Please refer to Risk Management for details on our risk management structure.
Our climate-related risk assessment process follows the procedure outlined in ISO 31000:2018 (Figure A), an international risk management standard. As a general rule, we assess and manage climate-related risks and opportunities on an annual basis. We update external and internal factors related to climate change and share information regarding the Group's status among the members of the Climate Change Strategy Working Group. We then identify risks and analyze their causes, prevention measures, mitigation measures, and residual risks (remaining risks and risk level after prevention and mitigation measures have been implemented) (Figure B). We then assess the residual risks using the Risk Assessment Matrix (Figure C) we developed.
Regarding these assessments and revisions of our climate-related policies, after deliberation and resolution by the Sustainability Committee, reports will be submitted to the Executive Committee or the Board of Directors, depending on the matter.
Figure A: ISO 31000 Process
Figure B: Risk Analysis Process
Figure C: Risk Assessment Matrix
Related Page
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Climate Change>Governance and Strategy
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Climate Change>Efforts to Reduce GHG Emissions
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Climate Change>Energy Transition
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Climate Change>Metrics, Targets, and Results