Guidance on Climate-related
Financial Disclosures 2.0(TCFD Guidance 2.0)

July 2020

Case Examples

Table of Contents
A. Index..........................................................................................................1
B. Examples of Disclosure Based on TCFD Recommendations.........................3(1) Governance .........................................................................................3(2) Strategy ............................................................................................. 14
I. Method for setting short-, medium- and long-term time frames ......................... 14
II. Presentation of climate-related risks and opportunities ...................................... 21
III. Presentation of R & D activities ............................................................................. 28
IV. How to present scenario analysis .......................................................................... 32
V. Disclosure of resilience .......................................................................................... 57
VI. Scenario analysis of portfolio ................................................................................ 64(3) Risk Management .............................................................................. 66(4) Metrics and Targets ........................................................................... 75(5) Other ................................................................................................. 85
I. Response to TCFD Recommendations ................................................................... 85
II. Disclosure methods for companies with diverse business models ....................... 94

Index

A. Index
RegionAsia and
Oceania
EuropeCountry
Japan
Japan
Japan

Company Name
Ajinomoto Group
Asahi Group Holdings
Daikin Industries Ltd.

Japan
Japan

Daiwa House Group
Government Pension
Investment Fund (GPIF)
Hitachi Group

Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan

Idemitsu Kosan
INPEX Corporation
Itochu Corporation
Japan Iron and SteelFederation
JFE Holdings
Kao Corporation
Kirin Group
Marui Group
Mitsubishi Chemical
Holdings
Mitsubishi Corporation
Mitsubishi UFJ Financial
Group
Mizuho Financial Group
NEC Corporation
Nippon Life Insurance
Nippon Steel Corporation
Nomura Asset Management
Co., Ltd.
Oji Holdings Corporation
Sekisui Chemical Co., Ltd.
Sekisui House Ltd.
Sumitomo Chemical Co., Ltd.
Sumitomo Mitsui Financial
Group, Inc.
Tokio Marine Holdings
Tokyo Electric Power
Company Holdings
Tokyu Fudosan Holdings
Toyota Motor Corporation
1

Business Type
Food
Food
Electrical andelectronics
Construction
Asset owner

Page
90
78
25,89
92
65

Electrical andelectronics
EnergyEnergyTrading house
Steel

94

Steel
Chemicals anddaily necessities
Food
RetailChemicals

43
6,67

Trading house
Banking

9,40,66,86
77

Banking
Electrical andelectronics
Life insurance
Steel
Asset manager

12,71
23

Pulp and Paper
Chemicals
Construction
ChemicalsBanking

18
11,54
57
28,75
34

Non-life
insurance
Power

27

Real estate
Automobiles

56
30,46

83
8,16,44,73
21
39

32,70,88
26
68,76

91
85
64,82

47

IndexRegionCountrySouth
Korea
Hong Kong
Hong Kong
Australia

Americas USA
USA
USA
Europe
UK
UK
UK
UK
UK
UK

Company Name
POSCO

Business Type
Steel

72

MTR
New World Developments
Company Limited
BHP Billiton

Transportation
Real estate

542

Mineralresources
EnergyPower
Chemistry
Automobiles
Insurance
EnergyPower
EnergyBanking
Chemicals anddaily necessities
Mineralresources
EnergyInsurance
EnergyEnergyInsurance
EnergyChemicals

48,59

AES Corporation
Dow Chemical
General Motors
AVIVA
BP
National Grid
Royal Dutch Shell
Standard Chartered
Unilever

Switzerland Glencore

Germany
Germany
NorwayFranceFranceBelgium

Allianz GroupRWE
EquinorAXA
ENGIE
Solvay

2

Page

61
17,38
14
63
35
7
15,36
19
10,52,60,74,81
80,96

20
3
3
84
79
7

Governance(1) Governance
Examples of how climate change is addressed in an organization's governance structure
include the following:(See TCFD Guidance P.29)

RWE

Risk
Management

It states that the Board of Directors (The Executive Board) is involved in the management
process of climate change-related financial risks and opportunities.

Strategyi) Include climate change on board agenda

Governance

B. Examples of Disclosure Based on TCFD Recommendations

Metrics andTargets

Source: RWE “Our responsibility 2019” P.34

Equinorare incorporated into the CEO compensation structure.

3

Other

The following points are described in the Sustainability Report.
⚫ The Executive Board (CEC) and the Board of Directors (BoD) review and monitor
sustainability issues, including climate change risks and opportunities.
⚫ The Safety, Sustainability and Ethics Committee (BoD SSEC) under the Board of
Directors assists the Board in overseeing its sustainability policies.
⚫ Establishment of KPI on sustainability including climate change and its achievement

Governance

Governance
Strategy
RiskManagement

Metrics andTargets
Other
Source: Equinor "2019 Sustainability Report" P. 12

4Governance

The Corporate Responsibility Committee, chaired by the CEO and composed of board
members, meets twice a year to provide strategic guidance and review, including climatechange issues. In addition, the number of meetings of the Board of Directors and theattendance of the Chairman are disclosed with reference to the Corporate Governance Report,
etc.

Governance

MTR

Strategy
RiskManagement
Metrics andTargets
Other

Source: MTR “Sustainability Report 2019” P.29

5

Governance

Governanceii) State that climate change is on the agenda of dedicated committees
Kao Corporation

Strategy

ESG Committee is established under the Board of Directors to discuss and determine thedirection of ESG strategy activities. The ESG Committee is responsible for managing
opportunities related to climate change issues, while the Internal Control Committee is
responsible for risk management under the supervision of the Board of Directors.
It states that the ESG Committee meets four times a year and the Internal Control
Committee meets at least once a year.

Risk
Management

Metrics andTargets
Other
Source: Kao Corporation "Kao Sustainability Databook 2020" P. 86

Source: Kao Corporation "Kao Sustainability Databook 2020" P. 15

6GovernanceIt states that the Audit Committee reviews and approves the content of the TCFD disclosures
under the governance framework with respect to climate change.

Strategy

Source: National Grid ”Annual Report and Accounts 2019/20“ P.58

Governance

National Grid

SolvayRisk
Management

The Executive Committee appoints Climate Risks Officer (CRO) to ensure that climaterelated issues are adequately considered in the Group's strategy and operations.

Metrics andTargets

Source: Solvay website(https://annualreports.solvay.com/2018/en/extra-financial-statements/basis-of-preparation/taskforce-on-climate-related-financial-disclosure.html)

Other

7

Governance

Governance

INPEX Corporation

Strategy

The decision of the corporate position on climate change is made by the Board of Directors,
and it is stated that the assessment of risks and opportunities related to climate change andthe setting of targets are approved by the Management Committee and reported to the Boardof Directors, and that the executive bonuses are linked with climate change actions.
In addition, the Climate Change Strategy Group Division was established within the
Corporate Strategy and Planning Division to address climate change issues across the entire
company.

Risk
Management

Metrics andTargets
Other
Source: INPEX "Sustainability Report 2019" P.45

8

GovernanceAs regards climate change-related governance structures, the role of decision-making
bodies, the frequency of meetings, and the decision-making process are described.

Governance

Mitsubishi Corporation

Strategy
RiskManagement
Metrics andTargets
Other

Source: Mitsubishi Corporation "ESG DATA BOOK 2019" P.30-31

9Governance

Governance

Unilever

Strategy

The board is accountable for managing risks and opportunities, including climate change. In
addition, the operation of sustainability related business strategies (Unilever Sustainable Living
Plan – USLP) including climate change is integrated in the executive committee (Unilever
Leadership Executive – ULE) which supports the Board of Directors. In addition, specialized
governance groups (Energy Board, Sustainable Sourcing Steering Group, Water Board, etc.)
have been established.

Risk
Management

Metrics andTargets
Other
Source: Unilever "UNILEVER ANNUAL REPORT AND ACCOUNTS 2019" P.40

10

Governance

The governance structure related to climate change including supervisory bodies, reportingand deliberation systems, and their frequency are described. Specific examples of past
management decisions on climate change are also disclosed.

GovernanceSekisui Chemical Co. Ltd.

Strategy
RiskManagement
Metrics andTargets
Other

Source: Sekisui Chemical Co., Ltd. "SEKISUI CHEMICAL Group's Response to Climate Change: Information
Disclosure Based upon TCFD Recommendations" P.4

11

Governance

Governance

Mizuho Financial Group
It is disclosed that the climate change-related governance consists of two pillars: oversightand execution. As regards the relationship between oversight and execution, discussions
within the Risk Management Committee and the Executive Management Committee arereported to the Board of Directors, with the Risk Committee and the Board of Directors
providing oversight.

Strategy
RiskManagement

Metrics andTargets
Other

Source: Mizuho Financial Group "TCFD Report 2020" P.10

12

Governance

GovernanceIn addition, the frequency of deliberations and the involvement of decision-making bodies
is shown in a list of governance initiatives.

Strategy
RiskManagement
Metrics andTargets

Source: Mizuho Financial Group "TCFD Report 2020" P.12

Other

13

Strategy

Governance(2) Strategy
I. Method for setting short-, medium- and long-term time frames
Examples of how time frames are taken into account in formulating strategies on climatechange include the following:(See TCFD Guidance P.32)

Strategyi) Formulation of strategies that takes into account product cycles
General Motors

RiskManagement

It is described that responding to regulatory risks requires a long-term perspective, since ittakes 3 to 4 years to design and develop a vehicle, and because a product remains competitivein the market for 4 to 7 years.

Metrics andTargets
Other

Source: General Motors “2018 Sustainability Report” P.185

14

Strategy

Royal Dutch Shell

Strategy

In the annual report, it is stated that the company considers risks and opportunities in the
short-, medium- and long-term time frames upon developing strategies.
⚫ Short-term (3 years): Detailed financial projections are developed to manage
performance and expectations.
⚫ Mid-term (3 to 10 years): Assumes production and earnings from existing assets.
⚫ Long-Term (More than 10 years): decision-making and risk identification are madeaccording to the thematic structure of future portfolio.

Governanceii) Formulation of strategies for each of the short-, medium- and long-term categories

Risk
Management
Metrics andTargets
Other

Source: Royal Dutch Shell "Annual Report and Accounts 2019" P.96

15

Strategy

Governance

INPEX Corporation
Risks and opportunities are assessed for the short-term (up to 1 year), medium-term (1 to
5 years), and long-term (longer than 5 years), and the status of action plan is describedaccordingly.

Strategy
RiskManagement
Metrics andTargets
Other
Source: INPEX Corporation "Sustainability Report 2019" P.47

16

Strategy

A list of climate-related transition and physical risks is provided, and the horizon of each risk
is presented in three stages: short-, medium- and long-term. The impact of each risk on thebusiness and the potential opportunities are listed.

Governance

Dow Chemical

Strategy
RiskManagement
Metrics andTargets

Source: Dow Chemical "2018 Sustainability Report" P.46

Other

17

Strategy

GovernanceOji Holdings Corporation
The company analyzes climate-related risks and opportunities in the short-term (1 to 3
years), medium-term (3 to 6 years), and long-term (7 years or longer) and provides qualitative
explanations of current and future financial and business impacts, risk management methods,
and adaptation measures.

Strategy
RiskManagement
Metrics andTargets
Other
Source: Oji Holdings Corporation "Climate Change: Risk, Opportunities, and Impact on Businesses" P.1-2

18

Strategy

Timelines are divided into certain periods and strategies are formulatedStandard Chartered
For the decarbonization of the portfolio, milestones (2021, 2025, 2027 and 2030) has been
set to achieve the long-term goal, which is concretely indicated.

Governanceiii)

Strategy
RiskManagement
Metrics andTargets
Other

Source: Standard Chartered "Climate Change/Taskforce on Climate-related Financial Disclosures (TCFD) report
December 2019" P.20

19

Strategy

Governance

Allianz GroupThe period up to 2040 is divided into segments of five years, and the risk is qualitatively
assessed and disclosed according to investment portfolio in four categories i.e. “low”,“medium”, “high”, and “very high”.

Strategy
RiskManagement
Metrics andTargets
Source: Allianz Group ” Sustainability Report 2019” P.70
Graphic Reprinted with Permission ©2020 Allianz SE

Other
20

Strategyiv)

Identifying materiality and disclosing climate-related risks and opportunities

Governance

II. Presentation of climate-related risks and opportunities
Examples of specific disclosure of the company's climate-related risks and opportunities
include the following:

Itochu Corporation

Strategy

The company identifies seven areas as material sustainability issues that incorporate ESG
perspectives (address climate change, reinvent business through technological innovation,
respect human rights, contribute to healthier and more enriched lifestyles, ensure stableprocurement and supply, cultivate a motivating workplace environment, and maintain rigorous
governance structures), and discloses risks and opportunities in each area.

Risk
Management
Metrics andTargets
Other

Source: Itochu Corporation “ESG Report 2019” P.12

21

Strategy

Governance
Strategy
RiskManagement
Metrics andTargets
Other
Source: Itochu Corporation “ESG Report 2019” P.15

22

Strategy

NEC

Strategy

The company has set a goal of increasing the social value created through its businessactivities while reducing the impact of its business activities on climate change. The goal is toincrease the CO2 emission reductions achieved through its products and services by five times
the amount of CO2 emissions from its supply chain by 2020.

Governancev) Examples of disclosures of corporate opportunities through climate change

RiskManagement
Metrics andTargets

Source: NEC Corporation "Integrated Report 2019" P.24

Other

23

Strategy

GovernanceAs examples of actual solutions, forest fire monitoring and rapid response systems that
contribute to reducing CO2 emissions, supply and demand optimization platforms that help
reduce food loss and disposal, and storage battery systems are introduced.

Strategy
RiskManagement
Metrics andTargets
Source: NEC Corporation "Sustainability Report 2019" P.36

Other
24

Strategy

The company’s annual report indicates the direction of the solutions that the company
should provide for environmental issues including climate change, and specifically describes
the products and solutions that can contribute to reducing CO2 emissions.

Governance

Daikin Industries Ltd.

Strategy
RiskManagement
Metrics andTargets

Source: Daikin Industries, Ltd. "Sustainability Report 2019" P.14

Other

25

Strategy

GovernanceMarui GroupThe risks and opportunities of the 1.5°C scenario is presented, along with a description of
the quantitative financial impact and underlying factors, and strategies for capturing suchopportunities.

Strategy
RiskManagement
Metrics andTargets
Other
Source: Marui Group "Co-Creation Management Report 2019" P.53

26

StrategyWith regard to the opportunities that climate change brings to its business, the report
describes the development and provision of insurance for clean energy companies that take
into account the changing needs of customers and the possibility of shifting to low-emission
power generation, and the provision of weather insurance that takes into account the impact
of weather disasters on grain yields in rural areas.

Governance

Tokio Marine Holdings

Strategy
RiskManagement
Other

Source: Tokio Marine Holdings, Inc. "Sustainability Report 2019" P.40-41

Metrics andTargets27

Strategy

GovernanceIII. Presentation of R & D activities
Examples of R & D activities linked to corporate strategies include the following:(→ See TCFD Guidance P.36)
Sumitomo Chemical Co. Ltd

Strategy

The total amount of R & D expenditure, capital expenditure, investments and loans in thepast 3 fiscal years, and the allocation by research items are disclosed.

Risk
Management
Metrics andTargets
Other
Source: Sumitomo Chemical Co. Ltd. "Investor's Handbook 2019" P.9

Regarding cathode materials, which are the key components of lithium-ion batteries, thecompany explains the future market trends in relation to its own development schedule, andindicates the timing of the development and introduction of next-generation products to themarket in response to expected future demand.

28

Strategy

Governance
Strategy
RiskManagement
Metrics andTargets
Other

Source: Sumitomo Chemical Co. Ltd. "Investor's Handbook 2019" P.36

29

Strategy

GovernanceToyota Motor Corporation
The company has set a "New Vehicle Zero CO2 Challenge " to reduce CO2 emissions per
vehicle by 90% from 2010 levels by 2050.

Strategy
RiskManagement
Metrics andTargets
Other
Source: Toyota Motor Corporation "Environmental Report 2019" P.19

As a milestone to achieve this goal, the company has set a target of at least 5.5 million
electrified vehicles being sold globally by 2030, including at least 1 million zero-emission
vehicles. In order to achieve the 2030 target, the number of models of electric vehicles (EV),fuel cell vehicles (FCV), and plug-in hybrid vehicles (PHV) will be expanded, while theperformance of hybrid vehicles (HV) will be improved and the product line-up will be expanded.

30

Strategy

Governance
Strategy
RiskManagement
Metrics andTargets
Other

Source: Toyota Motor Corporation "Environmental Report 2019" P.19

31

Strategy

Governance

IV. How to present scenario analysis
Examples of the content of scenario analysis and how to present the results include thefollowing:(See TCFD Guidance P.44)

vi)

Quantitative disclosure of scenario analysis results

Strategy

Kirin Group
Using Group Scenario 1 (2°C scenario, SSP1, sustainable development) and Group Scenario
3 (4°C scenario, SSP3, unwanted world) set in 2018, the impacts of climate change in 2050 and
2100 are analyzed for each major country from which products are sourced.

RiskManagement
Metrics andTargets
Other
Source: Kirin Group "Environmental Report 2019" P.14

32

Strategy

GovernanceIn addition to the impacts on yields of major agricultural products, the report includes theresults of assessments of physical risks, e.g. water risks such as floods and water stress, inmajor agricultural production areas and domestic manufacturing and distribution routes, andthe impact of carbon pricing on the company's carbon emission costs.

Strategy
RiskManagement
Metrics andTargets
Other

Source: Kirin Group "Environmental Report 2019" P.15

33

Strategy

Governance

Sumitomo Mitsui Financial Group Inc.
A flowchart is established to calculate the physical risks and transition risks, which arequantitatively evaluated.

Strategy
RiskManagement
Metrics andTargets
Other

Source: Sumitomo Mitsui Financial Group Inc. "Sustainability Report 2019" P.56

Source: Sumitomo Mitsui Financial Group Inc. "Sustainability Report 2019" P.57

34

Strategy

BP develops its own scenarios with varying assumptions about policies, technologies, andconsumer behavior and analyzes in comparison with IEA and IPCC scenarios.

GovernanceBP

Strategy
RiskManagement

Primary energy demand by sector, region, and fuel in 2040 is shown quantitatively.

Metrics andTargets

Source: BP "Sustainability Report 2019" P.9

Other

Source: BP "2019 BP Energy Outlook" P.15

35

Strategy

GovernanceRoyal Dutch Shell

Strategy

The company conducts scenario analysis using three original scenarios: Sky (below 2°C),
Oceans, and Mountains.
⚫ Mountains: A scenario in which governments promote gradual political andeconomic reforms.
⚫ Oceans: A scenario in which the market and the general public becomes more
influential, and changes become more volatile due to factors such as deregulation.
⚫ Sky: A scenario to achieve the goal of the Paris Agreement to reach net-zeroemissions by 2070.

Risk
Management
Metrics andTargets
Source: Royal Dutch Shell "SHELL ENERGY TRANSITION REPORT" P.19

The scenarios are regularly reviewed by external institutions such as the IEA, MIT and EIA.

Other
Source: Royal Dutch Shell "SHELL ENERGY TRANSITION REPORT" P.19

36

Strategy

Governance

The impact on demand of each energy product under the SKY scenario prepared by thecompany is calculated according to product, region, and year, and is quantitatively listed.

Strategy
RiskManagement
Metrics andTargets

Source: Royal Dutch Shell "SHELL ENERGY TRANSITION REPORT" P.30

Other

37

Strategy

Governance

Dow Chemical

Strategy

Analysis is performed using both existing and original scenarios. Based on these scenario
analyses, investment plans are developed to minimize costs and capture opportunities overthe next 10 years. In addition, the energy mix and rate of increase in energy demand in 2040
for each scenario are quantitatively described.
⚫ Hot Air Scenario: IEA ETP 2015 6D Scenario⚫ Pollution Mitigation Scenario: Dow's Own Scenario⚫ Carbon Cap Scenario: IEA ETP 2015 2D Scenario⚫ Carbon Tax Scenario: Scenario based on the joint program with MIT

Risk
Management
Metrics andTargets
Source: Dow Chemical "2018 Sustainability Report" P.44

Other
38

Strategy

Note: The TCFD recommends the disclosure of strategy by individual companies. Therefore, it is recommended
that each company discloses its strategy by building on industry-wide efforts as shown here.

Strategy

The report draws upon the rate of GHG emissions reduction required for the industrial
sector (30% emission reduction by 2060) under the 2°C scenario of the IEA Energy Technology
Perspectives (ETP). The federation concluded that the iron and steel sector can achieve roughly
the same level of GHG emissions reduction as that required by ETP through theimplementation of BAT and innovative technologies, in addition to the effects of zero
emissions achieved in the electric utilities sector.

GovernanceJapan Iron and Steel Federation

Risk
Management
Metrics andTargets
Other

Source: Japan Iron and Steel Federation "JISF Long-term vision for climate change mitigation: A challenge
towards Zero-carbon STEEL" P.13

39

Strategy

Governancevii)

Qualitative disclosure of scenario analysis results

Mitsubishi Corporation

Strategy

The company presents its understanding of the business environment and related policies,
and initiatives based on its global demand forecast – the trajectory forecast for demandchange, expressed in seven levels, from the present until 2040 - 2050 – under different climate
scenarios including those in the IEA’s World Energy Outlook (WEO) and Energy Technology
Perspectives (ETP).

Risk
Management
Metrics andTargets
Other
Source: Mitsubishi Corporation "ESG DATABOOK 2019" P.34

40

Strategy

GovernanceFor example, as a result of the scenario analysis of the power generation business, theexpansion of opportunities for renewable energy and clean gas-fired power generation is
expected under the NPS/RTS scenario, and the decrease in business opportunities due to the
reduction of fossil fuel power generation is expected under the 2°C scenario. In addition, a
policy for strengthening business operations with lower environmental footprint and power
trading functions is presented.

Strategy
RiskManagement
Metrics andTargets

41

Other

Source: Mitsubishi Corporation "ESG DATA BOOK 2019" P.35

Strategy

Governance

New World Developments Company Limited
It is stated that the scenario analysis that are planned but yet to be implemented arepresented in addition to the scenarios considered.

Strategy
RiskManagement
Metrics andTargets

Source: New World Developments Company Limited "Sustainability Report 2019" P.33

Other
42

Strategy

Based on the responses to the societal changes and changes expected under the 2°C and
4°C scenarios, most relevant factors for the company are identified and risks and opportunities
are qualitatively assessed.

Governance

JFE Holdings

Strategy
RiskManagement
Metrics andTargets
Other

Source: JFE Group "JFE Group Report 2019" P.61

43

Strategy

Governance

INPEX Corporation
Based on the IEA WEO New Policies Scenario, two scenarios have been developed thatvaries the degree and timing of technological progress, referring also to the IEA WEO 2°C
scenario. It examines business strategies and explains strategies for a low-carbon society.

Strategy
RiskManagement
Metrics andTargets
Other
Source: INPEX Corporation "Sustainability Report 2019" P.49

44

Strategy

Governance

Based on these scenarios, business strategies are discussed and strategies for transitioning
to a low-carbon society are described.

Strategy
RiskManagement
Metrics andTargets

Source: INPEX Corporation "Sustainability Report 2019" P.50

Other

45

Strategy

GovernanceToyota Motor Corporation

Strategy

Based on the IEA 2°C and Beyond 2°C scenarios, the company has established a vision of the
future society and has studied the impact on its strategy and finances. Though it was identified
that the proportion of ZEV (Vehicles that do not emit GHGs while driving) in the 2030 milestone
does not reach the Beyond 2°C scenario despite exceeding the IEA 2°C scenario, the company
maintains that it can respond flexibly by changing the lineup of power train or elevating thesales target for electric vehicles.

RiskManagement
Metrics andTargets
Other
Source: Toyota Motor Corporation "Sustainability Data Book 2019" P.54

46

Strategy

The analysis results for the three climate-related scenarios (BAU scenario, main scenario,
and 2°C or lower scenario electrification progress) are presented, and the medium-term (∼2030 years) and long-term (∼2050 years) risks and opportunities for the main scenario aredescribed.

GovernanceTokyo Electric Power Company Holdings

Strategy
RiskManagement
Metrics andTargets
Other

Source: Tokyo Electric Power Company Holdings "TEPCO Integrated Report 2019" P.28‐29

47Strategy

Governance

BHP Billiton

Strategy

Results of scenario analysis using four original scenarios (shown below) are disclosed.
⚫ A New Gear: Projects substantial changes, especially in developed countries⚫ Closed Doors: Countries lean toward protectionism, international cooperation
declines, leading to low growth⚫ Global Accord: Countries collaborate and develop technologies for economic
growth and the transition to a 2°C world⚫ Two Giants: United States and China become hubs, and measures will be taken
mainly in the two regions.

RiskManagement
Metrics andTargets
Other
Source: BHP Billiton "Climate Change: Portfolio Analysis (2015)" P.948

Strategy

Governance

The impact on the company's products in a 2°C world is described qualitatively in terms ofinvestment and product demand.
(For example, while the cost competitiveness of thermal coal can be maintained under the
2°C scenario, the future asset value needs to be carefully considered taking into account theeffects of regulatory and societal pressures.)

Strategy
RiskManagement
Metrics andTargets
Other

Source: BHP Billiton "Climate Change: Portfolio Analysis Views after Paris (2016)" P.11

49

Strategy

Governance
Strategy
RiskManagement
Metrics andTargets
Other
Source: BHP Billiton "Climate Change: Portfolio Analysis (2015)" P.12

50

Strategy

Governance

The relative effect of each commodity on demand under the 2°C scenario compared to thecentral case (3°C scenario) is shown, and it is analyzed that demand for coal, etc. will decrease
while demand for uranium and copper will increase.

Strategy
RiskManagement
Metrics andTargets

Source: BHP Billiton "Climate Change: Portfolio Analysis (2015)" P.13

Other

51

Strategy

Governance

Unilever

Strategy

The scenario analysis is conducted under two scenarios (2°C and 4°C), and the possible
impacts on the company under each scenario are described qualitatively.
⚫ In the case of the 2°C scenario, the increase in raw material costs due to theintroduction of carbon prices and the increase in the cost of agricultural production
processes due to the demand for zero net deforestation are considered to be major
impacts.
⚫ In the case of the 4°C scenario, the main effects are considered to be an increase in
raw material procurement costs in some regions due to an increase in water stress,
an increase in the impact on manufacturing and distribution networks due to an

RiskManagement

increase in extreme weather, and a decrease in sales due to a decrease in GDP
resulting from temperature increase and an increase in extreme weather.

Metrics andTargets
Other
Source: Unilever "UNILEVER ANNUAL REPORT AND ACCOUNTS 2019" P.40

52

Strategy

GovernanceFurthermore, the company has developed approaches to evaluate the impact of climatechange on its key resource. A pilot was conducted on soybean oil, and it was concluded thatthe financial risk from procurement spending is low, the need for considering a wider range ofindirect risks are mentioned.

Strategy
RiskManagement
Metrics andTargets
Other

Source: Unilever "UNILEVER ANNUAL REPORT AND ACCOUNTS 2019" P.41

53

Strategy

GovernanceSekisui Chemical Co. Ltd.
Results of scenario analysis are presented by adding two items to the temperature scenario(2°C and 4°C): concentration vs. decentralization of population and power generation, andrisks, opportunities and countermeasures in four quadrants (decarbonized smart society,continuous circulation society, local production and consumption society, and massconsumption society) are disclosed.

Strategy
RiskManagement
Metrics andTargets
Other
Source: Sekisui Chemical Co., Ltd. " SEKISUI CHEMICAL Group's Response to Climate Change: Information
Disclosures based upon the TCFD Statement of Support" P.9 - 1054Strategy

Governance
Strategy
RiskManagement
Metrics andTargets
Other

Source: Sekisui Chemical Co., Ltd. "SEKISUI CHEMICAL Group's Response to Climate Change: Information
Disclosures based upon the TCFD Statement of Support" P.11

55

Strategy

GovernanceTokyu Fudosan Holdings
The company identifies risks and opportunities taking into account environmental changes
under the scenarios of 4°C (impact of climate change is large) and 2°C (impact of regulation islarge) for urban areas and resorts where it conducts business, and discloses the results of astudy on the impact on business with a time horizon of 2050.

Strategy
RiskManagement
Metrics andTargets
Other
Source: Tokyu Fudosan Holdings website (https://tokyu-fudosan-hd-csr.disclosure.site/en/themes/25)

56

Strategy

Governance

V. Disclosure of resilience
Examples of how to express our resilience to climate change include the following:(See TCFD Guidance P.53)
Sekisui House Group

Strategy

The company published its report ("TCFD Report 2019") which is aligned to the information
disclosure delineated in the TCFD recommendations. As part of this, a scenario analysis was
conducted for all group businesses, taking into account the impact of a temperature increase
under the 1.5°C scenario and the 4°C scenario. It also examines the potential financial impactof the identified risks and opportunities and provides an analysis that the risks are not likely
to have a disruptive impact.

RiskManagement
Metrics andTargets
Other

Source: Sekisui House Group "TCFD Report 2019" P.3

57

Strategy

Governance
Strategy
RiskManagement
Metrics andTargets
Other
Source: Sekisui House Group "TCFD Report 2019" P.4 -558

Strategy

It is stated that, for all of the cases examined, i.e. Central case (3°C scenario), Global Accord
scenario (2°C scenario), and Shock event scenario (scenario for decarbonization beyond the
2°C scenario), the company is able to generate return in 2030.

Governance

BHP Billiton

Strategy
RiskManagement
Metrics andTargets
Other

Source: BHP Billiton "Climate Change: Portfolio Analysis (2015)" P.14

59

Strategy

Governance

UnileverAs a result of the scenario analysis, although there is a financial impact in 2030, it is statedthat the impacts on sales from cost increase of raw materials and packaging in the supply chain
are relatively small.

Strategy
RiskManagement

Source: Unilever "UNILEVER ANNUAL REPORT AND ACCOUNTS 2019" P.40 - 41

Metrics andTargets
Other
60

Strategy

The results of stress testing of the business portfolio are presented for the three scenarios
consistent with existing scenarios (IPCC, IEA、RCP, etc.). It concluded that both scenarios had
resilience and growth potential because of the shift of its business portfolio to clean energy
and the diversification of exposure.

Governance

AES Corporation

Strategy
RiskManagement
Metrics andTargets

Source: AES Corporation ”AES Climate Scenario Report” P. 6

Other

61

Strategy

Governance
Strategy
RiskManagement
Metrics andTargets
Source: AES Corporation ”AES Climate Scenario Report” P.7

Other
62

Strategy

Governance
Strategy
RiskManagement
Metrics andTargets
Other

Source: AES Corporation ”AES Climate Scenario Report” P.8

AVIVA
The company assesses climate-related litigation risk through its underwriting business andconcludes that the risk is low.

Source: AVIVA "Aviva's Climate-Related Financial Disclosure 2019" P.19

63

Strategy

Governance

VI. Scenario analysis of portfolio
Nomura Asset Management Co. Ltd.

Strategy

A comparative analysis of the Scope1 emissions of the company's domestic and foreign
equity portfolios against the IEA’s 2°C, 4°C, and 6°C scenarios has been conducted, and it has
been shown that the total carbon emissions allowed under the 2°C scenario may be reachedearlier in the global equities portfolio than in the Japanese equities portfolio.

RiskManagement
Metrics andTargets
Other
Source: Nomura Asset Management Co., Ltd., "Responsible Investment Report 2019" P.17

64

Strategy

GPIF projects GHG emissions of the companies included in its portfolio and analyzes thetemperature scenario to which the portfolio is aligned.

Governance

Government Pension Investment Fund (GPIF)

Strategy
RiskManagement
Metrics andTargets

Source: Government Pension Investment Fund, "ESG Report 2018" P.50

Other

65

Risk Management

Governance(3) Risk Management
Examples of methods for managing climate change-related risks are shown below.
(See TCFD Guidance P.54)
Examples that illustrate specific processes for climate change risk management

Strategy

Mitsubishi Corporation
Processes and management systems for assessing and identifying climate-related risks aredescribed using flowcharts. The company also states that the results of the review are used in
the formulation of strategies and the screening of loan and investment proposals.

RiskManagement
Metrics andTargets
Other
Source: Mitsubishi Corporation "ESG DATA BOOK 2019" P. 43

66

Risk Management

The company discloses a materiality matrix, mapping the priority to stakeholders and thepriority to the company.

Governance

Kao Corporation

Strategy
RiskManagement
Metrics andTargets
Other

Source: Kao Corporation "Kao Sustainability Data Book 2020" P.13

67

Risk Management

Governance

Mitsubishi Chemical Holdings
Through materiality assessment, the company identifies its materiality related to theenvironment, society, and governance, and discloses risks and opportunities. The importanceof climate change is considered as extremely high from the perspective of stakeholders andthe company itself.

Strategy
RiskManagement
Metrics andTargets
Other
Source: Mitsubishi Chemical Holdings Integrated Report "KAITEKI REPORT 2019" P.14

68

Risk Management

Governance
Strategy
RiskManagement
Metrics andTargets
Other

Source: Mitsubishi Chemical Holdings Integrated Report "KAITEKI REPORT 2019"P.15

69

Risk Management

Governance

Kirin GroupThe definition of risk and risk management, the PDCA cycle within the group and eachcompany, and the process for designation of serious risks are disclosed using diagrams.

Strategy
RiskManagement
Metrics andTargets
Source: Kirin Group "Environmental Report 2019" P.68

Other
70

Risk Management

Risk management is disclosed in conjunction with the manner in which it is integrated into
a comprehensive risk management system that takes into account risks other than climatechange and with the corporate-wide ESG policy.

Governance

Mizuho Financial Group

Strategy
RiskManagement
Metrics andTargets
Other

Source: Mizuho Financial Group "TCFD Report 2020" P. 24

71

Risk Management

Governance

POSCO
POSCO describes the process of managing climate change-related risks (Carbon Risk). In
addition to conducting regular monitoring of activities to reduce GHG emissions, the report
explains management processes such as reporting to the Group's Strategy Council once a year
and points out that the system is linked with enterprise-wide risk management.

Strategy
RiskManagement
Metrics andTargets
Other
Source: POSCO “POSCO Corporate Citizenship Report 2018” P.42

72

Risk Management

The company provides an overview of the team to evaluate climate change risk, the PDCA
cycle for risk management, and reporting to the board of directors. It also explains that thisprocess follows relevant international standards (ISO 31000).

Governance

INPEX Corporation

Strategy
RiskManagement
Metrics andTargets
Other

Source: INPEX Corporation "Sustainability Report 2019" P.46

73

Risk Management

Governance

UnileverThe company describes monitoring of raw material availability, pricing, and related
governmental developments, and taking necessary action on climate change risks.

Strategy
RiskManagement

Source: Unilever "UNILEVER ANNUAL REPORT AND ACCOUNTS 2019" P. 36

Metrics andTargets
Other
74

Metrics and Targets

Examples of the content of scenario analysis and how to present the results include thefollowing:(→ Refer to TCFD Guidance P.58)

Governance(4) Metrics and Targets

Sumitomo Chemical Co., Ltd.

Risk
Management

It also discloses the amount of reduction contribution of SSS-certified products andtechnologies throughout their product life cycles (58 million t CO2).

Strategy

The Corporate Business Plan defines the sales and profits of the Group's products (SSS) that
help mitigate climate change, reduce environmental impact, and make efficient use ofresources, and discloses metrics and targets for opportunities.

Metrics andTargets
Other

Source: Sumitomo Chemical Co., Ltd. "Sustainability Data Book 2019" P.16

75

Metrics and Targets

Governance

Mitsubishi Chemical Holdings
Metrics are linked to identified themes based on their materiality, and their targets andactual results are listed.

Strategy
RiskManagement

Source: Mitsubishi Chemical Holdings, Inc. "KAITEKI REPORT 2019"P.42

Metrics andTargets
Other
76

Metrics and Targets

Sustainable finance targets for FY 2019 to FY 2030 (cumulative total of JPY 20 trillion,
including JPY 8 trillion for environment) and performance for FY 2019 are disclosed.

Governance

Mitsubishi UFJ Financial Group

Strategy
RiskManagement
Metrics andTargets

Source: Mitsubishi UFJ Financial Group website "Initiatives to Counter Global Warming and Climate Change –Based on TCFD Recommendations –" (https://www.mufg.jp/english/csr/environment/tcfd/index.html)

Other

77

Metrics and Targets

Governance

Asahi Group Holdings
The company sets mid- to long-term targets for climate change "Asahi Carbon Zero" andclearly states that the company will aim for zero GHG emissions by 2050. In order to achieve
the target, efforts such as the use of green power in the manufacturing process are described,
and GHG emission reductions through these efforts are disclosed.

Strategy
RiskManagement
Metrics andTargets
Other
Source: Asahi Group Holdings website " Reduction of Greenhouse Gases "(https://www.asahigroup-holdings.com/en/csr/environment/greenhousegases.html)

78

Metrics and Targets

The strategy and associated metrics, targets, and results are listed.

Governance

ENGIE

Strategy
RiskManagement
Metrics andTargets

Source: ENGIE "Integrated Report 2019" P.14

Other

79

Metrics and Targets

GovernanceGlencore
Metrics of non-financial information and its links to strategic priorities are presented in theannual report.

Strategy
RiskManagement
Metrics andTargets
Other
Source: Glencore "Annual Report 2019" P.25

80

Metrics and Targets

Based on its long-term strategy (The Unilever Sustainability Living Plan, 2030), key actions
and corresponding metrics and targets are described. Annual performance and achievements
are also shown.

Governance

Unilever

Strategy
RiskManagement
Metrics andTargets
Other

Source: Unilever "UNILEVER ANNUAL REPORT AND ACCOUNTS 2019" P. 22

81

Metrics and Targets

GovernanceNomura Asset Management
For its monitoring of GHG emissions in individual funds, the company shows the calculation
method and its relationship with climate change score, and also describes its response in casethe GHG emissions are higher than the benchmarks.

Strategy
RiskManagement
Metrics andTargets
Other
Source: Nomura Asset Management Co., Ltd. "Responsible Investment Report 2019" P.20

82

Metrics and Targets

CO2 reduction is viewed from the three perspectives of contribution to the environment,
society, and economy, and targets and metrics for monitoring are disclosed.
Specifically, the company uses metrics that incorporates not only Scope 1 + 2 but also Scope
3 as well as avoided CO2 emissions, and it is also related to the business opportunity.

Governance

Idemitsu Kosan Co., Ltd.

Strategy
RiskManagement
Metrics andTargets
Other

Source: Idemitsu Kosan Co., Ltd. "Idemitsu Sustainability Report 2019" P.19

83

Metrics and Targets

Governance

AXA
The Climate Report presents several risk assessment models to quantify climate-related
issues as company's investment objectives, and uses Carbon Delta's model to estimate anddisclose the transition costs, physical risks costs, green revenues, and company cost of climate
costs with respect to the company's fixed income portfolio, equity portfolio, and total assets.

Strategy
RiskManagement
Metrics andTargets

Source: AXA "2019 Climate Report" P.15

Other
Source: AXA "2019 Climate Report" P.19

84

Other

I. Response to TCFD Recommendations
Examples of companies that disclose their responses to climate change in line with TCFD
recommendations include the following:(See TCFD Guidance P.26)

The company shows all 11 items recommended to be disclosed in the TCFD

Strategy

Nippon Steel Corporation

Governance(5) Otherrecommendations where they are disclosed in its Sustainability Report.

Risk
Management
Metrics andTargets
Other

Source: Nippon Steel Corporation "Sustainability Report 2019" P.25

85

OtherGovernance

Mitsubishi Corporation
The executive summary of the response to the TCFD recommendations is described in the
integrated report, and the key points of the current state for each theme are shown.
In the ESG Data Book 2019, the status of each of the four themes (Governance, Strategy,
Risk Management, Metrics and Targets) of the TCFD recommendations is explained.

Strategy
RiskManagement
Metrics andTargets
Other
Source: Mitsubishi Corporation "Integrated Report 2019" P.44

86

Governance
Strategy

RiskManagement

Metrics andTargets87

Other

Source: Mitsubishi Corporation "ESG DATA BOOK 2019"PP. 30 - 31

Other

OtherGovernance

Kirin GroupIn its Environmental Report, a table which indicates the recommended disclosure items of
the TCFD recommendations, and the corresponding pages is shown.

Strategy
RiskManagement

Source: Kirin Group "Environmental Report 2019" P.98

Metrics andTargets
Other
88

OtherLinks to the corresponding webpages for each subtopic of the TCFD recommendations areprovided on the website.

Governance

Daikin Industries Ltd.

Strategy
RiskManagement
Metrics andTargets
Other

Source: Daikin Industries website "CSR and the Environment" (https://www.daikin.com/csr/nav/guideline/)

89

OtherGovernanceAjinomoto GroupIn the Sustainability Data Book, the responses to the four items of the TCFD
recommendations are listed.

Strategy
RiskManagement
Metrics andTargets
Other
Source: Ajinomoto Group "Sustainability Data Book 2019" P.64

90

OtherIn its annual reports, etc., the status of responses to the company’s responses to TCFD
recommendations is disclosed in a table. The risk and risk management items are describedfrom the perspectives of both life insurance companies and institutional investors.

GovernanceNippon Life Insurance

Strategy
RiskManagement
Metrics andTargets91

Other

Source: Nippon Life Insurance "Nissay Annual Report 2019" P.67

OtherGovernance

Daiwa House GroupIn its sustainability report, the status of response to each of the four items (Governance,
Strategy, Risk management and Metrics and targets) of the TCFD recommendations is
explained.

Strategy
RiskManagement
Metrics andTargets
Other
Source: Daiwa House Group "Sustainability Report" P.163

92

OtherGovernance
Strategy
RiskManagement
Metrics andTargets
Other

Source: Daiwa House Group "Sustainability Report" P.164

93

OtherGovernance

II. Disclosure methods for companies with diverse business models
Examples of disclosure methods for companies with multiple business models with different
risks and opportunities for climate change are shown below.
(See TCFD Guidance P.61)
Hitachi Group

Strategy

The group identifies businesses with a relatively high likelihood of being affected by climatechange from its own business portfolio and provides an overview of business risks andopportunities based on climate-related scenarios and their responses in its integrated report,
while describing details in their sustainability report.

Risk
Management
Metrics andTargets

Source: Hitachi Group "Hitachi Integrated Report 2019" P.77

Other

In their disclosure in the sustainability report, factors other than environment areconsidered in addition to temperature scenarios (2°C, 4°C) for each business, and the impact
to each business unit is disclosed, including financial information.

94

Governance
Strategy

RiskManagement

Metrics andTargets95

Other

Source: Hitachi Group "Hitachi Sustainability Report 2019" P.53

Other

OtherGovernanceGlencore
The relative contributions to sales and the results of scenario analysis for each of its
businesses are shown in the table.

Strategy
RiskManagement
Metrics andTargets
Other
Source: Glencore "2017 Climate Change Considerations for Our Business" P.20

96