Identifying climate-related risks and supporting the transition to decarbonization
First written in FY2022. 4 of 5 entries say "Advanced", first in FY2023. 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".
- FY2026AdvancedAnnual report
「Analysis results Increase in credit costs: up to approximately ¥4.2 billion (cumulative) Increase in credit costs: up to approximately ¥1.8 billion (cumulative) Impact of losses at branches and other facilities: up to ¥400 million (cumulative)」
The 2025 scenario analysis updated the cumulative impact of transition risk and physical risk on credit costs and branch losses through 2050. The ratio of loans outstanding to the 4 carbon-related sectors was 42.7%. - 2026-06-01AdvancedGeneral Meetings of Shareholders
「[Transition risk] Based on analysis and estimates of the status of the Bank’s borrowers if a carbon tax were introduced (sectors analyzed: electric power, gas, and marine transportation), the cumulative increase in credit-related expenses could reach a maximum of approximately ¥3.2 billion by 2050 (as of the end of fiscal 2024).」
The Bank disclosed the sectors covered by its climate change risk scenario analysis and its estimate of the impact on credit-related expenses. - FY2024AdvancedAnnual report
「Analysis results Increase in credit costs: up to approximately ¥6.3 billion (cumulative) Increase in credit costs: up to approximately ¥3.0 billion (cumulative) Impact of losses at branches and other facilities: up to ¥500 million (cumulative)」
Scenario analysis of transition risk and physical risk through 2050 was conducted to quantify the impact on credit costs and branch losses. - FY2023AdvancedAnnual report
「Transition risk Based on the IEA’s 2°C and 1.5°C scenarios, the Bank analyzed the status of its borrowers and portfolio if a carbon tax were introduced and estimated the impact on its financial position. The increase in credit costs is expected to total up to approximately ¥10.5 billion by 2050.」
Scenario analysis of transition risk and physical risk through 2050 was conducted to estimate the impact on credit costs and other factors. - FY2022First statedAnnual report
「The Bank Group recognizes two types of climate-related risk: physical risk and transition risk. Physical risk includes credit risk arising from damage to customers’ assets caused by extreme weather and operational risk arising from damage to the Bank’s branches and other facilities. Transition risk includes increased credit risk for customers affected by tighter climate-related regulations, advances in technology toward decarbonization and other factors.」
For the first time, climate change risks were explicitly presented separately as physical risk and transition risk. The disclosure also states that torrential rain in the Setouchi region has increased the impact on customers and the Bank.