Japan Post Bank

The financial institution has publicly available policy statements committing to respect ILO core labour rights and human rights. Decision-making and oversight for the sustainability strategy are assigned to the highest governance body, with performance criteria for senior executive remuneration linked to specific sustainability targets. Implementation responsibility for the sustainability strategy is delegated to various functions, teams, or committees within the institution.

The institution discloses a list of trade associations of which it is a member and provides examples of how its offerings support societal climate adaptation and resilience. Furthermore, the institution discloses its Scope 3 emissions by category, the monetary amount of financial services provided to small and medium-sized enterprises. as well as its operational details by country.

The financial institution expects suppliers to respect specific workers’ rights but has the opportunity to reference all ILO fundamental rights at work. While prohibiting bribery and corruption, there is an opportunity to formalise this commitment in a public policy document and include anti-bribery and anti-corruption clauses in its contracts with business relationships.

While the institution identifies and prioritizes material sustainability impacts, it could enhance transparency by disclosing the objective criteria and evidence. It could commit to not using lobbying and political engagement power to create adverse sustainability impacts and to align its lobbying activities with its sustainability strategy. The institution restricts financing for certain fossil fuel projects or clients undertaking such projects, but it could expand these restrictions to include all fossil fuels.

It is recommended that the institution disclose that it has established a transition plan covering its own operations, supply chain, and portfolio and publish the breakdown of clients or beneficiaries by income group. It could also clarify processes to prevent divestment from low-income and lower-middle-income countries due to its sustainability strategies and targets. Additionally, the institution could strengthen its disclosure by identifying the social risks associated with its financing activities in relation to net zero transition.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.