S U S TA I N A B I L I T Y
D ATA B O O K

2 020

April 1, 2020–March 31, 2021

SUSTAINABILITY DATA BOOK 2020

Editorial Policy

Positioning of Sustainability Data Book
Tokyo Century discloses information on its values and strengths and on the sustainability initiatives that contribute to ongoing
improvements in corporate value through its integrated reports and other materials and venues. Through these means, we hope tofacilitate a deeper understanding among stakeholders.
Sustainability Data Book 2020 consolidates the environmental, social, and governance (ESG) information disclosed via our
integrated reports, website, and other venues. Through this approach, we aimed to develop a data book that catalogs information
based on ESG areas to be used as a reference for stakeholders, particularly those with high levels of interest in ESG investment.
Please also consult our integrated reports and website.
Furthermore, we hope to make our sustainability data books easier to understand by incorporating reader feedback in order to
evolve these data books into more effective communication tools for engagement with stakeholders.

Scope of Reporting

Scope of Data
Collection

In principle, this data book includes data from Tokyo Century Corporation and its consolidated subsidiaries.
Should certain data pertain to Tokyo Century Corporation on a non-consolidated basis or a different scope,
notification will be provided.

Report Period

April 1, 2020–March 31, 2021 (Information on some activities from outside of this period is included.)

Publication

December 2021

Independent Practitionerʼs Assurance
To ensure the reliability of its environmental performance information, the Company has received independent practitioner's assurance
from Deloitte Tohmatsu Sustainability Co., Ltd., with regard to Scope 1, Scope 2, and Scope 3 (categories 1, 13, and 15) greenhousegas emissions as well as for the annual electricity generation volumes and CO2 emissions reductions associated with the solar power
generation business of Kyocera TCL Solar LLC (see Independent Practitioner's Assurance on pages 2 and 3 for more information).

LegendEMS: Eight companies applicable under Tokyo Century’s environmental management system(Tokyo Century Corporation; TRY Corporation; TC Agency Corporation; TC Business Service Corporation; TC Business Experts Corporation;
TC Property Solutions Corporation; S.D.L. Co., Ltd.; and Fujitsu Leasing Co., Ltd.)TC: Tokyo Century Corporation (non-consolidated)

Gr: 51 Tokyo Century Group companies(38 domestic companies and 13 overseas companies): Items for which Independent Practitioner's Assurance has been received− 01 −SUSTAINABILITY DATA BOOK 2020

Independent Practitionerʼs Assurance

To ensure the reliability of its environmental performance information, the Company has received independent practitioner's assurance
from Deloitte Tohmatsu Sustainability Co., Ltd., with regard to Scope 1, Scope 2, and Scope 3 (categories 1, 13, and 15) greenhousegas emissions as well as for the annual electricity generation volumes and CO2 emissions reductions associated with the solar power
generation business of Kyocera TCL Solar LLC.

Independent Practitionerʼs Assurance Report

TRANSLATION

Independent Practitioner s Assurance Report
July 28, 2021

Mr. Makoto Nogami,
President & CEO, Representative Director,
Tokyo Century Corporation.

Masahiko Sugiyama
Representative Director
Deloitte Tohmatsu Sustainability Co., Ltd.
3-2-3, Marunouchi, Chiyoda-ku, Tokyo

We have undertaken a limited assurance engagement of the environmental performance data indicated withfor theyear ended March 31, 2021
Environmental Quantitative Information ) included in
SUSTAINABILITY
Tokyo Century Corporation
DATA BOOK 2020
The Compa
Responsibility
The Company is responsible for the preparation of the Environmental Quantitative Information in accordance withthe calculation and reporting standard adopted by the Company (the Report P.3). Greenhouse gas quantification is
subject to inherent uncertainty for reasons such as incomplete scientific knowledge used to determine emissions
factors and numerical data needed to combine emissions of different gases.
Our Independence and Quality Control
We have complied with the independence and other ethical requirements of the Code of Ethics for Professional
Accountants issued by the International Ethics Standards Board for Accountants, which is founded on fundamental
principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior.
We apply International Standard on Quality Control 1, Quality Control for Firms that Perform Audits and Reviews ofFinancial Statements, and Other Assurance and Related Services Engagements, and accordingly maintain acomprehensive system of quality control including documented policies and procedures regarding compliance withethical requirements, professional standards and applicable legal and regulatory requirements.
Our Responsibility
Our responsibility is to express a limited assurance conclusion on the Environmental Quantitative Information basedon the procedures we have performed and the evidence we have obtained. We conducted our limited assurance
engagement in accordance with the International Standard on Assurance Engagement
3000, Assurance
Engagements Other than Audits or Reviews of Historical Financial Information, issued by the International Auditing
and Assurance Standards Board
3410, Assurance Engagements on Greenhouse Gas Statements,
issued by the IAASB and the Practical Guideline for the Assurance of Sustainability Information, issued by theJapanese Association of Assurance Organizations for Sustainability Information.
The procedures we performed were based on our professional judgment and included inquiries, observation ofprocesses performed, inspection of documents, analytical procedures, evaluating the appropriateness of quantification
methods and reporting policies, and agreeing or reconciling with underlying records. These procedures also included
the following:
Evaluating
d been consistently applied.
However, our procedures did not include testing the data on which the estimates are based or reperforming theestimates.
Performing interviews of responsible persons and inspecting documentary evidence to assess the completenessof the data, data collection methods, source data and relevant assumptions applicable to the sites.
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent
than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance
engagement is substantially lower than the assurance that would have been obtained had we performed a reasonableassurance engagement.
Limited Assurance Conclusion
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention
that causes us to believe that the Environmental Quantitative Information is not prepared, in all material respects, inaccordance with the calculation and reporting standard adopted by the Company.
The above repr
the Japanese language.

report issued in
Member of
Deloitte Touche Tohmatsu Limited− 02 −

Calculation Standards
Assured Items

Fiscal 2020 Scope and Calculation Methods

Scope of Data Collection Tokyo Century Corporation and major Group companies (51 companies)

Scope 1 greenhousegas emissions

Domestic companies (38): Tokyo Century Corporation; TRY Corporation; TC Agency Corporation; TC Business
Service Corporation; TC Business Experts Corporation; TC Property Solutions Corporation; S.D.L. Co., Ltd.; Fujitsu
Leasing Co., Ltd.; 21 group companies of Nippon Rent-A-Car Service, Inc.; four group companies of Shinko Real
Estate Co., Ltd.; Nippon Car Solutions Co., Ltd.; Orico Auto Leasing Co., Ltd.: Orico Business Leasing Co., Ltd.; IHI
Finance Support Corporation; and ITEC Leasing Co., Ltd.
Overseas companies (13): Tokyo Century Leasing China Corporation; Tokyo Century Factoring China Corporation;
Tokyo Century Leasing (Singapore) Pte. Ltd.; Tokyo Century Capital (Malaysia) Sdn. Bhd.; PT. Century Tokyo
Leasing Indonesia; TISCO Tokyo Leasing Co., Ltd.; TC Car Solutions (Thailand) Co., Ltd.; HTC Leasing Co., Ltd.; CSI
Leasing, Inc.; EPC Inc.; Tokyo Century (USA) Inc.; AP Equipment Financing Inc.; and Aviation Capital Group LLC
Applicable emissions: Greenhouse gas emissions from energy use

Calculation Method
Scope 2 greenhousegas emissions

Scope 1: Fuel use volume × CO2 emission factor*1*1 List of Calculation Methods and Emissions Factors for Calculation, Reporting and Announcement Systems specified in the Act on Promotion of
Global Warming Countermeasures

Scope 2: Electricity use volume × CO2 emission factor*2*2 Japan: List of Emissions Factors by Electric Power Utility specified in the Act on Promotion of Global Warming Countermeasures
United States: U.S. Average (2019) coefficient from Environmental Protection Agency’s Emissions & Generation Resource Integrated Database
Other countries: Country-specific emission factors for most recent fiscal year from IGES Grid Emissions Factors

Scope 3 greenhousegas emissions
Category 1—Purchased
goods and services

Scope of Data Collection Tokyo Century Corporation
Calculation Method

Lease property acquisition costs × Emission basic unit based on industry tables*3*3

Database of emission basic unit for calculating organizational greenhouse gases across the supply chain provided by the Ministry of theEnvironment (Ver. 3.1)

Scope of Data Collection Tokyo Century Corporation

Applicable leased items: Aircraft, computers, office equipment

Scope 3 greenhousegas emissions
Category 13—Downstream
leased assets

Calculation Method

Aircraft: Operation time × Per-hour fuel consumption × CO2 emission factor*4*4 List of Calculation Methods and Emissions Factors for Calculation, Reporting and Announcement Systems specified in the Act on Promotion of
Global Warming Countermeasures

Computers and office equipment: Energy consumption of high-representation equipment × Estimated annual
operating time × CO2 emission factor*5*5 Fiscal 2020 substitution values from List of Emissions Factors by Electric Power Utility specified in the Act on Promotion of Global WarmingCountermeasures

Scope 3 greenhouse gas

Scope of Data Collection Tokyo Century Corporation

Applicable investments: Policy-holding sharesemissionsCategory 15—Investments

Calculation Method

CO2 emissions of cross-shareholding counterparty × Ownership ratio (as disclosed by CDP)

Annual electricity
generation volumes andCO2 emissions reductions
from solar power
generation business ofKyocera TCL Solar LLC

Scope of Data Collection Solar power generation facilities of Kyocera TCL Solar LLC
Calculation Method

Annual generation volume: Total annual generation volume (transmission basis) for all solar power generation
facilities
CO2 emissions reductions: Annual solar power generation volume (transmission basis) × CO2 emission factor*6*6 417.5g-CO2/kWh (arrived at by subtracting figure of 45.5g-CO2/kWh for crystalline silicon solar cells [solar power generation system electricity
consumption] from figure of 463g-CO2/kWh for per-generation CO2 emissions from preliminary greenhouse gas emissions figures released by
the Ministry of the Environment in fiscal 2018 as described in CO2 reduction standards in fiscal 2020 Japan Photovoltaic Energy Association
guidelines)− 03 −SUSTAINABILITY DATA BOOK 2020

Contents

Editorial Policy01

Independent Practitionerʼs Assurance02

Sustainability
Corporate Information

05

Financial Information

06

Sustainability Philosophy and Policies

07

New Fourth Medium-Term Management Plan

17

Environmental
Environmental Policies

18

Environmental Performance

21

Climate Change Response Strategy

23

Environmental Market Opportunities

25

SocialDiversity26

Human Resource Utilization

28

Human Rights Initiatives

31

Social Contributions

32

Human Resource Data

33

Stakeholder Engagement

35

GovernanceCorporate Governance36

Risk Management

41

Compliance

43

Information Security

47

Personal Information Protection

49

OthersExternal Evaluations

52

Participation in External Initiatives

53− 04 −SUSTAINABILITY DATA BOOK 2020

Sustainability

Corporate Information
Company Profile
Company nameTokyo Century Corporation

Business activities

Equipment leasing, mobility and fleet management, specialty financing, international business
operations

Head office

FUJISOFT Bldg., 3 Kanda-neribeicho, Chiyoda-ku, Tokyo 101-0022, JapanFoundedJuly 1, 1969

Company representatives

Shunichi Asada, Chairman
Makoto Nogami, President & CEO
Masataka Yukiya, Deputy President

Capital¥81,129 million

Stock listing (securities code)

Tokyo Stock Exchange, First Section (8439)

Number of subsidiaries and affiliates

396 consolidated subsidiaries, 36 affiliates (as of March 31, 2021)

Global network coverage

More than 30 countries and regions

Operating Segments
Equipment Leasing

Leasing and finance (moneylending and investment) including ancillary services and otherbusinesses dealing with information and communications equipment, office equipment, industrial
machinery, transportation equipment, and equipment for commercial and service industries

Mobility & Fleet Management

Automobile leasing for corporate customers and individuals, car rental and car-sharing
businesses, etc.

Specialty Financing

Leasing and finance (moneylending and investment) including ancillary services and otherbusinesses focusing on product fields, such as shipping, aviation, real estate, and theenvironment and energy, in Japan and overseas

International BusinessLeasing and finance (moneylending and investment) including ancillary services and fleet
services businesses, among others, mainly in Asia, North, Central, and South America

Operating Segment

Number of Employees (Consolidated)(As of March 31, 2021)

686

(130)

Mobility & Fleet Management

3,574(3,379)Specialty Financing

1,100(1,450)International Business

1,824

(9)

Others58(20)

Corporate (shared)

196

(26)

7,438

(5,014)Equipment Leasing

Total

Note: N umber of employees represents full-time employees. Figures in parentheses represent the average number of temporary
employees over the respective fiscal year and are not included in the number of full-time employees.

− 05 −

Financial Information
1. Consolidated Financial Results
Item

Unit

Fiscal 2018

Fiscal 2019

Fiscal 2020

Revenues

Millions of yen

1,067,612

1,166,599

1,200,184

Operating income

Millions of yen

77,721

88,346

77,154

Ordinary income

Millions of yen

86,337

91,126

78,105

Net income attributable to owners of parent

Millions of yen

52,27156,30349,145

Net income per shareYen

494.93524.96402.57Return on equity

%

12.7

11.5

8.7

Return on assets

%

2.2

1.9

1.4

Operating income to revenues

%

7.3

7.6

6.4

2. Consolidated Financial Position
Item

Unit

Fiscal 2018

Fiscal 2019

Fiscal 2020

Total assets

Millions of yen

4,086,513

5,608,556

5,602,897

Net assets

Millions of yen

524,372

660,145688,345

Shareholders’ equity ratio

%

10.4

9.9

10.2

Net assets per shareYen

4,039.68

4,543.43

4,670.45

3. Consolidated Cash Flows
Item

Unit

Fiscal 2018

Fiscal 2019

Fiscal 2020

Net cash provided by (used in) operating activities

Millions of yen(59,154)(50,664)

51,331

Net cash provided by (used in) investing activities

Millions of yen(123,947)(315,177)(97,405)

Net cash provided by (used in) financing activities

Millions of yen

189,035

523,062

18,946

Cash and cash equivalents at end of year

Millions of yen

89,727250,096

216,901

4. Segment Information (Fiscal 2020)

Millions of yen

Total in consolidated
Adjustments inconsolidated
financialfinancial statements
statements

Equipment
Leasing

Mobility & Fleet
Management

Specialty
Financing

International
Business

Revenues

525,286

338,874

234,131100,384

1,507−

1,200,184

Segment income (loss)

30,434

11,451

38,33010,681

350(13,143)

78,105

1,489,130

629,535

2,184,741

483,108

13,938802,442

5,602,897

2.1%

1.8%

1.8%

2.1%

−

−

1.4%

Item

Segment assets
Return on assets** Return on assets = Ordinary income ÷ ((Segment assets at beginning of year + Segment assets at end of year) ÷ 2)

− 06 −

OthersSustainability Philosophy and Policies
Management Philosophy

The Tokyo Century Group will work alongside customers
in pursuit of their growth as a highly specialized and unique financial services company
and will contribute to the creation of an environmentally sound,sustainable economy and society.

Management Policy

We will provide the best products and services around the world to contributeto the success of our customers’ businesses while pursuing all possibilities
by collaborating with customers and uniting the overall strengths of the Group.

We will strive to raise our corporate value over the medium
to long term by pioneering new business fields and realizing sustainable growth.

We will cultivate a corporate culture that allows diverse human resources
to fully demonstrate their skills and personalities, andwe will build a company in which all officers and employees can hone their expertiseand experience growth as well as a sense of pride.

We will always be mindful of our social responsibility
as a corporation and conduct our business activities with vigor
and sincerity as we fulfill our role of creating a sustainable economy and society.

Corporate Slogan

Solutions to your Pursuits− 07 −

Corporate Code of Conduct
1.

Dedication to Customers
The Tokyo Century Group is dedicated to the success of its customers’ businesses by accurately responding to their needs withquality products and services and thereby forging solid relationships of trust.

2.

Sound and Fair Corporate Activities
The Tokyo Century Group engages in sound and fair corporate activities by complying with all laws, regulations, and rules andconforming to social norms.

3.

Corporate Responsibility and Contribution to Society
The Tokyo Century Group seeks to fulfill its social responsibilities through honest business management and contributes to society
by meeting public expectations as an upstanding corporate citizen.

4.

Respect for Human Rights
The Tokyo Century Group respects the human rights of all people and promotes diversity to nurture a corporate culture thatencourages personnel with diverse characteristics to thrive.

5.

Preservation of the Environment
The Tokyo Century Group seeks to preserve the environment in all areas of its business activities by endeavoring to create
an environmentally sound, sustainable economy and society.

6.

Response to Global Standards
The Tokyo Century Group acts from a global perspective that is highly transparent and sincere, by respecting the cultures andcustoms and complying with the laws, regulations, and relevant systems of the countries and regions in which it operates.

Our Action Guidelines

1.

We will continue creating solutions that earn customer trust and recognition.
We will strive to resolve the issues faced by our customers by harnessing our high level of expertise and foresight to provide optimal
products and services that earn their trust and recognition.

2.

We will act in compliance with laws and regulations and in accordance with our social conscience.
We will comply with laws and regulations to conduct fair and proper business activities, and we will act on our own initiative inaccordance with our social conscience as dignified individuals. We will distinguish between the Company’s interests and our
individual interests and will strictly refrain from actions that impair the interests of the Company.

3.

We will respect human rights and human dignity and create a rewarding working environment.
We will respect our mutual human rights and human dignity and strive to create a vibrant, rewarding working environment wherediscrimination and harassment have no place.

4.

We will stringently manage personal information and customer information.
We will stringently manage the personal information and customer information we obtain through our operations to prevent bothleakage outside the Company and use for unintended purposes.

5.

We will pursue activities to preserve the environment.
We will maintain a high awareness of environmental issues and actively work to preserve the environment, which includes actions toprevent global warming and promote energy conservation.

6.

We will avoid contact with antisocial forces and criminal organizations.
We will act decisively to avoid any contact with antisocial forces that obstruct the course of social order and safety or with criminalorganizations inside or outside Japan that hamper legitimate economic activity.

− 08 −

Sustainability Management Policy
Tokyo Century’s commitment to sustainability is driven by its pursuit of further sustainable development and higher corporate value along withstakeholders as a financial services company, and it thereby contributes to the creation of an environmentally sound, sustainable economy andsociety. In promoting sustainability management, we envision, with due consideration of the United Nations Sustainable Development Goals(SDGs), a society 10 to 20 years into the future and then take a backcasting approach toward creating financial services that will meet theneeds of that time.

Promotion of Sustainability Management
Tokyo Century has defined its materiality (key issues), which isitself based on the SDGs, and is advancing initiatives based on thismateriality for the purpose of promoting sustainability management toaddress social issues through its business activities. We thereby aim to
improve corporate value while ensuring sustainable growth for both theTokyo Century Group and the greater society.
A materiality road map has been utilized to indicate the degree ofmateriality of each key issue to stakeholders. The degree of materiality
was determined based on the Company’s business characteristics aswell as by referencing major ESG evaluation and non-financial disclosure
standards and benchmark companies and by analyzing these standards
and companies in relation to the SDGs.** Major ESG evaluation and non-financial disclosure standards referenced indetermining the degree of materiality of key issues to stakeholders:
Dow Jones Sustainability Index, FTSE4Good Index, MSCI Index, and SASB

− 09 −

Tokyo Century’s Materiality (Key Issues) Linked to the SDGs
Materiality

Priority materiality initiatives

Initiative examples

Contribution to
low-carbon society

Contribute to widespread use of clean energy
through climate change response
and environmental efforts

Renewable energy business including
solar power generation, popularizationof electric vehicles via leasing

Creation of new businesses
driven by technical innovation

Create new businesses by integrating newtechnologies into financial services
and contribute to the digital economy

Subscription services, fintech, newrental car services utilizing
smartphone apps

Contribution to social
infrastructure development

Respond to advances in global mobility services andcooperate with local communities to contributeto social infrastructure development

Regional revitalization through rental carsand car sharing, Drive Doctor telematics
driving control service that supports safe
driving, and hotel business

Sustainable resource use

Contribute to development of a circular economy
focused on the value of assets

IT equipment leasing, refurbishing,aircraft life-cycle management, andautomobile leasing

Enhancement of work
environment, leading tostrengthening of humanresources

Promote human resource development, diversity,and workstyle reforms that improve job satisfaction
and foster a sense of personal growth

Introduction and implementation of
telecommuting, employee awarenesssurveys, 360° evaluations

Shared platforms

SDGs

Utilize diverse partnerships to create new value

Structure for Promoting Sustainability Management

The Sustainability Committee (established in April 2018) is responsible for deliberations related to sustainability management at Tokyo
Century. This committee meets twice a year, in principle. Important matters deliberated on by the Sustainability Committee are reported to anddiscussed by the Management Meeting and the Board of Directors to allow for oversight by the Board of Directors. The Sustainability Committee
is chaired by the president of the Corporate Planning Unit, and this committee promotes initiatives positioning sustainability as an importantmanagement issue. The Sustainability Management Division, which is responsible for planning, promoting, and overseeing Companywide
sustainability initiatives, functions as the secretariat for the Sustainability Committee.
Sustainability management strategies furnish a core framework for the New Fourth Medium-Term Management Plan. Tokyo Century isadvancing initiatives based on its materiality (key issues), which is itself based on the SDGs, for the purpose of promoting sustainability
management to address social issues through its business activities. We thereby aim to improve corporate value while ensuring sustainablegrowth for both the Tokyo Century Group and the greater society. The progress of these initiatives is assessed through a PDCA (plan–do–check–act) cycle.
Means of entrenching understanding regarding sustainability management include communication documents (sustainability
communication) and training as well as project surveys, materiality notifications contained in agendas for meetings of the Management Meetingand the Board of Directors, and award systems. Through these means, we aim to improve awareness regarding materiality initiatives among all
employees and officers.

− 10 −

Materiality KPIs
Tokyo Century has established key performance indicators (KPIs) related to its materiality in order to promote sustainability management.
The following pages contain information on the principal KPIs defined for each materiality (key issue).
(Some KPIs overlap with the ESG-related KPIs described on page 18 and thereafter.)

Contribution to Low-Carbon Society
Tokyo Century recognizes that combating climate change is an important management priority. Our efforts to contribute to a low-carbon society
include environmental activities in offices, solar power and other renewable energy businesses, the promotion of the Financing Program for Joint
Crediting Mechanism (JCM) Model Projects for reducing greenhouse gas emissions through collaboration with developing countries and sharing
emissions reduction benefits between involved countries, and other efforts for addressing climate change through our business activities.
Moreover, Tokyo Century announced its endorsement of the recommendations of the Task Force on Climate-related Financial Disclosures(TCFD) in April 2021. In addition, we identified climate change risks and opportunities under multiple scenarios and conducted qualitative andquantitative business impact assessments in line with TCFD recommendations. Information with this regard is disclosed on our corporate website.** Response to Climate Change and TCFD Endorsement https://www.tokyocentury.co.jp/en/csr/environment/tcfd.html

KPI
Reduction of electricity use(environmental contributions throughoffice activities)

MetricUnit

Targetyear

TargetFiscal 2018

Fiscal 2019

Fiscal 2020

Electric use

kWhFiscal2021

Less than 1,650,000 kWh

1,611,715

1,598,069

1,578,546

t-CO2

Fiscal2021

Less than 776 t-CO2

825

818

770

Less than 69,000 L

78,20369,03843,768CO2 emissions
Gasoline use

L

Reduction of gasoline use(environmental contributions throughoffice activities)

Fiscal2021

CO2 emissions

t-CO2

Fiscal2021

Less than 161 t-CO2

181

160

102

km/L

Fiscal2021

Less than 13.5 km/L

13.9

13.9

14.3

Reduction of paper use(environmental contributions throughoffice activities)

Paper use
(A4 size
equivalent)Thousandsof sheets

Fiscal2021

Less than 13 million sheets

15,402

13,832

9,262

Reduction of head office electricity
use (intensity target)

Per-areaelectricity use

kWh/m2

Fiscal2030

Less than 70.65 kWh/m2(22% reduction incomparison with FY2009)

70.25

65.28

60.56

Reduction of annual CO2 emissions
associated with head office electricity
use (intensity target)

CO2 emissions
from per-area
electricity use

t-CO2/m2

Fiscal2030

0.042 t-CO2/m2(22% reduction incomparison with FY2009)

0.036

0.033

0.030

Annual generation
value

MWh

Fiscal2021

Less than 427,000 MWh

301,252

359,665

414,047

CO2 emissions (comparedwith standard thermal
power generation)

t-CO2

Fiscal2021

Less than 170,586 t-CO2

94,744

162,029

172,864

Rate of electrified vehicle use(EVs, FCEVs, PHEVs, HVs)

Mobility and fleet
management*2

%

−

−

14.9

17.1

18.8

Rate of fuel-efficient aircraft use*3

Ratio of fuelefficient aircraft
assets*4

%

−

−

22

33

41

Projected aggregate greenhousegas emissions reductions fromJCM Model Projects*5

Projected aggregate
greenhouse gas
emissions reductions

t-CO2

Fiscal2025

56,000t-CO2

17,81429,79534,547

Reduction of CO2 emissions throughsolar power businesses of three
consolidated subsidiaries*1

Fuel efficiency*1 Three consolidated subsidiaries: Kyocera TCL Solar LLC and two other solar power business companies*2 Mobility and fleet management: Nippon Car Solutions Co., Ltd.; Nippon Rent-A-Car Service, Inc.; and Orico Auto Leasing Co., Ltd.
*3 Fuel-efficient aircraft: A320neo, A321neo, A350, 737MAX, 747-8F, and 787*4 Ratio of fuel-efficient aircraft assets: Ratio of fuel-efficient aircraft to all aircraft (including those of Aviation Capital Group LLC)
*5 JCM Model Projects: Projects in which collaboration is pursued with developing countries to reduce greenhouse gas emissions and share the emissions reduction benefits
between involved countries− 11 −

Creation of New Businesses Driven by Technical Innovation
Tokyo Century seeks to create new businesses by integrating new technologies into financial services and to contribute to the digital economy
through collaboration with partner companies and investment in companies boasting promising technologies. In the Equipment Leasing
segment, where we possess a broad customer base and are developing numerous joint ventures together with prime partners, we arereinforcing our foundation for supporting the digital economy through investment in and a business alliance with Bplats, Inc., a provider ofcomprehensive subscription service business platforms, while also developing subscription service businesses. Meanwhile, in the Mobility &Fleet Management segment, where we develop a comprehensive range of industry-leading automotive businesses, Tokyo Century is co-creating
new businesses that promote digital transformation in the mobility field. For example, we have concluded a capital and business allianceagreement with Mobility Technologies Co., Ltd., which operates the GO taxi dispatch app covering the largest number of affiliated taxis in Japan.
Also, we are engaged in mobility-as-a-service (MaaS) and smart city businesses through a business alliance with major map solutions provider
ZENRIN CO., LTD., in which we combine the resources of this company with our own. In the Specialty Financing segment, which drives Tokyo
Century’s growth with highly specialized operations, we have concluded an investment contract with Germany’s Volocopter GmbH, a company
developing flying cars as a form of next-generation aerial mobility, and are advancing other Companywide initiatives aimed at creating new
businesses for the next era.
In December 2020, the DX Strategy Division was established within the Corporate Planning Unit to plan and promote Companywide digitaltransformation strategies. In addition, in March 2021 Tokyo Century became the first leasing-based financial services provider to be recognized
as a DX-certified operator advancing superior initiatives under the DX Certification system organized by the Ministry of Economy, Trade andIndustry (METI).
The Company is also focused on fostering a corporate culture in which employees feel empowered to boldly tackle new challenges without
fear of failure. For this purpose, we introduced the TC Biz Challenge Project, a new business proposal initiative, in fiscal 2020. Through thisproject, the Company offers its full support for promising business plans and implements frameworks for examining methods of commercializing
such plans. This project was shaped based on the results of employee awareness surveys and is thus anticipated to contribute to increased
employee engagement. In its first year, a total of 36 proposals were received through the TC Biz Challenge Project, and commercialization is
being pursued for those proposals that passed secondary screening.

KPI
Certification under METI’s DX Certification system*

Supplement
Certification achieved in March 2021

* Outline of the DX Certification System
The DX Certification system is an initiative implemented under the Act on Partial Revision of the Act on Facilitation of Information Processing, which came into
force on May 15, 2020. In line with the guidelines set by the Japanese government that present to companies ideal approaches for making use of strategic
systems in their business management and for creating such a system, an authority certifies companies engaging in outstanding efforts, if companies eligible forcertification file a request accordingly. Under the DX Certification system, beyond being poised to promote digital transformation, it is important that companies
have taken measures related to the fundamental items of management goals, strategies, performance, KPIs, and governance systems that are defined in thedigital governance code compiled by METI in November 2020.
Moreover, Tokyo Century was included in the Digital Transformation Stock Selection (DX Stocks) announced in June 2021. DX Stocks is a selection of Tokyo
Stock Exchange-listed companies that have established internal frameworks for promoting digital transformation aimed at improving corporate value and whichhave been successful in highly utilizing digital technologies. Between one and two companies are chosen for each industry. The Company has also been includedin the Competitive IT Strategy Company Stock Selection program—the predecessor of the DX Stocks program—in each of the seven years since its establishment in2015.

− 12 −

Contribution to Social Infrastructure Development
In the Mobility & Fleet Management segment, where we develop industry-leading automotive businesses, Tokyo Century provides mobilityrelated services through its auto leasing and car rental businesses. These services play a crucial role in contributing to social infrastructure
while also having material importance to supporting safety. Moreover, we are promoting the use of vehicles equipped with automated brakes
and other safety features in order to contribute to the achievement of target 3.6 —By 2020, halve the number of global deaths and injuries fromroad traffic accidents— of SDG Goal 3: Good health and well-being. In addition to these equipment-related initiatives, we are proactively offering
support through software-related initiatives, namely, safe driving lessons that utilize telematics systems.
In a business environment free of regulatory constraints, Tokyo Century is branching out from leasing and financing to develop and growunique business models based on the concept of “Finance × Services × Business Expertise” through co-creative partners. For example,
we recognize that the revitalization of local communities through the tourism industry is an important task as the depopulation of areas
outside of major urban centers becomes an increasingly serious social issue. With this regard, ANA InterContinental Beppu Resort & Spa,an establishment that Tokyo Century played a part in attracting, was opened in Beppu City, Oita Prefecture, in August 2019. This facility
garnered attention as Japan’s first InterContinental resort hotel and is functioning as a piece of social infrastructure that promotes tourism
and contributes to regional revitalization. Calling upon the expertise gained through this undertaking, we were able to conclude an operation
subcontracting agreement with InterContinental Hotels Group PLC, based on which we plan to open Hotel Indigo Karuizawa—located in
Karuizawa, a popular Japanese highland resort area—in spring 2022.
Tokyo Century is also involved in real estate operations in Tokyo. As part of the TOKYO TORCH redevelopment project taking place in frontof the Nihonbashi exit of Tokyo Station, the Company acquired a super luxury hotel and large-scale hall to be built in Torch Toward, a building
scheduled for completion in fiscal 2027, jointly with Mitsubishi Estate Co., Ltd. Together with the office section previously acquired by bothparties, these assets are expected to function as important parts of social infrastructure in this urban center.
Furthermore, we announced a business and capital alliance with Nippon Telegraph and Telephone Corporation (NTT) in February 2020.
The need for high-speed processing and collection of large quantities of data is growing on a global scale, stimulating a rise in data centers.
In response to this trend, we will advance social infrastructure business initiatives through our alliance with NTT as we seek to make othercontributions together with partners.

KPI

Applicable
companies*1

Unit

Number of vehicles equipped with telematics services

NCS, NRS, OAL

Number of safe driving lessons conducted using
telematics services*2

Ratio of rental cars equipped with safety features(automated brakes, etc.)

Fiscal 2018

Fiscal 2019

Fiscal 2020

Vehicles

54,32563,66867,757

Lessons

1,003

962

459

Participants

19,67919,212

7,095

%

80.0

90.3

94.3

NCS

NRS

*1 NCS: Nippon Car Solutions Co., Ltd.; NRS: Nippon Rent-A-Car Service, Inc.; OAL: Orico Auto Leasing Co., Ltd.
*2 The number of safe driving lessons declined substantially in fiscal 2020 in response to the COVID-19 pandemic, and this reduction led to a decrease in thenumber of participants.

− 13 −

Sustainable Resource Use
The leasing business Tokyo Century has developed since its founding is built on the 3Rs (reduce, reuse, and recycle), meaning that theCompany has been contributing to the realization of an environmentally sound, sustainable economy and society since its inception. Leasing
businesses necessarily involve assets, and focuses on the value of assets and on effectively utilizing these assets are thus of crucial
importance to such businesses. By further honing the propensity for judging the value of the assets we have refined throughout our history,
we look to broaden the scope of assets we handle to branch out from traditional financing and leasing to engage in life-cycle management
operations related to automobiles and aircraft. At the same time, we will work together with our partners to combine our specialties and areasof expertise to address social issues. In this manner, Tokyo Century will seek to evolve business models in fields where it can contribute to
the realization of an environmentally sound, sustainable economy and society in which it is possible to achieve economic growth while using
resources efficiently.
Information and communications equipment is a major offering of our leasing business. With this regard, data erasure is becoming an
increasingly important task for end-of-lease IT equipment. Tokyo Century boasts strength in data erasure as it has an affiliate that provides suchdata erasure services. In the United States, where there is strong demand for high-level data erasure services in compliance with all necessary
requirements, U.S.-based IT leasing subsidiary CSI Leasing, Inc., which offers high-quality IT asset disposition (ITAD) services, is a major sourceof competitiveness for the Tokyo Century Group. CSI Leasing develops its ITAD service business out of its global network of 17 bases, centeredon eight service bases located across the United States, and it has thereby been able to respond to rising needs for worldwide standard
services from global companies. In fiscal 2020, CSI Leasing posted ordinary income more than three times the level seen in fiscal 2015, when
Tokyo Century commenced investment.
In the aviation business, the conversion of major U.S. aircraft leasing company Aviation Capital Group LLC into a subsidiary in December
2019 made it possible for the Tokyo Century Group to engage in self-driven forays into the operating lease business for new and other aircraft.
Going forward, we will continue to pursue intra-group synergies capitalizing on the strengths of the Group’s aircraft value chain, which includes
such companies as aircraft parts and service business operator GA Telesis, LLC, and allows for strategic aircraft life-cycle management.
Tokyo Century’s auto businesses contribute to sustainable resource use through a value chain that encompasses maintenance factories.
In this area, Nippon Rent-A-Car Service, Inc., offers car rental services that deliver improved customer convenience as a business forcontributing to sharing economies, as exemplified in the trend toward transitioning from ownership to use, amid the rising focus on realizing anenvironmentally sound, sustainable economy and society.

MetricUnit

TargetYear

TargetRefurbishment businessAnnual salesof secondhand
computers

Computers

Fiscal2023

More than 250,000
computers

ITAD data erasure services(CSI Leasing subsidiary Executive
Personal Computers, Inc., of the UnitedStates)Number of units
processed withITAD services

Units

−

Promotion of car rental services(Nippon Rent-A-Car Service, Inc.)

Number of rental
cars

Cars

−

KPI

− 14 −

Fiscal 2018

Fiscal 2019

Fiscal 2020

459,341

479,625

405,055−

278,100

437,826

405,375−

34,081

37,83233,098

Enhancement of Work Environment, Leading to Strengthening of Human ResourcesTokyo Century continues to invest in the human resources who support its growth and to develop workplace environments in which all officers
and employees feel empowered in their work. These undertakings will be imperative to ensuring that the Company can keeping growing andevolving in the current era of rapid change.
We conduct employee awareness surveys to help focus our efforts to develop workplace environments in which all employees respect one
another and are able to fully exercise their talents. The results of these surveys are analyzed to identify issues and shape future initiatives, andthis information is incorporated into officer training and discussed on an ongoing basis by the Management Meeting and the Board of Directors
so that identified issues can be addressed as top management priorities. Various measures for improving employee engagement have been
implemented based on these surveys. For example, we have introduced an hourly paid leave program and a teleworking system along with the
Career Challenge Program internal recruitment system, which is designed to provide employees with an opportunity to chart their own careercourses.
Moreover, the Diversity Promotion Office and the Career Design Office have been established within the Personnel Division to guide mediumto long-term growth initiatives. Under the guidance of these organizations, we are fostering a corporate culture in which diverse employees
are able to proactively exercise their talents and individuality through efforts such as recruiting and developing diverse human resources andpromoting diversity and inclusion.

KPI

Average monthly overtime hours

Unit

Hours

Targetyear−

Target−Targetemployees

Fiscal 2018

Fiscal 2019

Fiscal 2020

Career track
employees

12.0

15.2

14.9

Administrative
employees

2.4

2.7

3.2

Total

8.3

10.2

10.2

Annual paid leave acquisition rate%

Fiscal2023

At least 70%

−

77.3

76.3

72.7

Childcare leave acquisition rate%

Fiscal
2023

Rate of childcareacquisition by male
employees
100%

Women

100.0

100.0

100.0

Men

100.0

100.0

100.0

Ratio of employees with disabilities

%

−

−

−

2.42

2.93

2.61

Ratio of women among new graduate
hires

%

Fiscal2023

At least 30%

−

45.8

50.0

30.8

Ratio of women in management
positions%Fiscal2023

At least 10%

−

7.2

7.9

9.1

Ratio of women in section leader
positions

%

−

−

−

43.9

48.8

50.7

Ratio of employees remaining at theCompany for 10 years or more(by gender)

%

Women

60.3

57.4

48.6

−

−
Men

61.4

60.3

53.7

Employee turnover rate

%

Women

1.2

1.2

0.7

Men

4.3

4.9

3.7

−

−

− 15 −

Shared Platforms
Creation of New Value through Diverse Partnerships
Exercise of Management Philosophy

2009Tokyo Century has continued to support the ambitions ofvarious companies and businesses while growing together
with these partners.
● Converted IHI Finance Support Corporation
into a consolidated subsidiary● Century Tokyo Leasing Corporation establishedthrough a merger between Century Leasing System,
Inc., and Tokyo Leasing Co., Ltd.

2010

2011

● Conducted merger between Tokyo Auto Leasing
Co., Ltd., and Nippon Car Solutions Co., Ltd.,and converted Nippon Car Solutions into a
consolidated subsidiary2012● Acquired shares in GA Telesis, LLC, and converted it into an
equity-method affiliate● Established solar power generation company Kyocera TCL Solar
LLC with Kyocera Corporation as a joint venture● Converted Nippon Rent-A-Car Service, Inc., into
a consolidated subsidiary

2013

2014

● Acquired shares in a leasing subsidiary of Bank of the● Converted CSI Leasing, Inc., a leading U.S.-

based independent leasing company, into an
equity-method affiliate before converting it into
a wholly owned subsidiary in 2016

● Established Orico BusinessLeasing Co., Ltd., which
specializes in vendor leasing,with Orient Corporation● Converted Aviation CapitalGroup LLC, a major U.S.-based
commercial aircraft lessor,
into an equity-method affiliate
before converting it into awholly owned subsidiary in
2019Philippine Islands, a leading bank in the Philippines,
and converted it into an equity-method affiliate before
converting it into a consolidated subsidiary in 2020

2015

2016

2017

2018

● Changed corporate name toTokyo Century● Converted Bplats, Inc., into
an equity-method affiliate● Acquired shares in Shinko
Real Estate, Co., Ltd.,and converted it into a
consolidated subsidiary● Acquired shares in Amada Lease
Co., Ltd., and converted it into a
consolidated subsidiary2019● Acquired shares in U.S.-basedleasing company AP Equipment
Financing, Inc., and converted it
into a wholly owned subsidiary● Concluded a capital andbusiness alliance agreementwith Nippon Telegraph andTelephone Corporation (NTT)コーポレートシンボル● Acquired shares in ITOCHU

Aタイプ（英語版）

データは、アイソレーションの枠（透明）を設定しています。

Construction Machinery andchanged the name to ITOCHUTC Construction Machinery2020● Established NTT TC Leasing
Co., Ltd., as a spin-off ofthe leasing and financing
operations of NTT FINANCECORPORATION
カラー● Acquired shares in NITTSU Lease& Finance Co., Ltd., and converted
it into an equity-method affiliate

2021
モノクロ

− 16 −

New Fourth Medium-Term Management Plan

Information on New Fourth Medium-Term Management Plan:
https://www.tokyocentury.co.jp/download/pdf/en/news/200206_newsrelease_en.pdf.

Principal Measures by Operating Segment
Equipment Leasing

Mobility & Fleet Management

Operating Segment

Operating Segment

Boost value of leasing business andadapt to digital transformation

View changing times as an opportunity to
pursue mobility services that go a step further

Boost value of leasing business and accelerate business co-creation
Create new business domains in response to digital transformation
Optimize organization and improve operational efficiency to suitchanges in business styleEnhance customer value and brand power with unrivaled quality of service
Pursue channel and segment strategies aimed at expanding business baseTake innovative initiatives for a new era
Strengthen Group management systems to support business expansion

Specialty Financing

International Business

Operating Segment

Operating Segment

Further refine businesses with expertiseand creativity

Respond to expansion of the digital economy
and the mobility revolution

Maximize the value chain in collaboration with partners
Develop new businesses in response to changes in the operating environment
Build organizational platform and infrastructure in accordance with global
standards
Perform post-merger integration and establish governance systems at
acquired companies

Collaborate with leading companies through alliance strategies
Pursue broader and deeper business related to fintech and mobility

Strengthening of the Management Base: Key Themes and Policies
Strengthen consolidated management

Drive business transformation with digital technology

Raise level of consolidated management on a global basis
Manage sustainably to help strengthen responsiveness to
the SDGs and ESG issues
Continue examination of operating systems to create
systems that contribute to autonomous management ofeach business domain
Generate creative ideas and new businesses

Enhance and reinforce the financial baseHarness digital technology to enhance corporate value andbolster competitiveness
Drastically revise existing systems to accelerate digital
innovation
Develop systems aimed at promoting digital innovation

Enhance risk management systems
Strengthen risk management in response to diversificationof business investments and other elements of risk profile
Build risk control framework aimed at efficient allocation ofmanagement resources
Respond to social need for information security, diverse
crisis management, quality control, etc.

Stabilize fund procurement
Expand foreign currency procurement capabilities
Raise level of asset liability management

Emphasize diversity in human resource development
and workstyle reforms

Strengthen corporate governance

Secure diverse human resources (skilled personnel requiredby each operating segment or operation headquarters)
Develop global human resources
Review and reform personnel policies to suit thecharacteristics of operating segments and workstyle reforms

Strengthen management systems contributing toenhancement of corporate value
Strengthen Group governance
Strengthen efforts to improve effectiveness of Board of
Directors

Management Indicators
New Fourth Medium-Term Management Plan
(Targets for fiscal 2022)

Ordinary income¥130.0 billion

Net income attributable to owners of parent¥80.0 billion

Shareholders’ equity ratio

12%

Return on equity

12%− 17 −SUSTAINABILITY DATA BOOK 2020

Environmental

Environmental Policies

Basic Environmental Policy
The Tokyo Century Group recognizes that addressing environmental issues is a social
responsibility and will seek to contribute to the creation of an environmentally sound,sustainable economy and society by acting with due consideration for environmental issues,
such as preventing environmental pollution, reducing greenhouse gas emissions, mitigating andadapting to the impacts of climate change, and preserving biodiversity and ecosystems in allareas of its operating activities.
1. Global Environmental Preservation through BusinessWe will strive to contribute to reducing environmental impacts, preserving forests, marine
ecosystems, and water resources, and preserving the global environment through ouroperating activities by developing and providing environmentally sound products andservices around the world.

Policies
related tothe environment

Basic
Environmental
Policy2. Contribution to Creating an Environmentally Sound, Sustainable Economy and Society
From the standpoint of life-cycle management, we will seek to create an environmentallysound, sustainable economy and society through our efforts for promoting waste reduction,
reuse and recycling, and renewable energy.
3. Promotion of Resource and Energy Conservation Activities
We recognize the environmental impact generated by our business activities, such as theuse of resources and energy, discharge of waste, and related activities, and promote actions
for conserving resources and energy.
4. Legal Compliance
We comply with environmental laws and regulations and environmental requirements agreed
to by the Tokyo Century Group.
5. Efforts for Continuous Improvement
We will seek to prevent environmental pollution and engage in environmental preservation
activities along with providing environmental education and ensuring its dissemination by
setting environmental goals and targets. Through the constant reviewing of the results ofthese activities, we strive to continuously improve our environmental management systemand enhance disclosure of environmental information.

Chief executive

President & CEO, Representative Director

Oversightorganization

Environmental Management Committee

Management
systemClimate changerelated oversightby the Board of
Directors

Tokyo Century takes steps to combat climate change through management reviews conducted
via an environmental management system based on ISO 14001. These reviews are used toevaluate environmental performance and provide guidance regarding future directives. In
addition, twice-annual meetings are convened for the Environmental Management Committee,
which is chaired by the president of the Risk Management Unit, who is also the environmental
oversight representative.
The Environmental Management Committee reports to the Management Meeting on theenvironmental activities implemented in a given fiscal year and receives evaluations of these
activities as well as guidance for future directives.
The Company’s governance system is designed so that important matters, such as theestablishment, revision, or abolition of the Basic Environmental Policy, are resolved after beingbrought to the attention of the Board of Directors for discussion.

− 18 −

The Tokyo Century Group recognizes that it has a social responsibility to help addressenvironmental issues. Accordingly, it has acquired ISO 14001 certification, the international
standard for environmental management systems, for the following companies (certification
was received from BSI Group Japan K.K.).

Scope of ISO 14001 Certification

Acquisition of ISO
14001 certification

ISO 14001 certification has been acquired for the following
Tokyo Century Group entities.
■ Tokyo Century Corporation(head office, Okachimachi office, Akihabara UDX office)■ TRY Corporation■ TC Agency Corporation■ Fujitsu Leasing Co., Ltd. (head office)In addition, the following two consolidated subsidiaries have received certification on an
individual basis.
■ Nippon Car Solutions Co., Ltd. (head office)■ Executive Personal Computers, Inc. (subsidiary of CSI Leasing, Inc., of the United States)

Scope of Application of Environmental Management System

Tokyo Century Corporation; TRY Corporation; TC Agency Corporation; TC Business Service
Corporation; TC Business Experts Corporation; TC Property Solutions Corporation; Fujitsu
Leasing Co., Ltd.; S.D.L. Co., Ltd.; and ITEC Leasing Co., Ltd.

Management
systemEnvironmental Management System
Board of Directors(Sustainability Committee)

Environmental
management
system promotion
framework

Sustainability Management
Division
Coordination

President(Management Meeting)(Internal environmental
management system audits)
Audit Unit

(Environmental manager)
President of the Risk
Management Unit

(Environmental Management
Committee)(Environmental Management Office)Risk Management Division(Persons in charge of environment)
Head of each Division and
Branch Office(Eco leaders)
Responsible Person of each
Division and Branch Office− 19 −

Environmental audits

Internal environmental audits of organizations at companies applicable under the
aforementioned environmental management system are performed to confirm that theiroperations are conducted in accordance with the stipulations of the environmental management
system. The fiscal 2020 audit found no nonconforming organizations.
Tokyo Century participates in the Japan Leasing Association’s plan for achieving a low-carbon
society and has set proprietary targets for contributing to the accomplishment of the Japan
Leasing Association’s long-term targets for fiscal 2030.

Management
systemEnvironmental
education

Long-Term Targets
Long-term quantitative
greenhouse gas
emissions reduction
targets(intensity targets)

1. Per head office floor space electricity use
Fiscal 2030: 70.65 kWh/m2 (22% reduction compared with fiscal 2009)
2. Annual CO2 emissions from per head office floor space electricity use
Fiscal 2030: 0.042 t-CO2/m2 (22% reduction compared with fiscal 2009)
Item

Unit

Fiscal 2018

Fiscal 2019

Fiscal 2020

Per head office floor space electricity use

2

kWh/m

70.25

65.28

60.56

Annual CO2 emissions from per head
office floor space electricity use

t-CO2/m2

0.036

0.033

0.030

• Environmental education is provided through e-learning programs for the purpose of raising environmental awareness at
Tokyo Century Corporation and Group companies.
• Since fiscal 2011, we have issued “eco news” three to four times a year. These newsletters were renamed Sustainability
Communication in January 2020. The newsletters have been used as means of communication regarding environmental
topics as well as concerning various sustainability topics pertaining to management strategies. The redesigned
sustainability newsletters are currently being distributed to Tokyo Century Corporation and to Group companies (issued
four times in fiscal 2020 in Japanese and English).
• In divisions engaged in operations closely related to the environment, such as those responsible for disposal of endof-lease properties and renewable energy business initiatives, environmental regulation tables are used to periodicallyconfirm the regulations and ordinances related to the activities of these divisions. In addition, division members
participate in internal and external lectures and training to gain deeper insight with this regard.
• Tokyo Century has been making ongoing contributions to environmental education for elementary and junior high school
students through donations to local environmental preservation organizations in the regions where it conducts solar
power generation businesses. These efforts have resulted in the Company’s receiving a letter of appreciation from anenvironmental preservation organization in Shiga Prefecture.

Biodiversity-Related Guidelines

See Basic Environmental Policy on page 18

Coastal Forest Restoration Project
Biodiversity
initiatives

Tokyo Century is supporting the Great East Japan Earthquake Reconstruction Support–Coastal Forest Restoration Project*1
through ongoing donations to OISCA (The Organization for Industrial, Spiritual and Cultural Advancement-International).

*1 This project supports the restoration of coastal forests damaged by the tsunamis that followed the Great East Japan Earthquake throughseedling cultivation and afforestation activities.

Kodomo no Mori Plan

We make continuous donations to OISCA to support the Kodomo no Mori Plan,*2 which allows children to plant and raise
trees at their schools or in the surrounding areas.
*2 As of March 31, 2021, 5,343 schools in 37 countries and regions had participated.

PaperLab

Sustainable
resource use

Tokyo Century has installed the PaperLab A-8000 office papermaking system developed by Seiko Epson Corporation. Thissystem produces new paper using the waste paper collected from recycled boxes placed within offices.
Using this system, we aim to reduce our environmental impact by cutting down on waste paper, including shredded waste
paper, and by recycling used office paper.

Refurbishment Businesses

In our refurbishment businesses, we erase the data of end-of-lease computers, servers, and other IT equipment so thatthey can be resold in order to make contributions to the creation of an environmentally sound, sustainable economy andsociety.

− 20 −

Environmental Performance
Scope

Unit

Fiscal 2018

Fiscal 2019

Fiscal 2020

Scope 1 (direct emissions)Grt - CO 2

2,091

3,139

3,613

Scope 2 (indirect emissions originated from energy use)Grt - CO 2

8,684

8,590

7,964

Scope 3 (emissions from supply chain, etc., not includedin Scope 1 or Scope 2)

TC

t - CO 2

1,211,947

1,390,556

1,043,996

Total

t - CO 2

1,222,722

1,402,285

1,055,573

Scope 3 Emissions by Category

Greenhousegas emissions

Category 1

Purchased goods and services

t - CO 2

947,632

1,054,304

843,494

Category 2

Capital goods

t - CO 2

563

512

100

Category 3

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

t - CO 2

1,496

1,574

1,739

Category 4

Upstream transportation and distribution

t - CO 2000Category 5

Waste generated in operations

t - CO 2

332

597

1,247

Category 6

Business travelt - CO 2

132

127

120

Category 7

Employee commuting

t - CO 2

244

231

221

Category 8

Upstream leased assets

t - CO 2000Category 9

Downstream transportation and distribution

t - CO 2000Category 10

Processing of sold products

t - CO 2000Category 11

Use of sold products

t - CO 2

4,011

3,108

5,452

Category 12

End-of-life treatment of sold products

t - CO 2

334

350

148

Category 13

Downstream leased assets

t - CO 2

112,820

193,866

181,292

Category 14

Franchises

t - CO 2000Category 15

Investmentst - CO 2

144,383

135,886

10,183

Unit

Fiscal 2018

Fiscal 2019

Fiscal 2020

kWh(environmental targets)

1,950,000

1,880,000

1,550,000kWh1,611,715

1,598,069

1,578,546

Electricity use and related
CO2 emissions

Environmental
contributions throughoffice activities

t - CO 2

825

818

770

Thousands of sheets(environmental targets)

17,00015,80013,500Thousands of sheets

15,402

13,832

9,262

L(environmental targets)

100,000

90,00072,000L

78,20369,03843,768t - CO 2

181

160

102

k m/L
(fuel efficiency)

13.9

13.9

14.3

MWh
(environmental targets)

277,000

300,000

355,000

MWh(annual generation volume)287,888

340,712

388,084

CO2 emissions reductions
t - CO 2

90,541

153,491

162,025

Units(environmental targets)

200,000

210,000

230,000

Units

459,341

479,625

405,055

Total waste emissions

t

1,256

1,533

2,670

Waste sent to landfills

t

455

851

1,685

20

31

22

13.61

22.96

16.43

Paper use

EMS

Gasoline use, CO2 emissions, and fuelefficiency for business vehicles andrent-a-car fleet

Otherenvironmental
performancedata

Renewable energy generation operations

Environmental
contributions throughbusiness activities

CO2 emissions reductions associatedwith solar power generation business ofKyocera TCL Solar LLC

Refurbishment operations(Annual number of
secondhand computers sold)
Waste

Water
resources

EMS

TC

TC

Water intake (only head office andOkachimachi Bldg.)

Thousands of m3

Water intake (per unit of production)− 21 −

3m

Compliance

Environmental
accounting

Number of environmental law violations

TC

Environmental preservation costs

TC

0

0

0

Fiscal 2018

Fiscal 2019

Fiscal 2020

Item

Specific Expenses

Unit

1. Costs within businessarea

Costs for transition to ecofriendly vehicles and network
equipment upgrades

Millions of yen

1

164

33

2. Upstream anddownstream costs

Waste disposal expenses

Millions of yen

24

47

98

ISO 14001 certification
maintenance and related costs

Millions of yen

Secretariat, environmental, andCSR expenses

32

19

28

Millions of yen
Total

57

230

159

Unit

Fiscal 2018

Fiscal 2019

Fiscal 2020

Billions of yen

10.5

13.3

14.7

t - CO 2

17,81429,79534,547

%

22

33

41

%

14.9

17.1

18.8

3. Administrative costs

Breakdown

Green revenue

Cases

Gr

Sales of solar power
generation businesses

Greenhousegas emissions
through JCM
Model Projects

Projected aggregate
greenhouse gas emissions
reductions when choosing
JCM Model Projects

Aviationbusinessfuel-efficiency
initiatives

Ratio of fuel-efficient
aircraft assets

Introductionof eco-friendly
vehiclesRate of electrified vehicle
use

Seven domestic solar
power generation businesscompanies
Total for Kyocera TCL Solar
LLC and six other companies

Projected aggregate
greenhouse gas emissions
reductions

Gr

Six aircraft models with highfuel efficiency compared withconventional models
Gr(EVs, FCEVs, PHEVs, HVs)

Ratio of fuel-efficient aircraft
assetsRatio of fuel-efficient aircraft toall aircraft

Three auto businesscompanies

Nippon Car Solutions Co., Ltd.;
Nippon Rent-A-Car Service, Inc.;and Orico Auto Leasing Co., Ltd.

− 22 −

Climate Change Response Strategy

Tokyo Century has identified climate change as one of the operational risks covered by its risk management system,
and we manage this risk as a non-financial risk. Climate change presents significant risks to Tokyo Century’sbusiness while also creating substantial business opportunities. Various initiatives are being advanced based on
this outlook.
In April 2021, Tokyo Century announced its endorsement of the recommendations of the Task Force on Climaterelated Financial Disclosures* (TCFD). Based on these recommendations, we conduct scenario analyses anddisclose the results thereof. Specifically, we conduct analyses of our environment and energy businesses (solar
power generation) based on P.11 TCFD recommendations. The risks and opportunities affecting these businesses
that are projected to have a large impact on operations are indicated in the table below.
* Tokyo Century is a member of the TCFD Consortium.
https://tcfd-consortium.jp/en
For more information on Tokyo Century’s response to climate change and endorsement of TCFD recommendations, please refer to the following website.
https://www.tokyocentury.co.jp/en/csr/environment/tcfd.html

Risks and Opportunities in Environment and Energy Businesses (Solar Power Generation)
Item
Risk

Transitional risks

Climate-relatedrisks andopportunities

Subcategory

Risk

Indicator

Opportunity

ImpactLarge

Carbon prices

Expenditures

N/A

The introduction of carbon prices affecting electricity
could cause costs associated with generatingenergy from fossil fuels to rise. As a result, it will be
increasingly likely that consumers will choose to use
renewable energy that is highly competitive in termsof carbon pricing.

Recycling
regulations

Revenue,
expenditures

Legal restrictions regarding the collection andrecycling of solar panels may have a financial
impact and may tarnish our medium- tolong-term reputation.

Panel recycling and hazardous material recycling
technologies and services may be developed
ahead of competitors and introduced to, andultimately expand, the market.

Large

Subsidy policies
includingrenewable energy

Revenue

The profitability of a business operated under
the feed-in tariff program may deteriorate if
grid parity is not achieved before the programends.

A stricter CO2 emissions reduction policy may
be adopted, and the feed-in tariff program may
provide opportunities for business expansion overthe long term.

Large

Revenue

As a result of changes in the energy mix, thenumber of renewable energy power generationcompanies may increase, and the competitiveenvironment may become increasingly severe.
Also, sales prices may fall.

Japan has defined its policy of increasing the
portion of electricity sold represented by powerfrom non-fossil fuel sources to 44% by 2030,
which will increase the opportunities for renewableenergy businesses.

Large

Revenue,assetsDeclines in the value of equipment and thepower generation costs of power generation
facilities stemming from the spread ofrenewable energy technologies may intensify
competition with other companies.

Business opportunities for solar and biomass
power generation may expand as the use ofrenewable energy increases.

Large

Damage to employees and power plants
caused by natural disasters, such as heavy
rains, floods, or typhoons, may result in halts tooperations, lower operating rates, or additional
investments to restore facilities. In addition,
insurance premiums and other costs may
increase for assets in high-risk areas, which
could impact the earnings or balance sheet of
the Company.

The development of resilient equipment throughthe accumulation of expertise may lead to newopportunities via the external supply of thisequipment.

Large

Changes inenergy mix(including energy
demand)Spread ofrenewableenergy andenergy-saving
technologies

Physical risks

Business impact

Intensificationof abnormal
weather events

Revenue,
expenditures− 23 −

Environmental
impact assessments

Tokyo Century’s Management Philosophy and Basic Environmental Policy state that it willcontribute to the creation of an environmentally sound, sustainable economy and society.
Contributing to the environment through our business activities is imperative to accomplishing
this goal. Accordingly, we began conducing environmental impact assessments based on
environmental impact assessment worksheets in order to confirm and track the impact of new
projects in Japan on the environment in fiscal 2019.
It is important for the Company to exercise consideration for the environment in theinvestments it conducts. For this purpose, we are expanding the scope of environmental impact
assessments, and we started using the abovementioned environmental impact assessment
worksheets to confirm the environmental policies of investment candidates and the potential
environmental impacts of their businesses in fiscal 2020.
Item
Number of environmental
impact assessment checks

Unit

Fiscal 2018

Checks─

Fiscal 2019

Fiscal 2020

20

36

Tokyo Century is conducting the following energy conservation initiatives on a Companywide basis.

Electricity Use Reduction

Reduction ofenvironmental
impacts

Companywide
energy conservation
initiatives

Employees are asked to turn off their computer monitors when they are away from their seats andto turn off lights in unused meeting rooms and during lunch breaks, among other measures, for
reducing electricity use. We also encourage employees to dress cooler in the summer and warmerin the winter to cut back on air-conditioning use. In addition, we are working to reduce overtime
hours through increased operational efficiency.

Gasoline Use Reduction

Reductions in gasoline use from driving for business purposes are being pursued by improving thefuel efficiency of business-use vehicles through eco-friendly driving techniques, utilizing trains andrental cars, and employing telematics systems installed in business-use vehicles.

Paper Use Reduction

We are reducing paper use by employing paperless and electronic applications and otherdocuments and holding paperless meetings through the utilization of thin-client computers andtablets.

Tokyo government’s
global warming
response plansystemTokyo Century’s head office (FUJISOFT Building) qualifies as a specified tenant as defined by Tokyo
ordinances. For this reason, we have submitted a specified tenant global warming response plan
to the Tokyo government.
The names of specified tenants with an overall ranking of A or above are disclosed as excellent
business operators. On the six-level ranking scale (C–S), Tokyo Century has consistently received
an AA ranking, indicating that we are a tenant implementing superior energy conservation
initiatives and systems.
For more details, please refer to Tokyo’s list of disclosed tenants.

Tokyo Bureau of Environment

Evaluations and list of global warming response measures of specified tenants can be found via
the link below (in Japanese only).
https://www.kankyo.metro.tokyo.lg.jp/climate/large_scale/data/tenant_karte.html− 24 −

Environmental Market Opportunities

Energyconservation
subsidy services
Financialservices
contributing
to socialsustainability

Tokyo Century employs various subsidy programs to help customers introduce
cutting-edge equipment that will contribute to lower environmental impacts. The
resulting reductions in lease payments effectively drive the spread of low-emissions
equipment, thereby helping preserve the environment while supporting small to
medium-sized companies in achieving carbon-free operations.

Major Subsidy Programs• ESG lease subsidization program for contributing to a carbon-free society• Cutting-edge energy-saving investment support subsidy• Advanced factory and workplace decarbonization support program
Corporate
power purchaseagreements(in-house
generation support
services)

Together with prime partners, Tokyo Century is engaging in corporate powerpurchase agreements,* which are expected to see increased use amid the transition
to a low-carbon, and ultimately carbon-neutral, society.
*A ctivities include installing solar panels for supporting in-house generation of renewableenergy on the roofs of factories or offices of companies seeking to limit CO2 emissions.
The generated electricity is supplied to the company that installed the panels in ascheme supporting the introduction of in-house solar power generation systems.

Overview

In October 2018, Tokyo Century procured ¥10.0 billion through the issue of green
bonds (unsecured bonds) in the form of a domestic public offering. The procured
funds were allocated to the leasing of solar power generation equipment byconsolidated subsidiary Kyocera TCL Solar LLC.
For more information, please refer to the following press release.
Green bonds

Environmentrelated
financial
products

https://www.tokyocentury.co.jp/_cms/wp-content/uploads/2018/10/181005_Announcement-on-theIssuance-of-the-25th-and-26th-Series-of-Unsecured-Bonds.pdf

Third-Party Assessment Concerning ComplianceA second opinion regarding the green bonds was received through an R&I Green
Bond Assessment by Rating and Investment Information, Inc. (R&I), indicating thatthe green bonds complied with the Green Bond Principles 2018 and Green Bond
Guidelines 2017 of the Ministry of the Environment. In addition, these bonds wereawarded the highest rating of GA1 in this assessment. R&I will continue to regularly
monitor the green bonds until they are redeemed
For more information, please refer to the following press release (in Japanese only).
https://www.r-i.co.jp/news_release_gba/2018/10/news_release_gba_20181005_jpn_2.pdf

Greenmechanisms

Overview

Sustainabilitylinked loans

In March 2021, Tokyo Century concluded a sustainability-linked loan contract
with Sumitomo Mitsui Trust Bank, Limited., procuring ¥15.0 billion worth of funds.
Sustainability performance targets linked to sustainability targets have been set
for the loans, and borrowing conditions are determined based on performance withregard to the sustainability performance targets.
For more information, please refer to the following press release (in Japanese only).
https://ssl4.eir-parts.net/doc/8439/tdnet/1949258/00.pdf

Third-Party Assessment Concerning Compliance

A third-party assessment has been received from Japan Credit Rating Agency, Ltd.,
indicating the compliance of these loans with sustainability-linked loan guidelines
and confirming the rationality of the sustainability performance targets.
For more information, please refer to the following press release (in Japanese only).
https://www.jcr.co.jp/download/1943737731167d76e28f7f37ae6f4129626f754a421f81746f/20d1404.pdf

Projects forrealizing a lowcarbon society

JCM system

The Joint Crediting Mechanism (JCM) system facilitates the diffusion of Japan’s
superior low-carbon technologies to partner countries with support in the form ofsubsidies for part of the installation costs toward contributing to the establishmentof sustainable social infrastructure and in the form of reduced greenhouse gas
emissions in these partner countries. At the same time, the system allows for thecrediting of some of the reduction in greenhouse gases under Japan’s emissions.
Tokyo Century has engaged in eight projects in four countries that have been
selected for the JCM system (as of March 31, 2021).
For more information, please refer to the following website.
https://www.tokyocentury.co.jp/en/csr/csr/social.html
Target

Unit

Projected aggregate greenhousegas emissions reductions whenchoosing JCM Model Projects

t-CO2− 25 −

Fiscal 2021 Fiscal 2022 Fiscal 2023 Fiscal 2024 Fiscal 2025
39,00045,00049,00053,00056,000SUSTAINABILITY DATA BOOK 2020

SocialDiversity

Basic Diversity Policy

The Tokyo Century Group will work alongside customers in pursuit of their growth as a highly specialized and uniquefinancial services company and further expand its business domains and develop its global business. We will
promote diversity to enable employees with diverse capabilities and personalities to demonstrate flexible thinking
and dynamic action to better serve the varied needs of our customers by consistently providing services with highadded value.
1. Nurturing Our Corporate Culture
Each employee will understand the importance of diversity and nurture a corporate culture that encourages
personnel with diverse characteristics to thrive.

Policies

2. Promoting the Active Participation of Diverse Human Resources
We will promote the hiring, development, and appointment of human resources from diverse backgrounds,
regardless of race, religion, gender, age, sexual orientation, disability, or nationality.
3. Supporting Career and Ability Development
We will support the career and ability development of each employee to encourage them to fully demonstrate
their ability and individuality.
4. Enhancing Work–Life Balance
We will enhance support for balancing work and private life so that each employee can work flexibly as
appropriate to their life circumstances.

Promotion system

The Diversity Promotion Office has been established within the Personnel Division to plan and promote
Companywide diversity initiatives.
Diversity training is conducted to foster greater understanding of diversity among all officers and employees. Topics
related to diversity are incorporated into basic onboarding training for new graduate and mid-career hires, anddiversity-related e-learning programs are administered to all officers and employees. In addition, diversity seminars
are arranged at which external instructors are invited to hold lectures and lead discussions.
Targets

All officers and employees

Diversity training

TopicsBasic diversity knowledge, fostering of understanding regarding diversity
Diversity promotion and management strategies
Tokyo Century’s Basic Diversity Policy
Flexible workstyles
Balancing of work and long-term care for family members and Tokyo Century’s support
systems
Understanding of the LGBT community
Fostering of understanding regarding diversity

Female employees

Women’s career development
Understanding of importance of viewing issues from a broader perspective
Development of action plans for addressing issues

Support for the LGBT
community

Employees of up to nine years of service(rank-based training)

Workstyle reforms (high-productivity workstyles)

Non-Japanese staff

Fostering of mutual understanding and enhancement of communication

The Tokyo Century Group distributes its Compliance Handbook to all officers and employees. This handbook clearly
indicates our stance against all forms of harassment, including sexual harassment, abuses of power, and negative
treatment of women in relation to pregnancy or child-rearing, and also describes our prohibition of discriminationof members of the LGBT community. Factual awareness in this regard is promoted through concrete examples, andtraining is conducted for all officers and employees to foster an accurate understanding of the LGBT community.

− 26 −

Global humanresources

Employment of people
with disabilities

In its overseas businesses, Tokyo Century has been building upon strategic alliances with prime partners in
its countries of operation. Further expansion of these strategic alliances will require global human resource
development. For this reason, the Company conducts the recruitment of non-Japanese individuals and the local
hiring of staff on an ongoing basis in order to secure and foster human resources who can succeed in markets
around the world. We also offer training specially tailored to the needs of such non-Japanese staff. Other efforts toswiftly cultivate global human resources include actively dispatching junior employees to study or work overseas.
Tokyo Century seeks talented individuals from an extensive array of backgrounds and actively employs people
with disabilities in order to provide a space where highly motivated people can flourish. The Company also meetsthe requirements for the ratio of employees with disabilities as established in the Act to Facilitate the Employmentof Persons with Disabilities. As an effort to further promote the employment of people with disabilities, in April
2019 Tokyo Century hired six staff members (people with mental disabilities) and opened the TC Work Happiness
Farm in Funabashi City, Chiba Prefecture. In conjunction with the expansion of this plantation, Tokyo Century hired
an additional three people with disabilities in February 2021.
The TC Work Happiness Farm provides a secure and fulfilling working environment for people with disabilities on
a long-term basis. Specifically, the plantation grows vegetables in a farm house designed under the motto of safety
and cleanliness and donates the harvested vegetables to the Second Harvest Japan (2HJ) as part of our social
contribution activities.
Moreover, 2HJ was established in March 2002 as Japan’s first food bank. A food bank is a charitable organizationthat distributes food to those who are going hungry. 2HJ redistributes a variety of food donated from food
manufacturers, wholesalers, farmers, and individuals that would normally be disposed of, despite still being
edible for people, to welfare agencies, orphanages, and women’s shelters; people with disabilities; impoverishedindividuals; and others in need.
Based on the Act on the Promotion of Female Participation and Career Advancement in the Workplace, Tokyo
Century empowers its female employees and has drawn up an action plan designed to enable each and every
employee to work flexibly and in a diverse number of ways.

Action Plan for the Promotion of Women’s Active Participation*1

Empowerment offemale employees

Plan Period

Quantitative Targets

April 1, 2016–March 31, 2023

• Increase the percentage of women among new hires to atleast 30%
• Increase the percentage of women in management
positions to at least 10%• Increase the percentage of childcare leave acquisition by
men to 100%
• Increase the percentage of annual paid leave acquisition
to at least 70%*1 This plan has been disclosed through the Ministry of Health, Labour and Welfare’s database of companies actively
empowering female employees (in Japanese only).
http://positive-ryouritsu.mhlw.go.jp/positivedb/detail?id=985

Tokyo Century established its Action Plan on the Promotion of Women to Officer and Management Positionsin October 2014 in order to steadily increase its number of female officers and managers through the active
employment, training, and promotion of highly motivated and talented women.

Promotion of women
to management andofficer positions

Action Plan on the Promotion of Women to Officer and Management Positions*2
Targets• Increase the percentage of women among new hires to at least 30%• Increase the percentage of women in management positions to at least 10%*2 The Action Plan on the Promotion of Women to Officer and Management Positions is also disclosed on the website for
Keidanren (Japan Business Federation) (in Japanese only).
http://www.keidanren.or.jp/policy/woman/ap10425.html− 27 −

Human Resource Utilization

Careerdevelopment

Tokyo Century believes that personnel are the real assets and driving force for the sustainable growth of
a company. In order to encourage each and every employee to demonstrate their abilities and individuality, we
support voluntary career and skills development and conduct a total of 15,000 hours of training annually.

Types of Training

Training for junior employees by year of employment, management training, career design training, global humanresource cultivation (external training, overseas trainee dispatch), etc.

Promotion system

Tokyo Century has established the Career Design Office within the Personnel Division to support employees incomposing, designing, and achieving their desired career path throughout the entirety of their professional lives.

Skills development
supportTokyo Century aids employee learning through a bonus system for employees who have completed distancelearning courses and a subsidy system for employees who have obtained qualifications relevant to their work.

Employeeengagement surveys

Tokyo Century aims to create an environment in which individuals can fully demonstrate their talents based on
mutual respect. To facilitate the creation of such an environment, we administer employee engagement surveys.
The results of these surveys are analyzed to identify issues and shape future initiatives, and this information isincorporated into officer training and discussed on an ongoing basis by the Management Meeting and the Boardof Directors so that issues can be addressed as top management priorities. At the same time, Tokyo Century isdeveloping workplace environments that are conducive to the enhancement of our human resource capabilities inpursuit of ongoing improvements in employee engagement, and regular reports are issued to the Board of Directors
with regard to the progress of these activities.

360° evaluations

We implement 360° evaluations, with the goal of fostering the development of section managers, that emphasizeorganizational management with a focus on smooth workplace relationships.

Career Challenge
Program

The Career Challenge Program is an internal recruitment system designed to provide employees with opportunities
for charting their own career course.

− 28 −

Tokyo Century promotes work–life balance so that all employees can work flexibly to suit their life circumstances.

Major Work–life Balance Support Systems
Targets

Childbirth andchildcare

Work–life balance
supportNursing

SystemPeriodPre-childbirth leave

Six weeks prior to childbirth

Post-childbirth leave

Eight weeks after childbirthChildcare leave

Until child reaches the age of two years and six months

Special leave to visit a hospital,such as for physical examinations

Until one year after pregnancy and childbirth (only days required)

Special leave for childbirth by a
spouseOne month prior to childbirth until two weeks after childbirth (five days in total)

Nursing leave

Until child starts elementary school (five days per year per child; leave should
be taken per day, half a day, or hour)

Exemption from overtime

Until child reaches the third year of elementary school (up to two hours)

Bringing forward work start/end
time

Until child reaches the third year of elementary school (up to two hours)

Pushing back work start/end time

Until child reaches the third year of elementary school (up to two hours)

Shortened working hours

Until child reaches the third year of elementary school(up to 75-minute reduction)

Family care leave

Up to one year in total (the number of applications is not limited)

Nursing leave

Up to five days per family member who is under care; leave should be taken
per day, half a day, or hour

Exemption from overtime

Until the care for the family member in question ends

Bringing forward work start/end timeThree years from the start date(up to two hours, but the number of applications is not limited)Pushing back work start/end timeThree years from the start date(up to two hours, but the number of applications is not limited)

Shortened working hours

Three years from the start date(up to two hours, but the number of applications is not limited)

Family Day

Tokyo Century holds Family Day events in which employees’ families may visit the workplace to strengthen familybonds by helping children gain a better understanding of the work their parents do and to improve employees’
motivation toward their work.

Working Mothers’ and Fathers’ Community

At Tokyo Century, we organize periodical lunch roundtable discussions for parent employees to network among
themselves to exchange information on managing work while raising children as part of our efforts to support
work–life balance.

− 29 −

Tokyo Century formulated the following Work Style Reform Action Plan in 2018. Through the plan, Tokyo Century
will promote employees’ physical and mental health in order to achieve higher productivity and allow individual
employees to adopt diverse, flexible workstyles to accelerate its business and corporate growth.

1. Reduction of Long Working Hours
KPI (Numerical Target Time Limit)• Maintain average monthly overtime working hours below 10 hours
Action Plan
• Strictly control employees’ working hours through management of prior application and approval forovertime work, in order to raise employees’ awareness of time management to make the most of their timeto achieve maximum output• Encourage employees to leave the Company basically on time in summer (July and August), in order topromote their self-development and physical and mental health

2. Promotion of Annual Paid Leave Acquisition
KPI (Numerical Target Time Limit)• Keep the percentage of annual paid leave acquisition over 70%

Workstyle reforms
Action Plan
• Encourage employees to take annual paid leave in a planned manner from the beginning of fiscal years,
including consecutive days of leave for summer vacation, for the year-end and New Year holiday, and before
and after weekends or national holidays• Encourage employees to take hourly paid leave• Utilize internal annual leave calendar to allow employees to schedule and take annual paid leave ina planned manner from earlier in each fiscal year

3. Promotion of Flexible Workstyles
KPI (Numerical Target Time Limit)• Increase the percentage of childcare leave taken by men to 100% by March 31, 2023
• Achieve a nursing care turnover rate of zero by March 31, 2023
Action Plan
• Encourage the taking of childcare leave among male employees and their superiors and introduce male
employees who have taken childcare leave along with their superiors in internal magazine and via othermeans• Provide nursing care handbook on the intranet and conduct training to cultivate understanding of nursing
care in order to help employees continue working by balancing work and nursing care

Excessive overtime
prevention andwork–balance support

Tokyo Century promotes work streamlining and strives to improve work–life balance through such means as
ensuring sufficient time for self-development, family, and friends by reducing overtime hours. Particularly during
summer (July–August), a time when the government urges electricity conservation, Tokyo Century encourages
employees to leave the office on time and to dress cooler, in order to cut back on air-conditioning use.
In addition, based on the Labor Standards Act, Tokyo Century has concluded an Agreement on Overtime Workand Working on Holidays (so called “36 Agreement”) with its labor union.
In relation to other working conditions, Tokyo Century complies with the Labor Standards Act. Tokyo Century fullycomplied with the act throughout fiscal 2020, and no penalty was imposed.
Complying with the laws of each country of operation, the Tokyo Century Group pays a living wage that exceeds
the legally mandated minimum wage and does not practice unreasonable wage reduction.

− 30 −

Human Rights Initiatives

The following provisions related to respect for human rights can be found in Tokyo Century’s Corporate Code of
Conduct and Our Action Guidelines.

Respect forhuman rights andprohibition of
discrimination

Corporate Code of Conduct● Respect for Human Rights
The Tokyo Century Group respects the human rights of all people and promotes diversity to nurture a corporate
culture that encourages personnel with diverse characteristics to thrive.

Our Action Guidelines● We will respect human rights and human dignity and create a rewarding working environment.
We will respect our mutual human rights and human dignity and strive to create a vibrant, rewarding working
environment where discrimination and harassment have no place.

Tokyo Century is a signatory of the United Nations Global Compact and endorses the compact’s Ten Principles* inthe four areas of human rights, labour, environment, and anti-corruption. Through ongoing efforts to live up to theseprinciples, we aim to contribute to the creation of an environmentally sound, sustainable economy and society.

Ten Principles of the UN Global Compact
Human Rights

Ten Principles ofUnited Nations Global
Compact

LabourEnvironment

Anti-Corruption

Principle 1

Businesses should support and respect the protection of internationally proclaimed humanrights; andPrinciple 2

make sure that they are not complicit in human rights abuses.

Principle 3

Businesses should uphold the freedom of association and the effective recognition of theright to collective bargaining;

Principle 4

the elimination of all forms of forced and compulsory labour;

Principle 5

the effective abolition of child labour; andPrinciple 6

the elimination of discrimination in respect to employment and occupation.

Principle 7

Businesses should support a precautionary approach to environmental challenges;

Principle 8

undertake initiatives to promote greater environmental responsibility; andPrinciple 9

encourage the development and diffusion of environmentally friendly technologies.

Principle 10

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

* The Ten Principles of the UN Global Compact are based on the Universal Declaration of Human Rights, the ILO Declaration on Fundamental
Principles and Rights at Work, the Rio Declaration on Environment and Development, and the United Nations Convention against Corruption.

Human rights
education programs

Tokyo Century provides human rights education through e-learning programs, training for officers, training for headsof divisions and branch offices, training based on numbers of years of service, and other compliance training
programs.
In addition, the Compliance Handbook is distributed to all officers and employees to promote further awarenessregarding human rights. (English- and Chinese-language versions of the Compliance Handbook have been prepared
to contribute to higher compliance awareness at overseas Group companies.)− 31 −

Social Contributions
Social Contribution Activities
Leave system forvolunteer activities

Disaster relief

Contributions
through shareholder
incentive systems

In 2009, Tokyo Century introduced a system that can be used by employees to acquire special leave for volunteer
activities that fall into one of the following four categories: 1. Environmental preservation activities, 2. Community
outreach activities, 3. Social welfare activities, and 4. Other activities authorized by the Company.
Tokyo Century offers relief to the victims of large-scale natural disasters, such as the 2016 Kumamoto earthquakes
and the 2020 Kyushu floods, in the forms of monetary donations and free car rentals. In addition, we donateddesks and chairs that were left over following the renovation of our head office to elementary schools that suffereddamages due to Typhoon Hagibis (Marumori Town, Miyagi Prefecture, and Koriyama City, Fukushima Prefecture) in
2020 so that they could be put to good use.
Meanwhile, the Mobility & Fleet Management segment has been expanding its electric vehicle (EV) initiatives.
One facet of these efforts is supplying business continuity products that utilize EVs as a source of emergency
power. This approach has already been used to support post-disaster reconstruction, as we supplied such EVs to
Chiba Prefecture during a prolonged blackout resulting from Typhoon Faxai in 2019. These EVs were used as an
emergency power source for social welfare facilities.
Furthermore, Tokyo Century is supporting the Great East Japan Earthquake Reconstruction Support–Coastal
Forest Restoration Project through ongoing donations to OISCA (The Organization for Industrial, Spiritual andCultural Advancement-International).

As a form of contribution through its shareholder incentive systems, Tokyo Century donates an amount equivalent
to 5% of the value of shareholder incentives (Quo Card prepaid cards) each fiscal year to organizations engaged
in social contribution activities. In fiscal 2020, Tokyo Century donated amounts equivalent to 2.5% of the value ofshareholder incentives to the Japan Service Dog Association, which is engaged in the training of service dogs, andto the Japan Rescue Association, which facilitates the training and deployment of disaster search dogs.
The Tokyo Century Group takes part in the education of the next generation around the world through pro bono andother activities.

Support for
education of thenext generation

Initiatives in Japan• Dispatch of employees as lecturers to which universities industry research seminars (finance, leasing, etc.) and career
design and other seminars• Internship programs for junior high school students

Overseas Initiatives• Arrangement of financial literacy lectures for junior high and high school students in Indonesia, etc.

Support for sports

Tokyo Century’s sports support activities include acting as an official sponsor for the KAWASAKI FRONTALE J.League
soccer team.

Support for the arts

The Company maintains a corporate membership to the Mitsubishi Ichigokan museum as part of its efforts to
support the arts.
In addition, we are supporting cultural activities through ongoing donations to the Shibusawa Eiichi Memorial
Foundation, among other initiatives.
Tokyo Century Group officers and employees take part in clean-up activities as part of our efforts to coexist inharmony with local communities.

Clean-up activities,
etc.

Activities in Japan

Early morning volunteer clean-up activities around our head office (Chiyoda-Ward) and Okachimachi office (TaitoWard)

Overseas Activities

Participation in coral reef preservation and coastal clean-up activities at beach located inside naval base by
employees of Thailand subsidiary
For information on other CSR topics, please refer to the following website.
https://www.tokyocentury.co.jp/en/csr/topics/− 32 −

Human Resource Data

KPI

TC

Ratio of women among new graduate hires

Ratio of women among newly hired employees(including mid-career hires)

Target(Target year)
At least 30%(Fiscal 2023)

Subcategory

Fiscal 2018

Fiscal 2019

Fiscal 2020

Women

11

8

4

Total of men and women

24

16

13

Ratio of women

45.8%

50.0%

30.8%

Career track employees

18.9%

21.4%

12.1%

Administrative employees

100.0%

100.0%

─

─

11.1%

50.0%

36.0%

22.6%

17.9%

Career track
employees

10.6 years

11.0 years

11.2 years

Administrative
employees

16.9 years

17.8 years

18.8 years

Total

15.3 years

15.9 years

16.6 years

Career track
employees

17.4 years

17.3 years

17.3 years

─

─

─

Total

17.4 years

17.3 years

17.3 years

Women

34

36

42

Total of men and women

472

454

460

Ratio of women

7.2%

7.9%

9.1%

Career track employees

12.0 hours

15.2 hours

14.9 hours

Administrative employees

2.4 hours

2.7 hours

3.2 hours

Total

8.3 hours

10.2 hours

10.2 hours

Career track
employees

121.1 times

68.8 times

167.5 times

Administrative
employees

37.7 times

193.5 times

──

5.0 times

1.0 times

Total

70.3 times

84.3 times

96.1 times

Career track
employees

70.3 times

47.6 times

44.7 times

─

─

─

Contractors

6.0 times

1.6 times

1.7 times

Total

66.3 times

38.6 times

40.6 times

Career track employees

1.7

1.4

3.8

Administrative employees

─

─

─

Contractors

─

3.1

0.6

Total

1.1

2.2

2.4

Career track employees

10.0%

11.0%

11.3%

Administrative employees

100.0%

100.0%

100.0%

Contractors

29.2%

25.0%

24.3%

Temporary staff

75.0%

77.4%

81.3%

Total

30.9%

30.7%

30.6%

─

Contractors
Total

Women

Average years of continuous employment bygender (as of March 31 of each fiscal year)─Administrative
employees

Men

Ratio of women in management positions(as of March 31 of each fiscal year)

Average overtime hours per month(labor outside legally designated hours)

At least 10%(Fiscal 2023)

─

Women

Contractors

Ratio of successful job applicants by gender(including mid-career hires)─Administrative
employees

Men

Ratio of men to women among new hires(including mid-career hires)

Ratio of women among employees(as of March 31 of each fiscal year)──− 33 −KPI

TC

Ratio of continuous employment after 10 years
by gender(Fiscal 2018: Newly hired employees between
fiscal 2007 and fiscal 2009)(Fiscal 2019: Newly hired employees between
fiscal 2008 and fiscal 2010)(Fiscal 2020: Newly hired employees between
fiscal 2009 and fiscal 2011)

Rate of childcare leave acquisition by gender

Target(Target year)

Subcategory

Fiscal 2018

Fiscal 2019

Fiscal 2020

Career track
employees

48.5%

45.8%

36.8%

Administrative
employees

70.0%

66.7%

62.5%

Total

60.3%

57.4%

48.6%

Career track
employees

61.4%

60.3%

53.7%

─

─

─

Total

61.4%

60.3%

53.7%

Career track
employees

100.0%

100.0%

100.0%

Administrative
employees

100.0%

100.0%

100.0%

Total

100.0%

100.0%

100.0%

Career track
employees

100.0%

100.0%

100.0%

─

─

─

Total

100.0%

100.0%

100.0%

Career track employees

74.1%

73.2%

71.4%

Administrative employees

86.4%

83.9%

76.5%

Contractors

96.5%

98.0%

77.7%

Total

77.3% (14.7 days)

76.3% (14.6 days)

72.7% (14.0 days)

Women

101

101

113

Total of men and women

230

207

223

Ratio of women

43.9%

48.8%

50.7%

Women

1

1

1

Total of men and women

42

43

43

Ratio of women

2.4%

2.3%

2.3%

Women

─

Administrative
employees

Men

Rate of childcareacquisition bymale employees
100%(Fiscal 2023)

Women

Administrative
employees

Men

Ratio of women in assistant manager position
or equivalent

Ratio of women officers

Occupational category and employment typechange data by gender

At least 70%(Fiscal 2023)

─

─

─

Nationwide →
Tokyo

─

─

─

Tokyo →
Nationwide

2 (women)──Nationwide →Administrative staff

1 (woman)──Tokyo →
Administrative staff──

1 (woman)

Temporary →Administrative staff

5 (women)

─

─

Total

8

─

1

Women

7

4

3

Men

22

33

23

Total

29

37

26

─

2.42%

2.93%

2.61%

Women

1.2%

1.2%

0.7%

Men

4.3%

4.9%

3.7%

Total

5.4%

6.1%

4.4%

Occupational categorychangeAnnual paid leave acquisition rate

Employment
type change

Re-employment and mid-career employment
data by gender
Ratio of employees with disabilities(as of June 1 of each fiscal year)

Employee turnover rate

─

─

─

− 34 −

Stakeholder Engagement
Initiatives Targeting Shareholders and Other Investors
Basic Policy Regarding Information Disclosure
The Company will actively and consistently disclose its management strategy, status of business activities,
financial condition, and other information in a timely, fair, and accurate manner.

Standards Concerning Information Disclosure
The Company will disclose information based on the Companies Act, Financial Instruments and ExchangeAct, and other laws and regulations as well as the Securities Listing Regulation defined by the Tokyo Stock
Exchange. In addition to information based on the above laws and regulations, we will disclose informationthat is useful for encouraging a clearer understanding of the Company. We may, however, withhold
information that is deemed inappropriate for disclosure based on due consideration.

Method of Information Disclosure

Investor relations
policies

We will disclose information relevant to the Securities Listing Regulation based on designated proceduresby holding a briefing at the Tokyo Stock Exchange, after which the information will be disclosed throughthe exchange’s Timely Disclosure Network (TDnet) as well as to media organizations. Following disclosure,the information will be promptly made available on the Company website. From the perspective of timely
disclosure, we will also disclose other information not covered by the Securities Listing Regulation in an
appropriate manner.

Forward-Looking Statements
Forward-looking statements disclosed by the Company may include forecasts and outlooks. Suchstatements are based on the Company’s judgment as of the time the reference material was compiled. As
forward-looking statements involve risks and uncertainties, the Company cannot guarantee the accuracy
and results thereof.

Silent Period

Investor
relations

To prevent leakage of financial information and to ensure fairness, the Company designates the period
between the settlement date and the reporting date, including those for quarterly disclosures, as a silent
period. During this period, the Company will, in principle, refrain from commenting or replying to queries
related to financial information. However, in the event that the Company expects any change, as defined by
the standards of the Securities Listing Regulation, to occur with regard to its current earnings forecast, theCompany will disclose such information as required in a timely manner, even during the silent period.

In principle, the Company issues dividend payments twice a year in the form of an interim and year-end
dividend.
Tokyo Century’s basic dividend policy is to provide stable, long-term returns to shareholders, and weare pursuing increases in the payout ratio founded on continuous earnings growth.

Shareholder returns

Dialogue withinvestors

Dividends per Share
Fiscal 2016

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Annual dividend

¥100

¥114

¥124

¥136

¥138

Payout ratio

24.2%

23.5%

25.1%

25.9%

34.2%

• Institutional investors:	More than 200 online meetings and teleconferences with domestic and overseas
institutional investors and sell-side analysts (including more than 40 meetings
with overseas institutional investors) as well as financial results briefings, small
meetings, etc.
• Private investors:	Company briefings canceled in fiscal 2020 in response to the COVID-19
pandemic (Company briefings held in Tokyo and cities outside of major urban
centers under normal circumstances)− 35 −SUSTAINABILITY DATA BOOK 2020

GovernanceCorporate GovernanceManagement Structure

Basic Policy

Tokyo Century recognizes that effective corporate governance is an important management issue to be addressedin order to maximize corporate value. We therefore strive to maintain a sound and highly transparent management
system that enables swift and accurate decision-making in response to changes in the operating environment.
We also work to enhance the soundness and transparency of corporate management through the implementationof effectively functioning internal control and risk management systems.
Tokyo Century’s management structure centers on the Board of Directors and the Board of Corporate Auditors.
In addition, an executive officer system has been introduced to accelerate management strategy decision-making
and strengthen supervision and operational execution systems.
The Company has one female director among its 13 directors and one female officer among its 30 executive
officers (as of July 1, 2021).

Internal control
system andcorporate
governance system

Corporate
Governance Report

Board of Directors

Corporate Governance Report (Last Update: July 1, 2021) (918 KB)
https://www.tokyocentury.co.jp/download/pdf/en/csr/governance_en210701.pdf

The Board of Directors deliberates on and makes decisions about the policies, strategies, business plans, andother key management issues of the Company and Group companies as well as matters specified by prevailinglaws and regulations, the Articles of Incorporation, and rules governing the Board. It also supervises the executionof operations by directors and executive officers.
Chairperson

Number of Members(after Shareholders’ Meeting held in June 2021)

Makoto Nogami
President & CEO,
Representative Director

Directors: 13(including 5 external directors)− 36 −

Meetings Held in Fiscal 2020
12

Board of Corporate
Auditors

The Board of Corporate Auditors meets regularly and executes independent and fair audits of the compliance andappropriateness of corporate activities, including the performance of duties by directors and executive officers.
Annual internal audit plans are reported to the Board of Directors after approval by the president (Management
Meeting), and the results of the audits are reported to the president (Management Meeting) and to the Board of
Directors.
Chairperson

Number of Members(after Shareholders’ Meeting held in June 2021)

Futoshi Okada
Standing Corporate Auditor(External Corporate Auditor)

Corporate auditors: 4(including 2 external corporate auditors)

Meetings Held in Fiscal 2020
8

The Management Meeting deliberates on particularly important matters concerning the execution of operations
and makes decisions for the entire Group.
Management
Meeting

Chairperson

Number of Members

Makoto Nogami
President & CEO,
Representative Director

11 members

Meetings Held in Fiscal 2020
Once a week, in principle

The Transaction Evaluation Meeting discusses and makes decisions about major business transactions being
considered by Tokyo Century and Group companies as well as transactions that warrant complex risk analysis.
Transaction
Evaluation Meeting

Chairperson

Number of Members

Ko Nakagawa
Managing Executive Officer

10 members

Committees− 37 −

Meetings Held in Fiscal 2020
Once a week, in principle

Committees

Information on Directors (as of July 1, 2021)
Name

Directors

Classification

Age

Independence

Background

Board of Directors
Attendance at Boardof Directors Meetings

Number of Years
as Director

Shunichi Asada

72

‒

12/12

12 years

Makoto Nogami

67

‒

12/12

12 years

Masataka Yukiya

65

‒

12/12

10 years

Masao Yoshida

External
Director

72●

Former president and representative
director of Furukawa Electric Co., Ltd.

12/12

4 years

Yukito Higaki

External
Director

58●

President of Imabari Shipbuilding Co., Ltd.

11/12

4 years

Akio Nakamura

External
Director

65●

Former director-general of the Financial
Bureau, Ministry of Finance

12/12

3 years

Toshio Asano

External
Director

68●

Former president and representative
director of Asahi Kasei Corporation

12/12

2 years

External
Director

46●

Partner of Shiba & Tanaka Law Offices‒‒
2 years

New
Director

Miho Tanaka

Akihiko Okada

61

‒

12/12

Keiichiro Ogushi

60

‒

9/9*

1 yearKoichi Baba

60

‒

12/12

4 years

53

‒

‒

‒

71

‒

12/12

10 years

New
Director

Tatsuya Hirasaki

Toshihito Tamba* Attendance at meetings after appointment in July 2020

− 38 −

Director Skills
Matrix

Officer
Compensation

Systems for director compensation are designed to provide healthy incentives to contribute to the ongoinggrowth of the Company and frameworks for linking compensation to the medium- to long-term development of
its businesses. The compensation of officers comprises basic compensation, bonuses, and stock options. Basiccompensation, which is fixed compensation, is determinedbased on comprehensive consideration of factors suchas the duties, roles, and responsibilities of each officer.
Amounts of bonuses and stock options, both forms of
performance-based compensation, are decided based on
net income attributable to owners of parent in order to tie
compensation to earnings.
The compensation of external directors and corporate
auditors, who are in positions independent of operational
execution, consists entirely of basic compensation basedon their roles.
(Fiscal 2020)− 39 −

The Company hires a third-party assessment institution to objectively evaluate the effectiveness of the Board of
Directors and uses its evaluation reports during meetings of the Board Effectiveness Review Council.

Important Themes for Fiscal 2020

1. Provision of overall direction by setting corporate strategies
2. Creation of an environment conducive to appropriate risk-taking by senior management
3. Exercise of highly effective oversight of senior management and directors from an independent and objective
standpoint.

Results of the Fiscal 2020 Effectiveness Evaluation

In fiscal 2020, the Board of Directors was judged to be facilitating constructive and meaningful discussions
regarding management strategies based on an accurate understanding of the changes in the operating
environment, such as those brought about by the COVID-19 pandemic and the trend toward decarbonization.
The Board of Directors will continue to discuss medium- to long-term management strategies with appropriate
consideration paid to the operating environment and circumstances related to the Company.
Evaluation ofBoard of Directors'
effectivenessMeasures for Addressing Major Issues for
Fiscal 2021

Highly Evaluated Areas
1. Acceleration of initiatives for enhancing
investment risk management by clarifying
investment continuation and withdrawal
standards and developing investee monitoringprocesses through establishment ofinvestment management framework
2. Improvement of diversity and balance ofknowledge, experience, and skills among
members of the Board of Directors byappointing female external director andreducing the number of internal directors
to revise Bord scale, based on discussions
centered on Nomination Committee regarding
ideal structure and composition of oversightfunctions− 40 −

1. Invigoration of discussions at meetings ofthe Board of Directors
2. Discussions emphasizing cost of capital
3. R einforcement of information-sharing
systems of Group companies
4. Promotion of diversity management

Risk Management

Policies

The Tokyo Century Group has established the Basic Risk Management Policy for its risk management activities.
In addition, we have defined the Comprehensive Risk Management Rules for comprehensive risk management
activities as well as various other individual risk-specific rules based on the Basic Risk Management Policy. Risk
management is promoted in accordance with these rules.
Our risk management approach focuses on strengthening visual risk management and enhancing consolidated
Group governance in Japan and overseas through the use of consolidated enterprise risk management (ERM) andmanagement information system (MIS) measures.

Comprehensive Enterprise Risk Management
The Tokyo Century Group will continue to practice comprehensive ERM following its management guidelines forcapital use rates based on quantitative risk control on a consolidated basis.
The capital use rate is used to assess risk resilience, which is an important criterion for rating financial
institutions. We have therefore sought to keep the risk amount within a certain level of capital buffers by adheringto the aforementioned management guidelines. As our business domain continues to expand, the relationshipbetween the amount of capital and level of risk is receiving greater attention from investors and other interested
parties. For this reason, the capital use rate has become a key indicator for objectively determining prospects forour sustainable growth and investment capacity. We refer to the targeted level of the capital use rate only as a
guideline, since the regulations regarding capital use rates for financial institutions are not applied to us.

Visual Risk Information Tracking at the Management Level (MIS)Management

In addition to quantifying risks on a consolidated basis and controlling the capital use rate, we implement a visual
MIS. Under this system, the Credit Risk Management Committee and the Comprehensive Risk Management
Committee take the lead in regularly monitoring risk information on multiple criteria and report the results to theManagement Meeting and the Board of Directors.
One particular subject for regular reporting to the Board of Directors is the key risk indicators (KRIs) establishedfor non-financial risks (including those related to human resources, information security, accidents, compliance,and climate change) in light of the increased importance of non-financial operational risks resulting from the
expansion of our business scope.

− 41 −

Major Risks andManagement
Approaches

With respect to Group risk management, we mainly manage the following risks based on the characteristics of ourbusiness operations.

Relationshipbetween Major Group
Companies and Main
Risk Categories− 42 −

Compliance
ComplianceManagement

At the Tokyo Century Group, the Compliance Office promotes Groupwide compliance measures under thesupervision of the chief compliance officer (CCO) appointed by the president & CEO, who is also the chiefcompliance executive.
The heads of each business division and branch office, along with the presidents of each Group company, act ascompliance officers (COs) with the responsibility of guaranteeing compliance with all relevant laws and regulations
and ensuring that business activities are kept in line with social norms.

Compliancestructure

Rigorous
compliance atconsolidated Group
companies

The Risk Management Liaison Committee for Group companies meets regularly each year to help strengthen
consolidated business management. This committee, attended by compliance representatives from domestic
Group companies, has already met 15 times since its establishment and proved to be a valuable forum for internal
communication and sharing important compliance issues.
A major task faced amid rapid global expansion in our business domain is to integrate into the Group’s
compliance structure practices pertaining to compliance, which are currently matched to the specific circumstancesof the operations of individual Group companies. For example, CSI Leasing, Inc., has established a complianceportal system with a multiple-language interface that is available on a global basis. Aviation Capital Group LLC,
meanwhile, is revising its compliance rules to bring them in line with Tokyo Century’s compliance standards, while
also strengthening its frameworks through means such as using online systems for compliance reporting.
For overseas Group companies, relevant head office divisions utilize remote meetings, e-learning programs,
and other tools to overcome the recent difficulties in engaging in face-to-face communication associated with the
COVID-19 pandemic. Said divisions also provide Group companies with training, monitor the status of compliancewith local laws and regulations, confirm the effectiveness of business continuity plans, and raise awareness tofacilitate use of the internal reporting system.

− 43 −

With the aim of quickly detecting and addressing risks, improving organizational corrective capabilities, andenhancing compliance management, the Tokyo Century Group has established the Consultation/Whistleblowing
System, an internal reporting system that allows for direct reports through which officers and employees who
become aware of actions being performed or about to be performed in violation of compliance standards are
obliged to directly report such matters without the intervention of their superiors.

(1) Outline of the Internal Reporting System

Internal reporting
systemFor our internal reporting system, we have established three reporting routes to ensure independence: the in-house
Compliance Office, the office of an external corporate lawyer who is familiar with this field, and full-time corporate
auditors. Individuals making reports are able to choose the route that best suits their needs.
Reports can be sent via any means, such as by email, telephone, verbally, or in written form, to the relevant
contacts. These contacts are indicated in the Group’s Compliance Handbook, which has been distributed to all
officers and employees, and are also posted on the Company’s intranet.
Reports may be filed on a wide range of matters, including violations of the Antimonopoly Act, bribery, or otheracts of corruption that impede fair competition; violations of the Financial Instruments and Exchange Act that
undermine the interests of investors and other stakeholders;, harassment, human rights violations, and otherviolations of laws concerning business operations; or acts of misconduct that violate corporate ethics or internal
rules. In addition, the internal reporting system also allows for consultation to be received when there is doubt
about compliance in terms of business execution.
All officers and employees—including directors, executive officers, full-time employees, contractors, temporary
staff, seconded employees, part-time staff, and retired employees—are eligible to report such matters throughthis reporting system. Moreover, individuals making reports may remain anonymous. We strictly prohibit
disadvantageous treatment, such as disciplinary action and retaliation, of individuals making reports by theCompany as a result of raising concerns, and the anonymity of the reporter and the confidentiality of the report areprotected.

(2) Investigation of Reports
When a report is received, the CCO is consulted to determine response policies and the report is quickly
investigated to verify the facts of the matter.
Parties involved with and subjects of an investigation have confidentiality obligations imposed upon them, anddisadvantageous treatment of investigation subjects as a result of their cooperation with a given investigation isprohibited in the same manner as individuals making reports.
The results of the investigation in question are reported to the CCO. Should the investigation results reveal
a compliance violation, measures will be taken to remedy the issue, limit the resulting damage, prevent recurrence,and rectify any human rights violations.
Critical compliance violations are reported to the chief compliance executive of the Tokyo Century Group (thepresident & CEO of Tokyo Century Corporation) and to the corporate auditors.
Reports from domestic and overseas Group companies have been representing an increasingly large portion of
the reports received through this system. We believe this is due to our consistent efforts to raise awareness of theinternal reporting system among employees, including locally hired staff at overseas Group companies, which have
led to increased awareness and, subsequently, system use.
At the same time, stringent whistleblower protection measures at both the associated external law firm (corporate
lawyer) and the Compliance Office, located in head office, have helped increase confidence in the system,encourage more use thereof, and contribute to the effective functioning of the system.

Number of Reports Received via the Group Internal
Reporting System (consolidated basis)

ComplianceHandbook

Unit

Fiscal 2018

Fiscal 2019

Fiscal 2020

Number ofReports Received

19

17

17

The Tokyo Century Group distributes its Compliance Handbook to
all officers, managers, and employees and makes it available on its
corporate portal at all times. The Compliance Handbook outlines ourManagement Philosophy, Corporate Code of Conduct, and compliancemanagement regulations and other internal regulations. In addition,
the handbook clearly stipulates the Group’s stance toward respect forhuman rights and the prohibition of harassment.
The Group also strives to foster a compliance-oriented mindset
at its overseas subsidiaries and has created an English and Chinese
edition of the handbook for these companies.

− 44 −Aiming to thoroughly instill a compliance-oriented mindset, the Tokyo Century Group provides systematic andcontinuous compliance education through such means as rank-based training programs designed for employees
ranging from new hires to newly appointed managers; e-learning-based training targeting all officers, managers,
and employees (including contractors and temporary staff); and workplace compliance training conducted bycompliance officers (heads of divisions and branch offices).

Targets (Training Methods)• Meaning and nature of compliance• Impacts of compliance violations• Deep understanding of compliance-oriented mindset• Advice for practicing good compliance• Details and purposes of the internal reporting system• Importance of information security measures and defense against cyberattacks• Management systems, rules, and important points for information security, etc.

New employees(rank-based training programs)

New heads of divisions
and branch offices(rank-based training)

Complianceeducation
All officers and employees(e-learning)

Employees at divisions
and branch offices(workplace compliance training
conducted by complianceofficers / heads of divisions
and branch offices)

1

Roles and responsibilities of heads of divisions and branch offices concerning risk
management and compliance• Organizational risk and compliance management system and promotion thereof• Responses to crises, incidents, and accidents• Business continuity measures• Information security and information management (personal information, insider
information, etc.)• Prevention of bribery and corruption (non-association with antisocial organizations;prevention of money laundering and of provision of funds for terrorism; appropriate
means of offering entertainment to public officials, political contribution control, etc.)• Initiatives for environment-related businesses, etc.

1

• Internal reporting system• Prohibition of harassment (sexual harassment; abuses of power; harassment for
pregnancy, childbirth, childcare leave, family care leave, etc.; remote harassment)• Points to note on entertainment and the exchange of gifts with people working at
private companies, domestic public officials, overseas public officials, etc.
• Non-association with antisocial organizations• Prevention of money laundering and of provision of funds for terrorism• Appropriate management of personal information, My Number (social security andtax numbers in Japan), information assets, and insider information• Attendance management (workhours, teleworking, annual paid leave, etc.)• Fraud triangle (motivation, opportunity, and rationalization)• Appropriate use of copyrighted works• Prohibition of misuse of subsidies from the government and local governments• Compliance with the Antimonopoly Act• Self-checking of basic actions and behavior pertaining to Corporate Code of
Conduct, Our Action Guidelines, etc.

2

• Internal reporting system (details, purposes, and appropriate use)
• Prohibition of harassment—relevant laws and regulations and prevention guidelines,
basic stance toward prevention, etc.
• Prohibition of excessive offering of entertainment and exchange of gifts• Prevention of money laundering and of provision of funds for terrorism• Act on the Protection of Personal Information• Insider trading regulations• Antimonopoly Act• Intellectual property rights• Political contribution control• Trends in and lessons learned from compliance violations at other companies, etc.

About 4

• Training for overseas assignees (regulations related to compliance and risk
management at overseas bases, management systems, internal reporting system andother systems, features of assigned bases, etc.)• Workplace compliance training conducted by heads of compliance (base heads)(internal reporting system, prohibition of harassment, prevention of bribery andcorruption, non-association with antisocial organizations, prevention of money
laundering and of provision of funds for terrorism, and appropriate means of offering
entertainment to public officials, personal information protection, information security,
insider trading regulations, fraud triangle, etc.)• E-learning (same as above)

Employees at overseas
bases (training for overseas
assignees, training conductedby the heads of compliance(base heads), e-learning)

As needed
4 or more

As needed

Unit

Fiscal 2018

Fiscal 2019

Fiscal 2020

No. of Training Sessions per Year

Sessions

8

10

9

No. of Participants in E-Learning Programs*2

Participants

4,359

4,865

5,173

*1

Compliancetraining

No. of Training
Sessions per Year

Major Subjects*1 T raining sessions conducted by Tokyo Century head office and e-learning programs (excluding those conducted by branch offices andGroup companies)*2 A
 ggregate number of participants in abovementioned e-learning programs− 45 −

Anti-Corruption

Anti-corruption
initiatives

At the Tokyo Century Group, we take steps to avoid anti-corruption by promoting fair, equitable, and transparent
transactions in all of our business activities.
The Group prohibits the offering of entertainment, cash, or other benefits to domestic or overseas public
officials for the purpose of obtaining illicit profit, rewarding them for granting favors, or obtaining an unfair businessadvantage, whether these gifts are offered directly or indirectly through agents, consultants, or any other third
parties.
In international businesses, we exercise caution and seek to act appropriately with regard to the provision ofentertainment and gifts to overseas public officials by practicing strict compliance with the laws of Japan andlocal laws and regulations. In addition, our Guidelines on Offering Entertainment to Public Officials are available inJapanese, English, and Chinese to ensure awareness of the necessary concerns among officers and all employees,
including non-Japanese staff at Tokyo Century’s overseas subsidiaries.
Furthermore, the Group has instituted rules for confirming the identity of transaction counterparties whenconcluding contracts in order to prevent money laundering that may foster organized crime and the financing
of terrorism and to ensure we have no associations with antisocial forces. We thereby strive to contribute to therealization of a safe society and healthy economic activities.
Our commitment to anti-corruption efforts is described in our Compliance Handbook, which is available inJapanese, English, and Chinese. In addition, anti-corruption topics are included in e-learning and other internal
training programs whenever necessary to ensure awareness among all Group officers and employees.
Reports on anti-corruption initiatives are issued to and reviewed by the Management Meeting and the Board of
Directors as one facet of the implementation of the compliance structure.
In fiscal 2020, there were no fines imposed on Tokyo Century and no employees were disciplined or dismissed asa result of corruption.

− 46 −

Information Security

The Tokyo Century Group has acquired certification under the ISO/IEC 27000 international information security
management system standards, with the goal of protecting the information assets of its clients and those of theGroup from threats such as unauthorized access, loss, leakage, revision, and destruction. With this certification,
we practice the appropriate protection and management of information assets on a Groupwide basis. Aiming to be
a company trusted by society, the Group will strive to ensure information security by working to further entrenchadherence to ISO/IEC 27001 standards and by engaging in continuous improvement efforts (certification wasreceived from BSI Group Japan K.K.).
ISO 27001
certification

Scope of ISO 27001 Certification

ISO 27001 certification has been acquired for the following Tokyo Century Group
entities.
■ Tokyo Century Corporation (head office, Okachimachi office, Akihabara UDX office)■ TRY Corporation■ TC Business Services Corporation
In addition, the following consolidated subsidiary has received certification on
an individual basis.
■ Fujitsu Leasing Co., Ltd. (all offices)Tokyo Century Group seeks to protect the information assets of business partners and of the Group from various
security risks by laying out guidelines and related rules and regulations to carry out the following initiatives.

1. Protection of Information Assets

We will protect all information assets related to our business activities. In particular, we will designate
information concerning our business partners and confidential information concerning the Group as vital
information, and we will appropriately handle such information to protect it against illegal access, loss, leaks,
falsification, and destruction.

2. System of Information Security Management

We will clarify the roles and responsibilities for information security through the Information Security Committee,
as the organization for deliberating on information security, and a Chief Information Security Officer, as the
person responsible for implementing related measures, and we will pursue these activities Group-wide.

Basic Information
Security Policy

3. Information Security Education

We will consistently conduct education and training on information security for officers and employees tomaintain and deepen awareness of information security.

4. Response to Incidents and Accidents

We will strive to prevent incidents and accidents related to information security, and in the event of suchan incident or accident, we will promptly respond with appropriate action, including preventive measures.

5. Legal Compliance

We will comply with laws and regulations on information security as well as rules and contractual security
requirements.

6. Initiatives for Continuous Improvement

We will evaluate the security risks of information assets based on appropriate risk assessment to promote
effective security measures. In addition, we will respond to changes in the management environment andprogress in information technology by regularly reviewing our policies, rules, and measures to make continuous
improvements.

− 47 −

Information Security Policies

Tokyo Century views information security as a crucial issue affecting corporate management, rather than just as
a task for the IT Unit.
Implementing necessary information security measures is essential for protecting the Company and its
customers’ information assets from incidents of cyberterrorism such as targeted attack emails, ransomware,and business email fraud. The Company has obtained certification under ISO 27001, the international standard
for information security management systems. Under the leadership of the Information Security Committee, we
regularly revise regulations and rules regarding information management, conduct regular risk assessments toaddress information security risks, and carry out surveys to evaluate effectiveness.

Cybersecurity Measures
Information
security initiatives

Tokyo Century has established TC-CSIRT as well as creating incident response manuals as part of its security
system for ensuring protection from extreme circumstances. In addition, we hold regular drills that simulate
cyberattacks to strengthen our capabilities for responding to cybersecurity incidents resulting from increasingly
sophisticated and insidious cyberattacks.

Information Security Issues at Group Companies

Certain Group companies are involved in consumer businesses, which raises the need to further reinforce ourpersonal information management efforts. Meanwhile, the global development of our business has resulted
in Group companies being located around the world. We are thus aware of the need to strengthen information
security measures in accordance with diverse cultures and regulatory systems.
We encourage closer collaboration among Group companies by establishing security guidelines for said
companies, strengthening management of outside subcontractors, providing information on information security,and holding regular liaison meetings. We also strive to prevent security incidents by bolstering the security systemsof Group companies through increased involvement by the IT Unit in their operations.
In addition to these efforts, we conduct regular drills for all officers and employees that simulate a suspicious
email attack without prior notice.

− 48 −

Personal Information Protection

Tokyo Century (hereafter “the Company”) recognizes that protecting personal information, including My Number
and specific personal information (hereafter “specific personal information”), as a vital social responsibility, and wewill appropriately handle personal information under the following guidelines.

1. On Compliance with Relevant Laws and Regulations

The Company will handle personal information in strict compliance with the Act on the Protection of Personal
Information (hereafter “the Personal Information Protection Act”) and the Act on the Use of Numbers to Identify
a Specific Individual in the Administrative Procedure (hereafter “the Numbers Act”) as well as with other relevantlaws and regulations.

2. On Obtaining Personal Information

The Company will obtain personal information through legitimate and appropriate means within the scopenecessary for performing the Company’s business activities.

3. On Using Personal Information

The Company will use personal information only after specifying its purpose and will not use personal
information beyond the scope of achieving its purpose, except in cases when prior consent has been granted orwhen regulatory approval has been obtained. The Company will limit its use of specific personal information to
purposes that have been defined under the Numbers Act and other relevant laws and regulations.

4. On Providing Personal Information to Third Parties
Privacy Policy

The Company will not provide the personal information of customers to a third party, except in cases when priorconsent has been granted or when regulatory approval has been obtained. However, the Company may provide
such information without the consent of customers within the scope of achieving its purpose when the Company
consigns the handling of personal information to a third party or when the Company becomes involved in amerger or similar actions. The Company will not provide specific personal information to a third party, except as
defined under the Numbers Act and other relevant laws and regulations.

5. On Ensuring Secure Management of Personal Information

The Company will take steps to securely manage personal information to prevent leaks, loss, falsification, etc.,
by establishing rules related to the protection of personal information and by appointing staff to be responsible
for ensuring the secure management of personal information. Furthermore, if the Company were to consign thehandling of personal information to a third party, it would only do so to a third party that meets the Company’s
standards, and the Company would exercise the necessary and appropriate supervision.

6. On Responding to Requests for Disclosure, etc., of Personal Information

The Company will respond with sincerity to customer requests for disclosure of personal data in its possession.
Furthermore, the Company will respond appropriately and promptly in cases when factual errors have been
discovered in such personal data and the Company receives requests for an addition, correction, or deletion ofsuch data, as well as through complaints or consultation from customers.

7. On Making Continuous Improvements

The Company will strive for continuous improvements in its handling of personal information by revising theseguidelines and related internal rules, etc., to reflect changes in the Personal Information Protection Act, Numbers
Act, and other relevant laws and regulations as well as social requirements.

− 49 −

1. Purposes of Personal Information Use

In the handling of customers’ personal information, the Company shall specify the purpose of use and, excluding
when consent has been received in advance and when recognized by law, it will not use personal information
beyond the scope necessary to achieve the purposes of use below concerning the Company’s businessactivities. Note that when specific purposes of use of personal information are separately restricted by laws andordinances, such as the use of Individual Numbers as defined by the Numbers Act, personal information shallnot be used for purposes other than the relevant purpose of use.

Company businessactivities

Handling ofcustomers’ personal
information

Purposes of use

1. Businesses involved in leasing, installment sales, and sales and intermediaries
thereof concerning computers, transportation equipment, industrial machinery,
medical equipment, other various movables, real estate, and rights;
2. Financial businesses;
3. Casualty insurance agencies and insurance agencies as described in the Act on
Securing Compensation for Automobile Accidents;
4. Businesses concerning the solicitation of life insurance;
5. Possession, management, administration, and sales of marketable securities;
6. Investment, financing, loan guarantees, and management advice to unlistedcompanies;
7. Contracting businesses involved in design, construction, installation, repair, anddemolition;
8. Businesses involved in business contracting and business undertaking;
9. Collection agency businesses;
10. Businesses engaged in the sale and rental of welfare equipment as described in
the Long-Term Care Insurance Act;
11. In-home, long-term care support businesses as described in the Long-Term Care
Insurance Act;
12. Businesses involved in home care services;
13. Type II financial instruments businesses;
14. Businesses concerning supply, sales, intermediary, etc., of energy including
electricity;
15. Businesses engaged in hotel and ryokan (traditional Japanese-style hotel)
management; and
16. Any businesses associated with or related to the foregoing.
1. In order to make credit decisions when engaging in transactions with customers
concerning the above business activities, such as leasing, installment sales, andloans
2. In order to engage in appropriate management as concerns contracts relating totransactions with customers
3. In order to introduce products and services offered by the Company or Tokyo
Century Group companies as well as to respond to inquiries and applications inthis regard
4. In order to provide information to relevant third parties within the scopenecessary when the Company concludes or considers concluding a contract witha third party involving transactions with customers
5. In order to confirm the identity of a customer or that of a customer proxy intransactions with customers
6. In order to disclose customers’ personal information to third parties, including
the credit bureaus of which the Company is a member, to the extent required toappropriately execute relevant business activities
7. In order to engage in suitable solicitation concerning products and services
offered by the Company or Tokyo Century Group companies in accordance withprinciples regarding suitability established in laws and ordinances such as the
Financial Instruments and Exchange Act
8. In order to make use of information in market research and new productdevelopment as concerns products and services offered by the Company andTokyo Century Group companies
9. In order to appropriately execute all other business activities concerningtransactions with customers− 50 −

2. Sharing of Personal Information

The Company may share customers’ personal information as described in (1) through (3) below.
However, the Company will not share specific personal information.

(1) Personal Information to Be Shared■ Information concerning attributes such as name, sex, address, date of birth, telephone number, email
address, and place of work
■ Information concerning transactions with the Company as well as transaction history, such as the balancesof transactions made with Group companies and others(2) Scope of Sharing

Domestic Group companies and overseas subsidiaries noted on the “Corporate Information” page in the “About
Us” section and the “Overseas Network” page of the Company’s website(3) Purposes of Use of Parties with Which Information Is Shared

Use within the scope necessary to achieve the purposes of use above(4) Chief Executive of Personal Information

Chief Compliance Officer
Tokyo Century Corporation
FUJISOFT Bldg., 3 Kanda-neribeicho, Chiyoda-ku, Tokyo 101-0022 Japan

3. Provision of Personal Information to Third Parties

Excluding when consent has been received from a customer or when recognized by laws and ordinances, inprinciple, the Company will not provide the personal information of a customer to a third party. However, when
the processing of personal information is to be outsourced externally, the Company may commit personal
information to a third party with a sufficient management system within the scope necessary for the purpose ofuse.
Note that specific personal information shall not be provided to third parties, excluding in those cases clearlydelineated in the Numbers Act.

Handling ofcustomers’ personal
information

4. Security Control Measures

The Company shall establish and maintain regulations concerning the protection of personal information.
The Company shall strive to store and manage customers’ personal information in an accurate and up-todate state. The Company shall also select a person responsible for the management of the safety of personal
information, and it shall take safety management measures necessary and appropriate for preventing theleakage, loss, revision, etc., of personal information. In addition, in the event the Company outsources thehandling of customers’ personal information to a third party, the Company shall only outsource to parties thatmeet its standards concerning information safety management and shall engage in necessary and appropriate
supervision.

5. Request for Disclosure of Personal Information, etc.

The Company has established the information desk noted below to handle requests for the disclosure (disclosure,
notification of purposes of use, amendment, addition, deletion, suspension of use, erasure, or suspensionof provision to a third party) of personal information as well as complaints and inquiries in this regard.
The Company shall strive to respond appropriately and promptly to customers or their proxies concerning
personal information in the possession of the Company (however, this is limited to retained personal data
as defined by the Personal Information Protection Act). Note that the Company has established procedures
concerning requests for disclosure, including entering one’s name and applying one’s signature to theestablished form and confirming the identity of the person making the request. In addition, please be aware thatthese procedures may require fixed fees.
Information Desk for Personal Information Disclosure Requests, Complaints, and Inquiries
Business Risks Management DivisionTokyo Century Corporation
FUJISOFT Bldg., 3 Kanda-neribeicho, Chiyoda-ku, Tokyo 101-0022 Japan
TEL: +81-3-5209-8273(Monday through Friday 9:00 a.m.–5:15 p.m. (JST), not available on Japanese national holidays)

6. Continuous Improvement Efforts

The Company shall appropriately review this policy and relevant internal regulations in response to revisions oflaws and ordinances such as the Personal Information Protection Act and the Numbers Act, advancements in
information technologies, and changes in social demand while continuously striving to improve its handling of
personal information.

− 51 −SUSTAINABILITY DATA BOOK 2020

OthersExternal Evaluations

FTSE4Good Index Series

MSCI ESG Leaders
IndexesThe MSCI ESG Leaders Indexes
were developed by MSCI Inc. of theUnited States. These indexes compile
companies exhibiting particular
excellence in regard to ESG factors.
Tokyo Century has been included inthese indexes since 2020.

THE INCLUSION OF Tokyo Century Corporation IN ANY MSCIINDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICEMARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE ASPONSORSHIP, ENDORSEMENT OR PROMOTION OF Tokyo
Century Corporation BY MSCI OR ANY OF ITS AFFILIATES. THE
MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCIAND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKSOR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

MSCI Japan ESG
Select Leaders Index


The MSCI Japan ESG Select Leaders
Index is based on the MSCI JapanIMI Top 700 Index and composed ofcompanies that have demonstrated
outstanding ESG performance. Tokyo
Century has been a constituent of theindex since 2017.

Tokyo Century has been selected asa constituent of the FTSE4Good IndexSeries, a major global index series forsocially responsible investment.

FTSE Blossom Japan Index
THE INCLUSION OF Tokyo Century Corporation IN ANY MSCIINDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICEMARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE ASPONSORSHIP, ENDORSEMENT OR PROMOTION OF Tokyo
Century Corporation BY MSCI OR ANY OF ITS AFFILIATES. THE
MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCIAND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKSOR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

MSCI ESG Ratings

The FTSE Blossom Japan Index isdesigned as a tool to measure theperformance of Japanese companies
that have a track record of strong ESG
practices. Tokyo Century has been a
constituent of the index since 2017.

S&P/JPX Carbon Efficient Index

MSCI ESG Research LLC rates
companies on a seven-tiered scale,from CCC to AAA, according to their
exposure to ESG risks and otherfactors. Tokyo Century received an
MSCI ESG Rating of AA in 2020.

The S&P/JPX Carbon Efficient Index
comprises companies that boast highlevels of carbon efficiency and which
actively disclose information on CO2
and other emissions. Tokyo Century
has been a constituent of the index
since 2018.

THE USE BY Tokyo Century Corporation OF ANY MSCI ESGRESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE
OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEXNAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP,
ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF Tokyo
Century Corporation BY MSCI. MSCI SERVICES AND DATA ARE
THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND
ARE PROVIDED ‘AS-IS’ AND WITHOUT WARRANTY. MSCI NAMESAND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI.

DX Certification SystemPlatinum Kurumin Certification

The DX Certification system is basedon the Act on Partial Revision of the
Act on Facilitation of Information
Processing. In 2021, Tokyo Century
was certified by the Ministry of
Economy, Trade and Industry (METI)
through this system, indicating that theCompany is implementing superior
initiatives based on the guidelines for
information system implementationand management.

Tokyo Century was accredited with
Platinum Kurumin certification by the
Ministry of Health, Labour and Welfare
as a company pursuing a higher
level of initiatives for supporting childrearing.

Digital Transformation Stock
Selection

Semi-Nadeshiko BrandTokyo Century was included in
the Digital Transformation Stock
Selection (DX Stocks) in 2021. Thissystem is arranged by METI and theTokyo Stock Exchange to recognize
companies that have been successful
in high-level utilization of digitaltechnologies through the promotionof digital transformation for improving
corporate value.

Since 2019, Tokyo Century has twice
been selected as a Semi-Nadeshiko
Brand company in the program
jointly arranged by the Ministry of
Economy, Trade and Industry and theTokyo Stock Exchange to recognize
companies that excel in empowering
women.

− 52 −

Participation in External Initiatives

Signing of theUnited Nations
Global Compact

Tokyo Century became a signatory of the United Nations Global Compact in May
2018.
An international initiative spearheaded by the United Nations, the Global Compact
invites companies and organizations to participate on a voluntary basis. Signatories
exercise creative and responsible leadership and act as good citizens to contribute to
the development of global frameworks for realizing sustainable growth.
Moreover, the Global Compact requests that signatories adhere to its Ten Principles
in the four areas of human rights, labour, environment, and anti-corruption. Throughongoing efforts to live up to these principles, we aim to contribute to the creation ofan environmentally sound, sustainable economy and society.

Signing of
Principles ofFinancial Behavior
in the 21st Century

In May 2016, Tokyo Century signed the Financial Behavior Principles for theFormation of a Sustainable Society (Principles of Financial Behavior in the 21stCentury), an initiative encouraging financial institutions to incorporate ESG
principles into their financial activities.
We are exercising consideration for the environment and society in our activities
based on the defined seven principles for contributing to the realization of asustainable society.

CDP is an international nonprofit organization that encourages companies todisclose information regarding climate change and other environmental issues andwhich conducts surveys and analyses of such information.
Tokyo Century has been disclosing information through responses to CDP’s
climate change and water security questionnaires since fiscal 2016.
Participation in
CDP
CDP score

Endorsementof TCFD
recommendations

Support for Fun to
Share initiative

Category

Fiscal 2018

Fiscal 2019

Fiscal 2020

Climate change

D

B–

B–

Water security

C–

C

C

Tokyo Century announced its endorsement of the recommendations of the Financial Stability Board’s Task Forceon Climate-related Financial Disclosures (TCFD) in April 2021. We have since been disclosing information basedon TCFD recommendations.
 For more information, please refer to the TCFD official website.
https://www.fsb-tcfd.org/

Tokyo Century has been supporting the Fun to Share initiative since March 2014.
The Fun to Share initiative is a climate change response campaign advanced by
the Ministry of the Environment to contribute to the realization of a low-carbon
society.
The slogan of the Fun to Share initiative translates as, “Let’s share the latest
insight on global warming response measures to create a low-carbon society.”− 53 −