Business Interruption and Regulatory Compliance Risks Arising from Climate Change and Extreme Weather
First written in FY2020. 2 of 9 entries say "Advanced", first in FY2025. Latest entry: FY2026.
15 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「During the current consolidated fiscal year, we conducted climate-related scenario analysis and evaluated the impact on our business based on the latest parameters from future scenarios published by public institutions.」
For climate-related risks, impact and resilience assessments were conducted using 1.5°C and 4°C scenarios, and response measures involving low-carbon materials, T-Base, DX and energy-saving proposals were specified. - 2026-05-12WorsenedEarnings
「Factors expected to affect business operations include supply constraints and price increases for materials and equipment amid strong demand, rising labor costs and concerns about construction schedule delays.」
In addition to supply constraints and price increases for materials and equipment and higher labor costs, the document identifies concerns about construction schedule delays as a factor affecting future business operations. - FY2025AdvancedAnnual report
「Based on these analyses, our primary responses to risk will first include research into low-carbon materials through cooperation with materials manufacturers and others as a measure addressing transition risks such as higher procurement costs. In addition, the intensification of conditions at construction sites is expected to cause physical risks to materialize, further reducing the number of people entering the construction industry and resulting in insufficient construction capacity. We will address this risk by expanding the use of off-site work through T-BaseⓇ (※) and other measures, and by improving the work environment through productivity gains using DX.」
The response to climate-related risks has been specified through research into low-carbon materials, cooperation with materials manufacturers, expanding off-site work through T-Base and improving productivity through DX. The disclosure also describes SBT validation of the 2050 net-zero target and the formulation of a transition plan. - FY2024Greater specificity regarding climate-related risk response measuresAnnual report
「Based on these analyses, our primary responses to risk will first include strengthening cooperation with materials manufacturers and others and conducting research into low-carbon materials as measures addressing transition risks such as higher procurement costs. In addition, the intensification of conditions at construction sites is expected to cause physical risks to materialize, further reducing the number of people entering the construction industry and resulting in insufficient construction capacity. We will address this risk by expanding the use of off-site work through T-BaseⓇ and other measures, and by improving the work environment through productivity gains using DX.」
The response to climate change risks includes research into low-carbon materials, cooperation with materials manufacturers, expanding off-site work through T-Base and improving productivity through DX as specific measures. - FY2023Greater specificity regarding scenario analysis and response measuresAnnual report
「We have established and analyzed 1.5°C and 4°C scenarios. Under the 1.5°C scenario, transition risks such as higher procurement costs for materials and equipment are expected to increase, while under the 4°C scenario, physical risks are expected to become substantially greater, including delays in construction schedules caused by natural disasters.」
The climate change risk analysis describes the impacts under 1.5°C and 4°C scenarios and specifies the effects of procurement costs, natural disasters and construction schedule delays for each scenario. - FY2022Greater specificity regarding transition and physical risksAnnual report
「(1) Transition risks If the Group is unable to adapt to the transition to a decarbonized society or to the needs of customers and society in responding to climate change, its standing among investors and customers may deteriorate, potentially resulting in a decline in corporate value and the loss of business opportunities. (2) Physical risks The Group may bear higher costs resulting from surging prices for materials and equipment caused by extreme weather, while large-scale disasters may affect the supply chain and extend the construction period and reduce profits for the portion of construction work awarded to the Group.」
The impact of climate change risks has been specified by dividing them into transition and physical risks and addressing business opportunities and corporate value, materials and equipment costs, the supply chain, construction periods and profits. Responses involving the ESG Promotion Committee, supply arrangements and scenario analysis are also described. - FY2021Explicit identification of transition and physical risks and the response frameworkAnnual report
「Climate change is a global issue that affects countries and regions across the world, and we recognize it as a material issue for the Group. However, delays or inadequacies in our response may cause the following risks to materialize.」
Climate change risks are divided into transition and physical risks, with responses involving the ESG Promotion Committee, supply arrangements with suppliers and scenario analysis explicitly described. - FY2021-Q3RestatedAnnual report
「During the cumulative third quarter of the current consolidated fiscal year, there were no material changes in the occurrence of major risks that management recognizes could materially affect the financial position, operating performance or cash flows of the consolidated companies, among the matters concerning the business and accounting conditions described in the quarterly report, or in the business and other risks described in the annual securities report for the previous fiscal year.」
No occurrence or material change has been reported regarding business interruption caused by climate change and extreme weather, or regulatory response risks. - FY2020First statedAnnual report
「Climate change is a global issue that may affect business activities through disruptions such as procurement failures and higher costs for materials and equipment, and suspension of construction work, resulting from rising temperatures, extreme weather and associated natural disasters.」
New risks have been explicitly identified, including procurement failures for materials and equipment, higher costs and construction stoppages caused by climate change, as well as costs incurred in response to tighter regulations addressing global warming.