Based on our medium-term vision, the food and agriculture, retail, and investment divisions work toward achieving our purpose and resolving material issues. Together, these divisions work to achieve appropriate economic returns through investments, loans, and engagements (supporting a wide range of businesses including consultation and providing solutions). At the same time, divisions support investee, borrower, and stakeholder efforts to reduce negative environmental and social impacts while generating positive impacts.
We use impact measurement and management (IMM) to visualize and quantitatively manage the impact of our investments, loans, and business support activities on environmental and social issues.
Finance Cases Designed to Generate Impact
Impact Investment Initiatives
The Norinchukin Bank launched an investment program in fiscal 2022 allowing for private equity fund investments in cooperation with Group company Norinchukin Zenkyoren Asset Management Co., Ltd. (NZAM). As of March 2025, four funds have invested a total of ¥11.2 billion, aiming to create a positive impact on climate change, educational opportunities, healthcare and welfare, and other issues.
Investment Case Study (Apollo Impact Mission Fund)
This fund invests in companies in North America and Western Europe for which both financial performance and environmental/social impact are mutually reinforcing. Investments are focused on the following objectives: (1) creating economic opportunities; (2) education and employment; (3) health, safety and wellness; (4) industrial and technological innovation; and (5) climate change and sustainability. These areas align with the investment objectives of Article 9 of Sustainable Financial Disclosure Regulation (SFDR). This impact measurement methods involve setting impact KPIs based on analyses of the five dimensions of impact (a methodology for comprehensively analyzing impacts generated by a company or project from the perspective of What, Who, How much, Contribution, and Risk). Additionally, this fund obtains a B Impact Assessment score from B Corp (an international certification system of B Lab, a U.S. NPO, for certifying environmentally and socially conscious companies that provide a high level of public benefit). To ensure objectivity and reliability, the fund’s impact measurement methods are also subjected to third-party review.
Examples of Impacts Made by Investment Clients of this Fund
| SDGs | Investment theme | Investment sector | Impact overview | Main impact KPIs |
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Climate change and sustainability | Recycled cardboard manufacture | Contributes to the circular economy by making fiber-based packaging carton board containing 85% recycled (used) paper products. Reduces waste, emissions, and raw material use to increase the environmental efficiency of the business, in particular by replacing plastic and virgin fiber packaging. |
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Health, safety and wellness | Medical staffing service | As a leading provider of healthcare human resources, the company offers a wide range of services and expertise to help address the crisis of nursing staff shortages in the U.S. Increases access to healthcare, reduces wait times, and improves patient health outcomes. Additionally, it provides appealing employment options for healthcare workers. |
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Creating economic opportunities, health, safety, and wellness | Regional supermarkets focused on Hispanic consumers | Provides a wide range of fresh, affordable, and culturally relevant food products to low and middle-income customers. By operating in underserved communities, the business offers customers greater access to nutritious food, thereby helping to improve their health and welfare. |
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出所：Apollo Impact Mission Fund Annual Impact Report 2024
Issuance of Green Bonds
The Norinchukin Bank began issuing green bonds in 2021. Funds raised through green bonds are used to invest in and finance projects that contribute to environmental improvement, including renewable energy projects. Funds are also used to measure and disclose the impact created through said investments and loans. As of March 2025 renewable energy projects using green bond funds have contributed to an annual reduction of approximately 890,000 tons of CO2 (The Norinchukin Bank share of emissions).
Positive Impact Finance Initiatives
Generating impact by financing food and agriculture–related companies
Positive Impact Finance (PIF) is a form of financing that analyzes and evaluates the holistic impact of corporate activities on society, the environment, and the economy, sets indicators and targets, and emphasizes continuous engagement through monitoring of progress.
Valor Holdings Co., Ltd. (hereinafter “Valor”) operates supermarkets, home improvement stores, drugstores, sports clubs, and so on. In its Sustainability Vision 2030, Valor prioritizes the sustainability of its business activities and the proper management of their social and environmental impact and conducts various sustainability activities that contribute to the environment, local communities, and the people.
In the course of this financing, we have comprehensively evaluated and set impact KPIs for a range of sustainability initiatives, including fostering connections with local communities through business activities, supporting children who will shape the future, and preserving environmental resources for upcoming generations. This is the first PIF project* for both the Bank and Valor and, as a financial institution with strengths in the AFF industries, we will support Valor in achieving its KPIs and realizing its vision of creating a sustainable society for children a century from now.
* Impact analysis, evaluation, and KPI setting were conducted by the Bank.
Creating Impact Through Investments in Food and Agriculture Companies
National Federation of Agricultural Cooperative Associations ("Zen-Noh") and The Norinchukin Bank entered into a capital alliance with Nisshin Seifun Group Inc. headquarters ("Nisshin Seifun"), acquiring common stock equivalent to approximately 1% of the Nisshin Seifun outstanding total (published November 17, 2020). Japan's agriculture sector is dealing with environmental and social issues that include such a shortage of farmers. Japan has a particularly low self-sufficiency rate for wheat, and the government is pushing a shift in cultivation to wheat from rice, increasing the cultivated area and production volume. A further issue is how to grow demand in line with this increase in production. Recognizing these issues, Zen-Noh and the Bank invested in Nisshin Seifun, which is the industry leader at 40% of the domestic flour market. The objective of this investment is to encourage production and expand demand for domestically produced wheat. The three parties discussed and established common goals related to this investment. We receive regular progress reports and have confirmed that efforts are having a gradual effect on encouraging domestic wheat products and increasing demand. According to Nisshin Seifun, the company has entered into joint development to secure a stable supply of domestic wheat and other domestic agricultural and livestock products, while extending its product lineup. Zen-Noh indicated that the organization is developing production and variety development based on demand with input from Nisshin Seifun. The Bank will continue to provide support for funds and smooth communications, encouraging the three-way efforts to resolve issues throughout the value chain.
Logic Model for Creating Environmental and Social Impact
Signing the Japan Impact-driven Financing Initiative
- The Norinchukin Bank signed the Japan Impact-driven Financing Initiative (the “Initiative”) on November 1, 2022.
- The Initiative, for which the Social Innovation and Initiative Foundation (SIIF) serves as the secretariat, encourages the practice of impact-oriented investment and loans. Under the Initiative, financial institutions collaborate with the shared belief that the purpose of financial institutions is to have a comprehensive understanding of their impact and take initiative in solving environmental and social issues.
- The Bank will advance our efforts to create and visualize our impacts through collaboration with other signatory institutions by participating in the activities of the Initiative and its subcommittees, and by improving our understanding of IMM.
- We also disclosed our impact financing initiatives in the Initiative Progress Report. Refer to page 45 of the following link for more information.
Regional Impact Creation and Visualization Initiatives
The Bank goes beyond financing to also provide consultation and solutions that help improve and develop the businesses and projects of businesses working to revitalize the agriculture, forestry and fisheries industries and generate regional development throughout Japan.
We conducted a trial social impact evaluation aiming to clarify the outcomes and objectives of such support, share our intentions with relevant stakeholders, utilize the results for learning and improvement, and improve external accountability. This trial evaluation enables the Bank to identify the paths to connect business activities to short-, medium-, and long-term environmental and social outcomes and clarifies the outcomes that we should measure.
The Bank has compiled all the impact assessment know-how cultivated up to now into “IMM Guidance,” a resource that can be used throughout the Bank. It has also set up a company-wide system for conducting impact assessments. Specified performance indicators will be measured and recorded in our database and used to verify, improve, and disclose information about business performance.
Supporting Agribusiness in Collaboration With Shikoku Electric Power (Takamatsu Branch)
The Takamatsu Branch of the Bank began providing multifaceted support to Shikoku Electric Power in 2018 when the company launched efforts to set up agricultural corporations (for strawberries and Shishito green peppers) from scratch as part of their business to revitalize the region. This year, the Bank conducted a social impact evaluation to visualize the business outcomes on the region (contribution to solving regional issues) and the paths to such outcomes. Through this evaluation, we also aimed to gain company-wide experience and understanding of the various issues that arose before the business got on track and how to solve such issues for application in other regions as well.
| Outcome Indicators | Definition and calculation formula |
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| (1) Increase in farmers' production |
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| (2) Increase in unit sales price of local products |
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| (3) Increase in farmers' incomes |
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Establishing a New Fishery Value Chain to Utilize Unused Fish (Osaka Branch)
Unused fish is a general term for fish that have good flavor but are passed off as inedible or valued only at low prices for being non-standard, caught in small quantities, not being well known, or other such reasons. The Osaka Branch of the Bank works with the town of Kami-cho in Hyogo Prefecture, JF Tajima, and other organizations of the partnership to establish a new fishery value chain for utilizing unused fish. We recognize that portions of catches are discarded at sea and the potential market for unused fish and that the economic benefits of the sustainable utilization of unused fish are not quantified in terms of business. In response to these issues, we conducted an impact assessment to identify environmental and social outcomes, identify pathways to achieve such outcomes, and create new markets.
| Outcome Indicators | Definition and calculation formula |
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| (1) Increase the types of fish to be utilized as unused fish |
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| (2) Increase product lineups of unused fish |
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| (3) Increase the number of participants in various events |
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Beneficial collaboration between agriculture and welfare services（Maebashi Branch）
In fiscal 2020, Maebashi Branch launched an initiative to promote collaboration between agriculture and welfare services aimed at creating sustainable communities by matching farmers facing labor shortages amid a declining workforce and people with disabilities looking for employment, thereby addressing challenges faced by both groups. We have asked directly to farmers to understand their specific needs, while also visiting Gunma Prefecture's agriculture and welfare departments and social welfare offices to understand the requirements of welfare providers. Through individual matching activities and information dissemination (via publication of the Nofuku Renkei Naruhodo Shimbun newspaper), we had established seven partnerships as of fiscal 2024. Additionally, we are conducting logic-model impact assessments to address challenges that have been identified and improve our initiatives based on the results of measurable outcome indicators, with the ultimate goal of achieving sustainable agriculture, regional development, and diversity.
| Outcome Indicators | Quantitative Indicators/Formulas |
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| Reduce labor shortage in agriculture |
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| Increase farming efficiency |
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| Increase work motivation and fulfillment of people with disabilities |
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Publish “Agriculture-Welfare Naruhodo News” quarterly
Initiatives for Realizing Circular Agriculture through Crop-Livestock Integration (Fukushima Branch)
Many livestock farmers find themselves on the verge of going out of business due to persistently high prices of imported materials. This is driving up demand for domestically produced feed. At the same time, due to the aging population, the number of small-scale crop farmers is continually falling. This is making it difficult to continue composting, an activity that was previously handled within local communities to a large extent. Furthermore, medium and long-term population decline and stricter requirements for feed crop subsidies are forcing crop farmers to seriously consider the viability of full-scale feed crop cultivation. Recognizing the need to develop a system that enables livestock farmers and crop farmers to reliably trade (transact) with each other, we conducted an impact assessment. Our goal was to visualize integration of crop and livestock farming and resulting outcomes in order to involve stakeholders and package initiatives.
| Outcome Indicators | Quantitative Indicators/Formulas |
|---|---|
| Increase in number of trade participants |
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| Increase in feed self-sufficiency rate |
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| Increase in farming income |
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“Nationwide JA Smartphone Classes” Aim to Increase the Digital Literacy of Elderly Farmers
The UN World Happiness Report defines personal relationships and community connections as essential requirements for subjective happiness. However, as society becomes increasingly digitalized, the means of communication and services are changing, resulting in a “digital divide” that leaves many people disconnected. This has become a concerning social issue. Smartphones have become an indispensable element in the lives of many, allowing people to enjoy the same lifestyle conveniences wherever they are and to communicate easily with family and friends in faraway places. We therefore believe that promoting the use of smartphones is an important way of closing the digital divide.
The JA Group began to offer its “Nationwide JA Smartphone Classes” in July 2021 in response to demand from people in rural Japan. As of March 31, 2025, we had provided a cumulative total of approximately 5,800 classes. Approximately 54,000 people had applied for the classes. To determine what kind of positive effects this initiative is having, we are conducting an impact assessment. By clearly understanding the effects on participants and on JA, we can develop even better measures.
The JA Group will continue to offer new opportunities for new experiences through smartphones and work to eliminate the digital divide and increase digital literacy.
| Outcome Indicators | Quantitative Indicators/Formulas |
|---|---|
| Eliminate the digital divide of the elderly |
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| Increase the digital literacy of the elderly |
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| Build even more trust as a financial institution |
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- Sustainability
- Sustainability Management
- Highlights of Initiatives
- Formulation of Purpose of the Bank and Milestones of Sustainable Management
- Philosophies and Policies
- Sustainability Promotion Structure
- Sustainability Advisory Board
- Important Issues to Achieve Our Purpose
- Stakeholder Engagement
- Participation in Initiatives
- Sustainable Finance
- Initiatives for Creating and Visualizing Impact
- Initiatives to Manage Environmental and Social Risks
- Agriculture, Fishery, Forestry Industries, and Regions
- Environment
- Social
- Governance
- Report/Index