Risks Associated with Climate Change and the Transition to a Low-Carbon Society
First written in FY2021-Q3. 3 of 6 entries say "Advanced", first in FY2022. Latest entry: FY2026.
The whole theme swung hardest in 2026: 11 of 51 companies on the "Worse" side.
18 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Physical risk ・Potential credit-related costs through 2050: ¥6.1–7.7 billion Transition risk ・Potential credit-related costs through 2050: ¥48.7 billion」
With climate change identified as a top risk, the Group updated its scenario analyses of physical and transition risks and quantified credit-related costs through 2050 at ¥6.1–7.7 billion for physical risk and ¥48.7 billion for transition risk. - FY2024AdvancedAnnual report
「Analysis results ・Potential increase in credit costs through 2050: up to ¥6 billion」
With climate change identified as a top risk, the Group conducted scenario analyses of physical and transition risks and estimated the potential increase in credit costs through 2050 at up to ¥6 billion for each risk, or ¥6 billion cumulatively. It also disclosed a 29.6% credit exposure ratio to carbon-related sectors. - FY2022AdvancedAnnual report
「(ⅰ) Aim to achieve carbon neutrality in the Group’s greenhouse gas emissions (Scopes 1 and 2) by fiscal 2030 (ⅱ) Aim to achieve carbon neutrality across the entire supply chain, including the financed and invested portfolio, in terms of greenhouse gas emissions (Scopes 1, 2, and 3) by fiscal 2050」
As a response to climate change risk, the Group has for the first time explicitly stated its carbon neutrality targets: fiscal 2030 for the Group’s emissions and fiscal 2050 for the entire supply chain, including its financed and invested portfolio. - FY2022WorsenedAnnual report
「Hiroshima Prefecture and the Group’s other three home prefectures are regions where automobile manufacturing, shipbuilding, and related industries are thriving. They are expected to be particularly affected by climate change and the transition to a decarbonized society. In addition to the effects of tighter regulations and technological innovation on local companies, the industrial structure of the local region, particularly its manufacturing industries, may undergo substantial transformation.」
Regarding climate change risk, the disclosure provides more specific detail on transition risks involving structural changes in the main local industries, in addition to physical risks from natural disasters. - FY2021RestatedAnnual report
「Natural disasters such as typhoons and torrential rains caused by climate change have rapidly increased in frequency and severity, and these “physical risks” pose a major threat to local communities and economies.」
In addition to physical risks from natural disasters, transition risks associated with the transition to a decarbonized society continue to be treated as important risks. - FY2021-Q3First statedAnnual report
「In recent years, natural disasters such as typhoons and torrential rains caused by climate change have rapidly increased in frequency and severity, posing a major threat to local communities and economies.」
The disclosure indicates potential spillover effects on damage to borrowers, declining competitiveness, disruption of business activities, human and physical asset risks, and a decline in the capital adequacy ratio.