Physical and Transition Risks from Climate Change
First written in FY2022. 3 of 4 entries say "Advanced", first in FY2024. 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
「*From fiscal 2025, the Bank has introduced the GHG emissions visualisation platform “C-Turtle® FE” (provided by NTT DATA Corporation) and uses its transition risk calculation function.」
A GHG emissions visualisation platform was introduced for climate change risk analysis, and its transition risk calculation function was used. Cumulative credit-related expenses from transition risks were estimated at approximately ¥5.1 billion, while physical risk-related increases were estimated at a maximum of approximately ¥1.7 billion under the 2°C scenario and ¥2.2 billion under the 4°C scenario. - FY2025AdvancedAnnual report
「Analysis results Estimated increase in credit-related expenses: approximately ¥8.2 billion cumulatively」
The climate change risk scenario analysis was updated, and cumulative credit-related expenses from transition risks through 2050 were estimated at approximately ¥8.2 billion. For physical risks, estimated increases were a maximum of approximately ¥1.6 billion under the 2°C scenario and ¥2.0 billion under the 4°C scenario. The Bank also disclosed loans outstanding of ¥604.9 billion exposed to flooding and carbon-related assets of 25.60%. - FY2024AdvancedAnnual report
「Qualitative analysis of climate change-related risks (transition risks and physical risks) and opportunities is conducted over short-term (3-year), medium-term (10-year) and long-term (30-year) time horizons.」
The Bank’s response to climate change risks progressed to analysis over short-, medium- and long-term time horizons, identification of carbon-related assets at 24.50%, scenario analysis through 2050, and estimation of credit-related expenses. The Bank disclosed estimated cumulative costs of approximately ¥1.8 billion for transition risks, and maximum costs of approximately ¥1.7 billion under the 2°C scenario and ¥2.2 billion under the 4°C scenario for physical risks. - FY2022First statedAnnual report
「Climate-related risks comprise physical risks and transition risks. Physical risks may increase the Bank’s credit-related expenses through such effects as deterioration in the performance of counterparties and impairment of collateral values resulting from natural disasters caused by climate change. Transition risks may increase the Bank’s credit-related expenses for sectors expected to be affected over the medium to long term by changes in climate-related regulations, tax systems and other factors during the transition to a decarbonised society. In addition, if the Bank is deemed to have an inadequate response to or disclosure of these climate change-related risks, this may affect its performance and financial condition.」
Climate change-related physical risks from natural disasters and other events, transition risks associated with the shift to a decarbonised economy, and risks arising from inadequate response and disclosure were described for the first time as separate key risks.