In conjunction with the Medium-term Management Plan "Passion for the Best" 2026, we newly established and disclosed sustainability KPIs in FY2024.

To clarify a concrete path toward net zero Financed Emissions, etc. (Scope 3) by 2050 under the Net Zero Carbon Declaration, we have set interim targets up to FY2030 for project finance in the power generation sector, which accounts for the largest proportion of the Group's financed emissions. The interim target, results measured under PCAF standards, and initiatives to achieve the target are as follows.

For the FY2024 measurement of emissions, as in the prior year, we measured all sectors rather than limiting to high-emitting sectors, and measured Scope 3 in addition to investees' Scope 1 and Scope 2. For the calculation method of the results, please refer to "Appendix 2. Scope of Aggregation and Calculation Method for GHG Emissions." The FY2024 result was approximately 830,000 t-CO₂e, an increase from the prior year^*. The main driver was the acquisition of new electric power sector bonds amid changes in the interest rate environment, which accounted for most of the increase; improvements in the quality of the emissions database also contributed, accounting for about 10% of the increase. We will continue monitoring in light of international guidance and advance engagement with investees.

• *Comparison is based on Scope 1 and Scope 2.

For the interim target on emission intensity, in FY2023 we set an interim target up to FY2030 for project finance in the power generation sector, which currently accounts for the largest proportion of the Group's financed emissions. Because growing electricity demand must be met while advancing the transition to clean energy, we use emission intensity (emissions per unit of power generated) as the measurement indicator. The target is set as a range based on the IEA's NZE and APS scenarios, at a level well below the Paris Agreement's 2°C goal and consistent with the 1.5°C goal. The FY2024 result declined from the FY2023 result^*, reflecting a decrease in emissions from investees and borrowers, as well as progress in renewable energy financing. Measurement of financed emissions is still in the development stage and may be significantly affected by revisions to estimation methods.

Going forward, we will strengthen engagement with investees and borrowers, and expand renewable energy financing to achieve the FY2030 interim target and our net zero goal by 2050.

For further details regarding the rationale for target-setting and initiatives to achieve the targets, please refer to "Response toward Net Zero GHG Emissions within Our Investment and Loan Portfolios."

• *FY2023 result was 243 g-CO₂e/kWh.

Under the Net Zero Carbon Declaration, the Group aims to achieve net zero GHG emissions within our own operations (Scope 1 and Scope 2) by FY2030 and monitors GHG emissions annually. Within Scope 3, Categories 1–5 and 8–14 are not disclosed as they are not material given the nature of the Group's business. For the scope of aggregation and calculation methods of the results, please refer to "Appendix 2. Scope of Aggregation and Calculation Method for GHG Emissions."

As the transition to a decarbonized society advances, carbon-intensive assets with large GHG emissions risk a significant decline in value in the future, and continuing to hold them may give rise to reputational risk. As an indicator of assets vulnerable to climate-related (transition) risk, and in light of the definition of carbon-intensive assets in the TCFD supplementary guidance, we disclose the status of carbon-intensive assets.

As of March 31, 2026, total carbon-intensive assets were approximately ¥633.0 billion, equivalent to roughly 30% of total assets across all sectors. The total was calculated based on figures in the Group's consolidated financial statements for the fiscal year ended March 2026. Having examined the degree of risk of carbon-intensive assets, the Group will advance initiatives to reduce, over the medium to long term, carbon-intensive assets with particularly high risk.

Remuneration of directors and executive officers is decided by the Compensation Committee and comprises base remuneration, stock-price-linked remuneration, and performance-linked remuneration. In calculating performance-linked remuneration, we refer to each KPI set as a numerical target in the Medium-term Management Plan "Passion for the Best" 2026. The climate-related KPIs include the SDGs bond league table, GHG emissions within our own operations, and Financed Emissions.

The performance evaluation used to calculate performance-linked remuneration reflects a financial performance evaluation based on performance KPIs using financial information, plus a quality evaluation that comprehensively assesses KPIs other than the performance KPIs; both are decided by the Compensation Committee. Performance-linked remuneration is calculated by multiplying a reference amount set for each position by the performance evaluation and reflecting individual contribution. Because the climate-related KPIs are incorporated together with the other KPIs reflected in performance-linked remuneration, they cannot be separately identified.