Case study: How Kyushu Financial Group works with its clients and customers to encourage sustainable practices

Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.

Kyushu Financial Group emphasizes engagement and cooperation with its stakeholders to foster a sustainable local community. As a regional financial institution with strong roots in Central and Southern Kyushu, particularly in Kumamoto, Kagoshima, and Miyazaki Prefectures, Kyushu Financial Group continues to strengthen its ties with local governments and businesses. The Group is committed to fulfilling its role as a financial institution that collaborates closely with the community.

Partnership agreements with municipalities for local revitalization

• Kumamoto Prefecture: 18 municipalities
• Kagoshima Prefecture: 7 municipalities
• Miyazaki Prefecture: 1 municipality

Partnership agreements with local companies

• Higo Bank and Kyushu Electric Power Kumamoto Branch
  1. Supporting local customers’ decarbonization
  2. Decarbonizing the Higo Bank Group
  3. Protecting Kumamoto’s rich natural environment
  4. Other actions deemed necessary by the companies concerning local decarbonization
• Kagoshima Bank and Kyushu Electric Power Kagoshima Branch
  1. Promoting the use of renewable energy
  2. Maximizing electrification and energy efficiency
  3. Developing educational activities for a decarbonized society
  4. Collaborating with municipalities and others in the above efforts to address local issues and encourage regional revitalization
  5. Other actions deemed necessary by the companies for decarbonization

Participation in domestic and international initiatives

To fulfill its social responsibility as a financial institution and meet global expectations such as the SDGs and the Paris Agreement, the Group engages in various initiatives for a sustainable community:

• PCAF (Partnership for Carbon Accounting Financials): Joined in May 2022 to enhance the measurement and disclosure of indirect greenhouse gas emissions through investments and loans.
• GX (Green Transformation) League: Endorsed the GX League Basic Concept to support Japan’s 2050 carbon neutrality goal and global carbon neutrality, working with companies, universities, and the government for sustainable growth.
• TNFD (Taskforce on Nature-related Financial Disclosures): Participated in the TNFD Forum in September 2022 and became a TNFD Early Adopter in January 2024.

How did Kyushu Financial Group work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?

In its FY2024 PRB Report Kyushu Financial Group reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

In the “Sustainability Declaration” established in 2019, Kyushu Financial Group is dedicated to fostering deeper dialogue with customers and the local community, while expanding efforts to create a sustainable society across the entire region.

To promote responsible relationships with its customers, the Group has set forth a common sustainability policy. Through engagement with local communities, Kyushu Financial Group is working to address various social challenges, such as climate change and human rights concerns, through dialogue. This includes:

• Environmental Policy
• Human Rights Policy
• Sustainable Investment and Loan Policy
• Biodiversity Protection Policy

At Higo Bank and Kagoshima Bank, the Sustainability Promotion Office (both banks), the Corporate Consulting Division (Higo Bank), and the Regional Support Division (Kagoshima Bank) are central to identifying customer needs and challenges in the transition to a sustainable business model and providing support as a unified group.

UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet

With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.

FBRH Principles for Responsible Banking (PRB) Assurance:

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The combination of all the above empowers FBRH to provide first class Principles for Responsible Banking (PRB) assurance services.

References:

This case study is based on published information by Kyushu Financial Group, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.kyushu-fg.co.jp/english/assets/pdf/csr/initiative_prb_01.pdf

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