Policies
Sustainability Policy
Through business activities based on its management philosophy, Fukuoka Financial Group is committed to solving the social and environmental issues facing local communities in the pursuit of sustainable development.
FFG’s business activities are in line with the SDGs (Sustainable Development Goals) adopted by the United Nations, which have been attracting increasing attention worldwide. To realize a sustainable local society (sustainability), FFG has established the "Sustainability Policy" for all group companies as its basic policy designed to promote SDGs-oriented business activities.
Through business activities based on its management philosophy, Fukuoka Financial Group will contribute to the realization of a sustainable local society, creating a virtuous cycle of contributions to regional economic development and improvement of FFG's corporate value.
Promotional Structure for Sustainability
In order to contribute to the realization of sustainable local communities, the Fukuoka Financial Group has established a group-wide structure to promote the SDGs.
What are the SDGs?
The Sustainable Development Goals (SDGs) are a collection of global goals set forth in the 2030 Agenda for Sustainable Development, unanimously adopted at the United Nations Summit in September 2015. The SDGs aim to achieve a society in which "no one is left behind" by 2030, and consist of the following 17 goals and 169 targets.
Policy on Environmentally and Socially Conscious Lending
To ensure environmental and social considerations in its financing operations, the Fukuoka Financial Group has established prohibited loans and loans that require additional due diligence as follows for the Bank of Fukuoka, the Kumamoto Bank and the Juhachi-Shinwa Bank. It is clearly stated in the Credit Policies of the Bank of Fukuoka, the Kumamoto Bank, and the Juhachi-Shinwa Bank, and decided by each bank’s Board of Directors.
Prohibited Loans Regardless of Sector
We do not engage in financing the following types of business as it involves a significant risk to or negative impact on the environment and society:
- Antisocial forces
- Businesses that are offensive to public order and decency, businesses that violate laws and regulations
- Businesses that violate the Washington Convention
- Businesses that have a negative impact on wetlands designated under the Ramsar Convention or on World Heritage Sites designated by UNESCO
- Businesses that engage in child labor or forced labor
Policies for Specific Sectors
Regarding sectors that involve, or are likely to involve, a risk to or negative impact on the environment and society, we have clarified policies as follows, and strive to take appropriate measures:
1) Coal-fired power generation
Coal-fired power generation is said to emit more greenhouse gases and pollutants than other forms of power generation, and therefore may lead to increased concerns about climate change and air pollution.
We do not engage in financing the construction of new coal-fired power plants and expansion projects that lead to increased greenhouse gas emissions.
2) Coal mining
Coal mine operations that are not properly managed may lead to industrial accidents caused by coal mine accidents and may have negative impacts of hazardous wastes on local residents, communities and ecosystems.
When considering finance for a new coal mining business, decisions are made prudently while checking the measures the client has in place for environmental and social considerations.
We do not engage in financing new coal mining projects that adopt the mountain top removal (MTR) method which has a significant environmental impact.
3) Oil and gas extraction and pipeline construction
Oil and gas extraction and pipeline construction may cause pollution of oceans and rivers due to oil spills and gas leaks and may have negative impacts on local residents, communities and ecosystems.
When considering finance for oil and gas extraction projects and oil and gas pipeline construction, decisions are made prudently while checking the measures the client has in place for environmental and social considerations.
4) Large-scale hydropower generation
Hydropower generation may have a negative impact on ecosystems due to the construction of dams, and any resettlement of residents may have a negative impact on local communities.
When considering finance for new large-scale hydropower generation projects (*1), decisions are made prudently while checking the measures the client has in place for environmental and social considerations.
*1 Large-scale hydropower generation project: A hydropower generation project in which the dam wall height is 15 meters or more and output is 30 MW or more.
5) Development of palm oil plantations
While palm oil is one of the raw materials used in making products that are essential for daily life, if the development of palm oil plantations involves the cutting down of natural forests or the burning of peatlands, it may have negative impacts on climate change, local residents, communities and ecosystems.
When considering finance for the development of palm oil plantations, clients are required to obtain RSPO(*2) certification and to make public announcements of compliance with NDPE (*3), etc., and decisions are made prudently while checking the measures the client has in place for environmental and social considerations.
*2 RSPO: Roundtable on Sustainable Palm Oil
*3 NDPE: No Deforestation, No Peat and No Exploitation
6) Large-scale deforestation
The large-scale destruction of forests may have significant negative impacts on climate change and ecosystems.
When considering finance for projects involving large-scale deforestation, decisions are made prudently while checking the status of international certifications and the measures the client has in place for environmental and social considerations.
7) Manufacture of cluster bombs and other weapons against humanity
Cluster bombs, nuclear weapons, biological and chemical weapons, and antipersonnel mines are recognized as having a significant humanitarian impact, having devastating effects on ordinary citizens.
We do not engage in financing companies that manufacture cluster bombs, nor do we engage in financing the manufacture of nuclear weapons, biological and chemical weapons, and antipersonnel mines.
Respect of Human Rights
In addition to respecting the fundamental human rights of all people, the Company shall foster an understanding of human rights through daily study and conduct corporate activities based on human dignity.
Environmental Policy
Four Pillars of FFG’s Environmental Policy
1. Ongoing EMS implementation
- To establish targets for regional environmental protection and strive to achieve them through concrete activities
- To evaluate activities and carry out requisite revisions in pursuit of ongoing improvements to FFG’s unique environmental management system (EMS)
2. Environmental endeavors through FFG’s businesses
- To strive to contribute to local communities through business-based environmental activities
3. Implementation of environmentally considerate activities
- To work to reduce the burden on the environment through energy-conservation and resource-saving measures and social contribution activities that consider environmental protection
4. Thorough environmental communications targeting all FFG executives and employees
- To raise awareness of this policy among all the Group’s executives and employees, encouraging them to think about environmental problems, act voluntarily and carry out improvement activities