Start of Handling for "FFG Positive Impact Profile"

Fukuoka Financial Group, Inc. (President and CEO Hisashi Goto) announces that its subsidiaries, The Fukuoka Bank, Ltd., The Kumamoto Bank, Ltd., and The Eighteenth Shinwa Bank, Ltd., have begun handling the "FFG Positive Impact Profile." This marks the first handling in Japan of an impact assessment service that includes obtaining a third-party opinion from the Japan Credit Rating Agency, Ltd. (JCR) to confirm its conformity with the Impact Protocol*.

What is the "FFG Positive Impact Profile"?

This service comprehensively analyzes the impact (positive and negative) that a client's business activities have on the environment, society, and economy. It then sets KPIs to enhance identified positive impacts (positive contributions) and to mitigate and reduce negative impacts (negative effects), providing ongoing support to improve the client's corporate value.

This is an impact assessment service that ensures transparency by obtaining a third-party opinion from JCR.

*A framework established by the United Nations Environment Programme Finance Initiative (UNEP FI) on how financial institutions should analyze and manage the impact of their portfolios in accordance with the requirements of the Comprehensive Impact Approach and the Principles for Responsible Banking.

Product Overview

Name

FFG Positive Impact Profile

Target Clients

Corporate clients who are practicing (or considering practicing) sustainability/SDGs initiatives through their corporate activities.

*Certain conditions apply.

Evaluation Criteria/Principles

United Nations Environment Programme Finance Initiative (UNEP FI) / Impact Protocol

Fees

Bank's prescribed fees (includes cost of obtaining third-party opinion)

Validity Period

3 to 5 years

Third-Party Evaluation Organization

Japan Credit Rating Agency, Ltd. (JCR)

A third-party opinion (opinion) will be obtained from Japan Credit Rating Agency, Ltd. (JCR) to confirm conformity with the "Impact Protocol" and ensure the transparency of the evaluation of the bank's assessment.

1. At the time of application

When applying for this product, clients will use the SDGs scoring assessment service "Sustainable Scale Index"* to take stock of their sustainability initiatives and organize priority issues.

*A service developed in collaboration by group company Sustainable Scale Co., Ltd. and Kyushu University to visualize ESG/SDGs initiatives.

(Overview) https://www.s-scale.co.jp/service/

2. Impact Analysis, Assessment, and Setting of Goals/KPIs

Based on the "Impact Protocol" established by the United Nations Environment Programme Finance Initiative (UNEP FI), the client's sustainability initiatives and corporate activities will be analyzed for their relevance, impacts (effects) on the environment, society, and economy will be identified, and goals/KPIs (Key Performance Indicators) will be set for each.

3. Monitoring and Ongoing Support

Progress towards the set goals/KPIs will be regularly monitored, and ongoing support will be provided to achieve them.

*Please note that we may not be able to meet your requests when using this product.

The third-party opinion from JCR on the FFG framework can be viewed at (https://www.jcr.co.jp/greenfinance/)

About Fukuoka Financial Group, Inc.

Fukuoka Financial Group (FFG) is a broadly expanding regional financial group established in 2007, with a network spanning the entire Kyushu region. Centered around four regional banks with long histories rooted in Kyushu – The Fukuoka Bank, Ltd., The Kumamoto Bank, Ltd., The Eighteenth Shinwa Bank, Ltd., and The Fukuoka Chuo Bank, Ltd. – and the digital bank "minna no ginko," FFG operates a group structure with a wide range of functions, including securities firms, credit card companies, and consulting firms.

Company Name: Fukuoka Financial Group, Inc.

Head Office Location: 1-8-3 Otemon, Chuo-ku, Fukuoka City, Fukuoka Prefecture, 810-8693

Representative: Hisashi Goto, President and CEO