Message from the Chairman

With ongoing efforts to strengthen governance,
DBJ contributes to sustainable growth through
an innovative process of value creation.

Creation of a Unique Business Model

In accordance with the Development Bank of Japan Inc. Act, the DBJ Group practices sustainability management that balances economic and social value with the aim of building a sustainable society. Under the current Fourth Medium-Term Management Plan, we supply risk capital to forward-looking initiatives through our Special Investment Operations program. Collaboration and cooperation with private financial institutions stimulate new flows of risk capital in Japan. DBJ’s investments and loans in new fields help to strengthen Japan’s economic competitiveness. We also address local issues through risk capital supplied through joint funds created with regional financial institutions.

Furthermore, DBJ functions as an emergency supplier of capital for responses to natural disasters and other crises. In times of international financial turmoil, and following the Great East Japan Earthquake, the Kumamoto earthquakes, and other events calling for rapid influxes of capital, DBJ has been there to provide relief.

In the wake of heavy rains in Western Japan in July 2018 and the Hokkaido Eastern Iburi Earthquake in September of the same year, we established our own Regional Reconstruction Headquarters and Regional Emergency Response Program. We are working to strengthen our system for responding flexibly and quickly to demand for recovery and reconstruction funds.

Governance Suited to Our Business Model and Dialogue with Stakeholders

In order to continue playing this unique role, DBJ must have robust corporate governance, ensure transparency in management, and consider the opinions of outside experts. To promote this aim, we have created the Operations Audit Committee, the Compensation Committee, and the Personnel Evaluation Committee as advisory bodies to the Board of Directors. Listening to the views of our stakeholders is imperative to strengthening this framework.
In an environment of fair competition, it is essential that DBJ collaborate and cooperate with private financial institutions. We hold regular events for this purpose, usually twice a year, for discussions with representatives of such institutions. And in regard to Special Investment Operations, DBJ has created the Special Investment Operations Monitoring Board (see page 63) as an advisory body to the Board of Directors. It meets twice a year in order to discuss and evaluate projects as well as encourage private-sector enterprises and complement their operations while maintaining appropriate competitive relations.

The opinions we obtain through social events with private financial institutions and the outcomes of deliberations by the Special Investment Operations Monitoring Board are debated by the Advisory Board. As an advisory body to the Board of Directors, the Advisory Board (see page 63) is made up of outside experts and directors in fields including manufacturing, infrastructure, regional communities, and finance. The Advisory Board provides valuable ideas on matters concerning the safeguarding of proper competition with private financial institutions and the DBJ Group’s management plans. In my view, a distinct aspect of corporate governance at the DBJ Group is its continuous reassessment of its unique value creation process while engaging in dialogue with stakeholders.
We want to keep our initiatives one step ahead of the times, especially in regard to the supply of risk capital, and this means ensuring that we operate in conformity with the Companies Act. For this purpose, the Board of Directors formulated the Basic Policy for Internal Control, which positions legal compliance, Risk Management, and internal audits as important issues for management.

Realization of a Value Creation Process That Balances Economic and Social Value

The DBJ Group established the Sustainability Committee as a means of dealing with the growing need to review corporate management from the standpoint of sustainability given the adoption of the Sustainability Development Goals (SDGs), the Paris Agreement, and other recent developments. The Sustainability Committee discusses changing social issues and other matters important for management. In fiscal 2018, directors engaged in lively debate on initiatives related to energy, Climate Change, and the SDGs.

To realize a sustainable society while balancing economic and social value, the DBJ Group offers solutions to issues faced by society and the Group’s customers. The Group will continue to create innovative business models, centered on the supply of risk capital, in an effort to advance sustainability management and maintain a balanced value creation process. Moreover, we will continue making every effort to ensure robust and effective corporate governance, based on the notion that nothing is more important than embodying best practices that will continue to earn us the trust of our customers and society.

August 2019 Yasushi Kinoshita Chairmanyasushi kinoshita