Transition Risk and Physical Risk Associated with Climate Change
First written in FY2023. 3 of 4 entries say "Advanced", first in FY2024. Latest entry: FY2026.
The whole theme swung hardest in 2022: 2 of 23 companies on the "Worse" side.
15 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Loan amount (¥ million) 74,673 76,803 340,573 49,273 Percentage 3.0% 3.1% 13.7% 1.9%」
Expanded the assessment of climate change risk to disclose loan amounts and percentages by carbon-related sector, showing exposure to energy, transportation, materials and buildings, and agriculture, food and forest products. - FY2025AdvancedAnnual report
「For transition risk, we added the oil industry to the sectors covered this time and conducted an analysis. The results indicate that the financial impact of transition risk and physical risk is limited.」
Added the oil industry to the sectors covered by the climate change risk analysis, expanding the scope of the analysis. - FY2024AdvancedAnnual report
「The analysis indicates that the financial impact of transition risk and physical risk is limited. The bank will continue working to understand the impact of climate-related risks on its financial position by enhancing its scenario analysis methods and expanding their scope.」
In addition to the conventional physical risk analysis, we conducted transition risk analysis under the IEA's NZE 1.5°C Scenario and estimated additional credit-related costs from transition risk at up to ¥800 million. - FY2023First statedAnnual report
「In relation to climate change, the bank recognises the following “risks” and “opportunities.” The “risks” identified as “particularly important risks” take into account the timing of their potential materialisation and their potential impact on the business.」
It identified for the first time as particularly important risks the transition risk to borrowers from decarbonisation regulations and other measures, reputational risk from lending and investment that adversely affects the environment, and physical risk to borrowers, collateral real estate and the bank’s assets from natural disasters. It estimates additional credit-related costs through 2050 of up to ¥4.2 billion.