Risks to Lending and Financial Impact from Climate Change
First written in FY2020. 1 of 5 entries say "Advanced", first in FY2026. Latest entry: FY2026.
The whole theme swung hardest in 2024: 6 of 35 companies on the "Worse" side.
14 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「We assess opportunities and risks from both qualitative and quantitative perspectives using 2 scenarios, “1.5°C” and “4°C.” We estimate the impact of climate change on our credit risk through 2050.」
Regarding climate change risks, it has advanced to the stage of conducting 1.5°C and 4°C scenario analyses for key sectors and quantitatively estimating the impact of transition and physical risks on credit risk through 2050. - FY2022-Q2Impact period described as ranging from the short to long termAnnual report
「Based on a qualitative assessment using multiple climate change scenarios and taking our group’s portfolio composition into account, we recognize that both transition risk and physical risk may affect us from the short to long term (*1).」
It describes the potential impact horizons for both transition risk and physical risk as ranging from the short to long term. - FY2021Both transition and physical risks defined over the medium to long termAnnual report
「Based on a qualitative assessment using multiple climate change scenarios and taking our group’s portfolio composition into account, we recognize that both transition risk and physical risk may affect us from the medium to long term.」
It defines both physical risk and transition risk as potentially affecting the business from the medium to long term. - FY2021-Q1Extension of the time horizon for physical riskAnnual report
「Based on a qualitative assessment using multiple climate change scenarios, we recognize that transition risk may affect us from the short to medium term, while physical risk may affect us from the medium to long term (*1).」
It expands the period in which physical risk may have an impact from the previous long-term horizon to the medium- to long-term horizon. It also provides greater detail on the scenario-based assessment of climate change and the financial impact through loans. - FY2020First statedAnnual report
「We recognize that transition risk may affect us over the short to medium term, while physical risk may affect us over the long term (*1). *1 Short term: approximately 5 years; medium term: approximately 15 years; long term: approximately 35 years」
It identifies the risk that climate change may affect financial performance through loans, divides it into transition risk and physical risk, and explicitly defines time horizons of approximately 5, 15 and 35 years for the first time.