Additional costs, reduced competitiveness, and business interruption due to climate-related risks
First written in FY2022. 1 of 4 entries say "Worsened", first in FY2023. Latest entry: FY2026.
The whole theme swung hardest in 2021: 4 of 17 companies on the "Worse" side.
13 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「To address these risks, the group is promoting reductions in CO2 emissions, the introduction of renewable energy, stronger product development to meet customer requirements, and reviews of its business continuity plans (BCPs), led by the Energy Conservation Measures Subcommittee.」
The company continues to address climate-related risks, including the effects of carbon pricing, customer requirements and extreme weather, through energy conservation, renewable energy, product development and BCP reviews. - FY2024MitigatedAnnual report
「For domestic manufacturing sites that may be affected, the company reviewed its BCP and began measures to mitigate the risk at facilities with a high likelihood of being affected by disasters at the river planning scale (L1, once every 10 to 100 years). It is also successively planning and implementing measures at facilities that may be affected by disasters at the assumed maximum scale (L2, once every 1,000 years), working to reduce the risks.」
Although climate-related flood and natural disaster risks remain, the company has begun specific mitigation measures at domestic sites, including reviewing its BCP, installing sandbags and flood barriers, and relocating critical equipment to higher floors. - FY2023WorsenedAnnual report
「Climate-related risks arising from global warming may affect the performance and financial position of the group. Major countries are currently moving forward with the introduction of carbon taxes, carbon pricing and emissions trading systems. The introduction of such systems may have a significant medium-term impact and may result in additional direct and indirect costs, including additional costs due to higher raw material prices.」
For climate-related risks, the company made the introduction of carbon pricing systems more concrete, moving from “under consideration” to “in progress,” and explicitly identified the potential significant medium-term impact, additional costs including higher raw material prices, and the effects of failing to meet customer requirements and of business interruptions. It also described measures including energy conservation, business continuity planning, disaster-prevention facilities, procurement and research and development. - FY2022First statedAnnual report
「Climate-related risks arising from global warming may affect the performance and financial position of the group. Major countries are currently considering the introduction of carbon taxes, carbon pricing and emissions trading systems, and the introduction of such systems may result in additional direct and indirect costs. If the group is unable to adequately meet customer requirements related to climate change, such as environmental performance and sustainability-related supplier selection criteria, its sales may decline due to a loss of market competitiveness in its products. In addition, the increasing severity and frequency of natural disasters may interrupt business continuity, including production activities throughout the group’s supply chain, and may result in additional emergency costs.」
The company classified climate change risks independently for the first time, identifying as major risks increased costs from carbon pricing systems, declining sales and competitiveness due to failure to meet customers’ environmental requirements, and production and supply chain disruptions caused by natural disasters.