Quantitative Assessment of Climate Change Risks and TCFD Response
First written in FY2023. 3 of 5 entries say "Worsened", first in FY2024. Latest entry: FY2026.
The Akita Bank moved to the "Worse" side of this theme in 2024, 2 years before the typical company in this theme (2026).
The whole theme swung hardest in 2024: 6 of 35 companies on the "Worse" side.
8 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Increase in credit costs, based on the allowance for loan losses: approximately ¥2.71 billion cumulatively through 2050」
The Bank updated its climate change scenario analysis and quantified the increase in credit costs for transition risk at approximately ¥2.71 billion cumulatively through 2050 and for physical risk at an average of approximately ¥5.30 billion. - FY2025WorsenedAnnual report
「Analysis results — Increase in credit costs, based on the allowance for loan losses: approximately ¥2.63 billion cumulatively through 2050」
The Bank updated its climate change scenario analysis and quantified the increase in credit costs for transition risk at approximately ¥2.63 billion cumulatively and for physical risk at an average of approximately ¥5.31 billion. - FY2024WorsenedAnnual report
「Analysis results — Increase in credit costs: approximately ¥1.7 billion cumulatively / Analysis results — Increase in credit costs: up to approximately ¥4.1 billion」
The Bank continued its climate change scenario analysis and quantified the increase in credit costs at approximately ¥1.7 billion cumulatively for transition risk and up to approximately ¥4.1 billion for physical risk. The estimated transition risk increased from the previous disclosure. - FY2024-Q1RestatedAnnual report
「During the cumulative first quarter of the consolidated fiscal period under review, no matters arose that could materially affect investors' decisions. There were also no material changes to the business and other risks described in the Annual Securities Report for the previous fiscal year.」
The Bank states that there have been no material changes to its climate change risks. - FY2023First statedAnnual report
「The Bank recognizes transition risk and physical risk as climate-related risks. For transition risk, it anticipates increased credit risk for certain customers’ businesses due to factors such as tighter climate-related regulations and changes in consumer preferences associated with the transition to a decarbonized society. For physical risk, it anticipates increased credit risk due to damage to collateral, impacts on customers’ business activities and changes in their business conditions resulting from an increase in natural disasters, including floods, caused by climate change, as well as increased operational risk due to damage to the Bank’s branches and other facilities.」
In line with the TCFD recommendations, the Bank separately identified transition and physical risks and conducted scenario analysis through 2050. It quantified the cumulative increase in credit costs at approximately ¥700 million for transition risk and up to approximately ¥3.9 billion for physical risk.