Participation in Initiatives and Third-Party Evaluation

The United Nations Global Compact (UNGC) is a voluntary initiative in which companies and organizations act as good members of society and participate in the creation of a global framework for sustainable growth by demonstrating responsible and creative leadership. We became a signatory in January 2018. We support the 10 principles of the UNGC in four categories (human rights, labor, environment, and anti-corruption) and work toward making them happen.

The Task Force on Climate-related Financial Disclosures (TCFD), which was set up by the Financial Stability Board (FSB), an international organization of major countries' central banks and financial regulators, presents a framework for disclosures relating to climate change. In May 2019, Fuyo Lease expressed its support for the recommendations set out in the final report of the TCFD and is preparing to make the required disclosures.

RE100 is a global initiative run by the Climate Group, an international NGO in partnership with CDP. Member companies commit to, and publish, a target of 100% renewable energy use in their businesses by 2050. Fuyo Lease became a member in September 2018, announced targets of 50% renewable energy use by 2024 and 100% by 2030, and is taking action to make them happen.

In February 2018, we became a supporting member of JCLP, a coalition of companies working toward a sustainable, zero-carbon society, and an executive member in December 2018. As well as engaging in our own zero-carbon initiatives, we are involved in a broad range of activities that address climate change, such as developing and providing solutions that will help the transition to a zero-carbon society, collaborating with global networks, and making policy recommendations.

The Ellen MacArthur Foundation (EMF) is an international initiative whose purpose is to accelerate the transition to the circular economy. We became a member of the foundation in November 2020 to acquire knowledge of the circular economy and collaborate with other companies and research organizations.

J-CEP is a new business co-creation partnership in which companies aiming to realize a sustainable society work to promote a circular economy in collaboration with residents, governments, universities and other organizations.
We have been a member of J-CEP since its inception in October 2021.

The Principles for Financial Action for the 21st Century were formulated as the policy recommendation for financial institutions seeking to fulfill their roles and responsibilities in forming a sustainable society. Fuyo Lease signed the principles in June 2016.

The Ministry of the Environment launched this program in October 2021 to promote decarbonization of tenant buildings, etc. In November of the same year, we endorsed the program. The program aims to promote the decarbonization of tenant buildings by communicating the needs of tenant companies to building owners through the formulation of the "Leading Tenant Action Policy," which outlines the decarbonization initiatives of tenant companies, etc., and by soliciting and publicizing companies, municipalities, etc., that support the policy.

The FTSE4Good Index Series is a set of stock indexes operated by FTSE Russell of the London Stock Exchange Group to measure the performance of companies that demonstrate strong ESG practices.

The FTSE Blossom Japan Index is a set of stock indexes operated by FTSE Russell of the London Stock Exchange Group to measure the performance of Japanese companies that demonstrate strong ESG practices. The FTSE Blossom Japan Index is one of five ESG indexes selected by the Japanese Government Pension Investment Fund (GPIF) to be tracked in order to manage its ESG investment.

The FTSE Blossom Japan Sector Relative Index, created by global index provider FTSE Russell, reflects the relative environmental, social and governance (ESG) performance of Japanese companies in each sector. The index is designed to be sector neutral. In order to facilitate the transition to a low-carbon economy, only those companies with particularly high greenhouse gas emissions that are recognized for their improvement efforts by the TPI Management Quality Score are included.

MSCI Japan Empowering Women Index (WIN) is a stock index operated by MSCI Inc. to target Japanese companies in various industries that are promoting and maintaining gender diversity. The GPIF also manages its ESG investment by tracking this index.

Jointly developed by S&P Dow Jones Indices LLC. and Japan Exchange Group, Inc., the S&P / JPX Carbon Efficient Index is designed to adjust the constituent weightings based on the companies' performance in terms of carbon emissions per unit of revenue and environmental information disclosure level. The GPIF also manages its ESG investment by tracking this index.

The SNAM Sustainability Index is an index managed based on the results of corporate ESG surveys conducted jointly by SOMPO Risk Management Inc. and Integrex Inc. Companies whose total ESG scores exceed a specified level are included in the index. Fuyo Lease has been included in the index since 2012.

DBJ Environmental Rating is a rating system developed by the Development Bank of Japan, Inc. for the rating companies based on the level of their environmental management practices. Based on this, companies can receive loans from the bank at preferential interest rates according to their respective ratings. For 11 consecutive years, from fiscal 2011 to fiscal 2019, and fiscal 2021 to fiscal 2022, the Company obtained the highest-level ranking in the DBJ Environmental Rating for its exceptionally advanced environmentally conscious approach.

In fiscal 2019, in the bond category of the first ESG Finance Awards Japan, in which the Ministry of the Environment recognizes financial institutions that are actively engaged in ESG finance and companies engaged in environmentally sustainable management, we received the Gold Prize (Minister's Prize, the Ministry of Environment) in recognition of our efforts in the Fuyo 100% Renewable Electricity Declaration Support Program. In addition, the Fuyo Zero Carbon City Support Program received a Special Award (Selection Committee Chairman Award) in the indirect finance category at the third annual ESG Finance Awards Japan in fiscal 2021 for its uniqueness and novelty.

It is a survey conducted by Nikkei Inc. from 2019 that evaluates initiatives that contribute to the SDGs through business and lead to improved corporate value on a 10-point scale from 0.5 to 5 stars.
In the 4th Nikkei SDGs Management Survey in 2022, our company was recognized as a 4-star company (a deviation between 60 and 65) in the overall evaluation.

The Fuyo Lease Group Integrated Report 2020 received the Excellence Award in the Environmental Reporting category of the 24th Environmental Communication Awards hosted by the Ministry of the Environment and Global Environmental Forum.

The "Kurumin" accreditation mark is issued to companies that have implemented the General Employers Action Plan under the Act on Advancement of Measures to Support Raising Next-Generation Children and whose initiatives have been recognized. In fiscal 2017, we received a special certification known as the Platinum Kurumin, which is awarded to Kurumin-certified companies that have demonstrated a higher level of commitment.

Eruboshi is a system launched by the Minister of Health, Labour, and Welfare for certifying companies that are advancing excellent initiatives to promote the advancement of women in the workplace, based on the Act on the Promotion of Female Participation and Career Advancement in the Workplace. We received Eruboshi certification in fiscal 2021 after meeting specific criteria (recruitment, continuous employment, ways of working including working hours, percentage of female managers, diverse career paths) for certification as an excellent company promoting the advancement of women in the workplace.

This index was created in 2016 for the first time in Japan by the voluntary association "work with Pride" to assess organizations' efforts to make workplaces welcoming to LGBTQ+ and other sexual minorities.
We were certified as "Bronze" in the "PRIDE Index 2022."

Health and productivity management means to regard and strategically implement employee health management from a business point of view.
Fuyo Lease was recognized as one of the enterprises under the 2023 Certified Health and Productivity Management Organization Recognition Program, a scheme run by the Ministry of Economy, Trade and Industry (METI) and Nippon Kenko Kaigi.

The program provides certification from the Minister of the Environment for business operators conducting excellent efforts who have achieved notable results or are engaged in notable efforts in relation to ESG leases (leases for introducing decarbonization equipment that meets standards set by the Ministry of Environment).
The Company was certified as a business operator engaged in excellent efforts in fiscal 2023.

This is an award system for excellent initiatives on reporting the current implementation status and plans for global warming action, such as environmental activities, environmental education, and local contribution activities.
Fuyo Lease was awarded ‘Grand Prize’ under the evaluation of the Chiyoda City Global Warming Action Plan Initiate for 2021.