Environmental Conservation

bird

Help build ecologically sustainable communities
Reduce carbon dioxide emissions

Basic Idea

Environmental Policy

Contributing to Society through Our Core Business

Environmental Load Reduction

Climate Change
(Information Disclosure in line with TCFD Recommendations)

Basic Idea

We published the above environmental policy to guide our efforts toward environmentally conscious business activities. The policy describes our awareness of the environmental issues as a financial instrument operator, and our determination to use and leave finite natural resources for our children, assuming our social responsibility. We have also endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TFCD recommendations). We now apply the TFCD recommendations in our disclosures.

Environmental Policy

1．Complying with laws and regulations

We shall comply with environment-related laws and regulations, and with our own environmental policy.

2．Generating positive environmental impacts through financial service

We shall lower the environmental risk of society by supporting the business engaged in environmental protection through the provision of financial products and services.

3．Lowering negative environmental impacts caused by workplaces

Recognizing that our business activities may generate negative environmental impacts such as using natural resources and producing waste, we shall work to protect environment by recycling, and by using natural resources and energy efficiently.

4．Promoting environmental awareness

We shall educate our employees about the environment to promote meaningful environmental action.

5．Disclosing environmental information

We shall actively disclose information about our environmental impacts and communicate with local communities and customers to encourage their engagement in environmental management.

Contributing to Society through Our Core Business

The Ministry of the Environment registered Tokai Tokyo Securities as an issuance supporter for a green bond.

Effective August, 2018, Tokai Tokyo Securities became a registered issuance supporter for a green bond program at the Green Bond Issue Promotion Platform under the auspice of the Ministry of the Environment. Business entities and municipalities that issue green bonds can reduce the cost to be paid to external parties and the administrative work burden they bear. We will facilitate the growth of the green bond market by underwriting and placing the bond and contribute to the environment and society through our business operations.

※ Green Bond is designed to fund only the projects addressing environmental issues, and the issuance amount has rapidly increased lately against the backdrop of rising environmental awareness across the world.

Handling of Products that Contribute to Society

To help solve global social problems such as poverty, lack of medical resources, and global warming, we are handling bonds that contribute to
society, such as water bonds and green bonds.

Reduction of environmental pollution load

To use the finite resources efficiently and pass them on to the next generation, we, the Group, are working on solutions to alleviate environmental pollution. Our endeavors include, for instance, renewal to energy-efficient office equipment for lighting and air-conditioning and conversion of
PC and other OA hardware to power-saving types. Further, we changed our company vehicles to fuel-efficient light automobiles and hybrid cars.
(In June 2017, we started using two fuel cell vehicles, MIRAI, powered by hydrogen battery.)

graph1 — Current Usage of Company Cars ～Breakdown～

Forest conservation and biodiversity

We continue to actively use products that have received FSC certification, which certifies appropriate forest management. We are also working to disseminate information and raise awareness about forest conservation, biodiversity, and ecosystem conservation through the introduction of Rainforest Alliance certified products in our head office’s cafe and the distribution of the column “The Whereabouts of Plastic Thrown into the Sea” to Group employees.

Climate Change (Information Disclosure in line with TCFD Recommendations)

Governance

We, as a financial instruments business operator, recognize the gravity of the environmental issue including climate change as it relates to financial service. So, we laid down an environmental policy as a guiding principle, and we are implementing corporate actions that reflect our concern about the environment. We formulate such corporate actions after the deliberation and reporting at our management committee and board of directors meetings.

Awareness of risks and opportunities

		Risk	Opportunity Benefit
Risk to be Triggered by Changes	Policy and Regulatory Changes	We may suffer the increased cost of operation if the government tightens CO2 emission reduction requirements or the related regulatory constraints.	Cut the energy cost by installing energy-saving equipment. Expand the scope of operation by taking on new business opportunities like a green investment. We pursue such a new business opportunity by taking advantage of our solid geographical market in Chubu and unique alliance strategy implemented with strong regional banks.
	Impact on Market	Due to market fluctuations caused by the sudden transition to decarbonizing society, we may incur losses from our trading operation.	We expect to see the increased customer inflow to stocks, bonds, and the investment fund with the underlying asset of stocks or bonds issued by the firms aggressively coping with climate change. Also, we expect to see an appreciation of the fund betting on society’s decarbonization trend. We can grow the assets under custody facing the impacted market.
	Technology	We may lose earning opportunities if we cannot differentiate ourselves from our peers or offer products and services that suit changing industrial structure and customer needs to be prompted by decarbonization technology advancement.	The refined competence of financial product development and enhanced sales capability should enable us to deliver adequately the products and services suitable to customer needs arising from climate change. At the same time, the individual and corporate customers to be awakened to the decarbonizing society would find it meaningful to invest in climate change-related financial products. Thus, we would recognize the decarbonization trend as a viable opportunity.
	Reputation	Our reputation may be ruined if we fail to meet the stakeholders’ rising expectations for our climate change actions and related disclosures.	We would be able to win a desirable corporate reputation by supporting the companies engaging in low-environmental loading businesses or the operations for the environmental loading reduction.
Physical Risk to be Triggered by Natural Disaster		Massive typhoons, heavy rainfalls of disaster magnitude, and other natural disasters attributable to abnormal weather may deteriorate our business as it may; cause damage to properties of both our clients and the Company, disrupt our daily operation due to the employees who suffer injuries, accrue the cost to cope with the resulting situations and worsen our financial performance.

Greenhouse Gases Emission

（Unit tCO2：ton(s) of CO2）

	FY 2018	FY 2019	FY 2020
SCOPE1	871	781	399
SCOPE2	2,866	2,701	2,590

(Note)

The Group entities subject to the above CO2 emission monitoring include the following;

Tokai Tokyo Financial Holdings, Tokai Tokyo Securities, Tokai Tokyo Research Center, Tokai Tokyo Asset Management, Tokai Tokyo Investment, Tokai Tokyo Academy, Tokai Tokyo Service (for the operations of the afore-mentioned entities at the premises of Nihonbashi Takashimaya-Mitsui Building, Kayabacho First Building and Midland Square), Tokai Tokyo Business Services, TT Digital Platform and CHEER Securities)

Energy Consumption Intensity

The said intensity is an index used to indicate the level of energy consumption efficiency, and the Act on Rational Use of Energy states that a party that uses energy in engaging in business is expected to reduce the index by 1% or higher per year as a target to work toward attainment. We have achieved the target and are working on further reduction.

	2017	2018	2019	2020
Intensity	0.000162	0.0001576	0.0001590	0.0001604
Comparison with the previous FY (%)	97.0	97.3	100.9	100.9

※ The results shown above are those of Tokai Tokyo Securities, our primary subsidiary.

※ All the above numeric values were the calculation results made by the formula stipulated in Japan’s Act on Rational Use of Energy.

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