Risk Management

System of Risk Management

We have established the "Crisis Management Basic Manual" as a company-wide action guideline for our risk and crisis management. With the president as the top responsible person, we will grasp the risks that will have a significant adverse effect on the achievement of management goals and business activities in each department of the entire company, formulate and implement risk reduction measures. And we are trying to take necessary measures across departments to reduce damage in the unlikely event that a risk becomes apparent. In cooperation with the Headquarters Compliance Committee, the Risk Management Office under the direct control of the president maintains, operates, and promotes it, and reports on risk inspection activities and general reports based on internal audits to the Board of Directors.

Information Disclosure based on TCFD*1 Recommendations

We will enhance our corporate resilience by properly identifying and addressing the physical and transition risks associated with climate change, while identifying business opportunities that need to be addressed and dealing with them in a planned and strategic manner.
In May 2019, we announced our support of TCFD and began actively disclosing financial information relating to climate change based on TCFD recommendations. In order to achieve a society where the average temperature rise is limited to 1.5°C, we analyzed the risks and opportunities associated with climate change using a 4°C scenario (public policy scenario*2, etc.) and a scenario of under 2°C (SDS scenario*3, etc.), integrating the results into our business and financial plans.

*1 Financial Stability Board (FSB) task force on the disclosure of climate-related financial information.
*2 Transition scenario expressed by the International Energy Agency (IEA). An undesirable world, with scenarios that limit the increase in average temperature to 2.6-4°C by 2100.
*3 Transition scenario presented by the International Energy Agency (IEA). An ideal outlook, in a scenario where the increase in average temperature is limited to less than 1.8°C.