Risk of higher earnings volatility and credit costs from climate change and the transition to a decarbonised society
First written in FY2021. 3 of 5 entries say "Advanced", first in FY2022. Latest entry: FY2026.
Fukuoka Financial Group 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 2026: 11 of 51 companies on the "Worse" side.
10 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Additional credit costs that could arise by 2050: up to ¥31.5 billion in a single year; cumulative ¥17.6 billion to ¥74.1 billion」
Additional credit costs from climate change scenario analysis have been quantified as up to ¥31.5 billion in a single year for physical risks and a cumulative ¥17.6 billion to ¥74.1 billion through 2050 for transition risks. - FY2025AdvancedAnnual report
「The results of scenario analyses calculated during fiscal 2024 are as follows. We assess that the impact of both physical and transition risks on the Group's results and financial position is limited. Additional credit costs that could arise by 2050 are up to ¥5 billion for physical risks and a cumulative ¥12 billion to ¥40 billion for transition risks.」
Climate change risks have been quantified through scenario analysis, with additional credit costs through 2050 disclosed as up to ¥5 billion for physical risks and a cumulative ¥12 billion to ¥40 billion for transition risks. - FY2023AdvancedAnnual report
「FFG uses scenario analysis to understand the impact of climate-related risks on FFG and establish the resilience of its strategy.」
Climate change risks have been broken down into credit risk, tangible-asset risk and reputational risk, among others, with scenario analysis using the RCP8.5, RCP2.6 and NGFS scenarios and estimates of additional credit costs specified. - FY2022AdvancedAnnual report
「Climate change risks are expected to include damage to the Group's branch network from an increase in typhoons, torrential rains and other events, resulting in problems with business continuity. In addition, the deterioration of the financial condition of credit counterparties due to impairment of collateral values or business suspensions may increase the Group's credit costs. Furthermore, policy and regulatory tightening and market changes accompanying the transition to a decarbonised society may deteriorate the financial condition of credit counterparties and increase credit costs.」
Climate change risks are divided into physical risks, collateral and business risks of counterparties, and transition risks, with their impacts on branches and credit costs specified. - FY2021First statedAnnual report
「In recent years, damage caused by extreme weather and other events has become increasingly severe worldwide. In Kyushu, the Group's principal operating base, major damage from torrential rains, typhoons and other events occurs frequently, making the response to climate change a major challenge for corporate management.」
The potential effects of physical damage from climate change and the transition to a decarbonised society on clients, earnings and credit costs have been disclosed independently as particularly significant risks for the first time.