Physical and Transition Risks Related to Climate Change
First written in FY2022. . Latest entry: FY2026.
The whole theme swung hardest in 2024: 6 of 35 companies on the "Worse" side.
13 other companies' latest entry also says "Other".
- FY2026Update to climate-change scenario analysisAnnual report
「Analysis period Through 2050 Analysis results Increase in credit costs: approximately ¥3.3 billion at maximum Analysis results Increase in credit costs: approximately ¥1.5 billion at maximum」
The climate change scenario analysis was updated, with the increase in credit costs estimated at a maximum of ¥3.3 billion for physical risk and ¥1.5 billion for transition risk. - FY2025Update to climate-change scenario analysisAnnual report
「The estimated maximum increase in credit costs was approximately ¥4 billion for physical risk and approximately ¥3 billion for transition risk.」
The scenario analysis through 2050 was updated, with the increase in credit costs estimated at a maximum of ¥4 billion for physical risk and ¥3 billion for transition risk. - FY2023Climate change risk scenario analysis and impact estimatesAnnual report
「Physical risk Analysis period Through 2050 Analysis results Increase in credit costs: approximately ¥3 billion at maximum Transition risk Analysis period Through 2050 Analysis results Increase in credit costs: approximately ¥6–7 billion at maximum」
In line with the TCFD recommendations, scenario analysis was conducted for physical and transition risks, and the increase in credit costs through 2050 was estimated. - FY2022First statedAnnual report
「The following climate change-related events may adversely affect the bank’s operations and performance. ・Damage to the bank’s business locations from torrential rain, typhoons, river flooding and other disasters. ・Damage to customers’ assets, including real estate collateral, from torrential rain, typhoons, river flooding and other disasters, and deterioration in customers’ financial condition resulting from business suspensions. ・Deterioration in the financial condition of customers affected by stricter environmental regulations. ・Damage to customers’ asset values and deterioration in their financial condition resulting from the effects of adapting to technological shifts and innovation, and from declining demand due to changes in consumer needs.」
Physical damage to business locations and collateral assets caused by climate change, and deterioration in customers’ financial condition caused by environmental regulations and technological shifts, were disclosed for the first time as separate risks.