Areas of Materiality / Targets

Based on its Basic Policy on Sustainability, the Group has identified five areas of materiality as it strives—through the Group’s sustainable growth and business activities—toward solutions to environmental and social issues. The Group has also set targets for each of these five areas of materiality, and works to realize a sustainable society and raise its corporate value by carrying out specific initiatives.

Identification process for areas of materiality

Determining the status quo / analysis, ・Understanding the status quo based on risks and opportunities in each related department of the Company ・Classifying initiatives based on ISO 26000 (266 items) → Abstraction / discussion / identification, ・Abstraction and determination of a draft document by the secretariat (Corporate Planning Department at the time) and relevant parties within the Company ・Refinement and final identification through discussions by internal and outside directors as well as interviews to find out opinions of stakeholders → Approval, ・By a resolution of the Board of Directors in February 2022

Approach to the identification of areas of materiality

The issues and initiatives brought to light through the process to determine the status quo are mapped (see chart on the right-hand side), and and sorted.
The vertical axis represents stakeholder interest and impact on stakeholders, and the horizontal axis represents importance for JACCS group. The issues judged as very important on both axes were identified as JACCS Group’ five areas of materiality.
The areas of materiality incorporate an external point of view. This was achieved by holding several sessions for the exchange of opinions that included the participation of outside directors, and by listening to feedback from outside experts, during the process to identify the areas of materiality.

Areas of materiality identified and targets

Based on five areas of materiality, the Company established initiatives and targets corresponding to each initiative. The Company set numerical targets as presented below, which it aims to achieve in the final year of the MOVE 70 three-year medium-term plan. Please note that the areas of materiality include some items for which it is difficult to quantitatively measure the degree of impact on the environment and society.

Can be horizontally scrolled

Area of materiality	Main initiatives	Indicators	Results for the fiscal year ended March 31, 2023	Targets for the fiscal year ending March 31, 2025
Providing safe and secure services that offer a high level of convenience	Service that responds to the trust placed in JACCS by customers and member stores	Response rate	83%	90%
		Ratio of automated receipt of credit screening applications	68%	82%
	Raising the sophistication of information security	Acquisition of certification under the Payment Card Industry Data Security Standard (PCIDSS)	PCIDSS Version 3.2 periodic audit	Version 4.0 compliance
	Raising the sophistication of information security	Ratio of detection of fraudulent credit card transactions	61.6%	70%
	Providing financial services as infrastructure to support local communities and lifestyles	Volume of new contracts for home renovation loans	¥125.7 billion	¥141.6 billion
		Volume of new contracts for educational loans	¥17.2 billion	¥19.2 billion
		Volume of new contracts for medical loans	¥26.3 billion	¥27.6 billion
		Volume of new contracts in the overseas business	¥79.6 billion	¥103.1 billion
		Balance of loans for condominiums purchased for investment purposes	¥2,495.6 billion	¥3,000.0 billion
	Promoting cashless payments	Volume of new contracts in the credit card and payments business	¥2,740.1 billion	¥2,962.7 billion
Protecting the environment	Efforts to reduce environmental burden	Volume of copier paper purchased (compared with the fiscal year ended March 31, 2022)	1.7% decrease	3% decrease
		Ratio of web-based credit card statements	44%	50%
		Ratio of eco-friendly vehicles within the Company’s vehicle fleet	17%	54%
		Rate of reduction of energy consumption (compared with the fiscal year ended March 31, 2020)	16.6% decrease	13% decrease
	Addressing climate change	Rate of reduction of CO2 emissions (compared with the fiscal year ended March 31, 2020)	11% decrease	18% decrease
Contributing to the realization of a decarbonized society	Promoting decarbonization through financial services	Volume of new contracts for solar loans	¥48.4 billion	¥33.1 billion
		Volume of new contracts for storage battery loans	¥33.8 billion	¥32.1 billion
		Volume of new contracts for EV loans	¥22.7 billion	¥40.0 billion
		Fundraising through ESG finance	¥34.3 billion	¥30.0 billion
Respecting diversity and human rights	Promoting diversity and inclusion	Ratio of female employees among employees who hold the position of section manager or higher, or employees who have subordinates and hold a position one rank lower than section manager	32.2%	35%
	Promoting diversity and inclusion	Number of employees certified as possessing advanced digital skills	Completion of system creation	400 persons
	Respecting human rights	Establishment of a system in accordance with the UN Guiding Principles on Business and Human Rights	Examination of human rights policy content
	Promoting health and productivity management	Employees’ average monthly overtime hours	11.7 hours	12.0 hours
	Undertaking social contribution activities	Donation amount	¥19.38 million	¥30.0 million
Advancing the quality of corporate governance	Strengthening risk manangement	Competent application of the management cycle	Quantification of risk Creation of management cycle structure
	Strengthening risk manangement	Improvement of AML system	Creation of AML/CFT system Identification and assessment of ML/FT risk
	Continuation of compliance	Ongoing execution of education and training programs	Issuance of ethics cards Implementation of compliance risk reduction