Data Related to SDGs

Environment

CO2 emissions (Unit: t-CO2)

	Measurement item	FY2018	FY2019	FY2020	FY2021	FY2022
SCOPE1	Gasoline, LPG, city gas, etc.	1,672	1,653	1,792	1,818	1,676
SCOPE2	Electricity	10,633	8,017	9,143	11,219	8,233
Subtotal		12,305	9,670	10,935	13,037	9,909
SCOPE3	Total for figures below	53,147	66,947	51,058	342,270	1,003,070
Category 1: Purchased items and services	Stationery, copy paper, subcontracting services, advertising, etc.	23,980	25,908	26,810	22,731	19,329
Category 2: Capital goods	Property, plant, equipment and intangible assets acquired in the relevant fiscal year	23,566	35,559	18,315	24,775	12,479
Category 3: Fuel and energy-related activities not included in SCOPEs 1 and 2	Gasoline, LPG, city gas, electricity	1,966	1,970	2,105	2,023	1,840
Category 4: Transport, delivery (upstream)	Postal fees	493	409	375	372	346
Category 5: Waste produced from business operations	Waste disposal fees	690	675	964	68	72
Category 6: Business trips	Business trips	564	559	559	560	555
Category 7: Commute by the employed	Commute	1,335	1,307	1,329	1,330	1,316
Category 12: Disposal of purchased goods	Disposal of bank books, PR items	553	520	601	369	173
Category 15: Investment	Listed stocks and corporate bonds	-	-	-	290,042	205,872
Category 15: Investment	Business loans (oil, gas and electricity)	-	-	-	-	761,088
Total		65,452	76,617	61,993	355,307	1,012,979

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. 3.2.
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]
From FY2021, we began using the measurement method proposed by PCAF in our calculations. The calculation uses the Group’s outstanding investments and loans at the end of the fiscal year, the latest CO2 emissions (consolidated emissions: Scope 1 and 2) and financial information disclosed by each company. In FY2022, the coverage ratio of our Group’s investments (based on market value) is 88.2%, and the data quality 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 covers the energy sector (oil, gas and electricity). The data quality by PCAF definition is equivalent to a score of 4.
In the future, we will continue our efforts to refine the calculation in Category 15. Please note that there is a possibility that the amount of CO2 emissions will increase or decrease due to the expansion of calculation targets and changes in calculation methods.

Energy consumption

	FY2018	FY2019	FY2020	FY2021	FY2022
Energy usage	237,419GJ	240,378GJ	254,685GJ	252,527GJ	223,859GJ

Track record for environmentally-friendly products

	End of FY2018	End of FY2019	End of FY2020	End of FY2021	End of FY2022
Balance of environmentally-friendly loans	¥111.0 billion	¥108.2 billion	¥114.9 billion	¥125.1 billion	¥141.1 billion

Social

Initiatives for regional revitalization

	FY2018	FY2019	FY2020	FY2021	FY2022
Number of successful business matchings	578 cases	336 cases	1,518 cases	3,013 cases	1,866 cases
Businesses supported by the Group for start-ups	296 cases	251 cases	254 cases	252 cases	387 cases
Companies supported by the Group for business succession	325 cases	301 cases	408 cases	706 cases	637 cases
Number of participants in finance classes	479 people	1,937 people	267 people	260 people	35 people^※
Donations to local ESG, SDGs	¥787.9 million	¥282.6 million	¥379.5 million	¥685.7 million	¥68 million

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

Diversity

Number of female employees ^※The Higo Bank, Ltd. and The Kagoshima Bank, Ltd.

	End of Mar. 2019	End of Mar. 2020	End of Mar. 2021	End of Mar. 2022	End of Mar. 2023
Female employees	1,716 persons	1,791 persons	1,851 persons	1,907 persons	1,903 persons
Female managers	340 persons（30.2％）	352 persons（31.4％）	341 persons（31.0％）	365 persons（32.3％）	384 persons（33.9％）
Female employees in management	39 persons（6.2％）	46 persons（7.2％）	50 persons（7.6％）	58 persons（8.7％）	58 persons（9.0％）

Human resource development

Status of training for skill development and self-development

	FY2018	FY2019	FY2020	FY2021	FY2022
Number of participants	9,464 persons	7,782 persons	6,210 persons	7,269 persons	18,400 persons
Number of training days	17,621 days	15,680 days	20,164 days	24,331 days	29,572 days
Number of training days per person	4.3 days/person	3.7 days/person	4.8 days/person	5.8 days/person	7.1 days/person
Training hours	140,968 hours	125,440 hours	161,312 hours	113,813 hours	145,997 hours
Training hours per person	34.7 hours/person	29.8 hours/person	38.6 hours/person	27.2 hours/person	35.3 hours/person
Annual total for training fees	¥363 million	¥300 million	¥102 million	¥137 million	¥144 million

Status of conducting DX Seminars

	FY2022
Number of participants	19 persons
Training hours/person	30 hours/person

DX Seminars: Regional DX Training Toward Exploration and Practice
The program has been held since FY2022 for developing digital talent. The program consists of 10 sessions of seminars and pragmatic workshops on new business concepts taught by instructors at the cutting edge, and the participants have opportunity to deepen their digital knowledge and skills by presenting DX-related new business ideas in a group setting at the final session.

Track record for support in acquiring qualifications

	FY2019	FY2020	FY2021	FY2022
Number of incentives granted	1,977 cases	1,688 cases	1,501 cases	2,482 cases
Total amount in incentives granted	¥6,174,600	¥10,003,100	¥10,566,000	¥19,248,489

Improving the working environment

	FY2018	FY2019	FY2020	FY2021	FY2022
Rate of employees’ utilization of parental leaves (male and female)	96.1％	100％	100％	100％	100％

Governance

Composition of the Board of Directors (as of the end of June 2023)

Composition of the Board of Directors

Attendance at Board of Directors' Meetings and Committee Meetings（FY2022）

		Board of directors （10inside directors, 5outside directors）	Audit and Supervisory Committee （2inside directors, 3outside directors）	Nominating and Remuneration Committee （2inside directors, 3outside directors）
Inside director	Sumihiro Matsuyama	○ Attendance at 8/12 meeting		○ Attendance at 4/4 meeting
	Yoshihisa Kasahara	○ Attendance at 12/12 meeting		○ Attendance at 4/4 meeting
	Eiichi Eto	○ Attendance at 12/12 meeting
	Norihisa Akatsuka	○ Attendance at 12/12 meeting
	Hiroyuki Tanaka	○ Attendance at 12/12 meeting
	Yasunari Iwatate	○ Attendance at 12/12 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 13/13 meeting
	Masahide Kitanosono （Audit and Supervisory Committee Member）	○ Attendance at 12/12 meeting	○ Attendance at 13/13 meeting
Outside director	Katsuaki Watanabe	○ Attendance at 12/12 meeting		○ Attendance at 4/4 meeting
	Yuji Nemoto	○ Attendance at 12/12 meeting
	Kenichi Sekiguchi^※ （Audit and Supervisory Committee Member）	○ Attendance at 11/12 meeting	○ Attendance at 12/13 meeting	○ Attendance at 2/2 meeting
	Katsuro Tanaka （Audit and Supervisory Committee Member）	○ Attendance at 12/12 meeting	○ Attendance at 13/13 meeting	○ Attendance at 4/4 meeting
	Yuko Tashima （Audit and Supervisory Committee Member）	○ Attendance at 11/12 meeting	○ Attendance at 13/13 meeting

Mr. Kenichi Sekiguchi was appointed as a member of the Nomination and Compensation Advisory Committee in December 2022. The number of meetings and the number of attendances shown are those after assuming office as a member of the Committee.