SASB Index

The Aozora Group strives to enhance disclosure of non-financial information with the aim of strengthening its information delivery to and engagement with its stakeholders.
We have applied the SASB Standards released by the former U.S. Sustainability Accounting Standards Board (SASB)* for our information disclosure since FY2021. The standards set forth industry-specific sustainability issues that are highly likely to affect the financial performance of corporations. The table below shows a reference to the disclosure criteria for the “Commercial Banks (CB)” category as set forth in the SASB Standards and contains links to the relevant pages of the Bank’s Annual Report 2024. Since the majority of disclosure topics are identical to the items covered in the “Value Creation Foundation” section of the Annual Report 2024 (page 102 onwards), we believe continuing and improving information disclosure in accordance with the SASB Standards will be instrumental in increasing our corporate value. We will make efforts to expand our information disclosure and enhance corporate value by facilitating communication with stakeholders including investors.
Please note that since the SASB Standards set forth disclosure items mainly in accordance with laws and regulations of the United States, we disclose equivalent data based on laws and regulations in Japan for some metrics.

The U.S. Sustainability Accounting Standards Board (SASB), which operated the SASB Standards, merged with the International Integrated Reporting Council (IIRC), which operated the International Integrated Reporting Framework, to form the Value Reporting Foundation (VRF) in June 2021. The VRF was then merged into the IFRS Foundation, which establishes international disclosure standards for ESG information, in August 2022. The SASB Standards are now managed by the International Sustainability Standards Board (ISSB) under the IFRS Foundation.

Topic	Code	Accounting Metric	Response
Data Security	FN-CB-230a.2	Description of approach to identifying and addressing data security risks	The Aozora Group believes it is an important business issue to appropriately manage customer information and confidential information and to stably operate the information system. As such, we have developed a framework to ensure the proper protection of information assets as well as stable operation of the information system, and continue to take necessary measures. For detailed measures, please refer to the following: Cybersecurity (page 122 of the Annual Report 2024) System Risk Management (page 21 of the Annual Report 2024 (Financial and Corporate Data Section))
Financial Inclusion & Capacity Building	FN-CB-240a.1	(1) Number and (2) amount of loans outstanding eligible for programs designed to revitalize SMEs and develop communities	Since the “Number and amount of loans outstanding eligible for programs designed to revitalize SMEs and develop communities” in the SASB Index corresponds to the laws and regulations of the United States, we disclose equivalent data based on the laws and regulations in Japan. Loans to Small and Medium-Sized Enterprises (SMEs) (non-consolidated): 2,909.6 billion yen (page 130 of the Annual Report 2024 (Financial and Corporate Data Section))
Financial Inclusion & Capacity Building	FN-CB-240a.4	Number of participants in financial literacy initiatives for unbanked, underbanked, or underserved customers	Since the “unbanked, underbanked or underserved customers” in the SASB Index corresponds to the laws and regulations of the United States, we disclose equivalent data based on the laws and regulations in Japan. The Aozora Group provides learning opportunities for Sophia University students as a way to support the next generation in enhancing financial literacy. Aozora’s “Basic Banking Seminar” in collaboration with the Faculty of Economics at Sophia University: Attended by 354 students in FY2023 (page 128 of the Annual Report 2024)
Incorporation of ESG Factors in Credit Analysis	FN-CB-410a.1	Commercial and industrial credit exposure by industry	For details regarding credit exposure by industry, please refer to the following: Breakdown of year-end credit risk exposure balance by area, industry and residual period, as well as category (pages 158–159 of the Annual Report 2024 (Financial and Corporate Data Section))
Incorporation of ESG Factors in Credit Analysis	FN-CB-410a.2	Description of approach to incorporation of environmental, social, and governance (ESG) factors in credit analysis	The Aozora Group makes credit decisions by conducting verification from a perspective of environmental and social issues in accordance with the Investment and Lending Policies regarding Environmental & Societal Issues. For details, please refer to the following: Investment and Lending regarding Environmental & Societal Issues (pages 80–81 of the Annual Report 2024) Initiatives for the Equator Principles
Business Ethics	FN-CB-510a.2	Description of whistle-blower policies and procedures	The Aozora Group has a whistle-blower program which enables whistle-blowers to directly report conduct that violates or may violate laws and internal rules to in-house and outside channels. For details, please refer to the following: Whistle-blower Program (page 120 of the Annual Report 2024)
Systemic Risk Management	FN-CB-550a.2	Description of approach to incorporation of results of mandatory and voluntary stress tests into capital adequacy planning, long-term corporate strategy, and other business activities	One of the most important challenges for the Aozora Group is increasing capital efficiency while securing financial soundness. As such, the establishment of a proper capital management system is one of our top priorities. For details, please refer to the following: Risk Appetite Framework (pages 12–13 of the Annual Report 2024) Comprehensive Risk Management (page 15 of the Annual Report 2024 (Financial and Corporate Data Section)) Capital Management System (pages 15–16 of the Annual Report 2024 (Financial and Corporate Data Section))

Code	Activity Metrics	Response
FN-CB-000.A	(1) Number and (2) value of checking and savings accounts by segment: (a) retail and (b) small business	Balance of deposits by depositor (non-consolidated) Corporate: 708.1 billion yen Retail: 3,365.1 billion yen Public sector: 121.1 billion yen Financial institutions: 848.5 billion yen For details, please refer to the following: “Balance of Deposits by Depositor” (page 128 of the Annual Report 2024 (Financial and Corporate Data Section)).
FN-CB-000.B	(1) Number and (2) value of loans by segment: (a) retail (b) small business, and (c) corporate	Balance of loans (non-consolidated) Balance of loans (total): 3,880.6 billion yen Loans to small and medium-sized enterprises (SMEs): 2,909.6 billion yen Consumer loans outstanding: 10.1 billion yen For details, please refer to the following: “Balance of Loans”, “Loans to Small and Medium-Sized Enterprises (SMEs)” and “Consumer Loans Outstanding” (pages 129–130 of the Annual Report 2024 (Financial and Corporate Data Section)).