Delays in Responding to Climate Change and Transition Risks
First written in FY2022. 3 of 4 entries say "Reframed", first in FY2023. Latest entry: FY2026.
Subaru moved to the "Worse" side of this theme in 2023, 2 years before the typical company in this theme (2025).
5 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「It is important to pursue electrification while securing profitability over the entire product life cycle. If initiatives involving both the upstream and downstream aspects of products do not progress, it may not be possible to achieve that objective over the entire product life cycle.」
Climate change risks were reorganized into transition risks relating to regulation, technology, markets and reputation, and acute and chronic physical risks, and the framework was expanded to include market divergence in electrification, profitability, the supply chain and natural disasters. - FY2024ReframedAnnual report
「Main climate change-related risks identified: transition risks: regulation, technology, markets, reputation; physical risks: acute, chronic」
Climate change risks were organized into transition risks relating to regulation, technology, markets and reputation, and acute and chronic physical risks such as torrential rain and the procurement of natural resources, and the risk management framework was described in greater detail. - FY2023ReframedAnnual report
「Main climate change-related risks identified: transition risks: regulation, technology, markets, reputation; physical risks: acute, chronic」
The disclosure was reorganized to classify climate change risks into transition risks relating to regulation, technology, markets and reputation, and physical risks such as torrential rain and the procurement of natural resources. - FY2022First statedAnnual report
「However, if these initiatives do not proceed appropriately, or depending on the impact and manifestation of climate change risks, which are extremely difficult to forecast at present, the Group’s operating results and financial position may be significantly affected by increased research and development expenses and the loss of sales opportunities resulting from lower customer satisfaction and a decline in brand image.」
Delays in responding to climate change, transition risks, and uncertainty in future forecasts were identified independently for the first time as risks that could lead to higher research and development expenses and lost sales opportunities.