Physical and Transition Risks Associated with Climate Change
First written in FY2023-Q3. . Latest entry: FY2026.
The whole theme swung hardest in 2024: 6 of 35 companies on the "Worse" side.
13 other companies' latest entry also says "Other".
- FY2026Updated scenario analysis impact estimatesAnnual report
「Analysis results: the impact on credit costs was a single-year increase of approximately ¥5.9 billion (based on 31 March 2026)」
The company defined the power, automotive and real estate sectors as the scope of transition risk analysis and updated the single-year impact on credit costs to approximately ¥5.9 billion. The cumulative impact of physical risk was estimated at approximately ¥1.5 billion. - FY2025Update of analysis scope and impact estimatesAnnual report
「Analysis results: the impact on credit costs was a single-year increase of approximately ¥5.3 billion (based on 31 March 2025)”; “Analysis results: the impact on credit costs was a cumulative increase of approximately ¥1.2 billion (based on 31 March 2025)」
The company expanded the scope of transition risk analysis to 3 sectors: power, automotive and real estate, and updated the impact estimate to a single-year increase of ¥5.3 billion. The cumulative impact estimate for physical risk was ¥1.2 billion. - FY2024Refinement of scenario analysis and update of impact estimatesAnnual report
「Analysis results: the impact on credit costs was an annual increase of approximately ¥1.6 billion (based on 31 March 2024)”; “Analysis results: the impact on credit costs was a cumulative increase of approximately ¥1.3 billion (based on 31 March 2024)」
The company disclosed scenario analysis covering the power and automotive sectors for transition risk and flood impacts for physical risk, updating the estimated impacts to an annual increase of ¥1.6 billion and a cumulative increase of ¥1.3 billion. - FY2023Refinement of scenario analysis and quantification of impactsAnnual report
「Based on estimates through 2050, the impact on credit costs was estimated to be an annual increase of approximately ¥400 million.」
The company conducted transition and physical risk analyses using 1.5°C and 4°C scenarios, estimating an annual increase in credit costs of approximately ¥400 million for transition risk and a cumulative increase of approximately ¥1.2 billion for physical risk. - FY2023-Q3First statedAnnual report
「If natural disasters or extreme weather associated with climate change disrupt the businesses of counterparties or the group's operations and impair the value of collateral held by the group (physical risk), or if counterparties' financial conditions deteriorate due to measures taken in response to policies and regulations associated with the transition to a decarbonised society (transition risk), this could affect the group's performance and financial condition.」
The company identifies physical and transition risks, as well as the risk that its response to climate change and related disclosures may be considered inadequate.