Resona Holdings

RATING

SECTOR

Banking

WEBSITE

CONTACT

Fukagawa Gatharia W2 Bldg., 5-65,
Kiba 1-Chome, Koto-ku, Tokyo
Tel: 81-3-6704-3111

STOCK EXCHANGE

LISTING

  • #642 Global 2000 (2021)
  • #1335 Sales in Global 2000 (2021)
  • #505 Profit in Global 2000 (2021)
  • #56 Assets in Global 2000 (2021)
  • #1772 Market Value in Global 2000 (2021)

EMPLOYEES

20,760

CHIEF SUSTAINABILITY OFFICER

The company does not disclose this information.

AWARDS

  • Bronze Prize at ESG Finance Awards Japan
  • Danjo Ikiiki Award under Osaka Prefecture’s Danjo Ikiiki Business Commendation Program
  • 3-star verification as an Osaka City LGBT Leading Company
  • Minister of the Environment Award for Principles for Financial Action for the 21st Century
  • Selection Committee Chairman’s Award for Principles for Financial Action for the 21st Century
  • Prime Ministerial Award for Special Missions (Gender Equality) of Awards for Women Empowering Companies
  • Minister of State Award for Special Missions (Gender Equality) of Awards for Women Empowering Companies
  • Highest Gold Rating in the PRIDE Index
  • Mayor’s Commendation as an Osaka City Leading Company in Women’s Participation
  • White 500, Organizations with Excellent Health and Productivity Management (2018)
  • Nadeshiko Brand

CONTENT SOURCE

FURTHER READING

Ellie Weiss

Resona Holdings

SECTIONS :  Sustainability •  Targets    Evaluation  •  Key Points  •  Overview

Company Activity

Resona Holdings is the holding company of Resona Group made up of mostly Resona Bank, Saitama Resona Bank, and other banks descending from Daiwa Bank and Sahi Bank. They are now the fifth largest banking group in Japan. They were founded in 2001 and are headquartered in Tokyo, Japan. 

The bank is split up into segments: Consumer Banking, Corporate Banking, Market Trading, Kansai Mirai Financial Group, and Others. 

  • The Consumer Banking segment provides consulting services regarding consumer loan, asset management and asset succession to individual customers.
  • The Corporate Banking segment offers services such as corporate loan, trust asset management, real estate, corporate pension, and asset succession to corporate customers.
  • The Market Trading segment deals with short-term lending, borrowing, bond purchase and sale, and derivatives trading businesses.
  • The Kansai Mirai Financial Group segment handles the operations of Kansai Mirai Financial Group, Inc. The Others segment includes management of businesses not part of the other segments.

Company Sustainability Activity

Resona’s Sustainability Challenge 2030 lays out the company’s plans to align with the 2030 UN SDGs. 

The plan focuses on four key areas to base their more specific commitments on: local communities, low birthrate and aging society, environment, and human rights.

Local communities  – They aim to help revitalize local economies with three commitments. (all SDGs). Realizing a sustainable society together with customers through constructive dialogue on the themes of environmental and social issues and other measures.

Revitalizing local economies and creating livable communities through supporting the growth of companies, including nurturing of start-up companies, and the operational efficiency of social infrastructure.

Increasing convenience in society and daily lives through the provision of innovative financial services accessible to all people at any time and anywhere.

Low birthrate and aging society  – They commit to help eliminate anxiety triggers from low birth rates and an aging society. Improving customers’ lifetime quality of life through the support for formation and succession of assets enabled by financial consulting and financial education to enhance financial literacy.

Environment – They commit to responding to global warming and climate change. Realizing low-carbon and circular society by taking action with society to reduce environmental burden such as accelerating the use of renewable energy and reducing greenhouse gas emissions.

Human rights – They commit to the fight for diversity and inclusion. Creating a society in which all people respect human rights and diversity and can fulfill their potential while attaining work-life balance.

Highlights

  • They are increasing dialogue with the public about environmental and social issues 
  • Revitalizing local economies and creating livable communities through supporting the growth of companies, including nurturing of start-up companies, and the operational efficiency of social infrastructure
  • Increasing convenience in society and daily lives through the provision of innovative financial services accessible to all people at any time and anywhere
  • Improving customers’ lifetime quality of life through the support for formation and succession of assets enabled by financial consulting and financial education to enhance financial literacy
  • Realizing low-carbon and circular society by taking action with society to reduce environmental burden such as accelerating the use of renewable energy and reducing greenhouse gas emissions
  • Creating a society in which all people respect human rights and diversity and can fulfill their potential while attaining work-life balance

Targets

Governance

  • They will promote dialogue on the SDGs with investee companies, reach an SDG-related loan balance of 126 billion yen, advance ESG integration by incorporating ESG into investment decisions, and promote engagement and exercising of voting rights at investee companies through an external asset management company
  • They will provide SDGs and ESG-related financial products to 28,500 customers with a total balance of 31.2 billion yen 
  • They will provide funding support to 140 companies through seminars/consulting and provide 710 companies with financing without face-to-face contact 
  • They aim to achieve a 30% female line manager ratio, a 2.2% employment rate for those with disabilities, a 100% male spouse maternity leave rate, an 80% male childcare leave rate, an average of 14 paid leave days used per employee and provide human rights training such as on LGBT and harassment prevention 

Local communities

  • They will promote dialogue on the SDGs with investee companies, reach an SDG-related loan balance of 126 billion yen, advance ESG integration by incorporating ESG into investment decisions, and promote engagement and exercising of voting rights at investee companies through an external asset management company
  • They will provide SDGs and ESG-related financial products to 28,500 customers with a total balance of 31.2 billion yen 
  • They will promote constructive dialogue with stakeholders and investors, disseminate information through SDG-related events, and enhance integrated reports, websites, etc. 
  • Revitalizing local economies and creating livable communities action plan:
  • They will provide funding support to 140 companies through seminars/consulting and provide 710 companies with financing without face-to-face contact 
  • They aim to achieve 16,000 business matching cases, host business meetings and seminars using Gr Business Plaza, achieve 106.5 billion yen PPP balance and project stock, as well as organize three seminars and networking sessions for overseas expansion support, etc. 
  • They will also capture 225 FA contracts, provide 160 solution proposals, and implement one-stop solution sales 
  • They aim to get 1700 users on the Resona cashless platform, achieve three million app downloads, and advance and promote the utilization of a non-financing rating model to determine the next generation retail business model 
  • They will increase sales locations open on holidays to 34, develop next-generation branch systems, expand TV contact points and test self-serve terminals
  • They will have trial operations of the model branch under the future visions (simplified branch) and facilitate family business transitions by family members or proxies of elderly  

Environment

  • They are conducting scenario analysis for advancing TCFD-compliance and consider Scope 3 measurement methods
  • They have reduced CO2 emissions and electricity usage over the previous years
  • They host environmental real estate-related seminars and proactively support environmental preservation activities by providing financing to customers involved in the promotion of renewable energy use 
  • They are transforming their business processes with digitalization, paperless services and using RPA
  • They are increasing the rate of digital mortgage contracts, promoting consolidation of servers and branch locations, digitizing and improving the efficiency of businesses and local authorities, and considering a development structure that can easily reflect user feedback
  • They are increasing productivity through improving IT literacy in-house using training on finance, data science and programming, etc. 

Human rights

  • They aim to achieve a 30% female line manager ratio, a 2.2% employment rate for those with disabilities, a 100% male spouse maternity leave rate, an 80% male childcare leave rate, an average of 14 paid leave days used per employee, and provide human rights training such as on LGBT and harassment prevention 
  • They are cultivating SDG consultants starting from issues confronting customers and society
  • They have increased participants in the RE: Heart Club activities over previous years

Progress

  • Their outstanding balance of environmentally conscious loans for corporate customers (in billions of yen) went up from 181.7 in 2017 to 209.4 in 2019
  • Their CO2 emissions (in tons) went down from 73,777 in 2017 to 66,266 in 2019
  • Their city gas consumption (thousands of cubic meters) went up from 45,344 in 2017 to 48,242 in 2019
  • They recycle 100% of their paper 
  • The percentage of employees with disabilities went up from 2.14% in 2018 to 2.20% in 2020
  • The percentage of female line managers went up from 26.6% in 2017 to 29.1% in 2019 
  • They have had no cease and desist orders issued by authorities, suspensions of business operation due to misconduct, or criminal accusations of a non-compliance with laws in the past 4 years 
  • The amount of SDG-related loans (in billions of yen) went up from 47.0 in 2017 to 159.5 in 2019
  • The outstanding balance of socially responsible investments (in billions of yen) went up from 1.5 in 2017 to 36.5 in 2019

Certificates

UN Sustainable Development Goals

UN SDGs Compliance

SDG 1: No Poverty

  • They will deliver asset formation support products to 707,000 users and achieve 257,00 users of savings products
  • They will organize 393 financial seminars and consultations on inheritance and succession, provide practical financial education opportunities suitable for each generation, and enhance market information dissemination capability and customer contact points by strategists

SDG 2: Zero Hunger

  • They will provide SDGs and ESG-related financial products to 28,500 customers with a total balance of 31.2 billion yen 

SDG 3: Good Health and Well-Being

  • They commit to helping eliminate anxiety triggers from low birthrates and an aging society 
  • They have increased participants in the RE: Heart Club activities over previous years 

SDG 4: Quality Education

  • Improving customers’ lifetime quality of life through the support for formation and succession of assets enabled by financial consulting and financial education to enhance financial literacy
  • They are providing human rights training such as on LGBT and harassment prevention 

SDG 5: Gender Equality

  • They will have trial operations of the model branch under the future visions (simplified branch) and facilitate family business transitions by family members or proxies of elderly 

SDG 6: Clean Water and Sanitation

  • They will promote dialogue on the SDGs with investee companies, reach an SDG-related loan balance of 126 billion yen, advance ESG integration by incorporating ESG into investment decisions, and promote engagement and exercising of voting rights at investee companies through an external asset management company

SDG 7: Affordable and Clean Energy

  • They are conducting scenario analysis for advancing TCFD-compliance and consider Scope 3 measurement methods
  • They have reduced CO2 emissions and electricity usage over the previous years

SDG 8: Decent Work and Economic Growth

  • They will deliver asset formation support products to 707,000 users and achieve 257,00 users of savings products
  • They will enhance structure development and information dissemination to permeate and fulfill fiduciary duty 
  • They aim to achieve a 30% female line manager ratio, a 2.2% employment rate for those with disabilities, a 100% male spouse maternity leave rate, an 80% male childcare leave rate, and an average of 14 paid leave days used per employee

SDG 9: Industry, Innovation and Infrastructure

  • They will provide funding support to 140 companies through seminars/consulting and provide 710 companies with financing without face-to-face contact 
  • They aim to achieve 16,000 business matching cases, host business meetings and seminars using Gr Business Plaza, achieve 106.5 billion yen PPP balance and project stock, as well as organize three seminars and networking sessions for overseas expansion support, etc. 

SDG 10: Reduced Inequalities

  • They aim to achieve a 30% female line manager ratio, a 2.2% employment rate for those with disabilities, a 100% male spouse maternity leave rate, an 80% male childcare leave rate, an average of 14 paid leave days used per employee and provide human rights training such as on LGBT and harassment prevention 

SDG 11: Sustainable Cities and Communities

  • They will promote constructive dialogue with stakeholders and investors, disseminate information through SDG-related events, and enhance integrated reports, websites, etc. 

SDG 12: Responsible Consumption and Production

  • They aim to get 1700 users on the Resona cashless platform, achieve three million app downloads, and advance and promote the utilization of a non-financing rating model to determine the next generation, retail business model 
  • They will increase sales locations open on holidays to 34, develop next-generation branch systems, expand TV contact points and test self-serve terminals

SDG 13: Climate Action

  • They host environmental real estate-related seminars and proactively support environmental preservation activities by providing financing to customers involved in the promotion of renewable energy use 
  • They are transforming their business processes with digitalization, paperless services and using RPA 

SDG 14: Life Below Water

  • They will provide SDGs and ESG-related financial products to 28,500 customers with a total balance of 31.2 billion yen 

SDG 15: Life on Land

  • They will provide SDGs and ESG-related financial products to 28,500 customers with a total balance of 31.2 billion yen 

SDG 16: Peace, Justice and Strong Institutions

  • They will promote dialogue on the SDGs with investee companies, reach an SDG-related loan balance of 126 billion yen, advance ESG integration by incorporating ESG into investment decisions, and promote engagement and exercising of voting rights at investee companies through an external asset management company

SDG 17: Partnerships for the Goals

  • They aim to achieve 16,000 business matching cases, host business meetings and seminars using Gr Business Plaza, achieve 106.5 billion yen PPP balance and project stock, as well as organize three seminars and networking sessions for overseas expansion support, etc.

Evaluation

Resona does a great job with their reports. They are detailed, clear, transparent, and cover all areas of their business. In these reports they lay out their many initiatives and show how they line up with all of the different UN SDGs. Resona does a lot of work in many different aspects of sustainability, touching on environmental, social, and economic issues. 

They have strong goals and commitments to which they lay out clear and specific targets to achieve them. They also have a good number of awards, listings, and certificates to give their work further credibility. 

They are part of a collective aimed at driving a transition to net zero emissions in Asian electric utilities by cutting emissions, strengthening disclosure, and improving governance of climate-related risks. The program is backed by 13 institutional investors and stewardship providers, responsible for $8.8 trillion in assets under management. 

The bank also committed to deploying 10 trillion yen ($92 billion) for sustainable finance by 2030 to help Japan seek alternative revenue sources as they face low-interest rates and declining populations. 

With all of this said, Resona has not been improving in a handful of areas within their business. Their electricity consumption, gasoline consumption, and volume of water input/discharge have all gone up. Their overall waste has increased while the recycling rate has decreased. The percent of women in new graduate recruitment has gone down and the number of occupational accidents occurring has increased.  

In addition, in 2020 they had a scandal in which they lost data, mostly of names and addresses, of 14,561 of their customers. Afterwards they promised that they are implementing more training and safety precautions to help alleviate the issue and prevent further occurrences. 

Because they are currently not improving in a lot of important areas, Resona Holdings has been rated a C.

Analyst Outlook: Positive

Resona Holdings has a clearly laid out plan for the future, and for this reason, has received a “positive outlook”. 

Key Points

  • The bank publishes transparent and thorough reports laying out their specific goals as they move forward
  • They align their initiatives up with the UN SDGs
  • Resona does a lot in terms of donating money to support their community
  • They have made a lot of progress over the past few years, but are definitely not reaching all of their goals
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