Community Investment

Sustainability-linked finance (loans/bonds) is a generic term for loans whose financial and structural characteristics may change depending on the achievement of the company's Sustainability Performance Targets (SPTs), which are targets that are aligned with the company's sustainability strategy.

The Orico Sustainability Linked Finance Framework was developed as a financing tool to promote the resolution of social and environmental issues. This framework will enable us to raise Sustainability Linked Loans or Sustainability Linked Bonds in a flexible manner.

In concluding the loan agreement, we developed the Orico Sustainability Linked Finance Framework, which includes the following five elements: 1) selection of KPIs, 2) measurement of SPT, 3) loan/bond characteristics, 4) reporting, and 5) verification. Aforementioned 5 elements are stated in a second opinion provided by R&I confirming conformity with the following guidelines: The Sustainability Linked Bond Principles (2020) of the International Capital Markets Association (ICMA), the Sustainability Linked Loan Principles (2021) of the Loan Market Association (LMA), the Sustainability Linked Bond Guidelines 2022 and the Sustainability Linked Loan Guidelines 2022 of the Ministry of the Environment of Japan.

We will disclose annually on our website the status of achievement of the KPI's set against the SPT for the period up to the redemption/repayment of this Sustainability Linked Loan.
All stakeholders will have access to public information on the performance of the KPIs for each fiscal year, which will allow for ongoing dialogue with our stakeholders.

• Orico Sustainability Linked Finance Framework （Japanese Only） PDF
• Second Opinion (R&I)（Japanese Only） PDF

Social Bonds are bonds issued to raise funds to solve social issues in accordance with the definition of the Social Bond Principles* established by the International Capital Market Association (ICMA).

As a third-party evaluation of the eligibility of this Social Bond, we obtained a rating of "Social1", the highest rating in the "JCR Green Bond Evaluation", from Japan Credit Rating Agency, Ltd.

In April 2012, we established the "Orico Group Social Contribution Fund," a fundraising mechanism to encourage our employees' social contribution activities. Employees can contribute as little as 100 yen per share, with the company matching each donation by adding an extra 100 yen for each participating employee. The collected funds are then donated to welfare organizations and regions affected by large-scale disasters through the "Orico Group Social Contribution Fund."

Moreover, to commemorate our 60th anniversary, we initiated a social contribution program in 2014 that today continues to introduce volunteer activities to all employees. Named the "Orico One Step Program," the initiative aims to transform the consideration of social contributions into action meant to benefit the community. Employees can sign up for activities of their interest, such as environmental conservation or disability support, through a dedicated website that lists such opportunities. These activities provide a sense of satisfaction and create awareness about societal needs, fostering personal growth. We have also introduced a volunteer leave policy to support employees willing to engage in long-term volunteer activities.

As part of our commitment to social responsibility, we are actively involved in various initiatives to strengthen our relationships with local communities.

In collaboration with local governments and various institutions, we are conducting a range of educational and awareness activities related to finance. Specifically, we are working towards enhancing our customers' financial literacy through initiatives such as educational efforts for the next generation, public lectures aimed at preventing multiple debts, and the online disclosure of resources tailored to newly-of-age individuals.

At our head office and its annex, we regularly conduct in-house sales events in partnership with organizations dedicated to supporting employment for individuals with disabilities. We facilitate the sale of products to our employees and local residents, aiming to raise awareness about our partnering organizations' activities while fostering community engagement within the local society. Since October 2020, we have been introducing these organizations' online shops to our employees and hosting sales events. We remain committed to undertaking initiatives that further support employment opportunities for individuals with disabilities.