We established sustainability KPIs in FY2024 as part of the Medium-term Management Plan "Passion for the Best" 2026.

Under the Net Zero Carbon Declaration, the Group aims to achieve net zero GHG emissions within our own operations by FY2030 (Scope 1 and Scope 2). We monitor GHG emissions every year to achieve these targets.

For detail, please refer to "Appendix 2. Scope of Aggregation and Calculation Method for GHG Emissions".

To lay out a concrete path toward our goal of Net zero GHG emissions within our investment and loan portfolios, etc. by 2050 (Scope 3) set forth in the Declaration, we set interim targets up to FY2030 for project finance in the power generation sector, which accounts for the largest proportion of emissions in our own investment and loan portfolios.

For FY2023 results, the scope of measurement was expanded compared to previous fiscal years and was not limited to high-emitting sectors. In addition to Scope 1 and Scope 2, Scope 3 emissions were also measured for investees and lenders.

In FY2023, we set interim targets up to FY2030 for project finance in the power generation sector, which accounts for the largest proportion of emissions in our own investment and loan portfolios.

To support increasing electricity demand while advancing the transition to clean energy, we use emissions intensity (GHG emissions per unit of power generated) as a measurement indicator. The targets are set based on the IEA's NZE and APS scenarios, aligned with the 1.5° goal and well below the 2° threshold of the Paris Agreement.

The FY2023 results were lower than those of FY2022^* due to improved power generation efficiency among investment and loan recipients, as well as progress in renewable energy investments and loans. Measurement of investment and loan portfolio emissions is still in the development stage, and measurement results may be significantly affected by revisions to estimation methods, etc.

Going forward, we will strengthen engagement with investees and expand renewable energy financing to achieve our targets. For details, please refer to "Measures to achieve net zero GHG Emissions within Our Investment and Loan portfolios".

• *FY2022 results were 379 g-CO₂e/kWh

As the global economy advances toward decarbonization, carbon-intensive assets are increasingly exposed to financial and reputational risks. Climate-related scenario analysis suggests that such assets may be subject to material financial impacts over the medium to long term.

In line with the TCFD supplementary guidance, we disclose the balance of carbon-intensive assets as an indicator of exposure to transition risks. As of December 2024, the balance amounted to approximately 550 billion yen, representing 32.3% of total assets, based on our consolidated financial statements.

We will continue to monitor these assets and work toward their gradual reduction over time.

Remuneration of Directors and Corporate Executive Officers consists of Base remuneration, Stocklinked remuneration and Performance-linked remuneration, and determined at the Compensation Committee.

We refer to KPIs, which are set as the Group numerical goals in the Medium-term Management Plan "Passion for the Best" 2026 to calculate Performance-linked remuneration. These KPIs include SDGs bond league table and GHG emissions targets.

The performance assessments used in calculating Performance-linked remuneration reflect the financial performance evaluation, which is based on the Performance KPIs using the financial information and the quality evaluation, which is a comprehensive assessment of the KPIs other than the Performance KPI. The Financial Performance Evaluation and the Quality Evaluation are determined by the Compensation Committee.

Performance-linked remuneration is calculated by multiplying the reference amount determined for each position by the performance evaluation, and reflecting the degree of individual contribution.