Addressing Climate Change Risks and Opportunities through TCFD Scenario Analysis
First written in FY2023. 1 of 3 entries say "Advanced", first in FY2025. Latest entry: FY2026.
- FY2026ReframedAnnual report
「〈1.5°C (below 2°C) scenario: transition to a decarbonised society progresses〉The group estimated the 2030 impact of risks, including higher costs due to the introduction of a carbon tax and lower sales volumes of engine components, at approximately ¥21 billion. Meanwhile, it estimated the 2030 impact of opportunities, including industry restructuring driven by accelerated electrification and the expansion and development of low-carbon products, at approximately ¥23 billion.」
The financial impacts in the climate change scenario analysis were revised from the previously disclosed approximately ¥31 billion in transition risks and approximately ¥25 billion in opportunities to approximately ¥21 billion and approximately ¥23 billion, respectively. The natural disaster risk under the 4°C scenario remains approximately ¥600 million. - FY2025AdvancedAnnual report
「The group conducted scenario analysis covering the consolidated 愛三 Group for the business impact in 2030, a potential milestone in the widespread adoption of vehicle electrification, as well as in 2050, the target year for carbon neutrality. … Under the 1.5°C (below 2°C) scenario, in which the transition to a decarbonised society progresses, the group estimated the 2030 impact at approximately ¥31 billion for risks and approximately ¥25 billion for opportunities. Under the 4°C scenario, it estimated the 2030 impact of risks such as more frequent and severe natural disasters at approximately ¥600 million.」
The TCFD analysis was expanded from covering 2030 to also include 2050, and the financial impacts were quantified as approximately ¥31 billion in transition risks, approximately ¥25 billion in opportunities and approximately ¥600 million in physical risks. - FY2023First statedAnnual report
「To identify the financial impact of climate change, the group conducted scenario analysis covering the consolidated group in respect of the business impact in 2030, a potential milestone in the widespread adoption of vehicle electrification. The scenario analysis adopted multiple scenarios of 1.5°C/2°C and 4°C.」
Based on the TCFD Recommendations, the company analysed the financial impact on the consolidated group in 2030 under 1.5°C, 2°C and 4°C scenarios, and for the first time disclosed initiatives to incorporate the mitigation of climate-related risks and the creation of opportunities into its medium-term management plan.