Transition and Physical Risks from Climate Change and Environment-Related Business Opportunities

「Under the 1.5°C scenario, higher energy and material costs, increased environmental compliance expenses and a greater carbon tax burden are expected to have a significant impact on the Apparel Textiles Business Headquarters and Industrial Materials Business Headquarters, which have manufacturing functions, as well as the Human and Future Development Business Headquarters, which operates commercial facilities and develops real estate. Under the 4°C scenario, intensified storms, floods and other disasters could damage some factories and commercial facilities, resulting in losses from suspended operations and recovery costs.」