Basic Approach to Sustainability

The development of infrastructure that serves as the foundation of socio-economic activities is a key element in realizing a sustainable society, and it is also one of the Sustainable Development Goals (SDGs: Goal 9). 
The JSF Group provides a variety of services, including the loans for margin transactions business, as a company that supports the infrastructure of Japan’s securities and financial markets, and works to improve the liquidity of the domestic securities and financial markets, as well as convenience for market participants. 
Through these activities, we aim to contribute to initiatives to realize a sustainable society, including supporting market participants who are engaged in similar initiatives.
Because it is responsible for the infrastructure of the securities and financial markets, the Group believes it is important to build a system that provides stable operations regardless of circumstances. To this end, we must not only respond to disasters in a narrow sense, but also ensure the stability and high reliability of our business base. 
In addition, we believe that there are issues toward which the Group can also contribute by utilizing the know-how and other resources that it has cultivated over the years. Based on this perspective, we are currently aware of the following material issues. Our Group recognizes the roles expected of it in addressing these material issues and will advance various initiatives while flexibly responding to changes in the social environment.

Material Issues That We Recognize

Classification

Item

Issues

Ｅ

Climate change
  • Promote reduction in environmental impact

Ｓ

Education
  • Promote financial and economics-themed education activities
  • Promote academic research activities

Human resources
  •  Promote diversity
  • Develop and secure human resources and create a pleasant workplace

Human rights
  •  Respect human rights, prohibit discrimination and respect diversity
  • Prohibit all types of harassment

Capital market
  • Enhance functions as infrastructure for Japan’s securities and financial markets
  • Contribute to overseas securities and financial market infrastructure

G

Corporate governance
  • Continuously improve corporate governance

Business continuity planning

(BCP)
  • Stably operate business that is not affected by disasters, etc.

Compliance
  • Operate business based on a high awareness of compliance

Risk management
  • Implement the risk appetite framework (RAF)

Initiatives

Classification

Item

initiatives

Ｅ

Climate change

Ｓ

Education
  • Hold a lecture on “Financial and Securities Markets and Industry-Academia Alliance—Blockchain Case Studies” at the Graduate School of
  • Engineering at the University of Tokyo
  • Hold various seminars on margin transactions
  • Conduct joint empirical research with the University of Tokyo (Securities Finance Transactions Using Distributed Ledger Technology)

Human resources
  • Provide support for childbirth, childcare and nursing care
    - Introduce telework Company-wide
    - Monitor employee engagement

Human rights
  • Conduct harassment prevention training for new managers
  • Establish an Internal Reporting Desk and an External Reporting Desk

Capital market
  • Provide technical assistance and investment in securities finance in Indonesia

G

Corporate governance
  • Strive to enhance governance as a Company with a Nominating Committee, etc.
    - Ensure that the majority of directors are independent outside directors
    - Ensure that the chairpersons of the Board of Directors and the three statutory committees are independent outside directors
    - Establish a dedicated department to address various corporate governance issues with a sense of urgency

Business continuity planning

(BCP)
  • Continue to strengthen the BCP system and cyber security system to ensure stable business operations as a part of the infrastructure of securities and financial markets

Compliance
  • Prepare manuals and establish Compliance Enhancement Month

Risk management
  • Implement RAF and establish a system to integrate business management and risk management