Five materiality themes
at SBI ARUHI Group

SBI ARUHI Group has defined materiality as management priority themes from a ESG perspective to better connect our social and environmental endeavors with business strategies, and ultimately with the growth of the society and our company.

Category Materiality Specific initiatives
E:Environment Reducing greenhouse gas emissions
  • Promoting the spread of housing loans for environmentally friendly housing (“Flat 35”S).
  • We continue to issue Green RMBS backed by housing loan receivables that meet the energy saving standards for “Flat 35”.
S:Social Addressing challenges of lower birthrates and aging society
  • We promote the sale of “Flat 35”, driven by the “Flat 35 Child-rearing Plus” program to support households raising children.
  • We promote Lease-back business.
  • We offer diverse financial products and services for homebuying.
Promoting diverse ways of working
  • We create an environment that enables an efficient work-life balance (super-flex time system, reduced work schedule system for raising children and parental leave programs, etc.).
  • We support flexible ways of working (remote work and flexible work allowances, etc.).
  • We offer skill enhancement and career development programs.
G:Governance Promoting compliance
  • Compliance with laws and regulations is fundamental for SBI ARUHI. We act fairly based on ethics and integrity as a financial institution (ensuring education, appointing external specialists, using IT tools, establishing a whistleblowing system, etc.).
  • We prevent corrupt practices.
Strengthening risk management
  • We limit activities that could negatively affect our communities and the environment, and reduce the risks of our business activities.

Materiality identification process

Five material topics at SBI ARUHI Group have been determined through the following process:

Selecting/sorting material topics
  • Select/sort issues that could have a significant impact on SBI ARUHI Group and the communities based on the Global Reporting Initiative (GRI) standards, Sustainability Accounting Standards Board (SASB) standards, the global Sustainable Development Goals (SDGs), and ESG rating agencies' frameworks
Evaluating from standpoints of SBI ARUHI and its stakeholders
  • Create a materiality map using issues selected/sorted in STEP 1, with the x-axis representing the degree of priority of initiatives to focus more on for SBI ARUHI, and the y-axis representing the materiality of our stakeholders
  • The degree of priority of initiatives to focus more on for SBI ARUHI on the x-axis is assessed based on (1) how well they are consistent with our key VALUE, (2) how they are aligned with recognized risks, and (3) linkage with our medium-term strategic plan, as well as findings from surveys of our employees.
  • Materiality of stakeholders on the y-axis is assessed based on information published by ESG rating agencies and media.
Identifying material topics
  • The materiality map created in STEP 2 is reviewed by an ESG Committee chaired by the CEO and with the same members as the Executive Committee, as well as by the Board of Directors, to identify material topics

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