ESG Management Policy

Group ESG Management Policy

The Shinsei Bank Group has established "Group ESG Management Policy" to clearly stipulate the basic views and future direction of the Group's initiatives pertaining to environmental and societal issues. This policy has been positioned as a basic policy and the starting point for the formulation of our management strategies. We are aware that, in order to pursue the kinds of sustainable growth opportunities that are required for the realization of our management principles, it is essential, as part of our social responsibility as a corporate group, that we contribute to the building of a sustainable society.

G: Corporate Governance

Basic views, guidelines and internal control have been stipulated in our Corporate Governance Report.

S: Social Issues

Basic views:

We believe that human resources are the most important element for the Group as we engage in financial businesses. The Group's human resources are the source of our innovation and the competitiveness we require to achieve sustainable growth amidst fiercely competitive market conditions. We provide our employees with our all-out support, fostering a working environment that facilitates flexible working styles in order to provide appealing workplaces and enable people of diversified backgrounds from gender, age, nationalities and all other aspects to fully demonstrate their potential and achieve sustainable Group growth. We have established the "Group Human Rights Policy" in order to clarify the Group's respect to the human rights of all people. The Group is now able to meet the financial needs in society that conventional financial services have been unable to satisfy, by creating new opportunities for people to access financial services. The Group shall strive to provide easy-to-understand information to enable customers to ascertain their own financial needs in an appropriate manner. When providing information, we vow to prioritize customers' needs first and foremost and provide them with optimal financial products and services.

Corporate Philanthropy:

In order to act as a responsible corporate citizen in accordance with our "Policy for Corporate Philanthropic Initiatives," the Group is actively committed to contributing to society and is aiming to become a banking group that earns the trust of society. Also, through societal contribution, the Group aims to nurture human resources able to contribute to the sustainable development of society through strengthening teamwork among employees that transcends the boundaries of Group companies and creating networks connecting the Group with communities.

E: Environmental Issues

Global environmental issues such as climate change are very critical issues relating to the realization of a sustainable society, and we are aware that such issues are also important management issues for us in our pursuit of ESG management. From the perspective of ESG management, environmental issues represent business risks, while at the same time also provide significant business opportunities. The Group will therefore mobilize all of our capabilities as a financial services provider to help tackle environmental issues. Furthermore, we will actively pursue investment and lending opportunities contributing to the expansion of renewable energy use.

Promotion of ESG Investment and Lending:

When making investment and loans, the Group will actively involve itself in transactions where the recipients of our investments or loans, or the projects operated by these recipients, contribute to the solution of societal and environmental issues. In pursuing ESG investment and lending, we aim to enhance the sustainability of the Group's revenue-growth opportunities through contributing to the creation of a sustainable society.

Investment and Lending to Specific Segments:

Based on our awareness that tackling environmental and social issues in a sincere manner will lead to the realization of our management principles, we deem it to be a managerial risk for Group companies to, in the course of their business activities, engage in business transactions with companies that do not respond to environmental and societal issues in an appropriate manner. Consequently, when conducting our business, we will assess cases based on considerations relating to environmental and societal issues as well as economic rationality in an appropriate manner. The Group has identified transactions with businesses such as those listed below as representing serious environmental and societal risks and any further investment or lending transactions involving such businesses shall, in principle, be banned:

Types of transactions which shall be banned in principle

  • Investment and lending transactions connected with anti-social forces;
  • Investment and lending transactions connected with the violation of laws and regulations or aimed at illegal acts or evasion or circumvention of laws;
  • Investment and lending contrary to public order or morals;
  • Investment and lending to companies producing cluster bombs;
  • Investment and lending to coal-fired thermal power plants

Note: Although further investment and lending to coal-fired thermal power plants shall not be made in principle, in the case of ultra-supercritical pressure coal-fired thermal power plants(*) or power plants with the same or higher levels of efficiency, a careful assessment shall be made of the power generation efficiency of the power plant concerned. In addition to technologies used to reduce greenhouse gas emissions, and other considerations pertaining to each individual power plant, with reference to guidelines such as OECD Arrangement on Officially Supported Export Credits and in full consideration of the situations in each country and international conditions relating to coal-fired thermal power plants.

  • (*)An ultra-supercritical pressure coal-fired thermal power plant is defined as falling into either of following power plant groups:
  • 1.A power plant with a steam pressure of 240 bars or higher and a steam temperature of 593°C or higher.
  • 2.A power plant with a CO2 emission volume of below 750g per kWh.

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