Transition Plan

Our Group makes efforts to realize a decarbonized and circular society by 2050 in line with the Paris Agreement and build a society resilient to climate change, we have formulated the following transition plan to achieve our net zero goal.
The details of our Environmental Basic Policy, which defines our basic stance on the environment, are as follows:

Our Group has established a company-wide implementation structure centeredn on Sustainability Committee and chaired by the President and Director, and the Executive Management Meeting among other, based on bisiness strategies including the risks and opportunities related to climate change and other environmental matters. In addition, we have established the Environmental and Regional Subcommittee, chaired by the Managing Executive Officer, under the Sustainability Committee to conduct specialized and effective deliberations.
The Environmental Basic Policy is formulated by resolution of the Board of Directors, but we are working to enhance the effectiveness of our initiatives on climate change and other environmental matters by implementing the PDCA cycle, including implementation reporting in line with the basic policy.
The status of our environmental initiatives, including the formulation and execution of the transition plan, is reported appropriately and in a timely manner to the President and Director and the Board of Directors.The Board of Directors supervises our Group's promotion structure for initiatives related to sustainablilty including environment.

In addition, we collect feedback from our Group’s shareholders on the transition plan and its progress when we have discussions with them and reflect on the feedback in the plan if necessary.

We carried out a scenario analysis on the possible impact of climate change on our Group in accordance with the TCFD framework. The analysis is reviewed regularly.

Area of Coverage：consolidated group

Process of Assessment and Management of Climate-Related Risks/Opportunities and Dependencies/Impacts: the Sustainability Management Office of the Corporate Planning Dept., together with related departments, 1) identified emviromental-related “risks and opportunities” and “dependencies and impacts”, 2) assessed them, and 3) examined countermeasures. We also collect opinions at the Environmental and Regional Subcommittee, and the Sustainability Committee deliberates upon the matter. Our management, including officers, who are standing members of the Sustainability Committee, and directors participate in the assessment of impacts and discussion of possible countermeasures as we promote highly effective, company-wide initiatives on climate change and other environmental issues.

We used the following two scenarios to understand the impacts of climate change on our group’s business operations as accurately as possible.

1.5℃ scenario: This scenario is based on an assumption in which temperature increase by the end of the 21st century is capped at about 1.5°C compared to pre-industrial revolution levels. It anticipates the emergence of risks and opportunities associated with the transition to a carbon-neutral society, such as tighter GHG emissions regulations and the shift from gasoline-powered vehicles to electric vehicles (EVs).

4℃ scenario: This scenario is based on an assumption in which temperature increase by the end of the 21st century is capped at about 4°C by the end of the 21st century compared to pre-industrial revolution levels. It anticipates an increase in severe disasters due to sea-level rise and abnormal weather conditions.

Our Group used the 1.5°C scenario as the basis for risks and opportunity analysis and sets reduction targets aimed at achieving carbon neutral by 2050. However, when examining possible physical risks, we adopted the 4°C scenario to prepare for the worst-case scenario.

The details of our scenario analysis, including risk and opportunity identification, are disclosed on our website, among others.

In addition to climate change-related phenomena, our Group recognizes that we also have business dependencies and impacts on natural capital, ecosystems, forests, water, among others.

Our Group needs to use electricity, gasoline, and other sources of energy in business operations; that is, we have dependencies on natural capital and ecosystems that generate the energy.
The consumption of these energy sources results in GHG emissions, having an impact on climate change.

We understand that our Group also depends on wood, which is a raw material used to produce offices, equipment, and papers, and forests, the natural capital that generates wood, in business operations and that our consumption has an impact on forests.

Our Group considers forests as “the foundation for the survival of all living things that offers water, oxygen, and nourishment”.
In addition, we understand that forests play a role in preventing floods and landslides by fixing the soil with their roots and absorbing rainwater, and in preventing global warming by absorbing carbon dioxide.

We recognize forests and other natural capital as the foundation for the survival of all our stakeholders, including customers, business partners, and executives and employees of our Group.
We will make continuous efforts to coexist and co-prosper with natural capital and ecosystems such as these forests.

Taking these dependencies and impacts into consideration, our Group promotes nature conservation activities such as forestation. We believe that these activities help alleviate our Group’s impact on climate change, restore forests and surrounding ecosystems, circulate water resources, among others.

Our forestation and nature conservation activities are on the following website.

In an effort to realize a decarbonized society by 2050 and build a society resilient to climate change, our Group formulated a transition plan to achieve our Group’s net zero goal by resolution of the Board of Directors.

In move toward reducing GHG emissions, based on the premise of balancing response to social demands with business expansion, we will promote various initiatives based on three pillars: reducing the Group's GHG emissions, contributing to GHG emissions reductions through our business activities, and engagement to reduce GHG emissions across the entire supply chain and value chain.

We will promote the reduction of GHG emissions within the Group by promoting the replacement of energy-efficient equipment and devices and improving the usage ratio of renewable energy. In particular, to achive 100% renewable energy introduction, we will promote company-wide efforts to achieve net-zero emissions in the long term.
We are also promoting the optimization of the number of company-owned vehicles and to replacing them with fuel-efficient eco-friendly cars to increase the ratio of eco-friendly vehicles. We are also reducing paper usage by conducting meeting using electronic screens.

KPIs for Achieving the Above Targets (FY2024)

Please refer to the details and progress on the following website.

In business area such as auto loans, shopping credit, and credit cards,there are broad areas where we can contribute to GHG emissions reduction such as promoting the adoption of EVs and solar power generation systems. We will actively develop effective and meaningful new products . We will also actively engage in GHG emissions reduction through collaboration with other companies, such as promoting the spread of electric motorcycles and EVs through capital and business alliances.

KPIs for Achieving the Above Targets (FY2024)

Please refer to the details and progress on the following website.

We believe that it is important to build collaborative relationships and promote together toward achieving net-zero goals to reduce GHG emissions across society as a whole.
We are working to reduce paper by digitizing various loan and credit card application forms, enclosures when issuing credit card (membership rules, various guides, among others), and statements of credit card usage. We are also reducing GHG emissions related to our bussines by promoting the suppression of plastic card issuance by providing digital cards. Beyond these efforts, we are persistenly working to engage diverse stakeholders, including business partners such as member merchants, alliance partners, outsoucing partners, and suppliers, as well as government agencies and local governments, to cooperate in efforts toward achieving a decarbonized and circular society.

KPIs for Achieving the Above Targets (FY2024)

Please refer to the details and progress on the following website.

Please note that our Group is committed to neither investing in activities that undermine efforts to fight climate change nor lobbying against related regulations.

We join hands with central and local governments, hold a series of dialogues toward realizing a decarbonized and circular society, and work together to build a more sustainable future. Please check below for details.

This coincides with our engagement in the Sustainability-Oriented Procurement Policy. Please check below for details.

To achieve the above targets, our Group has developed the following financial plans:

To contribute to the 1.5°C goal set by the Paris Agreement, our Group has established the following GHG emissions reduction targets to become carbon neutral by 2050. In setting the targets, we referred to the Science Based Targets initiative.

Reduce Scope 1 and Scope 2 emissions by 29.4% and Scope 3 emissions by 17.5% by the fiscal year 2027 compared to fiscal year 2020 levels.

Reduce Scope 1 and Scope 2 emissions by 42% and Scope 3 emissions by 25% by the fiscal year 2030 compared to fiscal year 2020 levels.

Become carbon neutral by 2050.

We will continue to make all-out efforts to reduce GHG emissions through various business activities.