Material Issues

SMFL Group aims to achieve sustainable growth together with society and, to this end, has identified material issues in pursuit of SDGs-driven management.
These material issues serve as important guidelines for determining the direction of the SMFL Group's management decisions and business activities. In 2026, taking into account the expansion of business domains and changes in the social environment, the SMFL Group reviewed the materiality that had been established in 2020. In this review process, the SMFL Group referred to international sustainability disclosure frameworks and industry trends, and identified sustainability issues through discussions with relevant departments. Each identified issue was analyzed and evaluated from two perspectives; "the positive and negative impacts of the SMFL Group's activities on the environment and society", and "the impacts of environmental and social opportunities and risks on the SMFL Group's business and financial performance". Based on discussions at the SDGs Promotion Committee, followed by deliberation at the Management Committee and approval by the Board of Directors, the SMFL Group's material issues were finalized.
Going forward, the SMFL Group will continue to regularly review the appropriateness of its materiality in light of dialogue with stakeholders and changes in the business environment, and reflect the results in initiatives aimed at enhancing corporate value while contributing to the resolution of social issues.

SMFL Group "Material Issues"

Material Issues

 Basic Concept Our Goals Material Issue KPIs SDGs focus measures
Environment

Leveraging our strengths in Finance × Business × DX, we will contribute to the realization of a decarbonized society and a circular economy, as well as the conservation of the natural environment.
  • Contribution to carbon neutrality
  • Contribution as a platformer for the circular economy
  • Conservation of natural capital
  • Group consolidated GHG emissions: Achieving carbon neutrality by 2050 (Group consolidated reduction of Scope1,2 by 42％ by FY2030 compared to FY2024)
  • Targets to contribute to Scope3 reduction: Increasing the ratio of new-technology fleet to 80% or more by FY2030 / Implementation of calculation and disclosure of Scope 3 Category 13 for real estate owned by SMFL + SMFL MIRAI Partners by FY2030
  • Targets to contribute to reducing GHG emissions in society: Achieving 1.5 GW of domestic solar equity power generation output by FY2030
  • Sustainability-related businesses: Cumulative contract value target of ¥1 trillion in five years by FY2030 (Cumulative contract value target of ¥2 trillion from FY2020)
SDGs 7 SDGs 12 SDGs 13
Coexistence with Society

Through the development of resilient logistics and infrastructure, and support for communities and children both in Japan and overseas, we will work toward coexistence with local communities and the alleviation of poverty and inequality affecting the next generation.
  • Solving regional issues and building sustainable communities
  • Contribution to the sustainable development of countries around the world
  • Contribution to the growth of the next generation
  • Continued initiatives to promote coexistence with local communities and to address poverty and inequality affecting children, who will shape the next generation
  • Sustainability-related businesses: Cumulative contract value target of ¥1 trillion in five years by FY2030 (Cumulative contract value target of ¥2 trillion from FY2020)
SDGs 1 SDGs 11
Diversity and Human Rights

By fostering a corporate culture that values diversity, enhancing employee well-being, and respecting human rights throughout the entire supply chain, we aim to realize a society in which everyone can thrive in their own way.
  • Development of talent who take on challenges and the creation of fulfilling workplaces
  • Building organizations that leverage diversity as a strength and enhancing well-being
  • Respect for the human rights of all stakeholders
  • Ratio of women in management positions: Achieving 20% by FY2030
  • Paternity leave utilization rate: Maintain 100％ by FY2030
  • Average paid leave utilization rate: Maintain 90％ or higher
  • Engagement survey score: Maintain a score of 70 or above
  • Number of employees completing training in priority areas (e.g., global business, finance): Cumulative total over three years by FY2028 to be at least three times higher than FY2023-2025
SDGs 3 SDGs 5 SDGs 8
Innovation

Through the development, introduction, and utilization of new technologies such as AI, and through co-creation with stakeholders, we will anticipate changes of the times and generate innovation.
  • Promotion of innovation through co-creation
  • Improving operational efficiency and productivity through DX
  • Number of companies provided with DX solutions: Achieve 3,500 companies
SDGs 9 SDGs 17
Governance

In addition to strict compliance with laws and regulations, we will fulfill our responsibilities as a corporation by maintaining and strengthening a robust governance structure, and will act with integrity to earn the trust of society and meet customer expectations.
  • Sound management through compliance and governance
  • Further enhancement of the effectiveness of oversight functions and strengthening of appropriate and efficient execution frameworks
  • Continued initiatives to enhance compliance awareness
SDGs 16