Transition and Physical Risks Associated with Climate Change
First written in FY2020. 2 of 7 entries say "Mitigated", first in FY2021. Latest entry: FY2026.
11 other companies' latest entry also says "Other".
- FY2026Updated the financial impact of climate changeAnnual report
「Introduction of carbon tax: ¥11.7 billion」
The company updated its estimated financial impact from carbon taxes from ¥12.4 billion to ¥11.7 billion and disclosed a financial impact of ¥7.7 billion from flood damage. - FY2025Updated the quantitative assessment of climate-change risks and response measuresAnnual report
「Quantitative assessments were conducted for major climate-change risks, including the introduction of a carbon tax and flood damage.」
The company conducted analysis across the 2025, 2030 and 2050 time horizons covering more than 95% of consolidated revenue, estimating financial impacts of ¥12.4 billion from carbon taxes and ¥7.7 billion from flood damage. It also disclosed response measures including renewable-energy adoption, internal carbon pricing and the diversification of production sites. - FY2024Added quantitative assessment of climate-change risksAnnual report
「Quantitative assessments were conducted for major climate-change risks, including the introduction of a carbon tax and flood damage.」
The company conducted scenario analysis covering business areas accounting for more than 95% of consolidated revenue across the 2025, 2030 and 2050 time horizons, estimating a financial impact of ¥12.4 billion from carbon taxes and ¥42.2 billion from flood damage. - FY2023MitigatedAnnual report
「In fiscal 2022, the company conducted scenario analysis in its Automotive business and identified climate-change risks with a significant business impact, including transition and physical risks. It will consider incorporating the identified climate-change risks into its company-wide risk management framework.」
The Automotive business conducted climate-change scenario analysis and progressed to the stage of identifying transition and physical risks with significant impacts. - FY2022WorsenedAnnual report
「"Transition risks" a) Increased tax burden resulting from delays in responding to carbon taxes and other energy-transition measures implemented by countries toward the realization of a decarbonized society」
The company detailed transition and physical risks related to climate change, including carbon taxes, product regulations, raw-material procurement, power shortages and supply-chain disruptions. - FY2021MitigatedAnnual report
「To address these transition risks, NIDEC is implementing the following measures: ◇ Launched the SMART2030 (Sustainable Manufacturing and Resilient Tomorrow) project in April 2019, targeting a 30% reduction in total CO2 emissions from NIDEC's business operations by fiscal 2030, compared with fiscal 2017 actual emissions ◇ Promoting research and development activities based on the SDG concept ◇ Securing multiple procurement routes」
For climate-change transition risks, the company explicitly identified SMART2030, SDG-based research and development, and the securing of multiple procurement routes as measures. - FY2020First statedAnnual report
「Climate change is both an opportunity to create new businesses and a source of broad-based medium- to long-term business risks. We define indirect loss risks arising from changes in climate-related policies and regulations, technological development, market trends and market assessments as transition risks, and direct loss risks from disasters and other effects caused by climate change as physical risks. The materialization of the risk events listed below could have a significant adverse impact on NIDEC's financial condition.」
The company systematized transition risks from decarbonization policies and regulations and physical risks from flooding, water shortages and rising temperatures as new material risks related to climate change.