Guidance on Climate-Related
Financial Disclosures3.0(TCFD Guidance3.0)

January 2023

Case Examples

Table of Contents
1. Index ......................................................................................... 1
2. Examples of disclosure based on TCFD recommendations........... 3(1) Governance ......................................................................................3① Including climate change on the board's agenda ......................................................................3② Statement that climate change is on the agenda of the dedicated committees ......................7(2) Strategy .......................................................................................... 10① Strategy a (description of short-, medium- and long-term climate-related risks andopportunities) .........................................................................................................................10② Strategy b) (describing the impact of risks and opportunities) ...............................................17③ Strategy b) (Transition plans) ..................................................................................................30④ Strategy b) (Innovation) ..........................................................................................................36⑤ Strategy c) (describing the resilience of climate strategies by considering climate-related
scenarios) ................................................................................................................................37(3) Risk Management........................................................................... 47(4) Metrics and Targets ........................................................................ 63① Greenhouse gas emissions ......................................................................................................63② Metrics and targets of financial institutions ...........................................................................72③ Company-specific metrics and targets ....................................................................................76④ Remuneration .........................................................................................................................79(5) Other.............................................................................................. 81① Disclosure on alignment with TCFD Recommendations..........................................................81② Disclosure methods for companies with diverse business models .........................................87③ Disclosure of objectives for responding to climate change .....................................................90④ Diverse disclosure media ........................................................................................................92

Index1. Index
RegionAsia
Oceania

Country

Company Name

Japan
Japan

AGC
Asahi Group Holdings

Japan

Denso

Japan

East Japan Railway Company

Japan
Japan

ENEOS Holdings
Fuji Oil GroupJapan

Fujitsu GeneralJapan

Hitachi

Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan

INPEX
ITOCHU Corporation
J Front Retailing
J-Oil Mills
J-POWER
Japan Airlines
The Japan Steel Works
JFE Holdings

Japan

Kao

Japan

Kawasaki Heavy Industries

Japan
Japan
Japan
Japan
Japan
Japan
Japan

Kirin Holdings
Kyushu Electric PowerMarubeni Corporation
Marui Group
Meiji Holdings
Mitsubishi Chemical Group
Mitsubishi Corporation

Japan

Mitsubishi EstateJapan

Mitsubishi UFJ Financial
Group
Mitsui & Co.

Japan

Mitsui Fudosan

Japan
Japan
Japan

Mizuho Financial GroupMS & AD Insurance Group
Nippon Steel Corporation

Japan

1

Business TypePage

Chemicals
Food
Electrical andElectronics
Transportation(railway)
EnergyFoodElectrical &Electronics
Electrical andElectronics
EnergyTrading company
RetailFood
PowerTransportation (air)
Steel
Steel
Chemicals and daily
necessities
Transportationequipment, etc.
Food
Electric Power
Trading company
RetailFood
Chemicals
Trading company
Construction/Real
Estate100
69, 90Finance (Banking)27, 72

Trading company
Construction/Real
EstateFinance (Banking)
Finance (Insurance)
Steel

97

28
40
14
61
85
60, 87
10
58, 76
92
82
11
30
70
5
78
71
21
44
63, 89
95
68
34
33
46

99
7, 51
49, 7932

IndexRegionCountryJapan

NYK Line

Japan

Omron

Japan

Ono Pharmaceutical
ORIX Real Estate Investment
Corporation

Japan
Japan

Panasonic Holdings

Japan

Ricoh

Japan
Japan

Sekisui Chemical
Sumitomo Chemical

Japan

Sumitomo Forestry

EuropeBusiness TypeTransportation(shipping)Electrical &Electronics
Pharmaceuticals
Finance (AM)Electrical andElectronics
Electrical &Electronics
Chemicals
Chemicals
Construction andForestry

Japan
Japan

Sumitomo Mitsui Financial
Group
Tokyo Electric Power Group
Tokio Marine Holdings

Japan

Tokyu Fudosan Holdings

Japan

Toyota Motor Corporation

Australia

BHP Group

Singapore

City Developments

Mexico

CEMEX

Japan

AmericasCompany Name

Finance (Banking)

Page
35
47
23, 10186
38
45
19, 37
9, 36
9, 17
3

Denmark

A.P. Moller - Maersk

FranceFranceUnitedKingdom
Italy
UnitedKingdom
Switzerland
FranceUnitedKingdom

AXA Group
BNP Paribas

Electric Power
31
Finance (Insurance)
91
Construction/Real42, 64, 83
EstateAutomobiles
65
Mineral resources and8, 39, 67
energyConstruction and real81
estateConstruction
55
materials (cement)
Finance (Banking)73
Finance (Banking)24
Transportation
66(shipping)
Finance (Insurance)
29
Finance (Banking)15, 57

British Land

Real estate

12

ENEL Group

Energy25, 79NatWest Group

Finance (Banking)75, 84

Novartis
Schlumberger

Pharmaceuticals
EnergyChemistry,
commodities

653

United States Citigroup
United States Morgan Stanley

Unilever2

80

Governance(1) Governance
Exemplary TCFD disclosures on governance are shown in this chapter. Emphasis is placed on(1) including climate change on the board's agenda and (2) climate change being on the agenda
of dedicated committees. (See TCFD Guidance 3.0, page 15)

Sumitomo Mitsui Financial Group

Risk
Management

Both the supervisory and executive bodies have established committees responsible forsustainability. The company also discloses the composition and attendance of each committee,
as well as the skill matrix of board members.

Strategy① Including climate change on the board's agenda

Governance

2. Examples of disclosure based on TCFD recommendations

Metrics andTargets
Other

Source: Sumitomo Mitsui Financial Group, “TCFD Report 2022”, p.93

Governance

Governance
Strategy
RiskManagement
Metrics andTargets
Other

Source: Sumitomo Mitsui Financial Group, “TCFD Report 2022”, p.11

4

Governance

Strategy

The company discloses that global warming initiatives are identified as its key CSR issues,
discusses them in group-wide environmental committees, and supervises and directs group
CSR meetings chaired by the president of the holding company.
The company has established a system for discussing climate change and other issues
important to its own management at group management meetings and reports them to theboard of directors. It also provides examples of issues discussed and decided upon by theboard.

Governance

JFE Holdings

RiskManagement
Metrics andTargets

Source: JFE Holdings, "JFE GROUP REPORT 2022", p.58

Other

5

Governance

Governance

Novartis
The competencies and roles of the chairperson of the board, the CEO, each committee andthe chief sustainability officer (CSO) in charge of climate change issues are specified.

Strategy
RiskManagement
Metrics andTargets
Other
Source: CDP, "Novartis - Climate Change 2021”, p.3

6

Governance

Mizuho Financial GroupThe roles of both the supervisory and executive bodies with respect to climate change areclearly stated.
The company also discloses the status of discussions in climate change supervision.

Governance② Statement that climate change is on the agenda of the dedicated committees

Strategy
RiskManagement
Metrics andTargets
Other

Source: Mizuho Financial Group, “Mizuho Financial Group TCFD Report 2022”, p.14

7

Governance

Governance

BHP Group
The governance structure for climate change response and the role of each committee are
explained. The remuneration policy linked to the company's emissions metrics and outcomesare also shown.

Strategy
RiskManagement
Metrics andTargets
Other
Source: BHP Group, ”BHP Climate Change report 2020“, p.10

8

GovernanceIn addition to the composition of the Sustainability Committee and reporting to the boardof directors, the company discloses the introduction of an executive compensation systemlinked to the achievement rate of sustainability indicators.

Governance

Sumitomo Forestry

Strategy

The company has established cross-functional committees and councils directly under theboard to discuss sustainability and carbon-neutral strategies.

Metrics andTargets

Sumitomo Chemical

Risk
Management

Source: Sumitomo Forestry, "Sumitomo Forestry Group Sustainability Report 2022”, p.144

Other

Source: Sumitomo Chemical, "Sumitomo Chemical Annual Report 2022", p.41
9Strategy

Governance(2) Strategy
Exemplary TCFD disclosures on strategy are shown in this chapter. In addition to the threerecommended disclosures by TCFD, examples of disclosures on transition plans and innovation
as items to watch in recent years are shown in this chapter. (See TCFD Guidance 3.0, page 17)① Strategy a (description of short-, medium- and long-term climate-related risks andopportunities)

Strategy

INPEX
The time horizons are clearly defined as short-term (up to one year), medium-term (overone year and up to five years) and long-term (over five years), and climate change risks areassessed and disclosed along with measures.

RiskManagement
Metrics andTargets
Other
Source: INPEX, "SUSTAINABILITY REPORT 2022", p.58

10Strategy

The company discloses the timeframes (short-, medium-, and long-term) and impact
assessments of risks and opportunities, as well as responses, including the size of investments.
The time horizons are clearly defined.

Governance

J-POWER (Electric Power Development)

Strategy
RiskManagement
Metrics andTargets
Other

Source: Electric Power Development, "J-POWER Group Integrated
Report 2022," p.44
11Strategy

GovernanceBritish Land
Short-term (< 12 months), medium-term (1 to 5 years), and long-term (5 to 10 years andbeyond 2050) periods are specifically indicated to identify risks and opportunities. In addition,
the financial impact is calculated for these periods and countermeasures are described.

Strategy
RiskManagement
Metrics andTargets
Other
Source: British Land, "Annual Report and Accounts 2022," p.52

12Strategy

Governance
Strategy
RiskManagement
Metrics andTargets
Other

Source: British Land, "Annual Report and Accounts 2022," p.53

13

Strategy

Governance

ENEOS Holdings
Financial impact of climate change risks and opportunities is described not only in terms ofamounts, but also in terms of time horizons and assumptions for calculations.

Strategy
RiskManagement
Metrics andTargets
Other
Source: ENEOS Holdings, "ENEOS REPORT Integrated Report 2022," p.55

14Strategy

Risks and opportunities associated with the energy transition are disclosed according to thebusinesses affected such as asset management and retail banking, including the timeframe,
size of impact, as well as the measures undertaken. The timeframe is defined as short-term(within 2 years), medium term (3 to 10 years) and long-term (more than 10 years).

Governance

BNP Paribas

Strategy
RiskManagement
Metrics andTargets
Other

Source: BNP Paribas, "TCFD Report 2021”, p.15

15Strategy

Governance
Strategy
RiskManagement
Metrics andTargets
Other
Source: BNP Paribas, "TCFD Report 2021”, p.1616Strategy

Sumitomo Forestry
Climate-related risks are identified for each business, strategies are formulated, andinitiatives are undertaken taking into account possible future changes in regulations and rules.

Governance② Strategy b) (describing the impact of risks and opportunities)

Strategy
RiskManagement
Metrics andTargets
Other

Note) The examples listed were conducted in 2018, and the content is underreview in 2022.
Source: Sumitomo Forestry, "Sumitomo Forestry Group Sustainability Report2022”, p.149-150
17Strategy

Governance
Strategy
RiskManagement
Metrics andTargets
Other
Source: Sumitomo Forestry, "Sumitomo Forestry Group Sustainability Report 2022”, p.154

18

Strategy

As a novel metric of the impact of climate change on multiple stakeholders including not
only shareholders but also customers and local communities, the company quantifies theimpact as Stakeholder Comprehensive Income, including the contribution to reduction. By
presenting this metric chronologically, the company quantifies the improvement in recent
years.

GovernanceSekisui Chemical

Strategy
RiskManagement
Metrics andTargets
Other

Source: Sekisui Chemical, “TCFD Report 2022”, p.23-24
19

Strategy

Governance
Strategy
RiskManagement
Metrics andTargets
Other
Source: Sekisui Chemical, “TCFD Report 2022”, p.25-26

20

Strategy

Physical risks due to climate change (such as impacts on yields of major agricultural products
and procurement prices) and transition risks (such as impacts of the introduction of carbon
pricing) are described in detail along with quantitative financial impacts for each scenario.

Governance

Kirin Holdings

Strategy
RiskManagement
Metrics andTargets
Other

Source: Kirin Holdings, “Kirin Group Environmental Report 2022”, p.79
21

Strategy

Governance
Strategy
RiskManagement
Metrics andTargets
Other
Source: Kirin Holdings, “Kirin Group Environmental Report 2022”, p.86

22

Strategy

In addition to specific figures showing the financial and business impact of climate change,potential opportunities characteristic of pharmaceutical companies, such as preventive andtreatment products, are indicated.

GovernanceOno Pharmaceutical

Strategy
RiskManagement
Metrics andTargets
Other

Source: Ono Pharmaceutical website, “Information Disclosure Based on the TCFD Recommendation”(https://sustainability.ono-pharma.com/en/themes/121)23

Strategy

GovernanceMorgan Stanley
The company explicitly discloses key activities for each of the four pillars (supporting thetransition to a low-carbon economy, management climate risks, providing climate-related
disclosures, and enhancement of resilience) established as its climate strategy.

Strategy
RiskManagement
Metrics andTargets
Other
Source: Morgan Stanley, "2021 Climate Report”, p.15

24

Strategy

In analyzing physical and transition risks, financial impact is disclosed along with its businessareas. The financial impact disclosure is qualitative (3 levels), but clearly indicates thethreshold (EBITDA <100 million euros, 100 million - 300 million euros,> 300 million euros).

Governance

ENEL Group

Strategy
RiskManagement
Metrics andTargets
Other

Source: ENEL, "Sustainability Report 2021”, p.95
25

Strategy

Governance
Strategy
RiskManagement
Metrics andTargets
Other
Source: ENEL, "Sustainability Report 2021”, p.104

26

Strategy

The impact of transition and physical risks on the credit portfolio as a result of scenario
analysis is quantitatively disclosed, including the period covered.

Governance

Mitsubishi UFJ Financial Group

Strategy
RiskManagement

Source: Mitsubishi UFJ Financial Group, “MUFG Report 2022”, p.61

Metrics andTargets
Other

27

Strategy

Governance

Denso
For climate-related risks and opportunities, potential financial impact, timeframe and levelof impact, as well as responses are disclosed in a compact format. Potential financial impact ispresented in quantitative terms in addition to a qualitative description.

Strategy
RiskManagement
Metrics andTargets
Other
Source: Denso, “Integrated Repot 2021”, p.65

28

Strategy

The company describes in detail the results of risk analysis and stress testing for eachbusiness unit and operation of the company. For the real estate portfolio shown below, theestimated amount of damage by region is quantitatively disclosed for natural disasters such as
floods.

Governance

AXA Group

Strategy
RiskManagement
Metrics andTargets
Other

Source: AXA Group, “2022 Climate and Biodiversity Report”, p.68
29

Strategy

Governance③ Strategy b) (Transition plans)
Japan Airlines
Historical emissions, targets, and measures are covered, enabling understanding thepositioning of emissions reduction in the face of increasing demand. The company also sets aninterim target for 2030 in conjunction with 2050 targets.

Strategy
RiskManagement
Metrics andTargets
Other
Source: Japan Airlines website, "Addressing Climate Change"(https://www.jal.com/en/sustainability/environment/climate-action/)30

Strategy

In addition to achieving carbon neutrality by 2050, the company has disclosed specificmeasures for achieving halving of carbon emissions by 2030 as an interim goal, along with theamount of investment and the effect on revenue improvement. This enables theunderstanding of the effectiveness of the transition plan.

GovernanceTokyo Electric Power Group

Strategy
RiskManagement
Metrics andTargets
Other

Source: Tokyo Electric Power Company, “TEPCO Integrated Report 2022”, p.40
31

Strategy

GovernanceNippon Steel Corporation
With a view to realizing a carbon-neutral society in 2050, the company has presented
specific measures, such as the use of electric arc furnaces and the development of hydrogen
reduction steelmaking technology, and has disclosed them in a roadmap outlining theimplementation dates.

Strategy
RiskManagement
Metrics andTargets
Source: Nippon Steel, “Nippon Steel Integrated Report 2022”, p.25

Other
32

Strategy

Aiming at a carbon-neutral society in 2050, the company has disclosed a roadmap outlining
specific measures such as ammonia co-firing and renewable energy business expansion, andthe timing of their implementation, making it straightforward to grasp its overall strategy.

Governance

Mitsubishi Corporation

Strategy
RiskManagement
Metrics andTargets

Source: Mitsubishi Corporation, "Mitsubishi Corporation Integrated Report 2022”, p.27

Other

33

Strategy

Governance

Mitsubishi Chemical GroupThe company discloses key measures and timelines for its 2050 carbon neutral roadmap. In
particular, the company shows specific reductions from each measure through 2030 in theform of a waterfall chart.

Strategy
RiskManagement
Metrics andTargets
Other
Source: Mitsubishi Chemical Group, "KAITEKI REPORT 2022", p.26

34

Strategy

For the target of net zero emissions in 2050, interim targets, measures and investment are
disclosed. In addition, the percentage of fleet is shown by year, giving a detailed picture of its
transition.

Governance

NYK Line

Strategy
RiskManagement
Metrics andTargets
Other

Source: NYK Line, "The NYK Group ESG Story 2022", p.38-39

35

Strategy

Governance④ Strategy b) (Innovation)
Sumitomo Chemical
Through its unique concepts of responsibility and contribution, the company associates
itself with the risks and opportunities to achieve carbon neutrality in 2050. In terms ofcontribution, the report includes examples of various innovations the company is undertaking.

Strategy
RiskManagement
Metrics andTargets
Other
Source: Sumitomo Chemical, "Sumitomo Chemical Annual Report 2022", p.43
36

Strategy

Sekisui Chemical

Strategy

In addition to climate scenarios (1.5 degrees C and 4 degrees C), the company has conducted
its own scenario analysis, taking into account socioeconomic factors such as urban
concentration and rural decentralization, which are important for the company.
By detailing the risks and opportunities envisaged and the measures taken for the four
resulting world views (Decarbonized smart society, Sustainable circular society, Local
production and local consumption society, and Mass consumption society), the company
shows that its business is capable of responding to any of the scenario outcomes.

Governance⑤ Strategy c) (describing the resilience of climate strategies by considering climate-related
scenarios)

RiskManagement
Metrics andTargets
Other

Source: Sekisui Chemical, “TCFD Report 2022”, p.20
37

Strategy

GovernancePanasonic Holdings
Two climate scenarios (1.5 degrees C scenario, 4 degrees C scenario) are combined withelements of the circular economy, and the resulting scenario analysis is conducted for four
unique scenarios (Decarbonized circular, Low-carbon society with mass-consumption, Fossil
fuel-dependent circular, and Larger entropy societies).
For each scenario, risks and opportunities are identified based on impacts on industry andchanges in customer value, and countermeasures are presented.

Strategy
RiskManagement
Metrics andTargets
Other
Source: Panasonic Holdings, “Panasonic Group's Sustainability Data Book 2022”, p.22
38

Strategy

The company depicts 4 climate scenarios (Central Energy View, Lower Carbon View, Climate
Crisis scenario and 1.5 degrees C scenario) and explains the assumptions as well as major
external environmental changes for each scenario. It also discloses the impact of the scenario
analysis on each of the company's commodities (metals and energy sources).

Governance

BHP Group

Strategy
RiskManagement
Metrics andTargets
Other

Source: BHP Group, “BHP Climate Change report 2020“, p.14

39

Strategy

Governance

East Japan Railway Company

Strategy

Based on an analysis of the demographics of the service area, the company analyzes theimpact on passenger revenue using the Shared Socio-economic Pathways (SSP) scenario.
Moreover, in the estimation of physical risks caused by natural disasters, by taking into
account the increase in the probability of flood occurrence based on the IPCC's Representative
Concentration Pathways (RCP) scenario in addition to the flooding scenario of major rivers in
the region, the increased financial impact is quantitatively estimated in the pattern of with andwithout flood control measures.

RiskManagement
Metrics andTargets
Other
Source: East Japan Railway Company, "JR East Group Report 2022”, p.59

40

Strategy

Governance
Strategy
RiskManagement
Metrics andTargets
Other

Source: East Japan Railway Company, "JR East Group Report 2022”, p.60

41

Strategy

GovernanceTokyu Fudosan Holdings
In addition to the 1.5 degrees C and 4 degrees C scenarios, the IEA also discloses the 3
degrees Celsius scenarios, which are positioned as an intermediate scenario taking into
account IEA's Stated Policies Scenario (STEPS) and commitments under the Paris Agreement(NDC).

Strategy
RiskManagement
Metrics andTargets
Other

Source: Tokyu Fudosan Holdings website, "TCFD disclosure"(https://tokyu-fudosan-hd-csr.disclosure.site/en/themes/57)

42

Strategy

Governance
Strategy
RiskManagement
Metrics andTargets
Other

Source: Tokyu Fudosan Holdings website, "TCFD disclosure"(https://tokyu-fudosan-hd-csr.disclosure.site/en/themes/57)
43

Strategy

Governance

Kyushu Electric Power
Scenario analysis is not limited to estimating financial impact, but also includes visualizationof the potential for new business development, including overseas operations.

Strategy
RiskManagement
Metrics andTargets
Other
Source: Kyushu Electric Power, "KYUDEN GROUP INTEGRATED REPORT 2022”, p.53
44

Strategy

In disclosing financial impact, the impact level is divided into five levels according to theimpact on profit and the urgency level according to the period when full-fledged impact is
expected, and the disclosure incorporates quantitative factors.
With respect to acute physical risk, investment decisions for specific measures on domestic
and overseas locations and supply chains is evaluated according to the scope of events.

Governance

Ricoh

Strategy
RiskManagement
Metrics andTargets
Other

Source: Ricoh, “Ricoh Group TCFD Report 2022”, p.1745

Strategy

Governance

Mitsubishi Estate
The company conducts scenario analysis for two climate scenarios (1.5 - 2 degrees C
scenario and 4 degrees C scenario) and qualitatively explains the main external environment
and the impact on the company in each scenario. Following such explanation, the risks,
opportunities and impacts identified as a result of the scenario analysis are disclosed in tabular
form.

Strategy
RiskManagement
Metrics andTargets
Other
Source: Mitsubishi Estate, "Information Disclosure Based on TCFD Recommendations“, p.7-9
46

Risk Management

Exemplary TCFD disclosures on risk management are shown in this chapter.
(See TCFD Guidance 3.0, page 28)
Omron

Strategy

Consideration of climate change-related risks as part of the company-wide risk management
structure is explained in the integrated report and disclosed using flow diagrams.

Governance(3) Risk Management

Risk
Management
Metrics andTargets
Other

47

Risk Management

Governance
Strategy
RiskManagement

Source: OMRON, "Integrated Report 2022", p.82

Metrics andTargets
Other
48

Risk Management

Based on the results of analysis from scenarios on transition risks and physical risks due toclimate change, the Group discloses in detail the management of natural catastrophe risks,
control of retained amount of risk, risks such as litigation and reputation as a responsible
institutional investor, and management of investment risks.

Governance

MS & AD Insurance Group

Strategy
RiskManagement
Metrics andTargets
Other

Source: MS & AD Insurance Group, "Climate-Related Financial Disclosures ～TCFD Report～", p.12-13
49

Risk Management

Governance
Strategy
RiskManagement
Metrics andTargets
Other
Source: MS & AD Insurance Group, "Climate-Related Financial Disclosures ～TCFD Report～", p.13-1450

Risk Management

The risk control framework for the carbon-related sectors is explained and disclosed alongwith measures to control risks for both customers and the company.

Governance

Mizuho Financial Group

Strategy
RiskManagement
Metrics andTargets
Other

Source: Mizuho Financial Group, “Mizuho Financial Group TCFD Report”, p.50

51

Risk Management

Governance
Strategy
RiskManagement
Metrics andTargets
Other
Source: Mizuho Financial Group, “Mizuho Financial Group TCFD Report”, p.51

52

Risk Management

Information for identifying climate-related risks at the corporate level (local risk
assessments, country specific climate-related assessments) is provided. The company also
discloses how it applies the learning from risk assessments, such as taking steps to prevent
flooding (in the red frame on the next page).

GovernanceSchlumberger

Strategy
RiskManagement
Metrics andTargets
Other

Source: Schlumberger, "Sustainability Report 2020”, p.20 (Red frame is added by the TCFD Consortium)
53

Risk Management

Governance
Strategy
RiskManagement
Metrics andTargets
Other
Source: Schlumberger, "Sustainability Report 2020”, p.21 (Red frame is added by the TCFD Consortium)

54

Risk Management

The inclusion of climate-related risks and opportunities in the company-wide risk
management process (1. risk identification, 2. risk assessment, 3. discussion and 4. Risk
mitigation, as well as monitoring) and that the process is under the supervision at the board
level are disclosed using flow diagrams. Examples of management of major climate-relatedrisks are also presented.

Governance

CEMEX

Strategy
RiskManagement
Metrics andTargets
Other

Source: CEMEX, "Integrated Report 2021”, p.269
55

Risk Management

Governance
Strategy
RiskManagement
Metrics andTargets
Other
Source: CEMEX, "Integrated Report 2021”, p.270

56

Risk Management

An easy-to-understand illustration of the relationship between major climate-related risks
and how they relate to the company's operations is provided.

Governance

BNP Paribas

Strategy
RiskManagement
Metrics andTargets
Other

Source: BNP Paribas, "2021 TCFD Report”, p.36
57

Risk Management

Governance

ITOCHU Corporation
ESG risks including climate change are included in the items to be considered when making
investment decisions in the business investment process, and risk management closely related
to management decision-making is performed. It is shown that physical and transition risks
are handled in company-wide risk management.

Strategy
RiskManagement
Metrics andTargets
Other
Source: ITOCHU Corporation website, "Climate Change (Information Disclosure Based on TCFD
Recommendations)" (https://www.itochu.co.jp/en/csr/environment/climate_change/index.html)

58

Risk Management

Governance
Strategy
RiskManagement
Metrics andTargets
Other

Source: ITOCHU Corporation website, "Climate Change (Information Disclosure Based on TCFD
Recommendations)" (https://www.itochu.co.jp/en/csr/environment/climate_change/index.html)

59

Risk Management

Governance

HitachiA sophisticated company-wide risk management system is implemented, including themanagement of risks and opportunities in investments, and climate change measures havebeen incorporated into it. It can be read that all risks are examined on a company-wide basis,
rather than individually managing climate-related risks.

Strategy
RiskManagement
Metrics andTargets
Other
Source: Hitachi, "Hitachi Integrated Report 2022”, p.75, p.79

60

Risk Management

Climate change response has been selected as one of the key risks for company-wide risk
management and is implemented within the same framework as other risk items.

GovernanceFuji Oil Group

Strategy
RiskManagement
Metrics andTargets
Other

Source: Fuji Oil Group, "Fuji Oil Group Integrated Report 2022", p.30

61

Risk Management

Governance
Strategy
RiskManagement
Metrics andTargets
Other
Source: Fuji Oil Group, "Fuji Oil Group Integrated Report 2022", p.31 (Red frame is added by the TCFD
Consortium)

62

Metrics and Targets

Exemplary TCFD disclosures on Metrics and Targets are shown in this chapter, with emphasison greenhouse gas emissions, remuneration, and financial institution metrics which are
subjects of considerable discussion in recent disclosures, as well as company-specific metrics
and targets.
(See TCFD Guidance 3.0, page 30)

Strategy① Greenhouse gas emissions

Governance(4) Metrics and Targets

Marubeni Corporation
In addition to Scope 1 and Scope 2 emissions, major categories of Scope 3 emissions aredisclosed, along with reduction targets.

Risk
Management
Metrics andTargets
Other

Source: Marubeni Corporation, "Disclosure in Line with the Recommendations of the TCFD”, p.12

63

Metrics and Targets

GovernanceTokyu Fudosan Holdings
For Scope 3 emissions along with Scope 1 and Scope 2 emissions, reduction targets andemissions are disclosed. For Scope 3 emissions, the timeframe is stated, and for intermediate
years, qualitative criteria to be achieved are listed, and KPIs are specified by integrating withrelated metrics.

Strategy
RiskManagement
Metrics andTargets
Other
Source: Tokyu Fudosan Holdings website, "TCFD disclosure"(https://tokyu-fudosan-hd-csr.disclosure.site/en/themes/57#281)
64

Metrics and Targets

Scope 1 to Scope 3 emissions are broken down by regions (Scopes 1 and 2), GHG (Scope 1),
and categories (Scope 3), along with per vehicle figure over time. From the perspective oftimeliness of information disclosure, the Sustainability Data Book has been updated
throughout the year since 2020.

GovernanceToyota Motor Corporation

Strategy
RiskManagement
Metrics andTargets
Other

Source: Toyota Motor Corporation, "Sustainability Data Book 2022", p.46

65

Metrics and Targets

Governance

A.P. Moller - Maersk
Scope 1 to Scope 3 emissions are listed, and Scope 3 emissions are shown for major
categories. It is also indicated that more detailed data (emissions by category) are disclosed in
the company's ESG data documents.

Strategy
RiskManagement
Metrics andTargets
Other
Source: A. P. Moller-Maersk, "Sustainability Report 2021”, p.25
66

Metrics and Targets

Scope 3 emissions are disclosed according to upstream / downstream sectors (the type of
products sold) and according to business, over time.

Governance

BHP Group

Strategy
RiskManagement
Metrics andTargets
Other

Source: BHP Group, "BHP Climate Change report 2020”, p.28

67

Metrics and Targets

Governance

Meiji Holdings
In addition to the CO2 emission targets (Scope 1 and Scope 2) including the interim targets,a breakdown of the measures to achieve them are disclosed, indicating the practicability ofthe plan.

Strategy
RiskManagement
Metrics andTargets
Other

Source: Meiji Holdings, "Toward Carbon Neutrality”, p.6

68

Metrics and Targets

Groupwide CO2 emission targets (Scope 1 - 3) is established for the mid-term (2030) andthe long-term (2050), with metrics and targets set for each region.

Governance

Asahi Group Holdings

Strategy
RiskManagement

Source: Asahi Group Holdings, “Asahi Group TCFD REPORT”, p.4

Metrics andTargets
Other

69

Metrics and Targets

Governance

The Japan Steel Works
As a contribution toward a carbon-neutral society, the company sets and discloses not only
its own CO2 emission targets (on an absolute basis) but also targets and achievements related
to the introduction of renewable energy, which is a means to achieve the target.

Strategy
RiskManagement
Metrics andTargets
Other
Source: The Japan Steel Works website, "Response to Climate Change"(https://www.jsw.co.jp/en/sustainability/environment/climatechange.html)

70

Metrics and Targets

The company provides an easy-to-understand information of Scope 1 - 3 emissions, broken
down by major categories and including targets.

Governance

Kawasaki Heavy Industries

Strategy
RiskManagement
Metrics andTargets
Other

Source: Kawasaki Heavy Industries, “Kawasaki Report 2022”, p.29
71

Metrics and Targets

Governance② Metrics and targets of financial institutions
In recent years, financial institutions such as banks, asset managers, asset owners andinsurance companies have shown interest in climate-related information of their portfolio, butthey are also in a position to disclose their climate-related risks and opportunities. Exemplary
TCFD disclosures by financial institutions are shown in this section.
Mitsubishi UFJ Financial Group

Strategy

The company classifies various types of sustainable finance by category and type of finance,and discloses in chronological order along with targets.

Risk
Management
Metrics andTargets
Other
Source: Mitsubishi UFJ Financial Group website, “Progress in Sustainable Finance Goals”(https://www.mufg.jp/english/csr/environment/tcfd/metricsandtargets/index.html)

72

Metrics and Targets

For carbon-related assets, the company discloses climate change-related risks (transition
risks and physical risks) and credit exposure in four levels in the form of an easy-to-understandrisk heat map.

Governance

Citigroup

Strategy
RiskManagement
Metrics andTargets
Other

Source: Citigroup, “Taskforce on Climate-Related Financial Disclosures Report 2021”, p.53

73

Metrics and Targets

Governance
Strategy
RiskManagement
Metrics andTargets
Other
Source: Citi, “Taskforce on Climate-Related Financial Disclosures Report 2021”, p.54

74

Metrics and Targets

As regards finance emissions of loan recipients, the actual results and targets (interim andfinal goals) are listed for each business category, and the progress made to date and thediscrepancy with the targets are clearly shown.

Governance

NatWest Group

Strategy
RiskManagement
Metrics andTargets
Other

Source: NatWest Group, "2021 Climate-related Disclosures Report”, p.82
75

Metrics and Targets

Governance③ Company-specific metrics and targets
Other exemplary disclosures of company-specific metrics and targets are shown in thissection.
ITOCHU Corporation

StrategyWith its diverse businesses, the company has set a GHG target of “offsetting Co2 to zero” in
2040, taking into account the contribution to reduction. In addition, major businesses related
to emission reduction and contribution to reduction are listed, indicating that the target isconsistent with its business strategy.

RiskManagement
Metrics andTargets
Other
Source: ITOCHU Corporation website, "Climate Change (Information Disclosure Based on TCFD
Recommendations)" (https://www.itochu.co.jp/en/csr/environment/climate_change/index.html)

76

Metrics and Targets

Governance
Strategy
RiskManagement
Metrics andTargets

Source: ITOCHU Corporation website, "Climate Change (Disclosure Based on TCFD Recommendations)"(https://www.itochu.co.jp/en/csr/environment/climate_change/index.html)

Other

77

Metrics and Targets

Governance

Kao
Given the large share of raw material procurement in its Scope 3 emissions, the company
sets its own metric of supplier activity and discloses its progress.

Strategy
RiskManagement
Metrics andTargets
Other
Source: Kao, “Sustainability Report 2022”, p.104
78

Metrics and Targets

Exemplary TCFD disclosures on remuneration, which was introduced by TCFD in 2021 as oneof the cross-industry climate-related metric category to be disclosed, are shown in this section.
ENEL Group

Strategy

Governance disclosures on climate change responses clearly indicate that climate-related
metrics are linked to executive compensation as well as its unit (CO2 emissions per kWh of thegroup).

Governance④ Remuneration

Risk
Management
Metrics andTargets

Source: ENEL Group, "Sustainability report 2021”, p.77,78 (Red frame is added by the TCFD Consortium)

Other

MS & AD Insurance GroupThe company discloses that climate-related initiatives are included in its executive
compensation metrics, with links to relevant pages.

Source: MS & AD Insurance Group, "Climate-Related Financial Disclosures ～TCFD Report～", p.17

79

Metrics and Targets

Governance

UnileverIn addition to explaining its ESG governance structure, the annual report discloses that the
Sustainability Progress Index, which measures progress toward sustainability goals, including
climate-related metrics, is linked to remuneration.

Strategy
RiskManagement
Metrics andTargets
Other
Source: UNILEVER PLC, "Annual Report and Accounts 2021”, p.81
(Red frame is added by the TCFD Consortium)80

Other① Disclosure on alignment with TCFD Recommendations
Exemplary disclosures of companies’ climate change responses in line with TCFD
recommendations are shown in this section.

Governance(5) Other

City Developments
Strategy

The integrated report qualitatively discloses the four TCFD Recommendations in the form of
a seven-page table. Each item also provides a link to the corresponding page in thesustainability report on quantitative information that backs up the qualitative disclosure.

Risk
Management
Metrics andTargets
Other

Source: City Developments, "INTEGRATED SUSTAINABILITY REPORT2022”, p.114
81

OtherGovernanceJ - Oil Mills
The company became a TCFD supporter in November 2020 and has been disclosing climaterelated information in line with TCFD recommendations since 2021. The integrated report
describes the roles and structure of top management, risks and opportunities from a companywide perspective, and provides concise and comprehensive disclosure of four items. For more
information, including scenario analysis results, a link to the website is provided.

Strategy
RiskManagement
Metrics andTargets
Other
Source: J-Oil Mills, "J-Oil Mills Report 2022," p.62-63
82

OtherThe company posts a TCFD comparison chart on the ESG investor page of its website anddiscloses an overview of its initiatives for each item. At the same time, the summary of each
item includes a link to the relative section of its TCFD disclosure website which provides details,
making it easy to grasp necessary and sufficient information.

GovernanceTokyu Fudosan Holdings

Strategy
RiskManagement
Metrics andTargets
Other

Source: Tokyu Fudosan Holdings website, "TCFD Index"(https://tokyu-fudosan-hd-csr.disclosure.site/en/themes/54)
83

OtherGovernance

NatWest GroupIn the company's TCFD report, an overview of the four themes of TCFD is concisely
summarized on one page for each item, with detailed information on each item, including
quantitative data.

Strategy
RiskManagement
Metrics andTargets
Other
Source: NatWest Group, "2021 Climate-related Disclosures Report”, p.984

OtherIn the integrated report, an overall information is provided according to the relevant
sections of the TCFD recommendations, and detailed information on organizational structureetc. are provided.

GovernanceFujitsu General

Strategy
RiskManagement
Metrics andTargets
Other

Source: Fujitsu General, "Integrated Report 2022“, p.59-60
85

OtherGovernance

ORIX Real Estate Investment Corporation
In the ESG report, the outline of the four themes of TCFD is shown, and the scenario analysis
results are also explained clearly using charts and figures.

Strategy
RiskManagement
Metrics andTargets
Other
Source: ORIX Real Estate Investment Corporation, "2022 ESG Report“, p.15
86

OtherExemplary TCFD disclosures of companies with diverse business models with a variety ofrisks and opportunities for climate change are shown in this section. (See TCFD Guidance 3.0,
page 36)

Governance② Disclosure methods for companies with diverse business models

HitachiStrategy

In the scenario analysis, the business environment is analyzed for each business andscenario, and future actions are described, which is useful for the evaluation of business units.
At the same time, factors other than the environment are considered, and information usefulfor comprehensive judgment is disclosed. The contents are distinguished by providing
relatively brief descriptions in the integrated report and the background of the scenarios inthe sustainability report.

Risk
Management
Metrics andTargets

Source: Hitachi, “Hitachi Integrated Report 2022”, p.79

Other

87

OtherGovernance
Strategy
RiskManagement
Metrics andTargets
Other
Source: Hitachi, “Sustainability Report 2022”, p.50
88

Other

Disclosure is made in line with the four themes of the TCFD recommendations (Governance,
Strategy, Risk Management, Metrics and Targets), and the impact on each business is also
individually analyzed.

GovernanceMarubeni Corporation

Strategy
RiskManagement
Metrics andTargets
Other

Source: Marubeni Corporation, "Disclosure in Line with the Recommendations of the TCFD”, p.5-689OtherGovernance③ Disclosure of objectives for responding to climate change
In TCFD disclosure, in addition the 11 items on the four themes recommended by TCFD,
disclosure of the company's views on responding to climate change will lead to better
understanding of investors. Exemplary disclosures of objectives for responding to climatechange are shown in this section.
Asahi Group Holdings

Strategy

At the beginning of the TCFD report, the company explicitly explains the position of climatechange in its environmental strategy.

RiskManagement
Metrics andTargets
Source: Asahi Group Holdings, “Asahi Group TCFD Report”, p.2

Other
90

OtherIn addition to its basic approach to climate change, the company's positioning of climatechange in its diverse operations, such as insurance underwriting, investments and financing,and fund formation, as well as its approach as a global company are shown, leading to a better
understanding of its disclosure.

Governance

Tokio Marine Holdings

Strategy
RiskManagement
Metrics andTargets
Other

Source: Tokio Marine Holdings, "2022 Integrated Annual Report”, p.79

91

OtherGovernance④ Diverse disclosure media
The media of TCFD disclosure is diversifying. Exemplary disclosures in various media areshown in this section. (See TCFD Guidance 3.0, page 9)i) Disclosure in securities reports

Strategy

An increasing number of companies are disclosing climate-related information in linewith TCFD recommendations in their securities reports. In addition, consideration is
being given to adding a new section to the securities reports that will include the section
titled "Views and Initiatives on Sustainability" which is expected to attract even greaterinterest.
Examples of disclosure are shown.

Risk
Management

J Front Retailing
In its multiple media (integrated reports, websites and securities reports), the company
discloses climate-related information in accordance with 11 items in the TCFD
recommendations.
The company’s securities report provides a quantitative risk and opportunity impact
assessment based on 2 climate scenarios, and also includes plans for a 2050 net-zero transition.

Metrics andTargets
Other
Source: J. Front Retailing, "Annual Securities Report, the 15th fiscal year”, p.48

92

OtherGovernance
Strategy
RiskManagement
Metrics andTargets
Other

Source: J. Front Retailing, "Annual Securities Report, the 15th fiscal year”, p.49

93

OtherGovernance
Strategy
RiskManagement
Metrics andTargets
Other
Source: J. Front Retailing, "Annual Securities Report, the 15th fiscal year”, p.50-51

94

OtherThe company started to include TCFD disclosure in its securities reports since the fiscal year
ending in March 2019 and is a pioneering company on to disclosure in securities reports. In
particular, the company quantitatively discloses its impact on profits in the analysis of risks andopportunities.

GovernanceMarui Group

Strategy
RiskManagement
Metrics andTargets
Other

Source: Marui Group, "Annual Securities Report, the 86th term”, p.25

95

OtherGovernance
Strategy
RiskManagement
Metrics andTargets
Other
Source: Marui Group, "Annual Securities Report, the 86th term”, p.26

96

OtherStrategy

The company discloses climate-related information in accordance with TCFD
recommendations through its multiple media (securities report, integrated report andwebsite).
The summary of disclosure and transition plan based on TCFD recommendations arepresented in the securities report and integrated report, and links to the company's website
are provided for details. The roadmap for net zero is also explained on ESG Day, an event forinvestors.

Governance

Mitsui & Co.

Risk
Management
Metrics andTargets
Other

Source: Mitsui & Co., “Annual Securities Report for the fiscal ended March 31, 2022”, p.31
97

OtherGovernance
Strategy
RiskManagement
Metrics andTargets
Other
Source: Mitsui & Co., “Annual Securities Report for the fiscal ended March 31, 2022”, p.29-30

98OtherExemplary disclosures in presentations at financial results briefings and ESG briefings,
with descriptions in an easy-to-understand format, are shown.
Mitsui Fudosan

Strategy

In its financial results presentation materials, the company describes its goals and progresson "climate change and decarbonization" as part of its non-financial data disclosure.

Governanceii) Disclosure in investor briefing materials

RiskManagement
Metrics andTargets99

Other

Source: Mitsui Fudosan, "Financial Results and Business Highlights for Summary of 1Q, FY 2022", p.45

OtherGovernance

AGC
At ESG briefings, the company charts its business portfolio in terms of the relationshipbetween the carbon efficiency of its products and asset efficiency, and visualizes businesses
expected to grow and expand through decarbonization.

Strategy
RiskManagement
Metrics andTargets
Source: AGC, "ESG Briefing: 'AGC's Sustainability Management -Addressing Climate Change Issues-’”, p.20

Other
100

OtherCorporate websites are useful media, especially for companies that have begun tomake disclosure efforts, in that it enables them to systematically browse and obtain
information on a wide variety of information and to update it as needed. Exemplary TCFD
disclosures on corporate websites are shown.

A separate disclosure page based on TCFD recommendations has been set up on thesustainability environment page to facilitate access to information for investors and others.

Strategy

Ono Pharmaceutical

Governanceiii) Disclosure on corporate websites

RiskManagement
Metrics andTargets
Other

Source: Ono Pharmaceutical website, “Information Disclosure Based on the TCFD Recommendation”(https://sustainability.ono-pharma.com/en/themes/121)

101

OtherGovernance
Strategy
RiskManagement
Metrics andTargetsOther
In some cases, the layout has been altered with the permission of the disclosing company.
Furthermore, the publication of case examples does not guarantee its full compliance with TCFD's
recommendations.
102