Nanto Bank : Materialities and the SDGs (253kb)

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Materialities and the SDGs

Materialities (Priority Issues)

In its concern with adding depth to our Group's financial businesses, the Board of Directors has discussed the sustainability issues that require global responses. They have identified the materialities and specific themes shown below to be addressed as priorities, taking into consideration their importance to our stakeholders and our Group businesses.

Please note that these materialities are subject to revision as necessary.

Materiality determination process

STEP	Identification of issues	STEP	Analysis and evaluation		STEP	Identification of most
1	2	of identified issues	3	significant issues
In addition to the issues determined by such international frameworks as the	It then identified the issues among these	The Management Committee and
United Nations Global Compact, ISO 26000, the Global Reporting Initiative,	that are of particular relevance to the Nanto	Board of Directors drew on the
and the SDGs, the Group identified an extensive range of environmental, social,	Bank Group and analyzed and evaluated	results of a Step 2 evaluation report
and governance issues we can expect to arise in the future. These begin with a	their importance from two perspectives:	to discuss the opportunities, risks,
basic sustainability policy, developed in consideration of the Group's operating	their impact on our stakeholders and their	and priority themes to be addressed,
environment with reference to the Global Top 10 Risks announced by the World	financial impact on our Group.	and concluded by identifying the
Economic Forum and the Japanese government's SDGs Action Plan.				materialities.

Review in response to changes in the external environment

External environment

Risks and opportunities of concern for the Group

Risks Reduction in corporate value due to delays in addressing climate change

Global warming

OpportunitiesE Opportunities

Environment

Increased demand for capital investment funds for decarbonization

Creation of business opportunities by taking advantage of abundant forest resources

Normalization of slow economic		Risks
	Risks
growth and low interest rates
		Opportunities
Accelerated transition to
digital operations		Opportunities
Declining working-age
S	Risks
population, falling birthrate
and aging population	Opportunities
	Society

Sluggishness of the local economy due to the prolonged coronavirus pandemic

Decrease in the number of businesses, including those closing due to the aging of management, and the resulting exodus of labor to other prefectures

Increased opportunities to provide customers with services such as M&A and asset succession

Increase in business opportunities taking advantage of favorable tourism resources

Changes in banking transactions due to diversified lifestyles, changing life choices, and the growing digital native generation

Increased opportunities to provide asset succession support and other services against the backdrop of affluent living standards

Increased job mobility

Opportunities

Opportunities

Increased opportunities to provide products and services to meet needs stemming from a high rate of homeownership

Increased opportunities to provide products and services to meet various bequest and donation needs

Dissemination of	Risks
work-style changes

Opportunities

Opportunities

Progress in diversification

Organizational rigidity due to homogenization of staff

Acquisition of human resources with high expertise ( e.g., IT, risk management, etc.) Opportunities for women who still have potential to enter the workforce and play active roles

Prolonged coronavirus		Risks Increased market risk in an uncertain business environment
G
pandemic

IncreasedGovernance geopolitical risks

14 Nanto Report 2022, the integrated report of Nanto Bank

Organizational overview Business model	Risks and	Strategies and
and external environment	opportunities	resources allocation

Business plan and the SDGs

Nanto Mission

Realization of

Pursuit of regional development

sustainable

Fostering of vitality-creating human resources

communities and

Protability enhancement

Solving

societies

regional and

SDG

social issues

objectives

17 goals and

169 targets

SDG policy

Priority action goals

We will work proactively to realize a sustainable regional community and to solve social problems facing our region by implementing the three facets of our Mission: regional development, fostering of vitality-creating human resources, and improvement of profitability.

Among the 17 SDGs, the Nanto Bank Group has identified seven priority goals that are particularly relevant to our areas of operation and business strategies, and to our objectives for sustainable preservation of our regional environment.

Materialities (Priority Issues)

Risks

Risks

Risks

Risks

Opportunities

Opportunities

Opportunities

Opportunities

Risks

Opportunities

Opportunities

Risks

Opportunities

Risks

Risks

Negative impact on customers' business and financial conditions of tighter regulations and changes in the tax system

Increased credit costs due to damage to the value of real estate collateral

Increased credit costs due to the impact of technological innovation and market changes on customers' business and financial conditions

Suspension of business and increased risk due to damage to sales offices

Increased demand for infrastructure investment funds for disaster prevention measures

Increase in wind and flood disasters and environmental changes, accompanied by emerging opportunities to offer insurance products for disaster preparedness and financial products as well as for services related to environmental protection

Increased business opportunities associated with the creation of new jobs through partnerships with local public bodies and outside organizations

Increased demand for funds and opportunities to provide new services by supporting customers' cash management and core businesses

Concerns about retirement funds due to the decline in the working-age population and the aging of society and declining birthrates

Increased opportunities to provide various products and services to prepare for longevity

Increased opportunities to provide new products and services through the use of digital technologies

Impediments to recruitment due to delays in responding to changes in work styles Expansion of business fields prioritizing diverse experiences and advanced expertise

Decrease in the value of the Bank's assets due to borrowers' deteriorating financial conditions

Decrease in the value of the Bank's assets due to fluctuating interest rates, foreign exchange rates, stock prices, etc.

Responses to the Effects of Accelerating Climate Change

Realizing Sustainable Growth of Our Regional Economy

Realizing a Convenient,

Prosperous Society

Cultivating a Healthy Corporate Culture with Participation of Diverse Human Resources

Preparing for Increasingly Varied and Complex Risks

Fiscal 2022 Action Plan

P.16

17

Nanto Report 2022, the integrated report of Nanto Bank 15