Environment

Response to Climate Change

The J Trust Group has identified climate-related risks and opportunities as outlined below and is taking appropriate actions.

Type of Risk/Opportunity	Description
Risks	Transition Risk	[Banking Business] Risk of being subject to regulatory requirements from supervisory authorities regarding environmentally responsible financial services (e.g., green finance), in response to increasing focus on climate change issues.
Physical Risk	[Debt Management and Collection Business] Risk of declining collection performance due to temporary suspension of collection activities in disaster-affected areas. Risk of an increase in defaulted loans due to deterioration in borrowers’ economic conditions. [Real Estate Business] Risk of decline in property value due to damage to properties held or intended for sale. Risk of losses arising from changes to construction plans (e.g., delays) or cancellation of projects under development or planned. Risk of rising material costs or difficulty in transportation due to damage to production areas or logistics routes for construction materials. Risk of damage to managed rental properties. Risk of harm to nearby residents or pedestrians caused by falling or detached signage or installations on managed properties. [Across All Businesses] Risk of business disruption due to damage to operational bases, resulting in system outages.
Opportunities	[Banking Business] Leveraging greater agility and flexibility compared to megabanks to actively engage in environmental conservation initiatives, particularly in Southeast Asia and island regions that are highly vulnerable to climate change and environmental impacts. [Across All Businesses] The Group operates a wide range of businesses, including banking, securities, credit guarantee, consumer finance, and debt servicing, as well as real estate, system development, and investment businesses. Japan and Southeast Asia, where the Group operates, are particularly susceptible to climate change impacts, leading to active efforts in environmental protection and disaster mitigation. By leveraging the diverse expertise and know-how across its business portfolio, the Group is well-positioned to respond flexibly and effectively to these challenges.

Type of Risk/Opportunity

Description

Risks

Transition Risk

[Banking Business]

Risk of being subject to regulatory requirements from supervisory authorities regarding environmentally responsible financial services (e.g., green finance), in response to increasing focus on climate change issues.

Physical Risk

[Debt Management and Collection Business]

Risk of declining collection performance due to temporary suspension of collection activities in disaster-affected areas.
Risk of an increase in defaulted loans due to deterioration in borrowers’ economic conditions.

[Real Estate Business]

Risk of decline in property value due to damage to properties held or intended for sale.
Risk of losses arising from changes to construction plans (e.g., delays) or cancellation of projects under development or planned.
Risk of rising material costs or difficulty in transportation due to damage to production areas or logistics routes for construction materials.
Risk of damage to managed rental properties.
Risk of harm to nearby residents or pedestrians caused by falling or detached signage or installations on managed properties.

[Across All Businesses]

Risk of business disruption due to damage to operational bases, resulting in system outages.

Opportunities

[Banking Business]

Leveraging greater agility and flexibility compared to megabanks to actively engage in environmental conservation initiatives, particularly in Southeast Asia and island regions that are highly vulnerable to climate change and environmental impacts.

[Across All Businesses]

The Group operates a wide range of businesses, including banking, securities, credit guarantee, consumer finance, and debt servicing, as well as real estate, system development, and investment businesses.
Japan and Southeast Asia, where the Group operates, are particularly susceptible to climate change impacts, leading to active efforts in environmental protection and disaster mitigation.
By leveraging the diverse expertise and know-how across its business portfolio, the Group is well-positioned to respond flexibly and effectively to these challenges.

CO₂ Emissions Performance and Reduction Targets

The J Trust Group is committed to reducing greenhouse gas (GHG) emissions generated through its business activities as part of its response to climate change, including global warming.
In alignment with the Paris Agreement adopted in 2015, which sets a global long-term goal of limiting the increase in average global temperature to well below 2°C above pre-industrial levels (with efforts to limit the increase to 1.5°C), the Group aims to reduce its GHG emissions (Scope 1 and Scope 2) by FY2030 compared to FY2025 levels.

CO₂ Emissions (Unit: tCO₂ )
	FY2023	FY2024	FY2025
Scope1	5,529	5,935	10,869
Scope2	151	198	207
Total (Scope 1 & 2)	5,680	6,133	11,076
YoY Change	-	+7.98%	+80.58%

Scope of Calculation

Scope 1: J Trust Co., Ltd.
Scope 2: J Trust Co., Ltd. Headquarters Building (calculated based on total usage of the contracted office space)

Notes

The year-on-year increase in FY2024 was primarily due to the expansion of contracted office space during the fiscal year.

The increase in FY2025 was mainly attributable to further expansion of office space and an increase in the number of company vehicles.

Environmental Initiatives

The J Trust Group is committed to reducing greenhouse gas emissions and energy consumption through its business operations and social contribution activities.
In addition, the Group supports international frameworks such as the Paris Agreement, as well as climate-related laws, regulations, and policies including Japan’s Act on Promotion of Global Warming Countermeasures and the Energy Conservation Act, and responds appropriately to these initiatives.