Transition and physical risks from climate change

「Transition risks Type Key risk factors Overview Impact Response measures Policies and regulations Carbon pricing (Carbon pricing mechanisms) ・Higher raw material costs due to the impact of carbon taxes and other measures High ・Request suppliers to reduce GHG emissions, including by introducing renewable energy ・Pass some of the costs through to product prices Markets Changes in customer behavior ・Transformation of the steel industry from electric arc furnaces to hydrogen reduction ・Shift from gasoline-powered vehicles to EVs High ・Develop the technologies required to respond to customer changes and cultivate new markets」

「Carbon emissions targets and policies in各 countries ・Decline in demand for existing welding technologies for power generation facilities using fossil fuels Changes in customer behavior ・Transformation of the steel industry from electric arc furnaces to hydrogen reduction ・Shift from gasoline-powered vehicles to EVs Increasing frequency and severity of extreme weather events, including torrential rain and flooding ・Procurement delays caused by supplier shutdowns and disruptions to logistics networks resulting from flooding and other events ・Manufacturing plant shutdowns resulting from flooding and other events」