Response to Climate Change Risks and Support for the TCFD Recommendations
First written in FY2022. 2 of 5 entries say "Advanced", first in FY2023. Latest entry: FY2026.
North Pacific Bank moved to the "Worse" side of this theme in 2025, 1 year before the typical company in this theme (2026).
The whole theme swung hardest in 2022: 2 of 24 companies on the "Worse" side.
9 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Analysis results Increase in credit costs: ¥12.8 billion–¥19.6 billion ① Increase in credit costs: ¥2.8 billion at most ② Increase in losses incurred by the Bank: ¥400 million at most」
The quantitative results of the climate-change scenario analysis were updated. The increase in credit costs from transition risk was ¥12.8 billion–¥19.6 billion, while physical risk involved credit costs of up to ¥2.8 billion and losses incurred by the Bank of up to ¥400 million. The assumed range for transition risk widened from ¥11.6 billion–¥17.6 billion in the previous fiscal year. - FY2025WorsenedAnnual report
「Analysis results Increase in credit costs: ¥11.6 billion–¥17.6 billion ① Increase in credit costs: ¥3.7 billion at most ② Increase in losses incurred by the Bank: ¥500 million at most」
The quantitative results of the climate-change scenario analysis were updated. The increase in credit costs from transition risk was disclosed as ¥11.6 billion–¥17.6 billion, while physical risk was disclosed as involving credit costs of up to ¥3.7 billion and losses incurred by the Bank of up to ¥500 million. - FY2024AdvancedAnnual report
「Analysis results Increase in credit costs: ¥11.3 billion–¥17.2 billion ① Increase in credit costs: approximately ¥3.5 billion at most ② Increase in losses incurred by the Bank: approximately ¥600 million at most」
The Bank quantified the results of scenario analyses of transition and physical risks related to climate change and disclosed projected increases in credit costs and losses through 2050. - FY2023AdvancedAnnual report
「The Bank recognizes transition risk and physical risk as climate-related risks, as described below. It will continue to conduct analyses using the scenarios recommended by the TCFD and advance quantitative assessments of each risk.」
The Bank gave concrete form to its TCFD response through scenario analyses of transition and physical risks, disclosure of carbon-related assets accounting for 12.0%, an investment and lending policy that takes environmental and social considerations into account, and sustainable loans. - FY2022First statedAnnual report
「The damage caused by climate change risks is expanding each year, including the rapid increase in natural disasters resulting from global warming and associated abnormal weather. Depending on the extent of such damage, the Bank's performance and financial position could be adversely affected not only through impacts on its operations, but also through increased credit risk resulting from deterioration in the business activities and operating conditions of its customers. To address climate change, the Bank expressed its support for the TCFD recommendations in May 2021 and is pursuing specific initiatives, including identifying and assessing climate-related risks and opportunities and incorporating them into its risk management framework.」
The Bank disclosed for the first time, as a separate major risk, the impact of climate change on operations and the increase in credit risk through deterioration in customers' conditions. It also identified support for the TCFD recommendations in May 2021, identification and assessment of climate-related risks and opportunities, and their incorporation into risk management as the response measures.