Promoting SX through Value Creation
Today’s society has reached a point of profound transition in terms of both structure and value systems. Securing sustainability transformation (SX) is thus considered to be a central issue for many businesses.
The Resona Group has long specialized in retail financing operations rooted in local communities. Accordingly, we have focused on tackling the issues that individual and corporate customers confront, striving to help them find solutions by providing value through our business operations.
This page showcases some key aspects of our management framework aimed at sustainably enhancing social and corporate value in connection with what the Resona Group offers to all stakeholders, including customers, shareholders, and society, as well as employees, even as it promotes SX through value creation.
A Management Framework for Promoting SX through Value Creation, Starting with How to Embody the Group Purpose
1. Basic Concepts
The Resona Group’s Purpose is “Beyond Finance, for a Brighter Future.” This Purpose encompasses the “future society we hope to realize,” the starting point of our efforts to address social issues through business activities even as we work to sustainably enhance social and corporate value.
In line with the concepts described above, we have positioned SX as a management approach aimed at updating our mode of value creation rather than as simply a way of accumulating a social contribution track record.
2. The Purpose and the “Future Society We Hope to Realize”
The Resona Group characterizes the future society it hopes to realize as follows.
- A society brimming with vitality
- A society where people can live in happiness and prosperity
- A sustainable society connected to the next generation
To achieve these, we are striving to maintain deep roots in each community in which we operate even as we continue to create new value through innovation that transcends the framework of finance.
3. Our Positioning of Materiality
We aim to maintain the trust of society and customers and remain their financial group of choice. At the same time, we strive to secure the unwavering support of stakeholders, including shareholders and employees, even as we achieve sustainable growth. To this end, starting with the “future society we hope to realize” encompassed by the Purpose, we identified the areas we need to tackle first as well as in-house issues we need to address to realize the future society. Thus, these areas and issues have been newly defined as our materiality.
4. Details of the Materiality
Currently, the Resona Group’s materiality consists of the following components.
- Development and vitalization of regional societies through industrial growth
- Creation of next-generation retail finance
- Realization of security and abundance in daily life amid declining birth rates and aging societies
- Realization of an abundant future society spanning future generations
- Strengthen human capital (value creation and well-being)
- Establish resilient governance
Because of correlations among all the various items, our materiality is considered highly relevant to our value creation endeavors to benefit stakeholders, including customers, shareholders and society as a whole as well as employees.
5. Inclusion into Our Business and Strategy
Materiality is now reflected in our medium-term management plan (MMP) and otherwise incorporated in our strategies. Therefore, we are taking tangible action through day-to-day business activities to address materiality.
6. Progress Management Using Materiality KPIs
The Resona Group has also identified materiality KPIs in order to assess and manage the status of materiality and outcomes of its efforts to address it.
The main indicators are as listed below.
| Indicators related to customers and businesses |
Value Creation Capability Indicator Year-end balances of corporate deposits and loans, along with succession-related income Residential housing loan origination, along with AUM balance Number of Group App downloads, along with cashless payment transaction volume |
|---|---|
| Indicators related to the environment and society |
Retail Transition Financing Target Carbon Neutrality Target (Scope 1 + 2) Portfolio GHG emissions (Scope 3) |
| Indicators related to human capital and management platforms |
Well-Being Indicator KPIs for six drivers of the human resource strategy, along with the behavioral change and growth score Ratio of women among officers and senior management members |
7. Outcomes
Through the initiatives described above, the Resona Group aims to deliver the value defined below to each stakeholder group.
| Customers | Value that enables them to achieve business growth with ease of mind and prompts them to make the Resona Group their first choice |
|---|---|
| Shareholders | Sustainable corporate value and greater capital efficiency |
| Society | Sustainable development of communities and industries as well as the preservation of the sustainable environment |
| Employees | Improvement in staff well-being, a tangible feeling of personal growth, opportunities to exercise value creation capabilities |