Sustainability in Our Organization

Approach to Sustainability Issues and Sustainability Governance Structure

ORIX has diverse businesses, and each business has a wide range of sustainability issues that either affect society or are affected by society. For this reason, we divide our sustainability efforts into two categories: the corporate (Group-wide) level and the business unit level.
Among discussions of sustainability, Group-wide themes are mainly compiled by the Sustainability Department and reported to top management and the Sustainability Committee. At the same time, at Business Unit Strategy Meetings attended by internal directors and heads of business units, including top management, discussions are held as appropriate regarding the promotion of sustainability in each business unit, and these are also reported to the Sustainability Committee on a regular basis. Matters reported to the Sustainability Committee are also reported to the Board of Directors.

Sustainability Governance Structure

The ORIX Group's Board of Directors is responsible for overseeing sustainability-related risks and opportunities across the entire Group.
The Sustainability Committee regularly reports to the Board of Directors. The Board approves sustainability-related policies and oversees progress toward the Group's material issues and key sustainability targets, providing guidance as necessary. In addition, the Audit Committee monitors sustainability-related matters, including climate change, from an internal control and governance perspective. The Committee receives regular reports from the relevant departments and the internal audit function and reviews the status of related initiatives and responses.
On the execution side, the Sustainability Committee deliberates on significant matters related to the execution of sustainability-related activities throughout the Group. Depending on the nature of specific sustainability topics, specialized committees or forums established for particular areas may work in coordination with the Sustainability Committee to review and promote initiatives from a more expert and focused perspective.

Sustainability Committee

Purpose and position of the Sustainability Committee
The Sustainability Committee deliberates on and decides matters related to material issues and key goals, including governance and risk management methods, and reports them to the Board of Directors for approval. The Board of Directors supervises and guides the promotion of sustainability.

Composition of the Sustainability Committee
Committee members include Group CEO (Chair), Deputy President Executive Officer, Business Unit COOs, CFOs, the executive in charge of the Sustainability Department, and other Executive Officers designated by the Group CEO. Other relevant participants attend as necessary depending on the agenda.

Role of the Sustainability Committee

1. Discussion of the Group-wide policy regarding the environment, society, and governance related to these areas
2. Discussion of the identification of material issues and key goals based on 1.
3. Discussion of the strategy, KPIs, action protocols, and governance structure for achieving the key goals outlined in 2.
4. Discussion on the reduction of environmental and social risks, including climate change risks
5. Discussion of other matters

Sustainability Promotion Status

Group-wide Themes

(1) Performance for the fiscal year ended March 2026

1. Updating of material issues

   • Roundtable discussions involving executives from Japan and overseas, and financial impact assessments
   • Progress reports presented at the Board of Directors meetings held in November 2025 and March 2026
   • Approved the update at the Board of Directors meeting in May 2026 and also revised the Sustainability Policy

2. Preparing for SSBJ compliance and responding in the 2026 annual securities report

   • Disclosed the updated material issues, subheadings, and reasons for selection in the annual securities report
   • Disclosed Scope 1 and Scope 2 emissions corresponding to the financial reporting period in the annual securities report, after obtaining third-party assurance
   • Disclosed indicators related to human capital management, one of the updated material issues, in the annual securities report

3. Maintaining and improving ESG ratings and external evaluations

   • Ratings from four of the five ESG rating agencies prioritized by ORIX improved.

(2) Focus themes for the fiscal year ending March 2027

1. Updating the challenges for each business in line with the updated material issues
2. Continuing preparations for SSBJ compliance, establishing internal controls (developing a data collection system, documentation, etc.)
3. Maintaining and improving ESG ratings we prioritize

Business Unit Level Approach

For the Fiscal Year Ending March 2027