Non-financial Information Index

Environmental Data

Category			FY2020	FY2021	FY2022	FY2023
Greenhouse gas emissions (t-CO₂)	Scope 1^*1		114	110	106	95^*12
	Scope 2^*2		6,243	4,884	4,267	3,701^*12
	Scope 3 (1. Purchased goods and services)^*3		92	85	83	78
		(2. Capital goods)^*4	7,413	8,632	4,974	12,006^*12
		(3. Fuel- and energy-related activities)^*5	1,121	1,122	1,084	1,109
		(5. Waste generated in operations)^*6	25	25	26	38
		(6. Business travel)^*7	64	64	135	201
		(7. Employee commuting)^*8	-	295	379	700
		(15. Investment and loan portfolio)^*9	Please refer to "Initiatives to Address Climate Change (Response to TCFD Recommendations)."
Direct energy consumption^*1	City gas (thousand ㎥)		20	19	13	10
	Heavy oil / Kerosene (kl)		5	5	6	8
	Gasoline / Light oil (kl)		24	23	26	23
Indirect energy consumption^*2	Electricity (thousand kWh)		13,052	12,794	12,160	12,602
	Percentage of renewable energy-driven electricity		0%	21%	23%	26%
	Vapor (GJ)		50	0	0	0
	Hot water (GJ)		1,515	1,499	1,281	904
	Cold water (GJ)		5,481	6,112	6,469	6,729
Wastes^*10	Amount (t)		168	173	160	151
	Recycled amount (t)		123	123	110	119
	Recycling ratio (%)		73%	71%	68%	79%
Amount of printing paper purchased (t)^*11			50	47	45	43

Scope 1 emissions and direct energy consumption cover Aozora’s domestic bank offices (Head Office, Fuchu Annex, and all branches; the same applies below).
In principle, Scope 1 covers the actual measured usage amounts calculated based on the Ministry of the Environment’s List of Calculation Methods and Emission Factors in the Calculation, Reporting, and Publication System.
For emissions associated with the use of company vehicles in Japan, data on annual fuel consumption for company vehicles was calculated based on the Ministry of the Environment’s emissions unit database (the Ministry of the Environment and the Ministry of Economy, Trade and Industry’s Emissions Unit Database for Calculating Greenhouse Gas Emissions, etc. through a Supply Chain (Ver. 3.4); the same applies below).
Scope 2 emissions and indirect energy consumption cover Aozora’s consolidated operations (excluding consolidated subsidiaries with no offices; the same applies below).
In principle, Scope 2 covers the actual measured usage amounts calculated based on the adjusted emission factor and other factors from the List of Emission Factors by Electric Power Company under Japan’s Act on Promotion of Global Warming Countermeasures.
Of the consolidated subsidiaries, the emissions of GMO Aozora Net Bank were calculated based on its equity ratio of 50% before FY2022 and 100% in FY2023.
Scope 3 Category 1 covers the amount of printing paper and other paper purchased by Aozora’s domestic bank offices, calculated based on the Ministry of the Environment’s emissions unit database.
Scope 3 Category 2 covers the amount of capital investment made by Aozora Bank on a non-consolidated basis (domestic bank offices and overseas representative offices; the same applies below), calculated based on the Ministry of the Environment’s emissions unit database.
Scope 3 Category 3 covers the electricity, hot water, and cold water consumption for Aozora’s consolidated operations, calculated based on the Ministry of the Environment’s emissions unit database.
Scope 3 Category 5 covers wastes generated by Aozora’s domestic bank offices, calculated based on the Ministry of the Environment’s emissions unit database.
Scope 3 Category 6 covers the length of the business travel and public transportation costs of Aozora Bank on a non-consolidated basis, calculated based on the Ministry of the Environment’s emissions unit database.
Scope 3 Category 7 covers the commuting expenses (train and bus) of Aozora Bank on a non-consolidated basis, calculated based on the Ministry of the Environment’s emissions unit database.
Scope 3 Category 15 covers the FY2022 corporate loans and project finance of Aozora Bank on a non-consolidated basis and overseas subsidiaries, calculated based on the Partnership for Carbon Accounting Financials (PCAF) database.
Wastes cover Aozora’s domestic bank offices, excluding general industrial wastes in branch offices.
The amount of printing paper purchased covers Aozora’s domestic bank offices.
With regard to greenhouse gas emissions in FY2023, we have obtained independent third-party assurance from Deloitte Tohmatsu Sustainability Co., Ltd. for Scope 1, Scope 2, and Scope 3 Category 2.

Aozora Bank, Ltd. FY2023 Greenhouse Gas Emissions Data
There are no activities applicable to Category 4 and 8 to 14 of Scope 3 due to the nature of the business.

Social Data

Employee data (non-consolidated)

Category		FY2019	FY2020	FY2021	FY2022	FY2023
No. of employees		1,928	1,933	1,966	1,980	1,964
	Male	1,024 (53%)	1,034 (53%)	1,056 (54%)	1,068 (54%)	1,049 (53％)
	Female	904 (47%)	899 (47%)	910 (46%)	912 (46%)	915 (47％)
Temporary employees		142	125	117	127	121
Locally hired overseas staff^*1		31	39	43	38	41
Employee composition	New grad hires	58%	58%	59%	60%	61%
Employee composition	Mid-career hires	42%	42%	41%	40%	39%
Average age		43.1	43.3	43.4	43.8	44.1
	Male	44.1	44.0	43.9	44.3	44.5
	Female	41.9	42.5	42.8	43.2	43.5
Average length of tenure (years)		14.6	14.9	15.1	15.7	16.1
	Male	14.5	14.5	14.6	15.2	15.5
	Female	14.8	15.4	15.8	16.4	16.8
Average annual salary (1,000 yen)		7,930	8,089	8,232	8,696	8,873
Annual salary gap (male =100%)^*2		-	-	-	66.6%	65.0%
	Regular employees	-	-	-	66.1%	65.3%
	Non-regular employees	-	-	-	53.4%	55.8%
No. of new grad hires		61	64	70	51	53
	Male	39 (64%)	45 (70%)	41 (59%)	27 (53%)	32 (60%)
	Female	22 (36%)	19 (30%)	29 (41%)	24 (47%)	21 (40%)
No. of mid-career hires		63	46	37	33	30
	Male	45 (71%)	32 (70%)	26 (70%)	24 (73%)	18 (60%)
	Female	18 (29%)	14 (30%)	11 (30%)	9 (27%)	12 (40%)
Male/female ratio (new grad and mid-career hires)	Male	68%	70%	63%	61%	60%
Male/female ratio (new grad and mid-career hires)	Female	32%	30%	37%	39%	40%
New grad/ mid-career ratio	New grad hires	49%	58%	65%	61%	64%
New grad/ mid-career ratio	Mid-career hires	51%	42%	35%	39%	36%
Retention of new grads 3 years after employment		87%	87%	95%	97%	87%
No. of retirees (non-mandatory retirement)		53 (2.8%)	47 (2.4%)	47 (2.4%)	49 (2.5%)	57 (2.9%)
Female managers ratio^*3		12.0%	11.8%	12.5%	13.3%	14.2%
Non-Japanese managers ratio^*1		2.4%	2.9%	2.9%	2.8%	1.3%
Mid-career managers ratio		39.9%	42.5%	43.7%	49.6%	53.9%
Employees‘ monthly average overtime hours^*4		8.9	10.3	11.8	11.3	10.6
Days of paid leave used (annual average)		15.6	13.3	14.4	15.2	16.1
Employees with disabilities (as of June when submitting a report to authorities)	No. of employees	25	29	33	35	36
	Employment ratio	2.0%	2.2%	2.4%	2.5%	2.6%
No. of childcare leave users^*5		41	61	55	60	77
	Male	14 (47%)	24 (65%)	22 (58%)	33 (91%)	39 (90%)
	Female	27 (100%)	37 (100%)	33 (100%)	27 (108%)	38 (100%)
Female reinstatement ratio after childcare leave		100%	100%	100%	100%	100%
No. of unpaid nursing leave users		0	1	1	1	0
No. of paid nursing leave users		15	19	19	23	29
No. of employees suffering work-related accidents		14	6	3	11	12
No. of applicants for secondary employment^*6		-	16	31	37	42
Training hours per employee^*7		-	30.8	32.5	33.4	28.2
Total of training hours^*7		-	59,533	63,951	66,135	55,308
Total of training participants^*7		-	5,184	11,393	19,201	24,075
Training cost per employee (1,000 yen)^*8		35.9	26.3	27.3	80.4	51.8

Data of employees of domestic and overseas Group companies, excluding GMO Aozora Net Bank
Number of employees includes those seconded from other companies to the Bank, but does not include those seconded from the Bank to other companies.
Calculated using the below method based on the stipulations of the Act on the Promotion of Women’s Active Engagement in Professional Life
Male and female wage differences = Female average annual wage ÷ male average annual wage, average annual wage = total wages ÷ number of employees
Please refer to page 98 of the Annual Report 2024 for the main factors behind the difference in male and female wages.
Managers refer to the total of general managers and group managers
Non-statutory overtime hours of employees except those in supervisory or managerial positions
Child leave ratio = number of employees who used child leave during the fiscal year under review (a) ÷ number of employees whose spouse has given birth during the fiscal year under review (b) rounded down to one decimal point
Since (a) above includes employees whose children were born before the fiscal year in question but who took new child leave in the fiscal year in question, the take-up rate may exceed 100%.
Application for secondary employment registration started in FY2020
Data has been compiled since FY2020.
Includes cost for external instructors and usage costs for self-development support system

Status of female employees

	July 2020	July 2021	July 2022	July 2023	July 2024
1. Executive officers	2 (9.1%)	4 (16.7%)	5 (18.5%)	5 (22.7%)	4 (21.1%)

	March 2020	March 2021	March 2022	March 2023	March 2024
2. General managers	11 (11.3%)	11 (11.5%)	11 (9.6%)	10 (9.4%)	7 (7.1%)
3. Group managers	64 (12.1%)	64 (11.8%)	71 (13.2%)	71 (14.1%)	70 (15.8%)
4. Total of (2+3)	75 (12.0%)	75 (11.8%)	82 (12.5%)	81 (13.3%)	77 (14.2%)
5. Deputy managers	105 (33.3%)	107 (33.5%)	123 (37.1%)	115 (37.3%)	117 (39.3%)
6. Female employees	904 (47.0%)	899 (46.5%)	910 (46.3%)	912 (46.1%)	915 (46.6%)

Social contribution

Category	FY2019	FY2020	FY2021	FY2022	FY2023
CSR expenses (million yen)^*1	-	35	35	23	31
No. of participants in volunteer activities^*2	-	-	248	175	203
No. of participants in Basic Banking Seminar (in Sophia University)^*3	382	382	367	328	354

Includes monetary equivalent of donated stockpiles
Started to be calculated in FY2021
Aozora-sponsored seminars for Sophia University. The Bank’s officers and employees offer seminars (14 sessions) every fiscal year.

Governance

Corporate governance
(status of activity of the Board of Directors and each committee)

Category		FY2019	FY2020	FY2021	FY2022	FY2023
Composition of directors and the Board of Directors meeting	No. of persons	8	8	8	8	8
	No. of outside directors	4	4	4	4	4
	No. of female directors	1	1	1	2	1
	No. of Board of Directors meetings held	14	15	15	15	13
	Average attendance ratio of the Board of Directors meeting (%)	100%	100%	100%	100%	99%
Nomination and Remuneration Committee	No. of Nomination and Remuneration Committee meetings held	7	7	6	7	6
Nomination and Remuneration Committee	Average attendance ratio of the Nomination and Remuneration Committee (%)	100%	100%	100%	100%	100%
Audit and Compliance Committee	No. of Audit and Compliance Committee meetings held	7	6	6	6	6
Audit and Compliance Committee	Average attendance ratio of the Audit & Compliance Committee (%)	100%	100%	100%	100%	100%

Compliance

Category		FY2019	FY2020	FY2021	FY2022	FY2023
No. of cases opened by the Aozora Hotline (whistle-blower program)	Total	13	7	10	13	16
	Internal contact point	7	4	4	7	7
	External contact point	6	3	6	6	9
No. of compliance incidents	Cease and desist notice by relevant government ministries and agencies	0	0	0	0	0
	Suspension of operation/business due to misconduct	0	0	0	0	0
	Criminal accusation due to an incident or an accident violating a law	0	0	0	0	0

Non-financial Information Index

Environmental Data

Social Data

Employee data (non-consolidated)

Status of female employees

Social contribution

Governance

Corporate governance (status of activity of the Board of Directors and each committee)

Compliance

Corporate governance
(status of activity of the Board of Directors and each committee)