Overview of TCFD Guidance 2.0
In order to realize a "virtuous cycle of environment and growth", it is important to provide funds to companies that areactively engaged in climate change measures. In December 2018, the Ministry of Economy, Trade and Industry formulated the"TCFD Guidance" to promote corporate disclosure based on TCFD recommendations.

As disclosure in line with the TCFD recommendations and their utilization is progressing worldwide, the TCFD Consortium,
established under the leadership of the private sector made revisions and released the "TCFD Guidance 2.0" to expand
commentary based on up-to-date knowledge and trends from both within Japan and overseas, sector-specific guidance,and case examples.
(Underlines and red letters indicate major revisions.)

Chapter 1 (Introduction)•••

Background: the purpose of the preparation and revision of the guidance is explained
based on recent trends
Explanations on the positioning of the guidance and its relationship with the TCFD
recommendations
The columns also comment on other related matters

Main columns in this chapter
The Inaugural TCFD Summit
Green Investment Guidance
Other efforts to respond to TCFD

Chapter 2 (Commentaries on Disclosures in Accordance with the TCFD Recommendations)
Questions concerning the disclosure of climate-related information are discussed focusing on the four items listed under the TCFD
Recommendations. Disclosed cases also appear in this guidance and supplementary collection of case examples.
•Media for information disclosure
Main columns in this chapter
 Material information should be disclosed in financial reports, but others can be reported inInternational discussions on theother media such as integrated reports etc.
transition towards the realization of the Examples of disclosure in multiple media as well as survey results on disclosure media
objectives of the Paris Agreement•Explanation on the four themes of the TCFD recommendations
 Each theme is explained based on domestic and overseas related literature.
Initiatives on climate change-related[examples of commentaries]
innovation (Zero-Emission Challenge,
 Strategy: Introduces how R & D and innovation can be disclosed, and existing IEA scenariosetc.) Metrics and Targets: Story-based disclosure on how they will lead to corporate value creation,
Summary of “Practical guide for
reduction contribution, etc.
Scenario Analysis in line with the TCFD•
Disclosure methods for companies with diverse business models
Recommendations: 2nd edition”
 Disclose according to the impact of each business models on climate change is recommended.
•Steps for Implementing the TCFD Recommendations at Mid-cap and Small- andMethod for assessing and disclosing
Medium-sized Companies
avoided emission through the global
 Companies that is able to contribute to climate change should actively disclose their businessvalue chain
opportunities

Overview of TCFD Guidance 2.0
Chapter 3 (Sector-specific guidance)
Desirable strategies and recommended disclosure items for industries with different risks and opportunities for climate change are explained*
SectorExamples of disclosure recommendations
Automobiles
R&D of vehicles leading to emission reduction during driving phase, details of specific technological development efforts, andestablishment of future targets (Number of units and market share)
Steel
Efforts on improving efficiency (energy intensity) of production process, and progress and prospect on development ofadvanced technologies
Chemistry
Amount of reduction contribution through environment-contributing products, R & D efforts, and supply chain management
efforts (Raw material procurement policy, etc.)
Electrical /IoT solution leading to emission reduction and development for energy saving technologies (Energy management, etc.)
Electronic
EnergyDevelopment of technologies for renewables and efficiency improvement / modernization of power generation facilities,
approaches to such technologies, and effects of efficiency improvement
Risks and measures related to the supply of raw materials and water resources, measures to reduce emissions including
Food
food loss reduction, product development, and the identification of business opportunities
Scenario analysis (total credit cost), governance and risk management system, sustainable finance goals and achievements
Banking
Life insurance
Non-life
insurance
Internationalshipping

Policy for ESG investments and loans, efforts to identify risks associated with climate change, status of preparation ofinvestment and loan standards, and engagement with investment and loan recipients
Risk management in non-life insurance, disaster prevention and mitigation efforts, and provision of insurance and services inresponse to climate change and new technologies
Efforts to utilize energy efficient vessels and alternative fuel vessels, changes in freight movement, governance structure toreflect the changes* For TCFD Guidance 2.0, food, banking, life insurance, and non-life insurance (July, 2020), and international shipping (March, 2022) are added.

Case examples (separate volume)•••

Collected and categorized examples of disclosure in line with the TCFD recommendations to complement the commentaries inTCFD Guidance 2.0
For the benefit of many companies, the case examples cover a wide range of cases relating to the TCFD recommendations and TCFD
Guidance 2.0, primarily based on the opinions of investors (Especially "GIG Supporters*")
Since TCFD-aligned disclosure in Japan has been enhanced in both quality and quantity, emphasis was placed on selecting cases ofJapanese companies (47 in Japan and 28 overseas)* The TCFD Consortium established the “GIG Supporters” to promote the "Guidance for Utilizing Climate-related Information to Promote Green Investment (GreenInvestment Guidance)“ released in October 2019. Investors and other stakeholders who support and utilize the "Green Investment Guidance" are registered asSupporters and examples of its use are posted on the TCFD Consortium website