ORIX Group

ORIX discloses a target to increase the percentage of female directors and employees in management positions to 30% by 2030. In addition, ORIX subsidiary, Robeco, publishes case studies where it has engaged successfully on sustainability themes and impact topics. The subsidiary also publishes case studies where it has voted for shareholder proposals but they were declined.

ORIX subsidiary, Robeco, identified top 200 emitters in its investment universe with which it engages on climate change topics. It requires high carbon-emitting companies to adopt credible transition plans towards achieving net zero emissions by 2050 or sooner. The subsidiary is also a member in Climate Action 100+. Robeco also identifies biodiversity-related impacts as an engagement topic and expects its investee companies to commit to zero deforestation, conduct biodiversity impact assessments, engage in biodiversity restoration, embrace a circular approach in their production, improve sustainability reporting and protect both human and land rights in the communities where commodities are sourced from.

ORIX has a publicly available policy statement committing it to respect human rights and the ILO core labour rights. It has a grievance mechanism accessible to all workers, external individuals and communities to raise human rights complaints or concerns. The financial institution discloses the proportion of women in its total direct operations workforce for each employee category. ORIX has a policy prohibiting bribery and corruption and provides a grievance mechanism for stakeholders to raise concerns and complaints regarding bribery and corruption. The financial institution discloses a global tax strategy.

ORIX has an opportunity to assign responsibility for sustainability to the group’s highest governing body and link the remuneration of its executive team to sustainability performance criteria. The financial institution could also commit to gender equality and women’s empowerment since women are underrepresented on the board of directors with only two out of 12 board members being women. In addition, ORIX also has an opportunity to reach at least 40% female representation in senior leadership positions and discloses the ratio of basic salary and remuneration of women to men in its total direct operations workforce for each employee category. ORIX could describes its engagement approach to engagement on sustainability themes and impact topics with its clients and investees across its financing activities.

There is no evidence that ORIX discloses a target to reach net-zero financed emissions by 2050. Furthermore, the financial institution could disclose its financing activities devoted to climate solutions. No evidence was also found regarding ORIX approach to fossil fuels that spans across the fossil fuel value chain and assets under management, such as the amount or share of finance it directs towards fuels, or its stance on financing companies with new fossil fuel projects. The financial institution could commit to minimising the negative impacts it has on nature and biodiversity.

ORIX has an opportunity to describe a comprehensive process for identifying its human rights risks and impacts across all its activities, especially its financing activities. It could also disclose the proportion of its total direct operations workforce for each employee category by age group. While the financial institution discloses that it directs finance towards small- and medium-sized enterprises (SMEs), it could provide the amount of financing it directs towards them. To provide transparency on financial inclusivity, the financial institution has an opportunity to disclose the amount of finance directed towards usually-excluded groups or low-income developing countries.