Risk of demand decline and additional costs from stronger climate change policies
First written in FY2020. 3 of 9 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2025: 4 of 6 companies on the "Worse" side.
1 other company's latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「The climate change-related risks and opportunities are as follows.」
Classified climate change risks into policy and regulatory, market and technology, reputational, and acute and chronic physical risks, and organised their severity and measures. Reputational risk was assessed as having a high impact, and opportunities including CCUS, BECCS and exploratory drilling at Tomakomai were also specified. - FY2025AdvancedAnnual report
「The climate change-related risks and opportunities are as follows.」
Classified climate change risks into policy and regulatory, market and technology, reputational, and acute and chronic physical risks, and disclosed their timing, severity and measures. It also indicated specific progress on opportunities including CCS/CCUS, BECCS and LNG supply infrastructure. - FY2024AdvancedAnnual report
「Climate change-related risks Risk category Timing Impact Severity Measures Transition risk Policy and regulatory Long term Higher additional costs due to environment-related laws and regulations, including carbon taxes High」
Discloses climate change risks by classifying them into transition risks and acute and chronic physical risks, and organising the timing, severity and measures for each. Physical risks are assessed as having a minor or limited impact. - FY2022RestatedAnnual report
「Among climate change-related risks, risks associated with the transition to a low-carbon and decarbonised society, including policy and regulatory, technology and market risks, as well as physical risks from disasters, including acute risks from sudden weather events such as typhoons and chronic risks from long-term climate changes such as rising sea levels, are expected to materialise over the medium to long term.」
Continues to classify climate change risks into transition risks and acute and chronic physical risks, and to indicate the possibility of business value impairment due to declining demand, weak prices and additional costs. - FY2022-Q3RestatedAnnual report
「The Company believes that the prolonged impact of COVID-19 and the progress of global decarbonization could cause irreversible structural changes in various areas, including energy demand and environmental issues, resulting in persistently weak demand for fossil fuels over a considerable period. In addition, the global economic recovery from COVID-19 may pursue a green recovery, potentially accelerating the trend toward decarbonization further.」
Continues to describe irreversible structural changes resulting from the COVID-19 pandemic and decarbonisation, the possibility of prolonged weakness in fossil fuel demand, and the possibility that the decarbonisation trend will accelerate. - FY2022-Q1RestatedAnnual report
「The Company believes that the prolonged impact of COVID-19 and the progress of global decarbonization could cause irreversible structural changes in various areas, including energy demand and environmental issues, resulting in persistently weak demand for fossil fuels over a considerable period. In addition, the global economic recovery from COVID-19 may pursue a green recovery, potentially accelerating the trend toward decarbonization further.」
Continues to describe structural changes in energy demand resulting from the COVID-19 pandemic and decarbonisation, as well as the possibility of prolonged weakness in fossil fuel demand. - FY2021ReframedAnnual report
「Recognizing the importance of addressing climate change, the Company is advancing necessary initiatives in areas including governance, business strategy, risk management and emissions management based on the recommendations of the TCFD.」
While maintaining its recognition of the risks of lower demand, weak prices and additional costs resulting from climate change, the Company is organizing its response framework for governance, business strategy, risk management and emissions management based on the TCFD recommendations. - FY2021-Q3WorsenedAnnual report
「The prolonged impact of COVID-19 and the progress of global decarbonization could cause irreversible structural changes in various areas, including energy demand and environmental issues, resulting in significant changes in the business environment surrounding the Company. In light of this, the Company is currently reassessing its medium- to long-term business environment and outlook for crude oil prices, as well as revaluing major assets of the Group.」
The explanation of the risk of lower demand and additional costs from climate policies has expanded to include irreversible structural changes caused by COVID-19 and decarbonization, as well as the revaluation of major assets. - FY2020First statedAnnual report
「If climate policies are strengthened in countries around the world and environmental laws and regulations, including carbon taxes, are amended or newly introduced, the value of the business could be impaired by declining domestic and overseas demand for oil and natural gas and additional cost burdens.」
The Company independently identified for the first time the risk that stronger climate policies, carbon taxes and environmental regulations could impair business value through lower demand for oil and natural gas and additional costs.