Physical and Transition Risks of Climate Change and the Risk of Failing to Meet ESG Targets

「The ORIX Group intends to continue its efforts to address material ESG issues. However, developments in the political, economic, technological, social and market environments, as well as other factors, are largely beyond the Company's control and involve significant uncertainty. They may affect the Company's strategy or organizational capabilities for achieving its material ESG targets as planned, and the Company may fail to achieve the targets by the deadlines it has set.」

「The physical and transition risks arising from climate change may adversely affect the ORIX Group's business performance. Major physical risks include the possibility that damage to facilities and business locations operated by the ORIX Group could prevent business continuity, and that rising temperatures could increase operating and construction costs. Major transition risks include the possibility that stricter coal phase-out policies could affect coal and biomass co-firing power generation businesses, and that carbon taxes could increase the costs of various businesses. These and other factors could adversely affect the ORIX Group's business activities, financial position and operating results.」