Risks and Opportunities from Stricter Environmental Regulations and Climate Change
First written in FY2020. 1 of 7 entries say "Restated". Latest entry: FY2025.
1 other company's latest entry also says "Other".
- FY2025Requantification of the financial impact of climate-related risksAnnual report
「We assume tighter fuel-efficiency regulations and accelerated electrification, including HEVs (47% in 2030). If the company is unable to respond to these changes and becomes non-compliant with regulations, sales volumes could decline, resulting in an impact of ¥300 billion. In Japan and Asia, where the likelihood of extreme weather events is high and which account for 65% of total production, damage to the company's own plants or production stoppages caused by supply chain disruptions could reduce revenue by ¥120 billion.」
The company has updated the assumptions underlying the financial impacts in its climate change scenario analysis, including a 47% electric vehicle ratio in 2030, a 65% production ratio in Japan and Asia, a ¥300 billion decline in sales and a ¥120 billion decline in revenue caused by production stoppages. - FY2024AdvancedAnnual report
「We assume tighter fuel-efficiency regulations and accelerated electrification, including HEVs (47% in 2030). If the company is unable to respond to these changes and becomes non-compliant with regulations, sales volumes could decline, resulting in an impact of ¥400 billion. In Japan and Asia, where the likelihood of extreme weather events is high and which account for 66% of total production, damage to the company's own plants or production stoppages caused by supply chain disruptions could reduce revenue by ¥110 billion.」
The company has developed its climate change scenario analysis into quantitative assessments, including the 2030 electric vehicle ratio, the production ratio in Japan and Asia, and potential financial impacts of ¥400 billion, ¥110 billion and ¥12 billion in fiscal 2025. - FY2023Scenario analysis and quantification of financial impactsAnnual report
「We identified items equivalent to a business impact of ¥10 billion or more as material items. We assume tighter fuel-efficiency regulations (the CO2 emissions cap will fall to approximately one-third between 2018 and 2030) and an acceleration in vehicle electrification, including hybrid vehicles (2% in 2018 to 47% in 2030).」
For climate change risks, the company conducts scenario analysis through 2040, identifies items with financial impacts of ¥10 billion or more, and quantifies the impacts of regulations, electrification and extreme weather events. - FY2022MitigatedAnnual report
「To address these risks, regarding transition risks, the Electrification Systems, Thermal Systems and Powertrain Systems businesses are accelerating research and development and making proposals to customers to meet new fuel-efficiency regulations and demand for electrification. Regarding physical risks, the Company is implementing measures against weather-related disasters, including floods, at buildings and structures, while strengthening supply-chain risk management by diversifying suppliers for materials and other items.」
In response to climate change risks, the company specifically discloses R&D on electrification and fuel-efficiency regulations, measures against weather-related disasters, and diversification of suppliers. - FY2022-Q3RestatedAnnual report
「No new business or other risks arose during the cumulative third quarter, and there were no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The Company states that there have been no new incidents or significant changes regarding risks from tighter environmental regulations and climate change. - FY2021Specific climate risksAnnual report
「As a transition risk associated with the shift to a decarbonised society, the Company may lose sales opportunities if its existing products cannot adequately respond to fuel-efficiency and emissions regulations related to climate change or the expansion of electrification. Physical risks include the increasing severity and frequency of extreme weather events such as cyclones and floods, which could reduce revenue through factory shutdowns and supply-chain disruptions.」
The explanation of risks from tighter environmental regulations has been divided into transition risks associated with decarbonisation and physical risks from extreme weather, with the impacts on product sales, factory operations and the supply chain described in greater detail. - FY2020First statedAnnual report
「However, the importance of environmental initiatives continues to grow, and various regulations may be revised or strengthened, requiring immediate responses and initiatives for the future. If the response is inadequate, the consolidated companies' results and financial position could be adversely affected through lower product sales, production restrictions or reputational damage.」
The Company has disclosed the impact on sales, production and reputation from revisions to and tightening of environmental regulations and inadequate responses as a new major risk.