Climate Change Scenario Analysis and Environmental and Social Considerations in Investment and Lending
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
「To help customers implement decarbonization management, we provide ongoing support through a range of support programs corresponding to each step: understanding, measuring, and reducing.」
Used climate change scenario analysis in customer engagement and expanded support programs to include visualizing CO2 emissions, PPAs, energy-efficiency measures, and J-Credits. - FY2025AdvancedAnnual report
「We have added the oil industry to the sectors covered this time and conducted an analysis.」
Expanded the scope of climate change scenario analysis to the oil industry and continued and expanded transition risk analysis. - FY2024AdvancedAnnual report
「IEA World Energy Outlook 2023 NZE (1.5°C Scenario)」
Expanded the scope of climate change scenario analysis from physical risk to transition risk, and estimated additional credit-related costs of up to ¥800 million through 2050 for the power and gas sectors. For physical risk, the Bank continues to use its previous estimate of up to ¥4.2 billion. - FY2023First statedAnnual report
「Using the RCP8.5 scenario (4°C scenario) from the IPCC's Fifth Assessment Report, we analyzed business counterparties in Oita Prefecture and estimated the increase in credit-related costs resulting from business interruptions at counterparties caused by river flooding and impairment of collateral value for real estate pledged to the Bank. The analysis indicates that additional credit-related costs incurred by 2050 will be up to ¥4.2 billion, comprising ¥3.8 billion from deterioration in financial condition and ¥400 million from collateral impairment.」
Conducted flood risk analysis based on the RCP8.5 4°C scenario and estimated credit-related costs. The Bank also outlined plans to further enhance the analysis, expand its scope, and pursue investment and financing in priority areas such as renewable energy.