Basic Stance

The ZENKOKU HOSHO Group considers addressing climate change as a material strategic management issue. We believe that in Japan, a country prone to natural disasters such as typhoons, the impact of physical risks caused by climate change would be significant for housing exposed to such disasters. We have appropriately identified climate change risks we face and business opportunities that capture such risks, and discussed how the risks and opportunities associated with climate change will impact us. Going forward, the ZENKOKU HOSHO Group will continue to analyze risks and opportunities associated with climate change to further enhance the quality and quantity of its disclosure in accordance with the TCFD Recommendations.

Governance

As a company that contributes to the development of local communities, we acknowledge the importance of global environmental conservation, and promote a business style that coexists with the environment. We consider responding to climate change as an important issue under management strategy, and aim to achieve a sustainable future by resolving environmental issues through our credit guarantee business.
The Corporate Planning Division, which is responsible for promoting sustainability, makes reports and have discussions with the Management Meeting and the Risk Management Committee on the assessment and management of risks and opportunities associated with climate change as well as the status of initiatives to resolve issues. These matters are deliberated at the Management Meeting and reported to the Board of Directors on a yearly basis in principle and whenever it is necessary. After receiving the report, the Board of Directors provides supervision of and instructions on the status of initiatives to respond to climate change.

• The Board of Directors oversees the status of measures and initiatives related to climate change countermeasures, etc., and gives instructions as necessary
• The Management Meeting and Risk Management Committee deliberate climate change countermeasures, manage the status of related initiatives, and comprehensively manage climate-related risks, reporting to the Board of Directors once a year in principle or as needed
• The division for promoting sustainability assesses risks and opportunities associated with climate change, formulates climate change countermeasures, and manages the status of the Group's initiatives, reporting to the Management Meeting and Risk Management Committee
• Each division in the headquarters, Head Office and Branches, Offices, and subsidiaries work toward the realization of specific measures, reporting progress to the division for promoting sustainability

Strategy

As a company contributing to the development of local communities, we regard environmental conservation efforts as a material management issue, and carry out initiatives to resolve environmental issues through our credit guarantee business, aiming to realize a sustainable future. We have identified risks and opportunities associated with climate change which are assumed to be highly relevant to our business activities and have qualitatively assessed and analyzed them as described below.

Risks and opportunities affecting the ZENKOKU HOSHO Group

Scenario analysis

Physical risks

For physical risks, we conducted a scenario analysis on an increase in expenses related to credit services by estimating the impact of major flooding on the value of collateral real estate and the repayment capacity of customers, targeting properties of our guarantees of housing loans, in light of scenarios such as the IPCC's RCP8.5.

Scenario analysis for physical risks

Risk management

ZENKOKU HOSHO recognizes that climate change risks have an important impact on our management. The Risk Management Division, which is the division responsible for overseeing risk management, is working with the Risk Management Committee to establish a system to centrally manage risks related to climate change within an integrated risk management framework.

Indicators and targets

In order to realize a decarbonized society, ZENKOKU HOSHO has set a target of reducing greenhouse gas emissions by 50% from FY2014/3 levels by 2030, and reaching net-zero emissions by 2050.
We aim to achieve our reduction targets through such means as switching sales vehicles to electric vehicles, and switching the power used at our offices to renewable energy provided by electric power companies.

Greenhouse gas emissions

（Unit: t-CO2）