Data Related to SDGs

Environment

CO2 emissions (Unit: t-CO2)

	Measurement item	FY2019	FY2020	FY2021	FY2022	FY2023※
SCOPE1	Gasoline, LPG, city gas, etc.	1,663	1,792	1,818	1,676	1,559
SCOPE2	Market standards	8,100	9,143	11,219	8,233	9,341
SCOPE2	(Reference: Location standards)	(10,785)	(10,966)	(10,120)	(9,185)	(8,614)
Subtotal		9,763	10,935	13,037	9,909	10,900
SCOPE3	Total for figures below	66,965	51,058	342,270	5,133,488	5,607,505
Category 1: Purchased items and services	Stationery, copy paper, subcontracting services, advertising, etc.	25,908	26,810	22,731	19,329	21,183
Category 2: Capital goods	Property, plant, equipment and intangible assets acquired in the relevant fiscal year	35,559	18,315	24,775	12,479	17,215
Category 3: Fuel and energy-related activities not included in SCOPEs 1 and 2	Gasoline, LPG, city gas, electricity	1,988	2,105	2,023	1,840	1,794
Category 4: Transport, delivery (upstream)	Postal fees	409	375	372	346	378
Category 5: Waste produced from business operations	Waste disposal fees	675	964	68	72	58
Category 6: Business trips	Business trips	559	559	560	555	555
Category 7: Commute by the employed	Commute	1,307	1,329	1,330	1,316	1,316
Category 12: Disposal of purchased goods	Disposal of bank books, PR items	520	601	369	173	176
Category 15: Investment	Listed stocks and corporate bonds	-	-	290,042	205,872	211,731
Category 15: Investment	Business loans	-	-	-	4,891,506	5,353,099
Total		76,728	61,993	355,307	5,143,397	5,618,405

Scope of calculation: The Company, Higo Bank and Kagoshima Bank
The calculation of CO2 emissions is based on the GHG Protocol and uses the Ministry of the Environment’s Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain, Emission Intensity Database Ver.3.3.
The emission factors in Scope 2 are based on the emission factors by electric utility for the grid electricity of the project location (actual emission factors) as of the most recent date of the calculation.
Emissions of Scope 3, Categories 8, 9, 10, 11, 13, and 14 were zero.
Regarding Category 15
[Listed stocks and corporate bonds]
We used the Group's investment balance as of March 31, 2024 and most recent, disclosed data on investees at the time of calculation (CO2 emissions and financial information on a consolidated basis). The calculation ratio of our Group’s investments (based on market value) is 78.0%, and the data quality score by PCAF definition is equivalent to a score of 2.
[Business loans]
From FY2022, we began using the measurement method proposed by PCAF in our calculations. The calculation ratio of our Group's loans is 98.7%, and the data quality score by PCAF definition is equivalent to a score of 4.
In the future, we will promote disclosure through bottom-up analysis by supporting CO2 emission measurement, etc.
Scope 1.2.3 emissions for FY2023 are subject to third-party verification by the Japan Quality Assurance Organization.
Greenhouse Gas Emissions Verification Report (FY2023)

Energy consumption

	FY2019	FY2020	FY2021	FY2022	FY2023
Energy usage	240,378GJ	254,685GJ	252,527GJ	223,859GJ	195,445GJ

Track record for environmentally-friendly products

	End of FY2019	End of FY2020	End of FY2021	End of FY2022	End of FY2023
Balance of environmentally-friendly loans	¥108.2 billion	¥114.9 billion	¥125.1 billion	¥141.1 billion	¥170.8billion

Social

Initiatives for regional revitalization

	FY2019	FY2020	FY2021	FY2022	FY2023
Businesses supported by the Group for start-ups	251 cases	254 cases	252 cases	387 cases	363 cases
Companies supported by the Group for business succession	301 cases	408 cases	706 cases	637 cases	619 cases
Number of participants in finance classes	1,937 people	267 people	260 people	35 people^※	92 people
Donations to local ESG, SDGs	¥282.6 million	¥379.5 million	¥685.7 million	¥68 million	¥243.2 million

The event was held on a reduced scale due to the spread of novel coronavirus infection.

Matters Related to the Human Resource Development Policy

		FY2019	FY2020	FY2021	FY2022	FY2023
Number of participants (total)	Persons	7,782	6,210	7,269	18,400	15,659
Number of training days (total)	Days	15,680	20,164	24,331	29,572	22,053
Training hours (total)	Hours	125,440	161,312	113,813	145,997	176,426
Days per person	Days/Person	3.7	4.8	5.8	7.1	5.2
Training hours per person	Hours/Person	29.8	38.6	27.2	35.3	42.2
Annual training cost	Millions of Yen	300	102	137	144	199

The Group total includes the Company, Higo Bank, and Kagoshima Bank.
Various seminars held on holidays are also included in the calculations since FY2022.
Total number of training days (hours): number of participants × number of training days (× training hours per day)
Number of training days per person: number of training days (hours) / total number of employees

Matters Related to the Internal Environmental Development Policy

		Higo Bank	Kagoshima Bank	Group total	Higo Bank	Kagoshima Bank	Group total	Higo Bank	Kagoshima Bank	Group total
		FY2021			FY2022			FY2023
Number of new hires (new graduates)	Persons	95	141	237	81	123	204	78	133	211
Of which, number of female new hires	Persons	58	109	167	55	87	142	44	94	138
Percentage of female new hires	%	61.1%	77.3%	70.5%	67.9%	70.7%	69.6%	56.4%	70.7%	65.4%
Number of employees	Persons	2,184	2,126	4,312	2,170	2,098	4,270	2,180	2,020	4,205
Of which, number of female employees	Persons	1,037	915	1,953	1,047	922	1,970	1,058	943	2,005
Percentage of female employees	%	47.5%	43.0%	45.3%	48.2%	43.9%	46.1%	48.5%	46.7%	47.7%
Number of employees in management positions *1	Persons	869	918	1,787	875	891	1,766	911	938	1,850
Of which, number of female employees in management positions	Persons	223	198	421	236	200	436	274	255	530
Percentage of female employees in management positions	%	25.7%	21.6%	23.6%	27.0%	22.4%	24.7%	30.1%	27.2%	28.6%
Number of managers *2	Persons	355	308	663	348	299	647	348	314	662
Of which, number of female managers	Persons	44	14	58	46	12	58	52	33	85
Percentage of female managers	%	12.4%	4.5%	8.7%	13.2%	4.0%	9.0%	14.9%	10.5%	12.8%
Number of officers at Executive Officer level or above	Persons	28	26	75	26	27	74	30	27	78
Of which, number of female officers	Persons	1	2	4	1	2	4	2	2	6
Percentage of female officers	%	3.6%	7.7%	5.3%	3.8%	7.4%	5.4%	6.7%	7.4%	7.7%
Number of Directors	Persons	16	15	46	15	15	45	15	15	45
Of which, number of female Directors	Persons	0	1	2	0	1	2	1	2	4
Percentage of female Directors	%	0.0%	6.7%	4.3%	0.0%	6.7%	4.4%	6.7%	13.3%	8.9%
Years of service	Years	15.4	15.2	15.3	15.5	15.9	15.7	15.5	15.6	15.5
Of which, male’s	Years	17.4	17.5	17.5	17.5	18.1	17.8	17.4	17.9	17.6
Of which, female’s	Years	13.2	12.2	12.7	13.4	13.1	13.3	13.7	12.9	13.3
Engagement score *3	P	70	72	71	70	74	72	71	73	72
Male childcare leave acquisition rate *4	%	100%	100%	100%	100%	100%	100%	100%	100%	100%
Gender wage gap between full-time male and female employees *5	%	-	-	-	64.6%	53.0%	-	61.6%	55.2%	-
Youth turnover rate *6	%	-	-	-	21.7%	26.0%	-	20.8%	24.2%	-
Medical checkup percentage	%	100%	100%	100%	100%	100%	100%	100%	100%	100%
Percentage of employees who received specific health guidance	%	56.1%	85.5%	-	61.1%	83.3%	-	84.3%	84.0%	-
Reexamination percentage	%	96.8%	45.8%	-	98.6%	41.4%	-	97.8%	74.6%	-
Percentage of employees with high stress	%	6.5%	4.4%	-	6.9%	3.7%	-	8.5%	4.2%	-
Number of long-term absentees / employees on leave(physical health)	Persons	14	8	22	14	10	24	20	11	31
Number of long-term absentees / employees on leave(mental health)	Persons	32	26	58	37	18	55	34	24	58
Paid leave acquisition rate	%	74.6%	79.3%	-	83.1%	78.9%	-	83.3%	78.8%	-
Number of work-related incidents	Cases	25	11	36	25	14	39	30	11	41

The Group total includes the Company, Higo Bank, and Kagoshima Bank.

Employees in management positions: Employees in chief positions or above and managers.
Managers: Non-union employees at the manager level or above, regardless of title.
The Group uses "Wevox" from Atrae, Inc. for measurement.
Percentage of male employees who took childcare leave within the specified period after their spouses, who are eligible for the childcare leave system, gave birth.
Ratio of the average wage of full-time female employees to the average wage of full-time male employees
Youth turnover rate: Turnover rate of new graduate hires within five years of entering the bank

Governance

Composition of the Board of Directors (as of the end of June 2024)

Composition of the Board of Directors

Attendance at Board of Directors' Meetings and Committee Meetings（FY2023）

		Board of directors	Audit and Supervisory Committee	Nominating and Remuneration Committee
Inside director	Sumihiro Matsuyama	○ Attendance at 11/12 meeting		○ Attendance at 5/5 meeting
	Yoshihisa Kasahara	○ Attendance at 12/12 meeting		○ Attendance at 5/5 meeting
	Eiichi Eto	○ Attendance at 12/12 meeting
	Norihisa Akatsuka	○ Attendance at 12/12 meeting
	Hiroyuki Tanaka	○ Attendance at 2/2 meeting
	Yasunari Iwatate	○ Attendance at 2/2 meeting
	Kuniaki Matsumae	○ Attendance at 10/10 meeting
	Riichiro Tada	○ Attendance at 10/10 meeting
	Takahiro Kai	○ Attendance at 12/12 meeting
	Motohiro Kamimura	○ Attendance at 12/12 meeting
	Yuichi Tanabe （Audit and Supervisory Committee Member）	○ Attendance at 12/12 meeting	○ Attendance at 12/12 meeting
	Masahide Kitanosono （Audit and Supervisory Committee Member）	○ Attendance at 12/12 meeting	○ Attendance at 12/12 meeting
Outside director	Katsuaki Watanabe	○ Attendance at 12/12 meeting		○ Attendance at 5/5 meeting
	Yuji Nemoto	○ Attendance at 12/12 meeting
	Kenichi Sekiguchi （Audit and Supervisory Committee Member）	○ Attendance at 2/2 meeting	○ Attendance at 2/2 meeting	○ Attendance at 2/2 meeting
	Katsuro Tanaka （Audit and Supervisory Committee Member）	○ Attendance at 11/12 meeting	○ Attendance at 12/12 meeting	○ Attendance at 5/5 meeting
	Yuko Tashima （Audit and Supervisory Committee Member）	○ Attendance at 12/12 meeting	○ Attendance at 12/12 meeting
	Nobuya Suzuki （Audit and Supervisory Committee Member）	○ Attendance at 10/10 meeting	○ Attendance at 10/10 meeting	○ Attendance at 3/3 meeting

Hiroyuki Tanaka, Yasunari Iwatate, and Kenichi Sekiguchi retired as directors at the conclusion of the 8th General Meeting of Shareholders held on June 16, 2023, as their term of office ended. The numbers of meetings held and attended are the number of those held in the concerned fiscal year before their retirement.
Kuniaki Matsumae, Riichiro Tada, and Nobuya Suzuki were appointed as committee members in June 2023. The number of meetings held and number of meetings attended are those after their appointment.