Initiatives for Environmental Issues

The manifestation of climate change will lead not only to physical losses for the Group,

but also to lower service levels and damage to customers, resulting in lower earnings and higher credit-related costs. On the other hand, we will work to resolve the issue, as it could create business opportunities to meet customers' expectations as well as strengthen our business infrastructure by accelerating energy conservation measures and BCP measures.

Indicators and Targets

In accordance with the TCFD's recommendations, we will continue to analyze scenarios and, if necessary, estimate the financial impact and consider measures based on the results, and work to set indicators and targets.

Environmental Impact Data	2024/3	2025/3
Bunker A (KL)	0	1
City gas(ｍ³)	333,868	298,021
Electric power (Thousand kwh)	12,687	11,163
CO2 emissions(t-CO2)※4	5,798	5,672

(note)

1.The scope of aggregation is AIFUL and its domestic consolidated subsidiaries.

2.Prior year data has been retroactively adjusted due to a review of the calculation method to improve the accuracy of acquired data.

3.Figures for Bunker A are rounded down to the nearest whole number.

4.Emission coefficients are based on the applicable coefficients in the “Greenhouse Gas Emissions Calculation, Reporting and Publication System” based on the “Law Concerning the Promotion of the Measures to Cope with Global Warming”.

Promotion of card-less contracts

A pie chart showing online application rate is 97%.

More than 90% of unsecured loan applications are completed online and about 70% of new contracts are card less, and we are promoting paperless and environmentally friendly services by making credit card statements available online, etc.

Discontinuation of stores (unmanned stores) /
Discontinuation of ATMs

	2021/3	2022/3	2023/3	2024/3	2025/3
Unmanned stores	835	828	817	776	625
ATM	441	436	249	0	0

Cool Biz and Warm Biz initiatives

Since 2006, Muninova Group has been working on “Cool Biz and Warm Biz” activities to prevent global warming.

Environmentally friendly initiatives

Endorsement of COOL CHOICE

The Muninova Group endorses COOL CHOICE, a national campaign promoted by the Ministry of the Environment to prevent global warming.

In Progress	Under Consideration
Cool Biz / Warm Biz	Install solar power generation
Convert lighting equipment to LED at the headquarters and other major facilities
Renewal of air-conditioning facilities at the Head Office and Kusatsu Center
Centralized management of air conditioner operating hours

Efforts to Improve Work Efficiency

In April 2019, we launched RPA Project and began developing RPA throughout the Muninova Group.

We strive to reduce energy consumption, cut overtime hours, and improve work efficiency.

Details of initiatives: We have conducted automation of clerical work mainly in Office365.

We also plan to introduce RPA into an accounting system and consider integration with AI such as OCR.

Reduction results

Unit: hours

Period	Cumulative estimated reduction of working hours
2019/4～2020/3	11,617
2020/4～2021/3	11,209
2021/4～2022/3	6,793
Cumulative estimated reduction of working hours	29,619

Details of the Group's risks related to TCFD

Transition risks

Risk item	Indicator	Description	Assess- ment	Measure against the risk	Opportunity
Policy Laws and regulations Increase in carbon tax Energy-saving policies, GHG emission regulations Increase in renewable energy prices	Expenditure	Increase in infrastructure operating costs	Medium	Setting the targets of energy use and CO2 reduction	Reducing business activity costs by promoting energy-saving measures
Reputation Change in eputation in society and among investors	Capital	Decline in the support from customers Increased anxiety of stakeholders and worsened reputation Increased difficulty in securing human resources and decreased employee retention rate Increased difficulty in procuring funds Decline in stock prices	Medium	Disclosing information on climate change initiatives Clearly explaining them to investors	Receiving proper assessment from customers and stock and bond market

Physical risks

Risk item	Indicator	Description	Assess- ment	Measure against the risk	Opportunity
Acute Flood damage due to typhoons, torrential rains, etc.	Expenditure Revenue	Limited employee attendance due to public transportation shutdown Decline in customer service levels Increase in claims eligible for relief due to customers impacted by disaster Physical damage to our corporate group's facilities, etc. Direct Impact on Business Performance	Medium	Renewing the contingency plan Developing the support system of consultation services for customers impacted by disaster	Strengthening infrastructure by BCP Promoting the stabilization of customer service levels
Chronic Increase in average temperature Changes in precipitation and weather patterns	Expenditure Revenue	Increase in operating costs for air conditioning equipment in summer Drop in employee productivity, restriction on commuting, and deterioration of workplace comfort and safety Decline in customer service levels	Medium	Rebuilding a comfortable working environment	Enhancing productivity by improving a working environment