Potential Materialization of Climate Change Risks
First written in FY2022. 3 of 5 entries say "Advanced", first in FY2024. 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".
- FY2026Expansion of climate change scenario analysis and update of quantificationAnnual report
「Assumption: introduction of a “carbon tax”; scenario: 1.5°C scenario; scope of analysis: energy sector (oil, gas and power), rail transportation, trucking services, automobiles and parts, capital goods, processed foods and processed meat; analysis period: through 2050; analysis result: ¥3.6 billion increase in credit-related expenses」
Capital goods, processed foods and processed meat were added to the transition risk analysis, and the increase in credit-related expenses through 2050 was estimated at ¥3.6 billion. The impact of physical risks was considered to be up to ¥2.3 billion. - FY2025AdvancedAnnual report
「Assumption: introduction of a “carbon tax”; scenario: 1.5°C scenario; scope of analysis: energy sector (oil, gas and power), rail transportation, trucking services, automobiles and parts; analysis period: through 2050; analysis result: ¥4.7 billion increase in credit-related expenses」
Climate change risk analysis was expanded beyond energy to rail transportation, trucking services, and automobiles and parts, quantifying the increase in credit-related expenses from transition risks at ¥4.7 billion and the impact of physical risks at up to ¥1.3 billion. - FY2024AdvancedAnnual report
「Based on transition risks, the Bank estimated changes in the finances of the relevant counterparties, taking into account the impact of introducing a carbon price and other factors, and calculated the increase in credit costs based on changes in obligor classifications. Analysis period: through 2050. Analysis result: ¥2 billion increase in credit-related expenses」
For climate change risks, transition risk analysis was expanded to the energy and transportation sectors, and the increase in credit-related expenses through 2050 was quantified at ¥2 billion. The estimated increase from physical risks was ¥1.2 billion to ¥2.3 billion in aggregate. - FY2023Quantification of climate change risk scenario analysisAnnual report
「Under the IPCC RCP2.6 scenario (2°C scenario) and RCP8.5 scenario (4°C scenario), the Bank conducted an analysis of the impact of flooding on the finances of business borrowers and the increase in credit-related expenses attributable to damage to collateral real estate. The analysis indicated an aggregate increase in credit-related expenses of ¥1.2 billion to ¥2.3 billion.」
For climate change risks, quantitative analysis was disclosed based on 2°C and 4°C scenarios, an analysis period through 2050, and an aggregate increase in credit-related expenses of ¥1.2 billion to ¥2.3 billion. - FY2022First statedAnnual report
「Extreme weather and natural disasters caused by climate change, as well as changes in policies, regulations and markets associated with the transition to a decarbonized society, may adversely affect the Group’s performance through business stagnation, impairment of the value of collateral assets and increased credit-related expenses resulting from deterioration in customers’ operating performance.」
Physical risks from climate change and transition risks associated with decarbonization were disclosed separately for the first time as potentially leading to business stagnation, impairment of collateral value and increased credit-related expenses.