Materiality and Business Activities

Creating Impact Through Business Activities

Our Group has specified “Business Materiality,” which contributes to solving social issues through its business, and “Management Base Materiality,” which is necessary to carry out its business activities. Through the strategies set out in the Fourth Medium-Term Management Plan, our Group will advance initiatives to solve these issues and create both “social value” and “economic value.”
Our Group has clarified the relationship between materiality and strategy, and reviewed the impacts of business activities on stakeholders in addressing Business Materiality, organizing these as the Impact Pathway. With the aim of steadily strengthening our management base to maximize social impact as outlined in the Impact Pathway, we have also reviewed strategies and business activities related to Management Base Materiality, along with the outcomes generated by these initiatives.
By promoting these business activities, we will contribute to solving the issues faced by stakeholders and create social impact, thereby realizing sustainable local communities and enhancing corporate value.

What is the Impact Pathway?

It is a visualization of what results (output) our group’s business activities bring to our group and what changes and impacts (outcomes / social impact) they cause on stakeholders and society.

	Materiality	Business activities based on Social Issues Solution Strategy		Outputs - Direct Results of Activities -	Outcomes - Impact on Stakeholders -		Social impact - Social Change -
	Materiality			Outputs - Direct Results of Activities -	Stakeholders	Impacts	Social impact - Social Change -
Business Materiality	Support the growth of local industries	Escorted support for local businesses in which our Group is proactively involved	Seamless funding for sustainable growth	Number of financial support recipients and loan balances	Corporate customers	Improving profitability and productivity, strengthening management base, and expanding business	Expanding quantified contribution (added value) to the local economy Set as business objectives (social impact indicators)
			Support for smooth generational transition to strengthen business continuity	Number of business succession and M&A support recipients, fees and commissions		Maintaining employment, continuing business, and expanding business
			Support for managing chronic labor shortages from population decline	Human resources-related services, number of DX support recipients, and fees and commissions		Continuing business and enhancing productivity
			Demonstration of escorted support and consulting functions to help solve diversifying management issues	Number of clients for which various consulting solutions are provided, and fees and commissions		Improving profitability, strengthening the management base, and creating new business opportunities and employment
			Support for management improvement toward strengthening business continuity	Number of borrowers with improved credit standing and amount of debt		Improving profitability, continuing business, and maintaining employment
	Contribute to a safe and prosperous lifestyle	Supporting the adjustment for the Era of 100-Year Life	Support asset building for realizing goals and dreams of customers	Number of financial education programs, balance of assets under custody, and fees and commissions	Individual customers	Improving financial literacy and realizing asset building	Improvement of local residents’ affluence
		Supporting the adjustment for the Era of 100-Year Life	Support smooth asset succession to the next generation	Number of inheritance and asset succession supports provided and fees and commissions	Individual customers	Improving satisfaction of succeeding generations and households
		Contributing to building a base for living with safe, secure, and prosperous	Support for sustainable medical and nursing care services	Number of sustainable finance (social sector) support provided and amount of support	Corporate customers Local residents Local governments	Maintenance of local healthcare and reduction of medical and nursing care refugees
			Contributing to the maintenance of public infrastructure to suppors safe and secure living		Local governments Local residents	Resolution of aging public infrastructure issues
			Contributing to building safe and comfortable living infrastructure	Number of home purchase supports and amount of housing loans executed	Individual customers	Improvement in a sense of well-being with home ownership
			Contributing to building a secure and prosperous future	Number of educational funding support recipients and amount of educational loans executed	Individual customers	More opportunities for further education
	Contribute to decarbonized society and environment conservation	Supporting the transition to a carbon-free society and contributing to solving energy problems	Supporting business operators in the calculation and reduction of CO2 emissions	Number of decarbonization consulting support recipients, and fees and commissions	Individual and corporate customers Local residents Local governments Natural capital	CO2 emissions reduction of recipient companies	Reduction in environmental footprint
			Environmentally conscious investment and financing activities	Number of sustainable finance (environmental sector) support recipients and amount of support		Promoting efforts toward environmental conservation by recipient companies
			Supporting the creation of GX-related businesses			Expanding GX-related business
			Diffusion of renewable energy	Renewable energy power generation through electricity business		Increased opportunities to use renewable energy

	Materiality	Business activities based on Management Base Resilience Strategy		Key KPIs (FY2027 plan)	Outcomes
Management Base Materiality	Provide high-quality services to be chosen by customers consistently Strengthen management base for value creation	Add value through DX	Strategic utilization of generated AI and machine learning Upgrading offensive DX and defensive DX Developing human resources for DX Developing infrastructure that supports DX	Strategic DX investment (cumulative total for three years) ¥14.0 bn Number of banking app users 2.20 million people Rate of reduction in administrative workload at branches (compared to the fourth quarter of FY2024) -30.0% Human capital investment (cumulative total of 3 years) ¥3.0 bn Ratio of female employees in manager positions or higher 27.0% or more	Strategic utilization of data and AI to improve productivity Enhancing the value and convenience of channels Improving productivity by minimizing branch office operations
		Promote alliances	Wide-area collaboration with other financial institutions, and regional cooperation Industry-Academia-Government collaboration External business collaboration and capital utilization		Expansion of business areas Creation of new business opportunities Enhancing productivity Sharing and enhancing know-how
		Strengthen human capital and promote DE&I	Developing and securing human resources for value creation Promoting DE&I Creating a workplace environment where ensures well-being Advance employee engagement		Building a human resources portfolio Leveraging the strengths of individuals and organizations
		Enhancement of risk management	Advancement of RAF Management Enhancement of group risk management		Improving the transparency of business plans Enhancement of risk-return management Balancing profitability and financial soundness
		Capital management for corporate value improvement	Revision of shareholder return policy (Stable and sustainable increase in dividends per share) Appropriate management of owned capital		Financial stabilization Improving capital efficiency

Added value as a social impact indicator

Added value is used as an indicator to quantitatively measure social impact in “Support the growth of local industries,” which is one of the material issues.
Added value is generally used as an indicator to measure the additional value created by a company through economic transactions. Therefore, the aggregation of added value can be considered as additional value brought to society.
The social impact of our Group’s business activities is measured by calculating the added value of local companies that our Group has been proactively supporting in their growth.
The value-added amount is generally calculated using either the subtraction method or the addition method. Since the customer companies subject to measurement span a wide range of industries, we adopt the addition method (Bank of Japan method), which enables analysis of the processes in production or service activities where added value is generated.
Going forward, we will regularly measure the social impact of supporting the growth of local companies by calculating the value added.

Corporate Information

IR & SR
- Financial Results & Projections
- Shareholders Meeting

Sustainability / ESG Information

Financial Statements & Integrated Report / Financial Data（Annual Report）
- Financial Statements
- Integrated Report / Financial Data（Annual Report）