SMFL's SDGs Management

We are promoting commitment to SDGs as one part of Our Vision in the "SMFL Way," with the aim of being "Chosen for its commitment to SDGs." Not just SMFL, but all corporate citizens have a responsibility in creating a sustainable society. Of this, there is no doubt. Through our businesses, we aim to help solve social issues that have mounted around the world, such as climate change, environmental pollution, and the depletion of natural resources. We express this commitment in the words "planet-friendly leasing."

"Planet-friendly leasing" expresses our commitment to promoting decarbonization, namely, renewable energy, and advancing toward a circular economy. This is what we have been doing since April 2023 in our current Medium-Term Management Plan to overlap the expansion of social value and economic value.

Sustainability and digital transformation (DX) are at the core of SMFL's unique "Finance x Business x DX" concept, which underpins the current Medium-Term Management Plan. This concept entails not only meeting our customers' expressed needs, but also about identifying their latent needs and unseen challenges. We are working to instill this concept throughout SMFL as a common language and understanding that is essential to achieving the SMFL Way.

Sustainability Governance

SMFL has established the SDGs Promotion Committee, chaired by the President, as a central body within our sustainability governance framework and commitment to SDGs. The committee is responsible for formulating SDGs-related policies, discussing and promoting measures, and making submissions and reports to the Management Committee. Representatives from all business units participate, with the Sustainability Promotion Department, which was elevated from the Sustainability Promotion Section in April 2023, serving as the committee's secretariat and advancing sustainability-related measures.

Moreover, policies decided by the committee are communicated and disseminated to all officers and employees through SDGs Officers appointed in each department.

These SDGs Officers also act as instructors for SDG-related study sessions in each department, and spearhead the implementation of various sustainability initiatives. In addition to enhancing our circular economy promotion structure, as a part of our SDG initiatives, we launched in December 2023 a collaborative project team with the SMBC Group while putting into place a Company-wide working team. This initiative aims to leverage the resources of the SMBC Group to strengthen the promotion of the circular economy.

Diagram of SMFL's SDGs Promotion Structure. Under the Management Meeting, there is an SDGs Promotion Committee. The Committee Chairman is the President, the Vice Chairman is the Executive Officer in charge of the Planning Department, and the Secretariat is managed by the Sustainability Promotion Department. The SDGs Officer and all officers and employees are positioned below, with members from all departments participating.