Addressing Physical and Transition Risks from Climate Change
First written in FY2024. 1 of 2 entries say "Worsened", first in FY2026. Latest entry: FY2026.
The Toho Bank moved to the "Worse" side of this theme in 2026, the same year as the typical company in this theme.
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
「Our measurement of the concentration of exposure to carbon-related assets showed that carbon-related assets represented 16.4% of the Bank’s total credit exposure.」
The ratio of carbon-related assets to credit exposure was updated from 15.4% to 16.4%, newly quantifying the credit-risk exposure associated with climate change. - FY2024First statedAnnual report
「Regarding climate-change risk, we recognize physical risk and transition risk. Physical risk includes increased credit risk caused by the impact of climate change on the business activities and financial condition of customers, as well as operational risk caused by damage to operating branches and other facilities. Transition risk includes increased credit risk for borrowers affected by the transition to a low-carbon society, including the response to tighter climate-related regulations.」
Climate-change risk was disclosed as a standalone risk divided into physical and transition risks. The Bank estimated that carbon-related assets represented 15.4% of its credit exposure and that physical risk could increase credit costs by approximately ¥2.0 billion through 2050.