Decarbonization Transition Risks and Physical Risks Associated with Climate Change
First written in FY2023. 1 of 2 entries say "Worsened", first in FY2026. Latest entry: FY2026.
F.C.C. moved to the "Worse" side of this theme in 2026, 1 year after the typical company in this theme (2025).
9 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The largest external and internal risk is the expected structural decline in revenue from the core clutch business as tighter regulations on internal-combustion-engine vehicles and changes in market values driven by climate change take effect. Other risks include delays in responding to related technological innovations in electrification and automation, as well as risks arising from the surrounding social and economic environment.」
The Company identified climate change and transition risks associated with decarbonization as its largest risks, involving a structural decline in revenue from the core clutch business and delays in responding to technological innovation. - FY2023First statedAnnual report
「Risks associated with the transition to a decarbonized economy (primarily risks under a 1.5°C scenario)" "Risks associated with the physical impacts of climate change (risks under a 4°C scenario)」
Based on the TCFD recommendations, the Company newly organized transition risks, including carbon taxes, environmental regulations, delays in technology development and declining demand, and physical risks, including typhoons, floods, droughts and rising sea levels, together with their timing and severity.