Environmental Risk Management by the Environmental Management Committee and through Climate Change Scenario Analysis

「We will work to improve the accuracy of identifying and understanding material risks, including by continuously reviewing scenario analyses and assessments so that we can adequately address tail risks, which have a low probability of occurring but could result in extremely large losses if they do occur.」

「To ensure an adequate response to tail risks, which have a low probability of occurrence but could result in extremely large losses, we will enhance scenario analysis and evaluation and work to improve methods for appropriately identifying and examining important risks that could have a material impact on the Group’s management.」

「In particular, responses to environmental issues across the Group are deliberated and considered by the Environmental Management Committee, chaired by the Representative Director and President and comprising the heads of the Planning, Administration, Business and Technology Development divisions as committee members, before ultimately being submitted to the Board of Directors. … We conduct scenario analyses based on …2°C and …4°C scenarios.」

「In particular, responses to environmental issues across the Group are deliberated and considered by the Environmental Management Committee, chaired by the Representative Director and President and comprising the heads of the Planning, Administration, Business and Technology Development divisions as committee members, before ultimately being submitted to the Board of Directors. Progress in environmental management and the business risks and growth opportunities associated with environmental issues are reported to and reviewed by the Board of Directors annually. … We conduct scenario analyses based on …2°C and …4°C scenarios, assess their potential impact on the business and consider countermeasures.」