Integrated Report 2022
Main Parthttps://www.dbj.jp/en

Initiative & Integrity

Printed in Japan

Development Bank of Japan Inc.

In consideration of the environment, this report is
printed on FSC®-certified paper using non-VOC ink.

Integrated Report 2022
Main Part

Responsibility tofuture generations
The customer’s perspective
Outstanding service
Commitment and cooperation

Value Creation Story

Cover design:
Gazing into the futurefrom a window in 2022

Corporate GovernanceP

1 Contents and Editorial Policy

Corporate GovernanceP

2 Our History of Value Creation

P 56 Message from the Chairman

P

4 Corporate Philosophy

P 58	Basic Position on Corporate GovernanceP

6 Value Creation ProcessP

8 Strengths that Back Value Creation

P 62	Members of the Board of Directors,
Audit & Supervisory Board Members,
and Executive Officers

P 10 Message from the President
P 16 Fifth Medium-Term Management Plan

P 65	Messages from Outside Members of theBoard of Directors

P 18	Key Initiatives toward Realizing
Sustainability

P 66 Compliance

P 23	Invigoration and Stabilization of
Financial Markets through Partnerships
and Collaboration

Risk Management
P 68 Risk Management System
P 68 Comprehensive Risk Management

Strategy

P 73 Business Continuity Initiatives

Business Strategy

Corporate Data

P 24 Energy Sector

P 74 Financial and Non-Financial Highlights

and society; Pursue sustainable

P 26 Transportation Sector

P 76 Consolidated Financial Summary

development for Japan and the world.

P 28 Urban Development Sector

P 78 Timeline

P 30 Industrial Sectors

P 79 Shareholder Information

Area Strategy

P 79	Summary of Changes to the DBJ Act afterConversion to a Joint-Stock Company

As industry and infrastructure professionals skilled in handling all typesof risk, we will play a unique role in the economy and society of 2030—
leading new business and market creation while responding to crises
and other social needs.

P 32 Regions

P 80 Organizational Structure

P 34 Overseas

P 81	Corporate Information /Group Companies

Function Strategy
P 36	Special Investment Operations andCrisis Response Operations

Corporate Governance

Sector Strategy

Provide the best solutions for customers

Strategy

P 72 Stress Tests

Continue to expand financial frontiers;

1

Value Creation Story

P 40	Syndicated Loans, M&A Advisory, andConsulting Services
P 42	Asset Management

Green
Resilience & Recovery
Innovation
Transition / Transformation

Initiative & Integrity

Management Foundation Strategy
P 44 Financial Strategy

Corporate Data

A long-term perspective / Impartiality / Public-mindedness / Reliability

Design the Futurewith Financial Expertise

MissionDevelopment Bank of Japan Inc.
Integrated Report 2022

P 46 Human Resource Development
P 50 Knowledge and Collaboration
P 52 Response to the TCFD Recommendations

Editorial Policy
Environmental Report for a Sustainable Society (published in fiscal 2003) was the
DBJ Group’s first report dedicated to increasing such communication with our
stakeholders. Our integrated report, published since fiscal 2017, is intended toprovide financial and non-financial information to explain the DBJ Group’s businessactivities and initiatives in sustainable value creation to its broad spectrum of
stakeholders.
In our Integrated Report 2022, we have refined the Value Creation Process
section to clarify our approach to sustainability management, enhanced the­disclosure of information about our response to climate change and the Task
Force on Climate-related Financial Disclosures (TCFD) recommendations, andupdated other non-financial information.
The report’s content is decided upon by the Executive Committee.

Period Covered and Scope• Period: Fiscal 2021 (April 1, 2021–March 31, 2022) (Some information fromoutside this period is also included.)• Scope: In principle, the report covers DBJ and its 12 main subsidiaries• Date of publication: September 2022
Guidelines and Entities Referenced• International Integrated Reporting Framework of theInternational Integrated Reporting Council (IIRC)(now part of the IFRS Foundation)• Guidance for Integrated Corporate Disclosure andCompany–Investor Dialogues for Collaborative Value
Creation
Disclaimer
Integrated Report 2022 contains forward-looking statements. Forward-looking
statements are based on information available at the time of writing andhypotheses or judgments regarding uncertain factors. Accordingly, actual results
may differ materially if conditions change.

Development Bank of Japan Inc.
Integrated Report 2022

Development Bank of Japan Inc.
Integrated Report 2022

Our History of Value Creation

3

Our History of Value Creation

The DBJ Group has provided solutions in tune with the times, contributed to the sustainable development of society, and, whilechanging itself, stayed true to its values—initiative and integrity—amid dramatic changes in the economy, the fabric of society, andsocial issues.

Promotion of homegrown technologies through thecommercial application of new technologies

Development of new financial products that shine a
spotlight on sources of value

1

4

5

Financial support for realization of ahydrogen-based society

Value Provided by DBJ

8Value Creation Story

Rebuilding Japan’s merchant shipping fleet with financeunder the government’s shipbuilding program

Development of financing methods

Nippon Yusen Kabushiki Kaisha: Liner Sanuki MaruSony Corporation: (now Sony Group Corporation)
Trinitron color television factory

Japan H2 Mobility, LLC (JHyM)
Photo provided by ENEOS Corporation

1951–

1972–

1985–

1999–

2008–

Rebuilding of economy andadvanced economic growth

Improvement in quality of life
for Japanese citizens

Smooth transformation ofindustrial structure

Sustained development of
economy and society

Crisis response

Upgrading of railway
network

Enhancement of energy

Infrastructure
Rebuilding of vital industry 1 ​Nurturing of
new industry

Support for capital
investment

M&A advisory services

Environmental
ratings 5

Strengthening of response toinnovation 8 ​Business revitalization
financing

Sharpening ofcompetitivenessBCM ratings

Maintenance of regionalsocial infrastructure

Solutions forregional issues

Reconstruction after
earthquakes 7

1951

1956

1999

Establishment of Japan
Development Bank

Establishment of Hokkaido Development
Finance Public Corporation

Establishment of Development
Bank of Japan

DBJ’s Environmentally Rated Loan Program, BCM Rated Loan
Program, and Employees’ Health Management Rated Loan
Program with a focus on non-financial information were the firstof their kind. Approximately 1,400 loans in these programs havebeen extended to companies. As a front-runner, DBJ has also
led the creation of the sustainable financing market. We havebeen a consistent supporter of corporate initiatives to strengthen
competitiveness and transform structures with the objective ofsustaining the development of industrial fields.

Regional
revitalization

Specialinvestments

2008

2015

Establishment ofDevelopment Bankof Japan Inc.

Revisions to The
Development Bankof Japan Inc. Act

2

3

6

7

Toyo Soda Manufacturing Co., Ltd. (currently Tosoh
Corporation): Conversion of manufacturing method for
caustic soda (Yamaguchi Prefecture)

Hankyu Corporation: Earthquake reconstruction work
(Hyogo Prefecture)

Wall Street, where the New York
Stock Exchange is locatedJoban Kosan Co., Ltd.: Spa Resort Hawaiians(Fukushima Prefecture)

Promotion of conversion to non-polluting manufacturingmethod for chemical industry

Recovery work on traffic infrastructure damaged by
the earthquake

In the wake of the 2008 global financial crisis, DBJ
rapidly responded through its Financial Crisis Response
Operations to shore up the worsening cash flow ofcorporations caused by dysfunction in bond markets.

Support for a theme park that became a symbolof reconstruction after the Great East Japan
Earthquake

Knowledge / Collaboration
DBJ has accumulated knowledge through constant analysis ofand research into trends in the economy and industry, including
the Survey on Planned Capital Spending, which it has conducted
for more than 60 years. The DBJ Group has provided uniquesolutions that leverage its wide-ranging network of stakeholders,from customers and financial institutions to national and local
government entities.

2020

Crisis response / Safety net
The DBJ Group acts as a safety net in times of large-scale
natural disasters and instability on financial markets by nimbly
engaging in appropriate Crisis Response Operations as a stabilizing force. During the COVID-19 pandemic, DBJ has rapidly
and effectively provided support for the cash flows of companies
in a broad spectrum of industries and regions.

Corporate Data

Advancing PPP
and PFI projects

Reconstruction after
Great Hanshin-Awaji
Earthquake 3

Sustainability

Employees’ healthmanagement ratings

Support for venture businesses

Support for locallydeveloped technology

Regions

Changes at DBJ

Project financing

Transformation ofindustrial structure

Prevention ofpollution​ 2

Supply of risk capital 6

Renewable energy

Strengthening of international
competitiveness ​ 4

Regional
development
Regional
equalization

Updates toinformation andcommunications
infrastructure

Modernization of
distribution

Industrialization of
new technologies

Industry

Stable supplyof energy

Restoration of
infrastructure

Corporate GovernanceReinforcement oftransportation
capacity

Redevelopment ofmajor cities

DBJ has solved various social issues in Japan while pioneering
the use of novel financing methods, such as project financing,debtor-in-possession (DIP) financing, public–private partnership(PPP) and private finance initiative (PFI) projects, and asset
financing. DBJ has also invigorated financial markets by creating
growth capital markets through the supply of risk capital andencouraging new money flows through the creation of diverse
investment and loan opportunities.

StrategySocial changes
and issues

DBJ’s history and roles2

4

Development Bank of Japan Inc.
Integrated Report 2022

Development Bank of Japan Inc.
Integrated Report 2022

Corporate Philosophy

Corporate Philosophy

Sharing Our Corporate Philosophy
Further propagating and applying our corporate philosophy will improve awareness of our social responsibility,
enhance the sense of unity in the DBJ Group, lower communication costs, and motivate
our employees to grow with intention and a sense of mission.

Value Creation Story

With due consideration paid to progress it has made thus far, projected changes in the business environment, and outstandingsocial issues, the DBJ Group has formulated a mission to pursue relentlessly, core values to share, and its long-term vision, Vision
2030, to follow as a guide into the future.
In connection with these elements of its corporate philosophy, the DBJ Group has identified four core corporate values—a longterm perspective, impartiality, public-mindedness, and reliability—that also embody its strengths and long-term vision, which are
its areas of differentiation.

5

Our unwavering purpose and our unceasing determination to shape the future

Design the Future with Financial ExpertiseMISSION

Strategy

Continue to expand financial frontiers; Provide the best solutions for customers and society;Pursue sustainable development for Japan and the world.
Our vision for 2030, embodied in our mission and strategies

VISION 2030

BUSINESSSTRATEGY
Sector strategy
Function strategy
Area strategy

CAPITALSTRATEGY

Medium-Term Management Plan—Our strategy for reaching our vision for 2030
The DBJ Group’s unique strengths assist with strategy execution
Core corporate values

A long-term perspective, impartiality, public-mindedness, and reliability

Our guidelines for taking specific actions that express our values
Execute strategy
based on values

Values put into practicedefine our strengths

ACTION GUIDELINES

Responsibility to future generations

We fulfill our responsibility to the future by pursuing both economic and social value.

The customer’s perspective

We devote unequaled thought to each possibility—from the customer’s point of view.

Outstanding service

We review and enhance our services while improving productivity.

Commitment and cooperation 	
We work tirelessly to broaden frontiers and achieve best results.
We respect diversity and work together for greater shared value.

Our unwavering values shared by management and employees (base component)

VALUES

Initiative

Integrity

Corporate Data

Financial capital
Human capitalIntellectual capital
Relationship andsocial capital

Sustainability
management

Corporate Governance

As industry and infrastructure professionals skilled in handling all types of risk,
we will play a unique role in the economy and society of 2030—leading new
business and market creation while responding to crises and other social needs.

Leveraging the DBJ Group’s
unique strengths to pursue
its mission and realize its vision

Development Bank of Japan Inc.
Integrated Report 2022

Development Bank of Japan Inc.
Integrated Report 2022

Value Creation ProcessValue Creation Story

Realizing DBJ’s Long-Term Vision 2030
Acceleration of initiatives in theFifth Medium-Term Management Plan

P 16–17

External conditions and social issues
INPUT

D.A.I.S: Digital, Aging, International, Sustainability

BUSINESS MODELOUTPUT / OUTCOME

Industrial revitalization
based on regional
characteristics,
overseas businessdevelopment, foreign
tourism in Japan,
business succession

Own credit-raising activities
Government credit-raising activities

Fiscal 2025 Targets

Self-Reliance andRevitalization of
Local Economies

Values: initiative and integrity

Creation, Conversion,and Growth inIndustry
P 30–31

P 36–37

Functions

Commercialization of newtechnologies, restructuringof businesses to improve
productivity and sharpen
competitiveness, development of business in global
markets

 leader for sustainable finance andAsolutions

P 50–51

Social CapitalNatural environment
Social infrastructuredv
is	GRIT investments and loans(five-year total) ¥

5.5 trillion

P 40–41
P 42–43

Foundation for Value Creation
Human Capital

P 46–49

Values: initiative and integrityF our core corporate values:
a long-term perspective, impartiality,
public-mindedness, and reliability
Engagement

Intellectual Capital

P 50–51

 urveys and researchSScreeningRiskmanagement

Relationship Capital

P 50–51

Customer baseNetworks
Combined strengths as a Group

Value Created
Building a sustainable society 	More-resilient infrastructure andsupply chains S	 upport for creation of new­technologies, Co-creation andinnovation 
Improved engagement

System capital

Corporate Governance

P 23

Collaborationand cooperation

P 58–67/ Risk Management

P 68–73

Customers

Communities

G T(including achieving carbon neutrality by 2050)

R
I



Collaborationand cooperation

Stakeholder communications

Employees Financial institutions

Investors

Shareholders

Collaborationand cooperation

Corporate Data ollaboration and cooperation with diverseC
stakeholders

Asset entmManageRebuilding andReinforcement ofInfrastructure	(Notes: Common equity Tier 1 capital ratio, estimates ona finalized Basel III basis.)

P 24–29

Relationship Capital ustomer base centered on industry
C
leaders

A

Backcasting from created value

P9

ge

Rebuilding of energy
systems, developmentof more-advanced
transportation networks,
and creation of
attractive communities

Leading-edge financial expertiseor yIntellectual Capital

S er

d
wle
Kno

P8

vice

s

P 50–51¥

Corporate Governance

P 38–39

ts
ns
en
atio
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t O ent
en estmnvstoionnsrraati
ppee
eOO

Spec
I nv
ia
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(in d l I n v e
ust st
ria m
li

stm

ing
nc

Human Capital our core corporate values: a long-term
F
perspective, impartiality, publicmindedness, and reliability

200 billion
Net income ¥85 billion
Cost ratio 
32%
Total assets ¥21 trillion
ROA 
1%
ROE 
3%
Risk-weighted capital ratio 
14%Gross ordinary income P 32–35

P8

P 16–17

Results of Operations

Strategy

Three Priority Areas

P 44–45

Financial Capital

7

Value Creation Process

As a front-runner, the DBJ Group engages in sustainability management with the aim of solving issues for customers and society
and realizing sustainable development in Japan and the world.
While aiming to refine our sustainability management, we work to continuously improve the value creation process outlined
below, through collaboration and dialogue with our stakeholders, in order to further expand value creation.

Fin
CCrrisisisi
a
sRRee
ssppo
onns
se

6

8

Development Bank of Japan Inc.
Integrated Report 2022

Development Bank of Japan Inc.
Integrated Report 2022

Strengths that Back Value Creation

Strengths that Back Value Creation

In the 70 years since its establishment as Japan Development Bank, the DBJ Group has accumulated particular strengths throughsolving various social issues. DBJ draws on these strengths in its efforts to sustain growth by resolving the issues of its customers
through the provision of risk capital and knowledge, and is undertaking measures to expand its strengths (see Management
Foundation Strategy on pages 44–51).
Our four core corporate values, shared by all employees, are what drive value creation at DBJ, facilitating our responses tochange while maintaining our strengths in a changing business environment amid evolving social issues.

A Leader in Japanfor Sustainable
Finance andSolutions

After being the first financial institution in the world to develop an
environmentally rated loan program (the DBJ Environmentally Rated Loan
Program) in 2004, DBJ expanded its menu of financing options that factor
in the level of sustainability management at a corporation to include
the DBJ BCM Rated Loan Program* and the DBJ Employees’ HealthManagement Rated Loan Program. We emphasize dialogue withcustomers in the provision of these loan programs, DBJ Sustainability
Linked Loans with Engagement Dialogue and consulting services, andassist our customers with sustainability management, with loans totaling¥2,621.9 billion. In 2011, we created DBJ Green Building Certification andbegan to participate in sustainability assessments of real estate properties.
* BCM: business continuity management

Corporate Data

Leading-Edge
Financial
Expertise

Since DBJ’s founding as Japan Development Bank, it has provided longterm financing for the capital needs of corporations, while refining its
ability to analyze companies and assess business viability. Moreover, DBJ
has gained extensive experience in leading-edge financing techniques,introducing Japan to such investment vehicles as project finance, debtorin-possession (DIP) finance, public–private partnerships/private financeinitiatives (PPPs/PFIs) and asset finance, using commitment andcooperation as action guidelines. DBJ has supplied risk capital via various
methods, such as mezzanine financing and equity investments, taking along-term perspective to addressing issues faced by its customers.

Collaboration andCooperation with
DiverseStakeholders

With origins as a government-affiliated financial institution, DBJ has
built strong collaborative and cooperative relationships with diverse
stake­holders from the standpoint of public-mindedness and impartiality.
When Japan encounters a crisis, such as a major earthquake or turmoil
in financial markets, DBJ, designated by the government as a financial
institution to engage in Crisis Response Operations, does so expeditiously and appropriately. Furthermore, DBJ form funds with regional
financial institutions to supply risk capital to address regional issues.
The DBJ Group will continue to collaborate with diverse stakeholdersof its own accord.

Corporate GovernanceIntellectual Capital

Customer Base
Centered on
Industry Leaders

DBJ has supported numerous customers, including leading companies
in their respective industries, with the aim of spurring growth in Japanthrough policy-based financing since the reconstruction period after theend of World War II. The findings of DBJ's annual Survey on Planned
Capital Spending, which has been conducted for more than 60 years,
informs corporations’ top management discussions, strengthening our
relationship capital. Having grown alongside Japan for decades, the DBJ
Group will continue to work closely with its customers from a long-term
perspective.

Strategy

Four Core
Corporate Values

The source of our passion to achieve our mission is our four core corporate values: a long-term perspective, impartiality, public-mindedness,and reliability. These values have originated from the pursuit of our sharedcorporate philosophy and values of initiative and integrity, and have been
passed down the generations. These values embody the strengths of the
DBJ Group and support our unique business activities. We are able toleverage other strengths thanks to these values.

Relationship Capital
Value Creation Story

Human Capital910

Development Bank of Japan Inc.
Integrated Report 2022

Development Bank of Japan Inc.
Integrated Report 2022

Message from the President



Message from the President

Value Creation Story

The DBJ Group helps realize a sustainable society
by promoting sustainability management thatbalances economic and social value in order to meetthe changing needs of society and our customers.

support such breakthroughs, we must take on the

recent years, we have addressed the declining birth

to address you as the new president and chief

challenge of boosting innovation in our communi-

rate and aging population, and become a leader in

executive officer of Development Bank of Japan Inc.

ties, including through the supply of funds.

the areas of globalization and growing environmental

Since its establishment, the DBJ Group has flexibly

and disaster awareness. Since our transformation

Integrated Report 2022, I would like to extend myevolved its operations as a distinctively unique finan-

into a joint stock company, there has been dramatic

greetings to all of our stakeholders as thecial institution while working closely with customers

change in the wake of the global financial crisis

representative of DBJ.

to resolve their issues, as well as issues affecting

and major events including the Great East Japansociety and regions. The basis of our activities is the

Earthquake and, more recently, the COVID-19

DBJ Group’s sustainability management approach

pandemic. While constantly tackling issues faced byby the COVID-19 pandemic. Through our Crisisof meticulously striking a balance between economic

our customers and regions with integrity, we have

Response Operations, the DBJ Group is committed

value and social value. In this integrated report, wetaken on the challenge of entering new financial

to supporting affected businesses and working

discuss our corporate philosophy in the context offrontiers. The DBJ Group itself has undergone major

toward the rapid economic recovery that is essential

the unwavering mission of the DBJ Group, its visionchanges by working to resolve issues faced by its

to maintaining a sound foundation for economic andfor the future, and the values we share. We also

customers and regions.

social activity. In fiscal 2021 in particular, the DBJ

touch upon the value creation process and ourWith major changes in store for society, in keeping

Group marshaled all of its capabilities in Crisis

medium-term business plan that represents thewith our unwavering mission to design the future with

Response Operations to assist in an unprecedented

road map to achieving our Vision 2030. Furthermore,financial expertise, we will take a flexible approachway restaurant and hotel businesses that had been

we specifically explain to our stakeholders how weto issues faced by regions and our customers as

severely impacted by the ongoing pandemic.

balance economic and social value.

a whole, while staying true to our core values andto address the rapid progress of digital technology
and the movement toward carbon neutrality, while
being aware of the need for economic security in a

Corporate Data

To begin, I would like to express our deepest
sympathies to everyone who has been affected

Corporate Governance(DBJ) as of June 2022. With the publication of ourStrategy

CEO MESSA GE
My name is Seiji Jige, and it is my great pleasure

being mindful of our Code of Conduct (Action

Looking ahead to the future, we must find ways

History, Role, and Corporate
Philosophy of the DBJ Group

11

Guidelines).
	Our Mission: Design the future with financial
expertise
Our Code of Conduct (Action Guidelines):changing world, and how the COVID-19 pandemic

Since the days of its predecessors, Japan

has changed the economy and society, including

Development Bank and Hokkaido–Tohoku		 • Responsibility to future generations

workstyles. These fundamental, tectonic shifts in

Development Finance Public Corporation, the DBJ		 • The customer’s perspective

the economy and society are likely to alter industrial

Group has worked to promote Japan’s sustainable		 • Outstanding service

structures, including the financial sector. While wedevelopment. We have achieved this by responding		 • Commitment and cooperation

simultaneously prepare for any attendant risks, we

flexibly to the issues of the day, through the periods

Our Values: Initiative and integrity

should realize that changes can also provideof postwar reconstruction, high and stable growth,

The DBJ Group has created Vision 2030 as aopportunities for great breakthroughs. In order toand the bubble economy and its collapse. In moreguide for fulfilling its unique role in the economy and

Seiji Jige
Development Bank of Japan Inc.
President and CEO

12Development Bank of Japan Inc.
Integrated Report 2022

Development Bank of Japan Inc.
Integrated Report 2022

Message from the President

added value it provides to customers as financial
professionals, in light of its corporate philosophy,
shared values, and dialogue with stakeholders.

Message from the President

Sustainability Management at the
DBJ Group

Value Creation Storysociety through 2030, with the aim of increasing theIn May 2017, the DBJ Group set out its Policy on
Sustainability as a fundamental approach to

Vision 2030 and Priority Areas

contributing to the realization of a sustainable

CEO MESSAG E
society that balances economic and social value.

vision around a longer-term outlook, we gave fresha framework for value creation through businessthought to our roles in the years leading up to 2030.

activities centered on the aforementioned three

In the course of our debate, we identified a number

priority areas. While being guided by the needs ofof changes in the external environment with aour customers and society as a whole, we are

significant impact on our stakeholders: Japan’s

working to create economic and social value.

Medium-Term Management Plan

Resilience & Recovery, Innovation, and Transition /declining population and its climate and energy

Aiming to refine our sustainability management, weIssues faced by society as a whole and theTransformation (GRIT) Strategy as a name for theseissues in the context of the global effort to build awork constantly to improve the value creation

management issues faced by our customers haveinitiatives and policies. While collaborating andsustainable society; intensifying global competition;

process through collaboration and dialogue

become inseparable from one another, amid rapid

cooperating with our stakeholders, we will advanceand innovations in digital technologies such as artifi-

with stakeholders, advancing initiatives to further

changes in conditions around the world andthese GRIT initiatives with the aim of realizing acial intelligence (AI) and fintech. Based on the roles

enhance the value we create. We believe in thegrowing uncertainties in the economy and society.

sustainable society.

we have undertaken and the value we have realized

importance of accelerating our progress toward

The DBJ Group has identified trends that could

over time, we determined the most appropriate

sustainability through dialogue with external

have a major impact on the economy and society

areas in which to use our strengths over the longer

stakeholders, centering around DBJ’s Advisoryand summarized these megatrends as Digitalization,

term in the interests of a sustainable society.

Board and Special Investment Operations

Aging, Internationalization and Sustainability

Monitoring Board.

(D.A.I.S.) (see page 23). Our Fifth Medium-Term

Vision 2030 was the result. Drawn up in 2017,

Climate change is an important issue for almost

Progress on Medium-Term
Management Plan and Fiscal 2021
Results

Management Plan (see pages 16–17) commenced

In fiscal 2021, gross ordinary income totaled ¥218.0

and regional economies as the three priority areas

every company. Our Policy on Sustainability posi-in fiscal 2021 with initiatives and policies tobillion, a new record high that reflected strong(materialities) for the DBJ Group’s initiatives. Our

tions responding to it as one of the most compelling

contribute to a sustainable society by helping our

growth in investment operations from gains oncontributions in these areas will be consistent withpriorities for the DBJ Group, and as a key element

customers resolve their issues. In the Fifth Medium-

divestitures and dividend income from entities that

the Group’s course so far, and we believe they will

for realizing a sustainable society.

Term Management Plan, we came up with Green,

have received funds. Despite being impacted by the

be in line with what society and stakeholders expectfrom us in the future.

Corporate Governance

The sustainability management that we practice isStrategy

In 2015, with the aim of shaping our businessthis long-term vision sets infrastructure, industry,

13

The DBJ Group itself aims to achieve carbon
neutrality by 2050 by addressing management
issues and assisting its customers’ efforts to decarbonize. Through this process, we will contribute toto regional communities and our customers in

the growth of our customers while encouraging

industry and infrastructure, steadily implementing

Business Profit and Loss (Consolidated)

(Billions of yen)

FY2020FY 2021

YoY change

an equitable and responsible decarbonization ofGross ordinary income

164.1

218.0

53.9

each initiative while respecting the views ofindustries and regions while maintaining and sharp-

Loans

91.7

95.3

3.5

stakeholders. We will take the lead in business andening the competitiveness of Japan.

Investment

47.0

106.0

59.0

Fee and commission income

25.3

16.6

(8.7)

Operating expenses(56.7)(58.0)(1.3)

Net ordinary income

107.3

159.9

52.6

0.7

2.3

1.6

Gains on reversal of reserves, depreciation, etc., ofwritten-off claims(34.2)(73.8)(39.5)

Income before income taxes and minority interests

73.8

88.5

14.7

Net income attributable to owners of the parent

45.2

57.6

12.3

market creation by leveraging our capability to

In June 2018, DBJ endorsed the recommenda-

properly evaluate and address a broad range oftions of the Task Force on Climate-related Financial

risks. At the same time, as we look forward to 2030,

Disclosures (TCFD), and began to enhance its

we will fulfill our unique roles in the economy anddisclosure related to the risks and opportunities

society by taking actions during times of crisis andassociated with climate change based on the TCFD

otherwise responding to social demand.

framework. (Please refer to pages 52–55 for detailsof our response to climate change.)

Other extraordinary items

Note: Business categories are those used in our internal business management

Corporate Data

To fulfill our mission, we will work as financial
professionals to enhance the added value provided

14

Development Bank of Japan Inc.
Integrated Report 2022

Development Bank of Japan Inc.
Integrated Report 2022

Message from the President



Message from the President

While continuing to focus on strengthening our risk

profit of ¥57.6 billion (up 27% year on year) throughcapital supply functions, we will concentrate on

for Coronavirus Revival to help customers recover

the booking of dividends and other income.

supporting our customers to take on new

and grow back from the COVID-19 pandemic. In

Regarding progress on the Fifth Medium-Termchallenges and rebuild their finances as theyFebruary 2021, DBJ created the Green Investment

Management Plan, DBJ has provided concentrated

recover and grow back from the pandemic.

Fund to strongly support initiatives that help realize
a greener society. In March of the same year, wefostering an organization where people from diverse
backgrounds can work with inspiration.

Improving Collaboration with
Stakeholders

As a part of its GRIT Strategy, DBJ aims tocapital, a priority area, starting with restaurant andextend a total of ¥5.5 trillion in investments andalso set up the DBJ Innovation and Life Sciences

Lastly, amid rapid changes in the external

hotel businesses that have been affected by theloans over a five-year period, which is around 40%

Fund to support innovation and sharpen competi-

environment, the DBJ Group aims to be an organi-pandemic. By providing risk capital in fields ofof the total for investments and loans during thetiveness in the life sciences industry. At meetings ofzation that constantly monitors the issues faced byinnovation and helping customers reinforce theirmedium-term management plan. In fiscal 2021, DBJ

the Special Investment Operations Monitoring

its customers and regions and tackles them withfinancial foundations and securitize their real estate

made ¥754.4 billion in investments and loans related

Board which convenes twice a year, the opinions ofintegrity, and that takes the initiative on the frontiers

holdings, we have assisted customers as they

to its GRIT Strategy, roughly 40% of the

stakeholders are taken into consideration.

of finance. As a distinctly unique financial institution,

recover from the pandemic and begin to grow again.

approximately ¥2 trillion in investments and loans it

CEO MESSAGE

DBJ is in position to contribute to the sustainablegrowth of Japan through growth among its custom-plan. We have positioned fiscal 2022 as a year for

Development of Human Resources
Focused on Best Practices in
Sustainability Management

producing results under the GRIT Strategy, and we

Sustainability management, a key aspect of the DBJ

our mission as a front-runner in sustainability

intend to engage in more dialogue with customers

Group’s value creation process, relies above all on

management. It is our sincere hope that thisthan in fiscal 2021.

personnel who share the core values of initiative andintegrated report will lead to greater dialogue withintegrity in the pursuit of balancing economic andall of our stakeholders.

believe this represents significant progress in theinitial fiscal year of the medium-term managementsocial value, and who display our four core corpo-

impact of the COVID-19 pandemic and significant

rate values inherited from DBJ’s earliest days.

changes in the external environment, such as inter-

Officers and employees of the DBJ Group havenational affairs and monetary conditions.

obtained the core corporate values of a long-term

ers and across regions.

Engaging in dialogue with stakeholders willremain a crucial endeavor as we continue to fulfill

September 2022

Corporate Governance

In May 2023, DBJ plans to unveil revised financial
targets that take into consideration the lingering

Strategy

assistance to customers through the supply of risk

Value Creation Story

In May 2020, DBJ established the Growth Fund

COVID-19 pandemic, the DBJ Group secured aoriginated, excluding crisis countermeasure loans. I

15perspective, impartiality, public-mindedness, andSpecial Investment Operations

reliability, which have evolved over the years in thecourse of our business. Bolstered by these corpo-

The DBJ Group’s Special Investment Operations arerate values, the Group has consistently risen to

conducted as mandated in revisions made in 2015

meet the challenges of the times.
We believe it is important to have systems inplace that allow employees embodying the Group’sSeiji Jige

these operations, as of March 31, 2022, we havevalues to be highly motivated to perform their duties.



President and CEO

extended ¥998.2 billion in investments and loans toWith many opportunities for study, the entire Groupa total of 152 projects for revitalizing regions andendeavors to train human resources who are able

strengthening the competitiveness of Japanese

to take the initiative and engage in cutting-edge

companies. In addition to supplying growth capital

activities as financial professionals. To bring morethrough collaboration with financing, the Group

flexibility to working patterns, we have introduced

also has an extensive track record in regional

telecommuting and a flex-time work system, and werevitalization projects and is keen to engage in

intend to enhance our paid childcare and caregiving

future initiatives with local financial institutions willing

leave programs. With an eye on improving diversity

to help create distinctive regional communities.

and inclusion across the DBJ Group, we are

our experience in supplying risk capital throughCorporate Data

to the Development Bank of Japan Inc. Act. Utilizing16

Development Bank of Japan Inc.
Integrated Report 2022

Development Bank of Japan Inc.
Integrated Report 2022

Fifth Medium-Term Management Plan

Fifth Medium-Term Management Plan

Progress on Fifth Medium-Term Management Plan
Crisis Response Operations	Supported customers affected by the ongoing COVID-19 pandemic such as restaurants and hotels

Supplying Risk Capital	Assisted customers recovering and growing back from the pandemic through the supply of risk capital for innovative fields, suchas the securitization of real estate, as well as the reinforcement of the financial foundations of companies receiving risk capital

Value Creation Story

Since becoming a joint-stock company in 2008, the DBJ Group has implemented medium-term management plans with theobjectives of increasing the supply of risk capital for integrated investments and loans and of advancing risk management
functions.
Recently, sweeping changes have occurred in demographic and social structures, and social issues have become inseparablefrom the business challenges faced by our customers. While collaborating and cooperating with private financial institutions, the
DBJ Group utilizes risk capital and its knowledge to help customers solve their issues and thereby contribute to sustainablegrowth. Against this backdrop, we formulated as an action plan our Fifth Medium-Term Management Plan*. Due to the still unpredictable impact the COVID-19 pandemic will have on the economy and society, the plan spans five years, longer than the threeyear periods of previous plans.

17* Fifth Medium-Term Management plan Connect and Value Creation—Innovation for Sustainability—

GRIT Strategy

Response to Drastic Changes in the Economy and Society	Extended ¥754.4 billion in investments and loans related to the GRIT Strategy from April 2021 to March 2022 (comprising
approximately 40% of total investments and loans, excluding Crisis Response Operations)

Achievement of Goals with Customers

	Advanced initiatives in regions, such as the operation of and participation in regional councils for decarbonization, and thecreation of sustainability financing, such as transition loans, in investment and loan services

Balance with Social Value

Crisis Preparation

Management
Foundation Strategy

Business Strategy

EnergyInput of management
resources

SectorGRIT Strategy

Industrial fields

Infrastructure fields
Transportation

Urban
development

	Reinforced intellectual capital, human capital and relationship capital via 2050 Growth Strategy Headquarters, raising thelevels of knowledge across the Group and identifying issues from the customer’s perspective in the initial fiscal year of theFifth Medium-Term Management PlanG

New fields

Green

Financial capitalImprove the managementof risks and returnsIncrease sophisticationof capital procurement
methods

Draw out the potential of industries

R

Connect generations

Non-financial capital
Human capital
Train personnel for growth

Resilience &Recovery

Pass on a strong, resilient society to future
generations
Areas rowth of employeesGsupports growth oforganizations

I

Connect regions
Support new regional development

Collaboration and cooperation

T

Transition /Transformation

Create knowledge hift to workstyles
Sadapted to changes inbusiness environment
Relationship capital
Deepen collaborationand cooperation

Vision 2030

Priority areas (materialities)
Infrastructure

Innovation
Financialsoundness

Profitability¥200 billion

Net income
attributable toowners of theparent¥85 billion

Cost ratio*

Total assets

ROA*

ROE*

Risk-weighted
capital ratio*3

32%¥21 trillion

1%

3%

14%

2

DBJ plans to disclose financial targets for fiscal 2025 after revising them in May 2023.
*1 Excludes credit costs*2 Cost ratio and ROA versus gross ordinary income. ROE versus net income*3 Common equity Tier 1 capital ratio (estimates on a finalized Basel III basis)

2

GRIT
Strategy

Regions2

Realization ofsustainability

2050

Green
Initiatives to become carbon neutral
with established technologies

Resilience & Recovery
Building of flexible yet strong
industrial foundations as well as safe
and secure regions and society

Innovation

Financial Targets

Gross ordinary
income*1

IndustryPublic–private
collaboration andpartnerships

Monitor industries and regions and provide information

Fiscal 2025
targets(consolidated)

Supportwith integrated
investments
and loans

Initiatives for innovations that arecommercially feasible from along-term perspective

2030

2050 Growth
Strategy
Headquarters

Green(Promotion of
GRIT Strategy)

Resilience &Recovery

2020

Transition /Transformation

Transition / Transformation
Strategic initiatives to steadily leadtransition toward carbon neutrality
and other goals, based on current
business foundation

Corporate Data

Outcomes ofbusiness activities

Functions

Knowledge

In line with its long-term vision, the DBJ Group devised the GRIT Strategy as a core action for 2030, with the aim ofcontributing to the realization of a sustainable society by 2050 through the advancement of initiatives to marshal resources.
While starting with the specific needs of customers, the GRIT Strategy aims to build industry foundations as well as resilient,safe, and worry-free regions and communities, along with the realization of a green society. Toward this goal, the DBJ Groupis engaged in initiatives for innovations that can be commercialized and objectively assessed, as well as strategic initiatives forthe transition to a sustainable society on the basis of its current business base. To advance the GRIT Strategy, DBJ set up the2050 Growth Strategy Headquarters, directly led by the president.

Intellectual capital
Reform approaches
to workInnovation

Reinforce platforms for supplying risk capital

G R I T Strategy
Corporate GovernanceConnect industries

Create value

Strategy

Changes for the Future

18

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Integrated Report 2022

Development Bank of Japan Inc.
Integrated Report 2022

Key Initiatives toward Realizing Sustainability

Key Initiatives toward Realizing Sustainability

Sustainability Committee

History of Sustainability at DBJ

Reporting to the Executive Committee, the Sustainability Committee deliberates on items related to both economic and social
value as well as dialogue with stakeholders, in addition to policy responses and initiatives for various sustainability-related issues,
including climate change.

In tune with the changing times, the DBJ Group has assisted businesses with sustainability, including environmental stewardship,
ever since the time when Japan began to seriously address the problem of industrial pollution.
1990–

Events inside and outside Japan
1953
1958

DBJ initiatives

Minamata disease

Creation of pollution prevention loan programs

Act on Regulation of Factory Effluent

1960

Wastewater treatment loan program

1963

Soot prevention loan program

Events inside and outside Japan
1993

Basic Environment Law

2000	Basic Law for Establishinga Recycling-Based Society

1967	Basic Law for Environmental

1970

Flue gas desulfurization loan program

2002
2003

1975	Resource recycling and energy

Oil crisis

conservation loan programs

1985	Vienna Convention for the Protection

1988

Ozone layer protection loan program

Global Financial Crisis

2011

Great East Japan Earthquake

2015

Creation of comprehensive loan programsfor environmental measures

DBJ will advance initiatives from the customer’s perspective based on its
GRIT Strategy under the Fifth Medium-Term Management Plan to realize
a sustainable society.

1993	
Established Research Center on
Global Warming

2004	
Environmentally Rated Loan

GRIT Strategy: Realization of a sustainable society

Program launched2006E nterprise Disaster Resilience Loan
Program launched

2011

B CM Rated Loan Program launched

2011

D BJ Green Building Certification
Program launched2012E mployees’ Health Management
Rated Loan Program launched

UNEP FI Global Roundtable, Tokyo

2008

DBJ is implementing the following initiatives in accordance with Vision 2030 and the Fifth Medium-Term Management Plan.

Paris Agreement

G reen:Initiatives to become carbon neutral with established technologies
Promotion of the GRIT
Strategy

with Engagement Dialogue created

Strategic initiatives to steadily lead the transition toward carbon neutrality andother goals, based on the current business foundation
With the aim of promoting the use of renewable energy, DBJ has engaged in theimplementation of solar and wind power generation projects in Japan andparticipated in advanced case studies overseas.

P 24

Initiatives in DBJ Green
Building Certification

Established in 2011, DBJ Green Building Certification recognizes buildings withexceptional consideration for society and the environment and provides support
to those who own and operate such real estate.

P 28

Issuance of DBJ
Sustainability Bonds

DBJ became the first issuer of green bonds in Japan in 2014, and has beenissuing sustainability bonds each year since 2015.

P 45

Endorsement of the
Poseidon Principles

DBJ has become a signatory to the Poseidon Principles, a commitment to help
address climate change in the marine transportation industry from a financial
perspective.

P 22

Initiatives in evaluation­certification programs

DBJ supports the efforts of its customers on issues related to the environment,
disaster prevention, and health management, through a menu of investments
and loans that take into account a company’s non-financial information, using
DBJ’s proprietary screening system. It has also created DBJ Sustainability
Linked Loans with Engagement Dialogue as a way to improve the visibilityof customer initiatives on sustainability through dialogue.

P 20

Adoption of the Equator
Principles

In accordance with the Equator Principles, DBJ will identify the environmental
and social risks associated with a project, assess their impact, and request thatthe project operator take the necessary measures to mitigate these risks andtheir impacts.

P 54

Initiatives based on the TCFD
recommendations

DBJ aims to become carbon neutral by 2050 and is advancing initiatives basedon the results of analysis of the scenario where average global temperaturesrise more than 2°C. It is also considering scenarios for achieving a carbon-freesociety (i.e., the scenario where average global temperatures rise less than 2°C),
identifying risks and opportunities along the way.

P 52

Contribution to a sustainable society
Sustained growth of customers
Self-reliant development of regions
Cooperation with employees
Invigoration and stabilization of f­ inancial markets
Engagement with investors

https://www.dbj.jp/en/sustainability/management/regular.html
Please refer to the DBJ website for details on our Policy on Sustainability.

Environmental and Social Management Policy for Financing and Investment Activity
DBJ has formulated the Environmental and Social Management
Policy for Financing and Investment Activity for businesses and sectors with a strong likelihood of having significant risks related to or
negative impacts on the environment and society, in the interest ofproviding environmentally and socially sound investments and loans.
This policy was put into practice in October 2021 and will be revised
as deemed necessary in fiscal 2022.

Businesses subject to this policy
Businesses prohibited from receiving investments andloans regardless of sector
Businesses that require additional due diligence forinvestments and loans regardless of sector
Policies for specific sectors (weapons, coal-fired thermal
power generation, palm oil, lumber, coal mining, oil andgas, large-scale hydroelectric power)

https://www.dbj.jp/en/sustainability/effort/resolution/investment.html
Please refer to the DBJ website for more information about the Environmental and Social Management
Policy for Financing and Investment Activity.

Corporate Data

Initiatives in renewableenergyCorporate Governance

Financial capital and non-financial capital

P 17

T ransition / Transformation:

Policies
Sustainability management

Building of flexible yet strong industrial foundations as well as safe and secure
regions and society
Initiatives for innovations that are commercially feasible from a long-term
perspective

Policy on Sustainability
To realize its mission of pursuing sustainable development for Japanand the world, the DBJ Group strives to achieve both economic andsocial value through its unique business activities by embracing
sustainability management. In 2017, we formulated our Policy on
Sustainability as a part of our efforts to continue to proactively
engage in dialogue with all stakeholders and to enhance our value
creation process.

R esilience & Recovery:

I nnovation:2020	
DBJ Sustainability Linked Loansof the Ozone Layer

Strategy

1973

Air Pollution Control Act

DBJ initiatives

Kyoto Protocol

Pollution Control

1968

Key Initiatives

Value Creation Story

We have tackled sustainability-related issues since the Japan Development Bank era, and engage in a variety of initiatives to realize
a sustainable society through a business model built around integrated investments and loans, and consulting and advisory services.

1950–

19

20

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Development Bank of Japan Inc.
Integrated Report 2022

Key Initiatives toward Realizing Sustainability



Dialogue with Customers

Sustainability Management Consulting Services

In fiscal 2020, we joined the UNDP’s SDG Flag Campaign with the objective of visualizing social issues and improving sustainability
literacy within the Group. Through SDG Flag, we will continue moving ahead with initiatives to advance the visualization of social
value in line with our strategy of realizing a sustainable society, outlined in our Fifth Medium-Term Management Plan, which started
in fiscal 2021.
Through the advancement of our GRIT Strategy based on these categories, we are contributing to the attainment of SDGs.

Transition Business Promotion Office
DBJ established the Transition Business Promotion Officeunder the Business Planning & Coordination Department inApril 2022 as an organization tasked with promoting
investments and loans to help with the transition to carbon
neutrality, based on our belief in the importance of providing
consistent support for an open and responsible transition tocarbon neutrality while engaging in dialogue with customers.
We will encourage the use of hydrogen and ammonia, newsources of energy that will be important in this transition,
along with storage batteries. We will go beyond efforts to help
individual companies as, while we believe that it is important
to collaborate and move forward with them, we must also
factor in the unique characteristics of regional areas and adiverse range of related industries and parties. The Transition
Business Promotion Office aims to advance cross-regionaland cross-sector efforts to transition to a carbon-free society
while consolidating knowledge of each sector.
In addition, DBJ is strengthening the development of its
sustainability management consulting services (described on
the left) and offering tailor-made consulting services anddiagnosis of sustainability management for its customers.
Working in tandem with our investments and loans functions,through consultancy and deeper conversations with customers, we aim to assist them with business transitions.

GR I T

Green

Resilience &RecoveryInnovation

Transition /Transformation

Achievements in Fiscal 2021
Scope:	Fiscal 2021 investments and loans
Total amount:	¥3,222.6 trillion
Calculation method:	The following process was used by
all DBJ employees.
STEP 1 Select up to two SDGs categories for each

person in charge to contribute to
STEP 2 Check fairness of mapping (reviewed by aspecial department)
STEP 3 Express monetary amounts (verified twice) infive stages

More than ¥1.0 trillion ¥0.5–¥1.0 trillion ¥0.1–¥0.5 trillion Less than ¥0.1 trillion 

Track Record in Sustainability Finance
Environmentally
Rated Loan Program

No. of deals in fiscal 2021
(cumulative)
Total amount of loans

BCM Rated
Loan Program

Employees’ HealthManagement Rated
Loan Program

DBJ Sustainability
Linked Loans
with Engagement
Dialogue andtransition loans

Total

29
(748)

25
(421)

18
(252)

7
(9)

79
(1,430)¥1,668.4 billion¥536.0 billion¥332.0 billion¥85.5 billion¥2,621.9 billion(Note: Crisis countermeasure loans in fiscal 2021 are counted
as initiatives that contribute to SDG 9: Build resilient
infrastructure, promote inclusive and sustainableindustrialization and foster innovation.)

Corporate Data

DBJ provides its customers with tailor-made consulting
services in addition to a diagnosis of their overall sustainability
management. Through these services, we help our customers
maintain and update the foundations of their sustainability
management, from formulating long-term visions andidentifying materiality, to adopting the recommendations of
the Task Force on Climate-related Financial Disclosures(TCFD).

Challenges uniqueto JapanCorporate GovernanceTransition loans are a form of financing designed to help
companies reduce greenhouse gas (GHG) emissions basedon their long-term strategies. By helping customers address
climate change, we are moving toward the realization of acarbon-free society.

Sustainability linked loans are financing that encourages thesustainable growth of borrowers and society by linking loan
terms and conditions to the achievement of sustainability
performance targets (SPTs) that align with the sustainability
strategies of borrowers.
DBJ Sustainability Linked Loans with Engagement
Dialogue support customers’ achievement of SPTs,
determining through dialogue the optimal motivational targets
for increasing the sophistication of their sustainability
management. Through the dialogue process, customers gain
a visual map of their sustainability initiatives, which has theadded benefit of providing them with a publicity boost.

Strategy

Transition Loans

DBJ Sustainability Linked Loans withEngagement Dialogue

DBJ contributes to the creation of a sustainable society aligned with the Sustainable Development Goals (SDGs) by providing
professional, innovative approaches to resolving various issues faced by its customers in important domains (infrastructure, industry, and regions) that it has defined through dialogue with stakeholders and its experience to date.
While helping customers resolve the issues they face, the DBJ Group has identified nine SDGs that it can contribute to as aGroup, as well as other challenges unique to Japan, an advanced country with issues that do not fit neatly into the categoriesof the SDGs.

Value Creation Story

The DBJ Sustainability Evaluation Certification Program is amenu of financing options based on the non-financial
information of companies screened with DBJ’s proprietarysystems.
Having launched the world’s first environmentally rated
loan program in 2004, DBJ introduced the BCM Rated Loan
Program in 2006 and the Employees’ Health Management
Rated Loan Program in 2012.
The most important feature of these programs is theevaluation process, which emphasizes direct dialogue withcustomers. We engage in conversations with clients about
their initiatives in order to fill in gaps around publicly available
information. Once the evaluations are complete, DBJ provides
clients with feedback on the results, using this as an opportunity to point out issues that need to be addressed and help
management step up their practices.

Key Initiatives toward Realizing Sustainability

Improvement in Corporate Value through Visualization of Social Value

The DBJ Group has honed its ability to engage in dialogue with its customers on non-financial matters to help them attainsustained growth while working to solve social issues.
DBJ Sustainability Evaluation Certification Program21

Development Bank of Japan Inc.
Integrated Report 2022

Development Bank of Japan Inc.
Integrated Report 2022

23

Invigoration and Stabilization of Financial Markets throughPartnerships and Collaboration

Key Initiatives toward Realizing Sustainability

The DBJ Group provides unique solutions through optimal partnerships, emphasizing cooperation andParticipation in Initiatives

collaboration with other financial institutions and non-financial companies.

Sweeping structural changes

Creating Educational Textbooks and E-Learning Classes

Fin
a

sR

esp

on

Governmentt

C ri si

Regional financial
institutions
Major financial
institutions
SRI bonds

vices

Bonds and loans
Joint funds

iso

ry

ser

IT andfoundations

dv

A

Investors
Asset management

Risingawareness ofsocial valueAsset

ma na gemen t

 risis Response Operations andCSpecial Investment Operations

	Backed by its experience and knowhow in industrial and infrastructure
fields as well as in risk analysis andstructuring, the DBJ Group creates
added value through the provision ofknowledge in such forms as surveys
and analyses.

	Crisis Response Operations andSpecial Investment Operations aremandated by the DBJ Act and areproperly undertaken as operations
backed by the unique strengths of
the DBJ Group.

Supply of Risk Capital by the DBJ Group

DBJ has set up a GRIT and sustainability portal on its intranet as a central place for gathering
information about domestic government policy, overseas trends, and DBJ Group initiatives. We areworking to improve sustainability literacy across the entire organization using the latest information.
GRIT / sustainability portal

Implementation of Training within DBJ

DBJ’s financing operations address diverse risks, including loan
and investment operations such as crisis response loans for
emergencies (see pages 38-39), and risk-tailored project
financing (¥14.5 trillion balance), as well as Special Investment
Operations (see pages 36-37), such as operations to supply
risk capital, like investments and mezzanine financing (about¥2.5 trillion), out of the DBJ Group’s balance of investments
and loans (about ¥17.0 trillion).

DBJ Asset Management Co., Ltd. (DBJAM) has ¥2.1 trillion
in capital entrusted by investors, regional financial institutions,and other clients desiring expert fund management. In its workin asset management, DBJAM focuses on assets that allow the
DBJ Group to best apply its strengths. Combined with theentrusted assets at DBJAM, the entire DBJ Group handles
approximately ¥4.6 trillion in risk capital. We will continue toenhance the supply of risk capital in order to better meet thediverse needs of our customers.

Mezzanine financing

Investments¥0.8 trillion*2¥1.7 trillion

Loans

DBJAM (AUM)¥14.5 trillion¥2.1 trillion*1(including Crisis Response Operations, structured-financing and asset-financing projects)

In fiscal 2021, DBJ held 12 training sessions for executives and employees at the 2050 Growth
Strategy Headquarters Meeting, examining important matters and sharing knowledge within theGroup. We invited attorneys to lead study sessions about business and human rights as a part ofefforts to spread the latest specialized knowledge to all employees.

(As of March 31, 2022)¥17.0 trillion¥2.5 trillion
Seminar on business and human rights¥4.6 trillion*1 Portions entrusted by DBJ are eliminated from DBJAM’s assets under management (AUM).
*2 Overlapping portions for crisis response projects and structured financing projects are eliminated from mezzanine financing.

Corporate Data

GRIT and sustainability textbooks

Updates to Information Aggregation Systems



Government
investments and loans

Corporate GovernanceTraining Human Resources to Support Sustainability Management

es

Strategy

DBJ has endorsed the Ministry of Economy, Trade and Industry’s green transformation initiative,
GX League, to facilitate collaboration between industry, government and academia as companies
strive to grow whilst attempting to implement green transformation, keep pace with changes insociety, and move toward carbon neutrality by 2050.

Surveys andconsulting
services

Provision of Knowledge

	DBJ receives funding in various
formats, including the procurement
and management of funds frominstitutional investors and financial
institutions in Japan and abroad. We
use these funds to supply risk capitalto domestic and overseas customers
in the industrial and infrastructure fields.

In v

Investments
and loans,asset
managemente

Initiatives in Decarbonization: Endorsement of GX League Basic Concept	Procurement and Managementof Fundsi al(i n d I nv e
u st s t mri alOverseasbases

dg

DBJ proactively participates in the Taskforce on Nature-related Financial Disclosures (TNFD)
Forum with the awareness that protecting natural capital and biodiversity and addressing climatechange are equally important in realizing a sustainable society.

S

Addressing
sustainability

Addressing sustainability

Spec

ons

Group Companies

wle

Sustainability

Initiatives in Natural Capital and Biodiversity: Participation in TNFD Forum

Developing businessoverseas

O

Kno

I

Poseidon Principles Annual Disclosure Report 2021

In order to accelerate its GRIT Strategy and promote sustainability management, DBJ has created
textbooks about GRIT and sustainability, with a glossary of terminology and facts compiled fromrelevant organizations within the Group. Group employees take e-learning classes, taking note of pastsustainability trends and sharpening their understanding of terminology. These educational programs
increase shared awareness of sustainability throughout the Group and inform more engaging
dialogue with customers and related parties.


Response to decline inworking-age population

International

While collaborating with global financial institutions, DBJ has endorsed
the Poseidon Principles, a framework for the marine transportation
sector to address climate change. Every year, we disclose our level ofcontribution to the reduction of GHG emissions through our portfolio ofinvestments in and loans for ships.


movements
accelerated during
pandemic

Initiatives to Address Climate Change: Endorsement of Poseidon Principles

A

se

a ti
p er

in

Aging

in g

s
ts
a tio nenper )t O e nt
e n v e st m

DISCLOSURE INSIGHT ACTION

financing sustainable developmentncm

ADFIAP

Utilization and development for
digital transformation business

Customers’
point of view

Social issues same as management
issues faced by customers

Recovery fromCOVID-19
pandemic,
growthDigitalD

Financial
institutions andoperatingcompanies

Collaboration andcooperation

Value Creation Story

D.A.I.S.

D and S

22

24

Development Bank of Japan Inc.
Integrated Report 2022

Business Strategy

Development Bank of Japan Inc.
Integrated Report 2022

Sector Strategy

25

Energy Sector

Rebuilding and Reinforcement of Infrastructure

Energy Sector
Main Business Fields
The DBJ Group provides financing and advisory services tocompanies and projects in the following sectors.
Electricity

Gas

Oil

Balance of Loans in the Electricity, Gas, Oil Refinery,Heat, and Water Sectors
As of March 31, 2022

¥3.2 trillion

	Changes in macro structure, such as population
	Response to climate change-related issues:		Declaration of 2050 carbon neutrality, reduction ofgreenhouse gas (GHG) emissions by 46% by fiscal 2030

­ ialogue. While maintaining relationships built up withdcustomers in the energy sector, the Group is concentrating on
smoothly providing financing, including risk capital, with theproactive inclusion of new financing methods that are highly
compatible with environmental, social, and governance (ESG)
criteria. In particular, we are coordinating with other financial
institutions to meet demand for capital for renewable energy
projects based on the transition financing road maps ofindividual companies. Through these initiatives, the DBJ
Group supports industry-wide innovation and efforts toward
carbon neutrality.
Overseas, the DBJ Group is involved in investments andloans for renewable energy projects in a bid to help realize
decarbonization at a global level. Utilizing the experience andknowledge it has gained through transactions in leading
markets, the Group assists with the transformation of theindustry structure in Japan and helps companies strengthen
their competitiveness.
Moreover, through asset management operations in theenergy sector, the DBJ Group endeavors to nurture markets
that bring together the capital of institutional investors and tocreate investment opportunities that move Japan and the restof the world closer to carbon neutrality.

	Impact from rising resource prices worldwide, higher
energy costs
	Tight supply–demand balance for electricity, stable supplyof electricity

G R I T Strategy

Project Spotlight

Corporate Governance		Growing importance of transition financing road maps toachieve targets

StrategySocial Issues

In recent years, the movement toward decarbonization
across Japanese society has accelerated. In October 2020,
the Japanese government declared its target of achievingcarbon neutrality by 2050. In April 2021, it unveiled its target
for reducing GHG emissions by 46% by fiscal 2030, before
aiming for an even higher reduction of 50%. In February 2022,
the Ministry of Economy, Trade and Industry announced atransition financing road map for the electricity, gas, andoil sectors, and Japanese companies began to examine
concrete transition pathways to a decarbonized society.
However, there are still many challenges in Japan’s energy
supply–demand structure. With nuclear power plants stilloffline, energy facilities built during Japan’s period of rapid
growth have deteriorated with age, raising concerns about
the tightness of supply–demand conditions for electric power.
Moreover, rising resource prices around the world, due in partto Russia’s invasion of Ukraine, are also a problem. There aremany issues that need to be directly addressed from multiple
angles, such as ensuring energy security, curbing energy
costs, and securing a stable supply of energy.
With such issues accumulating in the energy sector,
the DBJ Group is working together with customers directly
affected by these issues to find solutions through deeper

Value Creation Story

The DBJ Group will contribute to therealization of a decarbonized society worldwide
and to the growth of Japanese energy companies by taking a leadership role in the financingof transformation in Japan’s energy markets.

Strategy	Trends in decarbonization technologies and innovations
	Progress in digitalization

Risks and Opportunities

	Possibility that initiatives to transform industry structuresand energy supply–demand structures will lead to stronger
industrial competitiveness and further development of Japan	Opportunities arising from innovation on software andhardware fronts

In June and July 2021, the DBJ Group, along with The Kansai Electric Power Co., Inc., and Osaka Gas Co., Ltd., acquired
four renewable energy plants in Japan from Etrion Corporation, a Canadian renewable energy company.
The Kansai Electric Power Group and the Daigas Group are promoting efforts that contribute to the environment, withthe aim of achieving carbon neutrality by 2050 throughinitiatives to own, spread, and expand solar power andother renewable energy resources.
Beginning with joint investments with these twocompanies, the DBJ Group is assisting customers’
efforts toward carbon neutrality by 2050 through the
supply of risk capital for renewable energy projects,
such as solar and wind power generation projects, both
domestically and internationally.

Shizukuishi Solar Power Plant

https://www.dbj.jp/case/list/?field=energy
Please refer to the DBJ website to see examples and case studies (Japanese only)in the energy sector.

Corporate Data

	Delays in the transformation of industry structures and the
supply–demand structure for energy to address changes in
the global environment, decarbonization, and the acceleration of digitalization

Contributing to the Realization of a Carbon-Neutral Society throughStrategic Joint Investments in Renewable Energy

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Transportation Sector

Rebuilding and Reinforcement of Infrastructure

Transportation Sector
Main Business Fields
The DBJ Group provides financing to companies and for­projects in the transportation sector.
Land transportation

Marine transportation

Air transportation

Balance of Loans in the Transportation Infrastructure(Transportation Industry) Sector¥3.2 trillion

Proactively contributing to global-scale frameworks for
decarbonization will be essential for facilitating the borderless
movement of people and goods. The DBJ Group became asignatory to the Poseidon Principles to contribute financial
resources for addressing climate change in the marinetransportation sector, which will be key to achieving theInternational Maritime Organization’s targets for reducing GHG
emissions over the medium and long term. To truly
understand the issues faced by its customers, the DBJ Groupwill continue to offer financial solutions tailored to diverse
needs and act as a bridge between the global transportation
financing market and Japan’s financial market.

Strategy

As of March 31, 2022

While maintaining relations with customers in thetransportation sector, we will refine our ability to respondflexibly to changes in the external environment and society.
More specifically, the DBJ Group will further strengthen its
optimal financing solutions for quality projects and assets inthe land, marine, and air transportation fields, as well as
supply risk capital to Japanese companies for sharpening
their international competitiveness.
Additionally, the Company will provide financing
opportunities to Japanese regional banks and other financial
institutions and investors in the global transportation financing
market through improved syndicated loans. Additionally, the
DBJ Group will focus on providing a range of investment
products based on transition financing and investment.

Value Creation Story

The DBJ Group aims to provide financial
leadership for the growth of the transportation
sector and advancement of transportation
networks in Japan. DBJ will also act as abridge between Japan’s financial market andthe global transportation financing market.

StrategySocial Issues
	Impact of the COVID-19 pandemic	Shrinking population, declining birth rate, and aging
population

	Increase in movement of people and goods, creation of
new services, and reduction of environmental burdens onpath to upgrade transportation infrastructure

Risks and Opportunities	Sustainable growth in transportation sector, solutions toproblems for making networks more advanced	Proactive contributions to global frameworks for
decarbonization

G R I T Strategy

Project Spotlight

Arrangement of Syndicated Transition Loan for Mitsui O.S.K. Lines to
Acquire Two LNG-Fueled Ferries

Please refer to the DBJ website to see case studies (Japanese only) in the transportation sector.

Corporate Data

Mitsui O.S.K. Lines, Ltd. (MOL), a leading shipping company in Japan, unveiled in June 2021 the MOL Group
Environmental Vision 2.1, setting an industry-leading goal of achieving net-zero emissions for the entire MOL Group by
2050 by introducing 90 LNG-fueled vessels by 2030 and around 110 net-zero emissions vessels by 2035. As a part of thisstrategy, the MOL Group was the first company in Japan to introduce two LNG-fueled ferries (the Sunflower Kurenai and
the Sunflower Murasaki) for service on the Osaka–Beppu
route. The DBJ Group arranged a syndicated transitionloan with 11 banks centered on regional financial
institutions located in western Japan, near the plannedroutes for the ferries and the shipyards where the vessels
will be constructed. This is the first transition loan
selected by the Ministry of Economy, Trade and Industry
as a Climate Transition Finance Model Project. By
arranging this loan, the DBJ Group provided financial
support for the decarbonization of the maritime
transportation sector and the MOL Group.

MOL’s Sunflower Kurenai

https://www.dbj.jp/case/list/?field=transport

Corporate Governance	Maintenance of safe, secure, and sustainable transportation
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Sector Strategy29

Urban Development Sector

Rebuilding and Reinforcement of Infrastructure

Identifying and taking social issues into
account, the DBJ Group contributes to thedevelopment of the real estate financemarket, growing alongside cities by offering
appropriate support with the maintenance,
upgrading, and expansion of urban functions.

Main Business Fields
The DBJ Group provides loans and investments in urban development projects undertaken by developers, special-purpose
companies for owning real estate, loans and investments forreal estate investment trusts (REITs), and management of DBJ
Green Building Certification with the Japan Real Estate Institute.
Urban development business

Real estate financing

DBJ Green Building Certification

As of March 31, 2022

¥1.9 trillion

Social Issues
	Changes in social values due to decline in working-age
population, workstyle reforms

important role of connecting real estate, a local asset, toglobal financial markets through its locally based ability togather information, forge relationships, and respond to issues.
In the ESG field, since 2014, DBJ and Japan Real Estate
Institute (JREI) have continued to jointly operate DBJ Green
Building Certification, which was created in 2011 as a system
to evaluate and certify real estate from an environmental andsocial perspective. We will reflect real estate value in thecertification system while continuing to promote the spread of
DBJ Green Building Certification in partnership with JREI.
Arc Japan Inc. (Arc Japan) was established in 2021 as acompany engaged in the data platform business foradvancing the decarbonization of society through the monitoring of environmental impact in real estate. The DBJ Groupand Arc Japan provide frameworks that improve the visibilityof the environmental performance of real estate and efforts toimprove lead to financing, in a bid to improve the sustainabilityof domestic real estate and support the decarbonization ofsociety.

Corporate Governance	Changes in lifestyle environments amid declining birth rate
and aging population
	Social and economic changes due to COVID-19 pandemic	Response to globalization and sharpening international
competitiveness of cities
	Response to climate change, energy conservation andcreation in real estate, decarbonization

G R I T Strategy

Strategy

Balance of Loans in the Real Estate Sector

The DBJ Group will facilitate urban development through the
supply of risk capital, including financing for developers,
REITs, and individual development projects. The field of urban
development is large in business scale, and it has a major
impact on society through investments, loans, and real estate
management because of its broad reach that affects the
livelihoods of people in Japan. Companies, society, people’s
lifestyles and the entire urban development field are being
affected by declining birth rates, an aging population, thedeclining working-age population, and climate change. The
business models of our customers may also have to change
rapidly. In an environment with such growing uncertainties, for
the urban development sector seeing cyclical, long-termchanges in value alongside changes in the social landscape,the DBJ Group believes it is essential to take a long-term,
public perspective in projects and nurture the social trust it
has gained through public-mindedness over many years.
While considering these value systems, we provide
multifaceted and comprehensive financial solutions for ourcustomers.
With diverse investors becoming involved in global realestate investment, the DBJ Group will play the increasingly

Value Creation Story

Urban Development Sector

Strategy

Project Spotlight	Addressing of environmental, social, and governance (ESG)
issues, including strengthening resilience of cities
	Response to technological innovation (smart cities, etc.)	Need to redefine value proposition and meaning of realestate (offices, etc.) amid declining working-age populationand changes in social values	State of new community creation envisioning changes insociety and the economy (housing, retail, logistics, tourism, etc.)
	Acceleration of ESG and digitalization initiatives and new
business creation in real estate sector

https://www.dbj.jp/en/case/list/?field=development
Please refer to the DBJ website to see examples and case studies in the urban development sector.

https://www.dbj.jp/en/service/program/g_building/Please refer to the DBJ website to see more information about DBJ Green Building Certification.

In conjunction with regional financial institutions, the DBJ Group invested ina special purpose company (SPC) created to develop an environmentallyfriendly office building with a mixed wood and steel structure in Sendai City.
To realize a sustainable society, in the real estate sector, expectations aremounting for companies to reduce CO2 emissions throughout the life cycleof a building, including construction, usage, and the manufacture anddisposal of materials. Using wood for building construction has less impact
on the environment than fabricated materials, and the carbon storage effectof wood itself is a promising way to reduce CO2 levels. The forestry
industry, however, also needs support with improving its supply chain.
The SPC was set up to advance innovative efforts by concentrating themanagement resources of project participants. In addition to sharpening
competitiveness, this project aims to strengthen supply chains by improving
systems for supplying wood materials and to help revitalize regional
economies. The DBJ Group provides assistance for this project through its
Green Investment Fund, a funding framework in the Special Investment
Operations scheme.

Corporate Data

Risks and Opportunities

Investment in SPC to Develop a Wooden Office Building in Sendai City

Perspective diagram for the project in Kokubuncho,
Sendai City

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Industrial Sectors

Creation, Conversion, and Growth in Industry

Industrial Sectors
Main Business Fields
The DBJ Group provides financing and advisory services forcompanies and projects in industrial sectors.
Manufacturing

Communications, broadcasting, media

Retail and foods

Healthcare

Hotels, Japanese-style inns, tourism, etc.

	Response to changes in industrial structure on pathway
toward carbon neutrality

carbon recycling and resource recycling, while providing risk
capital and advisory services to customers reforming theirbusiness portfolios with the aim of accelerating the movement
toward carbon neutrality. We also provide financing andknowledge for initiatives to develop technologies related tohydrogen, ammonia, and other carbon-free fuels, as well as
to advance next-generation air mobility. Moreover, we offer
support from both financing and knowledge angles for digitaltransformation initiatives in each industry and projects
to update information and communications technology
infrastructure, the needs for which are increasing due to
5G, the Internet of Things, and similar technologies.
To realize this, the DBJ Group will strengthen teamcapabilities by deepening internal collaboration and improving
the skills of individual employees, with a focus on their ability
to make proposals.

StrategySocial Issues

Backed by our deep specialist knowledge of the industrial
sectors we cover and of individual customers, we fully
leverage our unique network rooted in various financing
functions, knowledge, utility, and neutrality to support ourcustomers and resolve issues in diverse fields. Such customer
support encompasses assisting with growth, sharpening
competitiveness, rebuilding business portfolios, developing
new businesses, generating business overseas, collaboratingwith other companies and sectors, optimizing capital policies,and cooperating with government industrial policy.
In 2020, DBJ established the Chief Industry Strategy Office
to oversee the Corporate Finance Department, Division 1, andCorporate Finance Department, Division 2, with the aim ofcreating new industries across sector boundaries. This officewill tackle issues that are common among industries in order
to connect disparate industries across existing boundaries
related to innovation, sustainability, and business transition.
In response to efforts toward carbon neutrality, the DBJ
Group offers sustainability financing that assists activities inValue Creation Story

In industrial fields with accelerating initiatives
across existing sector boundaries, such as
restructuring and tie-ups across sectors, the
DBJ Group contributes to the reinforcementof Japan’s industrial competitiveness as an
incubator that creates new businesses andmarkets.

Strategy	Securing of a strategic domestic industrial foundation

	Inadequate support for start-ups

Risks and Opportunities
	Innovating in financial technologies, such as fintech
	Providing unique added value to solve issues for customers
	Reinforcing business foundations through measures such asindustry restructuring	Promoting innovation for commercializing new technologies	Supporting start-ups and other venture firms

Project Spotlight

Contributing to Realization of­Plastic-Recycling Society through
Capital Participation in R Plus JapanThe DBJ Group invested in R Plus Japan, a company working to develop
and commercialize technologies for recycling used plastic.
In recent years, attention has increasingly focused on the impact ofplastic on marine life and on the large amounts of CO2 that are emitted
when plastic is produced and discarded. More attention is being paid to the
Dialogue with R Plus Japan
recycling of used plastic and other methods for solving this social problem.
Using the technologies being developed by R Plus Japan, it may be possible to recycle plastic efficiently with low
environmental impact, by using a streamlined recycling process to limit CO2 emissions and energy consumption comparedwith conventional recycling technologies.
By investing in R Plus Japan, the DBJ Group is helping to strengthen the competitiveness of industry while moving
another step toward a plastic-recycling society.

Society 5.0 Investment Program
The Society 5.0 Investment Program is a framework for investing in
activities that contribute to the creation of a more sustainable society, whileaiming to create new industries with new value systems to solve social
issues in Japan. It has invested in four companies since its creation in 2020.
• Society 5.0 calls for a human-centric society that balances economic development with solvingsocial issues, using advanced systems that combine cyberspace and physical space.

https://www.dbj.jp/case/list/?field=industry
Please refer to the DBJ website to see examples and case studies (Japanese only)
in industrial sectors.

Company name
Exergy Power
Systems, Inc.
SkyDrive Inc.
CROSS SYNC INC.
FLOSFIA Inc.

Business domain(new sector classifications)
Next-generation nickel–hydrogen storage batteries(batteries × services)
Flying cars and drones(automobiles × aircraft)
Remote ICU and medical
digital transformation(healthcare × digital)
Next-generation power
semiconductors(materials × energy)

Corporate Data	Creating new industries through industry-wide initiatives

G R I T Strategy

Corporate Governance	Promotion of innovation with scientific technologies toensure Japan’s technological edge

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Area Strategy

33

Regions

Self-Reliance and Revitalization of Local Economies

Regions

Strategy
Collaboration with Regional Financial Institutions

The DBJ Group provides solutions forregional issues, connecting regions throughout Japan to Tokyo, domestic regions tothose overseas, and regions the world overto each other.

OutlineThe DBJ Group provides services tailored to thecharacteristics of the respective regions in Japan from 10
branches and eight representative offices across the country.
Investments and loans

Consulting services

Planning and research services

Provision of Overseas Information on M&A Deals, etc.

Total No. of Business Alliances with Financial Institutions
As of March 31, 2022

Recently, we held three series of DBJ Sustainability Seminars for regional financial institutions across Japan, covering a wide rangeof topics specific to their fields, amid increasing expectations for regional financial institutions to act as drivers of sustainability intheir regions. We also offer consulting services that help the customers of regional financial institutions introduce sustainability
management. In addition to finance, the DBJ Group disseminates information and provides consulting to support the resolution ofregional issues in collaboration with regional financial institutions.

Value Creation Story

We provide the following services to support new regional developments.

111

Strategy

As a part of our efforts to revitalize regions through regional financial institutions, we create merger and acquisition (M&A)
opportunities for regional companies through our M&A network of regional banks to address various management issues, such ascarbon neutrality, business restructuring, and succession at regional companies, as well as the expansion of business domains,
including overseas.

Provision of Knowledge

Social Issues
	Medium- to long-term decline in population
	Impact of COVID-19 pandemic on industries that dependon non-resident populations, such as tourism

Risks and Opportunities
	Possibility of stronger regional demand as a result of workstyle reforms and changes in supply chains

G R I T Strategy

Project Spotlight

Corporate Governance	Shortages of people in charge of promoting sustainability
in regions

The DBJ Group conducts research and creates plans for the benefit of industry and regions, such as assisting the effortsof regional carbon-neutral promotion councils. We also support the formation of public–private collaboration projects, such as
pay-for-success (PFS) contracts and social impact bonds (SIBs), with the Social Impact Assessment Team of the Japan Economic
Research Institute Inc. The DBJ Group researches and reports on the strategies of tourism cities in light of the impact of the
COVID-19 pandemic. We also examine social value provided by events that stimulate interactions among people, such as sports,
music, cultural, and artistic events. Through these and other efforts, the Group provides knowledge aimed at sustaining uniqueregional resources and discovering new ones to attract people.

	Growth strategies, including overseas business development,of regional companies
	Maintaining of regional companies and increases in value
thereof through business rebuilding and business succession

Head Office
10 branches	Eight representative
offices
Niigata Branch
Toyama Representative Office
Hokuriku Branch
Okayama Representative Office
Matsue Representative Office

KushiroRepresentative Office
Hokkaido Branch

Hakodate
Representative Office
Aomori
Representative Office
Tohoku Branch
Head Office

Chugoku Branch
Kyushu Branch
Oita Representative
OfficeMinami-Kyushu
BranchTokai Branch
Kansai Branch
Shikoku Branch
Matsuyama
Representative OfficeAlong with Nihon M&A Center Inc. and Career Incubation Inc., the DBJ Group established Search Fund Japan, Inc. for the
purpose of solving issues affecting domestic small and medium-sized enterprises (SMEs), such as the lack of successors
to take over control of businesses, and launched an investment business based on the search fund model for the entire
nation, a first in Japan. A search fund is a type of private equity fund that was conceived in the U.S. to help SMEs findsuccessors—in other words, people interested in becoming managers—with the support of investors in the searchfund. It is designed to reignite the growth of a company
with successors becoming managers of that company.
Through the greater use of search funds, the DBJ Groupaims to sharpen the competitiveness of Japanesecompanies by matching SMEs with young people whoare interested in becoming managers, thereby rekindling
growth of SMEs as talented personnel take control ofoperations, while training personnel for management
positions and solving the regional problem of businesssuccession at SMEs.
Manager meetinghttps://www.dbj.jp/case/
Please go to the DBJ website to see the areas supported by each branch (Japanese only).

Corporate Data

	Providing assistance for initiatives for decarbonization in­collaboration with regional financial institutions

Launch of Japan’s First Nationwide Search Fund:
Providing New Solutions for Business Succession

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Area Strategy

35

Overseas

Self-Reliance and Revitalization of Local Economies

Strategy

Positioning overseas operations within its
sector strategy and function strategy, the
DBJ Group engages in global operations in
sectors providing high added value.

OutlineThe DBJ Group’s subsidiaries in London, Singapore,
Beijing (including a branch office in Shanghai), and New York
coordinate its operations overseas.

	Recovery of global economy from the impacts of the
COVID-19 pandemic	Technological advances and innovations to achieve global
aim of carbon neutrality
	Rising geopolitical risks caused by Russia’s invasion of
Ukraine, changes in global supply chains due to the invasion,and countries strengthening their economic and energy
security

Risks and Opportunities
	Rising geopolitical risks caused by Russia’s invasion of
Ukraine, global inflation concerns	Reemergence of needs for global business development
among Japanese companies as stalled economy recovers
from the impacts of the COVID-19 pandemic	Increase in demand for sustainability and transition financein fields of energy, industry, and infrastructure amid
movement toward carbon neutrality

Overseas Bases

DBJ Americas Inc.
DBJ Investment Consulting(Beijing) Co., Ltd.
(Branch office: Shanghai Branch)

DBJ Singapore Limited

https://www.dbj.jp/case/
Please refer to the DBJ website to see the Regional, Industry,and Economic Report (Japanese only).

Project Spotlight

Participation in Brookfield Global Transition Fund,an Infrastructure Fund for Transition Issues
Transition finance supports industries with the transition to carbon neutrality. Although a central part of the DBJ Group’s
GRIT Strategy, application of transition finance to specific projects has not been established in Japan. The DBJ Group
believes Japanese companies need to better understand overseas trends and specific projects in order to further theirtransitions to carbon neutrality. For this reason, DBJ decided to participate in Brookfield Global Transition Fund (BGTF) in
December 2021, which leverages Brookfield Asset Management’s
experience in renewable energy investment projects and is­co-headed by global transitions expert, Mark Carney. After
executing this investment, our investment team have worked
to deepen their understanding of transition finance operations
through studying BGTF’s investment projects. DBJ is pleased
to be working with Mr. Carney, who is Brookfield’s Vice Chairand head of transition investing, BGTF’s Investment Committee
member, and the United Nations Special Envoy on Climate
Action and Finance, and our management team has taken partin discussions with him about global trends in the transition tocarbon neutrality and the current state of Japan’s transition.
Dialogue with Mark Carney

Corporate Data

DBJ Europe Limited

G R I T Strategy

Corporate Governance(2)	The DBJ Group helps solve issues associated withentering overseas markets by leveraging its research
and advisory functions and by utilizing investment
functions when needed in line with the overseas
business development needs of its customers inindustrial fields, including in each region of Japan.
Leveraging the functions of our overseas bases, we arebuilding systems able to offer support not only in Japanbut also locally from overseas locations.
(3)	DBJ Group companies provide investors in Japan with
opportunities to invest overseas through the asset
management business of investing in infrastructure
assets and companies. By utilizing the activities
mentioned in (1) and (2), we aim to generate synergies
with the asset management business by working toobtain investment opportunities overseas.
To achieve the above, the DBJ Group is strengthening
fields where it can leverage its abilities to the utmost at eachoverseas base, while concentrating resources on functions
such as networking, sourcing, negotiation support,monitoring, and research at overseas bases. Additionally, we
are upgrading each type of operating base with the aim ofadvancing overseas business and base strategies centeredon these sector strategies.

StrategySocial Issues

The DBJ Group engages in overseas operations and bringsback the knowledge it gains overseas to Japan, based on
sector strategies that encompass overseas service andlocation strategies. To achieve this, the DBJ Group will take
into account its GRIT Strategy, a key measure in the Group’s
Fifth Medium-Term Management Plan, as well as trends insustainability finance for carbon neutrality, a topic being
discussed in each overseas region. At the same time, the DBJ
Group is monitoring both the recovery of overseas economies
affected by the global COVID-19 pandemic and the impact of
the increasing geopolitical risks in each area from the Russia–
Ukraine conflict.
(1)	In infrastructure fields such as energy andtransportation, as well as in industrial sectors such as
food and agriculture, based on integrated strategies forJapan and the world, the DBJ Group provides assistance to domestic industries for overseas development,
as well as investments and loans, including from thestandpoint of bringing advanced knowledge toJapanese markets from overseas. To achieve this, the
DBJ Group works through the department in charge ofsector strategies, and the department in charge ofinvestment and loan functions, such as investments andstructured finance, together with its overseas bases.

Value Creation Story

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Function Strategy



The DBJ Group will provide optimal financing
solutions tailored to customer needs, fromloans to mezzanine financing andinvestments, while reinforcing its ability toadequately evaluate various risks.

Outline
DBJ provides loans and investments after analyzing businessprospects, evaluating risks, and creating financing schemes.
Taking into consideration the traits of each project and theintentions of participants, DBJ utilizes its expertise inintegrated investment and loan services that flexibly deploy
loans, mezzanine financing, and investments.

Special Investment Operations and Crisis Response Operations

Overview of Special Investment Operations
DBJ Innovation and Life Sciences Fund
In light of the Cabinet’s July 2020 announcement of its Follow-up on the Growth Strategy, in March 2021 we renamed the DBJ
Innovation Ecosystem Invigoration Fund, launched in March 2020, as the DBJ Innovation and Life Sciences Fund, to clarify our
support for strengthening the competitiveness of the life sciences industry. This fund is for supporting startup firms.

Growth Fund for Coronavirus Revival
In May 2020, this fund was established to help businesses affected by the COVID-19 pandemic rapidly and steadily recover andgrow, in reflection of the April 7, 2020, Cabinet decision Emergency Economic Measures to Cope with COVID-19.

Green Investment Fund

DBJ’s Initiatives to Supply
Risk CapitalSpecial Investment Operations

Special Investment Operations(Budget for
fiscal 2022:¥50 billion)

Japanese­government(industrial
investment)

Special Investment
Operations(Managing investments andloans in special account)
Fiscal 2022: ¥100 billion

Complement andencourage private-sector
enterprises(including pump-priming)
Capital funds(including preferred sharesand subordinated loans)

Evaluation /verification

Special Investment
Operations Monitoring Board

https://www.dbj.jp/en/service/invest/special/
Please refer to the DBJ website for examples of initiatives related to Special
Investment Operations.

• Initiatives to promotemanagement innovation– Cultivate new business– Form alliances among various
sectors and groups etc.

Political targets• Encouragement of self-reliant
development of regional
economies• Increase in competitiveness ofJapan and domestic enterprises• Development of markets for
growth capital

Growth Fund forCoronavirus Revival

Green Investment FundThis fund supports initiatives topromote innovation in Japaneseindustry and strengthen thecompetitiveness of the life
sciences industry.

This fund helps companies impacted
by the COVID-19 pandemic
recover and grow.

This fund invests in renewableenergy projects toward therealization of carbon neutrality
by 2050.

G R I T Strategy

Project Spotlight

Support for Start-Ups Aiming to Create a Future Healthcare Provision
System that Realizes ICU Anywhere
CROSS SYNC Co., Ltd. was established as a “Yokohama City University venture capital firm” by doctors working in theintensive care units of hospitals affiliated with Yokohama City University. With the intention of reducing the numberof deaths and patients who rapidly decline in health, CROSS SYNC is developing and operating
the iBSEN application for constantly analyzing medical data and enabling the remotesimultaneous monitoring of multiple patients based on their vital signs and diagnostic
images. Through its Special Investment Operations, DBJ invested in CROSS SYNC alongwith Konica Minolta, Inc., Toyota Tsusho Corporation, and FINDEX Inc. based on its
innovative concept of supporting acute-stage healthcare, through the combination of theexpert knowledge of practicing physicians with artificial intelligence and other information
technology to identify and display relevant data for the patient’s healthcare needs,
and quickly determining and sharing the healthcare priorities of patients.
The DBJ Group will dispatch its own employees and connect the many relevant parties
to facilitate the development of this product and encourage its use. By solving various social
issues caused by healthcare worker shortages, we aim for a society where anyone canreceive the best medical treatment wherever they are.
iBSEN smartphone app

Corporate Data

Addition(Budget for
fiscal 2022:¥50 billion)• Initiatives for effective use ofmanagement resources

Enhance risk capital supporting growth

Capital account

Capital increase

Target company initiatives

DBJ Innovation andLife Sciences Fund

Corporate GovernanceSpecial Investment Operations, established as an intensive
but temporary scheme to supply growth capital from theperspective of promoting the competitiveness of Japaneseenterprises along with regional revitalization, draws only aportion of the investment (industrial investment) from theJapanese government—enough to encourage the private
sector to supply growth capital. Since launching the
aforementioned operations in June 2015, DBJ has made¥998.2 billion (as of March 31, 2022) in investments andloans (152 projects in total), the first ¥962.1 billion of which
has spurred ¥6,231.3 billion in private-sector investments
and loans.

Other financial
institutions(Megabanks, regional
Loans, etc.
banks, private funds, etc.)

StrategyThis fund was created in February 2021, to support businesses that aim to improve the sustainability of natural resources and theenvironment, such as renewable energy businesses, in consideration of the December 8, 2020, Cabinet decision Comprehensive
Economic Measures to Secure People’s Lives and Livelihoods toward Relief and Hope.

DBJ

Value Creation Story

Special Investment Operations
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Function Strategy

39Special Investment Operations and Crisis Response Operations

Project Spotlight
Crisis Response Operations
two-step loans as a complementary risk measure, among
other measures, to government-designated financial
institutions that supply necessary funds to address such damage.
In March 2020, the COVID-19 pandemic was designated acrisis (see Our Response to the COVID-19 pandemic on page39). As a designated financial institution, DBJ collaborated
and coordinated with private-sector financial institutions torapidly and effectively implement Crisis Response Operations.

Crisis Response Operations Scheme

Private financial institution

Private financial institution

Designated

DBJ• Designated financial institutions conduct business inaccordance with the Crisis Response Operations Rules(based on approval of the competent minister).
•D esignated financial institutions conduct business withcomplete double checks of required compliance in theirfinancing departments and their departments
responsible for crisis response operations.

Provision offunds, etc.

Prepares and announces•	
crisis response facilitation
guidelines (approved by thecompetent minister)• Capital
contribution• Lending of funds• Interest subsidies

Implements complementary•	risk and other measures on
the basis of agreements(approved by the competent
minister) with designatedfinancial institutions

Defines a new scope for DBJ’s ­responsibilities, making Crisis
Response Operations obligatory for an indefinite period•	Extends the scope of Japanese government recapitalization
securing DBJ’s financial ­structure, etc.
•	Establishes a new crisis response reserve account, reflecting
this obligation in the Articles of Incorporation, and indicatesmandatory Japanese government ownership of more than
one-third of shares and other measures
Note: Capital increases related to Crisis Response Operations before
the 2015 revisions to the DBJ Act were transferred from capital
to a crisis response reserve (¥206.5 billion). Capital increases for
Crisis Response Operations after the revisions are to be added
directly to the crisis response reserve.

Accomplishments and Initiatives to Date
2008/10

2008/12Financial Crisis Response Operations
and Earthquake Disaster Crisis
Response Operations(through March 31, 2011)

Main events that were designated as a crisis:2021/3

COVID-19
pandemic

Earthquake Disaster Crisis Response Operations

Increase in Support for Restaurants and Hotels
The business environment has become even more difficult
for companies operating restaurants and hotels, which havebeen major employers. At their request, the government
stepped in to provide further assistance to these companies
in March 2021. Under the direction of the Coronavirus
Response Headquarters, DBJ set up the Crisis Response
Operations Special Response Office and the Restaurants
and Hotels Team therein in order to speed up the screeningof companies operating restaurants and hotels.
Since March 29, 2021, DBJ has reduced the interest rateburdens of subordinated capital loans provided to large
enterprises in the restaurants and hotels sector and to midtier companies as an intensive but temporary scheme.
Other measures DBJ has taken include the creation of apreferred stock underwriting fund targeting mid-tier andlarge companies operating restaurants and hotels (DBJ
Food & Beverage/Hotel Support Fund Investment Limited
Partnership).

Breakdown of Financing by Sector*

Breakdown of Financing by Office Type*

Total funds raised by the government in Crisis Response Operations•	Turmoil in international financial markets(Global financial crisis)¥206.529 billion(As of March 31, 2022)•	Great East Japan Earthquake•	Damage from heavy rainfall during Typhoon No.18
in 2015•	Kumamoto earthquakes in 2016
•	COVID-19 pandemic

Total loans for Crisis Response Operations, loans with loss guarantee agreements,
and commercial paper purchases• Loans:¥8,715.2 billion (1,652 projects)• Commercial paper acquisitions: ¥361.0 billion(68 projects)

Amount (%)

Total Crisis Response Operations related to the COVID-19 pandemic
				¥2,495.7 billion

5%(492 projects)

Total for mid-tier companies and large companies in restaurants and hotels sector
since March 29, 2021
¥249.6 billion (100 projects)(As of March 31, 2022)

Number (%)

20%

15%

20%

27%

23%

33%
6%

https://www.dbj.jp/en/service/finance/crisis/?sc=1
Please refer to the DBJ website for examples of initiatives related to Crisis Response Operations.

* As of March 31, 2022

Othermanufacturing

AmountWholesale
TourismOthernon-manufacturing

Number¥470.9 billion

Transportation

18%

11%
4%

20%

Transportationequipment

280¥2,024.7 billion

212

Head Office
Branches

Corporate Data

Commenced Crisis
Response Operations as
a designated financial
institution

2011/3

Implementation of Crisis Response Operations
In response to the damage caused by the COVID-19
pandemic, the DBJ Group opened consulting service
counters at the end of January 2020 and moved forwardwith its unique Regional Emergency Response Programfrom February 2020 onwards. As a designated financial
institution, DBJ has concentrated on Crisis Response
Operations since March 19, 2020, after the Japanese
government declared the pandemic a crisis.
Led by the Coronavirus Response Headquarters, which
is chaired by the representative director and president,
DBJ has moved to rapidly and precisely implement Crisis
Response Operations. DBJ will continue to collaborate andcoordinate with private financial institutions to meet theneeds of businesses that have been adversely affected by
the pandemic. DBJ will enhance collaboration with regional
financial institutions and ready its unique capital supply
systems, including the Regional Emergency Response
Program, while considering the efficacy of Crisis Response
Operations in terms of securing jobs and maintaining credit.

Corporate GovernanceJapan Finance Corporation(Crisis Response
Facilitation Account)boost industry competitiveness, builds infrastructure, andreinforces functions (the “reconstruction and growth stage”),
we established a reconstruction and growth support fund incollaboration with the Regional Economy Vitalization
Corporation of Japan.
In fiscal 2018, with demand for reconstruction seeming
to settle, we established a new fund for medium- to longterm capital funds and other forms of money with sharedrisk, aimed at supporting the economic development of theaffected areas.
Going forward, we will continue to work with local
financial institutions while promoting efforts to help stricken
areas according to their particular stage of recovery.

Our Response to the COVID-19 Pandemic
Clients

Two-step loans, etc.

In the fiscal 2011 supplementary budget passed in the wakeof the Great East Japan Earthquake, ¥2.5 trillion was
earmarked for Japan Finance Corporation for Crisis
Response Operations targeting medium- and large-sizedenterprises. DBJ proactively provided assistance for clientsaffected both directly and indirectly by the disaster.
Along with designated financial institutions in the disasterarea, DBJ arranged the Great East Japan Earthquake
Reconstruction Fund.
In December 2014, in response to the shift of the stageof earthquake reconstruction from the restoration of
production facilities (the “restoration stage”) to efforts toopen up a new enterprise-based market that resumes
production, collaborates among multiple enterprises toStrategy

Private financial institution

Designated financial institutions

Great East Japan Earthquake of 2011
Value Creation Story

DBJ’s Crisis Response Operations function as a stabilizing
force during periods of instability in the economy, society,and markets.
The Finance Corporation Act (Act No. 57 of 2007, including
later revisions), mandates the provision of necessary funds
during such crises as disruptions in domestic or overseas
financial markets or large-scale disasters. In response tocrisis-related damage, Japan Finance Corporation provides

Japanese Government

38

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Development Bank of Japan Inc.
Integrated Report 2022

Business Strategy

Development Bank of Japan Inc.
Integrated Report 2022

Function Strategy

Outline
DBJ provides integrated investment and loan services tocustomers through a complex arrangement of functions,
including the supply of long-term capital. From senior loans
to mezzanine loans and equity financing, DBJ seamlessly
addresses customer needs while also offering syndicatedloans, mergers and acquisitions (M&A) advisory, and consulting services among others.

Syndicated Loans

Please refer to the DBJ website for more information about and examples of our syndicated loans.

(headquartered in New York), which wished to develop
business in Asia and other parts of the world. The synergies
generated between BDA’s overseas network and the DBJ
Group’s M&A advisory organization and domestic andoverseas networks have produced a more effective andefficient overseas M&A advisory service for our clients.

Consulting
Japan Economic Research Institute Inc. (JERI) is acomprehensive think tank that conducts research in the
public, solutions, and international fields. In the public–private
partnership and project financing initiative fields, it has a
top-class track record in Japan backed by unparalleledexperience and know-how.

G R I T Strategy

Value Management Institute, Inc., another comprehensive
think tank, excels in analysis using proprietary economic
models and insight into cutting-edge technologies. Its highly
specialized knowledge encompasses a broad range of policy
fields, including the formulation of integrated strategies for
local governments across Japan.

Project Spotlight

Providing Support to Japanese Companies for the Development ofRenewable Energy-Related Business Overseas through M&A Advisory
Services
As the global movement toward carbon neutrality gains momentum, Japanese companies increasingly require investments
and M&A in renewable energy projects, including those overseas. DBJ’s overseas subsidiary DBJ Singapore Limited has
an investment banking team, comprising international staff
from Asia, that excels at gathering information related toinvestments and M&A deals in the region. This teamcollaborates with DBJ’s Business Development Department,
Relationship Management Department, and subsidiary JERI
to constantly introduce potential projects to customers andunderstand the latest needs of customers. These efforts
encourage customers to evaluate renewable energy projects
in Asia, and occasionally result in customers requesting
M&A advisory services. DBJ will continue to help customers
develop renewable energy operations in Asia through its
M&A advisory services.
Formosa I Wind Power Co., Ltd.

https://www.dbj.jp/en/service/advisory/m_and_a/?sc=1
Please refer to the DBJ website for more information about and examples of our advisory services.

Corporate Data

https://www.dbj.jp/en/service/finance/shi_loan/?sc=1

As a result of its impartiality, DBJ has a wide network it canmobilize in providing its M&A advisory services, including not
only Japanese firms but also overseas companies and private
equity funds.
In fiscal 2017, DBJ entered into an overseas M&A advisorybusiness cooperation agreement with BDA Partners

Corporate GovernanceA syndicated loan is a method for extending a loan withidentical terms and conditions in a uniform contract to acustomer through a syndicated group of multiple financial
institutions brought together by an arranger—a managing
financial institution. Syndicated loans offer many benefits.
Customers are able to flexibly raise a large amount of funds,
with the arranger handling all of the negotiations with multiple
financial institutions. The arranger is able to invite a larger
number of participating financial institutions. Finally, the agent
handles all the administrative procedures, lightening theadministrative burden on other parties.
When DBJ arranges a syndicated loan, DBJ utilizes its
impartial position when reaching out to a wide range offinancial institutions. In the case of a regular corporate loan,
DBJ aims to increase value added with DBJ’s unique offeringof loan programs—such as the DBJ Sustainability Evaluation
Certification Program—and sustainability-linked loans.
Furthermore, our structured finance offerings may containsyndicated loans in the loan package. We have put together
large syndicated loans with many participating financial
institutions for the energy and infrastructure fields.
Through cooperative agreements with regional financial
institutions to provide syndicated loans, DBJ is strengthening
collaboration and cooperation while helping customers raise
funds, and offering investment and loan opportunities toregional financial institutions.

M&A Advisory Services

Strategy

The DBJ Group mobilizes tie-ups andcollaboration to provide syndicated loans andsupport for M&A designed to promote
Japanese companies’ growth strategies andstrengthen their international competitiveness,while offering impartial consulting services
with a long-term perspective. Along withrelated services, this helps clients solve theproblems they face and stimulates activity
in financial markets.

Syndicated Loans, M&A Advisory, and Consulting Services

Value Creation Story

Syndicated Loans, M&A Advisory,
and Consulting Services

41

Development Bank of Japan Inc.
Integrated Report 2022

Business Strategy

Development Bank of Japan Inc.
Integrated Report 2022

Function Strategy

Asset Management
Established in 2006, DBJAM is an asset management firm of
the DBJ Group that specializes in alternative investments inthe fields of real estate, private equity, and infrastructure
domestically and internationally.

Social Issues
	Diversification of investment opportunities

Established in 2006, DBJAM has expanded its management
services and fields of investment while responding to growing
investor demand for alternative investments. As a result,
DBJAM’s operations have evolved to encompass gatekeeper
and fund-of-funds services for investments in privately offeredreal estate funds, privately placed funds, and private equity,
infrastructure, and real estate funds in Japan and overseas.
Assets under management totaled ¥2,819.8 billion as ofMarch 31, 2022.
Above all else, DBJAM aims to expand long-term earnings
on the assets it manages while properly fulfilling its fiduciary
duty and stewardship responsibility as an investment
management firm. To this end, DBJAM engages in andadvances sustainability management principles and ESG
investment. More specifically, the Responsible Investment
Committee, which is chaired by the president and consistsof directors involved in business execution, decides policies

and performs ESG integration, imbuing ESG elements
into operational processes in the three fields of real estate,
private equity, and infrastructure. DBJAM is also stepping up
engagement with investors and relevant stakeholders throughproactive dialogue and activities. By further strengthening andimproving these initiatives, DBJAM aims to optimize risks andreturns on investments in a broader range of fields and overlonger periods of time, while advancing its investment
services and securing the best returns for investors.
DBJAM recognizes that people are its most important
asset for continuing to fulfill its responsibilities and duties as
an investment management company. DBJAM is keen toprovide training in investment management for professionals,
proactively offering training opportunities that help improvetheir skills and know-how, as well providing training on its
corporate philosophy for all its executives and employees.

Strategy

DBJ Asset Management Co., Ltd. (DBJAM)
contributes to the activation of new money
flows and the development offinancial and capital markets through theprovision of quality investment opportunities
and management services to institutional
investors in the alternative investments field,
while leveraging the knowledge and networks
built up over the years by the DBJ Group.

Strategy
Value Creation Story

Asset Management

43

Asset Management

	Climate change	Declining and aging population
	Maintenance and upgrading of aging infrastructure	Improvement of labor productivity

G R I T Strategy

Corporate Governance

The DBJ Group believes that the most effective way toaddress these issues is to increase the sophistication offinancial and capital markets in Japan. To this end, we think it
is necessary to enhance the sophistication of asset
management by institutional investors, such as pension funds
and financial institutions.

Project Spotlight

Stepping Up Initiatives in Sustainability and ESG	Creating opportunities to invest in a sustainable society	Promoting investment in renewable energy; maintaining andupgrading social infrastructure	Promoting engagement in sustainability and ESG initiatives
with General Partners
	Expanding and improving human capital	Training professionals, creating work environments thatfacilitate work, and improving engagement with employees

気候変動への対応

Environment：環境への取組み
再生可能エネルギーの導入移行リスクに関するシナリオ分析
 使用電力の再生可能エネルギーへの切り替え

 概要「Carbon Risk Real Estate Monitor（以下、「CRREM」）」というツールを用いて、移行リスクに関する定量的なシナリオ分析を実施しました。
本ツールを用いることにより、1.5℃シナリオ及び2℃シナリオに整合するための2050年までの温室効果ガス（以下、GHG）の排出削減経路を国別・物件用途別に可視化し、個別物件及びポートフォリオ全体で求められるGHG削減量等を分析することができます。
 分析結果Average Portfolio
GHG Intensity vs. Paris Targets
ポートフォリオ平均の排出削減経路（G
G H G 排出原単位、kk g - CO2/㎡）

80

1.5℃シナリオ、2℃シナリオいずれの場合も、排出削減経路としては2050年に向けて大幅な排出削減が必要になります。
このため、現状のポートフォリオ全体のGHG排出原単位基にした場合、
1.5℃シナリオの場合は2030年前に、2℃シナリオの場合でも2030年
代前半には、求められる排出削減経路を超過した排出量になるという分
析結果になります。
 本投資法人における対応
本分析により認識されたリスクに対し、ポートフォリオ全体として対策を検討して参ります。具体的には、個別物件の事情に即して、省エネ化の推進と再エネの導入を検討して参ります。
なお、現在、保有物件の使用電力における再生可能エネルギーの導入を進めておりますが、こういった取組みによりGHG排出量の削減を進める
ことにより、移行リスクの低減につなげていきたいと考えております（右図
参照）。

1%

2%

再エネ
導入済又は
導入予定

8%

品川グランドセントラルタワー
25%

DPスクエア錦11%

DPスクエア東桜
アークヒルズサウスタワー
DPロジスティクスセンター岩槻

 リーシングへの波及効果
XXXXXXXXにおいて、再生可能エネルギー電力を使用可能としたことについて、リーシング仲介会社にアンケート調査を行ったところ、「現在または今後リー
シング上プラスに働く」という回答はXX.X%（回答数N=XX社）でした。
テナント企業におけるカーボンニュートラルへの取組みが加速する中で、オフィスビルにおける使用電力の脱炭素化に取り組んでいく重要性は高まっていると認識しております。

60
50
40
30
20

 屋上部での太陽光発電
XXXXXXXXでは、屋上部分を太陽光発電事業者に賃貸し、太陽光パネルを設置しています。
これにより、当該物件のNOIの向上を図ると共に、社会全体での再生可能エネルギーによる発電の促進とGHG排出量の削減に貢献しています。

10
0

現在

Portfolio
GHG intensity without retrofits
排出削減経路（1.5℃シナリオ）
2°C-target
排出削減経路（2℃シナリオ）

1.5°C-target
GHG排出原単位（2020年データ）
Portfolio
GHG intensity with retrofits
GHG排出原単位（P.18記載の5物件での再エネ導入後の試算）

0

Copyright (C) DBJ Private REIT Inc. All Rights Reserved

白井ロジスティクスセンター

約78%

17%

70

DBJ Private REIT Co., Ltd.’s ESG Report (excerpt)
Please refer to the DBJ Asset Management Co., Ltd.’s website for more information about asset management.

保有物件別電気使用量割合（2020年度）

オフィス計

Copyright (C) DBJ Private REIT Inc. All Rights Reserved

https://www.dbj-am.jp/en/

気候変動への対応として、保有物件への再生可能エネルギーの導入を進めています。足元では、XXXXXXX、XXXXXXX・XXXXXXXの3物件、XXXXXXXXX、XXXXXXXXXの2物件を再生可能エネルギー電力へ切り替える予定です。
これにより、ポートフォリオ全体の使用電力における再エネ化率はXX・X%に達する見込みです。

神宮前店舗タケオキクチ

19%

（注
3）

レジ物件（共用部）
17%

発電量

CO2削減効果2019年度

1,012 MWh446 トン

2020年度

963 MWh

425 トン

本事例に関係すると考えられるSDGs項目⑦エネルギーをみんなにそしてクリーンに⑬気候変動に具体的な対策を

1

Corporate Data	Appropriately responding to climate change and othersustainability issues

In recent years, we have been working to enhance the dissemination of information, such as ESG reports, to investors,
strengthening engagement through proactive dialogue with stakeholders while putting ESG integration into practice. In thereal estate field, we analyze scenarios based on Task Force on Climate-related Financial Disclosures (TCFD)
recommendations for the portfolios of privately listed real estate investment trusts (REITs), performing quantitative analysisof transition risks and physical risks related to climate change.

GHG Intensity [kgCO2e/m²/yr]

Risks and Opportunities

2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050

42

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Development Bank of Japan Inc.
Integrated Report 2022

Development Bank of Japan Inc.
Integrated Report 2022

Management Foundation Strategy

Basic Policy
Financial capital is a vital element of our business foundationin the implementation of advanced business strategies centered on our sector strategy (see page 24–31) and our function strategy (see page 36–43). A robust financial foundationof funds and capital is necessary for the DBJ Group to execute its sector strategy, supply risk capital, and engage in
Crisis Response Operations.
We aim to maintain and strengthen our financial capital bymanaging it within the context of a risk appetite framework
based on sophisticated analysis of risks and returns, with due
consideration paid to regulatory capital (management focusedon shareholders’ equity ratios) and economic capital (management of capital using stress tests).

Sustainability Bond Issuance(As of March 31, 2022)

Fiscal 2014€250 million

Fiscal 2015

€300 million

Fiscal 2016

$500 million

Fiscal 2017

$1 billion

Fiscal 2018

€700 million

Fiscal 2019
Fiscal 2020

Fiscal 2021

$1 billion€700 million$520 million€600 million$700 million*1 BCM: business continuity management*2	Green Bond Principles: The Green Bond Principles are compiled by theInternational Capital Market Association (ICMA), investors, issuers, andsecurities companies. These parties are responsible for updating annually theGreen Bond Principles, which are voluntary process guidelines that recommend
transparency and disclosure and promote integrity in the development of thegreen bond market by clarifying the approach for the issuance of a green bond.
These parties also constitute a platform for sharing the latest information about
green bonds and disclosing relevant information to the public.

IR Activities to Spread Understanding of DBJ’s Principles and WorkBusiness plan

Execution

Monitoring

Strategy for
financial capital

Financial Soundness Indicators
Issuer ratings

A1 (Moody’s), A (S&P), AA+ (R&I), AAA (JCR) (As of June 30, 2022)

Common equity Tier 1 capital ratio(consolidated)

16.97% https://www.dbj.jp/en/ir/
Please refer to the DBJ website for more information related to investor relations.

(As of March 31, 2022)

In addition to procuring government credit through FILP and the issuance of government-guaranteed bonds, DBJ­conducts its own fundraising activities, such as issuing corporate bonds (FILP bonds) to domestic and overseas investors
and borrowing money from insurance companies and financial institutions— primarily regional banks. When conducting its
own fundraising activities, DBJ Group places emphasison having investors understand and support its principles and work and, to this end, conducts proactive
investor relations through face-to-face meetings.
Particularly when raising funds through loans, DBJ
takes care to further a deeper understanding of its workby giving examples of investments and loans it has madeinside and outside Japan as well as within domestic
regions. DBJ also takes care to gain a deeper
appreciation of the issues faced by borrowing
customers, viewing interactions as an opportunity forfurther collaboration on investments and loans, inaddition to borrowings.
IR activities

Corporate Data

Stress test

In fiscal 2014, DBJ became the first bond issuer in Japan toissue a green bond. Furthermore, DBJ has issued a DBJ
Sustainability Bond each year since 2015. In fiscal 2021, DBJ
was the only Japanese issuer to do so for eight consecutive
fiscal years, having issued its first domestic bond in addition
to foreign bonds. The funds raised are allocated toward thecreation of a sustainable society via financing for real estate
properties eligible for DBJ Green Building Certification, theEnvironmentally Rated Loan Program, financing for renewableenergy projects, financing for green innovation and industries,
the BCM*1 Rated Loan Program, and the Regional Emergency
Response Program. Information on the management andallocation of funds is evaluated by third parties to increasetransparency. In January 2017, DBJ became an issuer
member of the Green Bond Principles,*2 the first Japanese
firm to attain such a status, and it participates on a committee
created by the Ministry of the Environment to revise the Green
Bond Guidelines, thereby contributing to the development ofa sustainable finance market around the world. DBJ willcontinue to support the sustainable growth of this market bycontinuing to issue sustainability bonds and proactively
engaging in international and domestic initiatives.

Corporate GovernanceBusinessstrategy

DBJ Sustainability Bonds

Strategy

Scenarioplanning

A pillar of the DBJ Group’s business strategy is to provide long-term financing for infrastructure projects. To do so, the DBJ Groupprocures long-term funds through corporate bonds and the Fiscal Investment and Loan Program (FILP).
In recent years, DBJ has stably procured funds through FILP as well as by issuing corporate bonds, thereby augmenting its
fund procurement activities with diversified maturities and methods. DBJ has been issuing green bonds and sustainability bonds
since fiscal 2014. The issuance of these bonds has not only diversified our fund procurement base but also invigorated thesustainable financing market.

Value Creation Story

External
environment

Financial Strategy

Specific Initiatives to Improve Value of Financial Capital

Financial Strategy
We target sustainable growth by constructing
an optimal risk–return portfolio while
maintaining and strengthening a robust
financial base that supports our uniquebusiness activities, including integrated
investment and loan services.

45

Development Bank of Japan Inc.
Integrated Report 2022

Development Bank of Japan Inc.
Integrated Report 2022



Shingo Kobayashi

Basic Policy

https://www.dbj.jp/co/recruit/
Please refer to the DBJ website for more information (Japanese only) about our hiring process.

Career development program

Training for new
employees
FinanceFinancial Law
accounting

Global humanresources training
program for young
employees

Selfstudy

Foreign languages, finance, law, financial skills, etc.

Please refer to the DBJ website for more information about human resources.

Career development program• P roposal and screening
capabilities• F inancial modeling• F inancial products• S ustainability etc.

Short-term study at foreignbusiness schools

Managers

https://www.dbj.jp/en/sustainability/effort/foundation/human_resources.html

Pre-management training

Financial ­skills-related
training

Global leadershipprogram for
managers

Domestic

Short-term study on external programs

236

Newly appointed manager training

Dispatch outside DBJ
GlobalStudy at foreign graduate schools

53

Mid-level
employees

26

Life/career plan seminar

Compliance training / information security training(108.3% when including special time off for childcare)

In-house training (required/optional)

Coaching program
Strategic human resource development throughjob rotation and on-the-job training

Women 90.3%
Men 20.8%

Mid-level
employees

100% (22/22 people)

Rank-based training

Diversity training(Women’s empowerment, “iku-boss,” understanding people with disabilities, etc.)

On-the-job
training

70

7.90% (Reference: 15% target by March 31, 2026)

Vision for Human Resource Development
The DBJ Group encourages autonomous and pioneering
behavior in its employees as financial professionals in keeping with its vision for human resource development, which
can be summarized as “cultivation of generalists who canbe specialists in many fields.”
While it is important to acquire specialist knowledge,
responding to society’s constantly changing needs also
requires broad experience, deep knowledge, and the ability
to see the big picture.
The DBJ Group has created a variety of personnel
systems and human resource training programs with theintention of nurturing employees with advanced specializations
but also broad perspectives, who are able to grow of theirown accord without fearing change, and contribute to thediscovery and resolution of issues faced by customers andsociety.

Outline of Human Resource Training System

1,809
1,257

32

why the DBJ Group exists. Accordingly, DBJ Group’s people
must always be willing to take on new issues and boldly
redefine themselves with an eye to the future.

Corporate Data

No. of employees (consolidated)
No. of employees (non-consolidated)
Global human resource training program participants(cumulative total)
Women’s empowerment and leadership program(see LEAD on page 49) participants (cumulative total)
Ratio of women in management positions
Ratio of employees returning to work after taking childcare
leave (number of employees having completed childcare
leave in fiscal 2021)
Ratio of employees taking childcare leave and­childcare-related time off by women/men
(employees with newborn children during fiscal 2021)
Rehiring system registrants
Employees who use reduced working hours for childcare
and nursing care
Seminars for finding childcare facilities (cumulative total)

Our Values
Our value creation process would not be possible without
the executives and employees who share our values of initiative and integrity and who display our four core corporate
values handed down from DBJ’s earliest days: a long-term
perspective, impartiality, public-mindedness, and reliability.
Having provided long-term funding since the postwar
reconstruction period, the DBJ Group has carried on the tradition of serving its customers, industry and society from a longterm perspective. The DBJ Group is also unique in terms ofimpartiality by always working toward what is best for Japan’s
economy and society, without being affiliated with any specificcorporate group. Our public-mindedness is what motivates our
employees to engage in work for the creation of both economic
and social value. The combination of these traits has earned
us a reputation for reliability from customers and society.
With these four core values as a starting point, the DBJ
Group tackles with integrity the management issues faced
by its customers and the issues faced by society as a whole,taking a long-term perspective and tirelessly pursuing measures to resolve these issues. This is our unique mission. It iswhat sets us apart from other financial institutions, and it is

Corporate Governance

Outline of Our Human Capital(As of March 31, 2022, on a Non-Consolidated Basis, except Where Noted Otherwise)

Executive Officer,
Head of Human Resources Management Department

Strategy

Acquiring and training skilled employees is key to our uniquebusiness model and the pursuit of the DBJ Group’s four core
corporate values (a long-term perspective, impartiality,
public-mindedness, and reliability), in order to realize
Vision 2030 and execute the DBJ Group’s value creation
process while aiming to balance and enhance economic
and social value.
To this end, we believe it is important to create aframework that motivates our experienced employees toengage in their work with enthusiasm. We are advancing
various measures to improve the value of our human capital,
one of our foremost priorities.
Our employees are the wellspring of the value provided by
the DBJ Group. We intend to improve our human resource
and organizational capabilities with the aim of implementing
our constantly changing business model, and our mission,
Vision 2030, and values (see page 4, Corporate Philosophy).

Value Creation Story

Human Resourcesthat Relentlessly Takeon New Challenges

Human Resource Development
We aim to be an organization with diverse
human resources that helps employees
develop skills while raising their motivation.

47

Human Resource Development

Secondments to external institutions (national g­ overnment
agencies, Group companies, etc.)

Management Foundation Strategy

New
employees

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Management Foundation Strategy

49

Human Resource Development

Global Human Resource Training Collaboration Program

Initiatives to Increase Value of Human Capital

Training Personnel and Improving Engagement
Through practical on-the-job training and extensive training
opportunities, the DBJ Group develops employees withdiverse experiences, skills, and the ability to work togetherorganically as a team. We constantly assess whether we havelaid the proper foundation for genuinely motivating officers
and employees to take the initiative in accordance with the
DBJ Group’s corporate philosophy.

around the world, and companies that have received investments.

•	Interviewing employees: All willing employees are interviewed
by the Human Resources Management Department aboutchanges in internal positions and their longer-term career paths.
• Improving engagement: Every fiscal year, DBJ conducts
engagement surveys of personnel, evaluates the results ofthese surveys, and creates action plans that enable eachdepartment to increase employee motivation throughimprovement activities.

 ncourage trainees to consider their own careers and the vision for DBJ by understanding their work and the organization from a top-down•Eperspective
IMD: Orchestrating Winning Performance(OWP)

Oxford: Global Strategic Alignment
Leadership Programme (GSALP)

15–20 people

15–20 people
Start of July to end of November(Oxford for one week in late November)
Said Business School, University of Oxford, Oxford,
United Kingdom
Professor Jonathan Trevor, and others

No. of applicants
Dates

End of May to end of August (Lausanne for one week in late June)
International Institute for Management Development (IMD),
Lausanne, Switzerland
Professor Salvatore Cantale, and others

Partner
Instructors

LEAD Program—In Affiliation with Waseda Business School
Called Leadership Education and Ability Development (LEAD), this original DBJ training
program invites outside lecturers from Waseda University’s Graduate School of Businessand Finance and other universities to lead seminars on career development based onparticipants’ own strengths, learning soft skills for leadership and management positions,and understanding global macro trends as well as organizational and strategic theory.
Purpose of Program• Provide a space for participants to deepen their understanding of the DBJ Group’s management strategies and philosophy, analyze theircurrent roles and responsibilities in the context of their affiliated departments and the DBJ Group as a whole in light of changes in society
and the environment, and think about the future•P rovide a space for participants to think more about their career paths in terms of personal development and contributions to theorganization
Waseda Business School-Affiliated Program: Leadership Education and Ability Development (LEAD)
No. of applicants
About 15 people

ModuleNovember to December

Module1

2 daysPartner

Instructors

Waseda Business School,
and other institutions

Professor Jusuke Ikegami,
Professor Masakazu Sugiura,and others

Module2

3

3 days1 day

Organizational theory

Global trends

Management strategy theory

Leadership, careers(taught by Waseda Business
School)Career development(taught by BRICOLEUR)

Ability development theory(taught by GLOBIS University)• Learn about frameworks oforganizational theory and management strategy theory, deepen understanding of DBJ’s medium-term
management plan, and understand
one’s own role
• Learn about ability development
theory while understanding one’s
own strengths
Training program for new employees

Dates

Corporate Data

Diversity Management and Productivity Improvements
In order to create workplaces where employees feel motivatedby their work, DBJ takes steps to foster mutual understanding
and improve the productivity of each employee.
•	DBJ is improving productivity and resilience with systems
that allow for flexible workstyles, such as working from
home, and flexible hours with core work times. During the
COVID-19 pandemic, employees worked flexibly from homeand staggered their office work hours as we prioritized thehealth and safety of our executives and employees while
ensuring that our work could be carried out.
•	DBJ holds seminars with specialists as guest speakers on
topics that include finding daycare, childcare, and nursing
care with the aim of improving its employment and vacation
systems, such as maternity leave, shortened work hours,
time off for childcare, and other programs for raisingchildren and caring for elderly family members.
•	DBJ encourages employees to build relationships based on
mutual trust and cooperation through various seminars—
including on building understanding of people withdisabilities—and through the creation and distribution of aguide about balancing work with childcare and nursing care.
•	DBJ continues to hold training and networking events on
career development aimed at empowering women in theworkplace.
•	In addition to periodic health checkups, DBJ supports thephysical and mental health of all its executives andemployees by providing them with personal resilience
training, and maintaining a counseling system staffed byexternal specialists.

• Imbue trainees with the ability to handle overseas assignments independently by sharpening self-analysis with diverse, cutting-edgeknowledge

Corporate Governance•	Developing global human resources: Opportunities tostudy abroad at overseas universities and training systems
are made available to employees. DBJ also operates its own
leadership training program (entirely in English) for young
employees and management-level employees, incollaboration with top overseas universities.
•	Training women for leadership positions: DBJ offers
leadership training programs with links to top domestic
universities.
•	Offering in-house training and supplementary programs:
The DBJ Group offers employees supplementary programsfor self-study as well as rank-based training to learn therequirements of their roles as needed, including extensive
work- and management-related training. DBJ offers a wide
range of high-quality skills development programs.
•	Providing training for new employees: Newly hired
employees undergo a one-year series of training programs to
support their professional growth, starting with DBJ’s threemonth in-house accounting and financial analysis course.
•	Offering more advanced and flexible training programs:
Through an appropriate balance of in-person and online
training, we seek to maximize the impact of training and put
in place environments that facilitate employee learning.
•	Spreading awareness of corporate philosophy andmanagement plan: During training on career development,
DBJ facilitates constructive discussions with employees
so they can better understand, improve on, and put into
practice our corporate philosophy. We also train employees
to become proficient in investment and loan operations,based on our GRIT Strategy for realizing a sustainable society.

* DBJ dispatches employees to national government agencies, Group companies

Purpose of Program• Train global management personnel to solve diverse management issues faced by customers
around the world

StrategyStrengthening Hiring and Strategic Allocation of Human
Resources Across the GroupThe DBJ Group will strengthen its hiring processes andpractices for both new college graduates and mid-careerhires, in order to secure personnel with diverse backgrounds
and thinking who are needed across the Group to implement
its sector, function, and area strategies.
The DBJ Group will also work to further disseminate its
vision and value creation process by increasing the transfer
of employees across the DBJ Group.

•	Making strategic personnel rotations: Employees are
strategically rotated so that they steadily develop highly
specialized skills by gaining practical and diverse experienceand broad perspectives in multiple departments and outside
institutions.*

Value Creation Story

The DBJ Group undertakes various measures to further
increase the value of its human capital in line with its valuesof initiative and integrity and its four core corporate values.

Designed to foster a management mindset among DBJ’s young, management-track
employees, this three- to four-month customizable training program is based on Groupprojects and facilitated by a team of instructors from an international business school,with one week of the program taking place on-site at the school.

• Learn about changes in theenvironment, such as the latest trends
in the economy, society, and industry,and rethink the future of DBJ• Learn soft skills related to one’s
career, such as leadership, management, and motivation• Rethink value systems and career
perspectives by interviewing seniorcolleagues about their careers• Integrate learning from Modules 1
and 2

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Management Foundation Strategy

To improve intellectual, relationship, andsocial capital using the management
resources of the DBJ Group, we are
accumulating knowledge while advancing
collaboration with various stakeholders.

Intellectual Capital
Knowledge
Industry Analysis
DBJ analyzes and disseminates information on economic andindustrial trends in Japan and overseas, including
macroeconomic trends and trends in key industries.

2050 Growth Strategy Headquarters Meeting
This cross-divisional assembly, including members of senior
management, is held for the purpose of advancing the GRIT
Strategy in the Fifth Medium-Term Management Plan.

Digital Strategy Office
Based on the DBJ–DX Vision, the Digital Strategy Officeconsists of members across departments, and is in charge ofdigitalizing in-house business processes and solving customer
issues related to digital transformation (DX).

https://www.dbj.jp/en/investigate/
Please refer to the DBJ website for more information about our research reports.

Stakeholder Engagement and Collaboration
Customers• Provided DBJ Sustainability Certification Loan programs • Held a business plan competition for women• Provided platforms for collaboration via DBJ Connect• Supported innovation with iHub

Financial
institutions• Collaborated with Long-Term Investors Club (LTIC)• Coordinated operations with Bridges Fund Management Ltd. in the United Kingdom

Government
Research
institutions• Participated in high-level panel about ESG finance		

• Participated in Task Force on Climaterelated Financial Disclosures (TCFD) scenario
analysis support project• Held DBJ Financial Academy at RICF

Social Capital
The DBJ Group defines social
capital as a resource sharedacross society that underpins thefoundations of market
economics. Increasing the valueof social capital is a basic tenet
for realizing a sustainable society.

G R I T Strategy

Social Capital

Details

Examples of Initiatives
Environmentally Rated Loan Program,
DBJ Green Building Certification(1) N aturalenvironment

Forests, mountains, rivers, lakes, soil, air(2) Social
infrastructure

Loans and investments for infrastructure
Energy, transportation, urban infrastructure,and industrial projects, BCM Rated Loan
industrial value chains
Program(3) System capital

Stabilization of the financial system,
development and invigoration of financial
markets

Crisis Response Operations, supply of risk
capital, sustainability bond issuance

Project Spotlight

Mutual Cooperation Agreement with NEDO:
Accelerating Innovation Toward Carbon Neutrality in 2050
DBJ has entered into a mutual cooperation agreement with New Energy and Industrial Technology Development
Organization (NEDO) with the objective of accelerating innovation to help build a sustainable society and realize theJapanese government’s goal of achieving carbon neutrality by 2050.
Based on this agreement, both parties will strive to create
innovations while embedding in society the outcomes of groundbreaking R&D, by organically combining NEDO’s technologicalstrategies in diverse technical fields and its management’s insightand know-how with DBJ’s broad industrial network ofconnections and expertise in finance.
Through this agreement, DBJ will support the commercializationof NEDO’s projects by helping to maintain business foundations,advance R&D and explore opportunities for coordination withprivate companies. We aim to realize a sustainable society
through our GRIT Strategy in the Fifth Medium-Term
Management Plan.
Mutual cooperation agreement signing ceremony

Corporate Data

Processes

The DBJ Group has built diverse networks with customers, financial institutions, investors, and national and local government
agencies for exchanging information and avoiding conflicts of interest. The DBJ Group utilizes its unique networks to identify
issues affecting the economy and society and to conduct investment and loan operations. We aim to maintain our reputation andimprove our brand value through the services we provide to customers.

Corporate GovernanceResearch Institute of Capital Formation
The Research Institute of Capital Formation (RICF) wasestablished in 1964 with Dr. Osamu Shimomura as its first
executive officer. The institute serves as a venue for creating
intellectual capital through cooperation and collaboration withexternal experts. Its research includes a focus on building asustainable economy and society, from an academic andliberal standpoint.

Relationship Capital

Strategy

Capital Investment Planning Survey
With a history of more than 60 years, and first conducted in
1956, DBJ’s Capital Investment Planning Survey examines
trends in corporate capital investment in Japan, capital
investment overseas, and spending on research anddevelopment (R&D), mergers and acquisitions, and humanresources through interviews with senior managers.

Knowledge and Collaboration

Value Creation Story

Knowledge and Collaboration

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Response to the TCFD Recommendations



Basic Approach

Planning & Coordination Department to advance various
measures and act as a hub for information inside and outside
the DBJ Group.
The Advisory Board, an advisory body to the Board of
Directors consisting of outside experts and outside directors,
reports on the progress of initiatives, such as the GRIT
Strategy and other business plans, and the content of its
deliberations is reflected in business plans and measures toenhance risk management.

Organizational Chart
Advisory Board•T CFD recommendation trends and policy for
response

Sustainability
Committee

Discusses and monitors policies and initiatives
to address issues related to sustainability,
such as climate change

ALM* &
Risk Management
Committee

Deliberates and reports the state of initiatives
related to risk management, including climatechange risks•E nvironmental and social management policy forinvestments and loans•P olicy for response to coal-fired power generation•A doption of the Equator Principles•E ditorial policy for the annual integrated report

In fiscal 2019, DBJ began to analyze scenarios for 2030–2050
from medium- and long-term standpoints. In light of future
uncertainties associated with climate change, financial
institutions must envision a variety of scenarios for the economy
and society in the future, and consider changes in their portfolios and countermeasures based on these scenarios. As an
initial approach, we utilized Shared Socioeconomic Pathways(SSPs), which are GHG emissions scenarios under various
climate policies, to analyze and assess the impact on
businesses. Our focus was on transition opportunities in thecontext of government policies and regulations and technologicalinnovation for attaining low-carbon or zero-carbon society inthe framework of four visions for the world in the future.

Summary of Analysis
Sectors covered

Energy, transportation, urban development

Scenario

Use SSP scenarios to analyze scenarios where
the average temperature increases by 1.5°C, 2°C,
and 4°C

Relevant
technologies

Carbon capture and storage, electric vehicles,
biomass, hydrogen, renewable energy

Period covered

2030–2050

Analysis of Climate-Related Risks
The DBJ Group is aware of climate-related financial risks interms of transition risks and physical risks. Transition risks
could impact the business strategy of the DBJ Group by
increasing credit costs if the creditworthiness of the recipientsof its investments and loans declines due to lower sales andhigher costs, mainly from the introduction of a carbon tax andupgrades to low-carbon technologies. Physical costs mightalso impact our business strategy by increasing credit costs if
the creditworthiness of the recipients of our investments andloans declines due to damages to collateral value as a result ofabnormal weather or supply chain disruptions.
In fiscal 2021, DBJ analyzed scenarios for the electric power
sector, including structured finance projects for energy projects
in Japan and around the world (for transition risks), and damage
to collateral value due to water disaster (for physical risks). The
results of this analysis indicate that even if DBJ’s current portfolio
balance were to stay the same, the financial impact would be
limited to an acceptable level from a long-term perspective.
The DBJ Group is aware that the methodologies and data
used to analyze financial risks related to climate change
continue to evolve. While monitoring trends in this field, we will
adopt more advanced methods of analysis if necessary.

Summary of Analysis
Transition risk

Physical risk

Risk event

Sudden change
in policy toward
net zero GHG emissions

Water damage(flooding)

Scenario

NGFS*1 Delayed
Transition scenario

IPCC*2 RCP*3 8.5(4ºC scenario)

Present analysis
targets

Electric power sector

Damage to collateralvalue as a result offlooding

Assets covered

Balance of investments
and loans

Balance of loans

Analysis period

By 2050

By 2050

About ¥40.0 billion(cumulative)

About ¥6.0 billion(cumulative)

Analysis results(level of increase incredit costs)*1 NGFS: Network for Greening the Financial System*2 IPCC: Intergovernmental Panel on Climate Change*3 RCP: Representative Concentration Pathway

Corporate Data

Executive Committee

List of Key Matters Discussed
by the Sustainability Committee

Analysis of Climate-Related Opportunities

Corporate Governance

Under the Executive Committee, the Sustainability Committee
deliberates on policy responses to various sustainability-related
issues, such as climate change, and monitors progress oncorresponding initiatives. With regard to the content of
stakeholder communications and important initiatives inmanagement strategy, the Sustainability Committee
deliberates and reports these matters to the Board of
Directors after the Executive Committee reviews and decides
such matters. The Sustainability Management Office has
been created as an administrative body within the Corporate

When formulating its Vision 2030 (see page 4), the DBJ Group identified climate change, natural resources, and energy as areas ofchange in the external environment that are having a major impact on the stakeholders of the DBJ Group. Properly understanding therisks and opportunities related to climate change is essential when establishing business strategies. The DBJ Group intends topursue net zero GHG emissions for its investment and loan portfolio by 2050. Based on a scenario where the world moves toward
decarbonized society (with an average rise in global temperatures below 2.0°C), we are advancing initiatives that take into account theresults of our analysis of risks and opportunities, including those in scenarios where average temperatures increase more than 2.0°C.

Strategy*G RIT: Green, Resilience & Recovery, Innovation, and Transition / Transformation

Basic Approach to Climate-Related Risks and Opportunities
Value Creation Story

path to creating a sustainable society while also ensuring astable supply of energy.
Under the Fifth Medium-Term Management Plan (seepage 16), which commenced in fiscal 2021, the DBJ Groupis advancing its GRIT Strategy* with the aim of building an
industrial foundation as well as flexible, strong, safe, andsecure regions and communities in a green society. At thesame time, through dialogue (engagement) with customers,
the DBJ Group supports their efforts in the transition to
decarbonized society.
The DBJ Group intends to pursue net zero GHG emissions
for its investment and loan portfolio by 2050 while solving
management issues and assisting its customers’ efforts todecarbonize. Through this process, we are helping Japan
maintain and strengthen its competitiveness and spurring
growth in our customers’ businesses.

Governance* ALM: asset liability management

Response to the TCFD Recommendations

Strategy

Since the adoption of the Paris Agreement in 2015,
governments, industrial groups and companies around theworld have declared commitments to move towards a
decarbonized society, and activities are gaining momentum tomitigate and adapt to climate change. In October 2020, theJapanese government declared a goal of carbon neutrality by
2050, and various government policies are advancing theachievement of net zero greenhouse gas (GHG) emissions.
In May 2017, the DBJ Group set out its Policy on
Sustainability to represent its basic approach to contributing
to the realization of a sustainable society that balances
economic value with social value. Based on this policy, the
DBJ Group contributes to the realization of decarbonizedsociety by solving issues faced by regions and its customers
while collaborating with stakeholders. The DBJ Group has
positioned addressing climate change, a problem affecting
the entire world, as a priority of the utmost importance on the

Board of Directors

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Response to the TCFD Recommendations

Strategy Based on Analysis of Climate-Related Risks and Opportunities

Through constructive dialogue (engagement) with customers, we enhance mutual understanding of management issues andawareness of problems, deepen our understanding of each customer’s needs and issues, and propose solutions. In this way,
we offer support through investments and loans and consulting and advisory services backed by the strengths of the entire
DBJ Group.

A hydrogen supply chain is an essential
part of sustainable growth and Japan’s
efforts to become carbon neutral. In
consultation with DBJ, Kawasaki Heavy
Industries, Ltd. set key performanceindicators and sustainability performancetargets (SPTs) for its extensive
Hydrogen Road initiatives linking
hydrogen production sites with energy
consumers. DBJ Group then extended
DBJ Sustainability Linked Loans withEngagement Dialogue to the company.
During the loan period, we will support
the company through periodic dialogue
as it strives to achieve its SPTs.

Ferry Sunflower Limited, asubsidiary of Mitsui O.S.K. Lines,
plans to operate the first two
ferries fueled by liquefied naturalgas (LNG) in Japan. These LNGfueled ferries were selected as a
Climate Transition Finance Model
Project by the Ministry of Economy,
Trade and Industry, and the DBJ
Group extended a syndicatedtransition loan for this project.
This syndicated loan was put
together with Sumitomo Mitsui
Trust Bank, Limited and regional
financial institutions.

Shikokuchuo City Carbon Neutrality
Council
As a part of their efforts to foster carbon
neutrality, Ehime Paper Co., Ltd., Daio Paper
Corporation, and Marusumi Paper Co., Ltd.
established this council to evaluate energy
conversion throughout the Shikokuchuo area.
As it examines the possibility of building
shared energy infrastructure for the region,
the council is gathering a wide range of
information about government policy trends
and assessments of the safety, economic
viability, and procurement reliability of hydrogenand other types of energy. The council is also
evaluating practical measures and road maps
in collaboration with local governments.

Risk Management
Risk Management
The DBJ Group recognizes that being underprepared for climate change is a risk that could significantly impact on management.
It therefore analyzes potential impacts based on a range of scenarios and formulates initiatives and policies to deal with this risk.
The DBJ Group has introduced business-specific policies for investments and loans in particular sectors, and monitors progressin partnership with the Sustainability Committee.

In 2021, the DBJ Group set policies
for investments and loans forbusinesses likely to entail majorrisks or negative impacts on theenvironment and society, and forfinance for specific sectors. In fiscal
2022, DBJ is reviewing these policies
as necessary.

Operations Based on the Equator
Principles

Operations Based on the Poseidon
Principles

The DBJ Group adopted the Equator
Principles in 2020 and uses them as
the basis for identifying, assessing,and managing the environmental andsocial risks associated with large-scale
projects, with guidance from theEnvironmental & Social Assessment
Office.

The Poseidon Principles were created as aframework for financial institutions to deal
with climate change risks in the marinetransportation industry. The DBJ Group
became a signatory in 2021, and every year
discloses its contributions to reducing GHG
emissions in the context of ship financing. We
endeavor to provide investments and loansthat take climate change risks into account.

Please refer to the DBJ website for more information about the Equator Principles.

https://www.dbj.jp/en/sustainability/collaboration/initiative/equator_principles.html

Please refer to the DBJ website for more information about the Poseidon Principles.

https://www.dbj.jp/en/topics/dbj_news/2021/html/20210520_203260.html

The DBJ Group intends to pursue net zero emissions by
2050, not only for Scope 1 (direct emissions) and Scope 2(indirect emissions) but also for Scope 3 (emissions frominvestments and loans).

PCAF Methodology
Scope 1 and 2
Scope 1 and Scope 2 GHG emissions from corporate
activities are measured and tallied for DBJ and eight majordomestic Group companies. DBJ has created an environmental
management system overseen by the managing executive
officer in charge of the Corporate Planning & Coordination
Department and promotes ongoing initiatives to achieve
improvement targets and make specific contributions to theenvironment.
Results
Fiscal 2019

Results
Fiscal 2020

Results
Fiscal 2021

3,270 t-CO2

3,074 t-CO2

2,473 t-CO2

Scope: DBJ Head Office, 10 branch offices, eight representative offices,
DBJ Capital Co., Ltd., DBJ Securities Co., Ltd., DBJ Asset Management
Co., Ltd., Japan Economic Research Institute Inc., Value Management
Institute Inc., DBJ Real Estate Co., Ltd., Consist Inc., DBJ BusinessSupport Co., Ltd.
Items covered: Scope 1: Gasoline in company vehicles
Scope 2: Electricity, fuel (kerosene, fuel oil, coal gas, city gas)

Regarding detailed measurement methods for GHG
emissions via investments and loans, the Global GHG
Accounting and Reporting Standard for the Financial Industry
is used to validate and estimate GHG emissions in each class ofassets for investment and loan activities for financial institutions.

Future Policies
The DBJ Group will measure Scope 3 emissions whileconsidering the following main validation issues in measurement.
(1) We will select the energy sector (electricity, oil, and gas) as
the sector for measurement.
(2) We will continue to examine the best indicators fordisclosure (emissions intensity, absolute emissions, etc.).
(3) W e will aim to improve the quality of emissions data
gathering by updating data gathering methods in stages
with reference to ongoing dialogue with customers.

Corporate Data

Initiatives Based on Environmental
and Social Management Policy for
Financing and Investment Activity

GHG Emissions Targets

Based on its policy of achieving net zero GHG emissions for
its portfolio of investments and loans by 2050, the DBJ Groupis committed to measuring and disclosing its GHG emissions.
We believe it will be important to measure and monitor Scope
3 emissions along with the amount of credit provided to
sectors that emit large quantities of GHG emissions, such asenergy and transportation.
While deepening our understanding of measurement
methodologies in this context, we are validating andestimating GHG emissions in the energy sector following themethodology of the Global GHG Accounting and ReportingStandard for the Financial Industry, which was developed by
the Partnership for Carbon Accounting Financials (PCAF).

Corporate Governance

Mitsui O.S.K. Lines

DBJ has set a target of ¥5.5 trillion in investments and loans
related to its GRIT Strategy over the five-year period of its Fifth
Medium-Term Management Plan. In fiscal 2021, DBJ made¥754.4 billion in investments and loans (see page 14). With aneye on future targets, we will proactively support initiatives totackle climate change at companies receiving investments
and loans from us.

Scope 3Strategy

Kawasaki Heavy Industries, Ltd.

Example (3)Climate Change-Related Targets at Companies
Receiving Investments and Loans

Value Creation Story

Constructive Dialogue (Engagement) with Customers

Example (2)Response to the TCFD Recommendations

Indicators and Targets

In addition to analyzing climate-related risks and opportunities, The DBJ Group is advancing green, transition, and innovation
initiatives through its GRIT Strategy, and intends to make investments and loans totaling ¥5.5 trillion over the five years of the strategy.
Under this policy, the Group is providing sustainable financing and consulting and advisory services (see page 20) to support
the initiatives of its customers to decarbonize. The DBJ Group is also supplying risk capital to climate technology firms.

Example (1)

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Corporate Governance

Development Bank of Japan Inc.
Integrated Report 2022

Corporate GovernanceIn order to continue playing this unique role, DBJ must have robust corporate governance, ensuretransparency in management, and consider the opinions of outside experts. To realize this aim, we havecreated the Internal Audit Committee, the Compensation Committee, and the Personnel Evaluation
Committee as advisory bodies to the Board of Directors. Listening to the views of our stakeholders isimperative to strengthening this framework.
It is essential that DBJ collaborate and cooperate with rather than compete with private financial
institutions. We hold regular events for this purpose, usually twice a year, involving discussions with

Given international trends that are accelerating the strengthening of measures to address climate change,such as the adoption of the Paris Agreement and the hosting of COP26 (the 26th United Nations Climate
Change Conference), the DBJ Group established its Sustainability Committee to deal with the growing
need to review corporate management from a sustainability standpoint, including the enhancement ofcorporate information disclosure about sustainability, and to discuss important management mattersregarding constantly changing social issues. In fiscal 2021, directors engaged in invigorating discussions
about the DBJ Group’s response and initiatives related to the transition to a carbon-free society and its
potential impact on Japan’s industrial structure. These discussions were reflected in business plans. In
fiscal 2022, we plan to discuss DBJ Group initiatives connected to the environment and society, including
our approach to energy and climate change-related issues, from a medium- to long-term perspective.
To realize a sustainable society while balancing economic and social value, the DBJ Group offers
solutions to issues faced by society and by our customers. The Group has continued to create innovative
business models, centered on the supply of risk capital, in an effort to advance sustainability management
and maintain a balanced value creation process. As the social significance of balancing these two types ofvalue increases, we will continue making every effort to engage in dialogue with our diverse stakeholders
and ensure robust and effective corporate governance, based on the notion that nothing is more important
than embodying best practices that will continue to earn us the trust of our customers and society.
August 2022

Yasushi Kinoshita
Chairman

Corporate Data

Governance Suited to Our Unique Business Model and
Dialogue with Stakeholders

A Value Creation Process That Balances Economic andSocial Value

Corporate Governance

The DBJ Group practices sustainability management in accordance with the Development Bank of Japan
Inc. Act, balancing economic and social value with the aim of building a sustainable society. We supply risk
capital to forward-looking initiatives through our Special Investment Operations program and collaborate
and cooperate with private financial institutions to stimulate new flows of risk capital in Japan. DBJ’s
investments and loans in new fields help strengthen Japan’s economic competitiveness. We also address
local issues through risk capital supplied through joint funds created with regional financial institutions.
Furthermore, DBJ functions as an emergency supplier of capital for responses to natural disasters andother crises. Following the Great East Japan Earthquake, the Kumamoto earthquakes, and other events
calling for rapid influxes of capital, DBJ has been there to provide relief.
After the Japanese government declared the COVID-19 pandemic a crisis in March 2020, as adesignated financial institution the DBJ Group concentrated on Crisis Response Operations to address theimpacts of the pandemic over the past few years. In fiscal 2021, in light of the requests being made by thegovernment with the pandemic still ongoing, we strengthened our temporary support for businesses by
arranging an underwriting fund for preferred shares issued by mid-tier and large enterprises in sectors thathave been hit hard by the pandemic, such as the restaurants and hotels sector.
While continuing to concentrate on Crisis Response Operations during the COVID-19 pandemic, DBJ
will pursue innovative ways to provide financing from a customer perspective based on its GRIT Strategy(see page 17), which sets out the priority fields the DBJ Group is focusing on under its Fifth Medium-Term
Management Plan to realize a sustainable society in the future.

Strategy

Creation of a Unique Business Model

representatives of such institutions. We have also created the Special Investment Operations Monitoring
Board (see page 60) as an advisory body to the Board of Directors. The board meets twice a year to
discuss and evaluate the status of the Bank’s business performance, as well as its complementing andencouraging of private business and maintenance of non-competitive relationships.
The opinions we obtain both through our outreach to private financial institutions and through theoutcomes of deliberations by the Special Investment Operations Monitoring Board are debated by theAdvisory Board, an advisory body to the Board of Directors comprising outside experts and directors infields including manufacturing, infrastructure, regional communities, and finance (see page 59). The
Advisory Board provides valuable ideas on matters concerning the safeguarding of proper competition
with private financial institutions and the DBJ Group’s management plans. In my view, a distinct aspect ofcorporate governance at the DBJ Group is its continuous reassessment of its unique value creation
process while engaging in dialogue with diverse stakeholders.
Living up to the trust placed in us by society, we want to keep our initiatives one step ahead of thetimes, especially in regard to the supply of risk capital, and this means ensuring that we operate inconformity with the Companies Act. For this purpose, the Board of Directors formulated the Basic Policy
for Internal Control, which positions the strengthening of legal compliance, risk management, and internal
audits as important subjects for management.

Value Creation Story

Messagefrom theChairmanWith ongoing efforts to strengthen
governance, DBJ contributes
to sustainable growth throughan innovative process of value
creation.

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Corporate Governance59

Corporate Governance	Audit & Supervisory Board Members, Audit & Supervisory Board

Basic Position on Corporate Governance
DBJ is governed by the Development Bank of Japan Inc. Act (the DBJ Act) in accordance with the following objective.

Value Creation Story

Article 1
Development Bank of Japan Inc. (hereinafter referred to as the “Corporation”) shall be a joint-stock company (kabushiki-kaisha)
whose objective is to contribute to the smooth supply of funds to those needing long-term business funds, as well as to thesophistication of financial functions.

The Audit & Supervisory Board comprises five members. The Companies Act prescribes that a majority of Audit & Supervisory
Board members be outside members (in DBJ’s case, three of the five). DBJ offices contribute three members (two members
proper to DBJ and one an outside member).
Also, DBJ has created the Audit & Supervisory Board Office, which, under the board’s direction, assists board members,
including outside members, in performing their duties. The Audit & Supervisory Board and Audit & Supervisory Board members
audit the execution of duties by members of the Board of Directors, based on their audit policy and audit plans.
Audit & Supervisory Board members attend Board of Directors’ and other important meetings and may query the execution ofbusiness by members of the Board of Directors, peruse documents, and conduct audits at branches and subsidiaries.

Advisory Bodies to the Board of Directors

Matters requiring authorization ofcompetent minister• Appointment and dismissal of representative
members of the Board of Directors and Audit& Supervisory Board members• Disposition of surplus funds

Compensation
Committee
Personnel Evaluation
Committee• Mergers, corporate splits, and dissolutions• Basic policy on business plans, redemption
plans, and fund procurement

Subsidiaries

Internal
Audit Department

AuditsDeliberative
bodiesGeneral Risk
Management
Committee

Committee on
Investment and
Loan Decisions

New Operation
Screening
Committee

Advisory Panelon Investments
and Loans

Sustainability
Committee

Investment
Management
Committee

The Compensation Committee, the majority of which consists of outside executives, considers the type of executive compensation
structure that befits DBJ from the standpoint of ensuring transparency and objectivity regarding compensation.

Personnel Evaluation Committee 
The Personnel Evaluation Committee, composed of outside members of the Board of Directors and other outside experts,
evaluates personnel proposals on the selection of members of the Board of Directors and Audit & Supervisory Board members.

Advisory Board 
Since DBJ’s establishment as a joint-stock company in October 2008, the Advisory Board has been in place as an advisory bodyto the Executive Committee, providing advice on overall management. Revisions in 2015 to the DBJ Act stipulate for an indefinite
period obligatory measures to be considered—in particular, requiring that DBJ conduct its operations in a manner that would not
obstruct appropriate competitive relations with other entities. Accordingly, this board is positioned anew as an advisory body to
the Board of Directors. As one of its roles, even more than before, the Advisory Board is tasked with deliberating and evaluating
important matters related to ensuring that appropriate competitive relations are maintained with private financial institutions.
This board convened twice during the fiscal year ended March 31, 2022. It is composed of the following outside members of
the Board of Directors and outside experts in fields including manufacturing, infrastructure, regional communities, and finance.

Reiko Akiike

The Boston Consulting Group K.K. Co-Chairperson

Kazuaki Kama

Senior Advisor, IHI Corporation

Takeshi Kunibe

Chairman, Sumitomo Mitsui Financial Group, Inc.

Hidetoshi Sakuma

Chairman (Representative Director), Group Chief Executive Officer, The Chiba Bank, Ltd.

Yoshizumi Nezu

President, Tobu Railway Co., Ltd.

Outside Members of the Board of Directors

Special Investment Operations
Monitoring Board

Decision-making
bodiesDepartments

Cooperation

Advisory Board
Executive Committee

ALM & Risk
Management
Committee

Accounting auditor

ReportingCompensation Committee Outside Experts (As of June 30, 2022)

ReportingInternal
Audit Committee
Board of Directors• Amendments to Articles of Incorporation

Audit & Supervisory
Board members,
Audit & Supervisory Board

The Board of Directors has established the Internal Audit Committee, delegating to this body the authority to deliberate importantmatters related to internal audits. This committee met three times during the fiscal year ended March 31, 2022.

AuditsAkio Mimura

Honorary Chairman of Nippon Steel Corporation

Kazuo Ueda

Professor, Dean of Faculty of Business Studies at Kyoritsu Women’s University

Corporate Data

• Concurrent positions as members of theBoard of Directors

General Meeting of
Shareholders

Internal Audit Committee 

Corporate Governance

Overview of DBJ’s Corporate Governance System

In pursuit of sustainability management and corporate objectives, the following advisory bodies to the Board of Directors havebeen established for the purpose of maintaining transparency in management and to reflect the knowledge of outside experts.

Strategy

DBJ is working to enhance its unique governance system in addition to usual management supervision as a company with a boardof directors and company auditors (Audit & Supervisory Board), through a business model built upon features such as integrated
investments and loans and proper execution of the preceding objective, in order to raise the value of tangible and intangible
management resources to be invested and to realize sustainable
management that aims for both economic and social value.
DBJ’s Corporate Governance System
Specifically, the 2015 revisions to the DBJ Act established
A company with a board ofSpecial Investment Operations and obligatory measures toInstitutional design configuration
directors and company auditors(Audit & Supervisory Board)
be considered, requiring that DBJ conduct its operations in
Number of members of the Board of10
a manner that does not obstruct appropriate competitive
Directors­relations with other entities, in particular, applying these(2) Of whom are outside members­requirements to the Advisory Board, made up of outside
Number of Board of Directors’
14
meetings in fiscal 2021
experts and outside members of the Board of Directors, andNumber of Audit & Supervisory Board
the Special Investment Operations Monitoring Board, composed5
membersof outside experts, which function as advisory bodies to the(3) Of whom are outside members
Board of Directors. These bodies provide advice on DBJ’s overall
Number of Audit & Supervisory Board
14
management and deliberate and evaluate business results,
meetings in fiscal 2021
including consistency with the policy objectives of Special
Adoption of executive officer system
Yes
Investment Operations, ensuring that appropriate competitive
Accounting auditor
Deloitte Touche Tohmatsu LLC
relations are maintained with private financial institutions.

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Corporate GovernanceSpecial Investment Operations Monitoring Board Outside Experts (as of June 30, 2022)
Chairman, Sumitomo Mitsui Financial Group, Inc.

Hidetoshi Sakuma

Chairman (Representative Director), Group Chief Executive Officer, The Chiba Bank, Ltd.

Kosei Shindo

Representative Director and Chairman, Nippon Steel Corporation

Keiko Tashiro

Deputy President, Member of the Board, Daiwa Securities Group, Inc.

Tsuji Matsuo

Vice Chairman & Senior Executive Director, Japanese Bankers Association

Sadatoshi Tsumagari

Representative Director and President, Nippon Gas Co., Ltd.

Executive Committee Internal Audits

Name
ALM & Risk
Management
Committee

Role
This committee deliberates and makes decisions
pertaining to portfolio risk management andasset–liability management.

General Risk
Management
Committee

This committee deliberates and makes decisions onimportant items related to operational risk
management, system risk management, legal
compliance, responses to antisocial forces, client
protection management, and other important items.

Committee on
Investment and
Loan Decisions

This committee handles, deliberates, and makes
decisions related to investments and loans, overseas
business strategy, and operations and management
conditions.

New Operation
Screening
Committee

This committee deliberates and makes decisions on
the commencement of initiatives involving new
businesses.

Advisory Panelon Investments
and Loans

This panel handles the advance deliberation on andmonitoring of investments and loans as well as
deliberations on overseas business strategy andoperations and management conditions.

Sustainability
Committee

This committee deliberates on items related to both
economic and social value as well as dialogue withstakeholders.

Investment
Management
Committee

This committee monitors investment projects andenhances the monitoring system, as well as discussing planned proposals for investment policies.

Below is a description of the compensation structure for members of the Board of Directors.
Compensation for full-time members of the Board of Directors consists of fixed compensation, executive bonuses, andexecutive retirement benefits. To maintain their independence, part-time members of the Board of Directors receive fixedcompensation alone.
Compensation for full-time Audit & Supervisory Board members comprises fixed compensation, and executive retirement
benefits. Compensation for part-time Audit & Supervisory Board members consists solely of fixed compensation.
The amount of compensation paid to members of the Board of Directors is determined after deliberation by the Board of
Directors, within the maximum amount approved at the General Meeting of Shareholders following discussions by theCompensation Committee. Compensation amounts are based on the position and responsibilities of each member of the Boardof Directors, with due consideration given to social trends, DBJ’s financial performance, and other standards balanced against
employee salaries. The Articles of Incorporation limit the number of directors to 13 or less.
The General Meeting of Shareholders held on June 29, 2017, passed a resolution that sets ¥270 million as the maximum annual
amount for total compensation paid to members of the Board of Directors. The Company’s first General Meeting of Shareholders
held on September 22, 2008, passed a resolution that sets ¥80 million as the maximum annual amount for total compensation
paid to Audit & Supervisory Board members. The Articles of Incorporation set the number of Audit & Supervisory Board members
to five or fewer.
The Compensation Committee was established in 2008 to ensure transparency and objectivity in the process for ­determining
compensation, and a majority of members of the Compensation Committee comprises outside executives. This composition
allows independent outside executives to be involved and give relevant advice.

Accounting Audits
DBJ has in place an agreement whereby Deloitte Touche Tohmatsu LLC conducts accounting audits as the Company’s
accounting auditor in accordance with Article 396, Paragraph 1 of the Companies Act and Article 193, Paragraph 2 (i) of the
Financial Instruments and Exchange Act.

Details for fiscal 2021 are as follows.

Compensation Paid to DBJ Board Members in Fiscal 2021
Number of meetings held in
fiscal 2021

Compensation Committee

Three-Pronged Auditing Approach
DBJ’s Audit & Supervisory Board members, the Internal Audit Department, and the accounting auditor periodically and asnecessary exchange opinions and information, and communicate in an effort to ensure effective and appropriate audits.
Please refer to the links below for detailed information
regarding DBJ’s corporate governance.

Internal Control System Basic Policy (Japanese only)

https://www.dbj.jp/co/info/governance_
policy.html

Securities filings (state of corporate governance, etc.)(Japanese only)

Compliance with Japan’s version of the Stewardship Code(Japanese only)

https://www.dbj.jp/ir/financial/report.html

https://www.dbj.jp/co/info/stewardship.html

2Compensation Committee Members in Fiscal 2021
ChairmanYasushi Kinoshita(head of the committee)

President

Hajime Watanabe

Outside member of the Board of
Directors

Akio Mimura

Outside member of the Board of
Directors

Kazuo Ueda

Outside Audit & Supervisory Board
memberToshio Yamasaki

Category

Number ofpeopleCompensation,
etc.
(Millions of yen)

Members of the Board of Directors(Excluding Outside Members of theBoard of Directors)

10

205

Audit & Supervisory Board members(Excluding Outside Audit & Supervisory
Board Members)

2

39

Outside Executives

5

63

Total

17

308

Notes: 1. Compensation amounts include provisions to reserves for executive
retirement benefits.
2. Numbers of persons paid and compensation amounts include two membersof the Board of Directors who retired during fiscal 2021.

Corporate Data

DBJ has established the Internal Audit Department under the
direct supervision of the president and CEO of DBJ andindependent of other operating departments. The department
conducts inspections to ensure the appropriateness andeffectiveness of internal controls, including overall operational
compliance and risk management, and performs evaluations andrecommends improvements. The Internal Audit Committee
deliberates and decides audit plans, audit reports, and otherimportant matters related to internal audits, and this information isreported to the Board of Directors. As of June 29, 2022, 25
people belonged to the Internal Audit Department.

Committees under the Executive Committee

In accordance with this approach, DBJ provides compensation to its executives in three forms: fixed compensation, executive
bonuses, and executive retirement benefits.
(1) Fixed compensation is paid monthly in an amount based on the executive’s position.
(2) E xecutive bonuses are distributed after taking into consideration the performance of each member of the Board of Directors
in carrying out their duties during the fiscal year. Bonuses start with a standard amount based on the position of the memberof the Board of Directors. Bonuses also include a quantitative assessment portion determined based on a preset distribution
percentage that reflects the achievement of the consolidated net income target, as well as a qualitative assessment portion
determined based on a preset distribution percentage that comprehensively considers each executive’s achievement of
performance targets in their business division. Consolidated net income (¥46,815 million in the fiscal year ended March 31,2021) is used as the performance indicator because it most accurately reflects DBJ’s performance.
(3) E xecutive retirement benefits are paid out upon retirement in an amount reflecting successful service over the
longer term.

Corporate Governance

The Board of Directors has vested in the Executive Committee
decision-making authority regarding the execution of business.
Accordingly, the Executive Committee makes importantmanagement decisions. The committee met 31 times during the
fiscal year ended March 31, 2022.

Executive Compensation
DBJ’s Compensation Committee is an advisory body to the Board of Directors. It deliberates on the compensation structure formembers of the Board of Directors and evaluates the propriety of the compensation structure for the Company. The majority ofits members are outside executives.
DBJ takes the following basic approach to executive compensation.
• Compensation should reflect social trends in regard to executive pay.
• Compensation should provide motivation for initiatives aimed at realizing economic and social value during each fiscal year andin the medium to long term.

Strategy

Takeshi Kunibe

Corporate GovernanceValue Creation Story

One of the measures of the 2015 revisions to the DBJ Act was in regard to Special Investment Operations. The act stipulates theestablishment of a Special Investment Operations Monitoring Board as an advisory body to the Board of Directors. This monitoringboard is tasked with deliberating projects and evaluating their performance in terms of appropriateness against policy objectives
and with emboldening private-sector enterprises and complementing their operations while maintaining appropriate competitive
relations. This board, whose members include outside experts from private-sector financial institutions and capital markets,convened twice during the fiscal year ended March 31, 2022.
Moreover, in order to examine whether appropriate competitive relations with other entities are being maintained, roundtablediscussions are held regularly with the Japanese Bankers Association, the Regional Banks Association of Japan, and the Second
Association of Regional Banks, including these entities’ private financial institution members. Each group met twice in fiscal 2021,
for a total of six meetings. Disputes and opinions raised in these meetings are reported to and deliberated by the Advisory Boardand the Special Investment Operations Monitoring Board.

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Members of the Board of Directors, Audit & Supervisory Board
Members, and Executive Officers (As of the end of July 2022)



63

Members of the Board of Directors, Audit & Supervisory Board Members, and Executive Officers

Members of the Board of Directors

Yasushi Kinoshita

Seiji Jige

Norifumi Sugimoto

Member of the Board of Directors,
Managing Executive Officer

Shoichiro Kubota

Member of the Board of Directors,
Managing Executive Officer

Takeshi Harada
In charge of Treasury Department,
Syndication & Credit Trading Department,
Financial Institutions Department

1988: Joined Japan Development Bank
2013: General Manager, Secretariat Office
2015:	Executive Officer,
Head of Corporate Planning & Coordination Department
2018: Managing Executive Officer of DBJ
2020:	Member of the Board of Directors,
Managing Executive Officer of DBJ
2022: Deputy President of DBJ

1990: Joined Japan Development Bank
2014: Head of Real Estate Finance Department
2018:	Executive Officer,
Head of Growth & Cross Border Investment Department
2020:	Member of the Board of Directors,
Managing Executive Officer of DBJ

1988: Joined the Ministry of Finance2017:	Councilor of the Cabinet Secretariat Deputy Director of the
Office for the Promotion of Privatization of Postal Services,
Cabinet Secretariat
2019: Director-General, Tohoku Local Finance Bureau
2021:	Member of the Board of Directors,
Managing Executive Officer of DBJ

Note: Of the 15 members of the Board of Directors and the Audit & Supervisory Board, 14 are male and one is female. The female to male ratio is 6.7%.

In charge of Corporate Planning & Coordination
Department, Information Resources Department,
General Affairs Department

Member of the Board of Directors,
Managing Executive Officer

Kazufusa Matsushima
In charge of Risk Management Department,
Accounting Department,
Credit Analysis Department,
Legal Affairs & Compliance Department,
Research Institute of Capital Formation

Member of the Board of Directors,
Managing Executive Officer

Katsushi Kitajo
In charge of Business Planning &Coordination Department

1988:	Joined Hokkaido-Tohoku Development Finance Public
Corporation
2015: Head of Hokkaido Branch of DBJ
2019:	Executive Officer (in charge of Internal Audit Department)of DBJ
2020: Managing Executive Officer of DBJ
2022:	Member of the Board of Directors,
Managing Executive Officer of DBJ

1990: Joined Japan Development Bank
2017: Head of Business Development Department of DBJ
2019:	Executive Officer,
Head of Human Resources Management Department of DBJ
2021: Managing Executive Officer of DBJ
2022:	Member of the Board of Directors,
Managing Executive Officer of DBJ

Outside Member of the Board of Directors

Akio Mimura
Honorary Chairman of Nippon Steel Corporation,
Chairman of the Tokyo Chamber of Commerce andIndustry, Chairman of the Japan Chamber ofCommerce and Industry

2008: Outside Member of the Board of Directors at DBJ
Corporate Data

In charge of Strategic Finance Department,
Growth & Cross Border Investment Department,
Regional Investment Department,
Business Development Department

1986: Joined Japan Development Bank
2011: Executive Officer in Charge of Special Missions
2013:	Executive Officer,
Head of Corporate Planning & Coordination Department
2015: Managing Executive Officer of DBJ
2018:	Member of the Board of Directors,
Managing Executive Officer of DBJ
2020: Deputy President of DBJ
2022: President and CEO of DBJ

Tsutomu Murakami

Corporate Governance

Deputy President

Joined the Ministry of FinanceVice-Minister of Finance
Deputy President of DBJ
Chairman of DBJ

Strategy

President and CEO

1979:
2013:
2015:
2018:

1988: Joined Japan Development Bank
2012: General Manager, Structured Finance Group
2015: General Manager, Secretariat Office2017:	Executive Officer,
Head of Human Resources Management Department
2019: Managing Executive Officer of DBJ
2021:	Member of the Board of Directors,
Managing Executive Officer of DBJ

Value Creation Story

ChairmanMember of the Board of Directors,
Managing Executive Officer

Outside Member of the Board of Directors

Kazuo Ueda
Professor and Dean of Faculty ofBusiness Studies at Kyoritsu Women’s University,
Director of Tokyo University’s Center
for Advanced Research in Finance2008: Outside Member of the Board of Directors at DBJ

Notes:• Standards and policies related to independence in the selection of outside members of the Board of Directors and outside Audit & Supervisory Board members are notapplicable.
• Directors Akio Mimura and Kazuo Ueda are outside members of the Board of Directors in accordance with Article 2, Paragraph 15 of the Companies Act.
Akio Mimura, Honorary Chairman of Nippon Steel Corporation, is an outside member of the Board of Directors of DBJ. DBJ has no special relationship with Mr. Mimura,and its business with Nippon Steel Corporation is conducted normally. Outside Audit & Supervisory Board member Naoko Saiki is also an outside director of Sojitz
Corporation. DBJ has no conflicts of interest with Sojitz Corporation, and its business is conducted normally with the Company. DBJ has no special-interest relationshipwith any other of its outside members of the Board of Directors or outside Audit & Supervisory Board members.
• DBJ has signed liability limitation agreements with its outside members of the Board of Directors and the Audit & Supervisory Board, based on Paragraph 1, Article 427, of
the Companies Act.

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65

Messages from Outside Members of the Board of Directors

Audit & Supervisory Board Members

Atsushi Kurashige

Audit & Supervisory Board Member

Shigeru Tamagoshi

Hitoshi Sato

1984: Joined The Sumitomo Trust and Banking Co., Ltd.
2015:	Managing Executive Officer of
Sumitomo Mitsui Trust Bank, Limited.
2021:	Director, Senior Managing Executive Officer of
Sumitomo Mitsui Trust Bank, Limited
2022: Audit & Supervisory Board Member of DBJ

Outside Audit & Supervisory Board Member

Masato Dogauchi

2020: Audit & Supervisory Board Member of DBJ

Outside Audit & Supervisory Board Member

Naoko Saiki

2020: Audit & Supervisory Board Member of DBJ

Outside Director, Sojitz Corporation

Note: Directors Hitoshi Sato, Masato Dogauchi, and Naoko Saiki are outside directors in accordance with Article 2, Paragraph 16 of the Companies Act.

Executive Officers (excluding those who are concurrently members of the Board of Directors)
Managing Executive Officer

Executive Officer

Hiroshi Shimizu

Takao Isozaki

Isao Nishio

In charge of Urban Development Department,
Real Estate Finance Department, Structured Finance
Department (Japan), Hokuriku Branch,
Kyushu Branch, Minami-Kyushu Branch

In charge of Corporate Finance Department,
Divisions 1 and 6

In charge of Financial Institution

Managing Executive Officer

Hirofumi MakiManaging Executive Officer (Head of Kansai Branch)

Masao Masuda

Toshiyasu Takazawa

In charge of Corporate Finance Department,
Division 2, Sustainable Solution Department

In charge of Kansai Branch,
Chugoku Branch, Shikoku BranchManaging Executive Officer

Managing Executive Officer

Seiji Tomosada
In charge of Corporate Finance Department, Division3, Hokkaido Branch, Tohoku Branch, Niigata Branch,
Tokai BranchManaging Executive Officer

Tomoya SatoIn charge of Corporate Finance Department, Division 5

Fumiyo Harada

Executive Officer
Head of Corporate Planning & Coordination
Department
Executive Officer

Shingo Kobayashi
Head of Human Resources Management Department

In charge of Economic & Industrial Research
Department, Regional Research & Planning
Department, Structured Finance Department (Global)

Executive Officer

Managing Executive Officer

In charge of Internal Audit

Michiyo Machida

Executive Officer

In charge of Corporate Finance Department, Division 4

Yoshiyuki Takada
Yuichiro Mori
Head of Business Planning & Coordination
Department, Chief Manager of Crisis Response
Operations Office

Leveraging Corporate Governance toHelp Solve Social Issues

Reinforcing Corporate Governance toAdvance Sustainability Management

I have served as an outside member of the Board of
Directors since DBJ became a joint stock company in 2008.
I am currently a member of the Advisory Board, an
independent body that facilitates corporate governanceby incorporating the opinions of outside experts into the
management of DBJ. In accordance with the amendmentof the DBJ Act in 2015, the Advisory Board is positioned
as an advisory body to the Board of Directors. The role of
the Advisory Board is not only to advise DBJ’s management
on balancing economic and social value but also todeliberate on the matter of ensuring suitable competitive
relations with private financial institutions. I believe that
the Advisory Board has fulfilled the responsibility of
performing checks, from a third-party perspective, on theproper execution of legally mandated Special Investment
Operations, Crisis Response Operations, collaboration
with private financial institutions, and sustainability
management by DBJ.
The COVID-19 pandemic has brought to the surface anumber of issues in Japan, such as the need for
digitalization, and for the strengthening of corporate
supply chains. Moreover, amid increasing uncertainties
on the international stage, issues have emerged related
to the transition to carbon neutrality while maintaining
international competitiveness, and ensuring economic,
energy, and food stability. I will continue to fulfill my
responsibilities on the governance front in facilitating
essential dialogue and cooperation with stakeholders
so that DBJ can help solve these social issues.

The international movement toward a carbon-free society
has gained momentum since the adoption of the Paris
Agreement. To attain a carbon-neutral and sustainable
society, private-sector capital must be deployed alongwith advances in innovation and support for
decarbonization. DBJ has provided solutions in tune withthe times and constantly evolving social issues, such as
by developing its sustainability financing services,
including sustainability certification programs, and by
supplying risk capital through collaborative efforts withprivate-sector companies and financial institutions. We
will closely monitor global trends toward the achievementof a sustainable society, and redouble our efforts tocoordinate with stakeholders and achieve a balance
between social and economic value.
DBJ must continue to carry out these efforts with themedium- to long-term perspective of facilitating socialand economic development and achieving a sustainable
society. Proper governance is therefore essential. The
DBJ Group’s Advisory and Special Investment
Operations Monitoring Boards support the attainment ofthese goals and underpin DBJ’s unique business model.
As a member of the Advisory Board—in addition to myduties as an outside member of the Board of Directors—
I work closely with outside experts to advise on overallmanagement. I will do my part in pursuing the sustainablesocial development and sustainability management goals
shared throughout DBJ.

Career

CareerApril 1963:	Joined Fuji Iron & Steel Co., Ltd.
April 2003:	Representative Director and President of
Nippon Steel Corporation
April 2008:	Representative Director and Chairman of
Nippon Steel Corporation
October 2008:	Outside Member of the Board of Directors at DBJ(current position)
October 2012:	Director, Member of the Board, and Senior Advisor of
Nippon Steel & Sumitomo Metal Corporation
November 2013:	Senior Advisor, Honorary Chairman of Nippon Steel &Sumitomo Metal Corporation, Chairman of the Tokyo
Chamber of Commerce and Industry (current position),
Chairman of the Japan Chamber of Commerce andIndustry (current position)
June 2018:	Honorary Chairman of Nippon Steel & Sumitomo Metal
Corporation (now Nippon Steel Corporation)
April 2019:	Honorary Chairman of Nippon Steel Corporation(current position)

July 1980:	Assistant professor at the University of British Columbia,
School of Economics
April 1982:	Assistant professor at Osaka University,
School of Economics
April 1989:	Assistant professor at Tokyo University,
School of Economics
March 1993:	Professor at Tokyo University, School of Economics
April 1998:	Member of the Bank of Japan’s Policy Board
April 2005:	Professor at Tokyo University, School of Economics
October 2008:	Outside Member of the Board of Directors at DBJ(current position)
April 2017:	Professor, Faculty of International Studies, Head of Officefor New Department Planning, Kyoritsu Women’s
University, Director of Tokyo University’s Center for
Advanced Research in Finance (current position)
April 2020:	Professor, Faculty of Business Studies at Kyoritsu
Women’s University (current position), Dean of Faculty ofBusiness Studies at Kyoritsu Women’s University(current position)

Corporate DataManaging Executive Officer

Outside Member of the Board of Directors

Corporate Governance

Professor, Waseda University, Law School
Senior Counsel, T&K Partners

Kazuo Ueda

Outside Member of the Board of Directors

Strategy

Outside Audit & Supervisory Board Member

1989: Joined Japan Development Bank
2014: Head of Corporate Finance Department, Division 2
2016: Head of Corporate Finance Department, Division 5
2018:	Executive Officer,
Head of Business Planning & Coordination Department
2020: Audit & Supervisory Board Member of DBJ

Akio Mimura

Value Creation Story

Audit & Supervisory Board Member

1986: Joined Japan Development Bank
2010: General Manager, Credit Analysis Department
2011: General Manager, Secretariat Office
2013:	General Manager, Head of Urban Development Department
2017: Audit & Supervisory Board Member of DBJ

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Integrated Report 2022

Compliance67Compliance

Compliance Practices

Basic StanceBusiness Conduct and ComplianceIn the provision of various financial services including i­nvestments and loans, the DBJ Group believes that complying with insider
trading regulations is essential to maintaining trust. For example, we have created rules for employees and ­executives to follow
when trading in securities. Moreover, DBJ has established systems for preventing insider trading, as d
­ emonstrated by ourformulation of strict procedures for ­confirming and executing transactions in our investment o­ perations. In research operations,
we manage and handle corporate information carefully.

Elimination of Anti-Social Forces 
The DBJ Group has a basic policy of not having any relationships with anti-social forces, and resolutely coping with them incooperation with the police and other external institutions. Our rules and training programs have thus been carefully crafted toprevent relationships with anti-social forces. DBJ thoroughly assesses and manages this risk for each project and takes
appropriate measures when necessary while communicating with special external institutions.

Strategy

The DBJ Group is a unique financial group which provides financing, investment, consulting and advisory services, asset
management, and various other financial services. While reinforcing collaboration within the Group, DBJ creates proactive
and advanced business and core strategies. As a financial institution, DBJ’s first duty is to address the legitimate and logicalexpectations of its customers. Even in its initiatives in Crisis Response Operations and Special Investment Operations, DBJ
adheres to customer-oriented business conduct. DBJ conducts operations in compliance with all laws and regulations throughappropriate use of the Three Lines of Defense model to mitigate conduct risk. To achieve our corporate philosophy, all employees
and executives engage in work while pursuing both economic and social value in accordance with our Code of Conduct (Action
Guidelines), the basis for decisions and behavior by Group employees and executives.

Measures to Prevent Insider Trading 

Value Creation Story

DBJ believes that compliance is both at the heart of our corporate management and that it complements our business model andstrategy, like two sides of the same coin. In addition, compliance risk must be properly managed in our organization’s overall
governance and control structure in implementing our corporate philosophy based upon societal demand and expectation. We
feel that compliance is achieved when each and every employee and executive actively engages in their work with complianceforemost on their minds.

The DBJ Group believes compliance with laws and regulations is essential for maintaining the customer’s trust and ensuring thesoundness and fitness of its business operations. We recognize compliance as one of our most important management priorities.
Employees and executives are keenly aware of DBJ’s public mission and social responsibilities, as well as initiatives to mitigate
conduct risk. We engage in our business fairly, in good faith, and in compliance with not only all laws, regulations, and rules but
also social norms, for supplying risk capital or pioneering initiatives.

Compliance Framework
Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Measures 

reporting compliance matters while centralizing such matterswithin their departments. Through compliance officers, relevant
departments in charge of compliance provide advice andguidance to each department when necessary, with the aim of
ensuring compliance. In order to quickly discover and resolve
any compliance-related issues, DBJ has set up an internalreporting channel to relevant departments and Audit &Supervisory Board members, which circumvents the normal
reporting channels in the organizational structure. DBJ has also
created an external reporting channel through a law office.
In light of revisions to the Whistleblower Protection Act, DBJ
is updating its protections for whistleblowers. DBJ aims to
improve the credibility of its whistleblowing system, and isencouraging Group companies to adopt whistleblowing
systems based on DBJ’s system.

Due to the public nature of DBJ, the DBJ Act stipulates that the executives and employees of DBJ must not receive impropercompensation, and internal rules define matters that warrant caution when executives and employees come into contact withclients and other parties. In addition to preventing bribery and corruption at DBJ, we take steps to prevent involvement in thebribery and corruption of third parties and other entities, including recipients of investments and loans.

Board of Directors

General Risk
Management
Committee

Executive Committee

Compliance officers at all departments
and Group subsidiaries
Staff
Regular reporting channel
Internal reporting (Compliance Hotline)

Initiatives to Prevent Bribery and Corruption 

Customer Protection Management
The DBJ Group has identified “the customer’s perspective” as a key element of its Code of Conduct (Action Guidelines). By taking
the customer’s perspective, we endeavor to improve customer protections and convenience. Furthermore, we have created basic
policies for customer protections from the standpoint of ensuring the soundness and fitness of our operations. Accordingly, we
have taken a management posture for ensuring customer protections. Employees and executives provide support to customers by
explaining and providing appropriate and adequate information to them.

Management of Conflicts of Interest When providing customers with financing, investment, consulting and advisory services, asset management, and other financial
services, the DBJ Group has systems in place for identifying and managing transactions in order to prevent conflicts of interest
and act fully in the interests of customers, based on the transaction type and degree of risk. When obtaining consent from
customers for a transaction, we provide them with accurate and appropriate information.

Management of Customer Information 
In addition to following legal requirements and rules about sharing customer information among Group companies, preventing
insider trading, and managing conflicts of interest, the DBJ Group has created management structures and systems for handlingcustomer information, with particular attention paid to minutiae in order to maintain the customer’s trust.

https://www.dbj.jp/en/privacy.html
DBJ has created and disclosed the Declaration on Personal Information Protection for protecting
such information. Please refer to the DBJ website for more details about this declaration.

Corporate Data

Relevant departmentsin charge of compliance

Audit &
Supervisory Board
Members

As it develops business worldwide, DBJ understands the importance of taking measures to prevent money laundering and thefinancing of terrorism. It has been reinforcing these measures based on guidance from the Financial Action Task Force (FATF) andthe supervisory authorities. Although DBJ does not engage in foreign currency transactions or accept deposits, DBJ implements
risk assessments as if it did, and takes steps based on the risks that would be involved. DBJ has systems in place to ensure thatproper procedures are taken, periodically conducts risk management operations, and provides thorough training in these for its
employees and executives. We also strive to continuously improve this structure by evaluating a variety of measures.

Corporate Governance

The DBJ Group has determined basic policies and rules for compliance, creates and distributes compliance manuals for
employees and executives to follow, and conducts training and explanatory sessions to spread awareness of compliance. Eachfiscal year, all DBJ Group companies design compliance programs and evaluate and implement concrete compliance action planstailored to their particular business characteristics.
DBJ has established relevant departments that report on the status of compliance with laws and regulations to the Executive
Committee and Board of Directors. Compliance officers have been assigned to each department to ensure compliance by
employees and executives at each department.
Compliance officers are in charge of internal management
Internal Reporting System
as internal managers and function as contact points for68

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Integrated Report 2022

Development Bank of Japan Inc.
Integrated Report 2022

Risk Management



Executive Committee

Committee on Investment and
Loan Decisions
New Operation Screening
Committee

DBJ’s borrower rating system measures creditworthiness by combining an evaluation point rating and a borrower category rating,with the results quantifying a potential client’s credit circumstances.
The evaluation point rating selects indicator and evaluation categories that are common across all industries, scoring the creditworthiness of the potential borrower quantitatively and qualitatively. On the other hand, the borrower category rating measures
specific items related to the borrower, looking at the borrower’s realistic financial condition, cash flows, and debt repayment
history, generating a comprehensive assessment of a borrower’s repayment capacity.

Advisory Panel on Investments
and Loans
Sustainability Committee
Investment Management
Committee

General Risk Management
Committee

Credit risk

Operational risk

Investment risk

System risk

Country risk

Compliance and legal risk

Market risk

Countermeasures for anti-social forces

Market credit risk

Countermeasures for laundering moneyand funding terrorist organizations

Liquidity risk

Customer protection management

Borrower Rating Classifications
Borrower
ratingBorrower category

Normal borrowers

1–8

Credit Risk
Credit risk refers to the risk of sustaining losses resulting from a decline in or loss of the value of assets due to deterioration in thefinancial condition of the borrower. DBJ provides corporate loans and non-recourse loans, making credit risk acquisition a sourceof profits. As such, it represents a significant risk category, and DBJ conducts credit management of individual projects as well as
Bank-wide portfolio management accordingly.

Normal claims
Borrowers in this category are experiencing weak or unstable business conditions, or are
having issues with their finances. These borrowers need to be managed with caution.

Substandard
borrowers

12

Either some or all of the debt of these borrowers requiring caution is under management.

Substandard claims

Borrowers indanger ofbankruptcy

13

Borrowers in this category are having financial difficulties but are not bankrupt.
Management improvement plans and the like are progressing poorly, and these borrowers
are highly likely to fall into bankruptcy.

Doubtful claims

When making an investment or loan, DBJ examines the entity’s project viability and the project’s profitability from a fair andimpartial standpoint. Based on the Banking Act and the Act on Emergency Measures for the Revitalization of Financial Functions(Act No. 132 of 1998), DBJ carries out independent asset assessments in an effort to properly grasp credit risk in a timely fashion.
The results of self-assessments are subject to an audit by an auditing corporation and are reported to management.
The sales and credit analysis departments hold separate roles in the screening and administering of credit for individual
projects, and each department keeps the operations of the other in check.
The Committee on Investment and Loan Decisions meets as needed to deliberate important issues concerning themanagement and operation of individual projects.
These mutual checking functions serve to ensure the appropriateness of the finance operation and management system.

Bankrupt
borrowers

15

Although not legally or formally in bankruptcy, these borrowers are experiencing severe
financial difficulties and are realistically falling into bankruptcy as their lack of potential for
restructuring has been confirmed.

Claims in bankruptcy,
reorganization claims,
These borrowers are in bankruptcy, legally and formally. Specifically, these borrowers are in and similar claims
bankruptcy or liquidation, under corporate reorganization, bankruptcy proceedings or civil
rehabilitation, or have had transactions suspended by a bill clearinghouse.

Asset Self-Assessment System 
Asset self-assessments are used to define asset classifications that will offset recoverability risk or the degree of risk of value loss
based on the borrower rating, the corresponding borrower category, and the collateral or guarantee status. Such assessments
help DBJ establish timely and appropriate amortization schedules and reserve levels.

Portfolio Management 
DBJ performs a statistical analysis of data based on borrower ratings and calculates the loan portfolio’s overall exposure to credit
risk. Credit risk exposure is classified as unexpected loss (UL), the maximum loss that could be incurred at a certain rate ofprobability minus the expected loss (EL), the average loss expected during a specific loan period.
Large borrowers are identified based on standardized loan balances defined by the borrower’s rating and monitored as
required in accordance with credit management policies.

Corporate Data

Credit Administration of Individual Loans 

Borrowers with favorable business conditions who have been confirmed to have noparticular problematic financial circumstances.

Corporate Governance

We measure the amount of each type of risk using uniform and logical methodologies to the greatest extent possible, whileconsidering the uniqueness of each risk category. As the sum total of this risk, comprehensive risk is managed within the context
of our risk guidelines. These risk guidelines are determined by the Executive Committee and reflect risk conditions in the existing
portfolio and latest business plans, within the framework for capital allocation based on the amount of our own capital.

Claims classified under the
Financial Revitalization Act

Borrowers requiring
9–11
caution

Effectively bankrupt
14borrowers

Comprehensive Risk Management

Definition

Strategy

ALM & Risk Management
Committee

Value Creation Story

Overview of Risk Management System
Board of Directors

Risk Management

Borrower Rating System 

Risk Management System
DBJ has a risk management system in place designed tohandle a variety of specific risks, with the aim of maintaining thesoundness and creditability of management as it pursues
business based on management plans. Specifically, risks are
identified, evaluated, monitored, and controlled in each risk
category and in comprehensive risk areas, and are managed
within the scope of our management capabilities from acomprehensive understanding of each risk.
The Board of Directors sets out basic policies forcomprehensive risk management, receives reports about risk
management conditions, and ensures the effectiveness of risk
management functions. The Executive Committee creates
related rules based on these basic policies and deliberates onmatters of importance that directly relate to management
policies. In line with these basic policies and rules, the ALM &Risk Management Committee discusses and makes decisions
on matters essential to the risk management system forfinancial risk, such as credit risk, while the General Risk
Management Committee deliberates on non-financial risk, suchas administrative risk. Both committees meet regularly, andwhenever necessary, conduct risk monitoring.

69

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Development Bank of Japan Inc.
Integrated Report 2022

Risk ManagementInvestment Risk

Market Risk
Type

Major risks

Returns

Corporate mezzanine
financing

Credit risk, etc.

Dividends, etc.

Corporate investment(including listed shares)

Business risk
Market risk

Capital gains

Risk of change
in asset value
Operating risk at
operating entities

Income gains

Real estate andinfrastructure, etc.

DBJ classifies market risk as risk pertaining to investment and loan activities. The main risks it manages are interest rate risk andforeign exchange risk. DBJ does not have any trading-related risk (specified transactions).

Interest Rate Risk Interest rate fluctuations can create mismatches on rates of interest on assets and liabilities or on interest periods, creating the riskof reduced profits or the risk of losses. Interest rate risk can reduce the economic value of DBJ’s assets or interest income.
Based on monitoring through multifaceted indices, such as value at risk (VaR) and interest rate sensitivity analyses (duration andbasis point value), as well as ALM policies established by the ALM & Risk Management Committee, DBJ conducts comprehensive
management of current assets and liabilities to optimize net interest expenses and economic value by adequately controllinginterest rate risk.

Foreign Exchange Risk 

Investment Policy Overview of Investment Management System
Executive Committee

Foreign exchange risk is the risk of loss due to volatility in exchange rates, and this risk affects entities holding a net excess ofassets or liabilities denominated in foreign currencies. Foreign exchange risk derives from financing in foreign currencies andissuing foreign currency bonds. However, DBJ uses foreign exchange swaps and other instruments to limit this risk.

Decision on investment policy

Market Credit Risk

Investment Management Committee
Deliberation on investment policy

Project information
Chief Investment
OfficeInvestment
recommendation

Monitoring
Key projects
Debate over direction

DBJ aims to reduce counterparty risk in derivatives transactions through margin transfers by means of a centralized exchange andmutual credit support annex. Financial institution transactions are managed within the limits of the creditworthiness of the counterparty. Transactions with operating companies and other customers are managed within the framework of comprehensive risk
management for fluctuation risks, and measurements of credit valuation adjustment (CVA) are based on accounting standards.

Strategy

The Executive Committee determines our investment policy
following deliberations each fiscal year by the Investment
Management Committee, based on our corporate philosophyof striking a balance between social value and economic value.
This policy takes into consideration the balance in risks andreturns in the overall portfolio, while also reflecting the externalbusiness environment, including changes in market conditions
and industrial structure, and a performance analysis of theexisting portfolio.

Risk Management

Value Creation Story

Investment risk refers to the risk of sustaining losses resulting
from a decline in or loss of the economic value of assets due toworsening financial conditions for entities receiving funds andto changing market environments. DBJ’s investments include
the provision of mezzanine and equity financing, particularly tounlisted entities, such as corporations, funds, infrastructure,and real estate. As a source of profits, investments represent
one of DBJ’s most significant risk categories, as with credit risk.
DBJ makes investment decisions and manages individual
investments as well as its Bank-wide portfolio accordingly.

71

Monitoring data, etc.

Loan and Investment
Management Division
Information gatheringand hub function

Chief Investment
Management Office

Credit Management of Individual Projects Investment decisions for individual projects are made after exit strategies are determined in case a downside scenario materializes,
and targets are set for returns based on the type of investment, which is also examined in order to manage credit risk.
In project management, DBJ periodically monitors every project and has established the Chief Investment Management Office
to enhance monitoring of key projects and improve the management of investment risks in the overall portfolio.

Portfolio Management 

Corporate Data

The bulk of assets in our investment portfolio consists of unlisted shares and mezzanine loans. We quantify our risk exposure tothese assets with a focus on risk characteristics in each asset category and differences in methods for recouping investments.
Specifically, DBJ assesses credit risk based on asset type with the aim of recovering the investment, mainly through businesscash flow. We also take into account market risk for asset types where investments are likely to be recovered when the asset issold to a third party or the market. In these ways, DBJ quantifies risks by applying methods to estimate credit risk and market risk.

Corporate Governance

Portfolio management
and individual projectmonitoring

Liquidity Risk
Liquidity risk is the risk of a mismatch occurring in the periods when funds are used and raised or of an unexpected outflow offunds, causing differences in the flow of funds (cash liquidity risk). Such situations make securing funds difficult and create
situations in which interest rates on borrowed funds are substantially higher than usual rates. At other times, because of market
complexities, entities in these circumstances may become unable to participate in market transactions, compelling them toconduct transactions under substantially less favorable terms than would otherwise be the case. The risk of losses for thesereasons is known as market liquidity risk.
As its main methods of acquiring funds, rather than carrying out short-term funding by issuing commercial paper, DBJ relies on
the stable procurement of long-term funds from the Japanese government’s Fiscal Investment and Loan Program and governmentguaranteed bonds while issuing bonds and taking out long-term loans.
To prepare for unforeseen cash flow crunches caused by shocks to financial markets, DBJ manages funds to ensure sufficient
cash on hand to cover planned capital outflows under envisioned stress conditions. DBJ has formulated countermeasures basedon contingency plans in the event they become necessary depending on the mode classification, and it has created different
categories for fund operation modes based on the degree of constriction in cash flows.

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Development Bank of Japan Inc.
Integrated Report 2022

Risk Management

Risk Management

Operational Risk

Administrative Risk Management 
Administrative risk refers to the risk of sustaining losses resulting from employees neglecting to perform their duties correctly orfrom accidents, fraud, and so on. To reduce or prevent administrative risk, DBJ prepares manuals, performs checks on
administrative procedures, provides education and training, and uses systems to reduce the burden of administrative duties.

Business Continuity Initiatives
DBJ has prepared a business continuity plan (BCP) to protect the interests of its stakeholders, including its clients, its
shareholders, and its executives and employees, as well as to fulfill its social mission. The BCP aims to ensure the continuity andrapid recovery of core operations in the event of emergencies, such as natural disasters (in particular, large-scale earthquakes),
influenza and other pandemics, system failures, and power outages.
The BCP describes in an easy-to-understand format the role of the Disaster Response Committee, work priorities, and specificactions and procedures to be taken in the event of a disaster. When drawing up policies for business continuity and restoration,
the Company envisions specific incidents, such as an earthquake underneath the Tokyo metropolis or a novel virus outbreak, andmethodically decides how to respond to anticipated damage in each disaster scenario.

Value Creation Story

DBJ defines operational risk as the risk of loss arising from internal processes, people, or systems that are inappropriate or nonfunctioning, or from external events. DBJ works to establish a risk management system to minimize risk and prevent potential risk
from materializing. The General Risk Management Committee has been established to deliberate topics concerning operationalrisk management.
Within operational risk management, DBJ conducts administrative risk management and system risk management as
described below.

73

Measures to Ensure Business Continuity
We have prepared a variety of measures to ensure business continuity.

System Risk Management 

Multilayered Communication Procedures 
We have introduced a safety confirmation system to quickly determine the whereabouts and status of executives and employees
even at night and on holidays. In addition, we have distributed satellite telephones to key locations and personnel to ensure multilayered communication procedures.

Chain of Command and Delegation of Authority 
To assure that decision-making concerning the continuity of core operations is prompt and certain in the event that it becomes
necessary to execute the plans of the Disaster Response Committee, we have put in place a chain of command and an alternative
hierarchy by which authority can be delegated.

Clarification of Initial Response and Procedures for Continuing or Recovering Core Operations 
For individual business units, we have established in advance the procedures for the initial response and the continuation or
recovery of core operations so that relevant divisions can respond quickly and with certainty on core operations even when in astate of confusion.

Initiatives to Maintain or Improve BCP Viability
DBJ conducts various types of instruction and training of executives and employees to maintain or improve the viability of its BCP.
Furthermore, employing a plan–do–check–act cycle, we revise the BCP to reflect training results and recent information, and the
Executive Committee reviews it regularly and amends it as necessary.
Corporate Data

In addition to managing comprehensive risks based on risk exposure, DBJ performs stress tests on its own capital adequacy inorder to ensure uninterrupted financial functions, including Crisis Response Operations, while maintaining the soundness ofmanagement under stressful conditions. These stress tests are also used in evaluating the degree of impact on our own capitalfrom the creation of and changes to medium-term management plans and business plans, as well as in examining possible
responses to various management issues.
Based on the latest forecasts for economic conditions and in light of the international situation, these stress tests take into
account DBJ’s financial position in various scenarios for challenging conditions, such as a major economic recession or strong
market stressors. We evaluate whether financial functions can be smoothly executed and adequate financial health maintained
under stressful conditions, by factoring in various scenarios for how risk exposure and risk-weighted assets increase as a result oferosion of our own capital, and of changes in our portfolio of loans and investments.
We also verify the adequacy of our cash liquidity.

We have ensured advanced security levels at the main center and created a backup center to operate in the event that the main
center ceases to operate.

Corporate GovernanceStress Tests

Enhanced System Robustness Strategy

System risk refers to the risk of loss due to a computer system breakdown or malfunction, system defects, or improper computeruse. DBJ has implemented the following internal processes to optimize system risk management and properly manage risk withregard to system risk. The System Risk Management Division is responsible for managing DBJ’s system risk centrally, based on its
system risk management regulations. By determining security standards from a variety of viewpoints—from information system
planning and development to operation and use—the department extends the risk management system Bank-wide and addresses
appropriate system risk management operations.
Over the past few years, cyberattacks have rapidly become more advanced and cunning, and the DBJ Group is aware of theincreasing risk of being damaged by a cyberattack. Given these circumstances, the Group has set up the Cyber Security Officeand the DBJ Computer Security Incident Response Team (DBJ-CSIRT) as a team dedicated to responding to cybersecurity
incidents across related divisions, centered on the Cyber Security Office and the Corporate Planning & Coordination Department.
DBJ-CSIRT is in charge of responding to cybersecurity incidents within the DBJ Group as well as maintaining and updating thenecessary response systems.

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Development Bank of Japan Inc.
Integrated Report 2022

Development Bank of Japan Inc.
Integrated Report 2022

Financial and Non-Financial Highlights

Financial Highlights

Financial and Non-Financial Highlights

Non-Financial Highlights
Common Equity Tier 1 Capital Ratio (Consolidated)

Balance of Investments and Loans inRenewable Energy

Increase in Dialogues with Customers via the
Sustainability Certification Program(Billions of yen)(%)(Billions of yen)(No. of engagements)

18,00020

300

12,0001,686.7
1,129.3

13,467.7

13,584.6

1,740.3

16.81
1,454.4

15,284.1

14,878.6

16.65

17.26

16.65

100

16.97

276.8

280.8

241.9

15

12,981.6

82

75

74

72

200

186.9
10

100

2018

Loan balance

2019

2020

2021 (Fiscal year)

0

25

2017

2018

2019

2020

2021 (Fiscal year)

0

2017

2018

2019

2020

2021 (Fiscal year)

0

2017

2018

2019

2020

2021 (Fiscal year)

Investment balance

The balance of investments and loans (non-consolidated) stoodat ¥16.6 trillion as of the end of fiscal 2021. The loan balancewas ¥14.8 trillion as of the end of the fiscal year under review.
The investment balance expanded to ¥1.7 trillion as of the endof fiscal 2021, reflecting DBJ’s focus on investment operations.

The common equity Tier 1 capital ratio (consolidated) was
16.97% as of the end of fiscal 2022. This ratio may decline,
for example, when DBJ supplies risk capital for strengthening
investment operations, but DBJ continues to work on keeping
this ratio at a sound level.

Under the DBJ Sustainability Evaluation Certification Program(see page 20), at the request of customers, we provide feedback from a third-party perspective on the results of customers’
evaluations and help them understand the issues they should
address and enhance their management capabilities. Since theoutset of the COVID-19 pandemic, it became impractical to holdin-person award ceremonies for executives and employees.
Through the use of online meeting systems, however, we continued with feedback initiatives. Through dialogue, we will continue to support our customers’ efforts to advance sustainability
management.

Gross Ordinary Income (Consolidated)

Human Resource Development(No. of In-House Training Sessions)

Collaboration and Cooperation with Regional Financial Institutions(No. of Collaborative Funds with Regional Financial Institutions)(Billions of yen)(No. of sessions)(No. of funds)

60

50

250

54

16.6
106.0

200

23.6
150

81.5

19.3
68.2

48
40

25.3

51

42

40

44

46

36

43
30

47.0

100

30

Corporate Data

65.8

25.2

53

20

84.8

80.9

91.7

95.3

20

76.6

50

10

0

2012
Loans

2013
Investment

2014

2015

2016

2017

2018

2019

2020

2021 (Fiscal year)

0

2017

2018

2019

2020

2021 (Fiscal year)

0

2017

2018

2019

2020

2021 (Fiscal year)

Commission and fee income

In fiscal 2021, in loan operations, loan profits increased alongside growth in the average loan balance compared with fiscal 2020.
In investment operations, profits expanded due to such factors as dividend income from investees. Fee and commission income
decreased on a decline in fee income. Accordingly, gross ordinary income amounted to ¥218 billion, up from that of the previous
fiscal year.

Corporate GovernanceThe balance of investments and loans in renewable energy
stood at ¥280.8 billion as of the end of fiscal 2021. With
renewable energy drawing more attention as the world moves
away from carbon-based energy sources, the DBJ Group will
provide financial support to ventures in solar power, onshore
and offshore wind power, biomass, and hydropower based on
the advantages of each type of energy source, with a view
toward achieving the Japanese government’s goal of achievingcarbon neutrality by 2050.

Strategy

2017

62

124.2

5

0

59

50

6,000

Value Creation Story

Balance of Investments and Loans(Non-Consolidated)

952.1

75

The DBJ Group provides abundant opportunities for training
through combinations of rank-based and business-related
training programs. In fiscal 2021, DBJ reassessed its training
programs for women and for management positions. Whileonline training remained the main format, some in-person
training was resumed while taking measures against COVID-19,
in a bid to maximize the effectiveness of training through optimal
formats. DBJ will continue to train personnel, proactively
encouraging employees to enhance their skills through training
seminars and improving the content of training based on DBJ’s
management strategy.

As of the end of fiscal 2021, the DBJ Group had created 46
collaborative funds with regional financial institutions. The DBJ
Group and regional financial institutions, each with a local
customer base, supply risk capital to local companies. We draw
on the respective strengths of each financial institution with theaim of spurring initiatives to address regional issues.

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Development Bank of Japan Inc.
Integrated Report 2022

Development Bank of Japan Inc.
Integrated Report 2022

Consolidated Financial Summary

77

Consolidated Financial Summary(Billions of yen)

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

(April 1, 2014 toMarch 31, 2015)(April 1, 2015 toMarch 31, 2016

(April 1, 2016 to
March 31, 2017)(April 1, 2017 toMarch 31, 2018)(April 1, 2018 toMarch 31, 2019)(April 1, 2019 toMarch 31, 2020)(April 1, 2020 toMarch 31, 2021)(April 1, 2021 toMarch 31, 2022)

Total income

345.1

318.7

340.0

361.6

339.0

358.6

285.4

291.7

301.2

289.1

269.4

310.3

Income before income taxes

95.0

99.2

115.6

165.7

153.0

185.1

122.5

127.1

128.1

78.9

73.0

86.1

Extraordinary profit / loss

9.3

10.9

0.6

0.2

0.6

1.5

(0.0)

2.2

(1.3)

4.0

0.7

2.3

104.3

110.2

116.2

166.0

153.6

186.7

122.4

129.4

126.7

83.0

73.8

88.5

(1.3)

(31.9)(44.5)(40.8)(58.9)(57.6)(34.6)(35.0)(33.5)(31.5)(26.9)(29.4)Net income attributable to owners of the parent

101.5

77.3

71.3

124.3

92.7

128.9

87.6

91.9

91.9

50.4

45.2

57.6

Total dividend amount

50.0

37.3

35.2

30.8

22.5

29.2

19.7

22.1

21.0

9.9

8.1

15.6

Total assets

14,845.2

15,579.8

16,248.7

16,310.7

16,360.6

15,907.1

16,570.4

16,952.2

17,079.5

17,693.6

21,221.8

21,508.5

Loans

13,031.4

13,645.4

13,918.2

13,838.4

13,261.3

12,952.5

13,039.5

12,725.2

12,923.9

12,415.9

14,757.1

14,346.1

Securities

1,165.5

1,176.6

1,357.0

1,637.5

1,887.9

1,803.0

1,750.3

1,866.4

1,961.0

2,374.2

2,535.8

3,034.4

Total liabilities

12,435.2

13,118.8

13,710.1

13,682.9

13,613.3

13,022.9

13,584.2

13,842.1

13,783.2

14,259.6

17,518.4

17,676.5

Borrowed money

8,576.4

9,170.5

9,448.3

9,182.6

8,598.2

7,892.1

8,472.3

8,574.1

7,987.8

8,070.9

10,664.5

10,573.6

Debentures and corporate bonds

3,629.3

3,671.8

3,924.5

4,237.4

4,569.3

4,727.9

4,711.8

4,932.9

5,296.9

5,696.8

6,223.4

6,392.3

Total equity

2,409.9

2,461.0

2,538.5

2,627.7

2,747.2

2,884.2

2,986.2

3,110.1

3,296.3

3,434.0

3,703.4

3,832.0

Common stock

1,181.1

1,187.7

1,206.9

1,206.9

1,206.9

1,000.4

1,000.4

1,000.4

1,000.4

1,000.4

1,000.4

1,000.4

Capital adequacy ratio (Basel II, BIS standard)

20.50%

18.56%

—

—

—

—

—

—

—

—

—

—

—

—

14.93%

15.30%

16.22%

17.54%

17.22%

16.81%

16.65%

17.26%

16.65%

16.97%

Ratio of loan balance in risk-managed assets

1.28%

1.47%

1.23%

0.99%

0.77%

0.64%

0.54%

0.47%

0.40%

0.46%

0.76%

0.73%

Return on assets (ROA)

0.67%

0.51%

0.45%

0.76%

0.57%

0.80%

0.54%

0.55%

0.54%

0.29%

0.23%

0.27%

Return on equity (ROE)

4.31%

3.18%

2.86%

4.83%

3.47%

4.60%

2.99%

3.03%

2.88%

1.51%

1.27%

1.54%

Number of employees

1,203

1,270

1,315

1,391

1,407

1,435

1,546

1,631

1,650

1,703

1,781

1,809

2,116.6

2,927.0

2,652.4

2,943.3

2,544.2

3,027.7

4,012.6

3,153.4

3,790.8

3,951.8

5,786.7

3,222.6

2,034.4

2,849.0

2,524.5

2,805.1

2,262.7

2,861.3

3,805.8

2,973.6

3,490.4

3,401.5

5,484.2

2,994.6

Investments

82.2

78.0

127.8

138.2

281.4

166.3

206.7

179.7

300.4

555.0

302.5

227.9

Funds raised (flow)

2,116.6

2,927.0

2,652.4

2,943.3

2,544.2

3,027.7

4,012.6

3,153.4

3,790.8

3,951.8

5,786.7

3,222.6

1,212.8

691.7

502.2

1,307.5

1,129.9

1,639.7

1,526.1

1,005.0

2,051.4

1,546.1

1,191.4

1,078.0

2020

2021–

Consolidated

Income before income taxes and minority interests
Total income taxes

Common equity Tier 1 capital ratio(Basel III, BIS standard)

Investment and fund–raising flow (non–consolidated)
Loans and investments (flow)
Loans

Of which, recovered, etc.

2008–20102011–20132014–20162017–2019

First Medium-Term
Management Plan:
CHALLENGE 2010

Second Medium-Term Management Plan:
Endeavor 2013

Third Medium-Term Management Plan:
Supporting Japan’s Sustained Growth asa Global Innovator

Fourth Medium-Term Management Plan:
Initiate Change, Create the Future

Crisis Response Fifth Medium-Term
Operations during Management Plan
the COVID-19
Connect andpandemic
Value Creation–Innovation for Sustainability–

Corporate Data

Fiscal 2013
(April 1, 2013 toMarch 31, 2014)

Corporate GovernanceFiscal 2012
(April 1, 2012 toMarch 31, 2013)

Strategy

Fiscal 2011
(April 1, 2011 toMarch 31, 2012)

Value Creation Story

Fiscal 2010
(April 1, 2010 toMarch 31, 2011)

78

Development Bank of Japan Inc.
Integrated Report 2022

Timeline

Development Bank of Japan Inc.
Integrated Report 2022

79

Shareholder Information

(As of March 31, 2022)

Japan Development Bank, the Hokkaido-Tohoku Development Finance Public Corporation,and the Development Bank of Japan
Month

Event

1951

April

Japan Development Bank (JDB) establishedJDB branches opened in Osaka (now the Kansai Branch), Sapporo (now the Hokkaido Branch),
Nagoya (now the Tokai Branch), and Fukuoka (now the Kyushu Branch)

1952
1956

June

Hokkaido Development Finance Public Corporation established

1957

April

Hokkaido Development Finance Public Corporation, reorganized as the Hokkaido-Tohoku Development
Finance Public Corporation (HTDFP) branches, opened in Sapporo (now the Hokkaido Branch) andSendai (now the Tohoku Branch)
JDB branch opened in Takamatsu (now the Shikoku Branch)

1960

JDB branches opened in Hiroshima (now the Chugoku Branch) and Kanazawa (now the Hokuriku Branch)

1961
1962

April

JDB representative office opened in New YorkJDB representative offices opened in Kagoshima (renamed Minami-Kyushu Branch in October 1999) and Matsue

1963
July

1972

January

1985

June

1987

September

JDB representative office opened in London
HTDFP representative office opened in Niigata (renamed Niigata Branch in July 1989)
The Japan Development Bank Law revised1)	Investment function (pertaining to business in such areas as research and development,
urban development, and energy use stipulated by government ordinance) added
2) R&D fund investment function added
Low interest rate loan system funded partially by sale of NTT shares created by JDB and HTDFP
JDB representative offices opened in Oita, Matsuyama, Okayama, and Toyama
HTDFP representative offices opened in Hakodate and Aomori

1989

JDB loans to assist disaster recovery commenced

1995

February

1997

SeptemberBill entitled “Pertaining to Consolidation and Rationalization of Special-Purpose Companies, etc.,” approvedby the Cabinet (decision dissolving JDB and HTDFP and consolidating them as a new bank approved)

1998

December

JDB and HTDFP loans in response to changes in the financial environment commenced(March 31, 2001, sunset clause introduced)

1999

June

The Development Bank of Japan Law (Law No. 73 of 1999) approved
All rights and responsibilities of JDB and HTDFP and all financing operations of Japan Regional Development Corporation andJapan Environment Corporation transferred to the Development Bank of Japan
DBJ representative offices opened in Kushiro and Singapore
The Development Bank of Japan Law revised (additional spot inspections by the Financial Services Agency introduced)

2002

May

2005

December

2006

May

The Act on Promotion of Administrative Reform for Realization of Small and Efficient Government(Act No. 47 of 2006) approved

June

Policy-Based Financing Reform Plan decided upon by DBJ’s Head Office for the Implementation of Policy Finance Reform

2007

June

The Development Bank of Japan Inc. Act (Act No. 85 of 2007) approved

Important Policy of Administrative Reform approved by the Cabinet

Development Bank of Japan Inc.
Year

Month

2008

October

Event

Development Bank of Japan Inc. (DBJ) established (Capital: ¥1 trillion)

Percentage of total equity (%)

Finance Minister

1-1, Kasumigaseki 3-chome, Chiyoda-ku, Tokyo

43,632

100.0

Total

—

43,632100.0

Summary of Changes to the DBJ Act after Conversion toa Joint-Stock Company
On October 1, 2008, DBJ transitioned from a special public
corporation to a joint-stock company. In preparation for full-scale
privatization following the disposal of all Japanese governmentowned shares, DBJ has continued working to enhance its
corporate value through integrated investment and loan
services. These activities include providing long-term loans;equity, mezzanine financing, and other types of risk capital; andM&A advisory services.
On the other hand, shortly after DBJ’s conversion to a jointstock company, the global financial crisis and the Great East
Japan Earthquake occurred. The Japanese government
called on DBJ to steadily mount large-scale Crisis Response
Operations. Due to these crises, the Development Bank ofJapan Inc. Act (Act No. 85 of 2007) was amended twice, with
DBJ accepting an additional increase in Japanese government
capital. Also, by the end of fiscal 2014, the Japanese
government was committed to reviewing DBJ’s organization,
including its shareholdings, as stipulated by the revision.
Based on the deliberations by the Japanese government’s
Study Panel Concerning the Promotion of Expanding GrowthFunding, the Act for Partial Amendment of the Development
Bank of Japan Inc. Act (Act No. 23 of 2015), which was enacted
on May 20, 2015, maintains the direction toward full-scale
privatization. At the same time, in order to fully ensure theprovision of funding in response to large-scale disasters andeconomic crises, the amended act makes DBJ’s Crisis
Response Operations obligatory for an indefinite period. Fromthe perspective of promoting the provision of growth capital torevitalize regional economies and increase the competitivenessof enterprises, the amended act calls for DBJ to accept a certain

amount of capital from the Japanese government (industrial
investment). This investment is to be used for a new scheme,
Special Investment Operations, to strengthen and develop theFund for Japanese Industrial Competitiveness. In addition, withregard to the application of DBJ’s investment and loan functions
toward crisis response and the provision of growth capital,
measures were introduced obliging the Japanese government tohold at least a certain percentage of DBJ’s shares.
As part of this structural revision, deliberations by theJapanese government’s Study Panel Concerning the Promotionof Expanding Growth Funding covered such topics as DBJ’s
proper implementation of Crisis Response Operations, theimportance of initiatives for providing growth capital (equity andmezzanine financing) to address shortages in Japanese financial
and capital markets, and an evaluation of DBJ’s initiatives
following its conversion to a joint-stock company.
In light of discussions in 2019 by the Japanese government’s
Study Panel Concerning the Future Vision of Special Investment
Operations at Development Bank of Japan Inc. under the Act for
Partial Amendment of the Development Bank of Japan Inc. Act(Act No. 29 of 2020), which was enacted on May 22, 2020,
Special Investment Operations shall take the following required
measures:(1) extend the investment decision term and government
financing term from March 31, 2021, until March 31, 2026, and xtend the deadline for ending operations from March 31,(2) e2026, until March 31, 2031.

Corporate GovernanceOctoberNumber of shares held (thousands ofshares)Strategy

1964

Address

Value Creation Story

Year

Name

Note: For the full text of the DBJ Act, please refer to the Data section(see pages 82–98).

Crisis Response Operations begun by DBJ as a designated financial institution
2009

June

Act for Partial Amendment of the Development Bank of Japan Inc. Act (Act No. 67 of 2009) approved

September

Capital increased to ¥1,103,232 million

November

DBJ Europe Limited launched

2010

March

2011

May

2012

DBJ Singapore Limited launched

Capital increased to ¥1,181,194 million
The Development Bank of Japan Inc. Act partially amended based on establishment of the Act for Extraordinary Expenditure
and Assistance to Cope with the Great East Japan Earthquake (Act No. 40 of 2011)

December

Capital increased to ¥1,187,364 million

March

Capital increased to ¥1,187,788 million

June

Capital increased to ¥1,198,316 million

December

Capital increased to ¥1,206,953 million

Highlights of 2015 Revisions to the DBJ Act
1 Measures maintaining direction toward full-scale privatization

BeforerevisionFull-scale privatization and disposal of all Japanese
government-held shares, targeting around five toseven years from April 1, 2015•	No changes in the main provisions, including Article 1, which stipulates DBJ’s objectives

After•	Disposal of shares as soon as practicable (considering its effect on achieving DBJ’s objectives asrevision well as on the market situation)

2 Measures ensuring appropriate implementation of Crisis Response Operations

Beforerevision•	Conducting Crisis Response Operations as adesignated financial institution•	Enabling Japanese government recapitalization incrisis response by March 31, 2015

•	Assuming responsibility for Crisis Response Operations for an indefinite period (at the same timereflecting this obligation in the Articles of Incorporation)

After•	Extending for an indefinite period the scope of the Japanese government’s recapitalization securingrevision DBJ’s financial structure, with the Japanese government having such obligations as holding morethan one-third of DBJ’s shares

3 Measures establishing new Special Investment Operations scheme to temporarily provide growth capital in a concentrated manner

2014

June

DBJ Investment Consulting (Beijing) Co., Ltd. (formerly Japan Asia Investment Consulting (Beijing) Co., Ltd.) converted to wholly
owned subsidiary

2015

May

Act for Partial Amendment of the Development Bank of Japan Inc. Act (Act No. 23 of 2015) approved
Special Investment Operations started
Advisory Board positioned as an advisory body to the Board of Directors
Special Investment Operations Monitoring Board established

Beforerevision

AugustCapital reduced by ¥206,529 million, and crisis response reserve increased by the same amount

4 Provisions referencing consideration for private financial institutions through ongoing Japanese government involvement

2018

October

DBJ Americas Inc. launched

2020

May

Act for Partial Amendment of the Development Bank of Japan Inc. Act (Act No. 29 of 2020) approved

Beforerevision

Provision of risk capital through the Fund for JapaneseIndustrial CompetitivenessAs per the Third Medium-Term Management Plan,sustainment of close communications, maintaining
a focus on operations in collaboration with otherfinancial institutions•	Reinforcement of the Fund for Japanese Industrial Competitiveness (a portion of the financial
resources for which are provided through measures for industrial investment); implementation ofSpecial Investment Operations as a measure for a limited period of time, through fiscal 2025 (at theAftersame time reflecting this obligation in the Articles of Incorporation, complementing and encouraging
revision private-sector enterprises, etc.)•	Obligation that the Japanese government shall hold one-half or more of shares until the conclusionof Special Investment Operations•	The Corporation shall, for an indefinite period, pay special attention in conducting its business sothat it will not affect its appropriate competitive relationships with other business entities

After•	The Japanese government shall hear the opinions of representatives of ordinary financial institutions
revision and other relevant persons concerning Japanese government revisions on an as-needed basis
regarding Crisis Response Operations and Special Investment Operations

Corporate Data

December80

Development Bank of Japan Inc.
Integrated Report 2022

Development Bank of Japan Inc.
Integrated Report 2022

Organizational Structure (As of June 1, 2022)

General Meeting of
Shareholders

Chief
Industry
Strategy
OfficeAudit & Supervisory
Board Office

Corporate Information

Business Planning & Coordination Department

Innovation Promotion OfficeFinancial Institutions Department

Global Business Planning OfficeUrban Development Department

Crisis Response Operating Office

Corporate Finance Department, Division 1

Transition Business Promotion Office

Corporate Finance Department, Division 2

Aerospace Office

Corporate Finance Department, Division 3

Global Logistics Office

Energy Strategy Office

Corporate Finance Department, Division 6

Healthcare Industry Office

Hokkaido Branch
Tohoku Branch
Board of Directors

Development Bank of Japan Inc.

Established

October 1, 2008

Head Office

Corporate Finance Department, Division 4
Corporate Finance Department, Division 5

Name

Otemachi Financial City South Tower, 9-6, Otemachi 1-chome, Chiyoda-ku, Tokyo 100-8178, Japan
Tel: +81-3-3270-3211

Capital¥1,000,424 million (All capital is funded by the Government of Japan.)Number of employees

1,809 (non-consolidated 1,257)

Value Creation Story

Audit & Supervisory
Board Members /Audit & Supervisory
Board

81

(As of March 31, 2022)

Tohoku Recovery & Growth Support OfficeNiigata Branch

Executive Committee

Hokuriku Branch

Kansai Branch

Advisory Board

The DBJ Group provides diverse services that satisfy the needs of its customers.

Chugoku Branch
Shikoku BranchSpecial Investment
Operations Monitoring
Board

Kyushu BranchOverseas Bases
Kumamoto Recovery Office
DBJ Singapore Limited

Minami-Kyushu Branch
Strategic Finance Department
Chief
Investment
OfficeGrowth & Cross Border Investment Department

Real Estate Finance Department
Environmental & Social Assessment Office

DBJ Singapore Limited is a Singapore-based subsidiary. It mainly provides support for investments and loans as well asadvisory services in the Asia-Pacific region, and also collects and disseminates information locally.

DBJ Europe Limited

DBJ Europe Limited is a London-based subsidiary. It mainly provides support for investment and loan services in Europe, andalso collects and disseminates information locally.

DBJ Investment Consulting(Beijing) Co., Ltd.

DBJ Investment Consulting (Beijing) Co., Ltd. is based in Beijing and Shanghai. It mainly offers support for investment and loan
services in China, and also collects and disseminates information locally.

DBJ Americas Inc.

DBJ Americas Inc. is a local subsidiary based in New York, U.S.A. It mainly provides support for investment and loan services
in the Americas, and also collects and disseminates information locally.

Syndication & Credit Trading Department

Investments / Securities / Asset Management

Business Development Department
Sustainable Solution Department

Representative Offices: Hakodate,
Kushiro, Aomori, Toyama, Matsue,
Okayama, Matsuyama, Oita

The Chief Investment Management
Office consists of the Corporate
Planning & Coordination Department,
the Business Planning & Coordination
Department, the Credit Analysis
Department, the Risk Management
Department, and the Accounting
Department.
Internal Audit
Committee

Chief
Investment
Management
OfficeEconomic & Industrial Research Department

Economic Research Office

DBJ Capital Co., Ltd. is the venture capital arm of the DBJ Group. It mainly makes
early-stage equity investments in venture firms, and supports their growth throughhands-on management.

Regional Research & Planning Department

Industrial Research &Customer Solution Planning Office

DBJ Securities Co., Ltd.

DBJ Securities Co., Ltd. is a securities subsidiary that assists the DBJ Group with investment
and loan services. It supports optimal capital procurement, centered on alternative productfields, provides asset management opportunities, and flexibly fulfills diverse needs.

Research Institute of Capital Formation

Corporate Management &Accounting Research Office

DBJ Asset Management
Co., Ltd.

DBJ Asset Management Co., Ltd. Is an asset management company focused on realestate, private equity, and infrastructure investments. It provides quality investment
opportunities to investors with the comprehensive financial backing of the DBJ Group.

Secretariat Office
Human Resources Management Department

Public Relations Office

Corporate Planning & Coordination Department

Sustainability Management Office

Risk Management Department

Digital Strategy OfficeInformation Resources Department

Cyber Security Office

Research / Consulting
Japan Economic ResearchInstitute Inc.

Japan Economic Research Institute Inc. is a comprehensive think tank that primarily
conducts surveys and consulting. It meets customer needs from a comprehensive
viewpoint, leveraging synergies in its three survey fields: public, solutions, and international.

Value Management Institute,
Inc.

Value Management Institute, Inc. is a comprehensive think tank with strengths derived fromits insight into advanced technologies and analysis using proprietary economic models. It
provides tailor-made solutions to a broad range of government policy issues.

General Affairs Department
Accounting Department
Credit Analysis Department

Settlement & Accounting Operation Office

Real Estate Management / IT Services / Shared Services
DBJ Real Estate Co., Ltd.

Legal Affairs & Compliance Department
Treasury Department

Consist, Inc.

Internal Audit Department
DBJ Business Support
Co., Ltd.

DBJ Real Estate Co., Ltd. Handles administrative functions for the DBJ Group for officebuilding leasing, rental conference rooms, and business libraries.
Consist, Inc. provides one-stop consulting services for developing, maintaining, andoperating IT, using technology to help solve social issues.
DBJ Business Support Co., Ltd. is a shared services company of the DBJ Group.
It supports DBJ Group companies business by consolidating their administrative operations
and also streamlining processes with its operational expertise.

Corporate Data

Overseas Subsidiaries:
DBJ Singapore Limited
DBJ Europe Limited
DBJ Investment Consulting(Beijing) Co., Ltd.
DBJ Americas Inc.

Chief
Research
OfficeDBJ Capital Co., Ltd.

Corporate GovernanceRegional Investment Department

Structured Finance Department

StrategyGroup Companies

Tokai Branch