Climate Change Data

Environmental Metrics

ESG Focus Areas

• Fiscal Sustainability

Climate Goals & Targets

Environmental Challenges

• High ratio of gross government debt to GDP in Japan.
• Sluggish economic growth and mild deflation.
• Rapid aging of the population and the failure of the Japanese economy to adjust to it.

Mitigation Strategies

• Structural reforms in both the economic and fiscal areas to restore fiscal soundness.
• Strengthening growth potential through productivity improvements.
• Making the fiscal structure sustainable in the situation of an aging population.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Decreased CO2 emissions in recent years compared to previous levels
• Achieved annual average reduction in energy consumption intensity of 1 percent or more over the medium to long term, as required by the Act on the Rational Use of Energy

Governance Achievements

• Established the Climate Coordination Hub (CCH), an internal network, to promote information sharing and coordination on various measures and address issues related to climate change

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions caused by natural disasters
• Potential for energy price fluctuations and decreased investment/employment in high-emission industries
• Physical risks (large-scale disasters, rising sea levels)
• Transition risks (policy changes, technological shifts, consumer preferences)

Mitigation Strategies

• Introduced Funds-Supplying Operations to Support Financing for Climate Change Responses (Climate Response Financing Operations)
• Supporting financial institutions in identifying and managing climate-related financial risks
• Conducting scenario analysis (in cooperation with the Financial Services Agency) to measure climate-related risks
• Encouraging financial institutions to enhance TCFD-based disclosures
• Deepening analysis of climate change's impact on the macroeconomy, financial markets, and the financial system
• Strengthening business continuity plan to cope with increasing flood risk

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Large-scale disasters
• Rising sea levels
• Floods

Transition Risks

• Policy changes
• Technological shifts
• Consumer preferences

Opportunities

• Increase in investment related to renewable energy

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

• SDGs

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Strengthened business continuity plan to cope with increasing flood risk
• Making efforts on reduction in greenhouse gas emissions and energy saving

Governance Achievements

• Set up an internal network, the Climate Coordination Hub, to enhance bank-wide initiatives on climate change

Climate Goals & Targets

Environmental Challenges

• Climate change could exert an extremely large impact on developments in economic activity and prices as well as financial conditions from a medium- to long-term perspective.
• Climate change, through the channels of "physical risk" and "transition risk," could significantly affect the businesses of financial institutions, and consequently the stability of the financial system.

Mitigation Strategies

• Introduce a new fund-provisioning measure so that financial institutions that disclose a certain level of information on their efforts to address climate change can receive funds from the Bank against their investment or loans made as part of such efforts.
• Actively support financial institutions in identifying and managing their climate-related financial risks, with a view to maintaining the stability of the financial system and the smooth-functioning of financial intermediation.
• Deepen its analysis on how climate change would affect the macroeconomy including economic activity and prices, financial markets, and the financial system, and make efforts in collecting climate-related data and refining analytical tools in order to better conduct surveillance and identify risks.
• Make contributions in developing measures against climate change by learning from other jurisdictions' experiences at international forums

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Regulatory changes, market shifts

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Decreased CO2 emissions in recent years compared to previous levels.
• Achieved annual average reduction in energy consumption intensity of more than 1 percent over the medium to long term.

Governance Achievements

• Established the Climate Coordination Hub (CCH) to promote information sharing and coordination on climate change measures.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions caused by natural disasters.
• Potential for energy price fluctuations and decreased investment/employment in high-emission industries.
• Physical risks (large-scale disasters, rising sea levels) and transition risks (policy changes, technological shifts, consumer preferences) impacting the financial system.

Mitigation Strategies

• Introduced Funds-Supplying Operations to Support Financing for Climate Change Responses (Climate Response Financing Operations) to provide funds to financial institutions for climate-related investments and loans.
• Actively supporting financial institutions in identifying and managing climate-related financial risks through on-site examinations and off-site monitoring.
• Conducting scenario analysis (in cooperation with the Financial Services Agency) to measure climate-related financial risks.
• Encouraging financial institutions to enhance their disclosures based on the TCFD framework.
• Deepening analysis of climate change's impact on the macroeconomy, financial markets, and the financial system; collecting climate-related data and refining analytical tools.
• Strengthening business continuity plans to cope with increasing flood risk.
• Making efforts to reduce greenhouse gas emissions and promote energy saving in its management of the Head Office and branch facilities.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Large-scale disasters
• Floods
• Rising sea levels

Transition Risks

• Policy changes
• Technological shifts
• Changes in consumer preferences

Opportunities

• Increase in investment related to renewable energy

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced CO2 emissions in recent years due to initiatives to reduce greenhouse gas emissions and promote energy saving.
• Reduced energy consumption intensity by an annual average of 1 percent or more over the medium to long term (target under the Energy Saving Act).

Social Achievements

• Not disclosed

Governance Achievements

• Established the Climate Coordination Hub (CCH) to promote information sharing and coordination on various measures to address climate change.
• Conducts yearly performance reviews of related initiatives taken by each department.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on economic activity, prices, and the financial system (physical and transition risks).
• Data gaps in assessing climate-related financial risks.

Mitigation Strategies

• Introduced Funds-Supplying Operations to Support Financing for Climate Change Responses (Climate Response Financing Operations).
• Actively supporting financial institutions in identifying and managing climate-related financial risks.
• Deepening analysis of climate change's impact on the macroeconomy, financial markets, and the financial system.
• Working to collect climate-related data and refine analytical tools.
• Participating in international discussions on climate change responses and promoting sustainable finance.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Large-scale disasters
• Rising sea levels

Transition Risks

• Changes in policies, technologies, or consumer preferences associated with the transition to a carbon-neutral society

Opportunities

• Increase in investment related to renewable energy

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed