Monex Group formulated its concept of environmental initiatives in ESG / sustainability goals in its "Environmental Policy", which has been approved by the Executive Officers and reported to the Board of Directors. The Group Environmental Policy is as follows.
Ever since its establishment, Monex Group has operated environmentally friendly online financial businesses. In June 2021, the Board of Directors formulated the Monex Group Sustainability Statement, which clearly states our commitment to contribute to the realization of a sustainable society and to reduce the environmental impact of our businesses.
In addition to fulfilling our obligation as a public entity to protect limited natural resources for future generations, we must structure our core finance-related operations to respond to the impact that environmental issues (in particular, climate change) will have on overall economic activities.
We are committed to addressing and solving environmental issues through our business operations based on the following Environmental Policy.
1. Through our business operations, we shall develop and provide products and services* that contribute to solving environmental issues.
*ESG financial products, including environmental impact funds that focus on global renewable energy.
2. We will strive to continuously reduce greenhouse gas emissions generated by the group's business activities.
3. In addition to providing environmental education for executives and employees, we shall enhance awareness of environmental issues among our customers and other stakeholders.
4. We shall disclose environmental information in a timely and appropriate manner to meet the expectations of society and capital markets.
5. We shall put in place a framework to ensure the steady implementation of our efforts to solve environmental issues. Specifically, With respect to climate change initiatives, we will report to the Board of Directors on our ongoing improvements through periodic evaluations and reviews and, under the supervision of the Board of Directors, strive to manage climate change risks.
6. We shall comply with environment-related laws and regulations and strive to implement the Monex Group Environmental Policy.
In considering and analyzing the impact of climate change on our business activities, we will contribute to the realization of a sustainable society through our business activities by developing internal systems and analyzing scenarios based on the requirements of the Task Force on Climate-related Financial Disclosure (TCFD).
Through the scenario analysis, we have identified major risks and business opportunities from climate crisis, and analyzed the impact on our business as of 2030. Based on the scenarios published by the IPCC and the IEA, two scenarios were analyzed: the 4℃ scenario, in which the average temperature rises 4℃ by 2100 compared to the average temperature before the Industrial Revolution; and the 1.5℃ scenario, in which the average temperature rise is controlled to less than 1.5℃ through carbon neutral initiatives.
In the 4℃ scenario, we have confirmed the expansion of physical risks such as floods and storm surges due to the intensification of abnormal weather. In the 1.5℃ scenario, with the background of potential demands in capital markets of products which responds to climate change, such as ESG funds, and innovations in renewable energy business, we expect increased business opportunities within the group, and we believe our responses to climate change reduces turnover rate of our employees which leads to decreased costs for recruitment. However, It is expected that the cost of companies will increase due to the introduction of policy regulations such as new tax systems such as electricity prices and carbon tax. Based on these analyses, specific measures will be considered and formulated in each business segment, and we will continue to regularly conduct analyses based on various trends to review our assessments and enhance the quality and quantity of information disclosure.
Impact Large: over 100 million yen Medium: over 10 million yen but less than 100 million yen Small: less than 10 million yen
We recognize that climate change risk will affect various risk items over the medium to long term and manage it within the company-wide risk management process. Risks and opportunities are identified and evaluated through periodic analysis, and when significant issues arise, they are managed based on the risk items defined in the rules of integrated risk control.
Based on the recognition that the assessment of climate change-related risks based on the current scenario analysis is limited to credit risk and reputational risk, the risks are included in the risk items of each company for management and reporting to the Board of Directors.
Note1:The scope 1, 2, and 3 classifications follow The Greenhouse Gas Protocol (GHG Protocol):https://www.ghgprotocol.org/
Consumption and emmission factors from "Implementation Ordinances for Global Warming Policies (Japan)" and "the Law Concerning the Rational Use of Energy (Japan)"
Note2: The electric energy consumption in both U.S. segment and AP Segment are converted into energy consumption volume with the crud oil equivalent standard in Japan (t-CO2/kWh) for the estimated calculation.
*The figures for the fiscal years ending March 2018 and 2019 are calculated from the energy consumption generated from the offices in the Japan segment.
**The figures for the fiscal years later than March 2020 are calculated from all the energy consumption generated from the offices and data centers in all the segments (including Japan segment, U.S. segment, and AP segment). Energy consumption (crude oil equivalent) in the U.S. segment and AP segment is estimated with the crude oil equivalent standard in Japan.
Target year: FY2025
Reduce GHG emissions and promote energy conservation to realize a low-carbon society. Specifically, we will promote initiatives such as conversion to renewable energy and purchase of non-fossil certificates.
In order to resolve the issue of climate change, we support the Law Concerning the Promotion of Measures to Cope with Global Warming and actively participate in organizations and initiatives("Organizations") that confirm that our ideas and directions are in line with the current situation and promote climate change mitigation and adaptation.
TCFD (Task Force on Climate - Related Financial Disclosures)
JCI (Japan Climate Initiative)
In reviewing our participation in organizations, we have confirmed that there are no discrepancies or contradictions between our current climate change initiatives and theirs, and we will continue to confirm that there are no discrepancies or contradictions.
Monex, Inc., a major subsidiary of our group, is a member of Japan Securities Dealers Association, Inc. The Japan Securities Dealers Association (JSDA) is an industry association whose purpose is to ensure the fair and smooth trading of securities and other transactions conducted by its members, to promote the sound development of the financial instruments business, and thereby to contribute to the protection of investors.
As a leader in the financial and capital markets, the JSDA recognizes the impact of environmental problems on the economy and society, and also recognizes its social responsibility to realize a better social environment and a sustainable society that provides security for future generations. In order to endeavor to The Association has set a numerical target to contribute to the reduction of CO2 emissions, which is to make maximum efforts to reduce CO2 emissions per square meter of floor space (electricity consumption per unit of electricity consumption) of all member securities firms by 51% or more in FY2030 compared to the FY 2013 level. Our Group supports the Association's target.
In addition, we supports laws, regulations, and policies related to climate change and energy consumption reduction (such as the Law Concerning the Promotion of the Measures to Cope with Global Warming (Global Warming Prevention Law) and the Law Concerning the Rational Use of Energy (Energy Conservation Law) in Japan) at its domestic and overseas bases, and is taking appropriate measures to comply with these laws, regulations, and policies. We are taking appropriate measures to comply with these laws and regulations.
Our Japan segment promotes the collection of PET bottle caps at the Tokyo offices of Monex, Inc. and its parent company, Monex Group, Inc. The collected PET bottle caps are collected by Recycle Vendor.
Numerical values are based on estimated conversion values provided by Recycle Vendor. Conversions for vaccine purchases are 1 bottle (per person) per 800 caps until March 2021, and 1 bottle (per person) per 1,000 caps from April 2022.