Climate Change Scenario Analysis and Risk and Opportunity Management
First written in FY2023. . Latest entry: FY2026.
- FY2026Integration into enterprise-wide risk managementAnnual report
「In principle, the Management Committee reviews the progress of responses to each risk item once every quarter as part of enterprise-wide risk management. At the same frequency, it uses the Risk Catalogue to calculate residual risks after mitigation measures and evaluate the responses. Climate-change risks are managed through the same process as enterprise-wide risks, creating an integrated risk-management framework.」
The company states that climate-change risks have been integrated into the enterprise-wide risk-management process, including quarterly residual-risk assessments, in addition to the disclosure of scenario analysis. - FY2023First statedAnnual report
「Our group conducted scenario analysis through the following 4 steps. For climate-change scenarios, we selected a 1.5°C-2°C scenario involving a transition toward a decarbonized society and a 4°C scenario involving continued global warming, and analyzed and assessed the associated risks and opportunities. We define the time horizons for climate-change risks as short term (up to 3 years), medium term (3-7 years), and long term (7-27 years).」
Referring to the TCFD recommendations and other sources, the company analyzes transition risks, physical risks and opportunities under 1.5°C-2°C and 4°C scenarios, including carbon taxes and electricity prices, rising temperatures, sea-level rise, extreme weather and the supply chain.