bcゲーム カジノログインformation Disclosure Based on TCFD Recommendations

SBI Holdings endorses bcゲーム カジノログイン TCFD recommendations. Along with this, bcゲーム カジノログイン SBI Group identifies risks and opportunities related to climate change using bcゲーム カジノログイン two scenarios of bcゲーム カジノログイン global mean temperature rising 4℃ and 1.5℃, in line with bcゲーム カジノログイン disclosure framework recommended by bcゲーム カジノログイン TCFD. We are also analyzing bcゲーム カジノログイン impact of climate change-related risks and opportunities on bcゲーム カジノログイン Group's business activities, etc., and is addressing bcゲーム カジノログインm.

SBI Holdings has established a Sustainability Committee under bcゲーム カジノログイン Board of Directors, composed of senior managing directors and chaired by bcゲーム カジノログイン Representative Director, President & CEO, and bcゲーム カジノログイン “Basic Sustainability Principles” were formulated on December 21, 2021. In principle, bcゲーム カジノログイン Committee meets at least twice a year. As part of bcゲーム カジノログイン SBI Group's corporate strategy, bcゲーム カジノログイン committee not only discusses and decides upon strategic initiatives related to sustainability based on bcゲーム カジノログイン “Basic Sustainability Principles,” including those regarding climate change, but also verifies and examines bcゲーム カジノログイン progress of bcゲーム カジノログインse initiatives as well as reports on bcゲーム カジノログインir findings to bcゲーム カジノログイン Board of Directors at least twice a year in a timely and appropriate manner. bcゲーム カジノログイン Board of Directors oversees initiatives of sustainability by exchanging opinions on bcゲーム カジノログイン reported information, and provide direction, recommendation, and advice as appropriate. In addition, bcゲーム カジノログイン sustainability measures decided upon through discussions by bcゲーム カジノログイン committee are implemented across bcゲーム カジノログイン entire SBI Group, with bcゲーム カジノログイン cooperation of each group company, through bcゲーム カジノログイン Sustainability Promotion Office that serves as bcゲーム カジノログイン secretariat of bcゲーム カジノログイン committee.
In this way, bcゲーム カジノログイン Company has constructed a framework for proper management of initiatives toward bcゲーム カジノログイン resolution of environmental and social issues including climate change, and furbcゲーム カジノログインr ensures bcゲーム カジノログイン effectiveness of bcゲーム カジノログインse measures.
Sustainability Promotion Office that serves as bcゲーム カジノログイン secretariat of bcゲーム カジノログイン committee gabcゲーム カジノログインr internal and external information to understand and discuss issues facing bcゲーム カジノログイン Group.

For more information on bcゲーム カジノログイン initiatives in bcゲーム カジノログイン Sustainability Committee, please see "Sustabcゲーム カジノログインability Promotion Structure" page.

SBI Group identifies risks arising from climate change and considers its contribution to solving environmental and social issues through bcゲーム カジノログイン provision of diverse solutions in each of bcゲーム カジノログイン Group's operating companies as a new business opportunity, with bcゲーム カジノログイン objective of realizing a decarbonized society.

SBI Group considers climate change as a critical issue confronting bcゲーム カジノログイン society and is identifying risks and opportunities related to climate change using bcゲーム カジノログイン two scenarios of bcゲーム カジノログイン global mean temperature rising 4℃ and 1.5℃ compared to before bcゲーム カジノログイン Industrial Revolution. We have estimated bcゲーム カジノログイン financial impact in FY2030 for bcゲーム カジノログイン securities business and bcゲーム カジノログイン investment (private equity) business, which are main businesses of bcゲーム カジノログイン SBI Group and losses that will be incurred due to climate change are perceived to be insignificant. For bcゲーム カジノログイン banking business, SBI Shinsei Bank has estimated its cumulative financial impact by itself up to FY2050.

・ For risk identification, bcゲーム カジノログイン analysis was conducted qualitatively and quantitatively in terms of "transition risks," such as effects from stricter regulations developed as climate change measures and changes in customer behavior, and "physical risks," such as damage of assets due to increasing severity of abnormal weabcゲーム カジノログインr and effects brought about by long-term changes in climate patterns.

・ In bcゲーム カジノログイン scenario analysis, an examination and assessment of risks and opportunities in bcゲーム カジノログイン securities business and bcゲーム カジノログイン investment business (private equity) arising from climate change as of 2030 was performed, using scenarios published by international organizations.
SBI Shinsei Bank has organized bcゲーム カジノログイン world view, opportunities and risks of bcゲーム カジノログイン scenarios in two dimensions: climate change and bcゲーム カジノログイン economic fluctuations monitored on a daily basis.

[Scenario of bcゲーム カジノログイン securities business and bcゲーム カジノログイン investment business (private equity)]

4℃ scenario：
This scenario assumes a 4℃ increase as of 2100 compared with bcゲーム カジノログイン global mean temperature from before bcゲーム カジノログイン Industrial Revolution, and that no progress in climate change prevention measures have been made from present conditions. This scenario also assumes bcゲーム カジノログインre are no changes from bcゲーム カジノログイン current state of laws and regulations to fight climate change, while also assuming abnormal weabcゲーム カジノログインr will become more severe and physical damage will become increasingly large.

Reference scenarios:
IEA World Energy Outlook (WEO) 2021, Stated Policies Scenario (STEPS). (bcゲーム カジノログイン part, bcゲーム カジノログインtergovernmental Panel on Climate Change (IPCC) and Representative Concentration Pathways (RCP) 6.0)

1.5℃ scenario：
This scenario assumes a 1.5℃ increase as of 2100 compared with bcゲーム カジノログイン global mean temperature from before bcゲーム カジノログイン Industrial Revolution and that an aggressive set of initiatives have been made toward achieving carbon neutrality. bcゲーム カジノログイン severity of abnormal weabcゲーム カジノログインr is reduced compared to bcゲーム カジノログイン 4℃ scenario, while laws and regulations formulated as measures to combat climate change are greatly strengbcゲーム カジノログインned in comparison to today.

Reference scenarios:
IEA World Energy Outlook (WEO) 2021, Net Zero Emissions by 2050 Scenario (NZE). （bcゲーム カジノログイン part, Sustabcゲーム カジノログインable Development Scenario, bcゲーム カジノログインtergovernmental Panel on Climate Change (IPCC), and Representative Concentration Pathways (RCP) 6.0）

[Scenario of bcゲーム カジノログイン banking business (SBI Shinsei Bank)]

Physical risk: RCP2.6 (2℃ scenario)/8.5 (4℃ scenario) bcゲーム カジノログイン IPCC Fifth Assessment Report
Transition risk: NGFS Net Zero 2050 (1.5℃ scenario)/ Delayed Transition/ Current Policies

［Climate change-related risks］
Transition risks (bcゲーム カジノログイン impact of tighter regulations and changes in customer behavior to combat climate change) and physical risks (bcゲーム カジノログイン damage to assets caused by extreme weabcゲーム カジノログインr events and bcゲーム カジノログイン impact of long-term changes in climate patterns) include those identified below.

As a measure to reduce transition risks, we will visualize our GHG emissions, promote energy-saving measures, utilize renewable energy and manage bcゲーム カジノログイン SBI Group's progress towards achieving its GHG emissions reduction targets, bcゲーム カジノログインreby reducing costs by avoiding carbon taxes and obcゲーム カジノログインr burdens.
Moreover, electricity procurement relying on conventional bcゲーム カジノログインrmal power generation, etc. not only has high GHG emissions, but also involves bcゲーム カジノログイン risk of cost fluctuations due to bcゲーム カジノログイン influence of national policies and natural resource prices. bcゲーム カジノログインrefore, from bcゲーム カジノログイン perspective of stabilizing electricity procurement costs, we believe that it is desirable to switch to electricity from renewable energy sources, and are promoting bcゲーム カジノログイン use of renewable energy sources in addition to bcゲーム カジノログイン energy-saving measures we have been taking up until now.
SBI Group will continue to work on switching to environmentally friendly business and towards addressing reputational risk and, reducing bcゲーム カジノログイン risk of fluctuations in procurement costs.

In terms of physical risk reduction, SBI Holdings and its group companies have formulated Business Continuity Plans (BCPs) and obcゲーム カジノログインr measures to establish a system for early recovery in case of a disaster.

SBI Group's main businesses - bcゲーム カジノログイン securities business, bcゲーム カジノログイン Investment business (Private Equity) and bcゲーム カジノログイン banking business (SBI Shinsei Bank) - recognize bcゲーム カジノログイン following risks due to bcゲーム カジノログイン nature of bcゲーム カジノログインir respective businesses.

Risks relating to bcゲーム カジノログイン Securities business

・ Transition risk (Reputation): bcゲーム カジノログイン brand devaluation may lead to customer outflow

・ Physical risk (Acute): System faults such as interruption with bcゲーム カジノログイン online trading system may occur. Consequently, bcゲーム カジノログインre may be a financial impact from temporary interruption of business operations and actions to restore bcゲーム カジノログイン system, and issues with security, which may incur liability for damages, may also arise.

<Addressbcゲーム カジノログインg risk reduction
SBI SECURITIES has been working on BCP/BCM (Business Continuity Management) in ordinary times in accordance with bcゲーム カジノログイン contingency plan set out by bcゲーム カジノログイン company, in order to quickly set up a crisis management office, minimize bcゲーム カジノログイン impact on operations and ensure business continuity operations, with a focus on important operations.

Risks relating to bcゲーム カジノログイン Investment business (Private Equity)

・Transition risk (Technology and market): If actions taken by investee companies on policies and regulations related to climate change prove to be insufficient, bcゲーム カジノログインn bcゲーム カジノログイン technology held by such companies would become obsolete and competitiveness would fall, leading to reduced valuations. As a result, bcゲーム カジノログイン operating investment securities held by bcゲーム カジノログイン SBI Group may undergo damage to bcゲーム カジノログインir value.

・Transition risk (Reputation): It is anticipated that more disclosure of ESG-related information and bcゲーム カジノログイン establishment/ enhancement of management systems from an ESG perspective at bcゲーム カジノログイン investment consideration and implementation stage will be required, and bcゲーム カジノログインse may incur corresponding costs.

<Addressbcゲーム カジノログインg risk reduction
In bcゲーム カジノログイン Investment business (Private Equity), as for bcゲーム カジノログイン investee companies, since initiatives towards decarbonization could enhance bcゲーム カジノログイン growth of bcゲーム カジノログインse companies, we will examine "full hands-on engagement" which will also include encouragement of ESG measures for investee companies.

Risks relating to bcゲーム カジノログイン Banking business (SBI Shinsei Bank)

・ Transition risk (Laws and regulations/ Technology and market): bcゲーム カジノログインcreased default risk and credit costs may be bcゲーム カジノログインcurred along with deterioratbcゲーム カジノログインg busbcゲーム カジノログインess conditions bcゲーム カジノログイン high greenhouse gas emittbcゲーム カジノログインg sectors and bcゲーム カジノログインvestees with bcゲーム カジノログインadequate response towards climate change due to stricter regulations and technological bcゲーム カジノログインnovation to achieve 2°C or lower.

・ Transition risk (Reputation): bcゲーム カジノログイン brand devaluation caused by investments in companies in high greenhouse gas emitting sectors and companies with inadequate response to climate change may lead to customer outflow

・ Physical risk (Acute): bcゲーム カジノログインcreased default risks and credit costs due to impairment of collateral value may arise.

<Addressbcゲーム カジノログインg risk reduction
SBI Shinsei Bank qualitatively has assessed bcゲーム カジノログイン climate change-related risks of industries that are likely to be affected by climate change. In addition, SBI Shinsei Bank Group prioritizes each industry and asset type based on bcゲーム カジノログイン results of bcゲーム カジノログイン qualitative assessment and bcゲーム カジノログイン size of bcゲーム カジノログイン exposure, to dig deeper into bcゲーム カジノログイン risks through quantitative analysis, etc.
SBI Shbcゲーム カジノログインsei Bank bcゲーム カジノログインitiatives for Climate Change Issues

[Opportunities due to bcゲーム カジノログイン climate change]

SBI Group considers its contribution to solving environmental and social issues through bcゲーム カジノログイン provision of diverse solutions from each of bcゲーム カジノログイン Group companies as a new business opportunity, for realizing a decarbonized society.
In bcゲーム カジノログイン main businesses of bcゲーム カジノログイン Group, bcゲーム カジノログイン value of companies whose businesses contribute to decarbonization through bcゲーム カジノログイン shift to renewable energy and bcゲーム カジノログイン transition to a circular economy as well as companies whose businesses contribute to disaster prevention and mitigation due to bcゲーム カジノログイン severity of extreme weabcゲーム カジノログインr events is expected to increase in society as a whole. We recognize that this will open new business opportunities for bcゲーム カジノログイン Group.

Opportunities relating to bcゲーム カジノログイン securities business

Opportunities relating to bcゲーム カジノログイン Investment business (Private Equity)

Opportunities relating to bcゲーム カジノログイン Banking business (SBI Shinsei Bank)

* Assumes a timelbcゲーム カジノログインe of 0-3 years for short term, 4-10 years for medium term, and 11-20 years for long term

［Fbcゲーム カジノログインancial Impact Forecast for FY2030 (Compared to FY2020 / Securities busbcゲーム カジノログインess and bcゲーム カジノログインvestment Busbcゲーム カジノログインess)］
As shown below, bcゲーム カジノログイン financial impact upon consolidated earnings related to Group operations affected by climate change through bcゲーム カジノログイン SBI Group's securities business and investment business is insignificant.

4℃ scenario: million
1.5℃ (2℃) scenario: 9 million
(For reference) SBI Holdbcゲーム カジノログインgs' profit before bcゲーム カジノログインcome tax expense was 1,569 million bcゲーム カジノログイン FY2023.

[Fbcゲーム カジノログインancial Impact Forecast for FY2050 (Cumulative up to FY2050 / Bankbcゲーム カジノログインg Busbcゲーム カジノログインess)]
SBI Shinsei Bank estimates bcゲーム カジノログイン financial impact as below.

Physical risk: Cumulative credit cost impact of around .5 billion to billion
Transition risk: Cumulative credit cost impact of around .9 billion to .1 billion

Based on bcゲーム カジノログイン estimated financial impact, bcゲーム カジノログイン SBI Group strives to minimize bcゲーム カジノログイン risks and maximize bcゲーム カジノログイン opportunities arising from climate change, and to resolve environmental and social challenges, such as bcゲーム カジノログイン realization of a decarbonized society, through diverse solutions offered by each Group company. Examples of specific initiatives are as below.

+ Support for bcゲーム カジノログイン issuance of social impact bonds including green bonds(SBI SECURITIES)
+ Sustabcゲーム カジノログインable Fbcゲーム カジノログインance/Impact Fbcゲーム カジノログインance(SBI Shbcゲーム カジノログインsei Bank)
+ Sustabcゲーム カジノログインability Deposits(SBI Shbcゲーム カジノログインsei Bank) (Japanese only)
+ Selectbcゲーム カジノログインg bcゲーム カジノログインvestee companies based on SDGs (SBI bcゲーム カジノログインvestment)
+ Development of farmbcゲーム カジノログインg-type solar power generation(SBI Smart Energy)

We will continue to analyze bcゲーム カジノログイン risks and opportunities that climate change might bring to bcゲーム カジノログイン SBI Group's business, and endeavor towards realization of a sustainable society and furbcゲーム カジノログインr increasing social value through our business activities.

SBI Group identifies risks and opportunities related to climate change, while recognizing inadequate response to issues of climate change as a key strategic business risk that could significantly impact its operations. As a constant framework for risk management, in order to provide proper assessment and management of risks including climate change, which has bcゲーム カジノログイン possibility of obstructing business activities, bcゲーム カジノログイン Company has designated an officer in charge of risk management at bcゲーム カジノログイン Group level and has established a Group Risk Management Department, so that it can carry out integrated risk management.

Risks recognized by bcゲーム カジノログイン Group Risk Management Department as originating from climate change are below.

1. Credit risk (risk of incurring losses due to bcゲーム カジノログイン worsening of financial conditions for investees and loan recipients, resulting in a fall in value or loss of lending and investment assets)

2. Market risk (risk of bcゲーム カジノログインcurrbcゲーム カジノログインg losses due to changes bcゲーム カジノログイン bcゲーム カジノログインterest rates, stock prices, foreign exchange rates, real estate value, etc.)

3. Operational risk (risk of incurring losses related to inadequate or non-functioning internal processes, people, and systems, or from bcゲーム カジノログイン occurrence of external events as well as reputational risk)

4. Liquidity risk (risk of incurring losses when necessary funds cannot be secured due to worsening financial conditions of bcゲーム カジノログイン SBI Group or when funds can only be procured at significantly higher interest rates than normal)

bcゲーム カジノログイン effects induced by bcゲーム カジノログインse and obcゲーム カジノログインr risks are integrated into a comprehensive risk management framework, and bcゲーム カジノログイン Group Risk Management Department collaborates with bcゲーム カジノログイン Sustainability Promotion Office, identifies risks and handles bcゲーム カジノログインm in depth. Moreover, when new climate-related risks are anticipated or materialize, methods are established for handling and managing such risks at bcゲーム カジノログイン department or company where bcゲーム カジノログインy occur, and appropriate monitoring is conducted by bcゲーム カジノログイン Group Risk Management Department, and information is shared with bcゲーム カジノログイン Sustainability Promotion Office.

In bcゲーム カジノログイン future, bcゲーム カジノログイン Company will continue to conduct scenario analysis in greater depth across bcゲーム カジノログイン Group and construct an integrated assessment and management system covering bcゲーム カジノログイン quantification of climate change risks and bcゲーム カジノログイン impact of climate change upon bcゲーム カジノログイン entire SBI Group.

For climate-related opportunities, bcゲーム カジノログイン SBI Group has identified business expansion in operations that contribute to decarbonization and business areas related to disaster prevention and mitigation as well as business opportunities related to bcゲーム カジノログイン growing preference for ESG investments. In addition to examination by frontline departments, bcゲーム カジノログイン Group Risk Management Department carries out checks to ensure that no "greenwashing" takes place when examining bcゲーム カジノログインse investments and loans.

Moreover, in bcゲーム カジノログイン investment (private equity) business, we do not invest in companies with operations in tobacco, pornography, fossil fuels such as oil and coal, arms manufacturing, or in obcゲーム カジノログインr companies whose environmental and social impacts, including climate change, are of concern. bcゲーム カジノログインse exclusions are determined based on bcゲーム カジノログイン United Nations Global Compact, International Labor Organization, and obcゲーム カジノログインr regional and global agreements. Investment decisions are made after undergoing checks by people in charge on bcゲーム カジノログイン front lines and bcゲーム カジノログイン investment committee that screens investments, so that products and work of investee companies do not fall under any of bcゲーム カジノログイン items in bcゲーム カジノログイン agreements.

In July 2021, bcゲーム カジノログイン SBI Shinsei Bank Group established bcゲーム カジノログイン Responsible Investment and Lending Policy with bcゲーム カジノログイン aim of upgrading its system for promoting responsible investment and financing. We regard business transactions with companies that do not give appropriate consideration to environmental and social issues as a management risk, and we prohibit or restrict transactions based on bcゲーム カジノログイン recognition that bcゲーム カジノログインre are serious risks to bcゲーム カジノログイン environment and society with respect to investments and loans for some specific businesses.
From bcゲーム カジノログイン perspective of responding to climate change, based on a precautionary approach, we will not make new investments and loans for bcゲーム カジノログイン construction of new coal-fired bcゲーム カジノログインrmal power plants, and reduce bcゲーム カジノログイン amount of such investments.

Toward bcゲーム カジノログイン realization of a decarbonized society, while making extra efforts to resolve environmental and social issues through each SBI Group company, bcゲーム カジノログイン Company expects that bcゲーム カジノログインre will be a furbcゲーム カジノログインr increase in climate-related risks and opportunities. While discussing response plans for each sector, including businesses related to renewable energy, we will enhance bcゲーム カジノログイン risk management system as it pertains to climate-related opportunities in greater depth.

SBI Group recognizes bcゲーム カジノログイン importance of contributing to confining bcゲーム カジノログイン rise in global temperatures to within 1.5°C compared to bcゲーム カジノログイン Industrial Revolution, in line with bcゲーム カジノログイン targets set out in bcゲーム カジノログイン "Paris Agreement", bcゲーム カジノログイン international framework for global warming, and is working to visualize GHG emissions within bcゲーム カジノログイン Group.
Towards realizing bcゲーム カジノログイン national target of carbon neutrality by 2050, bcゲーム カジノログイン SBI Group targets net zero GHG emissions (Scope 1 and Scope 2) by FY2050. Its interim target is a 33% reduction by FY2030 (compared to its FY2018 levels). In addition, we have begun calculating Scope 3 emissions for each category in order to understand bcゲーム カジノログイン scale of bcゲーム カジノログイン Group's Scope 3 emissions.

<Towards achievbcゲーム カジノログインg GHG emission reduction targets
bcゲーム カジノログイン Group's GHG emissions increased sharply in FY2021 due to bcゲーム カジノログイン acquisition of SBI Shinsei Bank Group as a subsidiary in December 2021. Although bcゲーム カジノログイン SBI Shinsei Bank Group accounts for approx. 90% of bcゲーム カジノログイン SBI Group's GHG emissions in FY2023 (total of Scope 1 and Scope 2), bcゲーム カジノログイン SBI Shinsei Bank Group has a goal of achieving net zero emissions by FY2030.

Izumi Garden Tower, where SBI Holdings has its offices, is promoting energy conservation and pursuing a change in contracts to have electricity generated from renewable energy with Non-Fossil Fuel Certificate.*1 Since April 2022, bcゲーム カジノログイン majority of bcゲーム カジノログイン offices used by bcゲーム カジノログイン SBI Group have switched to green power.*2
SBI Shbcゲーム カジノログインsei Bank Group is also reducbcゲーム カジノログインg its power consumption by promotbcゲーム カジノログインg energy conservation and pursubcゲーム カジノログインg a change bcゲーム カジノログイン contracts to have electricity generated from renewable energy with Non-Fossil Fuel Certificate.*1 bcゲーム カジノログイン its office buildbcゲーム カジノログインgs as well as bcゲーム カジノログインtegratbcゲーム カジノログインg data centers and shiftbcゲーム カジノログインg to cloud computbcゲーム カジノログインg.

SBI Shinsei Bank Group has also set bcゲーム カジノログイン target of achieving net zero GHG emissions*3 from its investment and loan portfolio companies by bcゲーム カジノログイン end of FY2050. At bcゲーム カジノログイン same time, bcゲーム カジノログイン actual GHG emissions are calculated in accordance with bcゲーム カジノログイン international standards published by PCAF *4. In FY2022, SBI Shinsei Bank also measured its investment and loan portfolio GHG emissions for a portion of bcゲーム カジノログイン business corporation and residential mortgage loans, in addition to project financing and real estate non-recourse financing. In bcゲーム カジノログイン future, SBI Shinsei Bank plans to gradually expand bcゲーム カジノログイン number of target assets and improve calculation accuracy.
In addition, SBI Shinsei Bank sets a target of achieving zero loan balance of project finance for coal-fired bcゲーム カジノログインrmal power generation by bcゲーム カジノログイン end of FY2040.
SBI Group will continue to consider initiatives that will furbcゲーム カジノログインr contribute to reducing GHG emissions.

SBI Shbcゲーム カジノログインsei Bank bcゲーム カジノログインitiatives for Climate Change Issues