Banking

Our Approach to Our Sustainability Themes

In accordance with ORIX Bank’s material issues (materialities), we will provide products and services that help resolve social issues, and implement initiatives to be a sustainable company.

ORIX Bank’s Material Issues (Materialities)

1. Creating a sustainable economy and society:
   • Responding to an aging society
   • Regional revitalization
   • Realizing a smart and resilient society
2. Building safe and secure homes and lifestyles:
   • Creating sustainable cities and communities
   • Resolving urban issues
3. Realizing a society in harmony with nature:
   • Responding to climate change
   • Creating a recycling-oriented society
4. Creating a work environment in which everyone can work comfortably:
   • Diversity and inclusion
   • Human resource development and self-realization

Business Activities and Sustainability Themes Matrix

ORIX Bank Sustainable Investing and Lending Policy

• #Investments and lending that take ESG into account

In February 2022, ORIX Bank established the ORIX Bank Sustainable Investing and Lending Policy. This policy is based on the Sustainability Policy ORIX Bank formulated in July of 2021, which serves to help appropriately evaluate investing and lending transactions from two perspectives: crafting positive impacts for society and the environment and controlling negative impact. The policy will be applied to all transactions henceforth and will help contribute to the creation of a more sustainable society.
Policy Overview:

ORIX Bank Sustainability Policy can be found here(in Japanese).
ORIX Bank Sustainable Investing and Lending Policy can be found in full here(in Japanese).

Issuing sustainability bonds

• #Investments and lending that take ESG into account

ORIX Bank issued sustainability bonds in November 2022. Proceeds from the bonds will be used for investing in and lending for projects in the six business segments which meet the sustainability eligibility criteria defined in the sustainability finance framework that ORIX Bank has established. This framework has been assigned “SU1 (F),” the highest possible rating in the JCR Sustainability Finance Framework Evaluation by Japan Credit Rating Agency, Ltd. (JCR).
Details regarding the Sustainability Finance Framework and the third-party evaluation report from the JCR can be found here(in Japanese).

Investing in environmentally-friendly condominiums

• #Conserving energy / resources
• #Climate change / Reducing GHG emissions

The Japanese government has indicated a policy to require ZEH^*-level energy saving performance for houses and buildings constructed by 2030, making it necessary to create a framework for helping realize a decarbonized society in the development of investment condominiums.
To this end, ORIX Bank offers preferential interest rates for development capital and loans to retail investors for purchasing properties which meet ZEH-level standards for condominiums. Our aim is to increase the number of properties that meet ZEH standards that are supplied to the market by providing financial support for costs associated with building real estate to ZEH specifications.

• ZEH is an abbreviation for “Net Zero Energy House”. Houses that meet ZEH standards aim to reduce annual energy consumption to zero or less through energy conservation by introducing equipment with high insulation performance and efficient energy use and energy creation by generating electricity through solar power generation and other means.

Products and services that accommodate an aging society

• #Aging society

ORIX Bank's Simple Inheritance Trust: Simplifying wills and inheritance

ORIX Bank offers products and services that respond to a growing interest and need in inheritance-related matters. ORIX Bank's Simple Inheritance Trust is a service that distributes funds deposited by the service user to a pre-designated beneficiary as a lump sum when inheritance needs arise.
The Simple Inheritance Trust is a service that completes contracts and other necessary processes by mail and over the phone without face-to-face interaction and allows funds to transfer smoothly from the benefactor to the beneficiary with minimal effort.
Additionally, this service includes the option of making bequests to CiRA (the Center of iPS Cell Research and Application, Kyoto University) when inheritance needs come about. Service users can make use of this system to do their part in contributing to society by donating to the development of regenerative medicine utilizing iPS cells.

Related Link

• ORIX Bank Corporation - Simple Inheritance Trust(in Japanese)

ORIX Bank's e-Direct Family Trust

In Japan, higher life expectancy rates have brought about an “aging of financial assets”, as the ratio of personal assets held by senior citizens—compared to personal assets held by the rest of the population—continues to grow. At the same time, studies indicate that by 2025, 1 in 5 people age 65 and above will develop dementia^*, and creating measures to maintain and manage an individual's assets in the face of cognitive decline has become a major societal theme.
ORIX Bank's e-Direct Family Trust supports the establishment of family trusts limited to specific assets in preparation for a decline in cognition due to dementia or other conditions, and the potential consequential deterioration in decision-making abilities. ORIX Bank provides services including consultation necessary to establish a family trust, introduction of legal scriveners which support the creation and signing of necessary documentation, and establishment of trust accounts.
ORIX Bank also provides real estate loans, including reverse mortgage loans, for investments that correspond to family trusts.

• Source: Cabinet Office, Annual Report on the Aging Society, 2017

Related Link

• ORIX Bank Corporation – e-Direct Family Trust(in Japanese)

Head office building achieves 100% renewable energy

• #Climate change / Reducing GHG emissions

ORIX Bank now sources the energy used at ORIX Inui Building—which serves as its head office building—entirely from renewable energy with non-fossil fuel energy certificates; as a result, the head office effectively uses 100% renewable energy. Renewable energy generated at the ORIX Group-operated woody biomass exclusive combustion power plant is converted into non-fossil fuel energy certificates with tracking information. ORIX Corporation has a significant retail electricity supply business through which it is able to provide ORIX Bank with electricity using these energy certificates. In the fiscal year ended March 2023, this initiative resulted in annual CO₂ emissions reductions of approximately 213 tons^* for ORIX Bank.

• When estimating annual energy consumption (kWh) from non-fossil fuel energy certificates, we utilized national average values adopted in the system for calculating, reporting, and publicly disclosing CO₂ emissions reductions.