Growth Strategy for Value Creation

Message from the CBO

Director and Senior Executive Officer (Representative Director)
Group Chief Business Officer (CBO)General Manager in charge of Business Promotion

To create a local community better suited
to bringing each person’s hope to life

MissionIncrease the number of customers
able to be interviewed

200 customers

Expand transactions with cross-use

1

Exploring needs deeply
by the interview

2

Increase customer resolution
by using digital tools

3

One-to-one
marketing4

A wide range of proposals that
go beyond asset management

Getting customers to “use Chibagin” through digital
Further enhance of app functions

Non-digital
customers

Customers in charge (700)43

The Chiba Bank Integrated Report 2024

Action (2)Customers who cannot meetwith us activate digitally

125 or more

Awareness-raising activities at workplace seminars, etc.

About 900 customers

Expandborrowers

Borrowers
About 0.05 million customers

Client with active deposits(non-lending)About 0.097 million customers
Corporate portal
contract client(64% of borrowers)

App set when opening an account and concluding a housing loan contract
Approach from headquarters

Digital segment

Corporate portal
non-contracted client(36% of borrowers)

Bank possesses rock-solid business foundations
that can be attributed to the relationships of trustthat we have built up with our customers overmany years.
Since I first joined the Bank, I have always strived
to respond swiftly and carefully to customers seeking
consultations. That remains unchanged even now in
my position as Group CBO. I believe that, as we
accumulate more responses that exceed customers’
expectations, customers will choose Chiba Bank
over many other banks.
A strength of our sales representatives is theirability to place themselves in the shoes ofcustomers seeking consultations and respondswiftly and empathetically to them. As well as
leveraging that strength to further deepen our
relationships with our existing customers, we willuse it develop new customers and take them with
us into the future, in our aim to be a banking groupthat continues to grow alongside the region.
The Chiba Bank Integrated Report 2024

Financial and Corporate Data

Improve customer satisfaction

Activate transactions with customers having few contacts (broaden their horizons)

Digitalcustomers

Expand corecustomers Advisory Specified corporate

Activities for consulting customers (contactable and product use)

Transaction category

Action (1)Customers
who can beinterviewed

How to manage
customers in charge

Process of expanding transactions in corporate businessContinuing to grow alongside the region

Management Base Supporting Value Creation

Future Vision of Retail Business

The Bank has introduced an activity-based
evaluation system for both retail and corporate
businesses.
To revise a review of previous evaluation
systems, we introduced an evaluation system forthe retail business that focuses on the volume ofsales personnel’s activities, such as the number of
appointments made and the number ofcustomers visited, and fiduciary duties. For the
corporate business, we introduced an evaluation
system that places more weight on the process
up to the signing of contracts for solutions. We
will have meetings with numerous customers tolearn about their asset management needs andmake proposals to solve their business
management issues. Through changes in the way
our sales personnel act, we will create more
opportunities to make optimal proposals to awider range of customers than ever. In particular,
we will seek out opportunities to interact with newcustomers as well as existing customers. In thisway, we will aim to revitalize transactions withmany customers and turn them into fans of Chiba
Bank.

Human Capital Management

If we are to realize the Purpose and Vision, it isimportant to have a better understanding of ourcustomers and to identify their existing and latentneeds. By understanding those needs andmaking optimal proposals for bringing customers’
hopes to life and solving their issues, we will
evolve our business model into a customeroriented model in which the Bank will growtogether with our customers.

I will talk in specifics about our retail andcorporate businesses separately, starting with theretail business.
In October 2023, in a major change of direction
for the retail business, the Bank abolished branchrevenue targets and established an evaluation
system that focuses on activity volume andfiduciary duties.
We will aim to improve customer satisfaction
by deploying sales activities that pursue the bestinterests of our customers.
Given the infinite variety of the lifestyles and needsof our individual customers, we need to make
optimal personalized proposals. To this end, we will
strengthen our digital marketing that anticipates
customer needs. By estimating individual customers’
life events based on their various transaction dataand predicting highly needed products, we will aim

Introduction of activity-based evaluation system

Growth Strategy for Value Creation

Understanding our customers well
to deliver optimal solutions

precisely identifying their latent needs andmanagement issues, and continuing to propose
solutions, in our efforts to solve social issues in theregion.

Chiba Bank’s Value Creation

Kiyomi Yamazaki

to make the most appropriate proposals at the mostappropriate times. We will share data analyzed by
the headquarters with the branches and, as a“comprehensive money consultant,” make a wide
range of proposals, such as asset management,
mortgage, auto and education loans, to support theprosperous lifestyles of individual retail customers.
We will work on various initiatives to bring the hopesof many more customers to life, such as establishing
new locations for mortgage loans services to
respond to a wide range of customer needs andholding video-based inheritance seminars forinheritance-related services.
I hope that our retail customers will feel free toconsult with us about their needs.
Next, in the corporate business, as “anassistant to management,” Head Office, thebranches, and Group companies will work
together to gain a full picture of the management
issues of each corporate customers andpromptly make proposals that will help support
their core business.
Given the significant changes in the businessenvironment surrounding our corporate customers,a particularly large number of customers currently
face management issues related to GX and DX.
The Bank is placing efforts into non-credit solution
proposals, such as decarbonization and ICT
consulting, and our track record in this area is
growing steadily. For each case, we form asolutions team in which the branches,
headquarters, and Group companies collaborate toconsider the most appropriate proposals. In thisway, the entire Group will work together to act
swiftly to resolve customers’ management issues.
In addition to assisting customers with theirfunding, we will stay close to our customers,

Messages

Delivering high-quality
services tailored to eachand every individual andcorporate customer withthe optimal timing

44

Growth Strategy for Value Creation

Retail Business

Strengthening operational systems for housing loans in and outside of Chiba Prefecture
Housing loan execution status
31.0%

23.8%
328.1

24.5%
349.2

25.7%

352.4

26.5%

347.3

376.7

Issues in the 100-Year Life Society
Preparation for dementia, etc.
2020.32021.32022.32023.32024.3

Ratio of those outside Chiba Prefecture*
Amount of execution (¥ billion)* Depending on the location of the branch executing the loan

I want to leave the rental
property management
to my successor.

Once the inheritanceprocess starts,
money cannot be
withdrawn immediately.

Inheritance procedures aretroublesome and a burden
on my family...

Asset management trust

Family trust (civil trust)
support service

Alternative testamentary trust

Testamentary trust

Chibagin’s Support Service in the 100-Year Life Society
MESSAGE

Ayaka Usami
Consumer Loan
Business DivisionTokyo Consumer Loan Centersuit their own taste, in their home purchases,
which is said to be the most expensive purchasein life.
I hope to continue to be the first person andbank that customers can consult when they ortheir loved ones are in need. To that end, I will
make further efforts to build a relationship of trustwith customers by sincerely listening to eachcustomer’s voice, and having the Bank provide
total support in a wide range of areas, startingwith housing.

Become a reliable advisor on“inheritance”
Amid growing interests in inheritance, with the“end-of-life planning boom,” the “revision of theInheritance Tax Act,” and “an increase in thenumber of meditations in family courts for thedivision of estates,” I provide advice on inheritanceand assistance with the preparation of testaments,
as a person in charge of inheritance-related
services.
I am working daily with customers to address
the issue of “inheritance,” an issue that is difficult
to discuss even with their family members, torealize smooth asset succession. I feel the real thrillof my job when I am able to provide better advice

Fumika Sato
Trust Business Division
Consulting Department

for customers and their family members who will
inherit their assets by closely supporting them.
When the testament is completed and thecustomer says “I am glad that I consulted with
Chiba Bank,” or “I feel relieved that my wishes andintentions take shape,” that is the moment when I
feel happy as a sales representative
I will continue to make every effort so that eachand every customer can consult with us withpeace of mind, and to ensure that everyone in theregional communities can rely on Chiba Bank
when it comes to inheritance.

The Chiba Bank Integrated Report 2024

Financial and Corporate Data

The Chiba Bank Integrated Report 2024

What if I can no longer
go to the bank...

Management Base Supporting Value Creation

45

Preparation for inheritance

Human Capital Management

After going through career development training,
I became responsible for operations at a branchcounter and then for a loan liaison. Currently I am
in charge of housing loans for retail customers.
I try to think what customers need and what
they want from us, and I am committed toworking with them to realize prosperous lifestyles
beyond the loan.
I feel the joy of helping customers realize theirwishes and dreams to build their own home, tolive in a house where they can live with theirfavorite cats, or to renovate their new home to

Growth Strategy for Value Creation

Main lineup of our trust business and inheritance-related services

MESSAGE

Housing loans to help
customers realize their dreams

In 2006, the Bank obtained licenses for inheritance-related
services and trust businesses and became the first regionalbank in Japan to provide inheritance-related services by itself.
With the advent of the 100-Year Life Society, we provide
a wide range of services to help solve various issues ofcustomers from “preparing for dementia” in deposit
management and rental property management to “preparing
for inheritance” to ensure smooth asset succession.
In December 2023, in order to show customers in aneasy-to-understand manner that testaments are effective forsmooth asset succession, we started to hold “inheritance seminars,” which consists of dramatizedvideo and commentary, at all branches. We will continue to realize more customers’ wishes andintentions for their family.

Chiba Bank’s Value Creation

In order to flexibly respond to changes in the social
environment including soaring housing prices anddiversification of work styles and to closely support
the wishes and intentions of our customers topurchase houses, we have strengthened ouroperational systems mainly by expanding thenumber of personnel specializing in housing loans.
In October 2023, personnel specializing in housing
loans, available on bank holidays, was assigned to the
Asahi Branch to respond to a wide range of inquiries
and requests from customers in the Toso area.
In addition, in order to further strengthen sales inTokyo, where demand for housing remains strong,
we have expanded a system of the Tokyo Consumer
Loan Center, and established the “Tokyo Consumer
Loan Center Shinjuku Office” in the Shinjuku Nishi
Corporate Banking Office in June 2024, to provide
consultation services for housing loans in the WestTokyo area. We will flexibly review our operational
systems in line with trends in housing needs andwork to evolve products and systems that meets thetrend of digitalization and the needs of customers.

Inheritance-related services and trust businessMessages

Individual values and lifestyles have diversified, and accordingly, the services that customers expectfrom financial institutions have changed. The Bank Group has worked to strengthen operational
systems and various services to provide optimal services that meet the needs of retail customers.

46

Growth Strategy for Value Creation

Corporate Business

Main Initiatives

Number of transactions(in the year ended March 31, 2024)*

243

239
Signed contracts

0.51

2019.32021.3*Including ICT consulting service

2020.3

Number of contracts

4%5%

Digitalization
25%

0.56

0.53

Launch of new
businesses
Subsidy application
support 7%

2022.32023.32024.3

Fee and commission income (¥ billion)

Restructure
human resourcesmanagement system
17%

Mid-termPlan,management
strategy21%¥1.15 billion
96 ¥0.91 billion¥0.73 billion¥0.57 billion ¥0.49 billion

Stock deals
1,400

2020.3 2021.3 2022.3 2023.3 2024.3

103

Number of advisory contract
Fee and commission income

New business

Example of utilization image - CRE strategy -Real estate held by customers

Support for
liquidation/lease back

Balance sheet of customers (business corporations)
AssetsLiabilities

Sale priceNet assets

Example of utilization image - Development support -Developed and efficiently
used by customers

Provide support

Liquidation

Secure/supplement
funding capacity

Sale priceReal estate funds (SPC)

Providing accompanying support to business
operators through ICT adoption• Improvement ofbusiness flow
• Comparison/
review of solutions• Introduction of IT tools• Initial settings• Improving operation flow

Support for introduction

Staffing service

Chibagin Computer Service

Chibagin Career Service• Preparing
management plans

Advisory
Chibagin Research InstituteOperational
efficiency (IT)support consulting
23%

Business matching
35%

Breakdownof contracts(2024/3)
Package system
implementation
support 12%

System design
consulting
31%

Solve customers’ issues by drawing
on all the power of Chiba Bank
Ichinomiya Branch is located in Ichinomiya Town, which
was the surfing venue for the Tokyo Olympic Games.
We handle a comprehensive range of businesses withmany transactions with local companies with a long
history as well as new businesses established by people
who have moved to the town.
In our corporate business, I try to share the future
vision and concerns of business owners from theperspective of their management, and make proposals
by drawing on all the power of Chiba Bank to realize
their wishes and solve their issues. For example, forcustomers who suffer a shortage of human resources, I
refer to Chibagin Career Service, and propose custommade solutions in collaboration with headquarters, such

Seiya
Maruyama
Ichinomiya Branch
General Manager

as personnel system review through Advisory services,enhancing corporate image with advertising, andimproving operational efficiency through ICT consulting
services.
It is also important to hone our skills in order to build
a relationship of trust with customers so that they canconfide their concerns to us. I instruct my subordinates
to always learn and become a person of choice forcustomers, based on my experience where the skills of
SME management consultant acquired through theBank’s learning support program have been successful.
I feel the irreplaceable joy with my subordinates when
our customers express their appreciation for proposals
we have seriously considered over and over again.

The Chiba Bank Integrated Report 2024

Financial and Corporate Data

The Chiba Bank Integrated Report 2024

Active60

Management Base Supporting Value Creation

47

146

MESSAGEICT consulting service
In our ICT consulting service launched in April
2021, we provide services that support
digitalization to help improve customer
productivity. We offer consulting on the
introduction of the optimal system and IT tools
independently from IT service providers to help
solve customer issues. The number ofconsultations in FY2023 has exceeded 250, andin addition to attendance management andsalary calculation systems, we have increased
consulting on the support for the introduction of
no-code/low-code systems.
In addition, the Chiba Bank was selected forthe “Regional Digitalization Support Promotion
Project,” a program established by the Cabinet
Office for regional financial institutions. We willcontinue to strengthen our accompanying
support services toward the digitalization ofsmall and medium enterprises in the region.

227

To meet the increasingly diversified and sophisticated customer needs related to real estate, such as
improving the balance sheet, raising growth capital, and realizing large-scale investments, we workwith external experts to provide support utilizing real estate liquidation scheme.
We will continue to dig deeper into the management and financial issues of each customer from theperspective of real estate, thereby providing custom-made optimal solutions.

2024/3Comprehensive
tourism strategy 9%214
Signed contracts

Human Capital Management

0.31

Other
4%

Management
diagnosis 6%

137

47
0.19
5
0.02

Create organizational
reform scheme 2%
Strengthen corporate
administration system

227

Proposalsunderconsideration
280
Number of
consultations
per year
600

Breakdown of contracts*

Changes in the number of contracts,
advisory income*High-level solutions via real estate funds

Fee and commission income

Growth Strategy for Value Creation

In advisory services for business operators, we provide various support, including support for forming
management strategies and business plans in anticipation of business expansion, support for creating
human resources management systems, and lateral support for starting a new business in responseto changes in the business environment.
The number of contracts in FY2023 exceeded 200 for the second consecutive year, contributing to
the increase in the Bank’s commission income. As the specific number of consultations exceeds 600
per year and continues to increase, we will continue to provide sophisticated consulting on ourcustomers’ management issues.

Our business succession consulting services
provide one-stop, speedy support for all issues
related to business succession.
The number of support for businesssuccession has steadily increased, and thenumber of stock deals, for which we willconsider M&A in the future, has also increased
to approximately 1,400. We will continue toprovide detailed support tailored to eachcustomer for their business succession needs
in a timely and appropriate manner.

Number of transactions

Chiba Bank’s Value Creation

Advisory services for business operators

Business succession consulting services

Messages

The business environment surrounding companies has been dramatically changing as seen insoaring material prices and labor shortages. The Bank Group conducts customer-oriented
consulting by sharing management issues with various business operators, including individual
business owners, small and medium enterprises, and major companies.

48

Growth Strategy for Value Creation

Corporate BusinessSupport for green project in Chiba Prefecture

Green Loan Outline

Contract date

Tuesday, February 20, 2024

Loan amount¥5,000 million

Lending financial institution

Chiba Bank, Boso Credit Union, Chiba Kogyo Bank, Chiba Shinkin Bank, Choshi Shinkin
Bank, Choshi Shoko Credit Union, Keiyo Bank, Kimitsu Credit Union, Sawara Shinkin
Bank, Tateyama Shinkin Bank, Tokyo Bay Shinkin Bank, Tokyo Higashi Shinkin Bank(in alphabetical order excluding Chiba Bank)

Execution date

Monday, February 26, 2024

Third-Party Opinion

Japan Credit Rating Agency, Ltd.

Loan type

Term loan

Holding local government DX promotion trade fair

49

The Chiba Bank Integrated Report 2024

In the area around Narita Airport, the construction of a new third runway and the consolidation ofterminals and cargo areas at Narita International Airport, the full opening of the Ken-O Expressway,and the extension of the Kita Chiba Road, together with further functional enhancements to the
airport, will significantly improve access to the transportation network in the Tokyo Metropolitan area.
With various large-scale developments and community building underway, the area around Narita
Airport has considerable potential for growth.
The Bank established the Narita Project Promotion Office in October 2018. For the development of
the regional economy, we collaborate with nine cities and towns as well as business operators around
Narita International Airport to support development projects and prospective developers.

Overseas business
Financial support utilizing the overseas network
The Bank has an overseas network of six
locations (three branches and three
representative offices).
We provide support for overseas businessexpansion through our six overseas locations
and partner banks, including the latest
information on the investment environment tobusinesses overseas and customers considering
overseas expansion, market development, andfinancial support for local subsidiaries.

Shanghai
Representative OfficeLondon Branch

Hong Kong Branch

Financial and Corporate Data

In July 2023, we held “Local Government DX Promotion
Trade Fair + Hybrid Seminar” at the Bank’s Head Officebuilding. To support local government officials to workon DX operations with more concrete image and asense of reality, we displayed actual DX tools anddemonstration equipment at the fair so that visitors canfreely experience them.
At the same time, we also held seminars on a wide
range of topics including business reform for local
governments, development of digital human resources,and generative AI, providing information that would
contribute to solving issues of local governments.

Initiatives in Narita area

Management Base Supporting Value Creation

Chiba Prefecture

The Bank established the agricultural corporation Fresh Farm Chiba together with 15 local companies
in March 2018. This company has gradually expanded the amount of cultivated area to 11 hectares,
and in FY2023, we harvested 37 tons of Koshihikari rice and 14 tons of Fusakogane rice. We openeda stall for Minayoshi rice and Komekoji Minayoshi Amazake atmarkets operated by a regional trading company Chibagin
Market to communicate information directly to consumers.
In addition, we conducted a demonstration experiment toautomate the weeding on the slopes, which is one of theissues facing the region and involves a heavy workload anddanger. We will continue to take on the challenges of various
initiatives together with the local community for thesustainable development of agriculture.

Human Capital Management

Borrower

Operating the agricultural corporation Fresh Farm Chiba Co., Ltd.

Growth Strategy for Value Creation* Businesses such as renewable energy power generation facilities that contribute to solving global warming and other environmental problems.

In February 2024, ceremony was held for the “Chiba
Gastronomy AWARD” by the “Chiba Gastronomy Prefecture
Project,” which the Bank sponsored and cooperated in the
management of.
The project aims to make the Chiba Prefecture a worldclass gastronomy prefecture by recognizing outstanding
restaurants and producers in the prefecture. From more than
500 entries, the top 30 were selected from each category ofrestaurants and producers. Chibagin Market participates in this project as the secretariat, and willconsider matching producers with restaurants awarded in the Gastronomy AWARD and planning theircollaboration to generate new appeal in the region. In this way, we will contribute to solving regional
issues and providing social value to contribute to regional revitalization.

Chiba Bank’s Value Creation

In February 2024, the Bank made a Green Loan to Chiba Prefecture for the first time in the prefecture,in cooperation with regional financial institutions in the prefecture.
Green Loans are limited to use for green projects*, and the transparency is ensured by reporting on
the use of these loans and the performance of green projects after loans implementation.
This loan is a Green Loan that utilizes the Sustainability Finance Framework (hereinafter referred toas the “Framework”) formulated by Chiba Prefecture in August 2023. The second opinion has beenobtained from Japan Credit Rating Agency, Ltd. for its suitability as a green loan. By limiting the use offunds to eligible projects such as river, coastal, and erosion control improvement projects, theFramework aims to contribute to improving the environment for society as a whole.
Chiba Prefecture, the recipient of the loan, is promoting initiatives to achieve the SDGs, involving awide range of stakeholders, including residents and business operators. The goal is to use the Green
Loans as an opportunity to promote understanding of Chiba Prefecture’s advanced efforts regarding
the SDGs and to create momentum throughout the Chiba Prefecture for promoting the SDGs.

Support for Chiba Gastronomy Prefecture ProjectMessages

Regional Revitalization

New York Branch

Bangkok Representative Office
Representative Office Registered in Singapore

Overseas network

The Chiba Bank Integrated Report 202450

Growth Strategy for Value Creation

DX (Base I)

DX Strategy

Apps/Portal
The Chiba Bank app and Chibagin Business Portal are digital infrastructures that connect withcustomers, and we are gradually adding new functions to them for creating the optimal customer.
For the Chiba Bank app, in addition to enhancing financial services, we will work to developfunctions that connect with customers’ daily lives and functions personalized to customers. For
Chibagin Business Portal, we are enhancing basic functions as well as developing ancillary functions
that are useful for customers’ business activities.

Creating the optimal
customerDevelopment of operational
infrastructure that makesbanking operations more efficient
Support businesses
with platforms andnew technologies

10.6%

PaperlessSeal-less

305

17.8%
738

514

2021/3 2022/3

2023/3

Approximately
1/4 of population of
Chiba Prefecture2024/3

Platforms
BaaS
New technologies

Number of app users per day*Number of users who have used the app at least once

0.15

Chibagin Market

million people

Support sales
with digital

Human resources
development toaccelerate strategy

Digital marketing toincrease strategic
effectiveness

Increase customer engagement
Further accumulation of data

consult
Easy to anytime, anywhere

Students• Account opening• Debit cards

Marriage/childbirth

Employment• Accounts used toreceive salaries• Housing loans• Life insurance• Automobile loans• Asset management• Property insurance

Growth of children• Education loans• Review of insurance

Anticipate customers’ needs
and life plans through data analysis

DigitalThe Chiba Bank Integrated Report 2024

In-person

Arouse customers’ needs
Products and services
that meet their wishes

1

UseComplete through a portal without coming to a branch counter

Provide banking services• Retirement allowance• Management review

Concierge

Deposits
Complete transaction management on the Web
Account balance and transaction statement

Transition trends (graphical)

Account information comparison

List of other banks’ accounts• Testamentary trust• Advancement

Diagnosis of household
finances and life plans

Information on finance literacy/
asset management

Promotion of app incorporating the results of data
analysis
Notification of debit schedule

List of assets/
contract information
Engagement tools

Design changes
Banknote mode (statement search, memo
registration, etc.)
Improvement of leads, buttons, etc. as needed

Continuous UI/UX
improvement
Authentication
linkage to otherchannels

Easy communication/linkage to face-to-facetransactions
Reservations for branch visits
Friend referrals
Advertisement distribution

Household accountdiagnosis and LP
simulation

Consultation via chat,
online, etc.

Repayment schedules

Acceptance of current account loans and repayments

Digitization of loan-related documents

Foreign exchange

House

Car

BridalTravel

Procedures
Change reported matters

Nursingcare

End-of-life2

3

Know services
Obtain necessary information when necessary

To all customers

Consult/apply for
Solve issues of own company appropriately

Present solutions

Face-to-face transactions

Information provision
Chibagin’s instruction manual

Sophisticated sales

Information dissemination

Strengthen relations with existing customers
Strengthen consulting functions

Seminar information

Guide to the Bank Group’s solutions

To face-to-face transactions
Non-face-to-face transactions

New services
Strengthening collaboration with external services
Online loans

Issue balance statement

Chibagin Market

Greenelectricity

Aim to be a bankclose to customers
in bothreal and digital life

Future plan

CO2 emissions measurement

Inquiry of borrowings list

Smooth linkage to Web-EB

RemoteLocal government,
cross-industry, andMy Numbercollaboration

Functions that lead to streamlining of accounting clerical
work are implemented as an online branch(concierge for corporate transactions)

Loan• Credit cards• Card loans• Utility bill payment

Proposals that meet life plans throughchannels best suited to each customer

Google Pay/Apple Pay
Local tax uniform QR
API linkage

Utilize contact

Marketing

Financial and Corporate Data

Corporate portal

House/car purchase

Inquiry of securities
account
Foreign currency
deposits and insurance

Advance repaymentof housing loans
Fund wraps balance

Functional and easy-to-understand portal site for all customers

End-of-life

Retirement

Further enhance the lineup
of proposals throughnonfinancial services

Collect data from diverse media

51

Exciting design with simple andeasy operation

Loan repayment
schedules
App loans
Inquiry of details ofinvestment trusts
Investment trust
account opening

Management Base Supporting Value Creation

Proposal that stands upstream ofcommercial distribution

Branch counter/offices

Pleasant experience on
smartphones

Realized

We are working to estimate customers’ interests, concerns, and problems through data analysis andpromote efforts to deliver solutions to them by the most appropriate channels and timing.
We will improve customer experience by grasping the results of analysis of the needs of customers,
etc. in an integrated manner at branches and headquarters, and making appropriate proposals
through all channels.

ATMs

Personalization
Visualization of transactions andassets/individualized proposals

Formal personalauthentication
Registration of
accounts used toreceive public money
Procedures
Continuous customer
management

Advertisingbusiness

Digital Marketing

Apps

Enhance functions

2026/3(Plan)*Number of Chiba Bank app registrants ÷ Number of individual active customers(As of March 31, 2024)

Creation of
non-financial
operations

Needs ofcorporate customers

Social media

Linkage to other services

1,500

972

Enhancement of convenientand secure financial services

Connecting with daily
lives

50.0%

25.5%

Regional trading company

Support needs
with digital

Regional
ecosystem
strategy

Individual apps
Corporate portal

Enhancement offinancial services

From 2026/3

Barcode payment
Transfer
Balance and transaction statement
Deposits, cancellations, and account opening oftime deposits
Web account opening and application for accounttransfer

Human Capital Management

Evolution of
the customer-focusedbusiness model

App penetration rate*
Number of app registrants
33.8%(thousand)Increase
contact points
withcustomers

Personalization
strategy

Number of app registrants
1.50 million people

Improve
UI/UX

Evolution offinancial
operations

Number of app registrants and app penetration rate

Communication

Needs of individual
customers

Digitalize transactions at
branches

2025/3Growth Strategy for Value Creation

Development of digital
infrastructure thatconnects with customers

Making app for familiar
financial services

Solve any
problemthrough
one channel

Chiba Bank’s Value Creation

Future plan

Implemented

In our DX strategy, one of our basic policies is “Creating the optimal customer” through the optimal
utilization of our digital infrastructure such as the Chiba Bank app for individual customers and the
Chibagin Business Portal for corporate customers, which we have developed to date, to provide
customers with the best “Chibagin experience.”
That policy is based on two pillars of “personalization strategy” that utilizes digital marketing to deliver
optimal proposals to each and every customer, and “regional ecosystem strategy” that connects local
customers with local businesses to develop an active economic cycle. To achieve these strategies, wewill create non-financial services including advertising business and concierge services for homepurchases while evolving our existing financial services such as Chiba Bank app development.

Messages

DX is an important management challenge for a company to maintain its competitiveness and grow.
The Bank Group includes “DX (digital transformation)” as one of the value creation bases in its
Mid-term Plan, and is working on various initiatives based on its DX strategy.

Personalization
recommend

Digital contact
Maintain/expand transactions with customers withno transactions other than deposits and customers
with small transactions
Capture a new customer segment

Improve operational
productivity

Transaction channels
that meet customers’ needs

The Chiba Bank Integrated Report 202452

Growth Strategy for Value Creation

DX (Base I)

Advertising business

Improve operational efficiency

Customers coming to a branch

Customers

Remote reception
by an operator at headquarters

Remote check by a person
in charge of inspection

Remote reception

Remote inspection(teller)(officer)

PL basePaperless for various reception

Complete paperless for
subsequent clerical work

Experience as if the other person is present

MESSAGEThe Chiba Bank Integrated Report 2024

Digital Strategy Division
Operational Reform Department

for customers and people at branches who areusers of such system, and whether the system will
provide more convenience than before. To thisend, I am not bound by the way things have been
done so far, and sometimes consider starting witha review of clerical work and rules. Whendeveloping systems, we sometimes face problems
and difficulties that we have not expected,
however, this makes it very rewarding when thesystem is released and we receive compliments.
I will continue to work with customers’
perspective in mind so that I can provide services
that are more convenient for customers.

Display
above ATM

Advertisements

Advertisements

Email*

Advertisements

Customers
Support marketing
while collaborating

Advertisements

Business issues support
Consulting on financing* Underconsideration

Metaverse demonstration experiment

Onionnews Inc.
(20% investment by the Bank)

Advertising planning, production,and operation support

New business

The Bank is considering the use of Metaverse space as one of
the channels to provide new customer experiences andapproach to new customer segments. In FY2022, we held
Metaverse events for various segments including ones forprospective employees, employees of local governments, andchild-rearing generation. We also conducted a survey of users’
receptivity to Metaverse space. In FY2023, we provided a pilot“Metaverse Housing Exhibition Venue,” the first of its kind for afinancial institution, in cooperation with a real estate company.
Going forward, we will aim to officially develop the “Metaverse
Housing Exhibition Venue” and provide new contents.

Joint Business Plan (JBP) agreement with Google Cloud Japan LLC
In January 2024, the Bank reached anagreement on Joint Business Plan (JBP) with
Google Could Japan to advance our initiatives
in the digital marketing field. In our JBP
initiatives, we will promote the advancement in
the field of marketing knowhow using online
advertisements and videos, and data analysis
technology using Google Cloud’s AI andmachine learning.
In addition, to accelerate the accumulation ofsuch advanced knowhow within the Bank, wewill organize our advertising operation systems,
which have been dispersed by product, into
two working groups to strengthen and improve
efficiency on our operation system.

Utilize Google’ s marketing tools and Google CloudMarketing using online advertisements and videos
Data analysis technology using Google Cloud’ s AI and machine learning
Development of cloud data environment

Financial and Corporate Data

Working together with the department in charge, I
review existing workflow to determine the bestflow for systemization, and mainly provide supportin progress management, various adjustments,
etc. in system development to realize that flow.
Specifically, I have been involved in thedevelopment, including renewal of delinquency
management system, implementation of anelectronic contracting system, and realization of
paperless investment trust contracts andpaperless money transfer for insurance premium.
In developing systems, I place importance on
the viewpoint of whether the system is easy to use

Yuka
Kenmotsu

Chiba Bank app
recommendation
columnAdvertisements

Management Base Supporting Value Creation

Struggling to develop systems
with users’ perspective in mind

Signagein the lobby

Signageat ATMcornerHuman Capital Management

TSUBASA smile
Telepresence System “MADO”

53

Advertising consulting services

Advertising media services
Digital signage
at the Chiba
Advertisements
Ekimae Branch

Growth Strategy for Value Creation

Introduced at Hamamatsucho
Branch and Mito Branch(established in 2023)

We officially announced the launch of the advertising business in May 2023, and have started
operations at all branches since October 2023.
The advertising business is structured to provide two distinct services, an “advertising media
services” and “advertising consulting services.” In the “advertising media services,” we placeadvertisements of customers in the region on advertising media including large signage for outsideuse in the Tokyo Head Office and the Chibagin INNOVATION LOUNGE in the Chiba Ekimae Branch,
as well as lobby, ATMs, and Chiba Bank apps, which has been well received by customers as a new
advertising venue.
In the “advertising consulting services,” we collaborate with Onionnews Inc., a company in which
we have an equity participation, to provide customers who are considering advertisement on theinternet with services such as creating websites and posting advertisement on the internet.
We will continue to contribute to the development of the regional communities by providing
customers with unprecedented values through new media planning utilizing the Bank’s data andenhanced consulting services.

Chiba Bank’s Value Creation

By reviewing workflow and automating operations with RPA, we plan to reduce workload by 300,000
hours in three years, and we have reduced workload by 110,000 hours per year for the period from
April 2023 to March 2024. We are also working to realize lightweight branches by consolidatingclerical work at headquarters utilizing TSUBASA general-purpose paperless system, and establishingbranches without counters utilizing Telepresence System “MADO” in November 2023.
We will continue to expand features of non face-to-face digital infrastructure such as Chiba Bankapp and Chibagin Business Portal so that customers can choose the best channel from in-person,
digital, and remote, thereby moving closer to providing the “best customer experience.”

New businessMessages

Main Initiatives

Advancement of “one-to-one marketing”
Organized into two
Different advertising companies
WGs to strengthen the system
and individual budget setting for each product
Lack ofhorizontal
cooperation

Apps

Cards

NISA

Bidding Advertisingcompetition company A

Advertising
company B

Advertising
company C

Decrease inlearning
efficiency

BudgetBudgetBudget

WG foreach
product

Unsecuredloans
WG

Advertising
company X

Advertising
company Y

Set JBP strategic budget

The Chiba Bank Integrated Report 202454

Growth Strategy for Value Creation

GX (Base II)
Target for the amount of sustainable finance and its results
Target amount(FY2019 to FY2030)

Actual amount[progress rate](FY2019 to FY2023)¥2 trillion¥1,424.7 billion[71.0%]

Cumulative amount of sustainable finance

Messages

In a sustainable society, GX is an important social challenge to protect the most important “global
environment.” The Bank Group will contribute to the realization of a decarbonization in the region
through initiatives for sustainable finance and promoting the spread of renewable energy.

(¥ billion)
Non-environmental finance

Environmental financeTarget: ¥2 trillion

Sustainablefinance

Sustainable financeLarge
enterprises

55

The Chiba Bank Integrated Report 2024

• SDGs Friends Loan
· Linking customers’ business activities
with the objectives of SDGs
· Support customers’ efforts to achieve SDGs

2023.32024.32031.3CO2 emission measurement tool “C-checker”
The Bank Group developed a CO2 emission
measurement tool “C-checker” in September
2023, and started offering it as a free service of
the Chibagin Business Portal. Starting with the“C-checker,” which helps customers visualize
their CO2 emissions as a first step toward
decarbonization, we support the formulation of
CO2 emission reduction plans and provide asolution menu such as solar power generation
facilities and energy saving facilities incollaboration with business matching partners.
In this way, we have established a system tosupport customers’ GX activities in acomprehensive manner.

Realize adecarbonizedsociety byvisualizing CO2
emissions

MESSAGE

Supporting sustainable management
through repeated trial and error
My job is to support customers’ efforts forsustainable management from both financial andnon-financial aspects.
In financial aspect, commercialization of the“SDGs Leaders Loan” has expanded the range ofcustomers involved in sustainable finance. Whendeveloping sustainable finance, I work throughtrial and error, considering what are the key issues
for customers and what goals are ambitious level
for them, while gaining knowledge from the
Chibagin Research Institute and external
evaluation companies.

Koji Kaminishi
Corporate Business Division
Business Solutions
Department

In the development of the “C-checker,” a CO2
emission measurement tool, as a first step toward
decarbonization, I worked very hard with a lot ofanxiety, as that was my first experience working
on system development and I had no specialized
knowledge of system. I had faced problems manytimes before I achieved the system I envisioned,but I worked with people of the Chibagin
Computer Service and related departments, andwas finally able to release the Bank’s uniquemeasurement tool.

The Chiba Bank Integrated Report 2024

Financial and Corporate Data

Small and medium enterprises• SDGs Leaders Loan
Sustainability linked loan type
Green loan type
· Financing consistent with international principles· Evaluated by Chibagin Research Institute(R&I evaluates the framework)

2022.3¥1 trillion

Management Base Supporting Value Creation

Medium-sizedcompanies• Positive impact finance· Financing conforming to international principles· Assigned a third-party opinion
by an external organization (JCR)

2021.3

652.5

Human Capital Management• Green loans· Financing conforming to international principles· Evaluated by external organizations (R&I, etc.)¥652.5 billion[65.0%]

290.2

Growth Strategy for Value Creation• Sustainability linked loans

772.1

642.5

¥1 trillion

1,424.7
Chiba Bank’s Value Creation

The Bank provides various loan products to promote customers’ GX in terms of finance. We offer a
product lineup such as the Chiba Bank Sustainability Linked Loan and Chiba Bank Green Loan
primarily for large companies, as loans conforming to the Sustainability Linked Loan Principles andother international principles. In January 2022, the Bank established the Chiba Bank SDGs Leaders
Loan primarily for medium-sized companies. This is a loan program evaluated and implemented by
the Chibagin Research Institute, in which specialized departments of the Bank provide support tobusinesses that are working on sustainability management for setting effective targets and so forthaccording to business size and management conditions. We have received a third-party opinion from
Rating and Investment Information, Inc. (R&I) regarding the conformity of this product’s framework tointernational principles. In August 2022, we commercialized the Chibagin Positive Impact Finance forlarge and medium-sized companies after receiving a third-party opinion from Japan Credit Rating
Agency, Ltd. The Chiba Bank SDGs Friends Loan has been used by many customers, primarily small
and medium enterprises.

Of whichenvironmental
finance975.8

56Growth Strategy for Value Creation

GX (Base II)

Decarbonization Consulting

Himawari Green Energy Co., Ltd. started operations

Consulting system

Himawari Green Energy Co., Ltd., a subsidiary involved in energy generation established in April 2023,
started its operations in December 2023. Currently, it is engaged in solar power generation businessin Asahi City and Kimitsu City, whose annual power generation is equivalent to approximately 35% of
the Chiba Bank Group’s annual electricity consumption. In addition, in March 2024, it launched anintermediary business for non-fossil certificates, which can be used for carbon offsetting, as part of its
decarbonization initiatives. It will continue to accelerate its business utilizing renewable energy tocontribute to the realization of a decarbonized society in the regional communities.

Advisory contract

The Bank

Chiba Bank’s Value Creation

Customer

Messages

The Bank conducts various initiatives to support customers’ decarbonization initiatives. We have awide variety of solution menus and provide consulting services based on the needs of customers,
including support for the visualization of greenhouse gas emissions and formulation of greenhousegas emission reduction plans, and support for the introduction of solar power generation facilities andenergy saving facilities in collaboration with business matching partners. In September 2023, westarted providing CO2 emission measurement tool “C-checker,” strengthening a system tocomprehensively support customers’ decarbonization initiatives.

New businessAsahi power plant

Collaboration

Growth Strategy for Value Creation

Information provision

Outsourced companies
and other companies

Asahi power plant

Chibagin Research InstituteContract

Business
matching partners

Human Capital Management

Kimitsu Power Plant

ESG evaluation sheet

Investment in GX Promotion Organization

57

The Chiba Bank Integrated Report 2024

MESSAGE

Promoting local production
and consumption ofrenewable energy

Ren Ishii
President and Representative Director of
Himawari Green Energy Co., Ltd.
Senior Deputy General Manager,SDGs
Promotion Office, Corporate Planning
Division, Chiba Bank

Himawari Green Energy was established in April
2023, with the aim of contributing to therealization of a decarbonized society in theregional communities. It is a new business,
however, all staff members concurrently serve as
the Bank’s employees. We have already started
solar power generation operations in two plants in
the Prefecture, and our business is progressing at
a faster pace than originally planned, including thelaunch of an intermediary business for non-fossil
certificates.
I am concurrently involved in the operations of
the SDGs Promotion Office of the Bank, and also
responsible for accelerating the Chiba Bank
Group’s and customers’ efforts to achieve theSDGs. I have experience working in five branches
so far, and at each branch, I worked feelingstrong ties with customers rooted in that
community. I have a strong desire to make Chiba
Prefecture, where many of our customers arelocated, a sustainable and more prosperous
region. To achieve this, I believe that we need tofurther expand Himawari Green Energy’s
business.
In order to promote the spread of renewableenergy use and local production andconsumption, I hope to make aggressive
investments by making the best use of the Bank’s
resources and information capabilities.

The Chiba Bank Integrated Report 2024

Financial and Corporate Data

In May 2024, we made an investment of ¥20 million in the GX Promotion Organization upon its
establishment. The GX Promotion Organization is an authorized corporation established under the Act
on Promotion of Smooth Transition to a Decarbonized Growth-Oriented Economic Structure (GX
Promotion Law) in May 2023, with funding from the public and private sectors. This organization plans
to provide financial support such as debt guarantees, operate the emission trading scheme, andcollects fossil fuel levy, etc. in order to achieve the Japanese Government’s goal of ¥150 trillion ormore in GX investment over the next 10 years. The Bank has been involved in the formulation of thebasic policy for realizing GX, with Mutsumi Awaji, Director and Senior Executive Officer of the Bank,
having participated in the GX Implementation Council, which is chaired by Prime Minister, and has
decided to make the investment in order to contribute to the realization of GX in Japan.

Kimitsu Power Plant

Management Base Supporting Value Creation

In order to support the sustainable management and decarbonization efforts of our business partners,
we conduct business feasibility evaluations that utilize our independently-developed ESG evaluation
sheet. The ESG evaluation sheet is a tool developed by the Bank in May 2022 to understand thestatus of our business partners’ efforts to achieve the SDGs from the perspectives of E (environment),
S (society), and G (governance). It also allows us to understand the calculation status of our business
partners’ greenhouse gas emissions. By promoting dialogue with business partners through this tooland identifying future risks and opportunities for business partners, we identify medium- to long-term
management issues and potential funding needs, etc., and cooperate with related divisions toproactively propose solutions for decarbonization, etc.

58

Growth Strategy for Value Creation

Alliances (Base III)TSUBASA Alliance Co., Ltd.

Board of Directors

General Affairs
Division
Business operations
in general

Establishment of TSUBASA-AML Center Co., Ltd.

THE HACHIJUNI BANKThe Awa Bank

* The MUSASHINO BANK and BANK OF THE RYUKYUS are members of both TSUBASA Alliance and JUUDANKAITSUBASA/JUUDANKAI Joint Research GroupTSUBASA-AML Center

T&I Innovation Center Co., Ltd.

59

The Chiba Bank Integrated Report 2024

Operational efficiency improvement taskforce· Labor-saving measures for branches· Improve operational efficiency

Cybersecurity taskforce· Cybersecurity risk management

T&I number of individual user IDs on the API platform(Million)

3.32
2.55
1.71
1.08

0.09
0.02
2019.3

0.4

0.42

0.65

0.86

1.06

0.08
2020.32021.3

Bank A• Sophistication and efficiency improvement of operations

by consolidating knowhow• Effect of reducing systems and personnel costs

Database
Bank B

Data is managed
separately for each bank

(1) Consolidating operations

AML system

AI(2) Planning, etc.

Final decision
ReportingFirst validation• Rating model• Monitoring scenario• List maintenance

MESSAGE· Next generation systems, subsystems, digital field, AML measures· Cybersecurity countermeasures

TSUBASA-AML Center

2022.32023.32024.3

T&I total

Chiba Bank

To create a society free of criminalorganizations by concentrating
the power of Alliances

Kensuke Ueda
President and Representative Directorof TSUBASA-AML Center Co., Ltd.
Senior Deputy General Manager,
Compliance and Risk Management
Division,Chiba Bank

Criminal organizations have obtained unjust profits
through various means such as wire transfer fraud,
which may damage customers’ valuable assets. In
addition, in a complex international situation,
terrorist activities and development of mass
destruction weapons are also serious issues. We
will not be able to protect our peaceful way of life
unless we stop the flow of funds to suchorganizations. TSUBASA-AML Center is anorganization with experts in this field fromTSUBASA Alliance participating banks to analyze
and verify the flow of money through banks andcut off sources of funding for criminalorganizations, etc. We will work for the sounddevelopment of the local economy and create anenvironment where customers can use banks torealize their wishes with peace of mind by bringing
together the knowledge of each bank to ensurethat we identify and eliminate fraudulent
transactions from the large volume of transactions
that occur every day.
We will maximize the power of the TSUBASA
Alliance with enthusiasm to make every place inJapan a safe and secure society free of criminalorganizations through unified efforts of all banks
that cover the entire region of Japan.

The Chiba Bank Integrated Report 2024

Financial and Corporate Data

In July 2016, we established the T&I Innovation
Center, which conducts FinTech surveys andresearch, and planning and development offinancial services using FinTech.
The T&I Innovation Center develops andoperates “TSUBASA FinTech common
platform,” a platform for open API, and works
with companies providing financial services torealize the speedy delivery of superior financial
services.

System taskforce

TSUBASA member bank

Management Base Supporting Value Creation

In March 2024, the two groups, which have astrong affinity for each other in terms ofsystems, launched the research group in orderto share their knowledge and knowhow.
We will provide value-added services toregional communities and customers incooperation with participating banks of the
Research Group.

Planning and making
recommendations onimportant issues common to
all banks (October 2021)

Human Capital Management

The Miyazaki Bank

Operation andimplementation of
AML programs(October 2020)

Growth Strategy for Value Creation

Tsukuba BankThe Yamagata Bank

Business Strategy
Division(members: The Chiba Bank, DAISHI HOKUETSU BANK,CHUGOKU BANK, and NRI)

New business

In November 2023, together with DAISHIHOKUETSU BANK, CHUGOKU BANK, andNomura Research Institute,Ltd. weestablished TSUBASA-AML Center, a joint
venture to jointly operate measures toprevent money laundering and financing
terrorism.
We will combine a wealth of practicalknowledge and experience of TSUBASA
Alliance participating banks with advanced
financial IT solutions of Nomura ResearchInstitute,Ltd. to accurately detect andeliminate transactions related to crime andterrorism, thereby contributing to thedevelopment of healthy finance and economyof the local community where our customers
can use banks with peace of mind.

AML Center

Chiba Bank’s Value Creation

TSUBASA Alliance is expanding in size year by year while firmly maintaining independence of eachbank as the largest framework of regional alliances in Japan, consisting of 10 top regional bankswith solid management bases. Since its launch in October 2015, we will further deepen collaborationand joint usage while consolidating the knowledge of 10 banks, and we will further advanceinitiatives to improve the top line and reduce costs using the advantage of scale such as FinTech,use of joint clerical work and systems, as well as inheritance-related services, development ofsyndicated loans, international business, and utilization of group companies.

In July 2020, we established TSUBASA
Alliance Co., Ltd., the company jointly fundedby TSUBASA Alliance participating banks.
In October 2020, we established the AML
Center that will work to prevent money
laundering and financing terrorism, and in
October 2021, we established the Business
Strategy Division to plan and makerecommendations on how to collaborate andconsolidate important issues that arecommon to all banks.

Messages

TSUBASA Alliance60

Growth Strategy for Value Creation

Alliances (Base III)

Collaboration synergies (total of both banks)
Phase 1

Phase 2

(to 2021/3)(2021/4 - 2026/3)

Cumulative total¥14.3 billion

Total ¥15.0 billion¥11.7 billion¥7.9 billion¥4.6 billion

2022.32023.32024.32026.3 (Plan)

Provide added value and highly convenient services to our customers and the community by combining ideas of both banks.

VisionRealize an image of evolved regional banks as front-runners in regional bank collaboration.
Front-runners in regional bank collaboration

Evolved regional banks

CreateCollaborate in new areas

Respond to digitalization (such as apps)

Create new business

Match

Accelerate standardizationand joint usage

Expand the use of joint clerical work andstandardization areas

Cooperation in cashless operations

AdvanceContinue and deepen past
initiatives

Strengthen existing measures such as assets and joint business
Promote co-syndicated loans and co-financing, sharing of knowhow, and personnel interactions

Digital sector

Studying collaborative measures in the digital human resources development and advertising businesses
Sharing knowledge and knowhow to create new digital businesses

Sustainability sector

Strengthening efforts to contribute to the ESG strategies of both banks (Decarbonization, human resources capital, governance, etc.)

OthersConsideration of joint investment etc., for in-organic growth of both banks

Business Partnership with Sony Bank
The business partnership with Sony Bank, for which a
basic agreement was concluded in October 2022, is now
in its second year.
This partnership is a business partnership between thetwo banks focusing on our joint-initiatives in the digital field,with the aim of concretizing measures while deepening the relationship between the two banks tocreate new products and services.
In May 2023, Chibagin Market and Sony Bank signed “Collaboration Agreement on Crowdfunding,”with the aim of promoting companies (their products) nationally and supporting financing forcompanies taking on new business challenges, and we started collaboration with “Sony Bank GATE,”
investment crowdfunding operated by Sony Bank.
This has enabled local business operators to procure funds while increasing the number of fansnationwide who resonate with their businesses and ideas.
At Mito Branch and Hamamatsucho Branch, newly established in November and December 2023,
respectively, remote consultation using the Telepresence System “MADO,” utilized by Sony Bank, hasbeen introduced, providing customers with experience as if they are in the same space with staff ofthe branch, even if they are far away from each other.
Going forward, we will complement each other’s strategies to generate significant synergies throughcooperation of both banks with different business models (regional bank and online bank), aiming toachieve the sustainable growth of both banks and to enhance corporate value.

Management Base Supporting Value Creation

Collaboration synergies (total of both banks)

Creation of new products
and services

Financial and Corporate Data

¥35.9 billion

5-year plan
Total ¥20.0 billion(at the end of FY2023)

Joint research on the utilization of technology
Joint research on the utilization of blockchain
Joint research on the housing loans DX
Joint research for the development ofa sustainable society

2020.3

The Chiba Bank Integrated Report 2024

Collaboration that contributes to the realization of an asset management nation
Efforts to implement for Fiduciary Duty (FD)

Human Capital Management

Concept

Chiba-Yokohama Partnership

61

Retail sector

Growth Strategy for Value Creation

2021.3

MissionThrough joint efforts such as co-syndicationof loans, co-development of SDGs Friends
Loan, and co-introduction of asset
management products, in addition to active
mutual customer referrals, mainly in Tokyo,
the Chiba-Yokohama Partnership achieved
collaboration synergies of ¥9.1 billion in
FY2023. The two banks achieved
collaboration synergies of ¥35.9 billion total
over five years since the start of thepartnership, significantly exceeding its goalof achieving collaboration synergies of¥20.0 billion total through FY2023.

Expansion of cooperation among sales branches, mainly in Tokyo (Sustainable finance, real estate non-recourse loans, LBO loans)
Exploration of overseas projects at overseas bases (Co-financing, seminars, business negotiation events)

5-year planTotal

5-year plan for the Chiba-Musashino Alliance from 2021 to 2025

Measures

Corporate sector

Chiba Bank’s Value Creation

The Chiba-Musashino Alliance hadcollaboration synergies totaling ¥3.8 billion
in FY2023. The cumulative effect of Phase
2 (April 2021 to March 2026), which started
in April 2021 was ¥11.7 billion over 3 years.
We are making steady progress toward theplan to achieve a 5-year cumulative total of¥15.0 billion in collaboration synergies.
In FY2023, we conducted interactions of
personnel in charge of corporate customer
liaison at branches, in addition tointeractions of head office manager-level
personnel that have been ongoing since
FY2021. We will continue striving tocollaborate in various areas through sharing
knowhow and ideas of both banks tofurther deepen mutual understanding.

Messages

Starting in FY2024, we have formulated a new 5-year plan for further cooperation.
In new plan, we have set the concept (what we aim to be) as “Improving the Presence in the Tokyo
Metropolitan Area” - Creating Value for Customers that only Chiba and Yokohama can provide -, andtarget effect amount as ¥25.0 billion. We will further strengthen the ability to provide solutions tocorporate and individual customers, and expand the scope of the partnership beyond the sales
division, and consider collaborative efforts in the sustainability field with a view to strengthening themanagement base of both banks.

Chiba-Musashino Alliance2021.32022.32023.32024.3

Mutual provision of digital technologies,
products and services
Utilization of the latest digital technologies
Mutual provision of products and services
that are the strengths of both banks

The Chiba Bank Integrated Report 2024

62

Growth Strategy for Value Creation

Group Governance (Base V)

Chibagin Career Service Co., Ltd.
Chibagin Heartful Co., Ltd.
Sobu Co., Ltd.
TSUBASA-AML Center Co., Ltd.

Chibagin Market Co., Ltd.

Sophistication of the group management system
Realize integrated groupmanagement, equivalent to aholding company structure

Oversee overall business execution,
including sales and administrative
aspects of Group companies

Group Strategy Division

Measures, etc.

…
…
…

(All 16 Group companies)

Allocation of management resources

Chibagin Research Institute, Ltd.

Risk Management

Chibagin Leasing Co., Ltd.

Oversee planning and promotionof the Group companies

Chibagin Securities Co., Ltd.

Operational Promotion Department

Oversee risk management,
allocation of management
resources, measures, etc.

resources, and DX throughout the Group. In
particular, it collaborates with departments incharge of risks to conduct risk assessments ofGroup companies to grasp risks faced by eachcompany as well as implements risk mitigation
measures.
The status of business execution and issues ofGroup companies grasped under these systems
are reported monthly by the Group Strategy
Division at the Bank’s Board of DesignatedDirectors. I believe that the establishment of theGroup Strategy Division has clarified reporting lines
to the Bank’s management team and established asystem for timely and appropriate discussion andreporting.

Toward sophistication of
the integrated group management
I think that it is important to implement various
measures throughout the Group in order for the
integrated group management to be moresophisticated. Ensuring that the Purpose andVision, and “Three Pledges” of the Group areunderstood and penetrate throughout the Group is
an important role of the Group Strategy Division,and the Group Companies Subcommittee, asubordinate body of the Purpose and Vision PT, is
one of our initiatives.
We are also working with each division to
conduct questionnaire surveys and training for
employees, which the Bank has been working on
for some time, conduct evaluation of theeffectiveness of the Board of Directors, andimplement various measures for unified Group
personnel management.

Energy production business
Himawari Green Energy Co., Ltd.

In addition, with the aim of strengthening theBank’s management team’s understanding of theGroup’s overall situation by providing opportunities
for direct communication with employees andofficers of the Group companies, we took the leadto hold the group-wide “opinion exchange
meetings with executives,” which have been heldat branches.

Close cooperation toachieve shared goals
Under the slogan of “close cooperation to achieve
shared goals,” I am engaged in operations of theGroup Strategy Division that oversees overallbusiness execution, including sales andadministrative aspects of Group companies. We
have always been committed to working together
as one, with no one missing at any time.
Customers’ needs are changing with changes insocial conditions and economic structure. The
Bank Group has Group companies with diverse
abilities to provide not only financial services but
also nonfinancial services such as Chibagin Market
and Himawari Green Energy.
By providing solutions only Group companies
can offer, we hope to establish unwavering trustfrom our customers and the local community
through contributing to solving social issues in theregion and realizing affluent life support, as well as
strengthening group governance.
With flexible ideas not bounded by the past, we
will foresee our customers’ needs and economic
and social changes as soon as possible, revitalize
16 Group companies of the Bank Group, andcontinue to take on the challenge of change tooffer optimal solutions and find solutions.
The Chiba Bank Integrated Report 2024

Financial and Corporate Data

Administration Department

Chibagin card Co.,Ltd.

(As of April 1, 2024)

Regional trading company

and sophisticated Group governance, incollaboration with the “operations division,” whichmainly supports the sales aspect and the “groupmanagement department,” which conduct
management across the Group.
The system of the operations division that mainly
supports the sales aspect used to involve multiple
divisions working together to provide support.
From the perspective of clarifying the support
system and responsibility, one division from eachcompany has been designated as that company’s
operations division, in conjunction with theestablishment of the Group Strategy Division. As aresult, we now have a system to support Group
companies, mainly through the operations division.
In addition, the group management department,
established in conjunction with the establishmentof the Group Strategy Division, has implemented
measures for each division including risk
management, allocation of management

Credit card

Management Base Supporting Value Creation

The Chiba Bank Integrated Report 2024

16
group companies

Chibagin Securities Co., Ltd.
Chibagin Asset Management Co., Ltd.

Human Capital Management

63

Securities and asset management

Growth Strategy for Value Creation

Currently, we have 16 Group companies in the
Bank Group, each with its own expertise, andapproximately 1,200 employees are working toprovide customers with products and services witha sense of unity of the Group, with the Bank at thecenter. The Group Strategy Division promotes theenhancement of the integrated group management

Credit guarantees and management

Staffing service and outsourcing businessGroup Strategy Division
Executive Officer and General Manager

Collaboration with each division foraccompanying support and grasping
the actual situation

Chibagin Research Institute Co., Ltd.
Chibagin Computer Service Co., Ltd.
T&I Innovation Center Co., Ltd.

Chibagin Guarantee Co., Ltd.
Chiba Servicer Co., Ltd.

Tatsuya Onishi

In order to provide customers with a wide range ofsolutions, the Bank Group’s business area is
expanding every year. We need to make the mosteffective use of expertise and information
possessed by Group companies to realize
customers’ wishes.
To that end, the Bank established the Group
Strategy Division in April 2023 that oversees overallbusiness execution, including sales andadministrative aspects of Group companies, torealize integrated Group management, equivalent
to a holding company structure, and promotesophisticated Group governance.
The Group Strategy Division is stationed not in
the headquarters building but in the Makuharibuilding, where many Group companies areheadquartered, as the division close to the Group
companies, to grasp the actual situation of theGroup companies as well as try to deepen existing
businesses and provide accompanying support
services for new businesses.

Chibagin Leasing Co., Ltd.
Chibagin Capital Co., Ltd.

Chiba Bank’s Value Creation

Providing Diverse Solutions
through Integrated GroupManagement Based on
Strong Governance

Establishment of
the Group Strategy Division

Research and consulting

Leasing and venture capital

Messages

Message from General Manager of the Group Strategy Division64

Growth Strategy for Value Creation

Group Governance (Base V)

Group Supervision Committee

Initiatives by Chibagin Market Co., Ltd.

The Group Supervision Committee meets semiannually in order to further strengthen the management
and supervision over Group companies by ensuring that the Bank’s management team understands
the management status and various issues, progress in implementation of measures of Mid-term
Plan, and future direction of each Group company, and provides appropriate instructions.
The Committee has so far focused on confirming the current performance and progress in
implementation of measures of Mid-term Plan. In order to further deepen discussions on risks andmanagement issues specific to each company and other issues, we have worked to share themanagement issues and measures for the future of each Group company by adding themes andattendance of Outside Directors and the Audit & Supervisory Board Members as observers in thesecond half of 2023.
In addition, from the first half of 2024, we have worked to share recognition between the Bank andGroup companies by having the Bank’s executives serving as non-standing Directors of Group
companies also provide explanations of current issues, etc.

C-VALUE crowdfunding and C-VALUE shopping

New businessMessages
Chiba Bank’s Value Creation

At “C-VALUE,” we promote supporting the marketing of local
business operators and regional revitalization throughcrowdfunding and e-commerce website.
Since we started the crowdfunding operations in October
2021, we have released a total of 244 projects (as of March
31, 2024). We are also working with local sports teams on
Altiri Chiba x Chiba City Monorail Projectlarge projects.
On e-commerce website, we are expanding the product lineup with a focus on local specialties,
and expanding customer services with a function that allows customers to make purchases with
TSUBASA points.

Attendants

Committee members

General Manager of the Compliance and Risk Management Division, General Manager ofthe Business Coordination Division, General Manager of the Group Strategy Division
President of each company, Executives Officers, etc.
Outside Directors, Audit & Supervisory Board Members, General Manager of the Audit andInspection Division, General Manager of the Group Improvement OfficeObservers
Expansion measures

Objectives
Promote sophisticated Group governance

Review themes

Further deepen discussions on risks specific to each company, management
issues of each company, and other issues, in addition to current performance andprogress in implementation of measures in the Mid-term Plan

Expansion of discussion time

Secure time for discussions

Presentation by responsible Directors
on recognition of issues, etc.

Execute supervisory functions over the business execution of Group companies

105.8
15.3

22.9

90.4

133.1
5.5
127.5

Providing unprecedented value throughthe creation of new nonfinancial services
Number of customers with contracts and leasing assets of Chibagin Leasing

127.6
7.0
120.6

4,728

4,844

4,948

5,062

5,050

64.1

66.0

68.7

70.8

73.6

2021.32022.32023.32024.364.8

2020.32021.32022.32023.3Discretionary investment

65

The Chiba Bank Integrated Report 2024

2024.3
Investment trusts

Recurring
sales

Branding

Establish a new business model that stands upstream of commercial distribution
STEP2

Personalized discovery ofpotential needs using data

LifeeventsReal estatecompanies

STEP3

Daily
livingChibagin Market

Concierge service forhome purchases
Chibagin Leasing

Chibagin Market

Create “connections with people’ s daily lives”
by supporting new daily consumption activities

Chibagin Market’s business roadmap

2020.3

Number of customers with contracts

Chibagin Market was established in May 2021 asa regional trading company. As STEP 1 of thebusiness, we launched a project called“C-VALUE” to create new value (VALUE) from
Chiba (CHIBA), and have provided
comprehensive sales and marketing support tolocal business operators, centered onpurchasing-type crowdfunding and operation ofan e-commerce website. In addition, we areconsidering new services related to housing andautomobiles as a new service related to “lifeevents,” which is positioned as STEP 2 of thebusiness. This service is intended to be a new

Kengo Mashimo
Chibagin Market Co., Ltd.
President andRepresentative Directorbusiness model that captures the potential needsof customers through the use of internal data of
the Bank, etc. and provide services from the
upstream of commercial distribution. By
expanding the business area to include services
that lead to “daily living,” STEP 3 of the business,in the future, we plan to play a role in the “regional
ecosystem” that the Bank Group aims to achieve.
Chibagin Market will continue to take on thechallenge of serving customers and the local
community by providing value that has neverbeen offered by any banking group, through thecreation of new nonfinancial services.

Financial and Corporate Data

87.8

120.0
5.3
114.7

Discovery and creation of
new products and services

Management Base Supporting Value Creation(¥ billion)

Create “products and services that trigger regional revitalization” from Chiba

MESSAGE

Main coefficients of Group companies
Assets under management of Chibagin Asset Management

As STEP 2 of the business, we are working on
initiatives of “Housing Concierge in Chiba,” aservice for customers considering the purchaseof their own home.
This service involves listening to customers
wishes regarding the purchase of their own
home while providing consulting services on
housing loans and their life plans and providing
regional information, closely supporting eachcustomer’s wishes, and referring to real estatecompanies that meet their wishes from aneutral standpoint.

STEP1

The local
community

Human Capital Management

Add attendants [Outside Directors/
Audit & Supervisory Board Members]

Housing concierge services

Growth Strategy for Value Creation

Group CxO, responsible Directors and Executive Officers of each company, General
Manager of the operations division, General Manager of the Corporate Planning Division

Leasing assets (¥ billion)

The Chiba Bank Integrated Report 2024

66

Growth Strategy for Value Creation

Response to Climate Change (Efforts Toward TCFD Recommendations)

Efforts Toward the Task Force on Climate-related Financial Disclosures (TCFD) Recommendations
Governance

The Bank Group has built a flexible and solid governance system to identify and manage risks andopportunities associated with climate change.

Risks and opportunities associated with climate change
The Bank Group qualitatively analyzes risks (physical and transition risks) and opportunities associatedwith climate change over short- (less than five years), medium- (five to 10 years), and long-term (over10 to 30 years) horizons. Specific risks and opportunities associated with climate change and theirimpact on the Bank’s business, strategy, and financial plan are as follows.
Risks and opportu-nities
Risks
Physical risks
Credit risk

Board of Directors
Report/discuss

Supervise

Board of Designated Directors
Sustainability Promotion Committee

Damage to the Bank’s real estate collateral due to large-scale storm and flood

Short to long term

Deterioration in business performance due to stagnation of business of financing customers as a result of theiroperations being hampered by large-scale storm and flood to their business locations

Short to long termLong term
Financing customers closing down their operations due to damage from sea level rises to their business locations
Interrupting or discontinuing our branch operation as a result of large-scale storm and flood
Short to long term
Deterioration in business performance of financing customers as a result of revision to climate change laws and regulations and taxes Medium to long term
Deterioration in business performance of financing customers as a result of a failure to invest in
decarbonization technologies or excessive investment burden in new technologies

A Committee chaired by the President. The Committee meets quarterly to identify and manage risks and opportunities
associated with climate change as well as discuss and deliberate on the formulation and implementation of various measures.

Time horizon*

Growth Strategy for Value Creation

Operational risk
Transition risks
Credit risk

Specific risks and opportunities and their impact on the Bank’s business, strategy, and financial plan

Chiba Bank’s Value Creation

Governance system

Strategy
Messages

The Bank Group announced its endorsement of the TCFD recommendations in December 2019,and has since proactively disclosed information on its initiatives for climate change in accordancewith items of the TCFD’s disclosure recommendations.

Medium to long term

Deterioration in business performance of financing customers as a result of decreased demand for traditional products and services Short to long term
SDGs Promotion Office in the Corporate Planning Division (secretariat of the Sustainability Promotion Committee)

The Office collaborates with the headquarters, branches, and Group companies to implement responses to climate change
and various measures for sustainability, and direct and manage specific initiatives.
Report/discuss

Branches

Direct/manage

Products andservices

Group companies

Cost reduction

Profit increase due to initiatives for sustainable finances including renewable energy-related loans

Short to long term

Profit increase from consulting services related to decarbonization support

Short to long term

Profit increase due to increases in demand for funds driven chiefly by infrastructure investment for disastercountermeasures and business continuation
Reduction of operation costs through high-efficiency operations such as saving of energy

Supervision by the Board of Directors*Short-term (less than five years), medium-term (five to 10 years), and long-term (over 10 to 30 years)

The identification and management of risks and opportunities associated with climate change, andformulation and implementation of various measures are discussed and deliberated by the
Sustainability Promotion Committee on a quarterly basis. Discussions and deliberations in theCommittee are periodically reported to the Board of Directors.
Key initiatives for risks and opportunities associated with climate change are determined at orreported to the Board of Directors after separate discussion by the Board of Designated Directors.

Initiatives for risks and opportunities associated with climate change

The Bank Group has incorporated items related to responses to climate change into “Chiba Bank Group
Sustainability Policy” and various policies and management plans, and taken various measures.
The Chiba Bank Group Sustainability Policy states that we promote environmental initiatives including
climate change throughout the entire Group.

Chiba Bank Group
Declaration on SDGs

The Chiba Bank Group Declaration on SDGs stipulates that environmental protection is a key priority
issue (materiality) to be dealt with, and various measures are being taken against climate change.

Chiba Bank Group
Environmental Policy

Based on the recognition that addressing climate change risks is an important issue on the global
environment, the Chiba Bank Group Environmental Policy states that the Group takes initiatives aimed
at realizing a carbon-free society.

The 15th Mid-term Plan

GX (green transformation) is set as one of the value creation bases in the 15th Mid-term Plan, andinitiatives for decarbonization are incorporated as an important strategy of the Mid-term Plan.

The Chiba Bank Integrated Report 2024

Short to long term

The Bank Group has identified and recognized risks and opportunities associated with climatechange, and taken following measures as its main strategies.
CO2 emissions
reduction

With the aim of realizing a carbon-free society, the Bank Group is striving to reduce its CO2 emissions from its own emissions.
Promotion of energy saving in buildings and introduction of environmentally-friendly vehicles
Introduction of electricity derived from renewable energy sources (facilities the Bank contracts)
Installation of solar power plants through Himawari Green Energy Co., Ltd., a subsidiary designed to function as acompany involved in energy generation

Support for
decarbonization
management

We are engaging in various activities to support our customers’ decarbonization management.
Provision of CO2 emission measurement tool “C-checker”
Decarbonization consulting
Identification of greenhouse gas emissions and promotion of dialogue using the ESG evaluation sheet
Promotion of customer engagement through measurement of Financed Emissions

Promotion ofsustainablefinance

We have strengthened our efforts in sustainable finance that will contribute to mitigation of and adaptation to climate change risks.
Promoting renewable energy-related loans, such as financing the installation of solar power generation facilities
Provision of various loan products including green loans, sustainability linked loans, and Chiba Bank SDGs Leaders Loan
Active investment in green bonds and sustainability linked bonds
Setting target for the amount of sustainable finance

Enhance climatechange risk
management

We have selected “delays in responding to climate change” as the Bank Group’s top risk and are strengthening risk management.
Selecting and managing “delays in responding to climate change” as one of the top risks that are highly significant interms of impact and probability
Formulation of Policies on Loans and stricter credit to fossil fuel-related sectors
Managing credit and operational risks associated with climate change through an integrated risk management system
The Chiba Bank Integrated Report 2024

Financial and Corporate Data

Chiba Bank Group
Sustainability Policy

Short to long termManagement Base Supporting Value Creation

Various policies, management plans, etc. related to responses to climate change

67

Opportunities

Human Capital Management

Headquarters

Collaborate

Deterioration in business performance of financing customers as a result of rapid fluctuations in resource prices
Medium to long term
due to progress toward a decarbonized society
Drop in our share price and difficulties in raising funds as a result of the deterioration of the Bank’s reputation
Reputational risk
Short to long term
due to its continued over-investments and loans in the fossil fuel sector

68Growth Strategy for Value Creation

Response to Climate Change (Efforts Toward TCFD Recommendations)

Scenario

RCP4.5 scenario and RCP8.5 scenario (4°C scenario) of
the Intergovernmental Panel on Climate Change (IPCC)

IEA’s NZE scenario
Net Zero 2050 and Below 2°C scenario of NGFS

Analysistarget

The Bank’s real estate collateral (only that for
general lending)
The Bank’s financing customers (general businesscorporations)

Oil and gas and coal industries
Electric utilities industry
Steel and chemical industries
Air transport industry (added in FY2023)

Analysis
methodAnalyze the amount of increase in net credit costs based on thedeterioration of business performance of financing customers,
calculated based on the damage to the Bank’s real estate collateral as aresult of typhoon, torrential rain and other storm and flood damage andthe percentage of the Bank’s building site submerged

Analyze the amount of increase in net credit costs due
to changes in borrower classification by estimating thebusiness performance and financial status of financing
customers through 2050, based on the IEA’s NZE
scenario and other factors

Analysis period

Up to 2050

Up to 2050

Analysis result

Increase in net credit costs: ¥7.0 to 8.0 billion

Increase in net credit costs: maximum ¥31.0 billion*The risk status and risk ratio of building use site were analyzed with the support of a weather information company Weathernews Inc.

Roadmap for carbon neutrality(fiscal year)(t-CO2)

2019

2020

2021

2022

2023

SCOPE 1 and 2 18,783

19,016

18,42912,316

5,350

2024

2025

2026

0

Establishment of Chiba Bank Group Environmental Policy
Establishment of SDGs Promotion Office, FY2030 Carbon Neutrality Declaration, and endorsement of GX League
Switching the electricity the Bank contracts to electricity derived from renewable energy sources
Joining PCAF, management of the Chibagin Forest, and third-party verification of CO2 emissions
Established Himawari Green Energy Co., Ltd.
Started operation of Asahi Power Plant
Started intermediation of non-fossil certificates
Acquired Kimitsu Power Plant

—

2020
—

2021

2022

2023

6,315,148 12,622,906 12,995,173

2024

2025

2026

…

…

…

2036

…

Strengthen initiatives for carbon neutrality in 2050
Zero credit for coal-fired power generation

Introduction of sustainable finance products (SDGs Leaders Loan, SDGs Friends Loan, etc.)
Provision of decarbonization consulting services

Supportcustomers’
decarbonization

Start measuring CO2 emissions in category 15

The Bank Group assigns divisions to manage risks for each form of risk, and the Compliance and Risk
Management Division centrally monitors these risks and discusses risk countermeasures. The Group
Chief Risk Officer (CRO) reports the status of risks to the Board of Directors. In addition, to ensure aneffective risk management system, the Audit and Inspection Division conducts audits to determine
whether risks are appropriately managed and reports the audit results to the Board of Directors.
Risks associated with climate change are categorized into credit risk related to borrowers’ businessactivities and operational risk in continuous operation of our branch locations, in light of the results ofqualitative and quantitative analyses, and integrated into the above risk management system.

gradually expand the scope of aggregation

2050
Realization of adecarbonizedsociety

The Bank Group has formulated and announced
its Policies on Loans for businesses that areconsidered to involve significant environmental
and social risks or negative impacts, and forspecific sectors where lending efforts are
expected to have a huge environmental andsocial impact. The Policies clarify the Bank’s
approach to credit including lending to coal-fired
thermal power plants.
Furthermore, we have established a stricter
credit examination system in which we determine
the lending for fossil fuel-related sectors that areconsidered to have a huge impact on global
warming after receiving opinions of divisions incharge of SDGs.

Policies on Loans (excerpt)
Policies on Specific Sectors<Credit for Coal-fired Power Plants>
In principle, we will not extend credit to coal-fired thermal
power plants for new construction or expansion of existing
facilities.
However, in cases where support from the Governmentof Japan, international development organizations, etc.
can be confirmed, as an exception to the above policy,
we may carefully consider credit support after taking into
account the factors and the background of each individual
project, such as power generation efficiency performanceand environmental impact, with reference to internationalguidelines, etc.*

Financial and Corporate Data

SCOPE 3(category 15)

2019

Integrated risk management

Management Base Supporting Value Creation

Announced our endorsement of the TCFD recommendations (December 2019)(fiscal year)

The Bank Group selects those risks surrounding our business that are highly significant in terms ofimpact and probability as “top risks” in the Board of Directors. In selecting and managing top risks, arisk map covering a wide range of risk events is produced and discussed, including by the outside
directors and Group companies, after which a report is presented to the ALM Committee and theBoard of Directors.
We select and manage “delays in responding to climate change” as one of top risks, to strengthen
the management of risks associated with climate change.

Formulation of Policies on Loans and stricter credit to specific sectors

2030

Implementation of energy saving measures (such as replacing lighting with LED lighting and upgrading air conditioning
equipment) and introduction of environmentally-friendly vehicles into sales vehicles

The Bank’s
Initiatives

Top risk management

Human Capital Management

Transition risks

The Bank Group recognizes risks associated with climate change (physical and transition risks) as
risks that have significant impact on the management of the Group, and has strengthened
management of these risks after having identified and assessed their specific details by time horizon(short, medium, and long term). The Corporate Planning Division and the Compliance and Risk
Management Division cooperate to identify and assess these risks, and report the analysis results at
the Sustainability Promotion Committee and other meetings.

Growth Strategy for Value Creation

Physical risks

Risk identification and assessment

Chiba Bank’s Value Creation

The Bank Group analyzes resilience in its strategy, taking into consideration various climate change
scenarios including a less than 2°C scenario.
As a result of our analysis based on each scenario, physical risks will be ¥7.0 to 8.0 billion andtransition risks will be up to ¥31.0 billion over the analysis period (up to 2050). Considering the Bank’sbusiness performance (¥62.4 billion of profit attributable to owners of parent (consolidated)) and otherfactors, we recognize that these risks do not pose a significant concern to the sustainability of theBank’s business at this point.
We will strive to sophisticate our analysis methods for physical and transition risks associated withclimate change on a continual basis, to manage risks, take appropriate countermeasures, anddisclose information.

Messages

Risk Management

Scenario analysis*OECD Arrangement on Officially Supported Export Credit, etc.

For full text of the Policies on Loans, see our website:
https://www.chibabank.co.jp/english/corporate/policy/specific_
sectors/

Start operating ESG evaluation sheet
Provision of CO2 emission measurement tool “C-checker”
Support the purchase of non-fossil certificates through Himawari Green Energy

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The Chiba Bank Integrated Report 2024

The Chiba Bank Integrated Report 202470

Growth Strategy for Value Creation

Response to Climate Change (Efforts Toward TCFD Recommendations)Obtaining third-party assurance

Carbon Neutrality Declaration

In measuring and disclosing our CO2 emissions, we have obtained independent third-party assurance
from SOCOTEC Certification Japan for emissions (SCOPE 1 and 2) from FY2021 onwards to ensure
reliability of the figures.
We will continue to conduct third-party verification to ensure highly reliable information disclosure.

CO2 emissions (SCOPE 1 and 2)

Changes in CO2 emissions (SCOPE 1 and 2)(t-CO2)SCOPE 1SCOPE 2

18,4292,766
12,316
2,408
15,663
9,908

5,350

Target:
4,800

Net
zero

FY2025

FY2030

2,614
2,736

FY2021

FY2022

FY2023

FY2022

FY2023

2,766

2,408

2,614

SCOPE 2

15,663

9,908

2,736

SCOPE 1 and 2

18,42912,3165,350

CO2 emissions (SCOPE 3)
The Bank has measured and disclosed CO2 emissions in SCOPE 3 category 15 since FY2021, andfurther expanded the scope of measurement in FY2023. We will continue to expand the scope ofmeasurement through utilization of PCAF database and other resources, while supporting ourcustomers’ efforts for decarbonization, and strive to reduce CO2 emissions in SCOPE 3 category 15
to achieve a decarbonized society in 2050.

FY2021

FY2022

FY2023

—

8,961

9,634

Category 2—

35,222

24,536

—

2,855

2,824

—

1,297

1,363

Category 5

—

204

206

Category 6

575

618

968

Category 7

1,391

1,436

2,241

Category 15

6,315,148

12,622,906

12,995,173(Capital goods)

Category 3(Fuel- and energy-related activities notincluded in SCOPE 1 or 2)

Category 4(Upstream transportation and distribution)(Waste generated in operations)(Business travel)(Employee commuting)(Investments*)

Carbon intensity

Emissions

6.59
3.64
4.38
10.89
4.89
6.31
5.59
3.47
26.44
0.67
3.71
13.42
7.57
2.54
—

181,481
156,009562,089
1,774,763
573,30959,741
595,618
41,791
629,319495,774
559,663
195,953
25,611
7,144,050
12,995,173(t-CO2/¥ million)

Agriculture
Paper and forestry
Beverage and food
Metals and mining
Chemicals
Oil and gas
Construction materials and capital goods
Automobiles
Electricity
Real estate management and development
Land transport
Marine transport
Air transport
OthersTotal(t-CO2)

Environmental financeTarget: ¥2 trillion

975.8

772.1

642.5
290.2
2021.3

1,424.7

652.5
2022.32023.32024.3¥1 trillion
2031.3Key examples of sustainable finance
Sustainability linked loans
Green loans
Positive impact finance
Chiba Bank SDGs Leaders Loan
Chiba Bank SDGs Friends Loan
Chibagin SDGs Private Placement Bonds
Renewable energy-related loans

Project finance for creating social infrastructure
Funds for environmentally-friendly houses (Sustainable
Housing Support Discount)
Environmentally-friendly renovation funds (renovation loan)
Funds for purchasing environmentally-friendly vehicles (car loans)
Fixed income investment such as green bonds, sustainability linked bonds

Status of carbon-related assets
Based on the revision of the TCFD recommendations in October 2021, we have expanded the target
sectors for carbon-related assets in FY2022 to include the energy*, transportation, materials andbuildings, and agriculture, food, and forest products sectors. The loans, acceptances and guarantees,
foreign exchange, and private placement bonds (hereinafter the Loans, etc.) for the carbon-related
assets account for around 37.0% of the Bank’s Loans, etc. as of March 31, 2024. Loans, etc. forcoal-fired power generation account for 0.09% of the Bank’s Loans, etc., and credit for coal-fired
power generation is scheduled to be zero by the end of March 2037.

Financial and Corporate Data

Category 1(Purchased goods and services)

Breakdown of SCOPE 3 Category 15 (FY2023)(¥ billion)
Non-environmental financeManagement Base Supporting Value Creation(t-CO2)

Cumulative amount of sustainable finance

Human Capital Management

FY2021SCOPE 1The Bank Group regards the type of investments
and loans where proceeds are used to solve
environmental and social issues as “sustainablefinance,” and has strengthened its initiatives,setting the target of ¥2 trillion of the amount ofsustainable finance from FY2019 to FY2030 (ofwhich target for the amount of environmental
finance ¥1 trillion).
The amount of sustainable finance that has been
executed by FY2023 (fiscal year ended March 31,2024) is ¥1,424.7 billion (progress rate 71%), andthat of environmental finance in it is ¥652.5 billion(progress rate 65%).

Growth Strategy for Value Creation

CO2 emissions in FY2023 was 5,350 t-CO2, adecrease of 56.6% from the previous fiscal year. We
have taken measures to reduce CO2 emissions, suchas switching to electricity derived from renewableenergy sources from October 2022, and offsetting
CO2 emissions with non-fossil certificates utilizing
Himawari Green Energy, a subsidiary engaged inenergy generation business, established in April 2023.
We will continue to promote energy saving
measures such as replacing lighting with LED lighting
and introducing environmentally-friendly vehicles.
We will strengthen various initiatives for theachievement of our interim target (4,800 t-CO2) for
FY2025 and carbon neutrality in FY2030.

Promotion of sustainable finance

Chiba Bank’s Value Creation

The Paris Agreement came into effect in 2016 as an international framework on issues of climatechange. The Agreement sets a common global long-term goal of keeping the global averagetemperature increase well below 2°C above pre-industrial levels and pursuing efforts to limit it to 1.5°C.
The Bank supports the Paris Agreement and announced its goal of “achieving net zero CO2emissions (SCOPE 1 and 2) by FY2030” in March 2022, and has been working on reducing CO2
emissions.

Messages

Metrics and Targets*Oil, gas, and electric (excluding renewable energy business) utilities

CDP climate change survey
The Bank obtained evaluation of “A-” in FY2023 climate change survey conducted by CDP*. The
Bank obtained evaluation of “A-” for the third consecutive year.
*An international non-governmental organization that collects, evaluates, and discloses information on the environment from companies, local governments, etc.

*For FY2021, only those companies that disclosed emissions, mainly listed companies, were measured. From FY2022 onwards, the scope of measurement was expanded, andestimate values were used for companies whose emissions were not measured or not disclosed. Loan amount of approximately ¥7.6 trillion in FY2023 for companies measured
is equivalent to 94.0% of loans to general business corporations and individual business owners (excluding public and private funds).

71

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The Chiba Bank Integrated Report 202472

Growth Strategy for Value Creation

Response to Natural Capital

Communication with Stakeholders(Efforts Toward TNFD Recommendations)

Communication with Customers

Since 2003, the Bank has been implementing forest management
activities using “Corporate Forest Business” in Chiba Prefecture.
These activities strive to restore the coastal shelter forest, which
has become sparse due to damage from pine weevils and thetsunami caused by the Great East Japan Earthquake. We thus aim
to enhance disaster mitigation effects at the time of the tsunami andpromote tourism by improving the landscape.
We will continue to implement activities to conserve natural capital.

The Bank utilizes customer feedback to improve management. Opinions, requests, and otherfeedback from customers, collected through Customers Feedback Cards available at branches, a
dedicated toll-free number, our website, and other means are reported to the Quality Improvement
Committee. We constantly take measures to utilize such feedback for service improvement.

Sixth Chibagin Forest at Tsurigasaki
Beach in Ichinomiya Town

Chiba Bank Group will strengthen various initiatives based on the TNFD Recommendations for theconservation of natural capital, including biodiversity.

In February 2023, the Bank Group participated in the TNFD Forum in support of TNFD’s initiatives.
The Bank Group recognizes the risks and opportunities associated with natural capital over short-term (less than five
years), medium-term (five to 10 years), and long-term (over 10 to 30 years) time horizons as follows:

Risks

Opportunities

Increase in opportunities for investment and loans for restoration of natural capital(medium to long term)
Cost reduction associated with reduction of paper consumption and waste volumes (short
to medium term)

We conduct integrated risk management and implement the Policies on Loans to apply stricter credit to specificbusinesses and sectors that have negative impact on natural capital.

Measures under the Policies on Loans
Prohibition

Businesses that have negative impact on Ramsar wetlands and UNESCO World Heritage sites
and businesses that violate the Washington Convention

Strict response

When considering whether or not to commit to palm oil plantation development projects,
deforestation projects, etc., we take into account the appropriate international certifications andthe impact on the living environment of local communities and residents.

In terms of indicators and targets concerning natural capital, the Bank has established targets for amounts ofsustainable finance. The volumes of resources consumption and waste associated with the Bank’s businessactivities are as follows:

Target for amount of sustainable finance and results
Target amount (FY2019 to FY2030)
Sustainable finance¥2 trillion¥1,424.7 billion [71%]

Of which, environmental finance¥1 trillion¥652.5 billion [65%]Resources consumption and waste volumes (FY2023)
Water consumption (m³)

53,090Paper consumption (t)49

Waste volume (t)361Data from the head office building, Oyumino Center building, and Soga Center building. Water consumption is the total volume of water and sewage.

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The Chiba Bank Integrated Report 2024

Number oftimes held

Presenter

Number ofparticipants

The 117th Annual General Meeting of Shareholders

1

Directors, Audit & Supervisory Board members, etc.

117

IR meetings

2

President, CSO/CDTO

343

IR Day “The 15th Mid-term Plan”

1

President, CSO/CDTO, CHRO

61

Small Meeting for financial results announcement

2

CSO/CDTO

115

6

CSO/CDTO

1,521

Briefings for analysts and institutional investors

Briefings for individual investors
Individual meetings with analysts andinstitutional investors

Total of 192 (of which 67 were conducted by executives and
72 were with overseas investors)

Dialogue details
Dialogues are held on a variety of topics, such as businessperformance, capital policy, alliance strategy, DX strategy,
sustainability, and human capital. Q&A sessions in briefings foranalysts and institutional investors are disclosed on the Bank’s
website.
IR Day “Growth Strategy” (April 2024)

Communication with Employees
Opinion exchange meeting with executives

Financial and Corporate Data

Indicators andtargets

Actual amount [progress rate] (FY2019 to FY2030)

Meetings, etc.

Management Base Supporting Value Creation

Risk
Management

Activity Results (FY2023)

Human Capital Management

Strategy

Concerns about business continuity/deterioration in business performance of financing customers
associated with natural capital degradation (medium to long term)
Reputational risk associated with deterioration in reputation due to businesses that have negative
impact on natural capital (short to long term)

The Bank strives to enhance disclosure through the General Meeting of Shareholders, IR meetings,
meetings with individual investors, and other IR events.
In addition to IR meetings and individual meetings, we held briefings on the Mid-term Plan andother events in FY2023.
Directors, including the President and outside directors, or Audit & Supervisory Board members
participate in dialogues with shareholders and investors within a reasonable scope. In addition,
feedback received in these dialogues are reported to directors and the Board of Directors. We will
improve management based on that feedback.

Growth Strategy for Value Creation

We employ a similar governance system for our responses to natural capital as that for our response to climatechange. For the development and pursuit of initiatives, the Sustainability Promotion Committee discusses anddeliberates directions, specific activities and initiatives, as well as the identification and assessment of risks and op
portunities. The contents of those discussions and deliberations by the Committee are reported and proposed to theBoard of Directors.

Chiba Bank’s Value Creation

Communication with Shareholders

Efforts Toward the Task Force on Nature-related Financial Disclosures (TNFD) Recommendations

Governance

Messages

Forest management activities for the Chibagin Forest

To reflect the voice of frontline branch employees in management, we hold annual opinion exchange
meetings with executives. In the opinion exchange meetings, we share our management policies andissues. Q&A sessions constitute the core part of the meetings, where branch employees ask
questions related to management, share what they think of day-to-day work, and propose what
measures should be taken.
In FY2023, nine executives, including a Director and Senior Executive Officer, held opinion
exchange meetings at a total of 145 branches. Feedback from branch employees is reflected invarious measures.
The Chiba Bank Integrated Report 2024

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