Climate-Related Transition and Physical Risks

「The Company recognises transition risk and physical risk as climate change risks. Transition risk includes the potential increase in credit risk for customers affected by the transition to a low-carbon society, such as through responses to tighter climate-related regulations. Physical risk includes credit risk arising from the impact of climate change and natural disasters on customers' business activities, deterioration in business performance and increased credit-related expenses due to impairment of collateral, as well as operational risk from damage to operating branches. Carbon-related assets account for 27.7% of the Company's lending exposure.」