Increase in operational and credit risk due to climate change
First written in FY2022. 1 of 4 entries say "Advanced", first in FY2026. Latest entry: FY2026.
16 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「In June 2025, to further accelerate decarbonization, we introduced an off-site PPA service, a solar power electricity sales service that reallocates part of our electricity procurement to power generated by a solar power plant newly installed in Toyama Prefecture. The service began operating in December 2025.」
The off-site PPA was introduced and became operational, reducing Scope 1 and 2 emissions in FY2025 by 48.9% from FY2013. Scope 3 Category 15 financed emissions of 3,804,836t-CO2 were also calculated for the first time. - FY2025Quantitative disclosure of exposure to carbon-related assetsAnnual report
「e. Percentage of carbon-related assets As of 31 March 2025, carbon-related assets accounted for 39.60% of the Bank's loans.」
The percentage of carbon-related assets in total loans was quantitatively disclosed as 39.60% as of 31 March 2025. - FY2024Quantification of climate-related risk scenarios and financial impactsAnnual report
「For transition risk, we selected “key sectors” and calculated the increase in the Bank's credit costs for borrowers in those sectors, taking into account deterioration in their financial condition associated with the transition to a decarbonized society. The increase in credit costs through 2050 was estimated at up to approximately ¥4.5 billion. For physical risk, we calculated the expected impairment of collateral properties held from borrowers due to flooding and the resulting increase in credit costs. The increase in credit costs through 2050 was estimated at up to approximately ¥10 million.」
For climate-related risks, key sectors were selected and scenario analyses of transition and physical risks were conducted. The increase in credit costs through 2050 was quantified at up to ¥4.5 billion for transition risk and up to ¥10 million for physical risk. - FY2022First statedAnnual report
「The damage caused by climate change, including the increasing incidence of natural disasters resulting from global warming and associated extreme weather events, is expanding year by year. The Bank Group will begin concrete initiatives in line with the TCFD(*) framework through the Sustainability Committee and other bodies working on the SDGs, including identifying and assessing climate-related risks and opportunities within the Bank Group and incorporating them into risk management. However, increases in the Bank Group's operational risk and in credit risk resulting from deterioration in the business activities and operating conditions of the Bank Group's business partners may adversely affect the Bank Group's operating results and financial condition.」
The Bank newly identified natural disasters caused by climate change, operational impacts, and credit risk arising from deterioration in business partners' operating conditions as major risks, and stated that it would begin identifying and assessing these risks in line with TCFD and reflecting them in risk management.