Money Forward, Inc.

Sustainability of Money Forward Group

Aspiring to resolve financial issues for all and create society that drives challenge.

Since our founding, we have embraced our corporate mission, “Money Forward. Move your life forward,” and aspired to eliminate financial issues and concerns from the world. Money is merely a tool for living. Yet, many individuals and companies are pressured and affected by it due to lack of adequate knowledge and are unable to take actions. Through our services, we support people to move their lives forward and to drastically enrich everyday life, thus create a society that drives challenges.

Our mission, business activities, and future outlook are summarized in detail in our Integrated Report, which is updated once a year.
We also plan to update our ESG (Environmental, Social, and Governance) data at the same time.
Integrated Report / ESG data（Published in April 2024）

In editing the integrated report, we refer to the International Integrated Reporting Council (IIRC)’s “The International <IR> Framework” among other resources.

CEO message

We have been providing various services since our foundation, with kind support from our users, partners, and shareholders. We sincerely appreciate your ongoing support.
Financial issues are universal. The concept of money may have been affecting lives of people ever since ancient times when seashells, rice, or metal was used as money. Financial problems have persisted in our long-established capitalist economy too. Periodic recessions such as those triggered by the burst of bubble economy and the global financial crisis, and the increasing gap in wealth around the world are some examples that exist beyond time and space.
Money Forward believes a sustainable society should be a society that is sustainable for individuals and businesses. It is a society where individuals can take on challenges without concerns about their living environment. This requires creating a framework that minimizes the impact of unforeseeable events and enables optimal actions.
We currently offer many services, but the road to achieving a sustainable society is without an end, and we believe it is our eternal challenge as a corporation. We will continue to work together to face the universal and expansive financial issues to make social contribution.

Money Forward, Inc.
Representative Director, President and CEO

Yosuke Tsuji

CEO’s Blog (Japanese)

Three Priority Themes (Materiality) to Achieve our Vision for the Society

To realize our vision for the society and to steadily increase shareholder value, we have organized and set three key themes of materiality: “User Forward,” “Society Forward,” and “Talent Forward. We will focus on these as well as the supporting foundations, i.e., “penetration of Money Forward’s Mission/Vision/Values/Culture” and “Governance that balances offense and defense.”

User Forward
- Provide Services that Solve Financial Issues for a Diverse Range of Users (B2B and B2C)
- Solve Users’ Problems with Technology and Design
- Promote Investment in Security to Ensure the Safety
View More
Society Forward
- Contribute to DX of Society with Diverse Partners
- Promoting Activities to Realize a Better Social System
- Practice Environmentally Friendly Management
View More
Talent Forward
- Foster a safe work environment and corporate culture
- Recruit talented and diverse members who align with our MVVC*
- Create a system that maximizes individual potential
- Foster autonomous personal development
- Connect individual development to organizational development
View More

Foundations Supporting Three Priority Themes

Identification of Priority Themes

Sustainability Indicators

To demonstrate our managerial commitment to the three materiality themes, we sat forth and disclose our sustainability indicators. Apart from our financial KPIs, we will closely monitor these indicators on a continual basis to measure our progress in sustainability.

Materialities		Sustainability Indicators	FY2022	FY2023
User Forward	Businesses	SaaS applications for back-office operations: paying customers^*1	235,798	301,233
		Money Forward Cloud: corporate customer churn rate^*2	0.8%	0.8%
		Money Forward Kessai and Early Payment: cumulative amount of receivables^*3	¥135.2 bn	¥287.2 bn
		Money Forward X: partner companies^*4	67	81
	Individuals	Money Forward ME: yearly improvement in personal finance^*5	¥281,000	¥295,000
		Amount of assets managed under all integrated accounts^*6	¥7.7 tn	¥11.0 tn
		Amount of financial assets under all integrated accounts^*7	¥17.3 tn	¥21.3 tn

Society Forward	Money Forward Cloud: users associated with certified members^8	25,258	32,364
	Money Forward Cloud: chambers of commerce in alliance^*9	123	137
	Money Forward X: services provided^*10	126	180

Talent
Forward

Ratio of women among managers (overall*11/ business side^*12)

20.2%/26.0%

20.4%/24.1%

Cumulative number of participants in Leadership Forward Program^*13

126

179

Cumulative number of participants in manager basic training^*14

419

591

Acquisition rate of childcare leave^*15(women/men)

100.0%/50.0%

92.9%/87.1%

Employee engagement (MF Group Survey)^*16

1. Strengthen Measures to Embody Our MVVC
-The Company’s business has a positive impact on society and strong future potential.^*17	ー	4.4
-Money Forward Group is a company that is moving toward realizing and embodying our MVVC.^*17	ー	4.3
2. Create a System That Attracts Top Talent
-People in the organization are appealing.^*17	ー	4.3
-I find my current job rewarding.	4.1	4.0
-I am growing through my current job (or feel I will be able to do so in the future).	4.2	4.2
3. Enhance Feedback and Training
-Feedback on good points and areas for improvement is obtained from supervisors during evaluation interviews and 1on1s.	4.2	4.2
-My supervisor understands my career plans and aspirations, and supports my long-term growth.	4.1	4.0
-Management encourages employees to try new things without fear of failure.^*17	ー	4.3
4. Practice Strategic Allocation and Organizational Design to Achieve Key Growth Milestones
-My department communicates well enough to achieve our goals.^*17	ー	4.0
-I am able to communicate beyond my division across the department to achieve my goals.^*17	ー	3.7
5. Enhance Productivity
-My department’s goals and strategies are clear and appropriate, and are conveyed to and understood by all.^*17	ー	4.0
-The company continues to improve internal productivity (through operational and cost improvements).^*17	ー	4.0
6. Improve Gender Equality at the Decision-Making Level
-In this organization, differences are respectedand people communicate with mutual respect for one another.	4.4	4.3
-This organization finds value in having perspectives and opinions from various standpoints.	4.3	4.2
-I would like to take up a management position or a position with greater responsibilities than what I have right now, if offered.^*17 (women/men)	ー/ー	3.9/4.2
7. Adapt to the Globalization of the organization
-In this organization, differences are respected and people communicate with mutual respect for one another.	4.4	4.3
-This organization finds value in having perspectives and opinions from various standpoints.^*17	ー	4.2

For FY2022, the data is as of the end of November 2022. For FY2023, the data is as of the end of November 2023.
※ However, for FY2022, exclude *5, *6, *7, and *16; for FY2023, exclude *5 and *16.

*1 The total number of businesses (corporates and sole proprietors) that pay a subscription fee for Money Forward Cloud or other SaaS applications for back-office operations.
*2 The average monthly churn rate for “Money Forward Cloud” for each fiscal year (FY2022: from December 2021 to November 2022, FY2023: from December 2022 to November 2023).
*3 The cumulative amount transacted through Money Forward Kessai and Money Forward Early Payment.
*4 The number of companies that have entered into a business alliance in X domain.
*5 12 times the average of the monthly amount of improvement in personal finances as perceived by users who responded that they felt their personal finances have improved, according to a survey targeting Money Forward ME users (Conducted in October 2022 and November 2023).
*6 The total amount of assets being managed under all individual users’ accounts linked to Money Forward ME and services for financial institutions provided in X domain. Assets under management include listed stocks (spot-trading), bonds, mutual funds, and defined contribution pensions. Calculated based on aggregated results as of the end of January 2023 for FY2022, and as of the end of November 2023 for FY2023.
*7 The total amount of financial assets under all individual users’ accounts linked to Money Forward ME and services for financial institutions provided in X domain. Calculated based on aggregated results as of the end of January 2023 for FY2022, and as of the end of November 2023 for FY2023.
*8 The number of users who have a Money Forward ID among the certified members of Money Forward Cloud.
*9 The total number of chambers of commerce that have entered into an alliance with Money Forward Cloud.
*10 The total number of services provided in X domain.
*11 The ratio of women among Money Forward Group’s regular employees in managerial positions.
*12 The ratio of women among Money Forward Group’s regular employees in business-side (i.e., other than engineering and design) managerial positions.
*13 The total number of participants of a training program for fostering next-generation leaders targeting Money Forward Group’s regular employees.
*14 The total number of participants of a training program targeting Money Forward Group’s regular employees in managerial positions.
*15 Starting from FY2023, as mandated by the disclosure of human capital, the rates of childcare leave taken are calculated based on the definitions provided in Article 71-4, Item 1 of the Child Care and Family Care Leave Law.
For men: The percentage is calculated by dividing the number of men who took at least one day of postnatal paternity leave or newly initiated childcare leave between December 1, 2022, and November 30, 2023, by the number of men whose spouses gave birth during the same period (%).
For women: The percentage is calculated by dividing the number of women who newly initiated childcare leave between December 1, 2022, and November 30, 2023, by the number of women who gave birth during the same period (%).
For FY2022, the calculation was based on the number of employees who had children born between April 2021 and March 2022 and who took childcare leave by August 31, 2022, as aggregated by Money Forward based on applications for child birth celebration money.
*16 The average score of key items considered indicators of employee engagement, taken from a survey conducted among full-time and contract employees of the Money Forward Group (excluding direct employees of Money Forward Vietnam). The survey uses a five-point scale, with 5 being the highest rating.
*17 New addition following the announcement of the “Talent Forward Strategy 2024”

Value Creation Model

Structure for Promoting Sustainability

In February 2021, we appointed Toshio Taki, Group Executive Officer and CoPA (Chief of Public Affairs), as Head of Sustainability.
We also established the Sustainability Committee with the aim of further promoting sustainability through regular discussions including External Directors and Executive Officers of each business division in February 2022. The Committee is composed of members appointed by the Board of Directors, and is chaired by the Representative Director, President and CEO. The Committee also ensures the effectiveness and efficiency of sustainability measures by requesting the attendance of External Directors and senior executives of each business division as necessary.
The Committee meets to deliberate on sustainability initiatives as necessary, to deliberate on sustainability initiatives, monitor the implementation of the measures, and report to the Board of Directors.
Members of the Committee’s Office will further promote company-wide efforts to implement various measures determined by the Committee and the Board of Directors, through coordination with liaisons in related corporate and business divisions within the Group.

In February 2023, we have established a Compliance and Risk Management Committee and are collaborating with our existing Sustainability Committee to establish a system for addressing climate change. In addition, as part of our risk management efforts, we have identified the risks and opportunities that climate change presents to our business activities and are implementing disclosures based on the TCFD framework.

Click here for the disclosure based on the TCFD.

Acknowledgment as a Sustainable Company

Money Forward Receives AA in the MSCI ESG Rating

Money Forward has received “AA” in the MSCI ESG Rating

THE USE BY MONEY FORWARD OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF MONEY FORWARD BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED ‘AS-IS’ AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI.

MSCI Japan ESG Select Leaders Index

Money Forward is selected as a constituent of the MSCI Japan ESG Select Leaders Index, a leading index of environmental, social and governance (ESG) investment. The index is adopted by Japan’s Government Pension Investment Fund (GPIF), as references for making its investments.

MSCI Japan Empowering Women Index (WIN)

Money Forward is included in the MSCI Japan Empowering Women Index (WIN) for companies with exceptional gender diversity. This inclusion indicates that Z Holdings Corporation has been assessed as a company leading efforts to support the participation and promotion of women in the workplace through diversity policies. The index is adopted by Japan’s Government Pension Investment Fund (GPIF), as references for making its investments.

“FTSE Blossom Japan Sector Relative Index” is created by FTSE Russell, one of the leading ESG rating agencies, and evaluates companies that excel in ESG (Environmental, Social, and Governance) practices. Approximately 600 companies with relatively high scores are selected for inclusion.

* FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that Money Forward Inc. has been independently assessed according to the FTSE Blossom Japan Sector Relative Index criteria, and has satisfied the requirements to become a constituent of the FTSE Blossom Japan Index Series. The FTSE Blossom Japan Sector Relative index is used by a wide variety of market participants to create and assess responsible investment funds and other products.