Fuyo Lease CSR Website

2020
ArchiveContents

CSR
Fuyo Lease Group's CSR

P4

Solving Social Issues through Business

P27

Environmental Report

P48

Social Report

P98

Governance and Managemnet

P152

Each Group Company's Environmental and Social initiatives

P187

External Evaluation

P216

Editorial Policy

P219

Independent assurance

P221"Integrated Report" PDF download

P223

1

Top > CSR

CSR
FuyoLeaseGroup's
CSR

SolvingSocialIssues
throughBusiness

EnvironmentalReportSocialReport

GovernanceandManagemnet

EachGroup
Company's
EnvironmentalandSocialinitiatives

ExternalEvaluation

2

"IntegratedReport"PDF
download"IntegratedReport2020"（5649KB）

Otheryears'reportsarehere

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DisclosurePolicy

EditorialPolicy
Independent
assuranceForinquiriesandcommentsregarding
theCSRactivities,
pleasecontact:

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3Top > CSR > FuyoLeaseGroup'sCSR

FuyoLeaseGroup'sCSR
Message from the
President

Our Thoughts on CSRManagement Philosophy

Materiality

CSR

Fuyo Lease
Group's CSR

Message fromthe President

Fuyo Lease Group and
Its Stakeholders

Management
Philosophy
Our Thoughts
on CSR
Materiality
Fuyo Lease
Group and Its
Stakeholders

Solving Social
Issues throughBusiness
Environmental
ReportSocial Report
Governance andManagemnet
Each Group
Company's
Environmental
and Social
initiatives

4External
Evaluation
Editorial Policy
Independent
assurance

Disclaimer

DisclosurePolicy

Copyright(C)FuyoGeneralLeaseCo.,Ltd.AllRights
Reserved

Privacypolicy

5Top > CSR > FuyoLeaseGroup'sCSR > MessagefromthePresident

MessagefromthePresident
Wewillachievesustainablegrowthasacompanywhile
addressingsocialissuesbyexpandingintonewbusinessareasbeyondtheframeworkofleasing

CSR

Fuyo Lease
Group's CSR

Message fromthe PresidentManagement
Philosophy
Our Thoughts
on CSR
Materiality
Fuyo Lease
Group and Its
Stakeholders

President&ChiefExecutiveOﬃcerYasunoriTsujita

ConcentratedInvestmentinStrategicAreas
andFrontiersforFurtherGrowth
FuyoLeaseGroupʼsﬁve-yearMedium-termManagementPlan,FrontierExpansion2021,isnowinits
fourthyear.ThenameFrontierExpansioncomesfromtheideathatwearetakingacourageous
stepforwardintonewﬁeldswhilevaluingboththeGroupʼsaccumulatedknow-howintheleasing
businessandthetrustthatcustomersplaceinus.Thisapproachisinlinewithourcompanyʼs
corporateslogan,“Gowherenoonehasgonebefore.”Theresultsoftheseeﬀortsarereﬂectedinthefactthatouroperatingresultsforﬁscal2019far
exceededtheinitialvaluesthatweresetforourinterimgoal.Therearetwomainfactorsbehindour
6Solving Social
Issues throughBusiness
Environmental
ReportSocial Report
Governance andManagemnet
Each Group
Company's
Environmental
and Social
initiatives

steadygrowth.Onewasthesteadyincreaseinoperatingassetsinstrategicareas,whichwasastrongdriverofgrowthfortheGroupasawhole.Theotherwasthesuccessofmeasuresaimedatexpandingfrontiers,suchasM&A,capitalalliances,andbusinessalliances.
Theneedsofsocietyandcustomersaremorediversethaneverbefore,andwecannotachievesustainablegrowthifwecontinuetodobusinessasusual.Wewillcontinuetoactivelyinvest
managementresourcesinstrategicareasandfrontiersbyalwaysconsideringtheoptimalwaytoutilizeourstrengthsineachbusinessfromamedium-tolong-termperspective.

FiscalYear2019Review

Lookingbackonﬁscal2019,theJapaneseeconomywasonaslowrecoverytrendagainstthebackdropofimprovementstotheemploymentandincomeenvironment.However,inadditionto
U.S.–Chinatradefriction,theimpactoftheglobalspreadoftheCOVID-19inthelatterhalfoftheﬁscalyearhascreatedanunavoidablyuncertainsituationgoingforward.
Inthisenvironment,theGroupcontinuedtoachieverecordearnings,followingthetrendofﬁscal
2018,withsalesof¥712.3billion(up15.2%yearonyear)andordinaryproﬁtof¥44.0billion(up12.6%yearonyear).Thiswasduetothesteadyaccumulationofassets,especiallyinstrategicareas,aswellasthefull-yearperformanceofINVOICE,whichjoinedtheGroupinﬁscal2018asa
providerofBPO(businessprocessoutsourcing)services*1.

StrategicAreaandFrontierGrowthInordertoselectandconcentrateonstrategicareas,ourMedium-termManagementPlan,Frontier
Expansion2021,promotesbusinessportfoliomanagementbasedontheconceptofzone
management,whichdividesbusinessareasintofourzones.
ConventionalleaseandﬁnancebusinessesarepositionedascoreareasinthePerformanceZone,
andtheyaregeneratingcontinuousandstableearnings.RealEstate,Medical&Welfare,Energy&Environment,Aircraft,aswellasotherﬁeldsarepositionedasstrategicareasintheTransformation
Zone,andwehaveconcentratedourmanagementresourcestoachievespeedymanagementandpromotebusinessexpansion.Furthermore,NewDomainsarepositionedasafrontierwithinthe
IncubationZone,andwehaveactivelyinvestedinnewbusinessestosecurebusinessesthatwill
growintostrategicandcoreareasinthefuture.
Inthisway,wehaveclearlydeﬁnedthepositionofeachbusinessareaandimprovedtheperformanceofeachbusinesswithoutcompromisingourpolicies.Webelievethishasledtostable
growth.Theshareofordinaryproﬁtaccountedforbystrategicareasandfrontiersrosefromapproximately30%inﬁscal2016,beforethestartoftheMedium-termManagementPlan,to56%in
ﬁscal2019.Inﬁscal2021,theﬁnalyearoftheplan,theratioofstrategicandfrontierareasis
expectedtonearlydoubleto59%comparedto31%forthecoreareas.

7

External
Evaluation
Editorial Policy
Independent
assuranceBPOandMobilityBusinessasUp-andComingGrowthDrivers
Acloserlookattheresultsofﬁscal2019revealstwomajorchanges.
Firstofall,BPOservices,whichwerepositionedintheTransformationZone,hasgrowntobecomethedrivingforcebehindtheGroupʼsperformance.Inrecentyears,Japanesecompanieshavefaced
thechallengeofimprovingemployeeproductivityinresponsetoadeclineinthelaborforceandthegovernmentʼspromotionofwork-stylereforms.Asaneﬀectivemeanstoresolvethischallenge,wehaveendeavoredtoexpandourBPOservicebusinessinthebeliefthattherewillbeanincreaseinthedemandforBPO,whichinvolvesthepartialoutsourcingofbusinessprocesses.InAugust2019,
NOCOutsourcing&Consultingbecameaconsolidatedsubsidiary.Thishasaddedawiderangeofbusinessoutsourcingservicesandconsultingcapabilities,includinghumanresources,generalaﬀairs,andsalesadministrationtotheGroup,establishingafullrangeofserviceprovisionsystems
inconjunctionwiththebusinessdomainsofAccretive,INVOICE,andothers.Bycombininguniqueservices,theGroupisabletoprovideoptimalsolutionstoitscustomers.Thisisamajorstrengthofthecompany,andwearemakingsteadyprogressinestablishingapositioninthisarea.
Second,wepositionedtheMobilityBusinessasseedsforfuturegrowthintheTransformationZone.
Currently,theautomobileindustryisinaperiodofmajorchangeasdescribedbykeywordssuchas
CASE*2aswellasMaaS*3,andthewaypeopleandgoodsaretransportedinthefutureisabouttoundergomajorchanges.Thelogisticsindustryisalsofacinganumberofchallenges,includinganincreaseinthevolumeofdistributedgoodsandadeterioratinglaborshortage.AttheGroup,we
seetheresolutionofthesechallengesasmajorbusinessopportunities,andwewillexpandourbusinessscopebeyondthetraditionalframeworkofautomobileleasestoincludebusinessesrelated
tovehicles,logistics,andwarehouses.InApril2020,wemadeYAMATOLEASEaconsolidated
subsidiary,andwiththeadditionofthecompanyʼsdistribution-truckbusinessassetsaswellasa
newcustomernetwork,wetookasteptowardexpandingourfuturebusinessscope.Furthermore,byprovidingBPOservicesandutilizingtheknow-howofoverseasgroupcompaniessuchasTDF*4
andPRC*5,wehopetocontributetosolvingthesocialissuesthatfacethelogisticsindustry.

NewDomainsthatExpandBusinessAround
CreatingSharedValue(CSV)between
societyandcompanies
Inconsideringnewbusinessdomainsinaglobaleconomywithincreasinguncertainty,Iplacegreat
importanceontheconceptofCSV*6,whichaimstoachievethesustainablegrowthofcorporationbysolvingsocialissues.Theworldisfacingvariousglobalissuessuchasthoserepresentedbythe
SDGs,andinlinewiththeCOVID-19pandemic,newsocialchangesunderthemonikersofthe“newnormal”and“aftercorona”arealsoexpected.Webelievethatifwecanaddresstheseissues
headoninourbusinessdomains,itwillleadtotheacquisitionofnewblueoceanmarketsandtheexpansionofexistingmarkets.

8Atpresent,theGroupisfocusingitsmanagementresourcesonprojectsthataddresssocialissues
suchasclimatechange,theenhancementofMedical&Welfareservices,andtheimprovementofcorporateproductivity.
Intheareaofclimatechange,weareprovidingvariousservicestosupporttheintroductionofrenewableenergyaftertheendoftheFIT*7system.Onesuchservice,thegreenelectricitysupply
services(PPAservices)*8,hasalreadyreceivedanumberofpreliminaryorderssincethestartoffullscalesalesinthesecondhalfof2019,makingusawareofthehighdemandforthisservice.
Additionally,inOctober2019,webegantheFuyo100%RenewableElectricityDeclarationSupport
Program(P20),apreferentialﬁnancingprogramforbusinessesandorganizationsthathavejoined
RE100*9andthe100%RenewableElectricityDeclarationREAction*10.Thisprogramhasbeen
recognizedforitssocialsigniﬁcancetosupportthepromotionofrenewableenergybyawiderange
ofentitiesfromcompaniestolocalgovernmentstomedicalandeducationalinstitutions.InFebruary
2020,theprogramwasawardedtheGoldPrize(Minister'sPrize,theMinistryofEnvironment)intheBondcategoryoftheESGFinanceAwardsJapan.
Furthermore,lookingtowardthenextMedium-termManagementPlan,whichwillbeginin2022,wewouldliketoaddressnewsocialissuesandprepareevenmoregrowthdriversbyworkingwithventurecompaniesthathavealreadyformedcapitalandbusinessalliances,suchasSynspective,
whichprovidessolutionsusingsatellitedata,andHiBot,whichdevelopsandmanufacturesrobots
thatcanbeusedinspecialenvironmentsthatarediﬃcultforpeopletoaccess.

TheIdeasofEachandEveryEmployee
ImprovetheOverallStrengthoftheGroupAsIhavebeenrelayingtheconceptandpracticeofCSVwithinthecompanyfromtimetotime,
moreandmorebusinesseshaveemergedfromtheviewpointofsolvingtheproblemsfacingsociety
andcustomers.Inthefuture,wehopetodeepeneachemployeeʼsunderstandingandpracticeofCSVthroughtrainingandworkshops.Ihopethatbydiscussingwhatsocialvalueweprovidetoourcustomersandsocietythroughourdailywork,andbygainingself-awarenessofthis,eachandeveryoneofuswillworkfromaCSVviewpoint.
PeoplearetheGroupʼsgreatestasset.Ibelievethatwecancontinuetogrowonlywhenall
employeesareabletorealizetheirfullpotential.InJune2020,weconsolidatedthefunctionsofthegroupcompanies,includingourheadoﬃce,inKojimachi,Chiyoda-ku,Tokyo.Thenewoﬃce
providesavarietyofwaysforemployeestoworkcomfortablyandeﬃciently,anditisaplace
wherecommunicationacrosscompanyboundariescanbeinvigorated.Inthefuture,wehopethatthisoﬃcewillfurtherdeepenpersonnelexchangeswithintheGroupaswellascooperationinbusinessoperations,leadingtoimprovementsinouroverallcapabilities.

TowardstheLong-TermDistributionof
ProﬁtstoShareholdersandSustainable
Growth9

Wepaidacashdividendof¥205persharefortheﬁscalyearendedMarch2020,whichisanincreaseof¥17yearon-yearwithapayoutratioof23.5%.FortheﬁscalyearendingMarch2021,
weforecastacashdividendof¥220pershare,anincreaseof¥15,withapayoutratioof24.4%.As
forCOVID-19,thereareconcernsaboutitsimpactontheRealEstateandAircraftbusinesses,but
inordertoexpandourstrategicareasaswellasfrontiers,andachievefurthergrowth,wewillstrive
tostrengthenourmanagementbaseandﬁnancialstructurethroughtheenhancementofshareholdersʼequity,andwewillreturnproﬁtstoshareholdersthroughthecontinuationofstable,
long-termdividends.
TheGroupʼsgoalisnottogeneratelargeproﬁtsinonespeciﬁcbusinessarea,buttomaintainabalanceofmultiplebusinessdomainsthatgeneraterevenueofacertainsize.IfIweretolikenittoamountain,ourgoalisnottobecomeanindependentmountainlikeMt.Fuji,buttoformamountainrange-likerevenuestructurethatislikeYatsugatakeanditsmultiplepeaks.Wewillrealize
sustainablegrowthasweconstantlyinvestmanagementresourcesingrowthmarkets,regardlessoftheconventionalleasingbusinessframework.
WeattheFuyoLeaseGrouparenotafraidofchangesintheworld.Instead,weseethesechanges
inapositivelightasseedsforfuturegrowth,andweboldlytakeonchallengesinnewdomains.The
corporatesloganoftheFuyoLeaseGroupis“Gowherenoonehasgonebefore,”andasacompany
thatpursuesthiswiththefrontierspiritofeachandeverymemberoftheGroup,weaskthatyou
continuetohavehopeinus.

10

*1 BPO(BusinessProcessOutsourcing)Service:Aservicethatprocessessomeorallofbusiness
operationsonbehalfofothercompaniesbyusingspecializedskillsandknow-how.
*2 CASE:Atermthathasbeencoinedfromtheinitiallettersoffourautomotivetrends:
Connected(connectedcars),Autonomous(autonomousdriving),Shared&Service(sharedcarsanddrivingasaservice),andElectric(electriﬁcationofvehicles).
*3 MaaS:AnacronymforMobilityasaService,whichindicatesthecreationofservicesbasedonmeansoftransportation(mobility).
*4 TDF:TDFGroupInc.,acompanythatengagesinrental,leasing,andsalesofpickuptrucksinNorthAmerica.
*5 PRC:PaciﬁcRimCapital,Inc.,acompanythathandlesoperatingleasesformaterialhandlingequipmentmainlyintheUnitedStates.
*6 CSV:CreatingSharedValue,aconceptthataimstocaptureandbalancebotheconomicandsocialvalue.
*7 FIT:Feed-in-Tariﬀ,asystemforpurchasingrenewableenergyataﬁxedpriceforacertain
periodoftime.
*8 Greenelectricitysupplyservices(PPAservices):Abusinessinstallingsolarpowersystemsoncustomersʼfacilityrooftopsandotherareas,thendirectlysupplyingcustomerswithenergy.
*9 RE100:Aninternationalinitiativeaimedatsourcing100%renewableenergyforallbusinessactivities.
*10 100%RenewableElectricityDeclarationREAction:EstablishedinOctober2019.Aninitiativeforsmall-andmedium-sizedcompanies,organizations,andmunicipalitiesnotcoveredby
RE100todeclarethattheywillconverttheelectricityconsumedintheirbusinessactivitiesto100%renewableenergy.

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11Top > CSR > FuyoLeaseGroup'sCSR > ManagementPhilosophy

ManagementPhilosophy
We support corporate activities through our leasing
business with view to contributing to development of
the society.
We maintain customer's ﬁrst philosophy, providing
best services.
We aim to earn high marks from shareholders andmarkets while pursuing creativity and innovation.
We create a challenging and rewarding workplace
where employees think and act on their own.

CSR

Fuyo Lease
Group's CSR

Message fromthe PresidentManagement
Philosophy
Our Thoughts
on CSR
Materiality
Fuyo Lease
Group and Its
Stakeholders

Solving Social
Issues throughBusiness
Environmental
ReportSocial Report
Governance andManagemnet
Each Group
Company's
Environmental
and Social
initiatives

12External
Evaluation
Editorial Policy
Independent
assurance

Disclaimer

DisclosurePolicy

Copyright(C)FuyoGeneralLeaseCo.,Ltd.AllRights
Reserved

Privacypolicy

13Top > CSR > FuyoLeaseGroup'sCSR > OurThoughtsonCSR

OurThoughtsonCSR
Practicing CSR based on our Management
Philosophy
Based on our Management Philosophy, the Fuyo Lease Group focuses on supporting "corporate activities
through our leasing business with view to contributing to development of the society" as the foundation

CSR

Fuyo Lease
Group's CSR

of CSR activities that need to be prioritized and addressed. We are working together as a group to carryout these activities.

Message fromthe President

Contributing to the society through leasing
business
We use various ﬁnancial functions including leases to support customers' capital investments to solve
environmental and social issues. We also contribute to the creation of a closed loop society through the
3Rs (reduce, reuse, recycle) of assets whose leases have expired.

Through the use of various ﬁnancial functions, we support
customers' capital investments to solve environmental and social
issuesFuyo Lease supports customers' capital investments through the use of various ﬁnancial functions,which leads to solving of the various issues society faces.
We support environmentally-friendly, healthy, and safe lives. For example, in regards to theManagement
Philosophy
Our Thoughts
on CSR
Materiality
Fuyo Lease
Group and Its
Stakeholders

Solving Social
Issues throughBusiness
Environmental
Reportenvironmental impact, we engage in the leasing of energy-saving equipment, renewable energy
equipment, leasing eco-cars and the ESCO (Energy Service Company) service among others. In regards

Social Reportto support for social life, we lease medical equipment, food-related equipment, aircraft, railroad
equipment, and disaster prevention- and crime prevention-related equipment.

Governance andManagemnet
Each Group
Company's
Environmental
and Social
initiatives

14External
Evaluation
Editorial Policy
Independent
assurance

Promote 3Rs for assets whose leases have expired and contributeto the creation of a closed loop society
We contribute to the creation of a closed loop society by promoting the reduction of industrial waste, as
well as the reuse and recycling of equipment and machinery that have been returned after the end of
their lease periods.

15

ContributetosolvingsocialissuesineachbusinessWeprovidecomprehensiveBPOservicestoimproveworkeﬃciencyandreformworkstyles,onestopservicesthatmeetclient'sneedsincollaborationwithgroupcompanies,etc.,intheMedical&
Welfareareas,andﬁnanceservicessuchastheFuyo100%RenewableElectricityDeclaration
SupportProgramintheEnergy&Environmentareas.

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16Top > CSR > FuyoLeaseGroup'sCSR > Materiality

Materiality
In order to realize a sustainable society, the Fuyo Lease Group has identiﬁed issues to be solved throughthe Group's businesses as Material Issues (important issues to be addressed), taking into consideration

CSR

their impacts on society and stakeholders with reference to the SDGs proposed by the United Nations.
We will contribute to creating a prosperous and sustainable society by enhancing shared values between
society and companies through our eﬀorts along with identiﬁed Materiality.

Fuyo Lease
Group's CSR

Message fromthe President

Identifying Materiality

Management
Philosophy
STEP 1

Identifying issues

Based on the SDGs, we created a list of issues relevant to our corporate group from a global
standpoint. We then conducted an external environment analysis referring to ESG indexes to
identify issues which could inﬂuence our group.

Our Thoughts
on CSR
Materiality
Fuyo Lease
Group and Its
Stakeholders

STEP 2

Assessing materiality from the stakeholders' point of view

We quantitatively analyzed the magnitude of the impact that the issues identiﬁed in Step 1
could have on our company from the viewpoint of investors and other stakeholders.

Solving Social
Issues throughBusiness
Environmental
ReportSocial Report

STEP 3

Assessing materiality for our business operations

We conducted an internal environment analysis on the issues identiﬁed in Step 1 while giving
due consideration to our Medium-term Management Plan, Code of Corporate Conduct andother guidelines. The analysis evaluated how big a contribution each of our businesses could
make to solving these issues and the potential impact on our ﬁnancial performance.

17

Governance andManagemnet
Each Group
Company's
Environmental
and Social
initiatives

External
Evaluation
STEP 4

Identifying priority issues

Editorial Policy

Following Steps 2 and 3, we identiﬁed priority issues, and following discussions among theBoard of Directors, top management approved the identiﬁed priority issues.
In the ﬁrst half of ﬁscal 2020, the Board of Directors examined the appropriateness of major
KPI targets such as climate change measures and work-style reform, and decided to further
strengthen the system to promote materiality initiatives and KPI achievement on acompany-wide basis.

Materiality for Fuyo Lease Group
Following the Materiality identiﬁcation process shown above, we identiﬁed Goal 3, 5, 7, 8, 11, 12, and13 as the most important strategic SDGs.

Material Issues (Materiality)
1.

Responding to climate change issues and renewable energy

2.

Promoting health and wellbeing

3.

Developing safe and livable cities and providing transportation

4.

Achieving economic growth and fulﬁlling work

5.

Contributing to the creation of a circular society

6.

Diversity and work-style reform

KPIs and Targets of Materiality (Creation of
Shared Value through Business Activities)
18

Independent
assurance1.Responding to climate change issues and renewable energy

KPIs
Themesof
Initiatives

Resultsandplan(output)
FY2019
Results

Targets

Contributingtosocietyandtheenvironment(outcome)

Relevant
Business
andSDGs
Energy&Environment

Expandsupplyofrenewableenergy

Supplyinggreen
energythroughthesolarpower
generationbusiness

200MW-dc

FY2021target:200MW-dc

EstimatedCO2
reduction70,054
t-CO2[FY2019]

Convertpower
consumedbytheFuyoLeaseGroupintorenewableenergySettingtargetsandpromotingtheuseofrenewableenergyinbusinessoperations

ParticipatedinRE100
Startedreviewing
utilizationofrenewableenergy2030target:50%
2050target:
100%

Promotingtheuseofrenewableenergyandcommunicating
demandvoicestothemarket

Providesupport
forthewideruseofrenewableenergythroughtheprovisionofﬁnancialservices

Providingﬁnancial
servicestocompaniesandorganizations
participatinginRE100andthe100%
Renewable
Electricity
DeclarationRE
Actionthrough“theFuyo100%
Renewable
Electricity
DeclarationSupport
Program”

Issuedgreen
bondsandbeganprovisionofprogram
Numberoforganizations
providingprogram:15
organizations

Contributing
tothepromotionofthe100%
Renewable
Electricity
Declaration
REActionandfurther
expandingtheprovisionofprograms

Providingﬁnancial
servicestocompanies
participatingintheREActionin
supportoftheirrenewableenergy
initiatives〈Major
leasingresultsfromprograms〉
LEDlighting,electricvehicle
chargers,devices
thatarecompliant
withtheActonPromotingGreen
Procurement(PCs,printers,etc.)

OperatingassetsoftheEnergy/Environment
businesses(excludingsolar
powergeneration
business)¥33.2billion

FY2021target:¥41.0billion

Promotingrenewableenergy
andenergysavingOﬀeringsupporttorenewableenergyrelatedtechnology
venturecompanies

InvestedinGirasol
EnergyFY2020results:
Receivedﬁrst
orderforgreen
electricitysupply
services(PPA
services)

Oﬀering
supportforsellingandprovidingservicesfornewtechnologies
andproducts

Disseminating
advancedrenewableenergyrelated
technologies

Promotecuttingedgerenewableenergy-related
technologies

192.Promoting health and wellbeing

KPIs
Themesof
Initiatives

Resultsandplan(output)
FY2019Results

Targets

Contributingtosocietyandtheenvironment(outcome)

Relevant
Businessand
SDGs
Medical&WelfareExpandaccessof
medical,elderly
nursing-care,andwelfareservices

OperatingassetsofMedical/Social
Welfarebusinesses¥81.0billion

FY2021target:¥95.0
billionImprovingboththequantityandqualityofmedical,elderly
nursing-care,andwelfareservices

Supportmedical
institutionswiththeirmanagement

Balanceoffactoringformedicalandnursing-carereceivables(balanceofFPSMedicalbyAccretive)¥17.2billion

FY2021target:¥30.0
billionHelpingmedical
institutionstoachieveﬁnancial
stabilitybymeeting
theirfundingneeds

Promotecuttingedgehealthcaretechnologies

Oﬀeringsupporttomedicalventurecompanies

InvestedinJapanese
Organizationfor
MedicalDevice
Development

FY2020
results:
Investedin
THINKCYTE

Disseminating
advancedmedical
technologies

3.Developing safe and livable cities and providing transportation

KPIs
Themesof
Initiatives

Resultsandplan(output)
FY2019Results

Targets

Contributingtosocietyandtheenvironment(outcome)

Relevant
Business
and
SDGs
Real
EstateAircraft

Promoteenvironmentallyfriendlyurbanscapeandresidential
space

Operatingassetsofrealestateleases(Commercial
facilities,hotels,
distributionfacilities,
nursingcare
facilities,residential
facilities,etc.)¥444.7billion
Jointlyacquired
trustbeneﬁciaryrightsofNasu
GardenOutlet

FY2021target:¥530.0billion

Supplyingenvironmentallyfriendlyassets

Contributetoexpandingthevolumeofsafe,
inexpensive,andfasttransportation

Numberofaircraft
ownedbytheGroup41

FY2021target:70*1

Transportation
capacity:10million
people*2peryear[FY2019]

20

4.Achieving economic growth and fulﬁlling work

K P IsT h e m e s o f
In it ia t iv e s

Resultsandplan(output)
F Y 2 0 1 9 R e s u lt s

Targets

Contributingtosocicieetyandthee n v ir o n m e n t(outcocomme)

R e le v a n t
Business
and
SDGs
BPO

Supportcorporate
activitiesthroughleasingbusiness,
contributiontosocialdevelopment

Operatingassets¥2,384.0billion

FY2021target:¥2,500billion

Providingright-touseand/or
possessoryrightstocustomersthroughleases,andoutsourcingofprocessesandprocedures
associatedwithownership

Improvemanagement
eﬃciency,
overcomelabor
shortage,andaddresswork-stylereformNumberofcompanies
providingBPO
servicesthroughﬁveBPO
companies*3

18,571companiesMadeNOC
Outsourcing&Consultingaconsolidated
subsidiary
MadeMerryBizanequity-method
aﬃliateFY2021target:20,000companies

Contributingtotheresolutionoflabor
shortagesandthepromotionofworkstylereformbyprovidingBPO
services

5.Contributing to the creation of a circular society

KPIs
Themesof
Initiatives

Resultsandplan(output)
FY2019Results

Targets

Contributingtosocietyandtheenvironment(outcome)

Relevant
BusinessandSDGs
Domestic
Corporate

Promote3Rs(reduce,reuse,andrecycle)forleased
assetsaftertheendoftheirleaseperiod

Reuseandrecycle
rateforreturnedPC

100%

FY2020
target:100%or
more

Reducingwasteandpromotingacircularsociety

Reducetheimpact
ontheenvironment
throughproper
wastedisposal

Properdisposalofindustrialwaste

Properdisposalofallwaste

Sameascolumntotheleft

Reducingourenvironmental
impactbyensuring
properdisposalof
waste

21

6.Diversity and work-style reform

KPIs
Themesof
Initiatives*1*2

Resultsandplan(output)
FY2018
Results

Targets

Contributingtosocietyandtheenvironment(outcome)

Empowerwomeninworkplacesanddevelophumanresourceswithdiversestrengths

Percentageoffemalemanagers(non-consolidated)

19.6%

FY2021target:30%
ormoreEnsuringthatfemaleemployees
canrealizetheirfullpotentialintheworkplace

Improveworkstyletopursue
eﬃciencyandproductivity

Rateoftaking
annualpaidleave(non-consolidated)

66.3%

FY2021target:80%

Improvingworkstyletopursue
eﬃciencyandproductivity

Promotework-lifebalance

Telecommuting
utilizationrate*4(non-consolidated)

5.9%

FY2021target:40%ormorePromotingabalancebetween
workandfamily

Improvejob
satisfaction

Rateofjob
satisfaction*5(consolidated)

85.8%

Steadyimprovement

Increasing
productivityandaddedvaluebyenhancingjob
satisfaction

Relevant
BusinessandSDGs

Due to the impact of the spread of COVID-19, we are considering revising our planned target.
Calculated independently from the breakdown of aircraft possessed and ﬁgures published byaircraft manufacturers, etc.

*3

Sharp Finance, Accretive, INVOICE, NOC Outsourcing & Consulting, and MerryBiz.

*4

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 notincluded.

*5*6

Of all employees, the percentage who have been provided with home PCs to establish
telecommuting environments and have telecommuted from home at least once.
Percentage of employees who rated 4 or above (on a scale of 1 to 5) for at least one job
satisfaction question out of 6 in the Employee Satisfaction Survey

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22Top > CSR > FuyoLeaseGroup'sCSR > FuyoLeaseGroupandItsStakeholders

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

CSR

stakeholders.

Fuyo Lease
Group's CSR

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

Message fromthe PresidentManagement
Philosophy
Our Thoughts
on CSR
Materiality
Fuyo Lease
Group and Its
Stakeholders

Solving Social
Issues throughBusiness
Environmental
ReportSocial Report
Governance andManagemnet
Each Group
Company's
Environmental
and Social
initiatives

23

Our management philosophy is to "always give ﬁrst priority to theCustomers

customer and provide the best service." In putting that philosophy
into practice, we work to enhance the level of satisfaction of all ourcustomers.

External
Evaluation
Editorial Policy

Suppliers andpartners

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

Our basic policy is to return stable proﬁts to shareholders on a

Shareholders

Industryorganizations andcompetitors

Communities andNPO

Natural environment

long-term basis. We also disclose information in a timely,
appropriate, and fair manner to ensure the transparency of ouroperations.

We work with competitors to enhance business, improve services,and share information through, for example, participation inindustry associations.

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

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

National government,
administrative
authorities, etc.

Financial institutions

Employees and theirfamilies

We maintain appropriate relationships with the government ofJapan, relevant ministries and agencies, and local governments.
We also maintain sound relationships with the central
governments and administrative authorities of countries where ouroverseas subsidiaries operate.

We raise funds necessary for our operations by maintaining strong
relationships of trust with ﬁnancial institutions.

We strive to create a comfortable and secure workplaceenvironment and are working towards an environment where all
employees can ﬁnd their own optimal work-life balance andenhance the quality of both life and work.

Participation in International Initiatives
Fuyo Lease signed the UN Global Compact (UNGC) in 2018. The UNGC is an initiative in which
companies and organizations demonstrate responsible and creative leadership to act as good membersof society and participate in the creation of a global framework for the realization of sustainable growth.
Companies and organizations that have signed the UNGC agree to and continue to work toward theachievement of the 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 subcommitteesorganized by theme to discuss and exchange information with experts regarding the eﬀorts of member
24

Independent
assurance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 sustainablebusiness activities.
*

Ten Principles of Global Compact

Principle 1: Businesses should support and respect the protectionof internationally proclaimed human rights; andHuman Rights
Principle 2: make sure that they are not complicit in human rights
abuses.

Principle 3: Businesses should uphold the freedom of associationand the eﬀective recognition of the right to collective bargaining;

Principle 4: the elimination of all forms of forced and compulsory

Labourlabour;Principle 5: the eﬀective abolition of child labour;

Principle 6: the elimination of discrimination in respect of
employment and occupation.

Principle 7: Businesses should support a precautionary approachto environmental challenges;

Environment

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

Anti-Corruption

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

25

Disclaimer

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26

Top > CSR > FuyoLeaseGroup'sCSR > Solving Social Issues through Business

Solving Social Issues through BusinessWe strive to realize the part of our Management Philosophy that states, "We support corporate activities
through our leasing business with view to contributing to development of society." To this end, it is

CSR

extremely important that we clearly recognize the value that our services bring to society and to work
toward achieving concrete results.
This section introduces products and services from among the Groupʼs businesses that are expected to
speciﬁcally contribute to solving social issues.

Special Feature 1.
Energy & Environment

Special Feature 2.
Medical & Welfare

Fuyo Lease
Group's CSR
Solving Social
Issues throughBusiness

SpecialFeature 1.
Energy &Environment

Special Feature 3. BPO

Special Feature 4
Mobility BusinessSpecialFeature 2.
Medical &WelfareSpecialFeature 3.
BPO
SpecialFeature 4
Mobility
Business

Environmentally conscious products andservices
Relevant SDGs:

Environmental
ReportSocial Report
Governance andManagemnet

27

Through leasing and ﬁnancing, we support capital investments for achieving energy-savings. Fuyo Leasehas extensive unique backup systems, including systems that use various subsidy systems and supplierreferrals. We contribute to mitigating the impact of climate change by developing a wide range ofbusinesses that promote energy conservation and renewable energy.

Energy-saving equipment and subsidy-based lease

Each Group
Company's
Environmental
and Social
initiatives
External
Evaluation

We oﬀer energy-saving measures through leases.

Editorial Policy

Click here for details

Independent
assurance

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 RE 100 and the"100% Renewable Energy Declaration RE Action".
Click here for details

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

Solar loan
We oﬀer loans covering purchasing and installation costs of solar power generation systems.
Click here for details

Solar power generation business
We oﬀer optimal equipment implementation plans for items ranging from large-scale power plants tosmall-scale solar panels.
Click here for details

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

28

Products and services that contribute tosolutions for challenges in the Medical &Welfare ﬁelds
Relevant SDGs:

We are building a one-stop service system that provides a wide range of solutions for medical
institutions and elderly nursing-care providers facing various issues against the background of thedeclining birthrate, aging population, and the concept of Regional Medical Care Visions. In collaboration
with group companies, we will further expand our products and services and respond appropriately tochanging clientʼs needs.

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

Products and services that contribute toeconomic growth and work-style reform
Relevant SDGs:

We are conducting business development centered on BPO services to resolve issues arising from there
being "not enough people or not enough time” and to improve productivity for companies. By providing
a variety of services that meet clientsʼ needs, we will achieve economic growth for companies and help
to both resolve the severe labor shortage caused by a decline in the labor force and promote initiatives
for work-style reform.

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

29

Products and services that contribute tosolutions for challenges in the logistics
mobility ﬁeld
Relevant SDGs:

We provide various services related to the logistics mobility ﬁeld such as logistics, vehicles, andwarehouses with group companies and aﬃliated companies. By leveraging our strengths in high-quality
solutions that utilize our extensive domestic and overseas network, we support solutions to various
issues in the vehicle and logistics industry.

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.

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 thecreation of a circular society
Relevant SDGs:

In order to promote the 3Rs (Reduce, Reuse, and Recycle), we provide economic advantages to ourcustomers and contribute to the establishment of a closed-loop society not only by reusing PCs whose
leases have expired but also by purchasing used assets owned by customers.

30

PC Eco & Value leaseWe oﬀer leases for personal computers in the pursuit of economic and ecological beneﬁts.
Click here for details

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

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

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

For a comprehensive list of products and services of Fuyo Lease Group, please click here.

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31Top > CSR > Fuyo Lease Group's CSR > Solving Social Issues through Business> Special Feature 1. Energy & Environment

Special Feature 1. Energy &Environment

CSR

Fuyo Lease
Group's CSR
Solving Social
Issues throughBusiness

SpecialFeature 1.
Energy &Environment

The Fuyo Lease Groupʼs Awareness of
Climate Change Issues
In recent years, the physical eﬀects of climate change including extreme weather, rising sea levels, andforest ﬁres have become increasingly apparent. Since the adoption of the Paris Agreement, which wasconcluded in 2015 to mitigate climate change, not only have both developed and developing countries
been required to take countermeasures, but companies have also been required to actively engage ineﬀorts to reduce greenhouse gas emissions.
The Fuyo Lease Group also recognizes the importance of responding to the risks and opportunities

SpecialFeature 2.
Medical &WelfareSpecialFeature 3.
BPO
SpecialFeature 4
Mobility
Business

posed by climate change.
As a medium to long-term risk, there is a possibility that restrictions on business activities due to anincrease in natural disasters and changes in regulations and systems such as carbon taxes may aﬀect
our performance. On the other hand, demand for leasing renewable energy facilities and energy-saving
equipment is seen as a mediumto long-term opportunity. In order to respond to such risks andopportunities, the Group has identiﬁed “Responding to Climate Change Issues and Renewable Energy”
as one of its material issues (materiality) for addressing social issues.

32

Environmental
ReportSocial Report
Governance andManagemnet

The Fuyo Lease Groupʼs Initiatives toPromote the Spread of Renewable Energy
Recognizing the need to make major eﬀorts to reduce greenhouse gases in response to climate change,
in 2018, the Group became the ﬁrst comprehensive leasing company in Japan to participate in RE100.
RE100 is the global corporate leadership initiative, which aims to source 100% renewable energy to
power business activities.
Furthermore, with the aim of contributing to the promotion of a decarbonized society, we are actively
implementing initiatives based on three pillars: renewable energy generation business, promotion ofrenewable energy-related infrastructure, and investment in and commercialization support for
renewable energy-related technologies.

Renewable Energy Generation Business
The Group generates solar power as part of its
eﬀorts to promote the spread of renewableenergy in the course of business activities. The
Group currently operates solar power plants at
34 locations throughout Japan, supplying enoughelectricity to power approximately 57,000
households in local communities. In ﬁscal 2019,as the ﬁrst project in the diﬃcult-to-return zone

Namie Sakai Solar Power Plant 1 and 2 inNamie Town, Fukushima Prefecture, Japanthat was aﬀected by the Great East Japan Earthquake, we started operating a solar power plant with an
output of approximately 60 MW-dc, one of the largest in the Tohoku region, in Namie town, Fukushima
Prefecture, Japan.

Promoting Renewable Energy-Related
Infrastructure
Recently, more and more Japanese companies have been joining RE100. Furthermore, the 100%
Renewable Electricity Declaration RE Action was established in October 2019 as a new framework forsmall and medium-sized enterprises, administrative agencies, hospitals, and educational institutions to
declare that they will use 100% renewable energy.

33

Each Group
Company's
Environmental
and Social
initiatives
External
Evaluation
Editorial Policy
Independent
assurance

One of the factors hindering the spread of renewable energy is that the cost of capital investment is asigniﬁcant burden, especially for small and medium-sized enterprises. We established the Fuyo 100%
Renewable Electricity Declaration Support Program to provide ﬁnancial support to the businesses andorganizations that have signed up for the 100% Renewable Electricity Declaration RE Action by utilizing
the ﬁnancing know-how that we have cultivated over many years. More speciﬁcally, we issue green
bonds and raise funds from investors and use the gathered funds to support businesses andorganizations that have joined the 100% Renewable Electricity Declaration RE Action to incorporate
renewable energy and/or energy eﬃcient equipment into their operations. In ﬁscal 2019, we decided tosupport a total of 15 organizations.
This program has been selected as a Model Case for the ﬁscal 2019 Green Bond Issuance by the
Ministry of the Environment in recognition of its uniqueness and contribution to Japanʼs eﬀorts topromote renewable energy countrywide. Furthermore, we were the only company to receive the Gold
Prize (Ministerʼs Prize, the Ministry of Environment) in the Bond category of the ESG Finance Awards
Japan, which recognizes ﬁnancial institutions that are actively involved in ESG ﬁnance and companies
that are engaged in sustainable environmental management. Now and in the future, we at the Groupare committed to providing active support to our clients in response to their ﬁnancing needs forrenewable energy.
In addition, we have been promoting our green electricity supply services (PPA services) since ﬁscal
2019 as a business to supply infrastructure for renewable energy power generation. Under this service,
we install solar power generation systems on the sites or roofs of our customers and directly supply
electricity to them. We will accelerate our eﬀorts in this service in order to contribute to the further
spread of renewable energy by supplying many customers with power generation systems that produce
CO2-free electricity with environmental value.

VOICE
We are making eﬀorts to further
expand the power supply of oursolar power generation businessand are also working withstrategic partners to participate inhydropower, wind power, biomass,
and geothermal power generation
Executive Oﬃcer and General Manager, Energy & Environment
Business Division Miki Sasaki

businesses. At the same time, we
aim to expand the supply of

renewable energy in Japan and overseas by developing electric power infrastructure andpower sources overseas, which are ahead of us in the renewable energy ﬁeld.
In ﬁscal 2019, we also started a green electricity supply service (PPA service). Under thisservice, we install, operate, and maintain power generation systems free of charge andsupply renewable energy to customers.
We also oﬀer a wide range of decarbonization services such as support for EV and battery
infrastructure as BCP measures as well as ESCO services, and we combine these services

34

with unique ﬁnancing capabilities such as the Fuyo 100% Renewable Electricity Declaration
Support Program to provide the best solution for our customers.

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. In ﬁscal 2018, we formed capital andbusiness alliances with Exergy Power Systems Inc., which develops and manufactures next-generationenergy storage systems, and NExT-e Solutions Inc., which provides battery management systems thatutilize advanced battery control technologies.
In ﬁscal 2019, we entered into a capital and business alliance with Girasol Energy Inc. It is a venturecompany from the University of Tokyo, and it is developing the PPLC-PV*, IoT platform for the
maintenance and management of solar power facilities. This platform collects and analyzes data such as
current, voltage, and temperature, thus making it possible to understand operational status on a panelby-panel basis and to remotely identify problems as well as abnormalities at an early stage. One of themost important factors in making renewable energy a mainstay power source is the ability to operate
power plants stably over a long period of time. We believe that the services provided by this company
will contribute to the maintenance and expansion of solar power generation.
By supporting these venture companies now and in the future, we strive to promote the spread ofrenewable energy and to create new business opportunities.
*

PPLC-PV stands for a pulse power line communication for series-connected PV monitoring.

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35Top > CSR > Fuyo Lease Group's CSR > Solving Social Issues through Business> Special Feature 2. Medical & Welfare

Special Feature 2. Medical & Welfare

CSR

Fuyo Lease
Group's CSR
Solving Social
Issues throughBusiness

SpecialFeature 1.
Energy &Environment

Management Issues Facing Medical
Institutions and Fuyo Lease Initiatives
The management issues faced by medical institutions are diversifying due to changes in theenvironment surrounding medical care. For example, initiatives to improve working environments for
medical professionals are urgently needed to promote the work-style reform led by the government.
There is also a need for initiatives to convert medical functions. This has been brought about by changes
in patient structure due to the declining birthrate and aging population, as well as the accelerated
reorganization of hospitals in line with Regional Medical Care Visions*1. In addition, as part of measures

SpecialFeature 2.
Medical &WelfareSpecialFeature 3.
BPO
SpecialFeature 4
Mobility
Businessto cope with the recent spread of COVID-19 and large-scale disasters, there is also increasing societal
demand for online and remote medical care. Many medical institutions are required to streamline theiroperations through measures such as reducing costs while maintaining capital investment. Medical
institutions face an urgent need to make eﬀorts to address these diverse management issues.
At the Group, we have positioned Medical & Welfare as one of our strategic areas, and we provide a

Environmental
ReportSocial Reportvariety of services including the leasing and ﬁnancing of medical devices and facilities, factoring for
medical and nursing-care receivables, as well as the removal and purchase of used medical devices. We
aim to leverage the know-how and rich variety of services that we have accumulated through ourbusiness activities to further contribute to resolving issues in the medical ﬁeld. To this end, we arefocusing on creating a system to accurately understand the diversifying needs of medical institutions andprovide a wide range of solutions.

36

Governance andManagemnet

Expanding Advisory Functions andInformation Channels to Identify Customer
Needs

Each Group
Company's
Environmental
and Social
initiatives

The Group has established a system to develop services that identify and satisfy the diverse needs of
medical institutions. First, in order to enhance the expertise of the organization, we recruited personnel
and established the Healthcare Advisory Division in April 2019. As a result, we have enhanced our sales
activities aimed at management in university hospitals and hospitals that play a central role in regional
medical care by promoting the utilization of expert knowledge and human networks. We actively
approach management to understand the speciﬁc needs of each medical institution and utilize thisinformation in the development of new services. Furthermore, we have become a member of theMedical Management Planning Group (MMPG), a nationwide organization of tax accountants andaccounting ﬁrms that specialize in supporting medical business management. Utilizing the MMPGʼsmedical information and know-how as well as its network of members, we have broadened our groupservices and expanded our information channels.

Providing Comprehensive One-Stop Services
through the Fuyo Lease Platform Concept
The Fuyo Lease Platform Concept (see the ﬁgure below) is a one-stop service that combines services
and provides solutions tailored to customer needs from ﬁve perspectives: management solutions;equipment, facilities and amenities; ﬁnancing; removal, transportation, disposal, buying and selling preowned equipment; and business eﬃciency and energy saving and costsaving. Under the Fuyo Lease
Platform Concept, the Group is working to expand its lineup of services for medical institutions, elderly
socialwelfare and nursing-care providers, and local governments. For the management solutions, wehave formed a capital and business alliance with the Japanese Organization for Medical Device
Development (JOMDD), a medical incubator. The aim is to utilize the knowledge obtained through theorganization to develop and provide management solutions for medical institutions. In addition, forequipment, facilities and amenities, we support the development and diﬀusion of cutting-edge medical
technology through capital and business alliances with the medical venture company RIVERFIELD Inc.*2,
CREWT Medical Systems, Inc.*3, and Lily MedTech Inc.*4. Furthermore, the various services provided byeach group company make a signiﬁcant contribution to enhancing the platform. For example, ﬁnancing
includes factoring for medical and nursing-care receivables by Accretive Co., Ltd.; removal,transportation, disposal, buying and selling pre-owned medical devices by FUJITA Co., Ltd.; andbusiness eﬃciency, energy saving and cost saving includes consultation on the introduction of BPO
services by NOC Outsourcing & Consulting, Inc. Optimally combining these services to meet customer
needs allows us to oﬀer a wide range of solutions.
We will continue to expand our business in the Medical & Welfare areas in order to further expand theFuyo Lease Platform Concept in the future. Speciﬁcally, we will utilize our strategic, comprehensive
alliance with Medical System Network Co., Ltd., which is engaged in the pharmaceuticals network
business as well as other products and the dispensing pharmacy business, and we will promotecollaboration with highly specialized companies such as medical consulting companies. By expanding
into new business areas, we will enhance our platform and contribute to resolving diverse customer
needs.

37

External
Evaluation
Editorial Policy
Independent
assurance

VOICEThe Healthcare Advisory Division,
which was established in April
2019, is working with medical
management consultants topropose the utilization of theGroupʼs BPO services and theintroduction of an RPA. The aim is
Executive Oﬃcer and General Manager, Medical & Welfare
Division Hideyuki Otsubo

to improve and streamline
hospital operations for medical

institutions that play a central role in regional medical care. We are also working to establish
a system that enables us to provide services ranging from applications to oﬃce procedures
online for the early payment of medical and nursing-care receivables provided by Accretive.
The environment surrounding the management of medical institutions and nursing-careproviders is becoming increasingly diﬃcult due to COVID-19 and other issues. We willcontinue to face the management issues of our customers and provide optimal solutions
based on its comprehensive capabilities.

The Nursing-Care Provider Support Programto Realize Sustainable and Stable NursingCare Services
Although demand for nursing-care services is rising against the backdrop of an aging population, theshortage of nursing-care professionals is expected to deteriorate as the working-age population
declines. Many nursing-care providers are facing problems such as issues with acquiring the humanresources necessary to provide nursing care services, promoting the utilization of ICT (information andcommunications technology), and stably procuring materials and funds.
The Group has begun building a nursing-care provider support program that provides a framework to
support the sustainable and stable business operations of nursing-care providers that face a variety ofissues. The program consists of a collaboration between the Group, major nursing-care providers andmajor ﬁnancial institutions to provide nursing-care providers with solutions from three perspectives:38management rationalization and temporary staﬃng, procurement of nursing-care and social-welfare
equipment, and ﬁnancial support. At the Group, we play a role in leasing and ﬁnancing nursing-care andsocial-welfare equipment, supporting work eﬃciency improvements through our BPO services, providing
ﬁnancial support through an early payment service for nursing-care receivables, and providing funds
necessary for business revitalization. In this way, the Group is working together to support nursing-careproviders and contribute to the creation of sustainable local communities.

*1

Regional Medical Care Visions: This initiative aims to create a framework for the division of rolesand cooperation among medical institutions through the cooperation of local stakeholders, in orderto estimate medical needs in 2025 and create a medical system that responds to those needs.

*2

RIVERFIELD Inc.: A venture company from the Tokyo Institute of Technology that is developing
Japanʼs ﬁrst surgical support robot. We invested in it on the assumption that we would form apartnership for the sales and promotion of leasing and rentals for the company.

*3

CREWT Medical Systems, Inc.: A venture company aﬃliated with the University of Tokyo that isdeveloping the visual-ﬁeld testing equipment “AIMO.” We entered into a capital and businessalliance with it to support the sale of AIMO through leasing and other ﬁnancing plans.

*4

Lily MedTech, Inc.: A venture company that develops diagnostic imaging equipment for breast
cancer. We entered into a capital and business alliance with it to develop and promote leasing,rentals, and other schemes for the companyʼs equipment.

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39Top > CSR > Fuyo Lease Group's CSR > Solving Social Issues through Business> Special Feature 3. BPO

Special Feature 3. BPO

CSRFuyo Lease
Group's CSR
Solving Social
Issues throughBusiness

SpecialFeature 1.
Energy &Environment

Using BPO-based Productivity Improvements
to Contribute to Solutions for Challenges in
the Age of the New Normal
As Japanʼs working-age population continues to decline due to a declining birthrate and an aging
population, it has become an urgent issue for companies to streamline their management and improve
employee productivity. Cost reductions are needed in response to business maturity and pricecompetition. Also, there is a need for initiatives to raise the value and productivity of each employee by
promoting diverse working styles, securing excellent human resources and creating an environment

SpecialFeature 2.
Medical &WelfareSpecialFeature 3.
BPO
SpecialFeature 4
Mobility
Business

conducive to the creation of new value based on the work-style reform led by the Japanese government.
Recently, with issues such as the shift to the New Normal following the spread of COVID-19, accurately
responding to both changes in the business environment and accompanying changes in needs has

Environmental
Reportbecome the most important issue for a company to achieve sustainable growth.
Against this backdrop, the Fuyo Lease Group has identiﬁed “achieving the sustainablegrowth/development of a company and improving employee job satisfaction” as one of its material
issues (materiality). At the core of this are BPO services. Under our Medium-term Management Plan,
Frontier Expansion 2021, we have positioned BPO services as a New Domains, and we are working to
expand this business by supporting and realizing the growth of all companies from the perspective of

40

Social Report
Governance andManagemnet

improving productivity. In particular, there is an increasing need for BPO services in th age of the New
Normal, and we hope to contribute to solutions for the challenges that many companies face.

Achieving Customer Satisfaction through BPO
Services That Unite the Groupʼs Collective
Strengthsin the Age of the New Normal

Each Group
Company's
Environmental
and Social
initiatives
External
Evaluation
Editorial Policy

The Group currently provides BPO services using a total of eight group companies. INVOICE provides
services for general aﬀairs divisions, such as an integrated billing service for telecommunications as wellas public utilities charges, and Accretive, as a provider of services for accounting and ﬁnance divisions,
excels at payment services from accounts payable for retailers that open multiple branches.
Furthermore, these and other companies such as Sharp Finance, which provides collection agency
services, and MerryBiz, which provides “virtual accounting assistants” using remote staﬀ, are key to theGroupʼs BPO oﬀerings. At MerryBiz, they have approximately 800 remote staﬀ members performing
accounting services online, and the majority of these staﬀ members are housewives from across Japan.
By using a way of working that oﬀers ﬂexibility in terms of location and hours, MerryBiz creates
employment opportunities for remote staﬀ and contributes to addressing the social issue of labor
shortages.
In August 2019, NOC Outsourcing & Consulting, which covers information systems, human resources,
and sales administration, joined the Group as a comprehensive BPO service. As a result, we have beenable to further advance the visualization of operations as well as administrative work, thus allowing us
to provide speciﬁc solutions to issues that have been identiﬁed.
There is more than one path for companies to improve business eﬃciency. For example, it may be best
to outsource through a BPO service, or it may be better to move forward with insourcing (inhouseproduction) by utilizing RPA (robotic process automation), etc. The greatest strengths of the Groupʼs
BPO services are that they oﬀer multiple solutions to meet the needs of customers, even if theobjectives are the same, and that they all work together to create optimal solutions.

Our company and group companies are working closely together to maximize the synergies of the Groupand further improve customer satisfaction. By standardizing common operations within the Group andintroducing AI-OCR*, we are able to improve productivity, reduce costs and shorten delivery times. We
also provide highly satisfactory BPO services that meet a wide range of needs by proposing optimal
solutions that combine the functions and strengths of each company.

41

Independent
assurance

*AI-OCR is the application of AI technology to OCR, which is the process of reading handwritten
documents or forms and converting them into data.

VOICE
In recent years, we have realized
as a result of the consultations
that we have received that there
has been a change in the issues
that customers face. In the past,
there were many requests toimprove business eﬃciency andGeneral Manager, BPO Service Promotion Division Koji Yamamoto

reduce costs. However, in recent
years, there has been an increase

in requests with the objective of business continuity or to strengthen the functions of abusiness due to diﬃculty in hiring from the overall labor market shrinking as well as ashortage of human resources, to avoid personnel that are not a good match after
recruitment, and to prevent delays in legal compliance. As a result, we feel that there are
increasing expectations for our BPO services.
We also receive an increasing number of inquiries as part of company-wide BCP (BusinessContinuity Plan) measures to address needs for the decentralization of operations and thecreation of remote environments in preparation for the transition to the age of the New
Normal. NOC Outsourcing & Consulting provides IT outsourcing services that make use of
the Tokyo Metropolitan Government Business Continuity Emergency Measures(Telecommuting) Grant. It also assists clients who have already entrusted it to carry out
payroll processing to prepare payment application documents for the employment
adjustment subsidy in an eﬀort to respond quickly to new needs.
Under the slogan “BPO services to resolve issues arising from there being ʻnot enoughpeople or not enough timeʼ or just ʻnot enough,ʼ we provides comprehensive BPO services
with the aim of being a reliable and ﬂexible partner that solves issues when customers feelthat what they have is “not enough.”42

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43Top > CSR > Fuyo Lease Group's CSR > Solving Social Issues through Business> Special Feature 4 Mobility BusinessSpecial Feature 4 Mobility Business

CSR

Fuyo Lease
Group's CSR
Solving Social
Issues throughBusiness

SpecialFeature 1.
Energy &Environment

Challenges Facing the Industry and How theFuyo Lease Group Will Respond
The automobile industry is entering a once-in-a-century period of great change due to CASE*1
technological innovations and the progress of MaaS*2 that connects means of transportation with IT. In
the logistics industry, many social issues have become apparent, including an increase in the volume ofcargo 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. Transportation andpostal services are important industries accounting for approximately 5% of Japanʼs GDP and, because

SpecialFeature 2.
Medical &WelfareSpecialFeature 3.
BPO
SpecialFeature 4
Mobility
Businesslogistics costs paid by companies amount to approximately 5% of sales, the beneﬁts of improvement areconsidered to be substantial.
Responding to these large-scale changes in industry and social issues is essential to the sustainable

Environmental
Reportgrowth of companies, making it an urgent issue for many companies.
The Group has expanded its auto leasing business mainly with Fuyo Auto Lease, which provides
comprehensive support for automotive operations. However, in order to approach the challenges facedby the automobile and logistics industries in a period of historical change, it is necessary to rebuild theexisting auto leasing business and strengthen the logistics mobility ﬁeld, which promotes linkage oflogistics data and commercial distribution data as well as automation of logistics functions. To achievethis, we established our Mobility Business Promotion Division in April 2020. At the same time we

44

Social Report
Governance andManagemnet

redeﬁned our auto leasing business as the Mobility Business, and then positioned it as a strategic area tolay the groundwork for concentrating management resources.

Our Strategic Vision for Future Bushiness
Development and Mobility BusinessWe have positioned the Mobility Business as

expected even in strategic areas, and we aim

Independent
assurance

to expand our business scope to include
various businesses that are relevant to thelogistics mobility ﬁeld such as logistics,
vehicles, and warehouses. The Group's

as a wide-ranging domestic and overseas
network. These strengths will be our driving
force to promote the expansion of ourbusiness scope, and they will also support theExternal
Evaluation
Editorial Policy

the New Domains in which new growth isstrengths lie in high-quality solutions, as well

Each Group
Company's
Environmental
and Social
initiatives

From left, Hideki Yamada, President & Chief
Executive Oﬃcer, Fuyo Auto Lease Co., Ltd.
Naomi Ogata, President & Chief ExecutiveOﬃcer, YAMATO LEASE CO., LTD. Shinji Sasakura,
General Manager, Mobility Business Promotion
Division, Fuyo General Lease Co., Ltd.

resolution of all issues that face the automotive and logistics industries. Speciﬁcally, we will prepare avariety of services in ﬁve categories: “distribution facilities,” “relevant facilities and services,”“automobiles and trucks,” “streamlining and automation of warehouse operations,” and “streamlining of
peripheral operations” for targets such as automobiles, transportation, and warehouses. In addition, theGroup aims to expand business opportunities through the horizontal integration of business activities
and information such as the leasing of warehouse buildings and warehouse equipment. The Group will
share know-how from overseas group companies including TDF Group Inc., which is involved in pickuptruck rental, leasing and sales business in North America, and Paciﬁc Rim Capital, Inc., which is involvedin operating leases of material handling equipment mainly in the United States.
In addition to sharing this know-how with the entire Group, we will also work to create businesssynergies by further strengthening relationships with companies including Nakamichi Leasing Co., Ltd.,
which has strength in leasing construction machinery and transportation vehicles.

45

Creating Business Synergies with the YamatoGroup
To expand our mobility business, in April 2020
YAMATO LEASE joined the Group as a joint
enterprise with Yamato Holdings. YAMATO LEASE
provides ﬁnancing services mainly focused ontruck leasing for transport companies, a usedtruck matching application called “Tora-Machi,”and business succession support services, aswell as other services. YAMATO LEASE has acustomer base of about 3,000 companies
specializing in the logistics industry, making it acompany with strengths unlike any other within

A used-truck matching application called“Tora-Machi” oﬀered by YAMATO LEASE

the Group. Additionally, YAMATO LEASE excels at
proposal-based sales that resolve management issues faced by transportation companies and, as aresult, the company has captured a ﬁxed market share in the truck leasing market.
Due to the diversiﬁcation of logistics needs and other factors, the demand for truck leasing is solid and is
expected to continue growing. The Groupʼs services and know-how include comprehensive vehiclerelated support services, asset management for distribution facilities, as well as BPO services. By
providing these services and know-how to various transportation enterprises through YAMATO LEASE,
we are committed to creating business synergies with YAMATO LEASE and expanding our business.
In addition to the YAMATO LEASE joint enterprise, the Group and Yamato Holdings have started
discussions on the creation of business synergies and the possibility of further business collaboration
based on the provision and utilization of our respective management resources and strengths. In order
to increase the value of YAMATO LEASE, which has strong connections with small and medium-sizedtransportation enterprises, we will continue to actively collaborate with the industry leader, the YamatoGroup, and implement concrete strategies.

Creating New Businesses in the Mobility
Business Field
In order to further invigorate the logistics mobility ﬁeld, we will engage in new business with a variety ofcompanies. For freight owners and transportation enterprises, we will provide solutions utilizing digitaltechnology to improve the eﬃciency of logistics through joint transportation, consolidated distribution,and the optimization of transportation routes. Also, in addition to proposing improvements in theeﬃciency of logistics through business matching with e-commerce businesses and building new mobility
services through collaboration with companies that are members of “MONET Consortium”*3, we will
engage in the development of eﬀorts such as business partnerships with partner companies and support
for venture companies.
The Group aims to become the leasing company that is “No. 1 in comprehensive strength” in thelogistics mobility ﬁeld by focusing management resources in response to various social issues associatedwith structural changes in the logistics mobility ﬁeld and creating new value.
*1

CASE: A term that has been coined from the initial letters of four automotive trends: Connected(connected cars), Autonomous (autonomous driving), Shared & Service (shared cars and driving
as a service), and Electric (electriﬁcation of vehicles).

46

*2

MaaS: An acronym for Mobility as a Service, which indicates the creation of services based onmeans of transportation (mobility).

*3

The MONET Consortium is a cross-company organization established by MONET Technologies (ajoint venture between SoftBank Corp. and the Toyota Motor Corporation) to promote collaboration
between companies for the realization of MaaS.

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47

Top > CSR > EnvironmentalReport

EnvironmentalReport
Environmental
Philosophy/
Environmental Policy

Environmental
Management

Fuyo Lease Group Key
Environmental Targets
and Results

Climate Change
Initiatives

Environmental
Performance

Environmental
Accounting

CSR

Fuyo Lease
Group's CSR
Solving Social
Issues throughBusiness
Environmental
ReportEnvironmental
Philosophy/
Environmental
PolicyGreen Bonds

Environmental
Management
Fuyo Lease
Group Key
Environmental
Targets andResults
ClimateChangeInitiatives
Environmental
Performance
Environmental
Accounting
Green Bonds

Social Report48

Governance andManagemnet
Each Group
Company's
Environmental
and Social
initiatives
External
Evaluation
Editorial Policy
Independent
assurance

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49

Top > CSR > EnvironmentalReport > EnvironmentalPhilosophy/EnvironmentalPolicy

EnvironmentalPhilosophy/
EnvironmentalPolicy
Environmental Philosophy

CSR

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

Fuyo Lease
Group's CSR

environmental policy.

Solving Social
Issues throughBusiness

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

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

3.Contributing to the development of a circular society
We promote the reuse and recycling of goods no longer leased, restrict the generation of waste, andensure proper disposal of waste.

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

Environmental
ReportEnvironmental
Philosophy/
Environmental
PolicyEnvironmental
Management
Fuyo Lease
Group Key
Environmental
Targets andResults
ClimateChangeInitiatives
Environmental
Performance
Environmental
Accounting

5.Establishing an environmental management system

Green Bonds

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.

50

Social ReportGovernance andManagemnet
Each Group
Company's
Environmental
and Social
initiatives
External
Evaluation
Editorial Policy
Independent
assurance

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51

Top > CSR > EnvironmentalReport > EnvironmentalManagement

EnvironmentalManagement
Environmental management system

CSR

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 an environmental management system structure that covers the Fuyo Lease
Group companies.

Fuyo Lease
Group's CSR
Solving Social
Issues throughBusiness
Environmental
ReportEnvironmental
Philosophy/
Environmental
PolicyEnvironmental
Management
Fuyo Lease
Group Key
Environmental
Targets andResults
ClimateChangeInitiatives
Environmental
Performance
Environmental
Accounting
Green Bonds

Environmental management system structure

Social Report52Acquired ISO14001 certiﬁcation
Fuyo Lease and Group companies acquired ISO14001

See Glossary

Governance andManagemnet

certiﬁcation for their main

business oﬃces in July 2006, and passed a renewal audit for the fourth time in June 2018. In August
2020, the Group passed a change audit associated with the relocation of the head oﬃce and a regular
audit. In order to practice environmentally conscious management, we will continue striving to robustly
implement our environmental management system.

ISO14001: 2015 scope of the acquired certiﬁcation
Fuyo General Lease: Head Oﬃce (engaged in leasing business, installment sales, ﬁnancing, andother ﬁnancial service operations)
Fuyo Lease Sales: Head Oﬃce and Tokyo 3R Center (processing re-leasing contracts as an agent,
selling and disposing of lease-expired properties, and purchasing and selling used properties)
Fuyo Network Service: Head Oﬃce, Technical Support Center and Hachioji Technical Center (sellingcomputers, software and networking devices)
FGL Group Business Service (engaged in contract sales administration and non-life insurance agent
business)
FGL Group Management Service (engaged in contract human resources and general aﬀairs
operations)

Appendix 1

ISO14001: 2015 Management System
Certiﬁcate

Click on the image to enlarge it.

Click on the image to enlarge it.

Internal environmental audit and externalaudit
The Fuyo Lease Group strives to continuously improve its environmental management system throughactivities such as internal environmental audits and external audits.

53

Each Group
Company's
Environmental
and Social
initiatives
External
Evaluation
Editorial Policy
Independent
assurance

Internal environmental audit
Initially, after the introduction of the environmental management system, all the departments, oﬃces,
branches and Group companies were subject to an internal environmental audit every year. Over time,the environmental management system was spread throughout all of the Group companies. Therefore,
since ﬁscal 2012, we have been conducting internal environmental audits on about half of thedepartments, oﬃces, branches, and Group companies every year in rotation.

Audited departments and audit results

Head Oﬃce
Departments/
Oﬃces

BranchesGroup
companies

FY 2016

FY 2017

FY 2018

FY 2019

9

23

14

18

27

departments/

departments/

departments/

departments/

departments/

oﬃces

oﬃces

oﬃces

oﬃces

oﬃces

-

1

-

-

-

1

None

1

branchNone

3companies

company

company

Major nonconformance

None

None

None

None

None

Minor nonconformance

None

None

None

None

None

None

None

None

None

None

2 cases

None

None

None

None

Opportunitiesfor
improvement*
Good
performance*

FY 2015

Opportunities for improvement: advice on making future improvements

External audit
In August 2020, we received an external audit for ISO14001 certiﬁcation.
We will continue making improvements by taking into consideration the audit results and advice we
receive.

54External audit results

Audit results

Strong point

Good point

Opportunities for
improvement*

Findings for
improvement

*

June
2016

June
2017

June
2018

June
2019

August
2020

None

None

None

1

None

case

2

1

3

1

3

cases

case

cases

case

cases

2

3

1

1

cases

cases

case

case

None

None

None

None

None

None

Opportunities for improvement: advice on making future improvements

Environmental education
The Fuyo Lease Group regularly provides environmental training to deepen the understanding of theenvironmental management system and to increase environment-related knowledge and skills.
The following table shows the implementation status for ﬁscal 2019

Implementation status of environmental education (FY 2019)
Training

Employee
Training

Number ofParticipants

PeriodEnvironmental elearning

July 2019

1,168 employees

Tokyo 3R Center
Training Program

July 201932 employees

Sanden Forest

May 2019

New employees

Biodiversity Training
Program31
employees

In ﬁscal 2019, we conducted an environmental e-learning program targeting all employees to increase
their knowledge of the latest environment-related information and environmental laws, and also
implemented the Tokyo 3R Center Training Program targeting new employees and others who wereinterested, under which they had an opportunity to visit sites practicing 3R for lease-expired properties,
in order to increase their understanding of the Group's environmental measures.

55

Tokyo 3R Center Training Program

Promoting taking the Eco Test
The Fuyo Lease Group is encouraging its employees to take the Certiﬁcation Test for Environmental
Specialists, Eco Test, in order to increase their environmental awareness.
In ﬁscal 2019, 11 employees passed the test, and as of the end of March 2020, a total of 282
employees have passed the test.

Environmental Risk Management
In addition to ensuring compliance with laws and regulations concerning waste disposal, we conduct onsite surveys of companies 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) and appropriately 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 andutilize the manifests* of industrial waste management.
*

Manifest: a document or electronic data for examining whether waste has been disposed ofappropriately. Waste generating business operators are required by the Waste Management Act toissue and collect, or register a manifest in order to conﬁrm proper disposal of waste.

For more details, please refer to the appropriate waste disposal approaches being adopted by Fuyo

Lease Sales, a group Company which have been contracted by Fuyo Lease to perform back-oﬃce tasks.

Compliance with environmental laws andregulations
Inspection Result

Cases

Violation of law

None

56

Inspection Result

Cases

Environment-related
complaints

None

The Fuyo Lease Group, through various environmental education activities, strives to ensure that all its
oﬃcers and employees comply with environmental laws and regulations. Furthermore, the Groupregularly conducts compliance checks concerning environmental laws and regulations, whereby thestatus of compliance with the environmental laws and regulations is conﬁrmed. The ﬁscal 2019
compliance checks, covering the period between February 2019 and January 2020, were inspected in
February 2020. 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
environment-related complaints.

Obtained the highest-level ranking in the DBJ Environmental Rating for the ninth
consecutive year
In ﬁscal 2019, as in the previous ﬁscal year,
the Company obtained the highest-level
ranking in the DBJ Environmental Rating*assigned by Development Bank of Japan,
Inc. for the ninth consecutive year for its
exceptionally advanced environmentallyconscious approach.
We were highly evaluated for our initiatives
that are aligned with our management
philosophy of “supporting corporate activities through our leasing business with a view tocontributing to the development of society.” Speciﬁcally, the following initiatives received
recognition: (1.) We continued to identify materiality and set as well as review KPIs while
being conscious of connections to our core businesses based on the SDGs andenvironmental changes caused by climate change and other issues. Additionally, weconstructed a company-wide sustainability management system through the establishmentof the Creating Shared Value Promotion Oﬃce. (2.) We became the ﬁrst general lease
company in Japan to join RE100. Additionally, we launched the Fuyo 100% Renewable
Electricity Declaration Support Program, established an original ﬁnancing model to promoterenewable energy, and have been promoting trailblazing initiatives. (3.) We positioned CSV
as the focal point of our long-term strategy, and not only did we respond to environmental
issues through the previously mentioned Energy & Environment ﬁelds, but we are also
actively creating new businesses that contribute to multi-faceted value creation based onsocial issues through the Medical & Welfare ﬁeld and BPO business.
We will continue to pursue environmental initiatives and actively disclose the results.

*

DBJ Environmental Rating is a rating system developed by the Development Bank ofJapan, Inc. for the rating companies based on the level of their environmental

57

management practices. Based on this, companies can receive loans from the bank at
preferential interest rates according to their respective ratings.

Glossary

ISO14001
ISO14001 is a global standard for environmental management system speciﬁcations
established by the International Organization for Standardization. The International
Organization for Standardization, headquartered in Switzerland, is a private organizationthat creates international standards.

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58

Top > CSR > EnvironmentalReport > FuyoLeaseGroupKeyEnvironmentalTargetsandResults

FuyoLeaseGroupKey
EnvironmentalTargetsandResults
The Fuyo Lease Group strives to achieve its
Environmental Targets.

Fuyo Lease
Group's CSRLong-term Environmental Targets
The Fuyo Lease Group has set long-term environmental targets of powering its operations with 50%
renewable energy by 2030 and 100% by 2050.

Key Environmental Targets

Climatechangeinitiatives

Promoteenergyconservation

Solving Social
Issues throughBusiness
Environmental
ReportEvaluation: ◯ target achieved, × target not achieved
Objectives

CSR

FY 2019
results

Scope

FY 2019 targets

Evaluation

FY 2020 targets

Fuyo General
Lease &
Group
companies*1

10.0% decrease
from the FY 2013
level of CO2
emissions (t-CO2)(Scope 1 & 2)

18.9% decrease
from the FY
2013 level○

10.0% decrease
from the FY 2013
level of CO2
emissions (t-CO2)(Scope 1 & 2)

Fuyo General
Lease &
Group
companies*1

5.0% decrease
from the FY 2013
level of energy
consumption(kWh)6.7% decrease
from the FY
2013 level
(kWh)

○

5.0% decrease
from the FY 2013
level of energy
consumption(kWh)10.0% decrease
from the FY 2013
level of gasoline
and diesel
consumed bycompany vehicles(L)

25.5% decrease
from the FY
2013 level (L)○

10.0% decrease
from the FY 2013
level of gasoline
and diesel
consumed bycompany vehicles(L)

Comply withenvironmental
laws andregulations

Fuyo General
Lease &
Group
companies*1

Assess compliancewithenvironmental
laws andregulations

Conducted
complianceassessment. No
non-compliance
found

○

Saving theenvironment
throughleasing

Fuyo GeneralLease

28 billion yen of
assets in energyeﬃcient andenvironmentallyfriendly
properties*2

33.1 billion yen○

Assess compliancewithenvironmental
laws andregulations

Environmental
Philosophy/
Environmental

Environmental
Management
Fuyo Lease
Group Key
Environmental
Targets andResults
ClimateChangeInitiatives
Environmental
Performance
Environmental
Accounting
Green Bonds

59

36 billion yen of
assets in energyeﬃcient andenvironmentallyfriendly properties

Objectives

Scope

Contributing

Fuyo GeneralMore than 95%

Leasereuse and recycle
rate for returnedto thecreation of a

FY 2019
results

100%

Evaluation

FY 2020 targets

Social Report○

100% reuse andGovernance andManagemnet

recycle rate for
returned PC

PC

circularsociety*1

FY 2019 targets

Scope: all domestic locations of Fuyo General Lease and Group companies including Fuyo Auto
Lease, Fuyo Network Service, Aqua Art, Fuyo Lease Sales and FGL Group Business Service

Each Group
Company's
Environmental
and Social
initiatives(formerly FGL Service).
*2

Machines related to energy including boilers and turbines, industrial waste recycling equipment,
pollution control devices, environmental equipment such as energy saving devices including
combined heat and power systems and water puriﬁcation systems, and renewable energy (i.e.
solar power generation) supply facilities.

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valuation
Editorial Policy
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assurance

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Top > CSR > EnvironmentalReport > ClimateChangeInitiatives

ClimateChangeInitiatives
Basic Approach

CSR

Today, climate change is a universally recognized problem, and increasing greenhouse gas emissions aremaking 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 with environmentally-friendly products and services are more important thanever.The Fuyo Lease Group is holding up “responding to climate change issues and renewable energy”
as one of its materialities (material issues), and working towards climate change mitigation by reducing
greenhouse gas emissions from our operations. We carry out business activities in view of risks andFuyo Lease
Group's CSR
Solving Social
Issues throughBusiness

opportunities in the business environment that climate change brings. With a BCP in place, we are well
prepared for any emergency in which our business activities could be disrupted by the destruction ofsocial infrastructure caused by a natural disaster. We also recognize that business opportunities lie in

Environmental
Reportrenewable energy generation and energy-eﬃcient assets leasing businesses. This is an area we will
focus upon as one of the strategic areas of the Medium-term Management Plan. We aim to grow ourbusinesses alongside activities to mitigate climate change.
Examples of the risks and opportunities that the Fuyo Lease Group perceives climate change will bringabout are as follows:

Impact on business results due to regulations such as carbon
tax and major regulatory changes (medium-to-long term)

Risks

Restrictions on business activities due to damage to social
infrastructure etc. resulting from an increase in natural
disasters (medium-to-long term)
Decline in revenues from electricity sales in the mega-solar
business due to the impact of unseasonal weather (mediumto-long term)

Increase in demand for renewable energy (medium-to-longterm)

Opportunities

Increase in demand for leasing energy-saving properties, etc.
(medium-to-long term)
Increase in demand for environmentally-friendly products
and services (medium-to-long term)

Environmental
Philosophy/
Environmental
PolicyEnvironmental
Management
Fuyo Lease
Group Key
Environmental
Targets andResults
ClimateChangeInitiatives
Environmental
Performance
Environmental
Accounting
Green Bonds

Social Report61

As with the other environmental issues, we have established a system for managing climate change
countermeasures with the CEO (President of Fuyo Lease) and the Environmental Control Oﬃcer(Executive oﬃcer supervising the Creating Shared Value Promotion Oﬃce). The president, who is ourchief executive oﬃcer, regularly receives reports on the Group's progress on climate change initiatives,and decides on policies after reporting and discussing particularly important issues with the Board of
Directors. We will continue to properly manage and promote our eﬀorts group-wide.

Initiatives to Reduce Greenhouse Gas
Emissions

Governance andManagemnet
Each Group
Company's
Environmental
and Social
initiatives
External
Evaluation
Editorial Policy

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 by setting
targets that lower our CO₂ emissions and energy consumption, and work to reduce power usage, as wellas our company vehicles' fuel consumption and exhaust emissions. In 2018, we started to issue green
bonds (available only to those businesses that are expected to improve the environment) to raise funds
from a variety of sources while promoting renewable energy. In addition, we joined RE100, a businessinitiative which aims to source 100% renewable energy to power business activities, as the ﬁrst
comprehensive leasing company in Japan. In 2019, we endorsed the Task Force on Climate-related
Financial Disclosuresʼ (TCFD) recommendations. Not only does the Group make direct eﬀorts to reduce
its own greenhouse gas emissions but also makes indirect contributions to reducing greenhouse gas
emissions through promoting renewable energy by utilizing schemes of lease and ﬁnance.

Total CO₂ Emissions (Scope 1,2)*1 *2

Total Energy Consumption*2

62

Independent
assuranceElectricity Consumption*2*

Total Gasoline and Diesel
Consumed by Company
Vehicles*2

A checkmark ☑ indicates that ﬁscal 2019 ﬁgures have been assured by KPMG AZSA Sustainability
Co., Ltd.

Independent assurance*1

Total CO₂ emissions were calculated with the emission factors speciﬁed by the government basedon the Ministerial Ordinance Concerning GHG emissions Associated with Business Activities ofSpeciﬁed Emitters (The emissions associated with electricity are calculated based on the emission
factor issued by power transmission and distribution business operators of where our regional
operations and oﬃces are located). Fuyo General Lease and the Groupsʼ companies are notincluded in speciﬁed emitters. Our scope 1 and 2 emissions were 688 t-CO₂ and 1,319 t-CO₂
respectively.

*2

Data coverage: all domestic locations of Fuyo General Lease, Fuyo Auto Lease, Fuyo Network
Service, FGL Group Business Service, Aqua Art, Sharp Finance, Accretive, INVOICE, and FUJITA.
Before March 2017 do not include ﬁgures of Sharp Finance and Accretive as their data collection
began in ﬁscal 2017. Before March 2019 do not include ﬁgures of INVOICE and FUJITA as theirdata collection began in ﬁscal 2019.

*3

5 group companies: all domestic locations of Fuyo Auto Lease, Fuyo Network Service, Fuyo Lease
Sales, FGL Group Business Service, and Aqua Art.

*4

2 group companies: all domestic locations of Sharp Finance and Accretive.

*5

2 group companies: all domestic locations of INVOICE and FUJITA.

63

Adapting to climate change
The Fuyo Lease Group is not only engaged in mitigation activities for climate change, but the Group isalso 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 we are working to minimize risks.

Energy Conservation via Products andServices
We have partnered with energy-saving equipment manufacturers, construction companies, andcompanies in other various sectors to help customers save energy through the ESCO service and otherprograms. The ESCO service provides everything needed to improve energy eﬃciency, including
technology, equipment, personnel, and funding, and achieves energy conservation withoutcompromising 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 tailored to their energy usage. Examples of the solutions include energy-saving control andoperational improvement for air-conditioning 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 and other commercial facilities as oﬀgrid schemes for self-consumption. Along with various ﬁnancing options, we introduce them tocustomers 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 allianceswith venture companies that have advanced renewable energy-related technologies, and supporting
industrialization and commercialization.

64

Initiatives in the Solar Power Business
At Fuyo Lease, we operate a total of 35 solar
power plants in Japan, supplying electricity
to local communities for approximately
57,660 households. In February 2020, we
began commercial operation of Namie Sakai
Solar Power Plant 1 and 2 in Namie Town,
Fukushima Prefecture, Japan. These power
plants are the ﬁrst project in a government
designated diﬃcult-to-return zone. The installed capacity of the photovoltaic power plantthat started operation this time is approximately 60 MW-dc, and the estimated amount ofannual power generation is approximately 60.27 million kWh, which is equivalent to annual
power consumption for 16,700 general households*. The plants are the largest solar power
plants of the Group.
*

Calculated based on 3,600kW per household

Solar Power Generated (output)/Power Supplied/CO₂ Reduction(estimation)

65

Promoting Renewable Energy-Related Infrastructure
Recently, more and more Japanese companies have been joining RE100. However, smalland medium-sized enterprises, administrative agencies, hospitals, and educational
institutions do not meet the requirements for joining RE100. To enable these organizations
to implement renewable energy initiatives and raise public awareness throughout Japan,
eﬀorts are being made to develop a new framework for the 100% renewable energy
initiative, “the 100% Renewable Electricity Declaration RE Action,” which small- andmedium-sized enterprises can also take part in.
In response to these developments, we have launched “Fuyo 100% Renewable Energy
Declaration Support Program.” The purpose of the program is to promote a transition to
renewable energy by providing ﬁnancial support to businesses and organizations that havesigned up to “the 100% Renewable Electricity Declaration RE Action.” More speciﬁcally, weraise funds from investors and issue green bonds and use the gathered funds to support
businesses and organizations that have joined “the 100% Renewable Electricity Declaration
RE Action” to incorporate renewable energy and/or energy eﬃcient equipment into theiroperations. “Fuyo 100% Renewable Energy Declaration Support Program” has been
selected as a Model Case for the ﬁscal 2019 Green Bond Issuance by the Ministry of theEnvironment in recognition of its uniqueness and contribution to Japan's eﬀorts to promoterenewable energy countrywide. As “the 100% Renewable Energy Declaration RE Action”
progresses, we are committed to providing active support to our clients in response to theirﬁnancing needs for renewable energy.

66

Providing Support for Investments in Renewable Energy-Related Technologies
and Their 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.
Girasol Energy Inc., with which a capital and business alliance was entered into in ﬁscal
2019, is a venture company from the University of Tokyo, and is developing themaintenance and management IoT platform PPLC-PV* for solar power facilities. This
platform collects and analyzes data such as current, voltage, and temperature, thus
making it possible to understand operational status on a panel-by-panel basis and toremotely identify problems as well as abnormalities at an early stage. One of the mostimportant factors in making renewable energy a mainstay power source is the ability tooperate power plants stably over a long period of time. We believe that the services
provided by this company will contribute to the maintenance and expansion of solar power
generation.
We strive to promote the spread of renewable energy and to create new business
opportunities through active alliances with these venture companies.
*

PPLC-PV stands for a pulse power line communication for series-connected PV
monitoring.

Support results
Investment
TimingPartner

Description

June 2018

Exergy Power Systems

Development andmanufacture of nextgeneration energy storage
systemsMar. 2019

NExT-e Solutions

Provision of battery
management systems thatutilize advanced battery
control technologies

Feb. 2020

Girasol Energy

Development of IoT platforms
for the maintenance andmanagement of solar power
facilities

Disclaimer

DisclosurePolicy

Copyright(C)FuyoGeneralLeaseCo.,Ltd.AllRights
Reserved

Privacypolicy
67

Top > CSR > EnvironmentalReport > EnvironmentalPerformance

EnvironmentalPerformance
Energy / CO₂*1
Total Energy Consumption

CSR
Electricity Consumption
Fuyo Lease
Group's CSR
Solving Social
Issues throughBusiness
Environmental
ReportTotalGasolineandDiesel
ConsumedbyCompany
VehiclesTotal CO₂ Emissions (Scope 1,
2)*5

Environmental
Philosophy/
Environmental
PolicyEnvironmental
Management
Fuyo Lease
Group Key
Environmental
Targets andResults
ClimateChangeInitiatives
Environmental
Performance
Environmental
Accounting
Green Bonds

Social Report68Total CO₂ Emissions(adjusted) (Scope 1, 2)*6

Governance andManagemnet
Each Group
Company's
Environmental
and Social
initiatives
External
Evaluation
Editorial Policy*

A checkmark ☑ indicates that ﬁscal 2019 ﬁgures have been assured by KPMG AZSA Sustainability
Co., Ltd.

Independent
assurance

Independent assurance

CO₂ emissions (Scope 1, 2, 3)CO₂ emissions (t-CO₂)
Ratio of total CO₂
emissions(2020/3)

2016/32017/3

2018/3

2019/32020/3☑

Scope 1

154

163

770

707

687

0.02%

Scope 2

1,062

1,108

1,304

1,230

1,319

0.05%

Scope 3*7

1,420,896

1,639,334

1,768,197

2,789,556

2,866,387

99.93%

Total CO₂
emissions

1,422,112

1,640,605

1,770,271

2,791,493

2,868,394

100%

69

CO₂ emissions(Components of Scope 3)*7

2019/32020/3☑

Composition
ratios intotal CO₂
emissions(2020/3)

2,120,559

2,166,659

75.5885%

CO₂ emissions (t-CO₂)
Category

Calculation
method/remarks

Calculated bymultiplying theactual amount bysegment based on
the contract
execution results ofleasing and

1. Purchased
goods andservices

installment sales forthe current ﬁscal
year in consolidated
accounting by theemission intensity
based on the InputOutput Tables forJapan and purchaseprice for the target
device.

994

1,074

0.0375%

Calculated bymultiplying theacquisition amountof corporate assets
purchased in thecurrent ﬁscal yearby the emission

2. Capital
goods

intensity.

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

347

362

0.0126%

Calculated bymultiplying theamount of electricity
and fossil fuels usedin the Scope 1 and2 calculations byemission intensity.

702019/3

2020/3☑

Composition
ratios intotal CO₂
emissions(2020/3)

413,244436,416

15.2253%

CO₂ emissions (t-CO₂)
Category

Calculation
method/remarks

Based on thecontract execution
results of leasing
and installment
sales for the current
ﬁscal year inconsolidated
accounting, andassuming theweight per amountof therepresentative
product, the4.
Transportation
anddistribution(upstream)transportation tonne-kilometer iscalculated from thetransportation
distance (domestic
truck transportationof 1,000 km oneway) based on thetransportation
scenario. Thistransportation tonne-kilometer is thenmultiplied by thedomestic truck
transportation
emission intensity.

258

291

0.0102%

5. Waste
generated inoperations

Calculated bymultiplying theamount of industrial
waste and theamount of generalwaste by theemission factors foreach type of waste
and disposal
method.

255

314

0.0110%Calculated bymultiplying thenumber of
consolidated

6. Businesstravelemployees by theemission intensity
per employee.

712019/3

2020/3☑

Composition
ratios intotal CO₂
emissions(2020/3)471

576

0.0201%CO₂ emissions (t-CO₂)
Category

Calculation
method/remarks

Calculated bymultiplying thenumber of
consolidated
employees by the
number of businessdays and the

7. Employee
commutingemission intensity
by work type andcity per number ofworking days.

0

0

0%

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

0

0

0%

9.
Transportation
anddistribution(downstream)Not
applicable(There are
no applicableemissions since theCompany bears
transportation costsin the entire
logistics process.)

0

0

0%

10. Processingof sold
products

Not
applicable(There are
no applicableemissions since theCompany does nothandle intermediate
products.)

722019/3

2020/3☑

Composition
ratios intotal CO₂
emissions(2020/3)

247,227

254,8488.8909%CO₂ emissions (t-CO₂)
Category

Calculation
method/remarks

Calculated byestimating theenergy consumption
during use andmultiplying by theemission intensity
for each energy
type, based on thecontract execution
results of leasing
and installment
sales for the current
ﬁscal year inconsolidated

11. Use of soldproducts

accounting,assuming sales
volume per price ofthe representative
product and thestandard usage
scenario (withassumptions
regarding productdesign speciﬁcations
and consumer
conditions of use),
etc.

16

17

0.0006%

12. End-of-life
treatment ofsold products

Based on thecontract execution
results of
installment sales forthe current ﬁscal
year in consolidated
accounting, theweight per amountof representative
product is assumed,
the installment sales
product weight iscalculated, and thisweight is multipliedby the emission
intensity for eachwaste type.

73

2019/3

2020/3☑

Composition
ratios intotal CO₂
emissions(2020/3)000%CO₂ emissions (t-CO₂)
Category

Calculation
method/remarks

Emissionsassociated with useof leased products
are recorded in

13. Assets(downstream)

Category 11.

0

0

0%

Not
applicable(There are
no applicableemissions since the14. Franchises

Company has nofranchise.)

6,185

5,830

0.2034%

Calculated bymultiplying ﬁscal
2018ʼs Scope 1 and2 emissions ofmajor investees by
the shareholding
ratio. (2019/3 iscalculated bymultiplying the
Scope 1 and 2
emissions of major
investees in ﬁscal
2017 by theshareholding ratio.)

2,789,556

2,866,387

100%

The Ministry of theEnvironmentʼs“Basic Guidelines on

15.
Investments

Accounting forGreenhouse Gas
EmissionsThroughout theSupply Chain(ver.3.0)” and the

Total CO₂
emissions“LCI database
IDEAv2 (forcalculating
greenhouse gas
emissions in supply
chains)” are applied
to the above
emission intensity.

74

*1

Data coverage: all domestic locations of Fuyo General Lease, Fuyo Auto Lease, Sharp Finance,
Accretive, INVOICE, FUJITA, Fuyo Network Service, Aqua Art, Fuyo Lease Sales and FGL Group
Business Service.
Note that since Sharp Finance and Accretive began counting from ﬁscal 2017, and INVOICE andFUJITA began counting from ﬁscal 2019, values before that are not shown.

*2

5 group companies: all domestic locations of Fuyo Auto Lease, Fuyo Network Service, Aqua Art,
Fuyo Lease Sales, and FGL Group Business Service.

*3

2 group companies: all domestic locations of Sharp Finance and Accretive.

*4

2 group companies: all domestic locations of INVOICE and FUJITA.

*5

Total CO2 emissions were calculated with the emission factors speciﬁed by the government basedon the Ministerial Ordinance Concerning GHG emissions Associated with Business Activities ofSpeciﬁed Emitters (The emissions associated with electricity are calculated based on the emission
factor issued by power transmission and distribution business operators of where our regional
operations and oﬃces are located). Fuyo General Lease and the Groups' companies are notincluded in speciﬁed emitters.

*6

Total CO₂ emissions (adjusted) were calculated with the emission factors speciﬁed by thegovernment 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 and distribution
business operators of where our regional operations and oﬃces are located).

*7

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)." Furthermore, to reﬁne numerical values,
calculations were done using the new standard from ﬁscal 2018. The scope of calculations is the
Fuyo Lease Group.

75

WasteVolume of Industrial Waste
Generated*8

Volume of Waste Generated*9*8

Data coverage: all domestic locations of Fuyo General Lease and Fuyo Lease Sales.

*9

Data coverage: Fuyo General Lease/Headquarter (including FGL Group Business Service)*10

All volume of waste paper is dissolution-processed.

Water Consumption*11
Water Consumption*11

The scope of calculations is Fuyo General Lease / Head Oﬃce (including FGL Group Business
Service) and Aqua Art Oﬃce Supplies

76

Oﬃce Supplies
Quantity of photocopier paper
purchased*12*12

Data coverage: all domestic locations of Fuyo General Lease, Fuyo Auto Lease, Sharp Finance,
Accretive, INVOICE, FUJITA, Fuyo Network Service, Aqua Art and FGL Group Business Service.
Before March 2017 do not include ﬁgures of Sharp Finance and Accretive as their data collection
began in ﬁscal 2017.

*13

5 group companies: all domestic locations of Fuyo Auto Lease, Fuyo Network Service, Aqua Art,
Fuyo Lease Sales, and FGL Group Business Service.

*14

2 group companies: all domestic locations of Sharp Finance and Accretive.

*15

2 group companies: all domestic locations of INVOICE and FUJITA.

Disclaimer

DisclosurePolicy

Copyright(C)FuyoGeneralLeaseCo.,Ltd.AllRights
Reserved

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77Top > CSR > EnvironmentalReport > EnvironmentalAccounting

EnvironmentalAccounting
Publishing the Results of Environmental
Activities by Introducing the Environmental
Accounting System
The Fuyo Lease Group focuses eﬀorts not only on improving its environmental performance but also on

CSR

Fuyo Lease
Group's CSR

proposing services useful for enhancing the environmental performance of customers.
In addition, the Group has introduced environmental accounting* with the aim of conducting aquantitative assessment of the results of its environmental activities and reporting the results of theSolving Social
Issues throughBusiness

assessment to customers and other stakeholders in an easy-to-understand format.
In ﬁscal 2019, the scope of this environmental accounting was expanded to include INVOICE andFUJITA, resulting in an increase in electricity consumption and a decrease in CO2 emissions compared

Environmental
Reportwith the previous ﬁscal year. On the other hand, the amount of waste generated by the Group increased
due to the establishment of a prudent administration system for disposing of leased properties. In
addition, there were no ﬁnance leases for renewable energy projects, and, as a result and based on ourestimate, the Group's contribution to customers' CO2 reductions fell below the previous year's level.
*

Environmental accounting: Environmental accounting is a procedure that allows a company toidentify the cost of environmental conservation during the normal course of business, identify
beneﬁt gained from such activities, provide the best possible means of quantitative measurement
and support the communication of its results.

Environmental Accounting for Our Environmental Conservation
Measures*1
The Company identiﬁes the costs and economic beneﬁts associated with environmental conservation
activities in accordance with policies stipulated in the "Environmental Accounting Guidelines" of Japan's
Ministry of the Environment, in order to assess the Fuyo Lease Group's environmental conservation
initiatives.

Environmental
Philosophy/
Environmental
PolicyEnvironmental
Management
Fuyo Lease
Group Key
Environmental
Targets andResults
ClimateChangeInitiatives
Environmental
Performance-: No applicable data is available.
×: Not recorded in the Environmental Accounting

Environmental
Accounting
Green Bonds

Social Report78

Fiscal 2019
Environmental
preservation costs
Activity

Promotingresources saving
and energy
saving activities

Contributing tothedevelopment ofa recycling
society

Economic eﬀects
of environmental
preservation
activities (tenthousand yen)

Investment(tenthousandyen)

Expenses(ten
thousandyen)"Reduction
in CO2emissions(tCO₂)*2"

Reduction
in volumeof wastedischarge(tonne)Introducing energysaving equipment,
eco-friendly oﬃce
activities, etc.

0

0

-89

-

-456

Purchasing green
electric power

×

0

0

-

×

Reducing use of paper for copying
and printing

×

×

-

-5.6

-771

Reducing fuel consumption andexhaust emissions of company cars

×

160.3

19

-

173

×

22,754*3-506*477,785

×

4.81

×

×

×

Providing environmental education
on a regular basis

×

×

×

Publishing information on
environmental activities through
CSR reports, etc.

×

×

×

Environmental objective

Reducing
electricity
use

Establishing a prudent
administration system for the
disposal of goods no longer leased

Acquiring, maintaining andexpanding ISO14001 Certiﬁcationby the Group

Establishing anenvironment
management
system

Eﬀects of environmental
preservation

Contributing to local environmental
education*5
Total

79

×

378

×

×

×

0

28,102-70

500

76,731Fiscal 2018
Environmental
preservation costs
Activity

Promotingresources saving
and energy
saving activities

Contributing tothedevelopment ofa recycling
society

Economic eﬀects
of environmental
preservation
activities (tenthousand yen)

Investment(tenthousandyen)

Expenses(ten
thousandyen)"Reduction
in CO2emissions(tCO₂)*2"

Reduction
in volumeof wastedischarge(tonne)Introducing energysaving equipment,
eco-friendly oﬃce
activities, etc.

0

0

74

-

-71

Purchasing green
electric power

×

0

0

-

×

Reducing use of paper for copying
and printing

×

×

-

1.1

14

Reducing fuel consumption andexhaust emissions of company cars

×

229.4

63

-

-93

×

23,287*3-385*4

89,959

×

6,546

×

×

×

Providing environmental education
on a regular basis

×

×

×

Publishing information on
environmental activities through
CSR reports, etc.

×

×

×

Environmental objective

Reducing
electricity
use

Establishing a prudent
administration system for the
disposal of goods no longer leased

Acquiring, maintaining andexpanding ISO14001 Certiﬁcationby the Group

Establishing anenvironment
management
system

Eﬀects of environmental
preservation

Contributing to local environmental
education*5
Total

80

×

454

×

×

×

0

30,516137

386

89,809Fiscal 2017
Environmental
preservation costs
Activity

Promotingresources saving
and energy
saving activities

Contributing tothedevelopment ofa recycling
society

Economic eﬀects
of environmental
preservation
activities (tenthousand yen)

Investment(tenthousandyen)

Expenses(ten
thousandyen)"Reduction
in CO2emissions(tCO₂)*2"

Reduction
in volumeof wastedischarge(tonne)Introducing energysaving equipment,
eco-friendly oﬃce
activities, etc.

0

0

-231

-

-2,244Purchasing green
electric power

×

0

0

-

×

Reducing use of paper for copying
and printing

×

×

-

-6.8

-94

Reducing fuel consumption andexhaust emissions of company cars

×

126.6

-607

-

-3,468×

18,495*3-249*4

82,407

×

3,705

×

×

×

Providing environmental education
on a regular basis

×

×

×

Publishing information on
environmental activities through
CSR reports, etc.

×

×

×

Environmental objective

Reducing
electricity
use

Establishing a prudent
administration system for the
disposal of goods no longer leased

Acquiring, maintaining andexpanding ISO14001 Certiﬁcationby the Group

Establishing anenvironment
management
system

Eﬀects of environmental
preservation

Contributing to local environmental
education*5
Total

81

×

491

×

×

×

0

22,818-838

242

76,601Fiscal 2016
Environmental
preservation costs
Activity

Promotingresources saving
and energy
saving activities

Contributing to
the developmentof a recycling
society
Establishing anenvironment
management
system

Eﬀects of environmental
preservation

Economic eﬀects
of environmental
preservation
activities (tenthousand yen)

Investment(tenthousandyen)

Expenses(ten
thousandyen)

Reduction inCO2emissions(tCO₂)*2

Reduction
in volumeof wastedischarge(tonne)Introducing energysaving equipment,
eco-friendly oﬃce
activities, etc.

0

0

-45

-

60

Purchasing green
electric power

×

0

0

-

×

Reducing use of paper for copying
and printing

×

×

-

-0.2

45

Reducing fuel consumption andexhaust emissions of company cars

×

105.3

-10

-

28

Establishing a prudent
administration system for the
disposal of goods no longer leased

×15,750*3-

236*4

72,945Acquiring, maintaining andexpanding ISO14001 Certiﬁcationby the Group

×

2,788

×

×

×

Providing environmental education
on a regular basis

×

×

×

Publishing information on
environmental activities through
CSR reports, etc.

×

×

×

Environmental objective

Reducing
electricity
use

Contributing to local environmental
education*5
Total

82

×

1,058

×

×

×

0

19,701-55

236

73,078

Fiscal 2015
Environmental
preservation costs
Activity

Promotingresources saving
and energy
saving activities

Contributing to
the developmentof a recycling
society

Establishing anenvironment
management
systemExpenses(ten
thousandyen)

Reduction inCO2emissions(tCO₂)*2

Reduction
in volumeof wastedischarge(tonne)Introducing energysaving equipment,
eco-friendly oﬃce
activities, etc.

0

0

66

-

173

Purchasing green
electric power

×

0

0

-

×

Reducing use of paper for copying
and printing

×

×

-

-0.4

-65

Reducing fuel consumption andexhaust emissions of company cars

×

52.4

5

-

350

Establishing a prudent
administration system for the
disposal of goods no longer leased

×

15,749*3-

237*4

49,984

Acquiring, maintaining andexpanding ISO14001 Certiﬁcationby the Group

×

2,858

×

×

×

Providing environmental education
on a regular basis

×

×

×

Publishing information on
environmental activities through
CSR reports, etc.

×

×

×

Reducing
electricity
use

Total

×

1,247

×

×

×

0

19,90771

236

50,442The scope of calculations through ﬁscal 2016 was Fuyo General Lease Co., Ltd., Fuyo Auto Lease
Co., Ltd., Fuyo Network Service Co., Ltd., Aqua Art Co., Ltd , Fuyo Lease Sales Co., Ltd., FGL
Group Business Service Co., Ltd.; the scope of calculations since ﬁscal 2017 added Sharp FinanceCo., Ltd. and Accretive Co., Ltd., and the scope of calculations since ﬁscal 2019 was expanded to
all domestic business operations of ten companies, which are the above eight companies plus
INVOICE Inc. and FUJITA Co., Ltd.

*2

Economic eﬀects
of environmental
preservation
activities (tenthousand yen)

Investment(tenthousandyen)

Environmental objective

Contributing to local environmental
education*5*1

Eﬀects of environmental
preservation

CO2 emissions reduction is calculated using the CO2 emission factor stipulated in the "Ministerial
Ordinance on Reporting of Greenhouse Gas Emissions by Speciﬁed Emitters."(CO2 emissions from electricity are calculated using the actual CO2 emission factor for each ﬁscal
year of general power transmission and distribution business operators which supply electricity inareas where business operations and oﬃces that are included in the scope of calculations arelocated.)*3

Costs associated with reuse and recycling processes and costs associated with management ofindustrial waste disposal operators.

*4

The economic beneﬁts of reusing and recycling PCs and TFT-LCD panels.

*5

The costs required to donate (free rental) the interior aquarium ʻʼAQUA ARTʼʼ to local nursing
schools, etc. for environmental education.

83Environmental Accounting for Global Environmental
Conservation Through the Leasing Business
The Fuyo Lease Group conducts business activities that contribute to global environmental conservation in its core business of
the leasing business and estimates the social eﬀects of these activities (economic beneﬁts to customers) using the Group's own
calculation method.
-: No applicable data is available.
×: Not recorded in the Environmental Accounting

Fiscal 2019

Activity

Protecting
the global
environment
throughleasingbusiness

Provision ofenvironmentrelated
products andservices*1

Environmental objective

Promoting thepurchase ofenvironmentallyfriendly assets

Environmentallyfriendlyassets*2

Eco-cars*3

Reduction in CO2emissions by customers
through our environmentrelated products andservices (estimate)*4
Reduction
in CO2emissions(tCO₂/year)*5

Reduction
in volumeof wastedischarge(tonne)¥4.2 billion

40,239

×

5,332

7,903

×

vehiclesPromoting the conclusion of PC Eco &Value lease contracts

60,740×

332*6

Promoting project ﬁnancing such as
renewable energy

0 billion

0××

48,142

332

Total

84

Fiscal 2018

Activity

Protecting
the global
environment
throughleasingbusiness

Provision ofenvironmentrelated
products andservices*1

Environmental objective

Promoting thepurchase ofenvironmentallyfriendly assets

Environmentallyfriendlyassets*2

Eco-cars*3

Reduction in CO2emissions by customers
through our environmentrelated products andservices (estimate)*4
Reduction
in CO2emissions(tCO₂/year)*5

Reduction
in volumeof wastedischarge(tonne)¥5.2 billion

54,054

×

5,837

8,227

×

×

401*6

vehiclesPromoting the conclusion of PC Eco &Value lease contracts

73,231

Promoting project ﬁnancing such as
renewable energy¥10 billion

55,675××

117,956

401

Total

85

Fiscal 2017

Activity

Protecting
the global
environment
throughleasingbusiness

Provision ofenvironmentrelated
products andservices*1

Environmental objective

Promoting thepurchase ofenvironmentallyfriendly assets

Environmentallyfriendlyassets*2

Eco-cars*3

Reduction in CO2emissions by customers
through our environmentrelated products andservices (estimate)*4
Reduction
in CO2emissions(tCO₂/year)*5

Reduction
in volumeof wastedischarge(tonne)¥4.4 billion

47,429×

7,618

10,342

×

×

263*6

vehiclesPromoting the conclusion of PC Eco &Value lease contracts

49,521

Promoting project ﬁnancing such as
renewable energy¥0.3 billion

1,503

×

×

59,274263

Total

Fiscal 2016

Activity

Protecting
the global
environment
throughleasingbusiness

Provision ofenvironmentrelated
products andservices*1

Environmental objective

Promoting thepurchase ofenvironmentallyfriendly assets

Environmentallyfriendlyassets*2

Eco-cars*3

Reduction in CO2emissions by customers
through our environmentrelated products andservices (estimate)*4
Reduction
in CO2emissions(tCO₂/year)*5

Reduction
in volumeof wastedischarge(tonne)¥2.7 billion

19,127

×

6,252

8,375

×

30,327288

vehicles

Total

×

86

Activity

Provision ofenvironmentrelated
products andservices*1

Environmental objective

Reduction in CO2emissions by customers
through our environmentrelated products andservices (estimate)*4
Reduction
in CO2emissions(tCO₂/year)*5

Reduction
in volumeof wastedischarge(tonne)×

288*6

Promoting the conclusion of PC Eco &Value lease contracts

55,244

Promoting project ﬁnancing such as
renewable energy¥0.5 billion

2,825

×

×

30,327288

Total

Fiscal 2015

Activity

Protecting
the global
environment
throughleasingbusiness

Provision ofenvironmentrelated
products andservices*1

Environmental objective

Promoting thepurchase ofenvironmentallyfriendly assets

Environmentallyfriendlyassets*2

Eco-cars*3

Reduction
in CO2emissions(tCO₂/year)*5

Reduction
in volumeof wastedischarge(tonne)¥3.4 billion

29,592

×

5,360

7,167

×

×

230*6

vehiclesPromoting the conclusion of PC Eco &Value lease contracts

39,775

Promoting project ﬁnancing such as
renewable energy¥2.5 billion

13,927××

50,686

230

Total

*1

Reduction in CO2emissions by customers
through our environmentrelated products andservices (estimate)*4

Figures for contract amounts and number of units, etc. contracted from ﬁscal 2015 to 2019.

87

*2

The subject of calculations is Fuyo General Lease Co., Ltd. Of properties Fuyo General Lease has
deﬁned as environmentally friendly properties, and economic beneﬁts are calculated for cogeneration equipment, energy saving equipment and air conditioning equipment.

*3

The subject of calculations is Fuyo Auto Lease Co., Ltd. Of properties Fuyo Auto Lease has deﬁned
as eco-cars, and economic beneﬁts are calculated for low-emission gas vehicles, hybrid cars, LPG
powered cars and electric vehicles.

*4

Economic beneﬁts are estimated based on the relationship between price of general equipment
and its beneﬁts and may diﬀer from actual beneﬁts.

*5

CO2 emissions reduction is achieved by customers per year through environmentally friendly
properties (projects). If customers continue to use the lease properties (projects) in the following
ﬁscal year and beyond, the same amount of economic beneﬁts as the previous ﬁscal year will be
generated.

*6

The economic beneﬁts generated assuming that all the PCs for which lease agreements wereconcluded from ﬁscal 2015 to 2019 are reused.

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88Top > CSR > EnvironmentalReport > GreenBonds

GreenBonds
Fuyo Lease has issued green bonds (unsecured straightbonds) through a public oﬀering in the Japanese
domestic market.
Green bonds are receivables, which are issued by companies and local governments to fund green
projects (businesses with environmental beneﬁts, which includes renewable energy, building andretroﬁtting of energy-saving structures, and prevention and management of environmental pollution).
Through the issue of green bonds, Fuyo Lease is diversifying its fund raising methods in addition tofurther promoting initiatives to address the problem of climate change, including the spread ofrenewable energy, and contributing to the realization of a sustainable society.

Issuance of green bonds
Fuyo 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.20 unsecured corporate bonds (limited to corporate bonds with a
special agreement on the same priority) (Green Bond)

CSR

Fuyo Lease
Group's CSR
Solving Social
Issues throughBusiness
Environmental
ReportEnvironmental
Philosophy/
Environmental
PolicyEnvironmental
Management
Fuyo Lease
Group Key
Environmental
Targets andResults
ClimateChangeInitiatives
Environmental
Performance
Environmental
Accounting
Green Bonds

Social Report89Governance andManagemnet
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and Social
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90Top > CSR > EnvironmentalReport > GreenBonds> FuyoGeneralLeaseCo.,Ltd.No.17unsecuredcorporatebonds(limitedtocorporatebondswithaspecialagreementonthesamepriority)(GreenBond)

FuyoGeneralLeaseCo.,Ltd.No.17
unsecuredcorporatebonds(limited
tocorporatebondswithaspecial
agreementonthesamepriority)(GreenBond)
CSR

Outline of the Green Bond
Name

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

Fuyo Lease
Group's CSR
Solving Social
Issues throughBusiness

Application period

October 26, 2018

Payment dateNovember 2, 2018

Environmental
ReportIssue duration

5 years

Social Report

10 billion yen

Governance andManagemnet

Issuance amount

Coupon rate

Use of proceeds

Ratings

0.210%

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

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

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Independent
assurance91Third-party assessment of green bondeligibility
JCR green bond rating
Fuyo General Lease acquired a third-party rating from the Japan Credit Rating Agency, Ltd. (JCR) of
Green 1, the highest score in the JCR Green Bond Rating system with regards to green bond eligibility.

JCR Green Bond Rating（559KB）

Ministry of the Environment Financial Support Programme forGreen Bond Issuance
The acquisition of a third-party rating makes the bond eligible for a subsidy from the Japanese Ministryof the Environment 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)

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 (Japanesealphabetic 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

92

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 fund existing solar power generating facilities owned by the Company's subsidiary andto capital investment in solar power generating facilities under construction by the Company's
subsidiary.

EﬀectonimprovingtheenvironmentThetotalannualeﬀectonreductionofCO2emissionsfromtheeligibleprojectscoveredbytheGreenBondwillbe43,495tonsandtotalannualelectricitygeneratedwillbe98,428MWh.
(TheoreticalvaluebasedonoutputstandardasofDecember20,2019)
Annual Review
As a result of an annual review by Japan Credit Rating Agency, Ltd. (JCR), compliance with the Green
Bond Principles and the 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 PDF

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93Top > CSR > EnvironmentalReport > GreenBonds> FuyoGeneralLeaseCo.,Ltd.No.20unsecuredcorporatebonds(limitedtocorporatebondswithaspecialagreementonthesamepriority)(GreenBond)

FuyoGeneralLeaseCo.,Ltd.No.20
unsecuredcorporatebonds(limited
tocorporatebondswithaspecial
agreementonthesamepriority)(GreenBond)
Outline of the Green Bond
Name

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

Application period

July 12, 2019

Payment dateJuly 22, 2019

Issue duration

Issuance amount

Coupon rate

Use of proceeds

Ratings

CSR

Fuyo Lease
Group's CSR
Solving Social
Issues throughBusiness
Environmental
Report5 years

Social Report

5 billion yen

Governance andManagemnet

0.150%

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”).

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

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Third-party assessment of green bondeligibility
94

Independent
assurance

Ministry of the Environment Financial Support Programme forGreen Bond Issuance
The Fuyo Lease Group's Green Bond was selected as a model case for the ﬁscal 2019 Green Bond
Issuance by the Ministry of 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 the Green Bond with the Green Bond Guidelines,
2017.
Conformity results for the Guideline of a model case for ﬁscal 2019 Green Bond Issuance. (Ministryof 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.

List of investors who have announced investment (Japanesealphabetic 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 tocontinue 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

95

Amount ofcapital allocated(End of July
2020)

102 million yen

Positive environmental impacts
Because it is diﬃcult to individually calculate the reduction of carbon dioxide emissions and otherpositive environmental impacts for the wide range of properties subject to the Green Bond, the program
execution amount, the number 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 are disclosed.

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

Newly createdrenewable energy(powergenerated):0MW-dc

2. Energy-eﬃcient equipment (equipment covered

Promotion of low

by the Eco-Lease Promotion Project Subsidy
Program or equipment with 10% or more improved

carbon anddecarbonization inenergy eﬃciency*1)

companies andorganizations
participating inRE100 and the

Projects with 30% or more improved energy
eﬃciency―

Projects with 10% to 30% improved energy
eﬃciency

2 million yen /1 organization

100% Renewable
Electricity
Declaration RE
Action3. Devices that are compliant with the Act on
Promoting Green Procurement

Information equipment, oﬃce automationequipment, etc.

89 million yen/ 11organizations

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

11 million yen/1organization*1

This excludes energy-eﬃcient equipment that uses coal. In cases where non-coal fossil fuels suchas oil and natural gas are used, it is possible to either reduce greenhouse gases or improve energy
eﬃciency by at least 30% for all initiatives in buildings and other facilities 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 per person when traveling 1 km).

96

Participation in RE100 and the 100% Renewable Electricity Declaration RE Action
End of July 2019
Number ofdomestic
participatingcompanies
andorganizations

20 companies

RE100

100%
Renewable
Electricity
Declaration
RE Action

End of July 2020

Power
consumption(Total)Number ofdomestic
participatingcompanies
andorganizations

Power
consumption(Total)Approx. 17

35 companies

Approx. 26

TWh0 organizations(Established in

0 GW(Established in

Oct. 2019)

Oct. 2019)

TWh71
organizations

Approx. 914
GWhAnnual Review
In an annual review by the Japan Credit Rating Agency, Ltd. (JCR), compliance with the Green Bond
Principles and the Ministry of the Environmentʼs Green Bond Guidelines has been conﬁrmed, and a JCR
Green Bond Evaluation of “Green 1” has been obtained.
Green Bond Review Results

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97Top > CSR > SocialReportSocialReport
Relationship with Customers

CSR

Improving
Customer
Satisfaction

Fuyo Lease
Group's CSR
Solving Social
Issues throughBusiness

Relationship with Shareholders
Concept ofIR

Communication
with Our
Shareholders
and Investors

Shareholder
Returns andStatus ofSharesRelationship with Regional Community
Approach toSocialContributions

SocialContribution
Activities
through ourCore
Business

Community &Environmental
Contributions- Donation
Activities

Environmental
ReportSocial Report

Relationship with
Customers
Improving
Customer
Satisfaction
Relationship with
Shareholders
Concept of IR
Communication
with Our
Shareholders
and Investors
Shareholder
Returns andStatus ofSharesRelationship with
Regional
Community98Relationship with Employee
Respect for
Human
RightsApproach toSocialContributions

Human
Resource
Development

PromotingDiversity

andRecruitment
Building a
BetterWorkplace

Employee
HealthManagement

Employee
Data

SocialContribution
Activities
through ourCore BusinessCommunity &Environmental
Contributions- Donation
Activities
Relationship with
Employee
Respect for
Human
RightsHuman
Resource
Development
andRecruitment
PromotingDiversity
Building a
BetterWorkplace
Employee
HealthManagement
Employee
Data

Governance andManagemnet
Each Group
Company's
Environmental
and Social
initiatives
External
Evaluation
Editorial Policy
Independent
assurance99

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100Top > CSR > SocialReport > ImprovingCustomerSatisfaction

ImprovingCustomerSatisfaction
To improve customer satisfaction

CSR

The Fuyo Lease Group strives to provide services that can ﬂexibly and promptly respond to the diverse
needs of customers by setting its Management Philosophy as "maintain customer's ﬁrst philosophy,

Fuyo Lease
Group's CSR

providing best services."

Providing the FLOW data service, which
contributes to improving customers'
administrative eﬃciency
Fuyo Lease provides FLOW, a proprietary data service forSolving Social
Issues throughBusiness
Environmental
ReportSocial Reportmanaging lease contracts online as one of the services
that provide added value to customers.

Relationship with
Customers

FLOW has the advantage of improving the administrativeeﬃciency of online viewing and downloading of contract
information and accounting reference materials, 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 forstrengthening internal controls, which contributes to improving the reliability of ﬁnancial reporting.
We also respond promptly to the new lease standard of the International Financial ReportingStandard (IFRS), IFRS16, which is applicable from January 2019.

Improving
Customer
Satisfaction
Relationship with
Shareholders
Concept of IR
Communication
with Our
Shareholders
and Investors
Shareholder
Returns andStatus ofSharesFLOW Fuyo General Lease web service
FLOW Cube+ cloud-based general asset management service

Relationship with
Regional
Community
101Customer-Oriented Business Policy
Fuyo Lease is a Type II ﬁnancial instruments business operator who invites its clients to participate as
investors in Japanese 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 are committed to providing our clients with services in a sincere
and fair manner.

Responses to ﬁnancial ADR system

Approach toSocialContributions
SocialContribution
Activities
through ourCore BusinessCommunity &Environmental
Contributions- Donation
Activities

The Financial ADR System (Alternative Dispute Resolution System in the area of ﬁnance) wasestablished in April 2010 to resolve 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 theperformance of procedures, if there is a designated dispute settlement institution, and to take grievanceand dispute resolution measures if there is no designated dispute settlement institution.
With regard to the money lending business, we concluded a basic contract on the performance ofprocedures with the designated dispute settlement institution, and took grievance and dispute resolution
measures for the Type 2 ﬁnancial instruments business, which does not have a designated disputesettlement institution.
Please click here for details.

Relationship with
Employee
Respect for
Human
RightsHuman
Resource
Development
andRecruitment
PromotingDiversity
Building a
BetterWorkplace
Employee
HealthManagement
Employee
Data

Governance andManagemnet
Each Group
Company's
Environmental
and Social
initiatives
External
Evaluation
Editorial Policy
Independent
assurance
102

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103Top > CSR > SocialReport > RelationshipwithShareholders > ConceptofIR

ConceptofIR
Basic Approach

CSR

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

Fuyo Lease
Group's CSR
Solving Social
Issues throughBusiness

Disclosure Policy

Environmental
ReportFuyo Lease has set out its Disclosure Policy as the basic policy on the disclosure of information tofacilitate the accurate understanding and evaluation of the Company by stakeholders. The Disclosure

Social Report

Policy is published on the corporate website.

Relationship with
Customers

Disclosure Policy

Improving
Customer
Satisfaction
Relationship with
Shareholders
Concept of IR
Communication
with Our
Shareholders
and Investors
Shareholder
Returns andStatus ofSharesRelationship with
Regional
Community104

Approach toSocialContributions
SocialContribution
Activities
through ourCore BusinessCommunity &Environmental
Contributions- Donation
Activities
Relationship with
Employee
Respect for
Human
RightsHuman
Resource
Development
andRecruitment
PromotingDiversity
Building a
BetterWorkplace
Employee
HealthManagement
Employee
Data

Governance andManagemnet
Each Group
Company's
Environmental
and Social
initiatives
External
Evaluation
Editorial Policy
Independent
assurance
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106Top > CSR > SocialReport > RelationshipwithShareholders> CommunicationwithOurShareholdersandInvestors

Communication with Our
Shareholders and Investors

General Meeting of Shareholders

CSR

At Fuyo Lease, considering the convenience of our shareholders, we hold a general meeting ofshareholders early in order to avoid the day on which meetings are concentrated, as well as dispatch thenotice of convocation early and post it on our websites.Additionally, in order to enhance the convenienceof our shareholders in exercising their voting rights, we have made it possible for them to exercise therights 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 mannerusing images, charts, and tables.

Fuyo Lease
Group's CSR
Solving Social
Issues throughBusiness
Environmental
ReportBooklets containing the Report on Annual
Business Results and the Report on Interim
Business Results for shareholders
At Fuyo Lease, business activities are summarized in booklets containing the Report on Annual BusinessResults and the Report on Interim Business Results in an easy-to-understand manner. These booklets
are sent to our shareholders every half year.

Social Report

Relationship with
Customers
Improving
Customer
Satisfaction
Relationship with
Shareholders

Website IR Information

Concept of IR

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

107

Communication
with Our
Shareholders
and Investors
Shareholder
Returns andStatus ofShares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 2019, we conducted meetings
with a total of 51 companies.

Relationship with
Regional
Community
Approach toSocialContributions
SocialContribution
Activities
through ourCore BusinessCommunity &Environmental
Contributions- Donation
Activities
Relationship with
Employee
Respect for
Human
RightsHuman
Resource
Development
andRecruitment
PromotingDiversity
Building a
BetterWorkplace
Employee
HealthManagement
Employee
Data

Governance andManagemnet
Each Group
Company's
Environmental
and Social
initiatives
External
Evaluation
Editorial Policy
108

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109Top > CSR > SocialReport > RelationshipwithShareholders> ShareholderReturnsandStatusofShares

ShareholderReturnsandStatusof
SharesBasic Policy on Shareholder Returns

CSR

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

Fuyo Lease
Group's CSR
Solving Social
Issues throughBusiness
Environmental
ReportShareholder Beneﬁt Plan
To implement the aforementioned goals for the introduction of the shareholder beneﬁt plan, Fuyo Lease

Social Reportoﬀers 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 tocontributing to development of the society". In order to contribute to development of the society
together with shareholders, we annually donate an amount equivalent to 10% of shareholder beneﬁts toorganizations involved in social contribution activities.
*

Relationship with
Customers
Improving
Customer
Satisfaction
Relationship with
Shareholders

For details, please refer to “Donation activities”.

Concept of IR
Shareholder beneﬁt plan

Stock Information (As of March 31, 2020)
Number of shareholders: 15,402
Number of shares outstanding: 30,288 thousand shares

Communication
with Our
Shareholders
and Investors
Shareholder
Returns andStatus ofSharesRelationship with
Regional
Community110Approach toSocialContributions
SocialContribution
Activities
through ourCore BusinessCommunity &Environmental
Contributions- Donation
Activities
Relationship with
Employee

Breakdown of Shareholders

Number of Shares
held(in thousands)

Number of
Shareholders

Financial Institutions

66

11,926

Other domestic ﬁrms

167

10,878Foreign Shareholders

Individuals and others(including treasury share)

247

4,971

14,922

2,513(treasury share included)

Respect for
Human
RightsHuman
Resource
Development
andRecruitment
PromotingDiversity
Building a
BetterWorkplace
Employee
HealthManagement
Employee
Data

Governance andManagemnet
Each Group
Company's
Environmental
and Social
initiatives
External
Evaluation
Editorial Policy
Independent
assurance111Disclaimer

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112Top > CSR > SocialReport > ApproachtoSocialContributions

ApproachtoSocialContributions
Basic approach to social contributions

CSR

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 arefocused on creating shared value and solving social issues through our business operations, andcontributing 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 achieve synergies 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 the New Domains,and “environmental activities” that help accelerate activities in the Energy and Environment areas. Bothare strategic areas of the Group's Medium-term Management Plan.

Fuyo Lease
Group's CSR
Solving Social
Issues throughBusiness
Environmental
ReportSocial Report

Relationship with
Customers

Social Contribution Policy (excerpt)

Improving
Customer
Satisfaction

Article 3 (Target areas for social contributions)
Engage in the following subject areas:

1.

Environment

2.

Contributions to local communities

3.

Academic activities and research4.

Support for areas aﬀected by disasters

Relationship with
Shareholders
Concept of IR
Communication
with Our
Shareholders
and Investors

Article 4 (Implementation criteria)
Decide implementation according to the following criteria:

1.

Obtaining the understanding of society
Approaches that are highly public and receive a broad public understanding

2.

Using our characteristics
Approaches that use our know-how, products, and services

Shareholder
Returns andStatus ofSharesRelationship with
Regional
Community113

In addition, the Group's mission is to "seriously respond to customers' needs and provide solutions thatexceed their expectations." Because we believe that it is important for employees to gain awarenessabout regional issues and needs, we have introduced a volunteer leave system to promote social
contribution activities by employees. In ﬁscal 2019, one employee used the system.

Approach toSocialContributions
SocialContribution
Activities
through ourCore BusinessCommunity &Environmental
Contributions- Donation
Activities
Relationship with
Employee
Respect for
Human
RightsHuman
Resource
Development
andRecruitment
PromotingDiversity
Building a
BetterWorkplace
Employee
HealthManagement
Employee
Data

Governance andManagemnet
Each Group
Company's
Environmental
and Social
initiatives
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Evaluation
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Independent
assurance
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Top > CSR > SocialReport > SocialContributionActivitiesthroughourCoreBusinessSocialContributionActivities
throughourCoreBusiness
At Fuyo Lease, we support the younger generation through development training as part of ourcontribution to local communities. Targeting local students from elementary school through graduate

CSR

school students, we are continuously implementing activities to deepen understanding of our businessand create new learning opportunities by making the best use of the features of the Fuyo Lease Group's

Fuyo Lease
Group's CSR

wide range of businesses.

Examples of activities

Solving Social
Issues throughBusiness

Eighth AQUA ART Design Competition

Environmental
ReportSocial Report

Aqua de Smile social contribution activities,
which use an interior aquarium

Relationship with
Customers

Fuyo Lease has been holding the AQUA ART Design
Competition continuously as part of Aqua de Smile social
contribution activities implemented with its group company,
Aqua Art Co., Ltd. Participants in the AQUA ART Designcompetition, who are students majoring in art and design at
Tokyo Metropolitan Kogei High School and Tokyo Designer
Gakuin College located near the Fuyo Lease head oﬃce,
compete in creating interior aquarium space designs anddecor. Excellent pieces of work are exhibited at commercial

A snapshot of the students fromthe Production Group of Tokyo
Metropolitan Kogei High Schoolwith their work that was exhibitedin the lobby of Tokyo Dome Hotel(summer 2019)facilities where they are enjoyed by many people.

Relationship with
Shareholders
Concept of IR
Communication
with Our
Shareholders
and Investors

In ﬁscal 2018, welcoming the Tokyo Communication Arts
College as a new participant, the event provided a great
opportunity for students to have fun designing aquariums,
while at the same time letting visitors know about interioraquarium.

Improving
Customer
Satisfaction

Creating a prototype layout

In ﬁscal 2019, which is the eighth time, we hosted an exhibition jointly with Tokyo Dome Hotel. A

Shareholder
Returns andStatus ofSharesselection of the six aquariums were displayed in the lobby and elsewhere in the hotel during the special
event that ran from July 25 through August 5.

Relationship with
Regional
Community
116

The phenomena of buoyancy and water ﬂow, which do not exist in a normal space, were skillfully usedin creation of the works and many were painstakingly created with eﬀorts to incorporate measures forpreventing problems such as ﬁsh getting stuck and not being able to get out. The aquarium designed
under the theme of summer, which looked creative and exciting, attracted many visitors, includingchildren and their parents. The best piece of work was selected with a vote by the general public, andan award ceremony was held after the summer vacation.
*

Cancelled in ﬁscal 2020 because of the spread of the COVID-19 infection.

The Aqua de Smile initiative was launched by donating(renting out free of charge) an interior aquarium, AQUA ART,

Relationship with
Employee

to recipients such as nursery schools and maternal and childﬁsh to children living in cities thus making the children smile

SocialContribution
Activities
through ourCore BusinessCommunity &Environmental
Contributions- Donation
Activities

Oﬀering an on-demand lesson service as part ofenvironmental education activities for children
receiving an aquarium as a donation

life support facilities with the expectation of showing tropical

Approach toSocialContributions

On-demand lesson for school
children provided by our staﬀ

and providing a healing eﬀect.
In order to better support children who receive an aquarium as a donation, as part of environmental
education activities, our staﬀ members organize on-demand lessons for them every summer.
AQUA ART is always there for the children, and they are very interested in the habits and characteristicsof tropical ﬁsh. Each lesson is received with smiles and good spirits as the children learn about
ecosystems in a quiz format and then take part in fun events. In ﬁscal 2019, students from Tokyo
Metropolitan Kogei High School participated in a visiting lecture as a hands-on activity in their Humans
Society course, which is a part of the Tokyo metropolitan high school curriculum, and we had a greattime in the class together.

Hosting internships for conveying the signiﬁcance of work andproviding work experience to students who will be leading thenext generation
In order to convey the signiﬁcance of work to undergraduate

Respect for
Human
RightsHuman
Resource
Development
andRecruitment
PromotingDiversity
Building a
BetterWorkplace
Employee
HealthManagement
EmployeeDataand graduate students who will be leading the next
generation, Fuyo Lease provides internships through which
the students can deepen their understanding of the leasing

Governance andManagemnet

business and experience actual work in the industry.
The tenth internship program, held in ﬁscal 2019, wasGroup work session for interns

carried out over a period of ﬁfteen days in total between
December and February, with the participation of 379 students. The program consisted of a lecture on
the basics of leasing, as well as group 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

Each Group
Company's
Environmental
and Social
initiatives

challenges and diﬀerences between students and professionals.
Students participating in the program made comments such as: "the program gave me an opportunity
to not only understand the leasing business but also to think about the meaning of work" and "thegroup work gave me an opportunity to listen to opinions that I would have never come up with, and it
was also useful to hear advice from HR." A similar internship program is scheduled for ﬁscal 2021.

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Top > CSR > SocialReport > Community&EnvironmentalContributions-DonationActivities

Community&Environmental
Contributions-DonationActivities
Examples of activities

CSR

Introduction of Welfare and Nursing-care Training Program foryoung employees as part of a CSR training program
Fuyo Lease introduced the Welfare and Nursing-care Training

Solving Social
Issues throughBusiness

Program for young employees in ﬁscal 2013 in cooperation
with NICHIIGAKKAN CO., LTD., a leading nursing-carebusiness company.

Environmental
ReportDuring the training program held in ﬁscal 2019, after
carrying out lectures on topics such as "Actual situations of
the aging society and the Long-term Care Insurance System","Nursing-care responding to those who require support andnursing-care", and "Understanding dementia", we conducted

Simulated experience of elderly
person's motor function withvarious protectors

functions with the use of equipment replicating thecapabilities of their eyes, ears, hands, and knees.

Improving
Customer
Satisfaction

Additionally, we provided created opportunities to experience
wheelchair assistance and other similar situations.

employees will better understand the situation surrounding

Social Report

Relationship with
Customersa simulated experience based on elderly people's motor

Based on this training program, we hope that young

Fuyo Lease
Group's CSR

Wheelchair assistance experience

the aging society, and will also be able to help elderly people in everyday life situations, such as in trains
and crowds.

Beautifying the City Activity at Shinjuku Station's west exit
Fuyo Lease Tokyo Business DivisionⅢ (formerly Shinjuku Branch) is engaged in local cleanup activities
at Shinjuku Station's west exit.
On May 30, 2019, ﬁve employees participated in Garbage Zero Day.

119

Relationship with
Shareholders
Concept of IR
Communication
with Our
Shareholders
and Investors
Shareholder
Returns andStatus ofSharesRelationship with
Regional
Community

Additionally, four employees participated in in the Litter
Prevention and Road Smoking Prohibition Campaign at
Shinjuku Station's west exit on February 14, 2020.

Approach toSocialContributions
On May 30th, the sunlight was
like summer and the participants
sweated.

SocialContribution
Activities
through ourCore BusinessCommunity &Environmental
Contributions- Donation
Activities

February 14th was warmer andmore pleasant than usual.

Participation in FIT Charity Run 2019

Respect for
Human
RightsThe Fuyo Lease Group has participated in the FIT Charity
Run (Financial Industry in Tokyo For Charity Run) every year

Human
Resource
Development
andRecruitment

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.

Relationship with
Employee

The participants had an enjoyable
run on a calm day.

The 15th FIT Charity Run 2019 was held on January 19, 2020 at the neighboring roads of Meiji

PromotingDiversity

the 10-km run.

Building a
BetterWorkplace

Inviting the local community to Fukuoka PayPay Dome

Employee
HealthManagement

Memorial Picture Gallery and Meiji Jingu Gaien. A total of 27 employees from the Group participated in

At Fuyo Lease, we have purchased Philanthropy Seats of the

EmployeeDatabaseball stadium Fukuoka PayPay Dome and invited people
from the community welfare facilities and young people insports since ﬁscal 2012.

Governance andManagemnet

From the purchased Philanthropy Seats, people can see thefull schedule of oﬃcial games of the Fukuoka Softbank
Hawks. Annually, twenty seats are designated as

Fukuoka PayPay Dome

Philanthropy Seats at the ﬁrst base inﬁeld side.
People who attended this activity have been very pleased.
We will continue to make use of these seats to maintainfriendships with local communities in the future.

Each Group
Company's
Environmental
and Social
initiatives
External
Evaluation

Philanthropy Seats

120

Editorial Policy

Donation activities

Independent
assurance

Actual donations (unit: ten thousand yen)
Fuyo Lease makes annual donations to organizations working in disaster-stricken areas, humanitarianassistance, the environment, cultural arts, and academic research. In ﬁscal 2019, we mainly provided
support for the areas aﬀected by Typhoon No. 19 and the next generation of children, and donated toacademic research.

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

Disaster aﬀectedarea support andHumanitarian
Assistance

512

1,096

563

1,127

1,040

Environment

50

50

50

50

50

Cultural Arts andAcademicResearch

103

123

125

625

1,275

Others

31

18

42

4

2

Total

696

1,287

780

1,806

2,367

Activities of Fuyo Heartful Fund 100
Within the Fuyo Lease Group, we established the Fuyo
Heartful Fund 100 in November 2010 for employees tocontribute 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 togroups that develop activities including in the areas ofenvironmental conservation, local community contribution,
academic and research support and support for areasaﬀected by disasters.

In ﬁscal 2019, through this fund, we donated 150,000 yen each to four disaster-aﬀected area andhumanitarian projects in Japan and overseas, for a total of 600,000 yen.

121

Donation of used stamps
The Fuyo Lease Group collects postage stamps that have been used at oﬃces and employees' homes,
and donates them to groups promoting support cooperation in health and medical areas overseas. In
ﬁscal 2019, we collected and donated about 1.7 kg of used stamps.

Actual donation of used stamps and prepaid cards
FY 2015

FY 2016

Used
stamps1,843

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FY 2017

2,614
g

FY 2018

2,016
g

FY 2019

1,401
g

1,684
g

g

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Top > CSR > SocialReport > RelationshipwithEmployee > RespectforHumanRights

RespectforHumanRights
Basic Approach

CSR

The Fuyo Lease Group encourages respect for human rights in accordance with international norms suchas the Universal Declaration of Human Rights, and we have listed Respect for Human Rights in the Fuyo
General Lease Group Code of Corporate Conduct. We have stipulated that we will act with respect forthe dignity and basic human rights of all people and build a corporate culture with respect for humanrights at its core. In achieving this goal, we implement initiatives aimed at encouraging respect forhuman rights, with reference to the United Nations Guiding Principles on Business and Human Rights
and other sources.
Moreover, based on a recognition that particular consideration is required for the human rights ofchildren, the Fuyo Lease Group has endorsed the international norms in The Children's Rights andBusiness Principles of UNICEF and works to protect and advance the rights of children who may be
involved in its business.

Fuyo Lease
Group's CSR
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ReportSocial Report

We actively encourage our employees and business partners to have a better understanding of theGroup's human rights policy.
Fuyo Lease's Human Resources Division is responsible for risk assessment and resolving the Group's
human rights issues under the supervision of the director in charge of the Human Resources Division.
Furthermore, we regularly check the progress of human rights initiatives and report to the Risk
Management Oﬃcer and the Executive Committee when important risks occur.

Expectations toward respecting human rights
for stakeholders
The Fuyo Lease Group respects the human rights of stakeholders in its business (board members andemployees, business partners, suppliers, partner companies in each business, local communities, etc.)
and conducts initiatives. Expectations for key stakeholders are as follows:

Relationship with
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Board Members andEmployees

Partners

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

Our management philosophy is to “always give ﬁrst priority to thecustomer and provide the best service.” We will not only preventand mitigate negative impacts on human rights related to theprovision of services, but also strive to respect the human rights ofall our business partners.

Suppliers

We expect suppliers providing services with our Group to
understand the basic concept of human rights, and respect humanrights in the same way as Group employees.

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.

Approach toSocialContributions
SocialContribution
Activities
through ourCore BusinessCommunity &Environmental
Contributions- Donation
Activities
Relationship with
Employee
Respect for
Human
RightsHuman
Resource
Development
andRecruitment
PromotingDiversity
Building a
BetterWorkplace
Employee
HealthManagement
Employee
Data

Governance andManagemnet
Each Group
Company's
Environmental
and Social
initiatives
External
Evaluation
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Independent
assurance
124

Board Members and Employees
In the Group, the Audit Oﬃce and Human Resources Division conduct regular employee interviews inorder to prevent violations of human rights.
We have also established mechanisms to ensure more reliably that impacts on human rights arecontrolled, including conducting checks each time when there are changes to the structure of new
projects. If any human rights issue arises in relation to the Fuyo Lease Group's businesses, a team leadby the Human Resources Division will promptly resolve it.
In addition, we have set up internal and external whistleblower hotlines that allow anonymous reportingand guarantee that all reports will be treated as conﬁdential in order to promptly detect any
infringements of compliance or the Code of Corporate Conduct in the area of human rights, including
bullying and harassment.
In ﬁscal 2019, three reports were received through the hotlines. In each report, investigations arepromptly 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 inproviding 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 thebusiness content, and strictly managing our partnersʼ information
Information security initiatives are here

Human Rights Awareness Training
The Fuyo Lease Group continually provides human rights awareness training in its grade-speciﬁctraining, which includes that for new employees and newly appointed assistant managers/section chiefs
with the aim of creating workplaces with a fundamental respect for human rights. 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 of respecting 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 ofmanagement position to enable them to respond appropriately when there are reports of incidents andconsultations involving human rights, including bullying and harassment.
In ﬁscal 2019, the Group joined the Human Rights Education Subcommittee of the Global Compact
Network Japan to gain a better understanding of Japan's human rights issues by exchanging views andideas with experts and academics.

125

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 forappropriate communication between employers and employeeBuilding Positive Employer-Labor
Relationss. In Fuyo Lease, the percentage of employees who belong to a labor union is 63.2%.

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 to ensure consideration for human rights. Not only do we strive tolimit long working hours and guarantee a living wage in our 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. In addition, as an initiative to reduce long working hours at domestic group companies, weare actively implementing measures to prevent overwork and have introduced “Refresh Day (noovertime day)”, “+ Friday (leave-work-early system)”, and the “interval system” for employees to use
freely.
In Fuyo Lease in ﬁscal 2019, there were no infringements of labor-related laws and regulations.

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126Top > CSR > SocialReport > RelationshipwithEmployee> HumanResourceDevelopmentandRecruitment

HumanResourceDevelopmentandRecruitment
Basic approach

CSR

Within the Fuyo Lease Group, our basic hiring policy is to keep the selection process fair, impartial,
unbiased, and non-discriminatory. We also provide opportunities for all employees to independently
achieve personal growth, while respecting each other's personalities.
Furthermore, we aim to create a rewarding workplace where every employee can work with motivation.
With the extensive branch network of Fuyo Lease Group in Japan and overseas, Fuyo Lease is promoting
local employment and personnel recruitment in an eﬀort to respect the culture in each local area,
strengthen networks and create jobs.

Fuyo Lease
Group's CSR
Solving Social
Issues throughBusiness
Environmental
ReportExpanding businesses and providing fair andimpartial evaluations
As the Fuyo Lease Group moves into uncharted businesses and continues to expand its frontiers, asdeclared in the core principles of the current Medium-term Management Plan, Frontier Expansion 2021,
the roles our employees play and the tasks and challenges they face are becoming more diverse andcomplex. For this reason, we have made changes to our human resources system in July 2019 toexpand business domains and perform fair and impartial evaluations. The core concept of the newhuman resources system is to convert a job function or ability-based system where a generalist serves
as a role model into a varied, multi-track, job duty-based system, and to provide a framework whichenables employees to achieve personal development and to expand the scope of their duties in the longterm. 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 serve asrole models, but also to strive for even higher positions such as departmental manager. We encourage
employees to independently develop their career plans and we make eﬀorts to oﬀer them rewards thatcommensurate with the roles they play and the duties they perform in their respective areas.

Implement of employee satisfaction survey
We have been conducting an employee satisfaction survey since ﬁscal 2018 to make work more
rewarding and to help employees work in a positive way each day.

Social Report

Relationship with
Customers
Improving
Customer
Satisfaction
Relationship with
Shareholders
Concept of IR
Communication
with Our
Shareholders
and Investors
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Regional
Community127

In ﬁscal 2019, a total of 1,714 employees from ten group companies in Japan participated in the survey
with a 97.7% response rate.
Employee satisfaction surveys are conducted annually while expanding the number of target employees
as we aim to create a rewarding workplace where every employee can work with motivation.
Questions are divided into satisfaction with the workplace, job satisfaction, and work-life balance,
among others, and are evaluated on a 5-point scale. After conducting the survey, we aggregate andanalyze the responses by department and by gender, and use the results to expand our systems for
improving on comfortable working environments and for personnel measures.

Results of employee satisfaction survey
Job satisfaction*

FY 2018

87.3%*

FY 2019

Approach toSocialContributions
SocialContribution
Activities
through ourCore BusinessCommunity &Environmental
Contributions- Donation
Activities
Relationship with
Employee
Respect for
Human
Rights85.8%

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

Various trainings and self-development
programs
Training programs are provided after joining the Company to learn
the basics of leasing and acquire practical knowledge
An extensive knowledge of areas including legal aﬀairs, tax
and accounting, ﬁnance, products, and industry trends is

Human
Resource
Development
andRecruitment
PromotingDiversity
Building a
BetterWorkplace
Employee
HealthManagement
EmployeeDatarequired for the leasing business. In order to ensure that new
employees joining Fuyo Lease can steadily increase the levelof their knowledge and improve, new employees have

Governance andManagemnet

opportunities to learn the basics of leasing and acquire
practical knowledge during their ﬁrst two years in the
Company through various training programs taught bylecturers from inside and outside the Company.
Since ﬁscal 2017, the Company has been conducting newhire training, career training, and management training
jointly with Fuyo Lease Group. As the basis for achieving theinitiative of pursuing group synergies, which is set out in theMedium-term Management Plan, the Company holds training
programs to help employees understand the businesses ofYoung employees working on
tasks given by the training
program(In ﬁscal 2020, masks will be
worn, and social distancing
maintained in training)each company and share their cultures.
A total of 300 group company employees took part in 11 training programs in ﬁscal 2019.

128

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Company's
Environmental
and Social
initiatives
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Evaluation
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assurance

To boost employees' motivation, the Group has a self-development program oﬀering an extensive lineupof courses including correspondence courses (about 150 courses), e-learning, and a course encouraging
employees to acquire qualiﬁcations.

Click here for a more detailed explanation of the educational system

Motivation support program that responds to employees'
motivation
Under the concept of fully supporting employees who are
motivated and willing to take on the challenge of fulﬁlling thecorporate slogan of "Go where no one has gone before,"
Fuyo Lease has been carrying out the Fuyo Motivation
Support Program since ﬁscal 2013.
With a view to further globalizing the leasing business,
Motivation Support Program A encourages employees toenroll in an English conversation school and improve theirEnglish skills. Furthermore, Motivation Support Program B
encourages employees to enroll in a business school in orderto enhance their abilities to think, exercise leadership, andmanage, as well as improve their abilities to formulate
management strategies and marketing skills.

The Companyʼs employee(standing in front of a whiteboard) shows an expression ofrelief after ﬁnishing her
presentation in a voluntary
workshop at Globis Management
School(In ﬁscal 2020, courses will betaken online)

In ﬁscal 2016, Motivation Support Program C was newly established. In order to expand the job scopeand enhance the job performance of administrative track employees, the Company encourages them toattend open seminars on, for example, improving operations, time management, and leadershipcommunication. The Company has also started providing support for attending a half-day seminar forworking mothers.
In ﬁscal 2019, the average number of hours of education and training spent on each employee was 34.0
hours. Responding to the motivation of employees, the Company will continue to expand the system.

Self-assessment system
Fuyo Lease has a self-assessment system in place for promoting the autonomous and continuous
development of employees' skills. Once every year, individual employees submit a Self-assessment andCareer Development form for declaring to the Company a list of abilities they have managed to improve,
whether they have managed to expand the scope of their jobs, what kind of self-development eﬀorts
they are making and what areas of experience they would like to build upon for their own development.
The Company uses information on the declaration form to understand each employee's plan for careerdevelopment, and reﬂects it in its personnel measures.
Furthermore, in the Skill Development Plan established in ﬁscal 2014, the Company provides feedback toeach employee on their current progress while attending various seminars in an eﬀort to encourage
employees to actively make use of various self-development programs.

129

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 careerdevelopment. Furthermore, in ﬁscal 2018, the Job Posting System was introduced and launched to give
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 ofvarious 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 to engage in international ﬁnancial transactions.
At the Company, we have set Overseas as one of its strategic areas in the Medium-term Management
Plan, and are working to expand the real estate leasing and renewable energy businesses incollaboration with our customers and strengthen our overseas networks. In addition, by establishing
trainee systems for operations that are indispensable to each business, we expect that businesses will
be strengthened by human resources who have experience using those systems.
The Job Posting System was introduced as a framework for providing opportunities for each employee todevelop by autonomously 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, specializedbusiness departments, and credit departments.

Course transfer system
In order to respond to the diversifying needs of employees in relation to employment and skill
development, Fuyo Lease has the Course Transfer System in place, which allows them to switch fromadministrative to generalist career tracks, or vice versa. Between April 2011 and July 2020, 13
employees were transferred to their new career track taking advantage of this system.

130

Full-time employee challenge system
In April 2014, in order to further develop skills and expand the job scope of highly capable andmotivated 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 2020, a total of nine contract employees had been
hired as full-time employees, and are working in the ﬁeld of administration or sales administration.

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131Top > CSR > SocialReport > RelationshipwithEmployee > PromotingDiversity

PromotingDiversity
Basic approach

CSR

Under the corporate slogan of "Go where no one has gone before," Fuyo Lease strives to develop andpromote people with diverse values and ideas in order to oﬀer solutions surpassing customers'
expectations.
In today's society where values and needs are becoming more diverse, the Fuyo Lease Group believes
that diversity is a key growth driver. Attracting and retaining highly talented people, regardless of theirsex, age, or other factors, is crucial for being able to continually create new value. As we work toenhance the value of our corporate group, we focus on developing human resources with an emphasison making our company a better workplace, so that all of our employees can realize their full potential
as they hone their professional skills.

Fuyo Lease
Group's CSR
Solving Social
Issues throughBusiness
Environmental
Report

The Diversity Promotion Oﬃce opened its doors in October 2017 to strengthen our organizational
capability for creating a workplace where all employees can realize their full potential, regardless ofSocial Reportgender.

Relationship with
Customers

Empowering female employees in theworkplace

Improving
Customer
Satisfaction
Relationship with
Shareholders
Concept of IR
Communication
with Our
Shareholders
and Investors
Shareholder
Returns andStatus ofSharesRelationship with
Regional
Community132

Empowering female employees in the workplace
Towards creating a workplace environment wherefemale employees can exercise their abilities andparticipate more than ever:～Preparing and promoting an action plan for promoting
the participation of female employees in the workplace～
We see empowering women in the workplace as a management priority and are taking steps towards
creating a work environment where women can fulﬁll their potential and play a more active role thanever.
Our initiatives for empowering women focus on four speciﬁc areas: recruitment, human resources
development, organizational culture reforms, and work-life balance.

Goals

December 5, 2014 through March 31, 2020

1.

Aim for a female ratio of 30% in recruiting new graduates

2.

Achieve a 1.5-fold increase (40 females) in the number ofmanagerial female employees by 2020 from 2014, the year
when the target was set

1.

Increase recruitment of women2.

Clarify training policy

3.

Provide support for developing the careers of managerial
candidates

List of activities

SocialContribution
Activities
through ourCore BusinessCommunity &Environmental
Contributions- Donation
Activities
Relationship with
Employee
Respect for
Human
RightsOutline of General Employer Action Plan

Target period

Approach toSocialContributions

4.

Host career lectures

5.

Reduce overtime working hours

6.

Reform corporate culture

7.

Relax the criteria for using the shorter working hour system

8.

Promote male employees to take childcare leave, etc.

Human
Resource
Development
andRecruitment
PromotingDiversity
Building a
BetterWorkplace
Employee
HealthManagement
Employee
Data

Governance andManagemnet
We achieved both of the goals set out in the General Employer Action Plan, ﬁscal 2014 to ﬁscal 2019,
which were to increase the employment ratio of new female graduates to 30% and make thepercentage of women in managerial positions one and-a-half times more than it was in 2014 (i.e., 40
women). We did so by actively strengthening the recruitment of women, establishing clear training
guidelines, and providing female managerial candidates with career development support. From ﬁscal
2020, we set the following goals with a planning period of two years until the end of the current
Medium-term Management Plan in ﬁscal 2021, and will work more proactively than ever before.

Each Group
Company's
Environmental
and Social
initiatives
External
Evaluation
Editorial Policy
Independent
assurance133Increasing the recruitment of female new graduates: outline offemale employees' work-styles
In the course of ﬁscal 2017 recruitment activities, the Company revised its information brochure for new
graduates who are interested in joining the Company, and in the course of ﬁscal 2018 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 brochure and 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 withfemale students, the Company set up booths at events for female students.

Conducting a three-party interview to support the career plan ofeach female generalist track employee
The Company regularly conducts a three-party interview for the purpose of supporting women's careerplans 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 andmanagers
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, and lectures have been held with the aim of creating a work
environment where diverse employees can realize their potential. In January 2019, an Ikuboss*
Seminar was organized for management-level staﬀ.
*

Ikuboss: A leader who supports their staﬀʼs professional and personal development, and achieves
good business performance, as well as enjoys their work and personal lives.

Theme and content of lecture
CareerLecture

Date

Theme

February 2015

What it means for women tocontinue 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

1st Lecture

134

Working group activities toward creating a better workplace(Everyone Active Working Group)
Since January 2015, we are continuously running aworking group for employees with the aim of creating aworkplace that is more welcoming for employees to get
actively involved in, and allows them to envision theircareers 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 2017 is one of them, whichallows employees to leave work at 3:00 p.m. on any Friday of their choice once every month. The
program was improved in April 2019 to allow employees to leave work at 1:00 p.m. rather than 3:00
p.m. as originally introduced. Selective staggerd hours program introduced in May 2017 is anotherprogram that was born out of the working group's discussions. This program oﬀers four diﬀerent work
schedules with earlier and later starting and ﬁnishing times, in addition to the normal working hours, sothat employees can choose the schedule that is most suitable to their needs, for activities such as
childcare or family nursing care duties, as well as their lifestyles.
Through discussion and consideration by employee-participation-type working group activities, we are
striving to penetrate and establish systems to create better working environments.

PeriodTheme

1stBalancing workwith childcare

Content

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 takechildcare leave

2nd

The

Revision of public relations tools for recruiting

recruitment of
women

women in new graduate recruitment

Promotingmale
employees totake childcare
leave
Awarenessraisingetc.

Consideration of measures to promote male
employees taking childcare leave
Initiatives for internal penetration andestablishment of female empowerment in theworkplace
Consideration of measures for the Action
Plan: Stage 6 “Implementation of Initiatives
that Contribute to Reviewing Work Styles”
based on the Next Generation Act

135

Period

3rd

Theme

Content

Flexible

Consideration of “+ Friday” concept andoperation of

namingworking hours
Balancing workwith nursing
care

Implementation of Selective staggerd hours
program
Organizing and considering issues toward therealization of independent and active working
styles

4th

Promotion of
independent

Discussion of work style systems currently
being tested, examined, and implemented by

and active

the General Aﬀairs Department

working styles
Considerationof work-lifebalancesupport andorganizational
culture reform

Consideration of speciﬁc measures to improveeﬃciency and productivity
Welfare systemmeasures

5th

Activation ofcommunication

Consideration of measures to activate
communication across departments

Promotion ofConsideration of meeting eﬃciency thatindependentand active

contributes to work style reformworking styles

6th

etc.

Activation ofcommunication

Discussion of issues to work autonomously
and improve the rate of taking paid leave

Building a

Activation of communication areas at new

rewarding
workplacehead oﬃce, consideration of events, etc.

Handout on creating a workplacethat considers everyone's needs(a partial excerpt) created by the

Leaﬂet giving information on thechildcare support system(excerpt)

second working groupChildcare Support Guidebook
created by the ﬁrst working
group

136

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 graduates since ﬁscal 2015. In recruiting people with disabilities, the Company decides,with considerations to the characteristics of their disabilities and the jobs they want, the sections andjobs where they are to be assigned after joining the Company, as well as their working hours. The
company also makes eﬀorts to improve and consider the working environment to ensure they can fulﬁll
their potential.
As of the end of ﬁscal 2019, the percentage of people with disabilities employed by Fuyo Lease was 2.1
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, all employees who are reaching retirement age to continue working until theage of 65 if they wish.
As of the end of ﬁscal 2019, there were 31 employees still employed after retirement. Using theirknowledge and experience 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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137Top > CSR > SocialReport > RelationshipwithEmployee > Building a Better Workplace

Building a Better Workplace

Basic approach

CSR

Working with the goal of allowing each and every employee to fulﬁll their maximum potential bypromoting the creation of a rewarding workplace, Fuyo Lease is striving to build a better working
environment. In this environment, all employees will be able to ﬁnd their own optimal work-life balanceand enhance the quality of both life and work through activities such as maintaining and improving theirhealth, gaining new knowledge as well as experience, and attaining personal growth.
In addition to providing support for childcare and nursing care, we have been implementing work-stylereforms across our corporate group since ﬁscal 2014. We are making ambitious eﬀorts in accordancewith Next-Generation Training Support Action Plan: Stage 7.

Inﬁscal2019,inaccordancewiththenewguidelinesoftheMinistryofHealth,LabourandWelfare,weworkedtoaccuratelygraspworkinghoursandpromotedmeasurestopreventoverwork.
Furthermore,weconsidertheintroductionofvariousmechanismsandprogramstocreateabetterworkingenvironment.

Fuyo Lease
Group's CSR
Solving Social
Issues throughBusiness
Environmental
ReportSocial Report

Relationship with
Customers

Next-Generation Training Support Action
Plan: Stage 7 (April 2017 - March 2022)
For each employee to independently and actively review workstyles tailored to their individual lifestyles,
and with the aim of creating a work environment and corporate culture that enables employees tobalance work and family while maintaining job satisfaction and a challenging spirit, we have formulated
an action plan as follows. At present, in the latter half of the Action Plan: Stage 7, eﬀorts are being
made to achieve our numerical targets. A variety of work-styles are becoming more well-known throughtheir active use in various programs, leading to the realization of a self-sustained work-life balance.

Improving
Customer
Satisfaction
Relationship with
Shareholders
Concept of IR
Communication
with Our
Shareholders
and Investors
Shareholder
Returns andStatus ofSharesDescription
Promoting independent and active working styles
Encouraging male employees to take a more active role in parenting

Relationship with
Regional
Community

Reducing total working hours
Oﬀering diverse career path options

138

Numerical targets
FY 2017

Percentageof
employees
who takeannual paid
leave

68.0%

Percentage
of maleemployees
who takechildcareleave etc.

90.0%

FY 2018

FY 2020
targetFY 2019

68.4%

66.3%

90.5%

85.7%

70% or more

80% or more

Approach toSocialContributions
SocialContribution
Activities
through ourCore BusinessCommunity &Environmental
Contributions- Donation
Activities
Relationship with
Employee
Respect for
Human
RightsMain Programs and Beneﬁts
As programs to support childcare and nursing care for our employees, we have established the following
to promote understanding in the workplace and the active utilization of these programs.

Human
Resource
Development
andRecruitment

Program contents

PromotingDiversity

A program that allows female employees to take a leaveof six weeks before childbirth and eight weeks afterchildbirth

Building a
BetterWorkplace

Spousal childbirth leave

A program that allows male employees to take threedays of paid leave when their spouses give birth

Employee
HealthManagement

Parental leave

A program that allows employees to take ﬁve days ofleave (however, a maximum of ten days of leave can betaken for childcare leave that starts within eight weeksof the child's birth) when taking childcare leave

Name

Maternity leave

Nursing leave

Nursing care leave

Shortened working hours program

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

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

A program to allow for shortened working hours for
employees until the end of their childʼs third year ofelementary school

Employee
Data

Governance andManagemnet
Each Group
Company's
Environmental
and Social
initiatives
External
Evaluation
Editorial Policy
Independent
assurance

139

Name

Selective staggerd hours program

Program contents

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

Initiatives to Support Childcare
Since the Act on Advancement of Measures to Support Raising NextGeneration Children went into eﬀect in 2005, we have been working tocreate 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,

Platinum Kurumin markand ﬁscal 2015, in ﬁscal 2017, we received our sixth “general business owner conforming to standards”
certiﬁcation from the Tokyo Labour Bureau, and obtained the six-star 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 accreditation that is given
to companies that have achieved a higher level of commitment among other Kurumin-certiﬁed
companies.
In ﬁscal 2018, we held an Ikuboss Seminar and strove to change mindsets through our participation in
the Ikuboss Corporate Alliance and by having management-level staﬀ take part in the Ikuboss
Declaration. As a result, 90% of male employees took childcare leave, and 19 of the 21 employees
whose spouses gave birth had taken leave, achieving the 80% or more target set in Next-Generation
Training Support Action Plan: Stage 7. In ﬁscal 2019, we revised a number of regulations to make iteasier for male employees to take childcare leave, and in ﬁscal 2020, we will make it mandatory formale employees to take childcare leave. We are making these and other eﬀorts to actively promote theparticipation of male employees in childcare while also aiming to further increase the rate of paid
paternity leave.

140

Employee's comment: Mitsuhiro Uekusa, Business Creation
Division"I used childcare-related
programs, and now Iʼm putting
a lot of eﬀort into raising mychild."
I took two special leaves of absence vacations, ﬁrst
taking spousal childbirth leave when my wife gavebirth, and then taking childcare leave when she
returned home after giving birth in her hometown.
I am doing my best to care for myﬁrstchild with my wife.

The company encourages male employees to takechildcare leave, and thanks to the understanding of mysuperiors and colleagues, I was able to devote myself to childcare with peace of mind whileon leave. There is also a program to receive childcare goods as a gift to celebrate the birthof a new child, and this makes me feel like the company supports employees raisingchildren. In the future, I would like to continue to take advantage of programs such as
staggered 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 aboutbalancing work and nursing care. We also provide various types of information on nursing care andsupport employees who are being confronted with nursing care.

Promoting Work-Style Reforms
Refresh Day
In ﬁscal 2020, we continued to hold Refresh Day (no overtime day) once a week. Employees are free tochoose any day of the week as their Refresh Day.

+Friday
To encourage a review of each employee's work-style, from February 2017, we introduced the +Friday(Plus Friday) program, in which the employee can select any Friday once every two months to go homeearly at 3:00 p.m. From January 2018, we expanded the implementation of this program to once amonth and started at 1:00 p.m. A total of 91.5 percent of employees take advantage of this program,which is intended to help them work better and acquire knowledge and experience outside theworkplace. We aim to create an environment that encourages employees to come up with a variety ofideas for their work.

141

Employee's comment: Yoko Hoshino, Information Equipment
Business Division"It's a good opportunity toseparate work and private life."
I use the time freed up by +Friday as an opportunity
to go and see a movie, a favorite pastime of mine, andto 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
I am refreshed by using the time after
3:00 p.m.

time even once a month, I feel I can have some
downtime and it also increases my motivation to workfrom the next week. In the future, I would like to take advantage of this program, not only
for my hobbies but also for lessons on cultural activities.

Selective Staggered Work System
We have established a new program that encourages a shift to an autonomous and active work-style byallowing 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 selectfrom among four work patterns that advance or postpone when we start and end work outside of thenormal working hours. This, along with the Discretionary Labor Program, was introduced andimplemented from May 2017. In ﬁscal 2019, about 51.0% of employees took advantage of the
Staggered Hours Program to work in a way that suits their lifestyles.

Employee's comment: Keijiro Miyazono, Real Estate Planning
Division"Using the program, I havemore time to spend with mychildren."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 for
I can now spend time with my children
on weekdays as well.

the nursery 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 take charge of themorning childcare due to staggered 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 mydaughter growing up gradually day by day.

142

Employee's comment: Yuki Nukui, International Division(currently U.S. subsidiary trainee)"I can now use time in a way that suits my lifestyle."
With the Staggered Hours Program, I chose a work pattern to start working at 8:30 a.m.,which is 30 minutes earlier than the regular starting 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 to study for
qualiﬁcations, and to practice golf, which is my hobby.
As a result, 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 thisprogram beneﬁt, but also others beneﬁt from a
spreading company-wide awareness of ﬁnishing work
exactly at a ﬁxed time and going home.

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

Increased paid leave take-up rate
We have been encouraging employees to take their annual paid leave (annual holidays), such as byestablishing a system in ﬁscal 2011 that encourages taking consecutive days of leave in summer andwinter. From ﬁscal 2016, we introduced the Five-day Consecutive Annual Leave system, aiming at
improving the rate at which career-track employees take leave, because they have particularly low rates
of taking annual leave. As a result, the annual leave take-up rate was 68.4% in ﬁscal 2018. In ﬁscal
2019, it was 66.3%, which is the same level as the previous year.
In the future, we aim to attain an annual leave taking rate of 70% or more, which is the target of the
Action Plan: Stage 7 (from the period of April 2017 to March 2022) pursuant to Act on Advancement of
Measures to Support Raising Next-Generation Children. In the ﬁnal year of the Medium-termManagement Plan (ﬁscal 2021), we will work toward achieving a rate of 80% or more.

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143Top > CSR > SocialReport > RelationshipwithEmployee > EmployeeHealthManagement

EmployeeHealthManagement
Basic approach

CSR

Fuyo Lease believes that creating a working environment where employees can work healthily, safely,and energetically will revitalize the company and lead to improved productivity.
Based on this idea, the Health Committee, set up under the Industrial Safety and Health Act, meetsonce a month to maintain and improve the health and safety standards of the workplace. The HealthCommittee consists of health and safety managers from each department, division managers, andindustrial physicians. The Committee is responsible for identifying issues concerning health and safety at
the Fuyo Lease Group, planning as well as implementing measures, and verifying the results of thosemeasures. The Committee is also responsible for reviewing items that need improvement and formaking regular reports as well as recommendations to the Board of Directors.

Fuyo Lease
Group's CSR
Solving Social
Issues throughBusiness
Environmental
ReportSocial Report

Health examination
Health examinations for employees are held once a year. The general periodic health examination takeup rate for ﬁscal 2019 was 98.4%.

Relationship with
Customers
Improving
Customer
Satisfaction

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 Health Committee. Since establishing internal regulations, we have been carryingout activities with ﬁve aﬃliated companies since May 2016.
Employees receive stress checks on the Web and, after about a month, they can check the results ofevaluations given by industrial 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 industrial physician, and take necessary work-related measures based on the results of theinterview.

Relationship with
Shareholders
Concept of IR
Communication
with Our
Shareholders
and Investors
Shareholder
Returns andStatus ofSharesIn addition to stress checks stipulated in the Industrial Safety and Health Act, employees and theirfamilies can consult specialist counselors. The results are not disclosed to the company, because we
consider the privacy protection needs of individuals.

144

Relationship with
Regional
Community

Approach toSocialContributions
SocialContribution
Activities
through ourCore BusinessCommunity &Environmental
Contributions- Donation
Activities
Relationship with
Employee
Respect for
Human
RightsHuman
Resource
Development
andRecruitment
PromotingDiversity
Building a
BetterWorkplace
Employee
HealthManagement
Employee
Data

Governance andManagemnet
Each Group
Company's
Environmental
and Social
initiatives
External
Evaluation
Editorial Policy
Independent
assurance
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146

Top > CSR > SocialReport > RelationshipwithEmployee > EmployeeData

EmployeeData
Employee Data

CSR

Fuyo Lease Group consolidated data

Fuyo Lease
Group's CSR

Number of employees (persons)

Number of
employees

End ofFY
2014

End ofFY
2015

End ofFY
2016

End ofFY
2017

End ofFY
2018

End of
FY
2019

1,542

1,559

1,703

1,715

1,960

2,416

Solving Social
Issues throughBusiness
Environmental
ReportFuyo Lease non-consolidated data
Number of employees (persons)EndofFY2016EndofFY2017EndofFY2018

EndofFY2019

Male

Female

Total

Male

Female

Total

Male

Female

Total

Male

Female

Total

Generalist
track

467

40

507

458

53

511

459

63

522

456

85

541

Clericaltrack

0

152

152

0

149

149

1

155

156

1

138

139

Temporaryemployees

26

4

30

24

5

29

20

6

26

28

7

35

Total

493

196

689

482

207

689

480

224

704

485

230

715

147

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

Social Report

FY
2014

FY
2015

FY
2016

FY
2017

FY
2018

FY
2019

FY
2020

Total

19

26

28

31

35

29

44

Male

13

19

20

18

20

18

27

Female

6

7

8

13

15

11

17

Relationship with
Customers
Improving
Customer
Satisfaction
Relationship with
Shareholders
Concept of IR

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

*

FY
2012

FY
2013

FY
2014

FY
2015

FY
2016

FY
2017

Generalist track

17

16

16

26

22

29

Clerical track

1

0

3

0

6

2

Total

18

16

19

26

28

31

Retention rate of
employees 3 years
after joining Fuyo
Lease

94.4

87.5

94.7

100

85.7

100
☑

A checkmark ☑ indicates that ﬁscal 2019 ﬁgures have been assured by KPMG AZSA Sustainability
Co., Ltd.

Shareholder
Returns andStatus ofSharesRelationship with
Regional
Community
Approach toSocialContributions
SocialContribution
Activities
through ourCore BusinessCommunity &Environmental
Contributions- Donation
Activities

Independent assurance

Number of employees leaving (persons)/reasons for leave/turnover rate (%)
FY
2014

FY
2015

FY
2016

FY
2017

FY
2018

FY
2019

Generalist track

4

5

6

11

13

10

Clerical track

4

1

1

3

2

4

Total

8

6

7

14

15

14

Voluntary
resignation

5

3

6

9

14

11

148

Communication
with Our
Shareholders
and Investors

*

FY
2014

FY
2015

FY
2016

FY
2017

FY
2018

FY
2019

Mandatory
retirement

0

2

1

2

1

2

Other

3

1

0

3

0

1

Turnover rate

1.1

0.8

1.0

1.9

1.9

1.8 ☑

The turnover rate includes voluntary resignations, mandatory retirement and other reasons forleaving (e.g. relocation). It does not include employees who have been re-employed on a

Human
Resource
Development
andRecruitment

Building a
BetterWorkplace

Average age (age)/average length of service (years)/average salary (thousandyen)/Rate of paid leave taken (%)
End ofFY
2014

End ofFY
2015

End ofFY
2016

End ofFY
2017

End ofFY
2018

End of
FY
2019

Age

41.9

41.7

41.5

41.4

41.2

41.3

Length ofservice

16.3

16.6

16.4

14.7

14.6

14.8

Annualsalary

8,293

8,366

8,410

8,454

8,669

8,833

Rate of paid
leave taken

58.5

61.9

68.9

68.0

68.4

66.3 ☑

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 notincluded.

Number of female managers and assistant female managers (persons) / rate (%)
End
of FY
2014

End
of FY
2015

End
of FY
2016

End
of FY
2017

End
of FY
2018

End ofFY
2019*

Femalemanagers

25

27

29

32

36

79 ☑

Percentage offemalemanagers

8.1%

9.0%

9.1%

9.9%

11.5%

19.6%
☑

149

Respect for
Human
RightsPromotingDiversity

contractual basis leaving at the end of their contracts.

*

Relationship with
Employee

Employee
HealthManagement
Employee
Data

Governance andManagemnet
Each Group
Company's
Environmental
and Social
initiatives
External
Evaluation
Editorial Policy
Independent
assurance*In July 2019, our human resources system was revised to classify senior leaders (a position
equivalent to the position of section chief, of which there were 40 as of the end of ﬁscal 2019) as
managers. As a result, the number of female managers and the ratio of female managers increased
year on year.

Total employee training hours (hours) / Average training hours per employee (hours)
FY
2014

FY
2015

FY
2016

FY
2017

FY
2018

FY
2019

Total employee
training hours(hours)

9,900

13,921

16,10918,093

19,11819,937

Average training
hours peremployee (hours)

18.9

25.6

29.2

31.2

31.9

32.6

Number of trainees sent overseas (persons)

Number of employees
sent overseas

FY
2014

FY
2015

FY
2016

FY
2017

FY
2018

FY
2019

3

5

5

8

8

9

Number of employees who used the career track shift system (persons)

Number of
users

Apr.
2015

Apr.
2016

Apr.
2017

Apr.
2018

Apr.
2019

Apr.
2020

2

1

1

1

0

2

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

Number of
users

Apr.
2015

Apr.
2016

Apr.
2017

Apr.
2018

Apr.
2019

Apr.
2020

4

1

0

3

1

0

150

Other employee data

*1

FY
2014

FY
2015

FY
2016

FY
2017

FY
2018

FY
2019

Number of female
employees who takechildcare leave(persons)

8

9

10

4

3

6

Percentage of female
employees who takechildcare leave (%)

100

100

100

100

100

100

Number of male
employees who takechildcare leave(persons)

0

11

11

7

19

12

Percentage of male
employees who takechildcare leave (%)

0.0

47.8

52.4

43.8

90.5

85.7

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

99.7

97.5

99.0

97.5

98.4

98.4

Employment rate ofthe disabled (%)

2.0

1.8

2.2

2.3

2.3

2.1 ☑

Number of industrial
accidents (number ofcases)*2

2

2

1

1

2

4

Regularly provided medical check-ups are categorized into general medical examination for
employees of less than 35 years of age, medical examination for adult diseases for employees
between 35 years of age and less than 40 years of age, and comprehensive medical examinationfor employees of 40 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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151Top > CSR > GovernanceandManagemnet

GovernanceandManagemnet
Corporate GovernanceRisk Management andCompliance System

Code of Corporate
Conduct

Information Security

CSR

Fuyo Lease
Group's CSR
Solving Social
Issues throughBusiness
Environmental
ReportSocial Report
Governance andManagemnet

Corporate
Governance
Code ofCorporate
Conduct
Risk
Management
andCompliance
SystemInformation
Security

Each Group
Company's
Environmental
and Social
initiatives

152

External
Evaluation
Editorial Policy
Independent
assurance

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153

Top > CSR > GovernanceandManagemnet > CorporateGovernanceCorporateGovernance
Basic Idea and Structure

CSR

The Fuyo Lease Group places strong emphasis on creating and maintaining relationships with all
stakeholders, including shareholders, customers, employees, and local communities. We believe that thefundamental objective of corporate governance is to perform business activities with sincerity andfairness in line with our management philosophy.
To achieve sustainable growth and increase corporate value over the medium to long term, we haveestablished our own Corporate Governance Guidelines which align with the purpose and spirit of theJapan's Corporate Governance Code. These Guidelines serve as the foundation for our corporate
governance framework, operating policies and other management policies, to which we adhere to
everything we do.

Fuyo Lease
Group's CSR
Solving Social
Issues throughBusiness
Environmental
ReportCorporate Governance Structure

Social Report

Fuyo Lease has established a Board of Corporate Auditors, which includes two outside corporate

Governance andManagemnet

auditors who are independent from our company. In addition, in order to enhance the supervisory
function of the Board of Directors, we have also appointed three independent outside directors, whoprovide oversight and advice on the execution of business operations from an external perspective.

Corporate Governance Structure

Corporate
Governance
Code ofCorporate
Conduct
Risk
Management
andCompliance
SystemInformation
Security

Each Group
Company's
Environmental
and Social
initiatives

154Furthermore, to improve management eﬃciency and expedite decision-making by separating themanagement 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（539KB）

Fuyo Lease has implemented various initiatives aimed at strengthening corporate governance.

2008

2011

2015

Initiative

Objective

Introduced performance-based

To strengthen links between

compensation and stockcompensation-type stock options

directors' remuneration and theirperformance and shareholder value

Reduced the term of oﬃce of a

To increase opportunities to build

director from two years to one year

shareholder conﬁdence

Increased the number of
independent outside directors from
one to two

To strengthen the management
oversight structure

Established the Corporate

To comply with the Japanese

Governance Guidelines

Corporate Governance CodeSet up the Nomination and

To ensure independence andCompensation Advisory Committee

objectivity in the decision-making
process for matters such as
nomination and compensation

2016

Started analyzing and evaluating
the overall eﬀectiveness of theBoard of Directors

To verify the eﬀectiveness of theroles and functions of the Board of
Directors and to make ongoing
improvements

2018

Increased the number of
independent outside directors fromtwo to three

To strengthen the management
oversight structure

Introduced a stockcompensation plan (Board
Beneﬁt Trust, BBT)The base index for calculationof performance-based
compensation was changed to
key performance indicators for
the Medium-termManagement Plan (operating

Editorial Policy
Independent
assurance

Strengthening Corporate GovernanceYear

External
Evaluation

To strengthen links among thedirectors' remuneration,
shareholder value, andachievement status of theMedium-term Management
Plan
To comply with the revised
Japanʼs Corporate GovernanceCodeassets, ordinary proﬁt, and
ROA on a consolidated basis)
Revised Corporate Governance
Guidelines

155

Year
2019

Initiative

Objective

Disclosed an English version of
the Corporate Governance
ReportTo enhance external disclosure
related to corporate
governanceBegan reporting annualinternal audit results andannual plans and policies tothe Board of Directors

To expand reporting lines forinternal audits

Establishment of the Corporate Governance Guidelines
In conformity with the purpose and spirit of the Japanese Corporate Governance Code, Fuyo Lease has
established our own Corporate Governance Guidelines, which provide a foundation for corporate
governance framework, operating policies, etc. The Corporate Governance Guidelines set out theframework, operating policies, roles, and responsibilities of diﬀerent supervisory and executivefunctions, in addition to our basic approach to corporate governance. To achieve sustainable growth andincrease our corporate value over the medium to long term, we adhere to these guidelines in everything
we do across the Fuyo Lease Group.
For further details, please refer to: Corporate Governance Guidelines (PDF)
Corporate Governance Guidelines（194KB）

Board of Directors
The Board of Directors consists of eight directors, including ﬁve inside directors and three 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, aswell 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 2019, the Board of Directors met 11 times.

Nomination and Compensation Advisory Committee
Fuyo Lease has set up the Nomination and Compensation Advisory Committee as an advisory body of
the Board of Directors in order to eliminate arbitrariness in decision-making processes and to maintain ahighly transparent management structure. The committee consists of four members, including three
independent outside directors and an inside 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 the Board of Directors,
and reports its ﬁndings to the Board of Directors.
In ﬁscal 2019, the Nomination and Compensation Advisory Committee met three times.

156

Board of Corporate Auditors
Our Board of Corporate Auditors 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 Board of Corporate Auditors, 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 Internal Audit Division)
has been appointed to assist them.
In ﬁscal 2019, the Board of Corporate Auditors met 10 times.

Attendance at Board and Committee meetings (attendance in FY 2019 by board
members, as of June 23, 2020)

Name

Attendance at Board
meetings

PositionTakashi Sato

Director and Chairman(Representative Director)

Board of Directors: 11/11

Yasunori Tsujita

President and Chief
Executive Oﬃcer(Representative Director),
Chairman of the Nomination
and Compensation Advisory
Committee

Board of Directors: 11/11
Nomination andCompensation Advisory
Committee: 3/3

Shozo Kazama

Director and Deputy
President (Representative
Director)

Board of Directors: 11/11

Soichi Hosoi

Senior Managing Director

Board of Directors: 11/11

Keiji Takada

Senior Managing Director-(Elected in June 23, 2020)

Seiichi Isshiki

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

Board of Directors: 11/11
Nomination andCompensation Advisory
Committee: 3/3

Hideo Ichikawa

Director (Independent
Outside Director),
Member of the Nomination

Board of Directors: 11/11
Nomination andCompensation Advisory

and Compensation Advisory
Committee

Committee: 3/3

157

Name

Masayuki Yamamura

Attendance at Board
meetings

Position

Director (Independent

Board of Directors: 11/11

Outside Director),
Member of the Nomination
and Compensation Advisory

Nomination andCompensation Advisory
Committee: 3/3

Committee

Shigeru Suda

Full-Time Corporate Auditor

Board of Directors: 11/11
Board of Corporate
Auditors: 10/10

Yoshito Tsuruta

Full-time Audit & Supervisory
Board Member-(Elected in June 23, 2020)

Teruhiko Numano

Outside Audit & Supervisory
Board Member(Independent Director)

Board of Directors: 8/11
Board of Corporate
Auditors: 9/10

Yoshihiro Jinnai

Outside Audit & Supervisory
Board Member(Independent Director)

Board of Directors: 11/11
Board of Corporate
Auditors: 10/10

Executive Committee
The Executive Committee is composed of Executive Oﬃcers with positions of managing executive oﬃcer
or higher, the heads 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 a regular basis.
As a general rule, the Executive Committee meets at least once a month to make decisions on operating
activities and implementation 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 2019, the Executive Committee met 19 times.

Compliance Committee
Fuyo Lease has set up a Compliance Committee chaired by the Chief Compliance Oﬃcer and vicechaired by the 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 fulltime committee members, and outside lawyers serve as outside members. The Compliance Committee
meets quarterly to discuss issues related to compliance systems and implementing annual complianceplans. 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.

158

Internal Audit
The internal audit function is administered by the Internal Audit Division (staﬀed by seven employees).
The Internal Audit Division conducts operational audits of all departments, oﬃces, branch oﬃces, andmajor 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 andthe Executive Committee.

Analysis and Evaluation of the Eﬀectiveness of the Board of Directors
At Fuyo Lease, we analyze and evaluate the overall eﬀectiveness of the Board of Directors every year.
The Board of Directors makes further eﬀorts to enhance its functions in the light of the results of theanalysis and evaluation with the aim of continually improving its eﬀectiveness.
The results of the analysis and evaluation for ﬁscal 2019 are as follows.

Evaluation method
We conducted a questionnaire survey among all Directors and corporate auditors, as well as interviews
with them on an as needed basis. Following the discussions and recommendations by the Nomination
and Compensation Advisory Committee, which consists mainly of independent outside directors andassisted by the corporate lawyer, the Board of Directors carried out the analysis and evaluation of theresults.

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 we must still steadily implement
measures to improve the functions of the Board of Directors, make those activities part of our daily
operations, and continually review the Board's functions.

Progress on issue identiﬁed last ﬁscal year
“Further enhancing the provision of information to outside directors” was one of the issues identiﬁed lastﬁscal year. Regarding this, while expanding information on subsidiaries in management reports, thepresidents of important subsidiaries directly reported on business conditions, etc., and also key
discussion points at the Executive Committee, as well as the meeting minutes, were provided.
The other issue was “expanding viewpoints and perspectives, and narrowing down discussion points indeliberations by the Board of Directors.” Regarding this, in addition to establishing reports on the
progress and risks of plans in each strategic area in the Medium-term Management Plan, it was
conﬁrmed that the eﬀectiveness of the proposal was improved by sharing the points of discussion
concerning the agenda items at the outside directors brieﬁng session with all internal directors.

159

Newly identiﬁed issues
We recognized the need to reﬂect the viewpoints of CSV (Creating Shared Value) and ESG(Environment, Social, and Governance) in the deliberations of the Board of Directors and continue tofurther invigorate discussions at the Board of Directors and enhance the provision of information tooutside 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 the qualiﬁcations of corporate auditors and procedures for nominating corporate auditor
candidates. Under these guidelines, a director or corporate auditor candidate must possess an
outstanding personality, a wide breadth of knowledge, abilities, experience, and high ethical standards.
The guidelines also specify that candidates be nominated regardless of factors such as sex, age, andnationality, with the aim of achieving greater diversity. In order to ensure fairness and transparency inthe nomination process, the selection of candidates for directors and corporate auditors is ﬁnalized 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 Listing Management, etc. established by the Tokyo Stock Exchange.

3. Roles expected of outside directors and outside corporate auditors and reasons forappointment
Name

Seiichi Isshiki

Reason for appointment

Seiichi Isshiki has served as representative director andpresident of JX Nippon Oil & Energy Corporation, directorof JX Holdings, Inc., and president of ENEOS Celltech Co.,
Ltd. We believe that he will help enhance the eﬀectivenessof the decision-making and oversight functions of theBoard of Directors from a position that is independent fromour company's management by drawing upon his extensive
experience and wealth of knowledge.

Hideo Ichikawa

Currently serving as representative director, president andcorporate oﬃcer, the representative director, chairman of
the board, and the director, chairman of the board ofShowa Denko K.K., Hideo Ichikawa has years of experiencein corporate management. We believe that he will help
enhance the eﬀectiveness of the decision-making andoversight functions of the Board of Directors from a
position that is independent from our company's
management by drawing upon his extensive experienceand wealth of knowledge.

160

Name

Masayuki Yamamura

Reason for appointment

Masayuki Yamamura has served as president of Nippon
Telegraph and Telephone East Corporation and chairman of
the incorporated association, and we believe that he will
help enhance the eﬀectiveness of the decision-making andoversight functions of the Board of Directors from a
position that is independent from our company's
management by drawing upon his extensive experienceand wealth of knowledge.

Teruhiko Numano

We believe that Teruhiko Numano will conduct audits
appropriately from an objective standpoint based on theexpertise he has gained as a jurist and a lawyer andprovide us with highly professional legal advice. He is also
well versed in business litigation cases as a lawyer and has
considerable ﬁnancial and accounting knowledge.

Yoshihiro Jinnai

Having served as senior managing executive director at
Sompo Japan Insurance Inc. and president of Audatex
Japan, Yoshihiro Jinnai should be able to conduct audits
appropriately from an objective standpoint by drawing
upon his extensive experience and wealth of knowledge.

Board Remuneration
Fuyo Lease believes that enhancing the link between shareholder value and remuneration of Board of
Directors will boost their morale and motivate them to improve our ﬁnancial performance and shareprice, leading us towards our goals of ensuring stable performance and growth, while enhancing ourcorporate value. That is why we have introduced variable pay programs such as performance-based
compensation and stock compensation 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 aswell as an individual directorʼs contribution to our ﬁnancial performance among other factors. The
indicators for performance-based compensation are operating assets, ordinary proﬁt, and ROA on aconsolidated basis, which are key performance indicators for the Medium-term Management Plan.

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 theattainment percentage of the previously set targets and the year-over-year change percentage for:1) operating assets, 2) ordinary proﬁt, and 3) ROA. The performance-based payment coeﬃcient
ranges between 0.5 and 1.5.

The stock compensation plan (Board Beneﬁt Trust, BBT) is designed to motivate Board members to help
boost our company's performance and corporate value over the medium- to long-term by making the161link between their compensation and our equity value clearer. Under this compensation plan, theCompany'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 Companyʼs shares, an amount equivalent
to the market value of the Companyʼs shares for a speciﬁed proportion, if the requirements 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 0.6 based on the averagecompensation 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 thecharacteristics 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 Compensation Advisory Committee in orderto ensure transparency and objectivity in determining the amounts. Compensation for outside directors
and corporate auditors consists only of ﬁxed compensation because short-term incentives and equity
compensation are not really applicable.
The company prescribes malus provisions providing that if a director causes signiﬁcant damage to theCompany 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 toreceive stock compensation.

Remuneration amount (millions of yen)Totalamount(millionsof yen)Directors(excl. Outside
Directors)

Basic
remuneration

Stock-based
remuneration(BoardBeneﬁt Trust,
BBT)

Performancelinked
remuneration(Annualbonuses)Numberofdirectors

327

202

76

49

6

Board ofCorporate
Auditors
members(excl. Outside
Auditors)

44

44

-

-

2

OutsideDirectors

57

57

-

-

6

Directorclassiﬁcation*

The above remuneration amount and number of directors include those who resigned by the end ofﬁscal 2019.

*

The above performance-linked remuneration comprises the amount, which shall be recorded in theﬁscal year.

*

The amount of the Board Beneﬁt Trust (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.

*

At the 39th Annual General Meeting held on June 25, 2008, Fuyo Lease approved the resolution to162

pay accrued retirement beneﬁts associated with the abolishment of the retirement beneﬁts systemfor directors. The estimated amount as of the end of the ﬁscal year is 4 million yen (outside
directors). The payment is made at the time of their retirement.

Internal Control System
Fuyo Lease has instituted an internal control system across our corporate group to ensure compliancewith all relevant laws and the articles of incorporation, capability to respond to various risks in a timely
and appropriate manner, and to ensure 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 aboutaudit ﬁndings to monitor the status and operation of the internal control system. The status of theinternal control system operation is reported to the Board of Directors during a meeting held at the endof each ﬁscal year, and continuous improvements are made in the light of the audit ﬁndings.

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163

Top > CSR > GovernanceandManagemnet > CodeofCorporateConduct

CodeofCorporateConduct
Chapter1BasicPolicyofFuyoGeneral
LeaseGroup

CSR

1.SocialResponsibilitiesandPublicMissions

FuyoLease
Group'sCSR

Alwaysbearinginmindthesigniﬁcanceofoursocialresponsibilitiesandpublicmissions,we
commitourselvestosoundbusinessmanagementbasedontheprincipleofself-responsibility
asaﬁnancialbusinessgroupthatconsistsmainlyoflistedcompanies.
Weendeavortocommunicatecloselywithsociety,andtoalignourcorporateconductwithsocialnorms.
Wehaveconsiderablesocialresponsibilitiesandpublicmissionsasaﬁnancialbusinessgroupthat
consistsmainlyoflistedcompanies.Wemustbeawarethatwearerequiredtofulﬁllbothoursocial
responsibilitiesandpublicmissions,andthepurposeofaprivatecompanyatahighlevel.
Firstofall,weareexpectedtotakesocialresponsibilities,includingeconomic,legal,ethical,andsocialcontributionresponsibilities,asfollows;

Economicresponsibilitiessuchaspursuingreasonableproﬁts,securingemploymentandeﬃcientmanagement;
Legalresponsibilitiestocomplywithlawsandregulationsasamemberofsociety;
Ethicalresponsibilitiestorespecthumanrightsandactinlinewithsocialnorms;andSocialcontributionresponsibilitiesasagoodcorporatecitizenthatsupportsandgrowswithsociety.
Tofulﬁllthesesocialresponsibilitiesandpublicmissions,itisessentialtogaintheunwaveringtrustofourcustomersandsocietythroughtheGroup'ssoundandappropriatebusinessoperations.
Whilegreateﬀortandtimearerequiredtogainthetrustofourcustomers,thattrustcanbelostin
aninstant.Aﬁnancialbusinessgroup'slossoftrustcanleadtoareductionoftrustintheentire
ﬁnancialsystem.
Wedeclarethatwealwaysbearinmindthesigniﬁcanceofoursocialresponsibilitiesandpublic
missions,andcommitourselvestosoundbusinessmanagementbasedontheprincipleofselfresponsibility.Furthermore,throughactivitiessuchaspublicrelationsactivities,weendeavorto164

SolvingSocial
IssuesthroughBusiness
Environmental
ReportSocialReport
GovernanceandManagemnet
Corporate
Governance
CodeofCorporate
Conduct
Risk
Management
andCompliance
SystemInformation
Security
EachGroup
Company's
Environmental
andSocial
initiatives

activelycommunicatewithsocietyatalltimes,andtoensurethatouractivitiesarefairandtransparentinlinewithsocialnorms.

External
Evaluation

2.ImplementationofCustomerFirstPrinciples

EditorialPolicyWeputourcustomersﬁrstandprovideservicesatthehighestqualitytoourcustomers.
Webelievethatgainingthetrustofourcustomersisthebasisforgainingthetrustofshareholders,localcommunities,andallotherstakeholders.
Weneedtoappreciatethatweengageinﬁnancialservicebusinessescenteredonleasebusinessesinwhichweputourcustomersﬁrst;inotherwords,ourongoingdevelopmentisderivedfromourcustomers'prosperity.
"Puttingourcustomersﬁrst"meansthateverysingledirectorandemployeeconsidershowheorshecanserveasthemostreliableconsultantforourcustomersandprovidethebestservicesthatmeettheneedsofourcustomersatalltimes.Theaccumulationofsuchdailyeﬀortscanleadtous
gainingthetrustofourcustomersandappropriateproﬁts.
Wecanexistasacorporationonlyaftergainingaproﬁt.Then,byusingtheproﬁttomakenewinvestmentsandcreatenewservices,wecanfurtherenhancethetrustofourcustomers.
Inotherwords,"puttingourcustomersﬁrst"andgainingthetrustofourcustomersisthebasisofsecureandsoundbusinessmanagement,whichresultsingainingthetrustofotherstakeholders.
Moreover,"puttingourcustomersﬁrst"doesnotmeanthatweacceptallrequestsfromourcustomersorprovideserviceswithnothoughttoproﬁt.Weshouldneverforgetthat"puttingourcustomersﬁrst"doesnotconﬂictwith"earningproﬁts,"butratherthetwoareconnectedtoeachother.

3.CompliancewithLawsandRules
Westrictlycomplywithalllawsandregulation,andcarryoutfairandhonestbusinessactivitiesinlinewithsocialnorms.
Werespectlocalcustomsandcultures,aswellasinternationalstandardsandlocallawsineachregionoftheworld.
WeplaceensuringcomplianceasthefoundationofourManagementPrinciple,basedonwhichwe
strictlycomplywithalllawsandregulations,andperformfairandhonestbusinessactivitiesinlinewithsocialnorms.
Itisnotourpolicytoachievethisprinciplebymerelyavoidingviolationsoflawsandregulations.
Instead,alwaysbearingsocialnormsinmind,weactwithahighlevelofself-disciplinebasedonfullyunderstandingtheintent,purpose,andbackgroundoftheestablishmentoflawsandrules.
Wealsocomplywithinternationalstandardsandforeigncountries'lawsandregulations,andrespectthelocalcustomsandcultures,aswellasJapaneselawsandregulationsandsocialnorms
asaﬁnancialbusinessgroup,thatprovideservicestooverseascustomers.
Aslaws,regulations,andsocialnormschangewiththetimes,westrivetoaccuratelyunderstandtheunderlyingsocialtrends.
Ifweviolatelawsorregulationsoractagainstsocialnorms,wewouldbenotonlyheldlegallyliable
butwouldalsobeexposedtoseverecriticismfromsociety.Inaddition,wecouldlosetrust,our
165

Independent
assurancemostvaluableasset,whichcould,insomecases,shakethecoreelementsofourbusiness
management.

4.RespectforHumanRights
Weactwithrespectforthedignityandfundamentalhumanrightsofallpersons,includingourcustomers,directors,andemployees,andestablishacorporateculturewithaspiritthatfully
respectshumanrights.
Today,respectforhumanrightsisaglobalstandardofconduct.Wearerequiredtobestrongly
awarethatweshallnotengagein,orallowotherstoengagein,discriminationorharassmentfor
anyreason(includingbasedonfactorssuchasgender,nationality,race,ethnicity,religionanddisability).Moreover,wetakeduecaretoprotectprivacyofothersbecausewehavemany
opportunitiestoaccessinformationofvariousindividuals.
Thebasicconceptofrespectingforhumanrightsistorespectotherpeopleashumanbeingsandto"putyourselfinanotherperson'sshoes."Toconductbearingthisconceptinmindisanextremely
importantplatformforprovidinganenergeticandgreatworkenvironmentforouremployees,andtogainthetrustofourcustomers.
Weshouldbevigilantofhumanrightsandneverforgetthatweactwiththehighestrespectforthehumanrightsofallpersons.Basedonthisrecognition,weactivelyworkonimprovingeverysingle
employees'awarenessofhumanrights.

5.BlockingRelationshipswithAnti-socialForcesWeblockanyrelationshipswithanti-socialforcesthatposeathreattotheorderandsafetyofcivilsociety.

Weblockanyrelationshipswithanti-socialforces.

Wedonotprovideanyproductsorservicestoanti-socialforces.Weconductanappropriate
investigationbeforeenteringintotransactionsinordertopreventanytransactionswithantisocialforces.Ifacounterpartytoatransactionisfoundtobeananti-socialforceafterenteringintoatransaction,wewillpromptlycancelsuchtransaction.

Wetakeorganizationalactions.

Ifarelationshipwithananti-socialforceisfound,thetopmanagementwillbepromptlynotiﬁed
andwewilltakeorganization-wideactions.

Wecooperatewithexternalexpertorganizations.

Wecloselycooperatewithexternalexpertorganizationssuchasthepolice,theNationalCenterfortheEliminationofBoryokudan(anti-socialforces),andlawyersonanongoingbasis,andaddressissueswithduecareforthesafetyofourdirectorsandemployees.

Wewillnothesitatetotakelegalmeasuresandrespondwithaﬁrmattitude.

Werespondtoanti-socialforceswithaﬁrmattitudeinbothcriminalandcivilaspectsasnecessaryanddonotconductanybackdoortransactionsinresponsetounreasonabledemandsorattackssuchasintimidation.
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Chapter2BasicAttitudeofFuyoGeneral
LeaseGroup
1.BasicAttitudetowardCustomers
Wealwaysendeavortoprovidesatisfactiontocustomers,gaintheirtrustandestablishlongtermconﬁdentialrelationships.
Westrivetofullyunderstandourcustomersandserveourcustomersfaithfully.
Weprovidesuﬃcientinformationtoourcustomersandthehighestlevelofcomprehensive
ﬁnancialservices.
Westrictlymanagecustomers'assets.
Weendeavortoimproveourselvestopossessexcellentinsights,aswellasexpertiseandskills,
tomakeourselvesusefultocustomers.
Weactbasedontheprincipleof"puttingourcustomersﬁrst"andalwaysaimtoprovidethehighest
levelofcomprehensiveservicesthatsatisfytheneedsofourcustomers.Tothisend,weshouldbeawarethatallofouractivitiesleadtoprovidingsatisfactiontoourcustomersandgainingtheirtrust.Wealsonotethefollowingitemsinperformingactsinordertoestablishalong-term
conﬁdentialrelationshipswithourcustomers.
First,itisimportanttoknowourcustomerswell.Wecollectsuﬃcientinformationonourcustomersbycarefullylisteningandcloselyobservingourcustomers.
Weaccuratelyunderstandtheneedsofourcustomersbyputtingourselvesinacustomer's
shoes.
Weprovideadequateinformationbasedonaccurateknowledgeandprovideservicesthatmeettheneedsofourcustomersthroughmakingthemostofourabilitytoprovide
comprehensiveﬁnancialservices.
Wefulﬁllourpromisestocustomers,andperformfairandhonestbusinessactivities.
Wealwaysbearinmindthatwestoreourcustomers'valuableassetswithduecareandstrictlymanageinformationofourcustomers.
Whileitisimportanttobecomeacquaintedwithcustomers,wedonotoﬀernorreceive
entertainmentorgiftsthatdeviatefromsocialnormsorconductanyacts,suchascashloans,thatmaycreateanexcessivelyfamiliarrelationshipwithourcustomers.
Westrivetoimproveourselvestopossessdeepinsights,aswellasexpertiseandskills,tomakeourselvesusefultocustomers,andactivelytrytocreateanddevelopnewbusinessareas.

2.BasicAttitudetowardShareholders
Togainthetrustofourshareholders,weendeavortoprotectandincreaseourcorporate
assets.
Weenhanceandreinforceourinternalcontrolsystembyperformingproperaccountingandeﬀectiveinternalaudits.
Inordertocommunicateaccuratebusinessinformationtoshareholders,weactivelydisclose
informationandimprovethetransparencyofbusinessmanagement.
Wekeepourshareholders'valuablefundswithduecareasajoint-stockcorporation.
Therefore,torespondtoourshareholders'trustandexpectations,weendeavortopromotetheprotectionandexpansionofourgroup'sassetsandtomaximizeourproﬁtability.
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Inordertogainwidespreadunderstandingandtrustfromourshareholders,wemaintaintheaccuracyandreliabilityofourﬁnancialandtaxaccountingprocedures,andmonitorwhethertheyfunctionproperlyandeﬀectivelyunderastrictinternalcontrolsystem.Moreover,wewillfurther
reinforceourindependentinternalauditfunctionsandimprovetheinternalcontrolsystem.
Tothoseends,weaimtoachievean"openmanagement"stylethatistrustedbythemarkets
throughactivelydisclosingappropriateinformationinatimelymannerthroughopportunitiessuchasthegeneralmeetingsofshareholders,aswellasfocusingonIRactivitiesandmaintainingaclose
two-waycommunicationswithshareholders.

3.BasicAttitudetowardLocalCommunities
Weperformfunctionsasagoodcorporatecitizenwhogrowswithlocalcommunities.
Weactivelyperformsocialcontributionactivities.
Weareawarethatactivitiesrelatedtoenvironmentalissuesaremandatoryrequirementsfortheexistenceandoperationsofacorporationandperformsuchactivitiesvoluntarilyandproactively.
Throughthecorporateactionsandactivitiesofourindividualdirectors'andemployees',wehavea
deepinvolvementwiththelocalcommunitiesuponwhichourexistencerelies.Therefore,we
conductbusinessactivitieswhileharmonizingourGroup'sproﬁtswiththebeneﬁtsofsociety,andperformthesefunctionsasa"goodcorporatecitizen"whocontributestothedevelopmentoflocal
communities.Furthermore,inordertorespondtosocialchangesovertime,weendeavortoclosely
communicatewithsocietyandrespectfullylistentotheopinionsofsocietytoensurethatouractivitiesconformtosocialnormsandmeettheexpectationsofsociety.
Weregardengaginginsocialcontributionactivitiesasoneofoursocialresponsibilitiesandengage
inactivitiesinvariousﬁelds.Inaddition,weactivelydiscloseourcorporateattitudeandactual
activitiesthroughmediasuchasthedisclosurematerialsinordertogaintheunderstandingofsociety.Moreover,weactivelysupportvolunteeringactivitiescarriedoutbyourdirectorsandemployees.
Today,environmentalissuesarenotlimitedtopreventingconventionalindustrialpollutionbut
extendstoissuescommontoallhumankindsuchasthedisposalofwaste,natureconservation,andpreservationoftheglobalenvironment.
Weacknowledgethatwehaveasocialresponsibilitytovoluntarilyandactivelyaddressenvironmentalissues,andpromotethefulﬁlmentofbotheconomicdevelopmentandenvironmental
preservation.

4.BasicAttitudetowardEmployeesWehelpouremployeesleadmoreprosperousandfulﬁllinglives,andsecureacomfortableandsafeworkenvironmentforouremployees.
Wecreateworkplaceswhereworkersrespecteachotherandnodiscriminationorharassment
takesplace.
Whilerespondingtothediversiﬁcationofworkers'values,wearerequiredtoestablishvarious
employmentandworkingformsandvacationsystemsunderwhichworkerscanleadmore168

prosperousandfulﬁllinglives,andensurethateachworkercanexercisehisorherindividualityandachievepersonalgrowth.
Inordertoaddressthesechallenges,wewillcreateanattractive,free,andopen-mindedworkplace
whereworkerscanfeelthattheirdutiesareworthwhile.Wealsostrivetoimproveworkers'senseofethicsthrougheducationandtrainingoncompliance,andcomplywithlaborlawsandregulations,aswellascaringforhealthandsafetyintheworkplace.
Ourbasicphilosophyistorespecthumannatureandprotectfundamentalhumanrights.
Discriminationandharassmentareactsthatviolatehumanrights,whichdemotivateworkers,
disruptorderintheworkplace,andleadtoadeteriorationoftheworkenvironment.Wedonotpermitanyactsofdiscriminationandharassmentinanyformsandforanyreasons.Weworktocreateasoundworkenvironmentwhereworkersrespectthehumanrightsofotherworkersandunderstandeachother.
Itisourbasicpolicytoconductfairandimpartialemploymentscreeningswithoutdiscrimination.In
conductingemploymentscreeningsofemployees,wemakejudgmentsbasedontheindividual'sabilitiesandqualiﬁcationswithoutanydiscrimination.

5.BasicAttitudetowardSuppliersandCompetitors
Inpurchasinggoodsandservicesandorderingsystems,wemakedecisionsthatareobjectivelybasedonfactorssuchasquality,convenience,andprice,andmaintainsoundandtransparentrelationshipswithsupplierswithoutengaginginactsthatcanberegardedascreatingexcessivelyfamiliarrelationships.
WerequireoursupplierstounderstandtheFuyoGeneralLeaseGroupCodeofCorporate
Conduct.
Wemakeeﬀortstoapproachcorporateconductwithcommonsense,andengageinfreecompetitioninafairandtransparentmanner.

SuppliersInpurchasinggoodsandservicesandorderingsystems,weselectsuppliersbyobjectivelyandcomprehensivelyconsideringfactorssuchasquality,convenienceofservice,price,andreliability.
Regardingrelationshipswithsuppliers,wemaintainsoundandtransparentrelationshipswithout
engaginginactsthatcanberegardedascreatinganexcessivelyfamiliarrelationship.Tothisend,
wedonotaskorreceiveanyentertainmentorgiftsincontraventionofourinternalrules.
Moreover,inordertomaintainourcredibility,werequireoursupplierstounderstandtheFuyo
GeneralLeaseGroupCodeofCorporateConduct.

Competitors
Duetotheglobalizationofcorporateactivitiesandtheexpansionofaborderlesseconomy,itisincreasinglyimportanttoconductcorporateactivitiesincompliancewithcompetitionrulesinthemarket.
Asbasicrulesthatareessentialforthesounddevelopmentofafreeeconomicsociety,many
countrieshaveestablishedlawssuchasanti-monopolyactsforthepurposeofmaintainingandpromotingfairandfreecompetition.Itisourresponsibilitytocomplywiththeselaws,includingwiththephilosophybehindsuchlaws.

169

Wepromotecompletecompliancewithlawsandwillnotengageinanyillegalactsorpursueproﬁts
throughunreasonablemeans.Furthermore,wewillnotconductanyunfaircompetitiveactssuchasformationofacartelorabuseofanadvantageousposition.
Inaccordancewiththeprincipleofself-responsibility,wecarryoutfair,transparent,andfreecompetitionbasedonourself-sustainingandindependentspirit,whichisapreconditionofthemarketeconomysystem.

6.BasicAttitudetowardPoliticsandGovernmentWemaintainsoundandappropriaterelationshipswithpoliticsandgovernment.
Manycountrieshaveestablishedlawstoregulatetheparticipationofcorporationsinthepoliticalactivitiesofpoliticalpartiesandpoliticaloﬃces.
Publicoﬃcials,forexample,governmentoﬃcials,havedutiesentrustedtothembycitizensasservantsofallcitizens.Thus,governmentoﬃcialsarerequiredtomaintainethicspertainingtotheirduties.Lawsandregulationsalsorequireadministrativesystemstobefairandtransparent.
Moreover,withrespecttoforeignpublicoﬃcials,domesticlaws,mainlyinOECDcountries,havebeendevelopedpursuanttoensurefaircompetitionininternationalbusinessactivities.
Basedontherecognitionofthisenvironmentregardingrelationshipswithpolitics(politicalparties
andpoliticaloﬃces)andgovernment(supervisoryagencies,etc.)insideandoutsideJapan,we
maintainsoundandtransparentrelationshipswithoutengaginginactsthatcanberegardedascreatinganinterdependentrelationshiporanexcessivelyfamiliarrelationship.
Tothisend,wecomplywithlawsandregulationsandneveroﬀerillegalpoliticalcontributionsorprovidebeneﬁts.Inparticular,weﬁrmlymaintainourattitudeofavoidinganysuspiciousactswithrespecttorelationshipswithpublicoﬃcials;asthesayinggoes,"don'tstraightenyourcapunderaplumtree(raisinghandsmightseemasifoneisattemptingtostealthefruitabove)."

Chapter3.ActionGuidelinesforAllmembersoftheFuyoLeaseGroup
1.MaintainingOrderintheWorkplace
Eachemployeeactsindependentlyandautonomouslywithhighethicalstandards.
Wecooperateandworkwitheachotherwhilerespectinghumanrightsandindividualitytobuildanopen-mindedworkplace.
Weeliminateemptyformalitiesandobscurepractices,etc.

Independenceandrigorousethicalstandard
Wewillworkindependentlyandautonomouslywitharigorousethicalstandardincarryingoutourduties,andactbasedonathoroughunderstandingofnotonlythewordingoflaws,regulationsandrules,butalsothespiritthereof,whileconformingtosocialnorms.Furthermore,wefaithfully
exerciseourworkauthoritieswithoutexceedingthosebounds,andstrivetoreport,communicate
andconsultpromptly.
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Weareawarethattheresultsofouractionsareentirelyourownresponsibility,andactaccordingly.
Itisunacceptabletoviolatetherules,regardlessofthereasonsbehindthemwhetheritwasforthebeneﬁtofthecompany,asuperiororacustomer.

RespectforhumanrightsandindividualityWerespecteachother'shumanrightsandindividuality,anddonotengageinanyformofdiscrimination.Wealsodonotengageinsexualharassmentoranyotherformsofharassment.

Teamworkandperformanceofworkduties
Althoughitisexpectedthateachemployeeacquiresexpertknowledgeandskillsrelatingtotheirﬁeldtoperformtheirworkduties,thataloneisnotenough.Anorganizationisbasedonthecooperationandteamworkofeachandeveryemployee.Itisamistaketoactofyourownaccord
anddisruptteamwork,thinkingthatyoucandosomethingbyyourself.Webringtogethereachindividual'sexpertiseandvalueteamworktoprovidethebestservicetoourcustomers.

Open-mindedworkplaceWecreateanopen-mindedworkplacewhereemployeescanfreelydiscussanythingwithoutfearing
theirmanagersorsuperiors.

Eliminationofritualsandobscurepractices,etc.
Wedonotengageinactsbasedonformalcourtesies(rituals)orobscurepractices,etc.between
directorsandemployees.Forexample,itisunnecessaryfordirectorsandemployeestoexchange
mid-yearandyear-endseasonalgifts,etc.Instead,weprioritizeourbasicpolicyof"puttingourcustomersﬁrst".
Inaddition,directorsandemployeesdonotengageinmoneylendingorsolicitationofpersonal
goods,etc.amongthemselveswithoutduecause.

NopersonalactivitiesintheworkplaceWedonotengageinunauthorizedpersonalactivitiessuchaspoliticalandreligiousactivitiesduring
workinghoursorwithinthecompany'sfacilities.

2.NoPersonalUseofCompanyAssets·Wedonotusecompanyassets(expenses,goods,andknow-how,etc.)forprivatepurposes.
Companyassetsareloanedorprovidedtousforthepurposeofcarryingoutbusinessandshouldnotbeusedforprivatepurposes.

ExpensesAsdirectorsandemployeesoftheFinancialServicesGroup,wealwaysactwithawarenessthat
greatcareisrequiredindealingwithmoney.Wedonotuseordivertcompanyexpensesforprivate
purposes.
171

Conversely,employeesshouldmakesuretochargeforevensmallwork-relatedexpenses,suchastransportationexpenseswhengoingoutforworkpurposes.
Inthiswayweareabletogetintothehabitofdistinguishingbetweenbusinessandpersonal
expenses.

Goods
Companygoods(noveltyitemsandoﬃcesupplies,etc.)arenottobeusedforprivatepurposes.Inordertodisciplineourselves,weshouldthinkandactinawaythattreatsanyﬁxturesascompany
assets.Also,werefrainfromusingcompanytelephonesandcomputers(e-mailandInternet)etc.
forpersonaluseunrelatedtotheperformanceofworkduties.

Know-how,etc.
WerecognizethatintangibleitemssuchastheGroup'sknow-how,etc.arecompanyassets,anddonotusethemoutsideofourwork.

3.AppropriateInformationManagementWeobtainexternalinformationbylegitimatemeansanddonotdiscloseanypersonal
informationornonpublicinformationconcerningcustomersthatweacquiredintheperformanceofourwork,oranyconﬁdentialinformationabouttheGroupitself.Inaddition,
informationobtainedisusedonlyforworkpurposes,andnotforprivateinterestssuchasinsidertrading,etc.
Werespectintellectualpropertyrights,includingpatentrightsandcopyrights.
Wewillstrivetoactivelycreateandshareknowledgetoincreasecustomersatisfaction.
Inperformingourworkwewillhandleallmannerofdiﬀerentinformation.Strictandappropriate
managementisrequiredforallinformationthatweobtainthroughwork,suchascustomers'
personalandnonpublicinformation,conﬁdentialinformationconcerningtheGroupitselfandinformationheldbyothers.
Inaddition,duetoadvancesintheIT(informationtechnology)revolution,thereisincreasedriskofexternalinformationleakage,intrusionintothecompanysystembyexternalpartiesetc.,thereforethemanagementofelectronicinformationhasalsobecomeincreasinglyimportant.

Obtaininginformation
Weobtainexternalinformationbylegitimatemeans,suchasthroughauthorizedchannels,andbypayingcompensationasnecessary.Wedonotobtainconﬁdentialinformationbymeansthatbreachlawsandregulations,orwithoutobtainingconsentfromtherelevantperson.

Conﬁdentiality
Unlessthereisalegitimatereasonbasedonlawsandregulations,ortherelevantpersonhasgiven
consent,theinformationobtainedthroughworkisusedonlyforthepurposeofsuchwork,andiscarefullymanagedtoensureitisnotleakedtoexternalparties.Customersdobusinesswithusparticularlytrustingthatwedonotdisclosesecretstootherparties.Protectingcustomers'secretsisabasicelementofourwork.
172

Nounauthorizeduse,etc.
Wedonotengageinillegalinvestmentactivitiessuchasinsidertrading,etc.orpursuepersonal
interestsbyusingnonpublicinformationwhichweobtainedthroughwork.Moreover,wedonot
destroy,counterfeit,tamperwith,orillegallyusethecompany'sinformation.

Preventingleakageofinformationduetocarelessness
Itgoeswithoutsayingthatwedonotintentionallyleakinformation,butcaremustalsobetakentopreventleakageduetonegligence.Forexample,inperformingourdailyworkweproperlymanage
documentsandkeepourdesksorderly,aswellaslockcabinetsetc.Werefrainfromconversationthatleadstoinformationleaksnotonlywhenintransitandatrestaurants,butalsoinelevatorsandcafeterias,etc.withinthecompany.Wealsodonotleakconﬁdentialinformationtoourfamilies.

DisposalofinformationWedisposeofinformationthatisnolongerrequired,inaccordancewithcompanyrules.

Joiningorleavingthecompany
Wedonotuseanysecretsobtainedwhileworkingatapreviousplaceofemploymentatall,evenif
itisadocument,etc.createdbywemadeourselves.Also,afterleavingthecompany,wedonotdisclosesecretsobtainedwhileemployedatthecompanytoanyotherparty.Wedonotuseany
intellectualpropertybelongingtothecompanyafterleavingthecompany,evenifwecreateditourselveswhileadirectororemployeeofthecompany.

InformationdisclosureWedisclosecompanyinformationinaccordancewiththeprescribedrules.Whenaskedforinterviewsfromexternalpressoranalysts,weconsultwithourmanagersorpublicrelations
departmentandfollowtheirinstructions.

Protectionofprivacy
Whenhandlingpersonalinformationwemakesureitistrulynecessarytoconductourwork,thatitisobtainedinalegalandfairway,andusedandmanagedinawaywhichprotectsprivacyatall
costs.

Respectforintellectualpropertyrights
Wedonotuseinformationforwhichanotherpartyholdsintellectualpropertyrights(patentrights,
copyrightsandtrademarkrights,etc.),inprinciple,unlesstheconsentoftherelevantpersonhasbeenobtained.Wegivedueconsiderationnottoinfringecopyrightsparticularlyforinformation
obtainedfrommagazines,literatureandtheInternet,etc.
Meanwhile,inordertomaintainthecompany'scompetitiveedge,wewillprotectourcompany's
intellectualproperty,whichincludespatents,copyrights,trademarkrights,ﬁnancialtechnology
knowledgeandknow-how,andexperienceandknowledgeacquiredthroughourwork.

UsinginformationwithintheGroup173

WerecognizethattheGroupitselfhasawealthofknowledgeandinformation,andactivelyutilize
suchinformationwithintheGroupwhilepayingattentiontoconﬁdentialityobligations,etc.toenhancecustomersatisfactionandtheGroup'scompetitiveness.

4.NoConﬂictsofInterestWeacttoensurethattheinterestsofthecompanyorourcustomersarenotharmedduetoourowninterests.
Wedonotuseourstatusinthecompanyfortheinterestsofanyoneotherthanthecompany.
Wealwaysactwiththeinterestsofthecompanyorourcustomersasourtoppriority.Wearecarefulnottoputourselvesinsituationswherewemaybeseenasactinginourowninterests.Even
whenwehavedonenothingwrong,weneedtobecarefulthatothersaroundusmayperceivethat
thereisaconﬂictofinterests.Weareresponsibleforbeingfaithfultoourdutiesatthecompany
anddonotengageinanypersonalinvestmentorbusinessthatmaypreventusfrommaking
reasonablejudgmentstooptimizethecompany'sinterests.

Useofstatus
Wedonotacceptpersonalbeneﬁtsbyusingourworkdutiesorthestatusthereof.Wealsodonotseekpersonaladvantagesfromanythirdparty.Forexample,wewillneveruseourworkdutiesorstatusthereoftorequestentertainmentorgoods,orcooperationwithpersonalactivitiessuchaspoliticalorreligiousactivities.Also,wedonotpersonallyreceiveremunerationorcommissionsfromourcustomersortheiremployees,etc.,orengageinmoneylendingorborrowing.

CompetingpositionWedonotplaceourselvesinapositionwherewecompetewiththecompany.Wedonotassume
positionsasdirectorsoremployeesofotherrivalcompanies,orengageinactivitiessuchaspromotingorsupportingthesalesactivitiesofotherrivalcompanies.

Transactionsinvolvingrelatives,etc.
Weavoidengagingintransactionsinvolvingourfamily,closerelativesandfriends,etc.Thisisduetothefactthat,comparedtogeneralcustomers,wearemorepronetogettingintoasituationofhavingtoprovidesomeadvantages.

5.AppropriatePersonalConductWedonotconductanyactsthatharmordamagethecompany'scredibilityorhonor,notonlyasapartofourworkduties,butalsooutsideofwork.
WeobservetheRoadTraﬃcActnotonlyasapartofourworkduties,butalsooutsideofwork,andasamatterofcoursedonotdrinkdrive,ormakeanotherpersondrinkdrive.
Whenengaginginprivateactivitiesoutsidethecompanyweparticipateinapersonalcapacity,anddonotusethecompanynameorourpositiontitlewithoutduecause.
Wedonotengageinanyotherbusinesswithoutpermission.

174

Inprinciplethecompanydoesnotusuallygetinvolvedinorinterferewithprivateactivities.
However,ifthereisariskofdamagingthecompany'shonorandinterests,evenprivateactivities
maybesubjecttodisciplinaryaction.
Webelievethatthetrustvestedinusbycustomersandsocietyisthefoundationofourbusiness.
Therefore,eveninprivateactivitiesthatareseparatefromwork,wearecarefulnottodamagethistrustandarerigorousinensuringweconductourselvesappropriately.

Leadingsoundpersonallives
WeareconstantlyawarethatwearemembersoftheFinancialBusinessGroup,andtrytoleadsoundpersonallivestoavoidfallingintoeconomiccollapseduetospeculativebehavior,ortaking
outguaranteesormoneylendingandborrowing,etc.exceedingindividualcapabilities.

NodrinkdrivingWefullyrecognizethetragedyoftraﬃcaccidentscausedbydrinkdriving,andabsolutelydonotdrinkdriveourselves,orallowotherstodoso.

Distinctionbetweenpublicandprivatelives
WedonotabusetheGroup'scompanynameorourjobtitles,andavoidharmingthecompany's
honorandinterestsinordertogainpersonalbeneﬁts,etc.Weclarifywhetherthoseactivitiesareconductedasdirectorsoremployeesofourcompany,orwhethertheyareprivateactivitiessoasto
avoidanymisunderstandings.

NootherbusinessWedonotworkatothercompaniesorconductbusinesswithoutpermission.Thisisbecause
holdingconcurrentpostsisprohibitedbylawsandregulations,ortheremaybeconﬂictofinterests.

6.SocialMediaPolicy(AppropriatePersonalConduct2)
Wewillnotdiscloseconﬁdentialinformationwithinandoutsidethecompanyasamatterofcourse,orpersonalinformationandinformationobtainedinthecourseofbusinessregarding
customers.
Werecognizetheexistenceofanunspeciﬁednumberofpeoplewithdiversevalues,anddonottransmitinformationthatiscontrarytothefacts,orthatcouldbemisunderstoodby,or
causediscomforttothereceivingperson.
Werecognizethatourownopinionsandviewscouldbeperceivedtobetheviewsandopinionsofthecompany,sowestrivetobehaveinawaybeﬁttingofamemberofthecompany.
Wealwayskeepinmindtomakerespectfulremarks,andrespondcalmlywhencriticizedbyotherpersons.
Wecomplywithvariouslawsandregulationsandtrynottoinfringeanythirdpartyintellectual
propertyrightsandprivacyonsocialmedia.
Inrecentyears,socialmediathatallowsgeneralindividualstodisseminateinformationandexchangeopinions,etc.ontheInternethavebeendevelopingrapidlyduetothespreadofsmartphonesandothertechnology.
175

Examplesofpopularsocialmediaincludeblogs,YouTube,TwitterandFacebook,etc.
Meanwhile,therehasbeenasuccessionofissuescausedbyinformationdisseminatedonsocial
media.
Therearemanycaseswhereinformation(remarks)thatwerecasuallyposteddevelopedintoanincident,andthepersonalinformationoftheperson(employee)whopostedtheinformationwasdisclosedonthenet,witheventheperson'sworkplace(company)becomingthetargetofcriticism.
Inordertopreventsuchissues,thecompanyhasestablishedasocialmediapolicy(moderate
personalactivities2)asourbasicstanceforemployees'useofsocialmedia.
Inaddition,aswiththemoderationinpersonalactivitiesmentionedintheprecedingparagraph,evenpersonaluseofSNSmaybesubjecttodisciplinaryactionifthereisariskofdamagingthecompany'shonorandinterests.
Naturally,postingpersonalopinionsonsocialmediafromthecompany'sinternalnetworksisrestrictedbythesystems.

Characteristicsofsocialmedia
Theycanbeaccessedbyanunspeciﬁednumberofuserswithdiversevalues
Thespeedofinformationdisseminationisfast
Onceinformationisposteditisalmostimpossibletoerase
Evenifapersonpostsanonymously,thereisahighprobabilitythatthepersonwhopostedthecommentwillbeidentiﬁed

Disclaimer

DisclosurePolicy

Copyright(C)FuyoGeneralLeaseCo.,Ltd.AllRights
Reserved

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176

Top > CSR > GovernanceandManagemnet > RiskManagementandComplianceSystem

RiskManagementandCompliance
SystemOur 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 particularrisk 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 designated department.
The Board of Directors and the Executive Committee receives updates on risk management, discusses
risk management policies according to the characteristics and importance of each risk, and evaluates theeﬀectiveness of risk management. The Asset and Liability Management (ALM) Committee meets on a

CSR

Fuyo Lease
Group's CSR
Solving Social
Issues throughBusiness
Environmental
Reportregular basis to appropriately manage and control market and liquidity risks. These eﬀorts enable us tocontinually improve our risk management system.

Social Report

In addition, we have a system in place for responding to emergencies. In the event of a large-scaledisaster or emergency, the emergency response headquarters under the direction of the president willtake measures necessary for ensuring safety and continuity of our operations in accordance with theGovernance andManagemnet

Emergency Preparedness Regulations.

Corporate
Governance
Code ofCorporate
Conduct

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

RiskManagement
andCompliance
SystemInformation
Security

Our Approach to Compliance and Compliance
System177

Each Group
Company's
Environmental
and Social
initiatives

At the Fuyo Lease Group, ensuring compliance is a fundamental principle of management. We work tostrengthen and enhance 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, andmanuals, conducting compliance education, and enhancing the whistleblower system on the basis of theFuyo General Lease Group's Code of Corporate Conduct. In order to maintain and further improve ourcompliance 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 and progress of the
programs are reported to the Board of Directors on a semi-annual basis.
The Compliance Committee, which forms the core of the Group's compliance system, is chaired by Fuyo
Lease's Compliance Management Oﬃcer, and standing committee members are made up ofrepresentatives of the compliance-related departments of each group company. To verify theeﬀectiveness of the compliance system for the entire group, the Compliance Committee meets every
three months to deliberate and report on the formulation and progress of the Group's complianceprogram, whether or not compliance problems have occurred and how to deal with them, and trends inthe enactment, revision, or abolition of major laws and regulations.
We will continue our group-wide activities including management and implementation of compliancemeasures and compliance 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 the basic policies and position of the entire group as well as behavioral guidelines for theemployees of the Group.
We conduct training programs and oﬀer e-learning courses to employees to enhance the eﬀectiveness of
the Code of Corporate Conduct. These programs and courses ensure that all employees are aware of its
policies and guidelines, and evaluation of the training is regularly reviewed.

Whistleblower Hotline
The Fuyo Lease Group operates a whistleblower hotline.
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 information on these services
is disclosed on the companyʼs intranet bulletin board. Concerned individuals can immediately seek
consultation or report whenever they detect any violations of the law, the Code of Corporate Conductand other corporate regulations, harassment cases, misconduct in information management or otherpotential infringements. The whistleblower systems accept anonymous reports to protect
whistleblowers.
Compliance Oﬃcers* as well as persons in charge of compliance are appointed as consultants within
their departments and group companies to handle individual cases. In the event of non-compliance or a178

External
Evaluation
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Independent
assurancesuspected violation, compliance personnel such as compliance oﬃcers are responsible for taking
appropriate measures and conducting investigations and reports in accordance with instructions andorders from Fuyo Lease's Legal and Compliance Division and the heads of the compliance departmentsof the relevant group companies as per the Compliance Manual.
*

A compliance oﬃcer is appointed for each department or company to raise compliance awarenessand ensure compliance.

Furthermore, Fuyo Lease has appointed full-time corporate auditors as a contact point for receiving
whistleblower reports from group companies, and we have also set up a contact point at aﬃliated law
ﬁrms for whistleblowing from employees of overseas subsidiaries.
In ﬁscal 2019, three reports were received through the hotline. In each case, investigations arepromptly 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.

Prohibition of Corruption and Bribery
The prohibition of misconduct, including collusion, cartels, abuse of superior position, inappropriate
entertainment and gifts, and illegal political donations is clearly stipulated in Chapter 2 “5. Basic Attitude
toward Suppliers and Competitors" 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 implementscompliance audits in addition to identifying businesses, intermediaries and business partners that arehigh risk in the ﬂow of its operations and avoiding involvement with them. In business audits, risks
regarding the identiﬁcation and prevention of corruption and bribery are appropriately evaluated basedon 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 are considered to be particularly highrisk, we conﬁrm that the compliance oﬃcer has further evaluated the appropriateness, and we arethoroughly preventing corruption and bribery.
We inform all Group employees about the Code of Corporate Conduct and the prohibition of corruption
and bribery, and encourage 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 and business partners, and the private use of the companyʼs assets. In ﬁscal 2019, noinfringements related to corruption were found in the Group. Additionally, no employees were dismissedor subjected to disciplinary action due to corruption.
In ﬁscal 2019, the Company made no political donations.

179

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, anddepartmental compliance oﬃcers.*

Compliance Training (ﬁscal 2019)
Group training and workplace training
Participant

Entry level# ofsessionSubject

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 track)

Response to accidents and troubles

1

Newly appointed head of
department/branch oﬃce

Issues to be understood as responsible
oﬃcers to ensure compliance1

Newly appointed assistantmanager/section chief

Prevention of power harassment, sexual2

All employees

Directors and head of
department/oﬃce/branchoﬃce

and maternity harassment

Prevention of money laundering andmeasures to counter terrorism ﬁnancing

1

Prevention of money laundering andmeasures to counter terrorism ﬁnancing

1180

E-learning
Participant

Subject

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

Regulation for Insider Trading (e-learningmaterial 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 in accordance with its Policy for the Prevention of Money Laundering. In addition, we haveestablished a system to prevent money laundering and funding of terrorism not only in Japan but also intransactions outside Japan.
Furthermore, we continuously strive to promote understanding by way of training for all group
employees and by inviting outside experts to train the compliance and legal staﬀ of each groupcompany.

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 and to maintain the transparency and impartiality of the market.
*

J-IRISS (Japan-Insider Registration & Identiﬁcation Support System): A system operated by theJapan Securities Dealers Association by which 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 muchas possible.

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181

Top > CSR > GovernanceandManagemnet > InformationSecurity

InformationSecurity
Our Approach and Management System for
Information Security and Customer
Information Protection
The Fuyo Lease Group has established an information management system based on work content, andCSR

Fuyo Lease
Group's CSR

strictly manages customer information. To ensure information security is strictly enforced throughout
the Group, details of the Appropriate Information Management section included in the Code of Corporate
Conduct and the Privacy Policy are communicated to our employees. Additionally, data is strictly
controlled by the management supervisor in accordance with detailed rules, including the Conﬁdential
Information Management Rule.

Solving Social
Issues throughBusiness
Environmental
ReportInitiatives to Information Security and Customer Information
Protection

Social Report

To appropriately protect customer information, when outsourcing work, we impose conﬁdentiality

Governance andManagemnet

obligations on outsourcers, and when obtaining personal information from individual customers, wealways give notice of the purpose of use in accordance with the Act on the Protection of Personal
Information and its guidelines.
In addition, our rules and regulations 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 in which 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 theimportance of information security and manage information appropriately. In ﬁscal 2019, we focused on
the protection of customer information through e-learning training for all employees, and we provided
training on the conﬁdential information management and personal information protection for 1st year

Corporate
Governance
Code ofCorporate
Conduct
Risk
Management
andCompliance
SystemInformation
Security

employees (generalist track).
In ﬁscal 2019, there were minor issues, such as erroneous 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.

182

Each Group
Company's
Environmental
and Social
initiatives

In response to each customer segment and the work being handled, the following group companies
have acquired the Privacy Mark

Glossary

given to business operators who have been deemed

appropriate for the handling of personal information, and ISO27001 certiﬁcation

Glossary, which isa global standard for information security management systems. By continuously improving ourExternal
Evaluation
Editorial Policy

management systems based on these standards, we are working to further improve reliability.

Independent
assurance

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

Click on the image to enlarge.

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

183

Click on the image to enlarge.

Click on the image to enlarge.

INVOICEINVOICE's oﬀerings include business customers integrated billing services that help reduce costs andimprove 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

Click on the image to enlarge.

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 1989, 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.

184

Privacy Mark Registration Certiﬁcate

Click on the image to enlarge.

ISO27001 Management System
Registration Certiﬁcate

Click on the image to enlarge.

Fuyo Network Service
Fuyo Network Service is engaged in the sales of information equipment, and is providing support for the
introduction and operation of the equipment and for activities such as erasing sensitive data. In January
2010, Fuyo Network Services acquired ISO27001 certiﬁcation for the entire company.
ISO27001 Management System Registration Certiﬁcate

Click on the image to enlarge.

Click on the image to enlarge.

185

Fuyo Lease Sales Tokyo 3R Center
Fuyo Lease Sales focuses on Fuyo Lease's lease expiration processing business, and on purchasing andsales of used assets. The Tokyo 3R Center was opened in March 2013 as a base to recycle assets whose
leases have expired and for used assets. In June 2013, it acquired ISO27001 certiﬁcation for the
Information Security Room (ISR), which serves as the guideline for operations such as deleting data
saved in second-hand information equipment and checking their operational status. In March 2018, thescope of the ISO27001 certiﬁcation was expanded to the entire Tokyo 3R Center.
ISO27001 Management System Registration Certiﬁcate

Click on the image to enlarge.

Click on the image to enlarge.

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 established by the International Organization for Standardization.

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186Top > CSR > EachGroupCompany'sEnvironmentalandSocialinitiatives

EachGroupCompany's
EnvironmentalandSocialinitiatives
FuyoAutoLease

SharpFinanceAccretive

INVOICE

NOCOutsourcing&Consulting

YAMATOLEASE

CSR
FuyoLease
Group'sCSR
SolvingSocial
IssuesthroughBusiness
Environmental
Report

FUJITA

FuyoNetworkService

SocialReportAquaArt

FuyoLeaseSales

EachGroup
Company's
Environmental
andSocial
initiatives

GovernanceandManagemnet

FuyoAuto
Lease
Sharp
Finance
Accretive
INVOICENOC
Outsourcing& Consulting

187

YAMATOLEASEFUJITA
Fuyo
Network
ServiceAquaArt
FuyoLease
Sales
External
Evaluation
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Independent
assurance

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188

Top > CSR > EachGroupCompany'sEnvironmentalandSocialinitiatives > FuyoAutoLease

FuyoAutoLease
Outline of Fuyo Auto Lease

CSR

ProﬁleFuyo Auto Lease reduces complicated operations related to customers' cars and supports a total

Fuyo Lease
Group's CSR

rationalization of management.

Solving Social
Issues throughBusiness

Company proﬁleEstablished

January 1987

Capital

240 million yen

Shareholders

Business Activities

Environmental
ReportSocial Report
Governance andManagemnet

Fuyo General Lease (100%)

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

Each Group
Company's
Environmental
and Social
initiatives

Fuyo Auto Lease website

Fuyo Auto
Lease

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

Sharp
Finance
Accretive
INVOICENOC
Outsourcing& Consulting
YAMATO
LEASE

189

Environmental activities in the auto leasing business

FUJITA
Fuyo Network
ServiceAqua Art
Fuyo Lease
Sales

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

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

190

Independent
assurance

Suggestions for telematics
Fuyo Auto Lease supports customer's operation management and accident prevention throughtelematics proposals.
"Telematics" is a blend word that combines "Telecommunication" and "Informatics." It refers to a service
or a system that 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 andunderstand/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 2019, we held 85 seminars for major companies, medium-sized companies, and small to midsized companies, which were attended by a total of 1,993 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 2019, continuing from the previous year, we donated funds to support children
orphaned by traﬃc accidents.

191

Results of support provided from FY 2014 to 2019
Details of Activities

Donation

FY
2014

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

210,000
yen

FY
2015

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

210,000
yen

FY
2016

Donated funds from our employees/company to the Scholarship

210,000

FY
2017

Donated funds from the company to the Scholarship Foundation forTraﬃc Accident Orphans

200,000
yen

FY
2018

Donated funds from the company to the Scholarship Foundation forTraﬃc Accident Orphans

200,000
yen

FY
2019

Donated funds from the company to the Scholarship Foundation forTraﬃc Accident Orphans

200,000
yen

Disclaimer

Foundation for Traﬃc Accident Orphans

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192

Top > CSR > EachGroupCompany'sEnvironmentalandSocialinitiatives > SharpFinanceSharpFinance
Outline of Sharp Finance

CSR

ProﬁleSharp Finance is a leasing company that has its strengths in the retail market for small leases, such as

Fuyo Lease
Group's CSR

developing vendor leasing in collaboration with dealers for small- and medium-size enterprises.

Solving Social
Issues throughBusiness

Company proﬁleEstablishedMay 1982

Capital3 billion yen

Shareholders

Business Activities

Environmental
ReportSocial Report
Governance andManagemnet

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

Various leasing businesses, credit sales business, real estate rental
business, and insurance agency business"Sharp Finance" website

Each Group
Company's
Environmental
and Social
initiatives

Fuyo Auto
Lease

Fuyo General Lease and Sharp Finance have combined their expertise to meet diversiﬁed andsophisticated customer needs.

Sharp
Finance
Accretive

Contributing to the environment through theintroduction of LED lighting equipment
Sharp Finance oﬀers energy-saving products in collaboration with Independent Incubator Co., Ltd., afacilities and equipment dealer.

INVOICENOC
Outsourcing& Consulting
YAMATO
LEASE

193

LED lighting devices are gaining popularity as an energy-saving lighting alternative to conventional
lighting, due to the fact that LEDs' power consumption is about one-third of ﬂuorescent tubes. Moreover,they are not only energy-saving but also have long lives, so the use of LED lighting saves a lot of timepreviously used for maintenance.
Our customer Mokunansha Tomita Hospital, a medical institution, was established in Okazaki City, Aichi
Prefecture over 100 years ago. Over time, the hospital has developed its community-based medical
activities as a hospital trusted by local people.

FUJITA
Fuyo Network
ServiceAqua Art
Fuyo Lease
Sales

Recently, the existing lighting system in the Preventative Medicine and Rehabilitation ward that had beenin place since the ward's opening in July 2012 was replaced with LED lighting through a lease systemfrom us.

External
Evaluation

Hospitals need appropriate lighting equipment to maintain a comfortable medical care environment, but

Editorial Policy

the large amount of energy used by such a system is a problem.
LED lighting was introduced to cover the whole building from the entrance to the back courtyard. As aresult, the hospital achieved its energy-saving goals, and we were highly evaluated because the brighter
hospital has made it easier to work for those working in the building.

Independent
assurance

We want to continue advising our customers about the advantages of LED lighting in the future.

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194Top > CSR > EachGroupCompany'sEnvironmentalandSocialinitiatives > Accretive

Accretive
Overview of Accretive

CSR

ProﬁleAccretive purchases receivable accounts that arise from the delivery of goods and services, provides

Fuyo Lease
Group's CSR

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 asaccounting administration to clients including retail business operators.

Environmental
ReportCompany proﬁleEstablished

CapitalShareholders

Business Activities

Solving Social
Issues throughBusiness

May 1999

Social Report

100 million yen

Governance andManagemnet

Fuyo General Lease (74%)
Pan Paciﬁc International Holdings Corporation (26%)

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

Each Group
Company's
Environmental
and Social
initiatives

Fuyo Auto
Lease"Accretive" website

Sharp
Finance

Cambodia support activities

Accretive

Since 2017, in collaboration with its Cambodian subsidiary Accretive Service (Cambodia) Co., Ltd.,
Accretive has supported to elementary schools in Takeo province, Cambodia.
10 employees from Japan visited the local elementary schools and conducted exchange meetings toprovide guidance on hygiene and to donate goods such as clothing, stationery, and daily necessities

INVOICENOC
Outsourcing& Consulting
YAMATO
LEASE

collected from employees at each base in Japan.

195

The exchanges with the children were helpful in understanding the current local situation and its issues,
namely, that the educational 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.

FUJITA
Fuyo Network
ServiceAqua Art
Fuyo Lease
Sales

External
Evaluation
Editorial Policy
We handed stationery directly to about 120 elementary
school students

Teaching hand-washing with soap

Playing together using a donated long rope

Commemorative photographApproach to Positive Oﬀ Motion
Accretive agrees with the aims of
the Positive Oﬀ -movement
advocated by the Japan Tourism
Agency to realize more meaningful leisure activities of employees and their families.
This movement sees "holiday = oﬀ" as "forward-looking = positive." Each employee can proactively
declare their plans to take paid leave, and as a result of going out and traveling during leisure time
becomes refreshed both mentally and physically, which enhances self-improvement, and contributes toeconomic 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 avacation.

196

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assuranceDisclaimer

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197

Top > CSR > EachGroupCompany'sEnvironmentalandSocialinitiatives > INVOICEINVOICE
Outline of INVOICE

CSR

ProﬁleINVOICE provides integrated billing services for business clients that help reduce costs and improve

Fuyo Lease
Group's CSR

productivity, and Internet services for residential buildings for individual customers.

Solving Social
Issues throughBusiness

Company proﬁleEstablished

December 1992

Capital

100 million yen

Shareholders

Business Activities

Environmental
ReportSocial Report

Fuyo General Lease (60%)
Development Bank of Japan Inc. (40%)

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

Governance andManagemnet
Each Group
Company's
Environmental
and Social
initiatives

Fuyo Auto
Lease

Contributing to Client Companiesʼ Improved
Productivity through BPO Services

Sharp
Finance

INVOICE provides integrated billing services, which are BPO services where INVOICE compiles the

INVOICE

individual telecommunications and public utility bills that are delivered to a customer's individual oﬃces,
pays those bills on behalf of 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 andwork-style reform is required to reduce long working hours. Companies face an urgent challenge to198

Accretive

NOC
Outsourcing& Consulting
YAMATOLEASE

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 INVOICEʼs integrated billing services allows customers to unify
the diﬀerent payment procedures used by each telecommunications carrier and utility provider,improving operational eﬃciency. Using the clientʼs mobile phone and Internet-related bills to understandthe details of usage and then proposing the most suitable communication plan also helps clientcompanies reduce their communication costs.

FUJITA
Fuyo Network
ServiceAqua Art
Fuyo Lease
Sales

There have been drastic changes in the business environment surrounding payment and settlement
services as a result of 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

External
Evaluation

through the use of robotic process automation (RPA), thus contributing to the reduction of costs andEditorial Policy

improved productivity for more customers.

Independent
assurance

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199

Top > CSR > Each Group Company's Environmental and Social initiatives> NOC Outsourcing & Consulting

NOC Outsourcing & Consulting
Outline of NOC Outsourcing & Consulting
ProﬁleNOC Outsourcing & Consulting provides "total outsourcing" targeting administrative departments such

CSR

Fuyo Lease
Group's CSR

as general aﬀairs, accounting, and human resources, as well as sales administration and IT.

Solving Social
Issues throughBusiness

Company proﬁleEstablished

November 1998

Capital

100 million yen

Shareholders

Business Activities

Environmental
ReportSocial Report
Governance andManagemnet

Fuyo General Lease (100%)Comprehensive outsourcing, human resources services, andshared services

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

Fuyo Auto
Lease

Providing BPO services that meet the needsof the times
The strengths of NOC Outsourcing & Consulting lie in its outsourcing services (BPO services) targeting
administrative departments such as general aﬀairs, accounting, and human resources, as well as sales
administration and IT. In addition to its robust consignment and operational functions, NOC Outsourcing& Consulting is contributing to operational eﬃciency and cost reductions at approximately 1,000
companies. It is doing this by visualizing and standardizing operations through the use of its own
consulting functions, and by automating and reducing the number of employees through the use of
system development functions such as RPA.

200

Sharp
Finance
Accretive
INVOICENOC
Outsourcing& Consulting
YAMATO
LEASE

The recent decline in the number of people coming to work due to the spread of COVID-19 has
prolonged risks to business continuity for companies. This has raised the question of what tasks can behandled with minimum personnel. As a result, there is a growing need to develop telecommuting
environments and BPO services as part of BCP measures. In March 2020, NOC Outsourcing & Consulting
also began providing IT outsourcing services that make use of the Tokyo Metropolitan Government
Business Continuity Emergency Measures (Telecommuting) Grant. It has promptly engaged insupporting 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 thebusiness environment as well as accompanying changes in needs, and will proactively respond to newneeds of the times.

FUJITA
Fuyo Network
ServiceAqua Art
Fuyo Lease
Sales

External
Evaluation
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assurance

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201

Top > CSR > EachGroupCompany'sEnvironmentalandSocialinitiatives > YAMATO LEASEYAMATO LEASE
Outline of YAMATO LEASE

CSR

ProﬁleYAMATO LEASE provides support services for the management issues of transportation companies, such

Fuyo Lease
Group's CSR

as succession problems and driver shortages in addition to providing support for the leasing,Solving Social
Issues throughBusiness

procurement, and sales of new and used trucks.

Company proﬁleEstablished

Environmental
ReportMarch 1977

Social Report
CapitalShareholders

Business Activities

30 million yen

Governance andManagemnet

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

Truck leasing and installment sales, used car sales“YAMATO LEASE” website

Each Group
Company's
Environmental
and Social
initiatives

Fuyo Auto
Lease

Supporting vehicle procurement to resolve
management issues faced by transportcompanies

Sharp
Finance

In the logistics industry, many social issues have become apparent, including an increase in the volume

NOC
Outsourcing& Consultingof 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, theautomobile industry is said to be entering a once-in-a-century period of great change due to CASE*1
technological innovations and the progress of MaaS*2 that connects vehicles and other means of202

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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 purchaseof existing and used trucks to meet our customersʼ needs. When selecting a used truck, we provide an

FUJITA
Fuyo Network
ServiceAqua Art
Fuyo Lease
Sales

environment where customers can search for a vehicle that meets their needs in a catalog-like manner
through our “Tora-Machi” used-truck matching application.

External
Evaluation
Editorial Policy
Independent
assurance

Our strengths lie in our customer network as well as proposal-based sales, and going forward, we willcontinue to leverage these strengths in support of vehicle procurement that resolves the issues faced bytransportation companies.
*1

CASE stands for Connected, Autonomous/Automated, Shared, and Electric. It is expected thattechnological innovation in these new areas 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 of transportation 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 and Tourism andthe Nippon Kaiji Kyokai as an organization that promotes the Driver's Workplace Environment Quality
Certiﬁcation System (commonly known as the Comfortable Workplace Certiﬁcation System).

203

The Comfortable Workplace Certiﬁcation System is also called the White Management Certiﬁcation
System. It is a system to certify companies that are engaged in work-style reform, such as the revisionof 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. The aim is 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 andprovides 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 thenumber 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 transportation industry
YAMATO LEASE provides business succession support services speciﬁcally for the transportation industry.
The business succession support services provided by YAMATO LEASE leverage the experience andknow-how that we have acquired from leasing trucks to transportation companies to match companies
that are struggling to continue business due to aging 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, andresolving driver shortages.

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Top > CSR > EachGroupCompany'sEnvironmentalandSocialinitiatives > FUJITA

FUJITA
Outline of FUJITA

CSR

ProﬁleFUJITA Co., Ltd. provides full support for the purchase, demolition and removal of medical equipment, inFuyo Lease
Group's CSR

addition to the disposal of medical equipment, furniture and ﬁxtures when hospitals and clinics open,

Solving Social
Issues throughBusiness

relocate, and/or close.

Company proﬁleEstablished

Environmental
ReportJuly 2006

Social Report
CapitalShareholders

70.35 million yen

Governance andManagemnet

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

Buying and selling second-hand medical equipment(including installation and removal)

Business Activities

Demolition and removal of medical equipment, furniture andﬁxtures when hospitals and clinics closed
Selling new medical equipment

Each Group
Company's
Environmental
and Social
initiatives

Fuyo Auto
Lease
Sharp
Finance“FUJITA” website

Accretive

Initiative to resource circulation throughpromotion 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 of205

INVOICENOC
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LEASE

medical equipment from hospitals or clinics that have been closed.

FUJITAIn 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, andother materials*2 that remain in hospitals. The company strives for resource circulation in order tomaximize 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

Fuyo Network
ServiceAqua Art
Fuyo Lease
Sales

activities to reduce the waste amount results in lower waste disposal costs incurred by the customers.
*1

Heavy medical equipment including MRI scanners, CT scanners, and angiography machines andportable equipment including ultrasonic diagnostic equipment and endoscope systems.

*2

External
Evaluation

Hospital beds, oﬃce furniture and equipment, electrical appliances, books and magazines, etc.

Editorial Policy

FUJITAʼs 3Rs

Independent
assurance

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 and plastics.

③ Reduce
As a result of reducing the waste amount, FUJITA can cut disposal costs.

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Top > CSR > EachGroupCompany'sEnvironmentalandSocialinitiatives > FuyoNetworkService

FuyoNetworkService
Outline of Fuyo Network Service
ProﬁleFuyo Network Service provides technical services such as selling ICT equipment and software, providing

CSR

Fuyo Lease
Group's CSR

technical services including assembly, conﬁguration and data erasure, and reselling used PCs based on

Solving Social
Issues throughBusinessthe company-wide ISO 27001 security standards certiﬁcation.

Company proﬁleEstablished

Environmental
ReportApril 1995

Social Report
CapitalShareholders

Business Activities

40 million yen

Governance andManagemnet

Fuyo General Lease (100%)

Selling servers/PCs/peripherals, performing assembly/installation
services, selling used PCs, constructing network systems

Fuyo Network Service website

Each Group
Company's
Environmental
and Social
initiatives

Fuyo Auto
Lease

Promoting the reuse of used PCs andcontributing to a circular society

Sharp
FinanceFuyo Network Service's Hachioji Technical Center accepts about 5,000 used computers per month

INVOICE(approximately 60,000 computers in a year) that have been used in the PC Eco & Value leases and PC
Rental provided by Fuyo Lease. After this, the company re-commodiﬁes (reuses) them.
In the recycling process for customers who would like to employ used computers, we pre-install oﬃcial
Windows OS in collaboration with a MAR operator (Microsoft Authorized Refurbisher PC operator), as
well as take appropriate measures such as erasing existing data and checking the operational status of207

Accretive

NOC
Outsourcing& Consulting
YAMATOLEASE

the computer. Many used PCs are maintained at a suﬃciently high level of functionality. By establishinga resale system such as this for used PCs and promoting reuse, we are contributing to creating a

FUJITA
Fuyo Network
Servicecircular society.

Aqua Art
Fuyo Lease
Sales

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Top > CSR > EachGroupCompany'sEnvironmentalandSocialinitiatives > AquaArt

AquaArt
Outline of Aqua Art

CSR

ProﬁleAqua Art was established in March 1994 as a wholly-owned subsidiary of Fuyo Lease. It operates a

Fuyo Lease
Group's CSR

rental business for tropical ﬁsh tanks, which replicate the natural environment.

Solving Social
Issues throughBusiness

Company proﬁleEstablishedMarch 1994

Capital50 million yen

Shareholders

Business Activities

Environmental
ReportSocial Report
Governance andManagemnet

Fuyo General Lease (100%)

Manufacture, sale, rental, and maintenance of ornamental
aquarium

Each Group
Company's
Environmental
and Social
initiatives

Aqua Art website

Fuyo Auto
Lease

AQUA ART interior aquarium

Sharp
Finance

AQUA ART is a product that directly reproduces the structure of the natural world in an aquarium using
real creatures. The food chain in the aquarium provides a balanced aquarium, and the staﬀs of Aqua Art
carry out maintenance precisely to maintain that balance.

Accretive
INVOICEAQUA ART is familiar to a wide range of people from small children to the elderly as an interioraquarium installed at locations such as oﬃces, shops, hospitals, and schools.

NOC
Outsourcing& Consulting
YAMATO
LEASE

209

(1) Providing people and communities a relaxing space
AQUA ART comprehensively provides a fascinating viewing experience, and a moment to meet thewonder of nature through colorful ﬁsh and aquatic plants in exceptionally clear water that gives peace ofmind.

FUJITA
Fuyo Network
ServiceAqua Art(2) Education on nature
AQUA ART is a unique system that reproduces the food chain directly in an aquarium with actual living

Fuyo LeaseSales

ﬁsh and aquatic plants. It is ideal for children learning about the mechanics of the natural world.

External
Evaluation
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Independent
assurance

Cycle system of AQUA ART

Contributing to the environment throughproducts
Since June 2011, Aqua Art has been changing the lighting of AQUA ART aquariums from conventional
ﬂuorescent tubes to LEDs, achieving high energy-savings. Very little electricity is used for lighting theaquarium, but we are promoting this measure so that it helps to achieve even small energy savings.
Since July 2013, we have been installing only LED lighting in new aquariums. By the end of August
2020, we had installed 800 LED lamps in about 660 aquariums.

Preparing a variety of LED lightings according to thesize of the aquariums

210

Contributing to society through products
In 2003, we started an initiative to donate the AQUA ART interior aquarium as a standalone product toprovide environmental educational material for local kindergartens and nursery schools.
The laughter and cheerful facial expressions that can be found in kindergartens after setting up theaquarium have created positive emotions among Aqua Art employees, contributing not only tocommunities, but also to the motivation each employee.
Since 2012, in cooperation with Fuyo Lease, donation targets have included maternal and child support
facilities and work support facilities for people with disabilities in Tokyo and its neighboring prefectures.
The number of donations totaled 9 at the end of March 2020.
We will continue to make eﬀorts to help even a little to heal the hearts of everyone at facilities in the
future.

Donated AQUA ART aquariums and children who
participated in a visiting lecture

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Top > CSR > EachGroupCompany'sEnvironmentalandSocialinitiatives > FuyoLeaseSales

FuyoLeaseSales
Outline of Fuyo Lease Sales

CSR

ProﬁleFuyo Lease Sales handles administrative work for Fuyo Lease's lease expiration cases and sales of used

Fuyo Lease
Group's CSR

property. It also purchases and sells property owned by customers.

Solving Social
Issues throughBusiness

Company proﬁleEstablished

CapitalShareholders

Business Activities

Environmental
ReportApril 1996

Social Report

10 million yen

Governance andManagemnet

Fuyo General Lease (100%)Administrative work related to re-leasing contracts, administrative
work related to the sale/disposal of lease-end properties, secondhand trade

Fuyo Lease Sales website

Each Group
Company's
Environmental
and Social
initiatives

Fuyo Auto
Lease

Saving resources and reducing waste throughthe 3Rs

Sharp
FinanceFuyo Lease Sales is responsible for processing Fuyo Lease's lease property, whose lease contract has

INVOICEexpired, and implementing the 3Rs (reduce: reduce waste generation; reuse: reusing; recycle:

Accretive

NOC
Outsourcing& Consulting

recycling) under the Environmental Policy of Fuyo Lease Group.

YAMATO
LEASE

212

FUJITA
Fuyo Network
ServiceAqua Art
Fuyo Lease
Sales

External
Evaluation
Fuyo Lease Sales Operations and Promoting the 3Rs

Editorial Policy

Tokyo 3R Center

Independent
assurance

At the Tokyo 3R Center, we reuse and recycle not only lease-expired property but also for used assets
we buy from other companies.
In October 2017, we expanded the Tokyo 3R Center, and one of Fuyo Lease Group companies, Fuyo
Network Service, relocated its technical center to the Tokyo 3R Center to strengthen the Groupʼs reuse
and recycle functions.
Since May 2019, we have been working on reducing waste by building a recycling system with the Seki
Factory, Matsuda Sangyo Co., Ltd. for equipment that cannot be reused at the Tokyo 3R Center.

the Seki Factory, Matsuda Sangyo Co., Ltd.

Tokyo 3R 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 awaste generating business operator, we keep close track of every piece of waste we dispose of throughan electronic manifest system. We conduct on-site inspections of waste disposal contractors according toan annual schedule.

213

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 byprocesses 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. isan intermediate processing factory established in September
2000. It is responsible for crushing and recycling mixed
waste generated in the Tokyo metropolitan area.
In 2002, it obtained ISO14001: 1996 certiﬁcation, and in2010 it acquired Industrial Waste Expert certiﬁcation underTokyo's excellent industrial waste processing company
certiﬁcation system. In 2011, it acquired certiﬁcation as an

Shikahama Recycling Center,
KANAME KOGYO Co., Ltd.

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 andworkshops. The company is working to expand the appropriate disposal of waste.

Re-Tem Corporation
Tokyo Plant of Re-Tem Corporation, which was completed and started operations in 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's214urban renewal project. It recycles 100% of various 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.

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 ofIndustrial 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

Yoriii Eco Space, ECO KEIKAKUCO., LTD.

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 to conﬁrm the on-site
conditions, to exchange information and to build relationships that can help both companies to improve
environmental awareness.

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Top > CSR > ExternalEvaluation

ExternalEvaluation
The Fuyo Lease Group is reinforcing its environmental, social, and governance (ESG) activities andpursuing CSV initiatives to solve social issues. Our ESG practices have been highly evaluated by the

CSR

following organizations, which rate companies based mostly on their non-ﬁnancial information.

Inclusion in Socially Responsible Investment(SRI) indexes
FTSE4Good Index Series

Fuyo Lease
Group's CSR
Solving Social
Issues throughBusiness
Environmental
ReportThe FTSE4Good Index Series is a set of stock indexes operated by FTSE

Social Report

Russell of the London Stock Exchange Group to measure theperformance of companies that demonstrate strong ESG practices.

Governance andManagemnet

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 theEach Group
Company's
Environmental
and Social
initiatives
External
Evaluation

performance of 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)

Editorial Policy

to be tracked in order to manage its ESG investment.

Independent
assurance

MSCI Japan ESG Select Leaders Index
The MSCI Japan ESG Select Leaders Index is a stockindex operated by MSCI Inc. to target Japanesecompanies in various industries that have high ESG
performance. The GPIF also manages its ESG investment by tracking this index.

216

*

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 promotionof Fuyo General Lease by MSCI or any of its aﬃliates. The MSCI Indexes are the exclusive propertyof 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 thisindex.

SNAM Sustainability Index
The SNAM Sustainability Index is an index managed based on the
results of 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.

Evaluation of ESG Financial Initiatives
ESG Finance Awards Japan
In ﬁscal 2019, in the bond category of the ESG Finance Awards, inwhich 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(Ministerʼs Prize, the Ministry of Environment) in recognition of oureﬀorts in the Fuyo 100% Renewable Electricity Declaration Support
Program.

Recognition as a good workplace
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 to Kurumin-certiﬁed companies that have demonstrated ahigher level of commitment.

217

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About this website

CSR

On this website, we report on Fuyo Lease Group's approach to CSR and on the main activities carriedout by the Group in ﬁscal 2019 in as much detail as possible. Additionally, details on the activities carriedout by group companies have been included, so please have a look at these.

Fuyo Lease
Group's CSR

Each Group Company's Environmental and Social initiatives

Since ﬁscal 2018, we have also published an Integrated Report, which details how social and corporate

Solving Social
Issues throughBusinessvalue is created through our businesses from medium- to long-term perspectives. Please also take aEnvironmental
Reportlook at this.
"Integrated Report" PDF download（5649KB）

The Group would like to receive opinions and impressions from a wide range of stakeholders which wewould like to refer to in future CSR activities and activity reports. Please send us questions, comments,
impressions, and other feedback you might have.
For questions, comments, and other feedback, please click here.

Reporting organization
Fuyo General Lease Co., Ltd. and its 52 consolidated subsidiaries and 8 aﬃliated companies

Governance andManagemnet
Each Group
Company's
Environmental
and Social
initiatives
External
Evaluation

Reporting period
Fiscal 2019 (April 1, 2019 to March 31, 2020)⋆⋆

Social Report

Some reports include reports from outside the reporting period.

Editorial Policy
Independent
assurance

Update time
September 2020 (previous information was updated in October 2019)⋆⋆ The English version was updated in December 2020.

Reference guidelines
In preparing this report, we have referred to the Global Reporting Initiative (GRI), GRI Standards,
Ministry of the Environment's Environmental Reporting Guidelines 2018, and Japan Standards
Association's ISO26000: 2010 Social Responsibility Guidance.

219

For inquiries and comments regarding the CSR activities of Fuyo Lease Group,
please contact:
Fuyo General Lease Co., Ltd.
Creating Shared Value Promotion Oﬃce
TEL

+81-3-5275-8809

We welcome any questions, comments, impressions, and other feedback you might have.

Contact us here

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CSR
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