Sustainability Management

Sustainability-related policies / guidelines

Sustainable investment and loan policy

To create a sustainable and better future, Kyushu Financial Group will actively promote responsible investments and loans that lead to solutions for local communities.

  1. We will actively engage in investments and loans in the following projects that contribute to the sustainable development of local communities and the resolution of social issues.
    1. Mitigating climate change through renewable energy and energy conservation
    2. Conserving biodiversity, such as protecting water resources, forest resources, and endangered species
    3. Promoting the development of the region’s key industries, such as agriculture, forestry, fisheries, tourism, medical care, and welfare
    4. Preserving cultural assets, such as World Heritage sites and other tangible or intangible cultural properties
    5. Preventing or mitigating disasters
    6. Creating a sustainable society through entrepreneurship, business succession, and innovation
  2. We will not, in principle, engage in investments or loans in the following sectors that are likely to foster negative impacts on the environment or society.
    1. New coal-fired power generation plants
      In exceptional cases where we get involved, we will make decisions cautiously by referring to the energy policy of the relevant country, international guidelines, and other factors.
    2. Inhumane activities such as those related to the manufacture of cluster bombs
    3. Developing palm oil plantations, etc., where human rights abuses such as forced labor and child labor are a concern
    4. Deforestation that may have an enormous impact on the environment, including the destruction of virgin forests and ecosystems

    For (3) and (4), we will consider the status of international certification in the response.

Environmental policy

Basic principle

Kyushu Financial Group and all Group staff (hereinafter, the Group) recognize that responding to environmental issues such as climate change is a common responsibility of all humankind, and aim to realize a carbon-free society by actively contribute to the realization of sustainable communities through environmental protection initiatives in the region.

Basic policies

  1. Deployment of environment-related business
    The Group supports our customers’ efforts to protect the environment by developing and providing products and services that contribute to environmental protection.
  2. Practices to reduce the environmental impact
    The Group strives to mitigate the environmental impact by reducing energy use and taking initiatives to practice environmentally friendly actions such as the use of sustainable resources, pollution prevention, and green procurement in our business operations.
  3. Participation in environmental protection activities
    The Group actively participates in environmental protection activities to deepen awareness about the environment and preserve the precious natural environment of our hometown for the next generation.
  4. Climate change initiatives
    The Group strives to reduce greenhouse gas emissions. We see the transition to a carbon-free society as a new growth opportunity and actively work to realize it. We also disclose the appropriate information on climate change while reducing the risk of climate change to local communities.
  5. Compliance with environment-related laws and regulations
    The Group complies with environment-related laws and regulations, and other requirements agreed by the Group.
  6. Governance and management system
    The Group regularly reports to the Board of Directors on the status of environmental initiatives to work steadily toward a sustainable society.
  7. Stakeholder engagement
    The Group announces the environmental policy within the companies and strives to enlighten and promote environmental conservation activities through constructive dialogue with stakeholders outside of the Group.

Green procurement guidelines

  1. As part of our environmental policy to reduce adverse environmental impact, the Group promotes the purchase of goods and services that are conducive the reduction of adverse environmental impact, and contributes to the creation of sustainable local communities.
  2. Basic stance
    1. When purchasing a product or service, take account of the following viewpoints to help reduce the environmental impact, in addition to price and quality:
      • Can this product/service be used for a long time?
      • Is a good part of the product made from recycled materials or made of reused parts?
      • Can the product be reused or recycled?
      • Is it easy to process or dispose of this product as waste?
      • Is a reduction of the total costs, including the disposal cost, expected?
    2. Consider whether the product/service is necessary and purchase a minimum quantity.
    3. Use the product/service properly for a long time.

Human rights policies

As stated in the Group Management Philosophy, Kyushu Financial Group believes it is of utmost importance to conduct business activities considering human rights to contribute to “developing alongside the region and realizing a vibrant local community” and established the “Kyushu Financial Group Human Rights Policies” (hereafter, “the policies”).

  1. Respect for international human rights standards
    Kyushu Financial Group respects and protects human rights in accordance with international norms on human rights such as the Universal Declaration of Human Rights, the Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and Children’s Rights and Business Principles.
  2. Scope of application
    The policies shall apply to all officers and employees of Kyushu Financial Group. The Group will also ask customers and suppliers (business partners) to conduct their corporate activities in consideration of human rights.
  3. To officers and employees
    Kyushu Financial Group prohibits all forms of discrimination and harassment on the basis of race, nationality, age, gender, sexual orientation, gender identity, origin, social status, creed, religion, disability, or physical characteristics. The Group will strive to ensure that there is no discrimination in the promotion process and will respect the right of employees to organize and bargain collectively in accordance with the law. We will also respect the human rights of all officers and employees and act to provide a comfortable workplace for all officers and employees by striving to reduce long working hours and providing fair working wages without tolerating forced labor.
  4. To customers
    Kyushu Financial Group will protect and respect the privacy of our customers and strive to avoid discrimination in providing services. The Group will identify in advance the negative impact that our financial products and services may have on the human rights of our customers and work to prevent and improve such implications. We will also work with our customers to resolve human rights issues and strive to avoid investing in or financing projects that may harm human rights.
  5. To suppliers (business partners)
    Kyushu Financial Group will also require its suppliers to respect human rights and not infringe on them. If human rights violations occur at suppliers, the Kyushu Financial Group will take appropriate action and encourage the supplier to take reasonable measures as well.
  6. Management and promotion system
    The Kyushu Financial Group’s human rights policies are determined by the Board of Directors and reviewed as necessary. The status of initiatives related to the human rights policies is periodically reported to the Sustainability Promotion Committee and the Board of Directors. To ensure that each and every officer and employee has correct knowledge and deep understanding of human rights and that the policies are taken into account and effectively implemented in all business activities, we will work on a wide range of human rights enlightenment, such as conducting human rights enlightenment training for officers and employees.
  7. Remedial action
    The Kyushu Financial Group has established a framework for consultation on human rights. The Group accepts complaints and consultation requests from customers regarding their personal information or the concerns they feel about the implications that our financial products and services might have on human rights. A whistleblowing desk is in place for human rights violations such as discrimination and harassment against officers and employees, and we respond appropriately to anonymous consultations.
  8. Dialogue with stakeholders
    Kyushu Financial Group is committed to continuous dialogue with relevant stakeholders to improve and enhance its efforts to respect human rights.

Stainability management and promotion system

The Group is strengthening its system for managing and promoting SDG-related initiatives aiming to realize sustainable local communities and value creation for itself.
In terms of management, a Sustainability Promotion Committee chaired by the President and Representative Director has been established to report on the progress of SDG-related initiatives every three months. Individual matters are decided after thorough discussion and deliberation by the Group Management Council. These reports and resolutions are submitted to the Board of Directors at least once a year and are subject to their oversight.
In terms of promotion, we established a Sustainability Management Office at the headquarters and Sustainability Promotion Office at Higo Bank and Kagoshima Bank, enabling close cooperation among group companies and promoting SDGs group-wide.

Sustainability promotion system