Business Impacts of Climate Change and the Transition to Decarbonization
First written in FY2021. 3 of 11 entries say "Restated". Latest entry: FY2026.
Members moved to the "Worse" side of this theme in 2022.
The whole theme swung hardest in 2024: 2 of 10 companies on the "Worse" side.
0 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「In particular, if the Group’s response to the tightening of sustainability standards among its major customers is judged inadequate, there is a risk that maintaining business relationships will become difficult.」
For climate-change risks, the disclosure now explicitly identifies the risk of lost orders and difficulty maintaining business relationships due to an inadequate response to major customers’ sustainability standards, in addition to the previously identified cost and physical risks. - FY2025Added the GX2040 Vision and domestic emissions-reduction targetsAnnual report
「In February 2025, the GX2040 Vision was formulated against a backdrop of growing uncertainty, including the destabilisation of international affairs and expanding electricity demand, setting out the medium- to long-term direction for decarbonisation and industrial policy.」
In addition to the previous explanations of COP28 and the GX Promotion Act, the GX2040 Vision and domestic targets of a 60% reduction in fiscal 2035 and a 73% reduction in fiscal 2040 were added as external-environment factors. - FY2024-Q3Added the emissions reductions required under COP28Annual report
「The 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) was held in Dubai, United Arab Emirates (UAE), from November 2023. The adopted decision document states that, to meet the goal of limiting the rise in global temperatures to 1.5°C, emissions of greenhouse gases, including carbon dioxide, that are the main causes of global warming must be reduced by 43% by 2030 and 60% by 2035 from 2019 levels.」
The explanation of the external environment relating to climate change and the transition to a low-carbon economy has been expanded to include the greenhouse-gas emissions reductions required under the COP28 decision document, namely 43% by 2030 and 60% by 2035. - FY2024-Q2Added GX policy and the investment environment for large-scale investmentsAnnual report
「As an increasing number of countries and regions declare their intention to achieve “carbon neutrality,” or virtually zero emissions of greenhouse gases, including carbon dioxide, that are the main causes of global warming, the success or failure of initiatives toward GX (Note 1) is considered directly linked to the competitiveness of companies and, by extension, nations. In Japan, policies have been established under the GX Promotion Act to achieve decarbonisation, a stable energy supply and economic growth simultaneously, including initiatives to shift to decarbonised power sources and public- and private-sector GX investment totalling ¥150 trillion.」
The explanation of climate-change and decarbonisation-transition risks has been expanded to include the GX Promotion Act, the simultaneous achievement of decarbonisation, a stable energy supply and economic growth, and the policy and investment environment represented by ¥150 trillion in public- and private-sector GX investment. - FY2024-Q1RestatedAnnual report
「In Japan, too, a “carbon-neutral” policy has been announced to achieve virtually zero emissions by 2050 of greenhouse gases, including carbon dioxide, that are the main causes of global warming. Companies are expected to further accelerate digital corporate transformation to create value continuously, thereby transforming their businesses, including marketing activities, toward decarbonisation and social-problem solving.」
The 2050 carbon-neutral policy and the transformation of corporate businesses toward decarbonisation and social-problem solving continue to represent important business-environment factors. - FY2023WorsenedAnnual report
「As a result, a substantial increase in the price of environmental value certificates due to higher electricity prices is a concern. An estimate of the price impact showed the possibility of cost increases as follows.」
For climate-change risks, the potential for approximately ¥100 million in costs due to higher prices for electricity environmental value certificates and the medium-scale risk of higher certificate procurement costs were estimated, thereby specifying the financial impact. - FY2022WorsenedAnnual report
「Based on the results of a qualitative assessment using scenario analysis, the following risks were identified as potentially causing moderate to severe damage to the Group’s business operations, financial position and operating results due to climate change. <New regulatory risks> Increased response costs due to stronger energy-conservation policies and other measures <Market risks> (1) Uncertainty in electricity procurement / (2) Sharp increases in the prices of environmental value certificates for electricity, resulting in higher procurement costs for electricity and certificates <Acute physical risks> Increased business-operating and other costs due to the growing severity and frequency of extreme weather events such as typhoons and floods <Chronic physical risks> Higher air-conditioning and other costs due to increased electricity demand caused by more days of extreme heat, and effects on business operations due to rising sea levels」
For climate-change risks, the assessment has moved beyond general recognition based on the IPCC and other sources by classifying regulatory, market, acute physical and chronic physical risks, and specifying the potential for moderate to severe damage and the effects on procurement costs and business operations. - FY2022-Q3Added a citation from the IPCC’s Sixth Assessment ReportAnnual report
「Climate change caused by global warming is resulting in severe natural disasters occurring frequently around the world. The IPCC’s Sixth Assessment Report states that “it is unequivocal that human influence has warmed the atmosphere, ocean and land” (Ministry of Economy, Trade and Industry, Overview of the Summary for Policymakers (SPM) of the Working Group I contribution to the IPCC’s Sixth Assessment Report, “Climate Change 2021: The Physical Science Basis” (headline statements), announced 9 August 2021), placing society as a whole at a crossroads for its survival.」
In addition to the existing recognition of risks relating to climate change and the transition to a low-carbon economy, an explanation citing the IPCC’s Sixth Assessment Report has been added to highlight human influence and the crisis facing society as a whole. - FY2022-Q2RestatedAnnual report
「In Japan, a policy has been established to achieve net-zero emissions of carbon dioxide and other greenhouse gases, the main causes of global warming, by 2050, and discussions have begun on deregulation to promote its active use. To create value continuously, companies are expected to accelerate corporate transformation through digital shifts and DX (digital transformation), thereby transforming their businesses, including marketing activities, toward decarbonization and addressing social issues.」
The 2050 carbon-neutral policy, discussions on regulatory deregulation, and the transformation of corporate businesses toward decarbonisation and social-problem solving continue to represent important business-environment factors relating to climate change and the transition to a low-carbon economy. - FY2022-Q1RestatedAnnual report
「Climate change caused by global warming is resulting in frequent severe natural disasters worldwide. In Japan, a policy has been established to achieve net-zero emissions of carbon dioxide and other greenhouse gases, the main causes of global warming, by 2050, and discussions have begun on deregulation to promote its active use. Corporate businesses themselves, including marketing activities, are therefore expected to transform toward decarbonization and addressing social issues.」
The company continues to identify the impact on corporate management of climate change, decarbonization, carbon-neutrality policies, and discussions on deregulation as important matters in the business environment. - FY2021First statedAnnual report
「The international community recognizes climate change as an important social issue requiring urgent resolution, and decarbonization efforts are under way worldwide. In Japan as well, the impact of climate change on corporate management is expected to increase further, as discussions continue on accelerating ESG investment and introducing a carbon tax in earnest.」
The company newly identified, as an independent major business risk, the impact on corporate management of climate change, decarbonization, ESG investment, and discussions on introducing a carbon tax.