on a consolidated basis)
Revised Corporate Governance Guidelines

To strengthen links among the directors'
remuneration, shareholder value, andachievement status of the Medium-termManagement Plan
To comply with the revised Japan’s
Corporate Governance CodeReleased an English version of the
Corporate Governance Report
Began reporting annual internal audit
results and annual plans and policies tothe Board of Directors

To enhance external disclosure related tocorporate governanceTo 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 Japan’s revised Corporate
Governance CodeRegarding indicators used for the
calculation of performance-linked
compensation based on the new mediumterm management plan, changes weremade to financial items and non-financial
items were added.

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

2015

2016

2018

2019

2021

2022

106

Establishment of the 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 (56KB)

Board of Directors
The Board of Directors consists of nine directors, including five internal directors and four independent outside directors,
with independent outside directors accounting for more than 1/3 of the Board of Directors. The Board of Directors
deliberates and makes decisions on important management issues, as well as matters specified in laws and regulations,
the Articles of Incorporation, and the Regulations governing the Board of Directors. The Board of Directors also oversees
the execution of operations by Directors and Executive Officers.
In fiscal 2021, the Board of Directors met 12 times.

Nomination and Remuneration Advisory Committee
Fuyo Lease has set up the Nomination and Remuneration Advisory Committee as an advisory body of the Board of
Directors to ensure objectivity and independence in the process for determining nomination of officers, remuneration,etc. The committee consists of five members, including four independent outside directors and an internal director. The
committee mainly deliberates on topics such as nominating or removing of candidates for directors and corporate
auditors, remuneration of directors, succession planning, and analysis and evaluations of the overall effectiveness of theBoard of Directors, and reports its findings to the Board of Directors.
In fiscal 2021, the Nomination and Remuneration Advisory Committee met 6 times.

Audit & Supervisory Board Member
Our Audit & Supervisory Board Member is composed of four auditors, including two full-time and two part-time auditors
who are also independent outside corporate auditors.
According to the audit plan formulated by the Audit & Supervisory Board Member, each corporate auditor audits
execution of operations by directors by attending important meetings, reviewing important documents, examining
operations and assets, and reviewing the audit findings of the independent accounting auditor and the internal audit
department among other relevant activities. Corporate auditors closely work with the Internal Audit and Internal Control
Departments to conduct audits in order to enhance audit quality. At the request of the corporate auditors, an employee(a staff member from the Group Internal Audit Division) has been appointed to assist them.
In fiscal 2021, the Audit & Supervisory Board Member met 12 times.

Attendance at Board and Committee meetings (attendance in FY 2021 by board members, asof June 23, 2022)
Name

Position

Attendance at Board meetings

Yasunori Tsujita

Director and Chairman,
Chairman of the Nomination andRemuneration Advisory Committee

Board of Directors: 12/12
Nomination and Remuneration Advisory
Committee: 6/6

Hiroaki Oda

President and Chief Exective Officer(Representative Director)

Board of Directors:10/10-(Elected in June 23, 2021)

Soichi Hosoi

Director and Deputy President(Representative Director)

Board of Directors: 12/12

Keiji Takada

Director and Deputy President

Board of Directors: 12/12
107

Name

Position(Representative Director)

Attendance at Board meetings

Yusuke Kishida

Senior Managing Director-(Elected in June 23,2022)

Seiichi Isshiki

Director (Independent Outside Director),
Member of the Nomination andRemuneration Advisory Committee

Board of Directors: 12/12
Nomination and Remuneration Advisory
Committee: 6/6

Hideo Ichikawa

Director (Independent Outside Director),
Member of the Nomination andRemuneration Advisory Committee

Board of Directors: 12/12
Nomination and Remuneration Advisory
Committee: 6/6

Masayuki
Yamamura

Director (Independent Outside Director),
Member of the Nomination andRemuneration Advisory Committee

Board of Directors: 12/12
Nomination and Remuneration Advisory
Committee: 6/6

Hiroko Matsumoto

Director (Independent Outside Director),
Member of the Nomination andRemuneration Advisory Committee

Board of Directors:10/10
Nomination and Remuneration Advisory
Committee:4/4(Elected in June 23,2021)

Yoshito Tsuruta

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

Masaharu
Nakamura

Full-time Audit & Supervisory Board
Member-(Elected in June 23,2022)

Takashi Yonekawa

Outside Audit & Supervisory Board
Member (Independent Director)

Board of Directors:10/10
Nomination and Compensation Advisory
Committee:9/9(Elected in June 23,2021)

Hiroshi Imoto

Outside Audit & Supervisory Board
Member (Independent Director)

Board of Directors:10/10
Nomination and Compensation Advisory
Committee:9/9(Elected in June 23,2021)

Executive Committee
The Executive Committee is composed of Executive Officers with positions of Managing Executive Officer or higher, theheads of the Corporate Planning Division, Human Resources Division, and Business Planning & Promotion Division as
well as the presidents of affiliated companies. Full-time corporate auditors also attend meetings of the Committee on aregular 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 2021, the Executive Committee met 19 times.

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
108

The internal audit function is administered by the Group Internal Audit Division (staffed by twelve 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 corporate auditors every time they are
conducted and periodically to the Board of Directors and the Executive Committee.

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 corporate auditors and interviews were held as necessary. After deliberations andreporting by the Nomination and Remuneration Advisory Committee (with the committee’s secretariat being assisted byour corporate lawyers), of which independent outside directors comprise the majority, the results of the analysis andevaluation 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

FY2021 Evaluation Results
While the Board of Directors met all evaluation criteria, including size, composition, functions and roles, as well as
operation, and was found to be effective, we concluded that it is still necessary to steadily implement measures toimprove the functions of the Board of Directors, make those activities part of our daily operations, and continually review
the Board's functions in response to internal and external environment changes.

Progress on Issues identified last fiscal year(i) Further improvement of the Board of Directors’ functions
FY2021 Initiatives

One female director was appointed at the Annual General Meeting of Shareholders in June 2021
Skill matrix of the Board of Directors was developed
In the process of establishing the current Medium-Term Management Plan, a forum for discussion with outside
directors was set up (four times in total), in addition to discussions at the Board of Directors' meetings
Reviewed the criteria for items to be submitted for discussion at the Board of Directors’ meetings, focusing on
strategic importance and expanding the scope of delegation to the Executive Committee(ii) Further deepening of CSV management
FY2021 Initiatives

Set CSV practice as the management theme in the current Medium-Term Management Plan
Development, examination and formulation of strategies for each business segment, incorporating CSV
perspectives(iii) Further enhancement of information provision to outside officers
FY2021 Initiatives

Provision of opportunities to attend meetings of managers of departments and offices, etc. in addition to theprovision of materials and minutes of Executive Committee, which was already being implemented

109

Future Issues and Initiatives
We recognize the need to further improve the function of the Board of Directors by having a director other than an
executive director chair the Board of Directors’ meetings, as a general rule. We further recognize the need to enhancedeliberations and reporting by the Board of Directors to steadily promote the Medium-Term Management Plan andfurther deepen CSV management, and to further enhance the provision of information to outside directors.

Director Qualifications and Nomination Procedures
1. Policy and procedures for nominating director and corporate auditor candidates andremoving directors
Our Corporate Governance Guidelines set forth procedures for nominating and removing directors in addition to thequalifications of corporate auditors and procedures for nominating corporate auditor candidates. Under theseguidelines, a director or corporate auditor candidate must possess an outstanding personality, a wide breadth ofknowledge, abilities, experience, and high ethical standards. The guidelines also specify that candidates be nominatedregardless of factors such as sex, age, and nationality, with the aim of achieving greater diversity. In order to ensure
fairness and transparency in the nomination process, the selection of candidates for directors and corporate auditors isfinalized by the Board of Directors following a discussion by the Nomination and Compensation Advisory Committee,
which is comprised of majority independent outside directors. Selection of corporate auditor candidates is finalized by
the Board of Directors upon consent of the Board of Corporate Auditors.

2. Independence standards for outside directors and outside corporate auditors
Independence standards for outside directors and outside corporate auditors are stipulated in the Corporate
Governance Guidelines in line with the independence standards prescribed in the Guidelines Concerning ListingManagement, etc. established by the Tokyo Stock Exchange.

The Board of Directors Skills Matrix

Board Remuneration

110

The Board of Directors of Fuyo Lease has passed a resolution on the Company’s policy regarding how to determine
individual remuneration, etc. for directors. Fuyo Lease believes that enhancing the link between shareholder value andremuneration of Board of Directors will boost their morale and motivate them to improve our financial performance andshare price, leading us towards our goals of ensuring stable performance and growth, while enhancing our corporate
value. That is why we have introduced variable pay programs such as performance-based compensation and stockcompensation in addition to a base salary, which is provided as fixed compensation.
We determine base salaries in the light of our employees' salaries, average market salaries for directors, our financial
standing, and other relevant factors.
The actual amount of performance-based compensation is based on our consolidated performance as well as anindividual director’s contribution to our financial performance among other factors. In addition, indicators for
performance-based compensation are established by categorizing them into financial items, which are key performanceindicators for the Medium-Term Management Plan, and nonfinancial items, which include the environment andinvestment in human capital. Financial items are ordinary profit, ROA, shareholders’ equity ratio, and ROE on aconsolidated basis. Non-financial items are amounts of capital invested in expenses related to decarbonization andhuman resources related on a non-consolidated basis. As resolved by the Board of Directors, the President & Chief
Executive Officer is delegated to determine details regarding the amounts and timing of performance-based
compensation.

Method for calculating performance-based compensation

Performance-based compensation = base salary for each position x performance-based payment coefficient(*)* The performance-based payment coefficient is determined through a formula that combines the attainment percentage of thepreviously set targets and the year-over-year change percentage for consolidated operating assets, consolidated ordinary profit,and consolidated ROA, and is decided within a range of 0 to 200% by resolution of the Board of Directors after deliberations andreporting by the Nomination and Remuneration Advisory Committee. Compensation for directors at the level of senior managing
director and below incorporates an individual evaluation made by the President & CEO that considers business performance in the
director’s area of responsibility and a qualitative assessment.

The stock compensation plan (Board Benefit Trust, BBT) is designed to motivate Board members to help boost ourcompany's performance and corporate value over the medium- to long-term by making the link between theircompensation and our equity value clearer. Under this compensation plan, the Company's shares are acquired by a trust
using funds contributed by the Company, and the directors will be provided, on their retirement, with the Company's
shares and cash-equivalents to the market price of the Company's shares (in lieu of the provision of the Company’s
shares, an amount equivalent to the market value of the Company’s shares for a specified proportion, if therequirements specified in “Regulations for Provision of Shares to Officers” are met) in accordance with the Regulations
for Provision of Shares to Officers approved by the Board of Directors.
The ratio between the base salary and the variable pay plan is set at 1 to 0.7 based on the average compensation ratio
used by listed companies. The variable pay plan consists of performance-based compensation and stock compensation,and the ratio between the two is set at 5 to 7 in the light of the characteristics of the revenue structure of the leasing
business to provide higher incentives on a medium- to long-term basis.
Directors' compensation is discussed by the Nomination and Remuneration Advisory Committee in order to ensuretransparency and objectivity in determining the amounts. Compensation for outside directors and corporate auditors
consists only of fixed compensation because performance-based compensation and equity compensation are not reallyapplicable.
The company prescribes malus provisions providing that if a director causes significant damage to the Company or
engages in inappropriate conduct, the director's base salary or performance-based compensation will be reduced or the
director will not be paid and the director will no longer be eligible to receive stock compensation.
Board Remunerations (Fiscal 2021)

Directorclassification

Total amount(millions ofyen)

Directors(Outside Directors)

Breakdown of remunerations (millions of yen)
Number of
directors

Basic
remuneration

Performancelinked
remuneration

Nonmonetary
remuneration

393

247

68

78

10

45

45

(-)

(-)

4
111

Director
classification

Total amount(millions ofyen)

Board ofCorporate
Auditors members(Outside Auditors)

Breakdown of remunerations (millions of yen)
Number of
directors

Basic
remuneration

Performancelinked
remuneration

Nonmonetary
remuneration

66

66

-

-

6

(21)

(21)

(-)

(-)

4

* The above performance-linked remuneration comprises the amount, which shall be recorded in fiscal 2021.
* Non-monetary remuneration is a stock 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.

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.
Our Internal Audit Department, corporate auditors, and independent auditor share information about audit findings tomonitor the status and operation of the internal control system. The status of the internal control system operation isreported to the Board of Directors during a meeting held at the end of each fiscal year, and continuous improvements are
made in the light of the audit findings.

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Sustainability

Governance and Management

Code of Corporate Conduct

Code of Corporate Conduct
Chapter 1 Basic Policy of Fuyo General Lease Group

Sustainability

1. Social Responsibilities and Public Missions

Fuyo Lease Group's CSV

Always bearing in mind the significance of our social responsibilities and public missions, we commit ourselves tosound business management based on the principle of self-responsibility as a financial business group that consists
mainly of listed companies.
We endeavor to communicate closely with society, and to align our corporate conduct with social norms.

Solving Social Issues
through BusinessWe have considerable social responsibilities and public missions as a financial business group that consists mainly oflisted companies. We must be aware that we are required to fulfill both our social responsibilities and public missions,and the purpose of a private company at a high level.
First of all, we are expected to take social responsibilities, including economic, legal, ethical, and social contribution
responsibilities, as follows;

Social Report

Economic responsibilities such as pursuing reasonable profits, securing employment and efficient management;
Legal responsibilities to comply with laws and regulations as a member of society;
Ethical responsibilities to respect human rights and act in line with social norms; andSocial contribution responsibilities as a good corporate citizen that supports and grows with society.
To fulfill these social responsibilities and public missions, it is essential to gain the unwavering trust of our customers
and society through the Group's sound and appropriate business operations.
While great effort and time are required to gain the trust of our customers, that trust can be lost in an instant. A financial
business group's loss of trust can lead to a reduction of trust in the entire financial system.
We declare that we always bear in mind the significance of our social responsibilities and public missions, and commit
ourselves to sound business management based on the principle of self-responsibility. Furthermore, through activities
such as public relations activities, we endeavor to actively communicate with society at all times, and to ensure that ouractivities are fair and transparent in line with social norms.

Environmental 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

2. Implementation of Customer First Principles
We put our customers first and provide services at the highest quality to our customers.
We believe that gaining the trust of our customers is the basis for gaining the trust of shareholders, local communities,
and all other stakeholders.
We need to appreciate that we engage in financial service businesses centered on lease businesses in which we put ourcustomers first; in other words, our ongoing development is derived from our customers' prosperity.
"Putting our customers first" means that every single director and employee considers how he or she can serve as themost reliable consultant for our customers and provide the best services that meet the needs of our customers at all
times. The accumulation of such daily efforts can lead to us gaining the trust of our customers and appropriate profits.
We can exist as a corporation only after gaining a profit. Then, by using the profit to make new investments and create
new services, we can further enhance the trust of our customers.
In other words, "putting our customers first" and gaining the trust of our customers is the basis of secure and soundbusiness management, which results in gaining the trust of other stakeholders.
113Moreover, "putting our customers first" does not mean that we accept all requests from our customers or provide
services with no thought to profit. We should never forget that "putting our customers first" does not conflict with"earning profits," but rather the two are connected to each other.

3. Compliance with Laws and Rules
We strictly comply with all laws and regulation, and carry out fair and honest business activities in line with social
norms.
We respect local customs and cultures, as well as international standards and local laws in each region of the world.
We place ensuring compliance as the foundation of our Management Principle, based on which we strictly comply withall laws and regulations, and perform fair and honest business activities in line with social norms.
It is not our policy to achieve this principle by merely avoiding violations of laws and regulations. Instead, always bearing
social norms in mind, we act with a high level of self-discipline based on fully understanding the intent, purpose, andbackground of the establishment of laws and rules.
We also comply with international standards and foreign countries' laws and regulations, and respect the local customs
and cultures, as well as Japanese laws and regulations and social norms as a financial business group, that provide
services to overseas customers.
As laws, regulations, and social norms change with the times, we strive to accurately understand the underlying social
trends.
If we violate laws or regulations or act against social norms, we would be not only held legally liable but would also be
exposed to severe criticism from society. In addition, we could lose trust, our most valuable asset, which could, in somecases, shake the core elements of our business management.

4. Respect for Human Rights
We act with respect for the dignity and fundamental human rights of all persons, including our customers, directors,
and employees, and establish a corporate culture with a spirit that fully respects human rights.
Today, respect for human rights is a global standard of conduct. We are required to be strongly aware that we shall not
engage in, or allow others to engage in, discrimination or harassment for any reason (including based on factors such as
gender, nationality, race, ethnicity, religion and disability). Moreover, we take due care to protect privacy of others
because we have many opportunities to access information of various individuals.
The basic concept of respecting for human rights is to respect other people as human beings and to "put yourself in
another person's shoes." To conduct bearing this concept in mind is an extremely important platform for providing anenergetic and great work environment for our employees, and to gain the trust of our customers.
We should be vigilant of human rights and never forget that we act with the highest respect for the human rights of all
persons. Based on this recognition, we actively work on improving every single employees' awareness of human rights.

5. Blocking Relationships with Anti-social Forces
We block any relationships with anti-social forces that pose a threat to the order and safety of civil society.

We block any relationships with anti-social forces.
We do not provide any products or services to anti-social forces. We conduct an appropriate investigation before
entering into transactions in order to prevent any transactions with anti-social forces. If a counterparty to a transaction isfound to be an anti-social force after entering into a transaction, we will promptly cancel such transaction.

We take organizational actions.
If a relationship with an anti-social force is found, the top management will be promptly notified and we will takeorganization-wide actions.

We cooperate with external expert organizations.
We closely cooperate with external expert organizations such as the police, the National Center for the Elimination of
Boryokudan (anti-social forces), and lawyers on an ongoing basis, and address issues with due care for the safety of our114

directors and employees.

We will not hesitate to take legal measures and respond with a firm attitude.
We respond to anti-social forces with a firm attitude in both criminal and civil aspects as necessary and do not conduct
any backdoor transactions in response to unreasonable demands or attacks such as intimidation.

Chapter 2 Basic Attitude of Fuyo General Lease Group
1. Basic Attitude toward Customers
We always endeavor to provide satisfaction to customers, gain their trust and establish long-term confidential
relationships.
We strive to fully understand our customers and serve our customers faithfully.
We provide sufficient information to our customers and the highest level of comprehensive financial services.
We strictly manage customers' assets.
We endeavor to improve ourselves to possess excellent insights, as well as expertise and skills, to make ourselvesuseful to customers.
We act based on the principle of "putting our customers first" and always aim to provide the highest level ofcomprehensive services that satisfy the needs of our customers. To this end, we should be aware that all of our activities
lead to providing satisfaction to our customers and gaining their trust. We also note the following items in performing
acts in order to establish a long-term confidential relationships with our customers.
First, it is important to know our customers well. We collect sufficient information on our customers by carefully
listening and closely observing our customers.
We accurately understand the needs of our customers by putting ourselves in a customer's shoes.
We provide adequate information based on accurate knowledge and provide services that meet the needs of ourcustomers through making the most of our ability to provide comprehensive financial services.
We fulfill our promises to customers, and perform fair and honest business activities.
We always bear in mind that we store our customers' valuable assets with due care and strictly manage information of
our customers.
While it is important to become acquainted with customers, we do not offer nor receive entertainment or gifts thatdeviate from social norms or conduct any acts, such as cash loans, that may create an excessively familiar relationshipwith our customers.
We strive to improve ourselves to possess deep insights, as well as expertise and skills, to make ourselves useful tocustomers, and actively try to create and develop new business areas.

2. Basic Attitude toward Shareholders
To gain the trust of our shareholders, we endeavor to protect and increase our corporate assets.
We enhance and reinforce our internal control system by performing proper accounting and effective internal audits.
In order to communicate accurate business information to shareholders, we actively disclose information and improve
the transparency of business management.
We keep our shareholders' valuable funds with due care as a joint-stock corporation.
Therefore, to respond to our shareholders' trust and expectations, we endeavor to promote the protection andexpansion of our group's assets and to maximize our profitability.
In order to gain widespread understanding and trust from our shareholders, we maintain the accuracy and reliability of
our financial and tax accounting procedures, and monitor whether they function properly and effectively under a strict
internal control system. Moreover, we will further reinforce our independent internal audit functions and improve theinternal control system.
To those ends, we aim to achieve an "open management" style that is trusted by the markets through actively disclosing
appropriate information in a timely manner through opportunities such as the general meetings of shareholders, as well
as focusing on IR activities and maintaining a close two-way communications with shareholders.
115

3. Basic Attitude toward Local Communities
We perform functions as a good corporate citizen who grows with local communities.
We actively perform social contribution activities.
We are aware that activities related to environmental issues are mandatory requirements for the existence andoperations of a corporation and perform such activities voluntarily and proactively.
Through the corporate actions and activities of our individual directors' and employees', we have a deep involvementwith the local communities upon which our existence relies. Therefore, we conduct business activities while harmonizing
our Group's profits with the benefits of society, and perform these functions as a "good corporate citizen" whocontributes to the development of local communities. Furthermore, in order to respond to social changes over time, we
endeavor to closely communicate with society and respectfully listen to the opinions of society to ensure that ouractivities conform to social norms and meet the expectations of society.
We regard engaging in social contribution activities as one of our social responsibilities and engage in activities invarious fields. In addition, we actively disclose our corporate attitude and actual activities through media such as thedisclosure materials in order to gain the understanding of society. Moreover, we actively support volunteering activities
carried out by our directors and employees.
Today, environmental issues are not limited to preventing conventional industrial pollution but extends to issues
common to all humankind such as the disposal of waste, nature conservation, and preservation of the global
environment.
We acknowledge that we have a social responsibility to voluntarily and actively address environmental issues, andpromote the fulfilment of both economic development and environmental preservation.

4. Basic Attitude toward Employees
We help our employees lead more prosperous and fulfilling lives, and secure a comfortable and safe work environment
for our employees.
We create workplaces where workers respect each other and no discrimination or harassment takes place.
While responding to the diversification of workers' values, we are required to establish various employment and working
forms and vacation systems under which workers can lead more prosperous and fulfilling lives, and ensure that eachworker can exercise his or her individuality and achieve personal growth.
In order to address these challenges, we will create an attractive, free, and open-minded workplace where workers canfeel that their duties are worthwhile. We also strive to improve workers' sense of ethics through education and training
on compliance, and comply with labor laws and regulations, as well as caring for health and safety in the workplace.
Our basic philosophy is to respect human nature and protect fundamental human rights. Discrimination and harassment
are acts that violate human rights, which demotivate workers, disrupt order in the workplace, and lead to a deteriorationof the work environment. We do not permit any acts of discrimination and harassment in any forms and for any reasons.
We work to create a sound work environment where workers respect the human rights of other workers and understandeach other.
It is our basic policy to conduct fair and impartial employment screenings without discrimination. In conducting
employment screenings of employees, we make judgments based on the individual's abilities and qualifications without
any discrimination.

5. Basic Attitude toward Suppliers and Competitors
In purchasing products and services and ordering systems, we make decisions that are objectively based on factors
such as quality, convenience, and price, and maintain sound and transparent relationships with suppliers without
engaging in acts that can be regarded as creating excessively familiar relationships.
We require our suppliers to understand the Fuyo General Lease Group Code of Corporate Conduct.
We make efforts to approach corporate conduct with common sense, and engage in free competition in a fair andtransparent manner.

Suppliers
In purchasing products and services and ordering systems, we select suppliers by objectively and comprehensively
considering factors such as quality, convenience of service, price, and reliability.
116Regarding relationships with suppliers, we maintain sound and transparent relationships without engaging in acts thatcan be regarded as creating an excessively familiar relationship. To this end, we do not ask or receive any entertainment
or gifts in contravention of our internal rules.
Moreover, in order to maintain our credibility, we require our suppliers to understand the Fuyo General Lease Group
Code of Corporate Conduct.

Competitors
Due to the globalization of corporate activities and the expansion of a borderless economy, it is increasingly important to
conduct corporate activities in compliance with competition rules in the market.
As basic rules that are essential for the sound development of a free economic society, many countries have establishedlaws such as anti-monopoly acts for the purpose of maintaining and promoting fair and free competition. It is our
responsibility to comply with these laws, including with the philosophy behind such laws.
We promote complete compliance with laws and will not engage in any illegal acts or pursue profits throughunreasonable means. Furthermore, we will not conduct any unfair competitive acts such as formation of a cartel orabuse of an advantageous position.
In accordance with the principle of self-responsibility, we carry out fair, transparent, and free competition based on our
self-sustaining and independent spirit, which is a precondition of the market economy system.

6. Basic Attitude toward Politics and Government
We maintain sound and appropriate relationships with politics and government.
Many countries have established laws to regulate the participation of corporations in the political activities of politicalparties and political offices.
Public officials, for example, government officials, have duties entrusted to them by citizens as servants of all citizens.
Thus, government officials are required to maintain ethics pertaining to their duties. Laws and regulations also require
administrative systems to be fair and transparent.
Moreover, with respect to foreign public officials, domestic laws, mainly in OECD countries, have been developed
pursuant to ensure fair competition in international business activities.
Based on the recognition of this environment regarding relationships with politics (political parties and political offices)and government (supervisory agencies, etc.) inside and outside Japan, we maintain sound and transparent relationships
without engaging in acts that can be regarded as creating an interdependent relationship or an excessively familiar
relationship.
To this end, we comply with laws and regulations and never offer illegal political contributions or provide benefits. In
particular, we firmly maintain our attitude of avoiding any suspicious acts with respect to relationships with public
officials; as the saying goes, "don't straighten your cap under a plum tree (raising hands might seem as if one is
attempting to steal the fruit above)."

Chapter 3. Action Guidelines for All members of the Fuyo Lease Group
1. Maintaining Order in the Workplace
Each employee acts independently and autonomously with high ethical standards.
We cooperate and work with each other while respecting human rights and individuality to build an open-minded
workplace.
We eliminate empty formalities and obscure practices, etc.

Independence and rigorous ethical standard
We will work independently and autonomously with a rigorous ethical standard in carrying out our duties, and act basedon a thorough understanding of not only the wording of laws, regulations and rules, but also the spirit thereof, while
conforming to social norms. Furthermore, we faithfully exercise our work authorities without exceeding those bounds,
and strive to report, communicate and consult promptly.
We are aware that the results of our actions are entirely our own responsibility, and act accordingly. It is unacceptable to117

violate the rules, regardless of the reasons behind them whether it was for the benefit of the company, a superior or acustomer.

Respect for human rights and individuality
We respect each other's human rights and individuality, and do not engage in any form of discrimination. We also do not
engage in sexual harassment or any other forms of harassment.

Teamwork and performance of work duties
Although it is expected that each employee acquires expert knowledge and skills relating to their field to perform theirwork duties, that alone is not enough. An organization is based on the cooperation and teamwork of each and every
employee. It is a mistake to act of your own accord and disrupt teamwork, thinking that you can do something by
yourself. We bring together each individual's expertise and value teamwork to provide the best service to our customers.

Open-minded workplace
We create an open-minded workplace where employees can freely discuss anything without fearing their managers or
superiors.

Elimination of rituals and obscure practices, etc.
We do not engage in acts based on formal courtesies (rituals) or obscure practices, etc. between directors andemployees. For example, it is unnecessary for directors and employees to exchange mid-year and year-end seasonal
gifts, etc. Instead, we prioritize our basic policy of "putting our customers first".
In addition, directors and employees do not engage in money lending or solicitation of personal products, etc. among
themselves without due cause.

No personal activities in the workplace
We do not engage in unauthorized personal activities such as political and religious activities during working hours orwithin the company's facilities.

2. No Personal Use of Company Assets
We do not use company assets (expenses, products, and know-how, etc.) for private purposes.
Company assets are loaned or provided to us for the purpose of carrying out business and should not be used for private
purposes.

Expenses
As directors and employees of the Financial Services Group, we always act with awareness that great care is required indealing with money. We do not use or divert company expenses for private purposes.
Conversely, employees should make sure to charge for even small work-related expenses, such as transportation
expenses when going out for work purposes.
In this way we are able to get into the habit of distinguishing between business and personal expenses.

Products
Company products (novelty items and office supplies, etc.) are not to be used for private purposes. In order to discipline
ourselves, we should think and act in a way that treats any fixtures as company assets. Also, we refrain from using
company telephones and computers (e-mail and Internet) etc. for personal use unrelated to the performance of workduties.

Know-how, etc.
We recognize that intangible items such as the Group's know-how, etc. are company assets, and do not use them outsideof our work.

3. Appropriate Information Management118

We obtain external information by legitimate means and do not disclose any personal information or nonpublic
information concerning customers that we acquired in the performance of our work, or any confidential information
about the Group itself. In addition, information obtained is used only for work purposes, and not for private interests
such as insider trading, etc.
We respect intellectual property rights, including patent rights and copyrights.
We will strive to actively create and share knowledge to increase customer satisfaction.
In performing our work we will handle all manner of different information. Strict and appropriate management isrequired for all information that we obtain through work, such as customers' personal and nonpublic information,
confidential information concerning the Group itself and information held by others.
In addition, due to advances in the IT (information technology) revolution, there is increased risk of external information
leakage, intrusion into the company system by external parties etc., therefore the management of electronic information
has also become increasingly important.

Obtaining information
We obtain external information by legitimate means, such as through authorized channels, and by paying compensation
as necessary. We do not obtain confidential information by means that breach laws and regulations, or withoutobtaining consent from the relevant person.

Confidentiality
Unless there is a legitimate reason based on laws and regulations, or the relevant person has given consent, theinformation obtained through work is used only for the purpose of such work, and is carefully managed to ensure it is notleaked to external parties. Customers do business with us particularly trusting that we do not disclose secrets to otherparties. Protecting customers' secrets is a basic element of our work.

No unauthorized use, etc.
We do not engage in illegal investment activities such as insider trading, etc. or pursue personal interests by using
nonpublic information which we obtained through work. Moreover, we do not destroy, counterfeit, tamper with, or
illegally use the company's information.

Preventing leakage of information due to carelessness
It goes without saying that we do not intentionally leak information, but care must also be taken to prevent leakage due
to negligence. For example, in performing our daily work we properly manage documents and keep our desks orderly, as
well as lock cabinets etc. We refrain from conversation that leads to information leaks not only when in transit and atrestaurants, but also in elevators and cafeterias, etc. within the company. We also do not leak confidential information to
our families.

Disposal of information
We dispose of information that is no longer required, in accordance with company rules.

Joining or leaving the company
We do not use any secrets obtained while working at a previous place of employment at all, even if it is a document, etc.
created by we made ourselves. Also, after leaving the company, we do not disclose secrets obtained while employed at
the company to any other party. We do not use any intellectual property belonging to the company after leaving thecompany, even if we created it ourselves while a director or employee of the company.

Information disclosure
We disclose company information in accordance with the prescribed rules. When asked for interviews from externalpress or analysts, we consult with our managers or public relations department and follow their instructions.

Protection of privacy
When handling personal information we make sure it is truly necessary to conduct our work, that it is obtained in a legal
and fair way, and used and managed in a way which protects privacy at all costs.

Respect for intellectual property rights
119

We do not use information for which another party holds intellectual property rights (patent rights, copyrights andtrademark rights, etc.), in principle, unless the consent of the relevant person has been obtained. We give due
consideration not to infringe copyrights particularly for information obtained from magazines, literature and theInternet, etc.
Meanwhile, in order to maintain the company's competitive edge, we will protect our company's intellectual property,
which includes patents, copyrights, trademark rights, financial technology knowledge and know-how, and experienceand knowledge acquired through our work.

Using information within the GroupWe recognize that the Group itself has a wealth of knowledge and information, and actively utilize such information
within the Group while paying attention to confidentiality obligations, etc. to enhance customer satisfaction and theGroup's competitiveness.

4. No Conflicts of Interest
We act to ensure that the interests of the company or our customers are not harmed due to our own interests.
We do not use our status in the company for the interests of anyone other than the company.
We always act with the interests of the company or our customers as our top priority. We are careful not to put ourselvesin situations where we may be seen as acting in our own interests. Even when we have done nothing wrong, we need tobe careful that others around us may perceive that there is a conflict of interests. We are responsible for being faithful toour duties at the company and do not engage in any personal investment or business that may prevent us from making
reasonable judgments to optimize the company's interests.

Use of status
We do not accept personal benefits by using our work duties or the status thereof. We also do not seek personaladvantages from any third party. For example, we will never use our work duties or status thereof to request
entertainment or products, or cooperation with personal activities such as political or religious activities. Also, we do not
personally receive remuneration or commissions from our customers or their employees, etc., or engage in money
lending or borrowing.

Competing position
We do not place ourselves in a position where we compete with the company. We do not assume positions as directors or
employees of other rival companies, or engage in activities such as promoting or supporting the sales activities of otherrival companies.

Transactions involving relatives, etc.
We avoid engaging in transactions involving our family, close relatives and friends, etc. This is due to the fact that,compared to general customers, we are more prone to getting into a situation of having to provide some advantages.

5. Appropriate Personal Conduct
We do not conduct any acts that harm or damage the company's credibility or honor, not only as a part of our workduties, but also outside of work.
We observe the Road Traffic Act not only as a part of our work duties, but also outside of work, and as a matter ofcourse do not drink drive, or make another person drink drive.
When engaging in private activities outside the company we participate in a personal capacity, and do not use thecompany name or our position title without due cause.
We do not engage in any other business without permission.
In principle the company does not usually get involved in or interfere with private activities. However, if there is a risk ofdamaging the company's honor and interests, even private activities may be subject to disciplinary action.
We believe that the trust vested in us by customers and society is the foundation of our business. Therefore, even in
private activities that are separate from work, we are careful not to damage this trust and are rigorous in ensuring we
conduct ourselves appropriately.

Leading sound personal lives120

We are constantly aware that we are members of the Financial Business Group, and try to lead sound personal lives toavoid falling into economic collapse due to speculative behavior, or taking out guarantees or money lending andborrowing, etc. exceeding individual capabilities.

No drink driving
We fully recognize the tragedy of traffic accidents caused by drink driving, and absolutely do not drink drive ourselves, orallow others to do so.

Distinction between public and private lives
We do not abuse the Group's company name or our job titles, and avoid harming the company's honor and interests inorder to gain personal benefits, etc. We clarify whether those activities are conducted as directors or employees of ourcompany, or whether they are private activities so as to avoid any misunderstandings.

No other businessWe do not work at other companies or conduct business without permission. This is because holding concurrent posts is
prohibited by laws and regulations, or there may be conflict of interests.

6. Social Media Policy (Appropriate Personal Conduct 2)
We will not disclose confidential information within and outside the company as a matter of course, or personal
information and information obtained in the course of business regarding customers.
We recognize the existence of an unspecified number of people with diverse values, and do not transmit informationthat is contrary to the facts, or that could be misunderstood by, or cause discomfort to the receiving person.
We recognize that our own opinions and views could be perceived to be the views and opinions of the company, so westrive to behave in a way befitting of a member of the company.
We always keep in mind to make respectful remarks, and respond calmly when criticized by other persons.
We comply with various laws and regulations and try not to infringe any third party intellectual property rights andprivacy on social media.
In recent years, social media that allows general individuals to disseminate information and exchange opinions, etc. on
the Internet have been developing rapidly due to the spread of smartphones and other technology.
Examples of popular social media include blogs, YouTube, Twitter and Facebook, etc.
Meanwhile, there has been a succession of issues caused by information disseminated on social media.
There are many cases where information (remarks) that were casually posted developed into an incident, and thepersonal information of the person (employee) who posted the information was disclosed on the net, with even the
person's workplace (company) becoming the target of criticism.
In order to prevent such issues, the company has established a social media policy (moderate personal activities 2) as
our basic stance for employees' use of social media.
In addition, as with the moderation in personal activities mentioned in the preceding paragraph, even personal use of
SNS may be subject to disciplinary action if there is a risk of damaging the company's honor and interests.
Naturally, posting personal opinions on social media from the company's internal networks is restricted by the systems.

Characteristics of social media
They can be accessed by an unspecified number of users with diverse values
The speed of information dissemination is fastOnce information is posted it is almost impossible to erase
Even if a person posts anonymously, there is a high probability that the person who posted the comment will beidentified

Site Policy

Privacy policy

Customer-oriented Operational Policies

Basic Policy for Prevention of Money Laundering, etc.

©

Fuyo General Lease Co., Ltd.
121

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
Fundprocurement
through ESG financeParticipation in Initiatives
and Third-Party
Evaluation
Editorial Policy
Independent assurance"Integrated Report" PDF
download

Risk Management Training122

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 strictly complying with all 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 General 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, audits are
conducted on compliance and related risk management once a year by the internal audit department, and the findings
are used to consider improvements and other measures to further 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 General Lease Group Code of Corporate Conduct
The Fuyo Lease Group has formulated the Fuyo General Lease Group Code of Corporate Conduct, which specifies thebasic 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 Code ofCorporate Conduct. These programs and courses ensure that all employees are aware of its policies and guidelines, andevaluation of the training is regularly reviewed.

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 Code of Corporate Conduct and other corporate regulations, harassment cases, misconduct ininformation management or other potential infringements. The whistleblower systems accept anonymous reports toprotect 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.
123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 2021, 11 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 prohibition of misconduct, including collusion, cartels, abuse of superior position, inappropriate entertainment andgifts, and illegal political donations is clearly stipulated in Chapter 2 “5. Basic Attitude toward Suppliers andCompetitors" and “6. Basic Attitude toward Politics and Government," and Chapter 3 “2. No Personal Use of Company
Assets" and “4. No Conflicts of Interest" of the Fuyo General Lease Group Code of Corporate Conduct. 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 Code of Corporate Conduct 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 Code strictly prohibits the forging of collusive ties with political and administrative authorities andbusiness partners, and the private use of the company's assets. In fiscal 2021, no infringements related to corruption
were found in the Group. Additionally, no employees were dismissed or subjected to disciplinary action due tocorruption.
In fiscal 2021, 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. *Compliance Training (fiscal 2021)
Group training and workplace training
Participant

Subject# of session

New recruit

Introduction to compliance, Fuyo General Lease Group
Code of Corporate Conduct, Unreasonable demand

1

1st year employee (Generalist
track)

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

1

5th year employee (Generalist

Response to accidents and troubles

1
124Participant
track)

Subject# of session

Newly appointed head of
department/branch office

Issues to be understood as responsible officers toensure compliance1

Newly appointed assistantmanager/section chief

Prevention of power harassment, sexual and maternity
harassment

2

All employees

Information management and prevention of wrong
emails1

Directors and head of
department/office/branch
officeImportance of the whistleblower system that directors
and head of branch/department should understand1

E-learning
Participant

Subject

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

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

2

General issues on compliance1

All employees# of session

Prevention 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 itsPolicy for the Prevention of Money Laundering.In addition, we have established a system to preventmoney 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.

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.

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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.

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 2021, we focused on information security throughworkplace training for all employees, and we provided training on the confidential information management andpersonal information protection for first year employees (generalist track).
In fiscal 2021, 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
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Environmental ReportSocial Report
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Environmental and Social
initiatives
Fundprocurement
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Evaluation
Editorial Policy
Independent assurance"Integrated Report" PDF
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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

126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

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
127

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* The newest registration certificates will be posted as soon as issuance procedures have been completed.

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.
128

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

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
129

FGL Circular Network
Organizational restructuring is currently underway, so registration certificates will be posted once this has been
completed.

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.

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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
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initiatives
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Each Group Company's Environmental and Social initiatives

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

Sharp FinanceAccretive

INVOICENOC Outsourcing & Consulting

YAMATO LEASEWorkVision

FUJITA

Social Report

Aqua Art

FGL Techno-Solutions

Governance andManagement

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

Each Group Company's
Environmental and Social
initiatives

FGL Circular Network,
FGL LeaseUp Business Service

Fundprocurement
through ESG financeParticipation in Initiatives
and Third-Party
Evaluation
Editorial Policy
Independent assurance"Integrated Report" PDF
download

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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, carmaintenance/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
Fundprocurement
through ESG financeParticipation in Initiatives
and Third-Party
Evaluation
Editorial Policy
Independent assurance"Integrated Report" PDF
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Initiatives to contribute to customer safety133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 2021, we
held 31 seminars for major companies, medium-sized companies, and small to mid-sized companies, which wereattended by a total of 1,208 participants. At the seminars, we provided the attendees with lectures, paper tests, video
training programs, and driving aptitude tests using equipment.

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 2021, continuing from the previous year, we donated funds to support children orphaned by traffic
accidents.

Results of support provided from FY 2014 to 2021
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
134Details of Activities

Donation

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

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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

Fundprocurement
through ESG finance"Sharp Finance" website
Fuyo General Lease and Sharp Finance have combined their expertise to meet diversified and sophisticated customer
needs.

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

Participation in Initiatives
and Third-Party
Evaluation
Editorial Policy
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* 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

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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

Governance andManagement

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

Each Group Company's
Environmental and Social
initiatives
Fundprocurement
through ESG financeParticipation in Initiatives
and Third-Party
Evaluation
Editorial Policy

Cambodia support activities

Independent assurance

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 conducted 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.

We handed stationery directly to about 120 elementary school students

Environmental Report

Teaching hand-washing with soap

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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.

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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
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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.

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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“NOC Outsourcing & Consulting” website

Providing BPO services that meet the needs of the times
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.

The recent decline in the number of people coming to work due to the spread of COVID-19 has prolonged risks tobusiness continuity for companies. This has raised the question of what tasks can be handled with minimum personnel.

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As a result, there is a growing need to develop telecommuting environments and BPO services as part of BCP measures.
It has promptly engaged in supporting clients who have already entrusted it to carry out payroll processing to prepare
documents related to payment applications for employment adjustment subsidies.
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.

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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

Fuyo General Lease (60%)
YAMATO HOLDINGS CO., LTD. (40%)

Business Activities

Truck leasing and installment, used car sales

Fundprocurement
through ESG finance"YAMATO LEASE" website

Participation in Initiatives
and Third-Party
Evaluation

Supporting vehicle procurement to resolve management issues faced bytransport companies

Editorial Policy

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.

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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.

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 2021, YAMATO LEASE supported 474 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
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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.

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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.

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

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.
* 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)

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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
Fundprocurement
through ESG financeParticipation in Initiatives
and Third-Party
Evaluation
Editorial Policy
Independent assurance"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.

FUJITA's 3Rs148

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.

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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

Aqua Art website

AQUA ART interior aquarium
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.

Social 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(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.

(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.

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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 and tropical 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 andplants, helping to protect water resources and living creatures.
Tropical fish and aquatic plants are procured through nurseries to maintain and protect the natural environment. At thesame time, the Company is also working to breed its own. We also strive to actively reuse and recycle old aquariums andapparatus.

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)

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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

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.

Social Report
Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fundprocurement
through ESG financeParticipation in Initiatives
and Third-Party
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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
Fundprocurement
through ESG financeParticipation in Initiatives
and Third-Party
Evaluation
Editorial Policy

Outline of FGL Circular Network

Independent assurance

Profile"Integrated Report" PDF
download

FGL 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 andimport/export, and buying and selling of used goods

FGL Circular Network website >153

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.

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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.
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

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.
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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.

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Yorii Eco Space,ECO KEIKAKU CO.,LTD

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HOME

Sustainability

Fund procurement through ESG financeFund procurement through ESG finance
The Fuyo Lease Group is promoting business strategies based on the CSV approach, and proactively advancing ESG
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.

Issuance of Green Bonds

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

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)

Social ReportIssuance of Sustainability-Linked Bonds

Fundprocurement
through ESG finance

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)

Participation in Initiatives
and Third-Party
Evaluation

Issuance of Sustainability Bonds"Integrated Report" PDF
download

Governance andManagement
Each Group Company's
Environmental and Social
initiatives

Editorial Policy
Independent assurance

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)

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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
Fundprocurement
through ESG finance

Condition decision date

December 18, 2020

Issue date

December 24, 2020

Participation in Initiatives
and Third-Party
Evaluation

Redemption date

December 24, 2027

Editorial Policy

Ratings

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

Independent assurance"Integrated Report" PDF
download

Third-party Assessment of Eligibility
Ministry of the Environment's Model Case for Issuance
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

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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. However, 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, addition to switching all of the electric power used at theGroup’s head office building to RE100-compliant electricity, overseas affiliates were also encouraged to use renewableenergy. Going forward, we will work to achieve medium-term targets by switching to renewable energy at all businesssites.

Status of Progress
Renewable energy usage rate for group electricity consumption: 44% (as of March 31, 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)
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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 250 organizations located in 31 prefectures throughout
Japan. As of March 2022, the two programs have delivered a cumulative combined total of over five billion yen. We willcontinue to advance both programs to actively support companies and local governments that are engaged indecarbonization.

Status of Progress
Cumulative amount: 6.46 billion yen (as of March 31, 2022)

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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.

Fuyo Lease Group's CSV

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

JCR Sustainability Bond Rating （1945KB）

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.

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(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

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Fund procurement through ESG 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-

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

Third-party assessment of green bond eligibility

Independent assurance

JCR green bond rating"Integrated Report" PDF
download

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）

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)163

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）

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Fund procurement through ESG 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%

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”).

Ratings

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

Third-party assessment of green bond eligibility
Ministry of the Environment Financial Support Programme for Green Bond Issuance

Environmental Report

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

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)

Pre-issuance Report

Announcement of investment in the Green Bond
These are the investors who have announced that they will invest in the Green Bond.
165

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
As of the end of July 2020, the allocation of capital raised for the Green Bond is as follows:We plan to continue updating
our website annually with disclosures related to the latest information on the allocation of capital raised through green
bonds.
Amount raised“Fuyo 100% Renewable Electricity Declaration Support
Program”
Program A (Green Bond)

5 billion yen

Amount of capital
allocated (End of July2021)
2.71 billion yen

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

Total amountspent on
Program A(Oct. 2019 to July
2020）

Expected positive environmental impacts―

Newly created renewable energy (power
generated):0MW-dc

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Total amountspent on
Program A(Oct. 2019 to July
2020）

Property type

Expected positive environmental impacts

2. Energy-efficient equipment (equipment
covered by the Eco-Lease Promotion
Project Subsidy Program or equipmentwith 10% or more improved energy
efficiency*1)
Projects with 30% or more improved
energy efficiency
Projects with 10% to 30% improved energy
efficiency―
2 million yen / 1
organization

3. Devices that are compliant with the Act
on Promoting Green Procurement
Information equipment, office automationequipment, etc.

89 million yen /11 organizations

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

11 million yen / 1
organization

Promotion of low carbon anddecarbonization in companies andorganizations participating in RE100 and the
100% Renewable Electricity Declaration RE
Action*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

End of July 2020

Number of domestic
participatingcompanies andorganizations

Power
consumption(Total)Number of domestic
participatingcompanies andorganizations

Power
consumption(Total)RE100

20 companies

Approx. 17 TWh

35 companies

Approx. 26 TWh

100% Renewable
Electricity
Declaration RE
Action0 organizations(Established in Oct.
2019)

0 GW
(Established in
Oct. 2019)

71 organizations

Approx. 914
GWhAnnual 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）

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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

Sustainability
Fuyo Lease Group's CSV
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through Business
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Governance andManagement
Each Group Company's
Environmental and Social
initiatives
Fundprocurement
through ESG financeParticipation in Initiatives
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Evaluation
Editorial Policy
Independent assurance"Integrated Report" PDF
download

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.

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.

Japan Circular Economy Partnership (J-CEP)
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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.

MSCI Japan ESG Select Leaders Index
169

The MSCI Japan ESG Select Leaders Index is a stock index operated by
MSCI Inc. to target Japanese companies in various industries that havehigh ESG performance. The GPIF also manages its ESG investment bytracking 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.

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. In fiscal 2021, the Company obtained
the highest-level ranking in the DBJ Environmental Rating for the tenthconsecutive year for its exceptionally advanced environmentallyconscious 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.
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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 3rd Nikkei SDGs Management Survey in 2021, our company wasrecognized as a 4-star company (a deviation between 60 and 65) in theoverall evaluation.

Environmental Communication Awards

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 2022
Certified Health and Productivity Management Organization Recognition
Program, a scheme run by the Ministry of Economy, Trade and Industry(METI) and Nippon Kenko Kaigi.

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Editorial Policy
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 2021 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
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
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

Fuyo Lease Group's CSV
Solving Social Issues
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Environmental ReportSocial Report
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Each Group Company's
Environmental and Social
initiatives

Reporting organization

Fundprocurement
through ESG finance

Reporting period

Participation in Initiatives
and Third-Party
Evaluation* Some reports include reports from outside the reporting period.

Editorial Policy

Update time

Independent assurance

Fuyo General Lease Co., Ltd. and its 52 consolidated subsidiaries and 8 affiliated companies
Fiscal 2021 (April 1, 2021 to March 31, 2022)

November 2022 (previous information was updated in September 2021)* The English version was updated in December 2022.

"Integrated Report" PDF
download

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.

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.
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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

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Sustainability“Integrated Report” PDF download“Integrated Report” PDF download“Integrated Report 2022”“Integrated Report 2021”“Integrated Report 2022”(12366KB)"Consolidated financial
statements 2022"(1334KB)“Integrated Report 2021”(4761KB)
Sustainability Website
2021 Archive (14129KB)

Sustainability
Fuyo Lease Group's CSV
Solving Social Issues
through Business
Environmental ReportSocial Report“Integrated Report 2020”“Integrated Report 2019”“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”

Each Group Company's
Environmental and Social
initiatives
Fundprocurement
through ESG financeParticipation in Initiatives
and Third-Party
Evaluation
Editorial Policy
Independent assurance“Integrated Report 2018”(6714KB)“Integrated Report 2018”
full version (7645KB)

Site Policy Privacy policy Customer-oriented Operational Policies
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Governance andManagement"Integrated Report" PDF
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