Approved Initiatives and External Recognition

Compiled in October 2011 under the leadership of Japan's Ministry of the Environment and signed by around 300 financial institutions, the Principles for Financial Action toward a Sustainable Society (commonly known as the Principles for Financial Action for the 21st Century) serve as a guideline for action for financial institutions that wish to fulfill the responsibilities and roles necessary for the creation of a sustainable society.

SMFL was selected by the Principles for Financial Action for the 21st Century Best Practices Selection Committee and received the Minister of the Environment Award for Best Practice (Overall category) in FY2023.

The Poseidon Principles were established in June 2019 by 11 financial institutions in Europe and the United States with the aim of contributing to the shipping industry's commitment to mitigating climate change risk from a financial perspective, based on the medium- to long-term reduction target for greenhouse gases emitted from international shipping, which was adopted by the International Maritime Organization in April 2018.

SMFL was the world's first leasing company to join the existing members of the Poseidon Principles in December 2020.

The ESG lease certification program for excellent efforts is an initiative put forward by Japan's Ministry of the Environment. Under this initiative, the Ministry certifies designated leasing companies that have secured outstanding achievement under the ESG lease promotion project*.

SMFL has received certification for its excellent efforts for two consecutive years since FY2023. Meanwhile, 10 out of 120 designated leasing companies were certified for their excellence efforts in FY2024.

• *The goal of the project is to contribute to the preservation of the global environment by promoting the use and spread of equipment that are designed to advance decarbonization as stipulated by Japan's Ministry of the Environment through the reduction of lease fees. By evaluating the ESG attributes of leasing companies as well as small and medium enterprises (SMEs), the project provides subsidies of up to 4% of the total lease fee when SMEs use designated leasing companies to install equipment designed to advance decarbonization.

Under the Nikkei Sustainable Management Survey (Smart Work Edition), efforts to maximize organizational performance through three initiatives: use of human resources, investment in human resources, and use of technology are defined as smart work management. These efforts are evaluated on a 5-star scale.

SMFL received a 4-star rating in the Nikkei Sustainable Management Survey (Smart Work Edition).

Based on the Act on Advancement of Measures to Support Raising Next-Generation Children, Kurumin certification is a system under which companies that have formulated a general employer action plan and achieve certain goals specified under the plan while meeting certain criteria are certified as a company supporting the development of the next generation by Japan's Minister of Health, Labour and Welfare.

SMFL received “Platinum Kurumin” certification from the Ministry of Health, Labor and Welfare as a childcare support which is particularly outstanding among companies proactive in supporting the development of the next generation.

Based on the Act on Promotion of Female Participation and Advancement in the Workplace, Eruboshi certification is a system under which proprietors of a business that have met certain requirements, including excellent implementation of initiatives for the promotion of female participation and advancement are certified by Japan's Minister of Health, Labour and Welfare.

SMFL has received 2-star Eruboshi certification.

The PRIDE Index is used to evaluate initiatives aimed at supporting sexual minority employees, including the LGBTQ+ community in the workplace, established by the general incorporated association work with Pride.

SMFL received the highest evaluation of Gold in the PRIDE Index 2024 in recognition of its initiatives aimed at supporting sexual minority employees, including the LGBTQ+ community in the workplace. SMFL has continued to receive this accreditation since 2020.

The Certified Health & Productivity Management Outstanding Organization program, jointly sponsored by Japan's Ministry of Economy, Trade and Industry (METI) and the Nippon Kenko Kaigi, recognizes outstanding large companies as well as SMEs that are implementing Health & Productivity Management based on efforts to address local health issues and the health promotion initiatives put forward by the Nippon Kenko Kaigi.

SMFL was recognized as a Health & Productivity Management Outstanding Organization (White 500) under the Large Enterprise Category in March 2025. This is the fourth consecutive year to be recognized as a Health & Productivity Management Outstanding Organization under the Large Enterprise Category, and a third consecutive year to be recognized as a White 500 organization, which is awarded to the top 500 enterprises.

The Sports Yell Company program is a certification system of the Japan Sports Agency, which certifies companies actively promoting measures to improve employees' health through sport.

SMFL has been certified as a Sports Yell Company for three consecutive years since 2022.

Based on the Act for Partially Amending the Act on Facilitation of Information Processing, the Digital Transformation (DX) Certification System established by Japan's Ministry of Economy, Trade and Industry (METI) is a system that certifies business operators that implement outstanding initiatives in line with the Guidelines for the Operation and Management of Information Processing Systems formulated by the government.

SMFL was certified as a DX Certified company under the DX Certification System in April 2022.