FY 2023 TCFD Consortium
Member Survey Result

29 September 2023
TCFD Consortium

List of Questions(1/2)[Common question]
Question

Financial institutions

Non-financial institutions

Question 3 What market segment does your company belong to? (Select one)
Question 4 What motivated your institution to join the TCFD Consortium? (Multiple choice)
Question 5

How has your company responded to TCFD recommendations? Please indicate the year in which your company made first disclosure in response to TCFD
recommendations. If not, please indicate the expected year of disclosure. (select one)

Question 6

For respondents who chose option a. to e. in Question 5 (those who have already disclosed information based on TCFD recommendations): what media does
your company utilize to disclose information based on TCFD recommendations? (Multiple choice)

Question 7

For respondents who chose option a. to e. in Question 5 (those who have already disclosed information based on TCFD recommendations): is assurance to thedisclosed information provided by an independent organization?

Question 8 What are the challenges for your company in further enhancing its TCFD disclosures or in the future? (Multiple choice)
Question 9

For respondents who chose option a. in Question 8 (lack of organizational support and personnel for disclosure): please describe your companyʼs views on
what kind of personnel (e.g., directors, managers, professionals in charge of sustainability topics) are lacking. (Free description)

Question 10

Regarding the 11 reccomendations by TCFD, to what extent does your company currently disclose information in terms of the 11 recommendations of TCFD inyour publications (e.g., securities reports, integrated reports, environmental reports, websites, etc.)?

Question 11

What is your organizationʼs transition plan? Do you currently disclose your transition plan in your company's externally publications (securities reports,
integrated reports, environmental reports, websites, etc.)?

Question 12

Regarding the seven cross-industry metric categories recommended by TCFD, please indicate which metric categories are currently disclosed in yourcompanyʼs publications (e.g., securities reports, integrated reports, environmental reports, websites, etc.)?

Question 13 To those undertaking scenario analysis, please describe your company's scenario analysis disclosure.

Question 14

What were the benefits of supporting and disclosing information according to TCFD recommendations? What are the expected benefits? Please indicate
options closest to the situation in your company. (Multiple choice)

Question 15

Based on the TCFD disclosure framework, the General Requirements (S1) and Climate-related Disclosures (S2) of the IFRS Sustainability Disclosure Standards
are published, which specify disclosure items in detail. Please indicate how your company is responding. (Select one)The results of the responses to shaded questions are only disclosed and available for TCFD consortium member companies.

1List of Questions(2/2)[Individual question]
Question

Financial institution

Non-financial institution

Question 16

What medium does your company use to obtain disclosure information about investee companies?
(Multiple choice)

Please indicate the frequency with which climate change information disclosure is discussed
in dialogue (engagement) with financial institutions, e.g., investors. (select one)

Question 17

Please respond to the status of utilization of information based on TCFD disclosed by companies
included in your companyʼs portfolios. (Multiple choice)For respondents who answered a, b and c in Question 16: what questions were asked during
the dialogue (engagement) with financial institutions? (Multiple choice)

Question 18

Regarding your companyʻs engagement with financed companies on climate change issues: what
aspects of engagement does your company focus on? (Multiple choice)Transition financing, which supports companies that are promoting a transition toward
decarbonization, is gaining momentum. What is your company's perception of transition
finance? (Select one)

Question 19

Please indicate any concerns your company may have with respect to conducting climate-change
related engagement with financed companies. (Multiple choice)

What activities and requests do you think the TCFD Consortium should address? (Multiple
choices allowed) * Optional answer

Question 20

Does your company analyze the GHG emissions (financed emissions) of your companyʼs portfolio andset targets? (select one)For respondents who answered option a (publication of guidance, etc.) in Question 19. The
TCFD Consortium has published TCFD Guidance 3.0 and Green Investment Guidance 2.0.
What topics would you like to see in the guidances to be published in the future? (Free text)* Optional answer

Question 21

For respondents who answered option a in Question 20 (those who have set targets): please indicate
the year which your company sets the target. (select one)For respondents who answered option b (education and awareness-raising) in Question 19.
What specific needs do you have? (Multiple choices possible) * Optional answer

Question 22

For respondents who answered option a to Question 20: please explain your companyʼs targets. (freedescription)

For respondents who answered option b., c. in Question 21. Please be specific about the
number of seminars/educational programs and the fees. *optional answer

Transition financing, which supports companies that are promoting a transition toward
Question 23 decarbonization, is gaining momentum. Please inform if you have any requests for transition
finance. (Free text) * Optional answer
Question 24

For respondents who answered option c (position paper or opinion paper) in Question 19.
Please indicate the topic on which positions paper or opinion paper should be written. (Freetext) * Optional answer

What activities and requests do you think the TCFD Consortium should address? (Multiple choices
allowed) * Optional answer

For respondents who answered option a (publication of guidance, etc.) in Question 24. The TCFD
Question 25 Consortium has published TCFD Guidance 3.0 and Green Investment Guidance 2.0. What topics
would you like to see in the guidances to be published in the future? (Free text) * Optional answer

Question 26

For respondents who answered option b (education and awareness-raising) in Question 24. What
specific needs do you have? (Multiple choices possible) * Optional answer

Question 27

For respondents who answered option b., c. in Question 26. Please be specific about the number ofseminars/educational programs and the fees. *optional answer

For respondents who answered option c (position paper or opinion paper) in Question 24. Please
Question 28 indicate the topic on which positions paper or opinion paper should be written. (Free text) *Optional answer

The results of the responses to shaded questions are only
disclosed and available for TCFD consortium member companies.

2

Survey collection status
 Of the total 802 TCFD Consortium members, 421 responded to the survey (Theresponse rate was 52.5%. Survey period: July 20, 2023 - August 21).
 Of the 179 financial institution members, 100 responded to the survey (theresponse rate: 55.9%).
 Of the 623 non-financial institution members, 321 responded to the survey(the response rate: 51.5%).
In the previous survey (conducted from August to September 2022), 386 institutions (56.7%) responded.

Questionnaire response status
Total

Financial

Non-financial

Number of TCFD Consortium members

802

179

623

Number of responses to thequestionnaire

421

100

321

Response rate

52.5%

55.9%

51.5%
3

Overview of the FY 2023 status report (questionnaire results)


The Company's website and integrated reports are the most frequently used disclosure media, but the number of
securities reports has increased significantly compared to last year. (Question 6)

Challenges for companies to disclose TCFD include insufficient analysis in specialized areas such as climate
scenarios, inadequate organizational support, and a shortage of human resources. (Questions 8)Compared to last year's survey, ratio of disclosure for many items in the TCFD recommendations have increased,
but as last year, strategy c including scenario analysis is slightly lagging the others (Question 10).



30% of financial institutions and nearly 50% of non-financial institutions disclosed their transition plans.
(Question 11)Regarding the 7 cross-industry metrics proposed by TCFD, the most disclosed are Scope 1 and 2 emissions, with
90% of respondents disclosing. Disclosure of Scope 3 emissions has also progressed compared to lastyearʻs survey, with about 60% of respondents disclosing. On the other hand, capital allocation, internal carbon
price (ICP), and compensation are new items, and the disclosure ratio of the respondent companies iscurrently low. (Question 12)Regarding scenario analysis, the disclosure ratio of quantitative analysis, which were 50% for financial institutions
and 20% for non-financial institutions in the last yearʼs survey, increased to 70% for financial institutions and
40% for non-financial institutions in this yearʼs survey. (Question 13)

Popular view on the merit of TCFD information disclosure is "deepening internal understanding of our climaterelated risks and opportunities". (Question 14)



Nearly half of non-financial institutions are interested in transition finance. (Non-financial Question 18)

Many respondents answered that their motivation for joining the TCFD Consortium was to gather information andunderstand trends in both financial and non-financial sectors. (Question 4)4

Question 3 (Financial & non-financial institutions)

What market segment does your company belong to? (Select one)
Financial institutions (100 respondents)

Non-financial institutions (321 respondents)

4%
0%

18%

1%

10%

2%

21%

57%

82%

2%
2%0%
a. Prime market

b. Standard market

c. Growth market

a. Prime market

b. Standard market

c. Growth market

d. Overseas market

e. Unlisted

f. Othersd. Overseas market

e. Unlisted

f. Others

80% of non-financial institutions are listed on the Prime Market. Financial institutions, on the other hand, have ahigh ratio of unlisted companies, which includes asset management companies and other subsidiaries.
The ratio of the standard market and the growth market is about 2% for both financial institutions and nonfinancial institutions.

5Question 4 (Financial & non-financial institutions)

What motivated your institution to join the TCFD Consortium? (Multiple choice)Non-financial institutions (321 respondents)

Financial institutions (100 respondents)
a. As a PR opportunity for the Company'sa. As a PR opportunity for the Company's

29

disclosure effortsb. Collection of information on the status ofb. Collection of information on the status of67

initiatives of other companies in the same industry

c. Specific methods of disclousure and utilization

84

Information collectiond. Understanding of internatiional TCFD-related

e. Gathering information about advanced TCFD

d. Understanding of internatiional TCFD-related

e. Gathering information about advanced TCFD

f. Sharing information about TCFD-rerated topics

g. Utilizing as a venue for exchanging ideas or30

dialog with other companites and financial

institutions

1h. Other

070

dialog with other companites and financial

institutions

3h. Other

20

40

60

80

100

(Organization)

94

with other companies and financial institutions

g. Utilizing as a venue for exchanging ideas or253

initiatives in Japan and abroad

38

with other companies and financial institutions

247

trends79

initiatives in Japan and abroad

268

Information collection74

trends217

initiatives of other companies in the same industry

c. Specific methods of disclousure and utilization

f. Sharing information about TCFD-rerated topics

155

disclosure efforts

0

50

100

150

200

250

300

(Organization)

Popular responses were options b to e (Collecting information and understanding trends) for both financial andnon-financial institutions.
The ratio of respondents selecting option a (PR for disclosure) is relatively high for non-financial institutions.
6

Question 5 (Financial & non-financial institutions)

How has your company responded to TCFD recommendations? Please indicate the year in which yourcompany made first disclosure in response to TCFD recommendations. If not, please indicate the expected
year of disclosure. (select one)Non-financial institutions (321 respondents)

Financial institutions (100 respondents)
a. Fiscal 2019 or earliera. Fiscal 2019 or earlier

23(disclosure year 4 or later)b. Fiscal 2020 (disclosure year 3)

b. Fiscal 2020 (disclosure year 3)

16

c. Fiscal 2021 (disclosure year 2)

28c. Fiscal 2021 (disclosure year 2)

d. Fiscal 2022 (disclosure year 1)

26 d. Fiscal 2022 (disclosure year 1)

e. Current fiscal year (fiscal
f. Next fiscal year and beyondg. Others



26
17

(fiscal 2024 -)g. Others
5

10

15

20

25

30

(Organization)

105

f. Next fiscal year and beyond

0
0

79

2023)

1

(fiscal 2024 -)42

e. Current fiscal year (fiscal

6

2023)

41

(disclosure year 4 or later)

11
0

20

40

60

80

100 120(Organization)

Non-financial institutions have seen a sharp increase in disclosure since 2021, triggered by the adoption of the
Corporate Governance Code.
For financial institutions, major institutions such as banks, securities companies, life and non-life insurers, andasset management companies have started to disclose information at an early stage, and regional banks haverecently started to disclose information in accordance with the Corporate Governance Code.
7

Question 6 (Financial & non-financial institutions)
For respondents who chose option a. to e. in Question 5 (those who have already disclosed information
based on TCFD recommendations): what media does your company utilize to disclose information based on
TCFD recommendations? (Multiple choice)Financial Institutions
Annual Securities Report2%
5%

Non-Financial Institutions
52%

16%

Integrated Report

56%
56%
59%

32%

Environmental Report/Sustainability Report

19%

32%
34%

Home Page

76%
80%

59%

30%
33%
29%

Home Page

59%

40%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

FY 2023 (293 institutions)

FY 2022 (254 institutions)

FY 2023 (293 institutions)

FY 2022 (254 institutions)

FY 2021 (154 institutions)

FY 2020 (64 organizations)

FY 2021 (154 institutions)

FY 2020 (64 organizations)

FY 2020

FY 2021

FY 2022

85%
82%

59%

5%
11%
5%
6%

Others

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

66%
63%
69%

44%

Environmental Report/Sustainability Report

25%
26%
24%
32%

68%

32%

12%
14%

Integrated Report

41%

39%

OthersAnnual Securities Report

FY 2023

FY 2020

FY 2021

FY 2022

FY 2023

annual securities report

1

1

14

51

annual securities report

9

19

82

199

integrated report

13

18

50

55

consolidated report

44

67

160

192

Environmental
Report/Sustainability Report

9

11

30

32

Environmental
Report/Sustainability Report

38

44

84

89

home page

13

22

71

75

Home Page

38

61

208

249

Other

7

15

21

25

Other

4

8

28

16

Number of responses

22

57

89

99

Number of responses

64

154

254

293




Time series analysis showed that both financial and non-financial institutions are rapidly increasing their use of
securities reports. It is inferred that in addition to other media, many companies are promoting disclosure insecurities reports due to the revision of the Cabinet Office Ordinance.
However, in terms of popularity, the largest number of companies disclose information on their own websites,
similar to the survey conducted last year.
8Question 7 (Financial & non-financial institutions)

For respondents who chose option a. to e. in Question 5 (those who have already disclosed
information based on TCFD recommendations): is assurance to the disclosed information provided
by an independent organization?
Financial institutions (99 respondents)

a. Reasonable assurances

a. Reasonable assurances1

have been implemented

been implementedc. No assurances have beenc. No assurances have181

been implementedd. Other

12
20

80

been implemented
65

implemented

b. Limited assurances have

21

0

8

have been implemented

b. Limited assurances haved. OtherNon-financial institutions (295 respondents)

40
60
80
（Organization）

26
0

50

100
150
200
（Organization）

On the other hand, 20% of financial institutions and 30% of non-financial institutions provide external assurance(mostly limited assurance).

9

Question 8 (Financial & non-financial institutions)

What are the challenges for your company in further enhancing its TCFD disclosures or in the future?
(Multiple choice)Non-financial institutions (321 respondents)

Financial institutions (100 respondents)
a. Lack of organizational support and57

personnel for disclosures
b. Insufficient analysis of specialized

62

areas such as climate scenarios
c. No penetration of TCFD disclosure into

206
177

47

the entire company
d. A shortfall of information and

108

36

knowledge relating to TCFD disclousee. No particular challenges

113

f. Other

32

14
0



173

10

20

30

40

50
60
700
（Organization）

50

100

150

200

250

（Organization）

In order to further enhance TCFD disclosure, the majority of both financial institutions and non-financial
institutions expressed the opinion that there is a lack of organizational support and personnel, and sufficient
analysis is not being done in specialized areas such as climate scenarios.

10Questions 10 and 12 (Financial & non-financial institutions)

The definition of the 11 disclosure recommendations that break down the four core elements recommended
by TCFD is shown in the matrix below.

The seven cross-industry metric categories recommended for disclosure in the October 2021 revision are
shown below.
11 Disclosure Recommendations of TCFD
TCFD four core elements

Governance

StrategyDisclose the organizationʼs governancearound climate-related risks andopportunities.

A)

Describe the boardʼs oversight ofclimate-related risks andopportunities.

B)

Describe managementʼs role inassessing and managing climaterelated risks and opportunities.

Four themes

11 Recommended Disclosure

Disclose the actual and potential
impacts of climate-related risks andopportunities on the organizationʼsbusinesses, strategy, and financial
planning where such information ismaterial.

Risk Management

Disclose how the organization
identifies, assesses, and manages
climate-related risks.

A)

Describe the organizationʼs processes
for identifying and assessing climaterelated risks.

Metrics and Targets
Disclose the metrics and targets used
to assess and manage relevant
climate-related risks and opportunities
where such information is material.

A)

Disclose the metrics used by theorganization to assess climaterelated risks and opportunities in linewith its strategy and risk
management process.

B)

Disclose Scope 1, Scope 2, and, if
appropriate, Scope 3 greenhouse gas(GHG) emissions, and the relatedrisks.

A)

Describe the climate-related risks
and opportunities the organization
has identified over the short,medium, and long term.

B)

Describe the impact of climaterelated risks and opportunities on the B)
organizationʼs businesses, strategy,
and financial planning.

Describe the organizationʼs processes
for managing climate-related risks.

C)C)
Describe the resilience of theorganizationʼs strategy, taking into
consideration different climaterelated scenarios, including a 2°C or
lower scenario.

Describe how processes forC)
identifying, assessing, and managing
climate-related risks are integrated
into the organizationʼs overall risk
management.

Describe the targets used by theorganization to manage climaterelated risks and opportunities andperformance against targets.

Source: Final Report Recommendations of the Task Force on Climate-related Financial Disclosures, page 14, Figure 4, June 2017 https://assets.bbhub.io/company/sites/60/2021/10/FINAL-2017-TCFD-Report.pdf (accessed October
11, 2022)

What are seven “Cross-industry, Climate-Related Metric Categories”?
Cross-industry Metric Categoriesa) GHG Emissions (Scopes 1, 2, and 3)e) Capital Deploymentb) Transition Risksf) Internal Carbon Pricec) Physical Risksg) Remunerationd) Climate-Related Opportunities

11Question 10 (Financial & non-financial institutions)Regarding the 11 recommendations by TCFD, to what extent does your company currently disclose
information in terms of the 11 recommendations of TCFD in your publications (e.g., securities reports,
integrated reports, environmental reports, websites, etc.)?
Financial institutions (100 respondents)

Governance a)Governance a)Governanceb)b)
Governance

86%

3%
2%
0%
1%
3%7%2%2%

Strategya)a)Strategy

89%

2%7%
0%2%

94%

79%

Strategyb)b)
Strategy

Risk
Risk Management a)
managementa)
Risk
Risk Management b)
managementb)
Risk
Risk Management c)managementc)
Indicators andMetrics objectivesa)
and Targets a)

1% 13%

82%

4%6%3%
3%

84%

4% 8%2%
3%

12% 2%

8% 12% 3%
3%

70%

5%

17%

6%3%

82%

5% 9%2%
2%

80%

5% 9% 3%
2%

23%

9%1%

72%

6% 14% 5%3%

82%

1%11% 5%1%

75%

5% 12% 4%4%82%

3% 9% 4%2%

77%

6% 12% 2%
3%74%

5% 13% 5%3%

2%

40%

60%

0% 17%

7% 1%

80%

100%

■Disclosed ■Considered but not disclosed■Under consideration
disclosed



84%

7% 1%

75%
20%

2%6%
2%
3%

2% 14%

65%

Indicators andMetrics andTargets
targets
c) c)

88%

74%

2%9% 6%1%

76%

Indicators andMetrics andTargets
targetsb) b)

0%

1% 13% 4% 3%

72%Strategyc)c)
StrategyNon-financial institutions (321 respondents)

0%

20%

40%

■Not yet consideredReviewed
but willing todisclosein the futurebut
not disclosed

60%

80%

100%

■No plans to disclose

Among the items recommended by the TCFD, there were no items disclosed by less than 60% of respondents, and mostitems were disclosed by approximately 70% of respondents. Compared with last year's survey, the percentage of items
disclosed increased in many items.
Common among financial and non-financial institutions, strategies c on resilience including scenario analysis, wereshown to be lagging others.
For financial institutions, the item with the lowest score is risk management c (integration into overall risk management).
Non-financial institutions also showed a low score. This suggests the difficulty of integration in financial institutions that
already have sophisticated company-wide risk management systems.
12Question 11 (Financial & non-financial institutions)

What is your organizationʻs transition plan? Do you currently disclose your transition plan in your company's
externally publications (securities reports, integrated reports, environmental reports, websites, etc.)?

Non-financial institutions (321 respondents)

Financial institutions (100 respondents)

a. The transition plan isa. The transition plan isdisclosed separately from thedisclosed separately from the

4

TCFD disclosure

TCFD disclosureb. The transition plan is alsob. The transition plan is alsomentioned in the TCFD

38

mentioned in the TCFD

28

109

disclosure

disclosurec. The transition plan is not

68

disclosed
0

20

40

60
80
(Organization)c. The transition plan is not174

disclosed
0

50

100

150
200
(Organization) The largest number of respondents answered that they have not disclosed their transition plan.
 However, 30% of financial institutions and nearly 50% of non-financial institutions disclosed theirtransition plan, and most of the disclosure was by mentioning on the transition plan in their TCFD
disclosure.

13

Question 12 (Financial & non-financial institutions)Regarding the seven cross-industry metric categories recommended by TCFD, please indicate which metriccategories are currently disclosed in your companyʼs publications (e.g., securities reports, integrated reports,
environmental reports, websites, etc.)?



Non-financial institutions (321 respondents)

Financial institutions (100 respondents)
Scope1, 2a)Scope1, 2
Scope 3b)Scope 3)c)Migration
Transition
Risks
Risk

y

f)Invested
Capitalg)Internal

Carbon Price8%h)Compensat

Remuneration

ion

8%

17%

2%

20%

11% 2%

55%

11%

24%

6%4%

67%

2%

20%

9% 2%

56%

12%

21%

7%4%

1%

15%

22%

28%

17%

24%

24%

51%

4%
17%

32%

36%

22%

23%

39%

18%

11%

13%

34%

13%
9%

11%

24%

26%
26%

9% 5%

24%

17%

21%
18%

29%

0%
20%
40%
60%
80%
40%
60%
80%
100%
disclosed■Under consideration ■Not yet considered
Consideredbut
not disclosed■Disclosed ■Considered but not disclosed
but willing todisclosein the future ■No plans to disclose
0%





20%

6%4%

17%

65%

16%
6%

8%

9% 5%

1%

29%

Capital Deployment

64%

17%

50%

Opportunities

3%
4%
1%
3%

5%

Risk
e)Opportunit
Climate-related

89%

64%

d)PhysicalPhysical risks

Internal Carbon Price

4%
1%
1%
4%

90%

100%

Both financial and non-financial institutions demonstrate that disclosure of Scope 1 and 2 emissions is mostadvanced. As for Scope 3 emissions, 64% of both financial and non-financial institutions have responded (notehowever that no inquiries are made on categories). Compared to last year's survey, the percentage of disclosed
emissions has increased, especially in Scope 3.
Of the seven metrics, disclosure of capital allocation, internal carbon price, and remuneration has a low
disclosure rate in both financial and non-financial sectors, partly because these are new items. Further, many
companies currently do not plan to disclose remuneration.
14

Question 13 (Financial & non-financial institutions)To those undertaking scenario analysis, please describe your company's scenario analysis disclosure.
Financial institutions (96 respondents)
quantitative

70%

analysis
qualitative

6%

76%

analysis

0%

10%

20%

30%

0%5%

40%

■Disclosed ■Analyzed but disclosed
not disclosed ■Under analysis

6%

50%

60%

70%

■Not yet analyzed
but willingto disclosein the future
analyzed
but not
disclosed

15%

13%

80%

3%

6%

90%

100%

■No plans to analyze

Non-financial institutions (312 respondents)
quantitative

40%

analysis

19%

qualitative

23%

13%

84%

analysis

0%

10%

20%

30%

■Disclosed ■Analyzed but not disclosed■Under analysis
disclosed

40%

5%
50%

60%

70%

80%

4%

5% 4% 3%90%

100%

■Not yet analyzed but willingto disclose
the future■No plans to analyze
analyzedbutin notdisclosed About 80% of both financial and non-financial institutions disclosed qualitative analysis.
 While only 50% of financial institutions and 20% of non-financial institutions disclosed quantitative
analysis in last year's survey, 70% of financial institutions and 40% of non-financial institutions
disclosed it in this year's survey, indicating progress in disclosure status.
15Question 14 (Financial & non-financial institutions)

What were the benefits of endorsing and disclosing information to TCFD? Or what are the expected benefits?
Please answer something close to the situation in your company. (Multiple choice)Financial institutions (100 respondents)
a. Improving customer relationships (new customer acquisition,

Non-financial institutions (321 respondents)
114

39

awareness, differentiation, etc.)
b. Improving relationships with financial institutions, including investors

218

62

(Increase dialogue, improve evaluation, promote understanding, raise funds,
etc.)c. Changing and deepening internal strategies

167

56

(Business restructuring, risk management)d. Understanding our own climate-related risks and opportunities

217

76

Deepening internal understandinge. Nothing special

4

f. Other

6
0

19
5
50

100
(Organization)



0

100

200

300
(Organization)

While both financial institutions and non-financial institutions felt a wide range of benefits from supporting anddisclosing according to TCFD recommendations, the popular responses were “improving relationships withfinancial institutions, including investors” and “understanding of our own climate-related risks andopportunities, ” indicating that TCFD disclosure contributes to communication with investors and deepening
internal understanding.
16

Question 14 (Financial & non-financial institutions)

Based on the TCFD framework, the General Requirements for Climate-related Disclosures (S1) and Climaterelated Disclosures (S2) have been published with regard to the IFRS Sustainability Disclosure Standards,
which specify disclosure items in detail. Please answer how your company responds. (Select one)

Financial institutions (100 respondents)
1%
7%

Non-financial institutions (321 respondents)
3%

10%

4%
15%

32%

46%

36%

46%

■a.a.Has
or is prepared
to disclose
under IFRSStandards.
Hasdisclosed
been disclosed
or is readyfor disclosurein accordance■b. Under preparation to disclose under IFRS Standards.
with IFRS Sustainability Disclosure Standards■c. Considering responding to IFRS Standards
b. Is preparing for disclosure in accordance with IFRS
■d. Knew about IFRS Standards but has not given consideration■e.Sustainability
Did not knowDisclosure Standards

a. Hasdisclosed
or is readyfor disclosurein accordance■a.
Has been
disclosed
or is prepared
to disclose
under IFRSStandards.
■b.
Under
preparation
todisclose
under
IFRS
Standards.
with IFRS Sustainability Disclosure Standards■c. Considering responding to IFRS Standards
b. Is preparing for disclosure in accordance with IFRS
■d. Knew about IFRS Standards but has not given consideration
Sustainability
Disclosure Standards■e.
Did not know

About 20% of non-financial institutions have disclosed or are preparing to disclose in accordance with IFRS
sustainability disclosure standards, and just under 70% of non-financial institutions, including those considering
measures to be taken.
On the other hand, the majority of financial institutions have not yet considered measures to be taken.

17Question 16 (Financial Institutions)

What medium does your company use to obtain disclosure information about investee companies? (Multiple
choice)Financial institutions (100 respondents)
65

a. Annual Securities Report72

b. Consolidated Reportc. Environmental Report /60

Sustainability Report

79d. Corporate website
e. External ESG information vendors (ESG ratings,

45

rating agencies, CSR-related magazines, etc.)

20

f. Others

0

10

20

30

40

50

60

70

80

90

(Organization)

It has become clear that financial institutions utilize information from various media such as corporate websites,
integrated reports, sustainability reports, and securities reports.
18

Question 17 (Financial Institutions)

Please respond to the status of utilization of information based on TCFD disclosed by companies included inyour companyʼs portfolios. (Multiple choice)Financial institutions (100 respondents)
Use itto make decisions
on investments
and loansa. Utilize to a.
makedecisionson investments
and loans(integration suchas valuation
anddue diligence)(Integrationsuch
as corporate
valuation and…

31

b. Select (screen) investment and loan companies

b. Utilize for selection (screening) of investee companies.

27

Utilize as an elementc. Utilize (engagement)for dialogue (engagement)with borrowerc. Utilize for dialogue
withinvestees/recipients of loans. companies

d. Utilize under consideration

50

20

d. Discussing ways to utilize

e. Not utilizing due to shortage of disclosure

16

e. Not utilized at present due to limited disclosure

f. Other14

f. Others

0

10

20

30

40

50

60

(Organization) The highest percentage of responses was for engagement, followed by integration and screening,suggesting that TCFD disclosure information is being used in more decision-useful areas.

19Question 18 (Financial Institutions)Regarding your companyʻs engagement with financed companies on climate change issues: what aspects ofengagement does your company focus on? (Multiple choice)Financial institutions (100 respondents)a. Consistency between materiality judgment and business…
a. Materiality determination and alignment with corporate
strategy and management
b. Reflection
product development
based
b. Incorporation
ofof
climate-relatedrisks andstrategies
opportunities
toon…
operations such as product development strategy.
Management's
foresight
and awarenessof climatec. c.
Foresight
and depthof awarenessof management
onchange
issues relating to climate change.
d. Accuracyof understanding
impactcorporate
valued. Accuracyof understanding
thetheimpacton on
corporate
values.

44
48
40
35

of TCFDefforts
the field levele. Understandinge.ofPenetration
TCFD-related
activities
on to
site.

24

f. Proactivity
toward information
disclosure
and willingness…
f. Willingness
of information
disclosureand engagement.
g. other51

g. Others

31
0

10

20

30

40

50

60

(Organization)

 As options for questioning the attitude of the company as a whole, it was shown that while materiality,reflection on the company's own business, and willingness to engage (options a, b, f) were common,
there was relatively little interest in penetration on site (option e).
20

Question 19 (Financial Institutions)

Please indicate any concerns your company may have with respect to conducting climate-change related
engagement with financed companies. (Multiple choice)Financial institutions (100 respondents)
a. Difference in recognitionof theissue among
companies
a. Between
companies,
betweeninternal
and departments within a company.
departments,…

59

b. Regarding
medium- to long-term
b. Difficulty of reachinga commonthe
understandingon
medium- to long-term viewpoints.perspective,…

40c. Becauseof the andvariety
disclosure
media,c. Burden on time
consumption
costofdue
to the variety
of disclosure media.
it takes time and costs to collect and analyze

52

d. The medium- to long-term managementd. Inconsistency between corporate mid- to long-term
andvision
long-term
visionof the…
management plan orstrategy
long-termand ESGactivities.
e. Other.

22

e. Others

19
0





10

20

30

40

50
60
70
(Organization)

It was suggested that there is a difference in recognition of the issue among companies as well as between
departments of companies subjected to engagement. (option a).
The time and cost of collecting and analyzing information were mentioned as issues on the part of financial
institutions. It was suggested that this was due in part to the speed of changes in the situation and thediversification of media such as websites (option c).
Compared to last year's survey, the number of respondents who pointed out inconsistencies with medium- andlong-term management strategies and long-term visions decreased, suggesting that disclosures are promoting
climate change responses aligned with business strategies (option d).
21

Question 16 (Non-Financial Institutions)

Please indicate the frequency with which climate change information disclosure is discussed in dialogue(engagement) with financial institutions, e.g., investors. (select one)
Non-Financial Institutions (321 respondents)

6%

■a.
about
a. About
onceoncea yeara year12%■b. 2-4 times a year

16%b. About twice to four■c 5 or more times a year
times a year31%

■d. not raisedc. About five times a34%

year doesor more■e.
not engage withfinancial institutions->To Question 17 30% of companies engaged in “2 - 4 times a year" (option a) and "5 or more times a year" (option c)dialogue. This indicates that engagement continues to be active.
 On the other hand, there are a certain number of responses to “not raised ” (option d) and“does notengage with financial institutions ” (option e), suggesting that engagement varies depending onmateriality and company size.
22

Question 17 (Non-Financial Institutions)

For respondents who answered a, b and c in Question 16: what questions were asked during the dialogue(engagement) with financial institutions? (Multiple choice)Non-financial institutions (244 respondents)
a. Impact ofa.climate
on business.
Impactchangeof climatechange on business

156

b. Relevance to environmental vision and mediumb. business
Relevanceof environmental vision and…
to long-term
strategy.

155c. Governanceinternalcollaboration systemc. Governanceand andinternal
cooperation.

100

d. Management-level commitment.
d. Management commitment
e. Penetration on site.

87

e. On-site penetration

30

f. Actual and planned introduction of renewableenergy. f. Results and plans for the introduction of…

123

g. Contribution
to the environment
through through…
g. Contributing
to the environment
products and services.
h. Setting climate change targets
h. Target setting on climate change.
i. Other.

i. Others

116
153
9

0

20

40

60

80

100 120 140 160 180(Organization) The impact of climate change on business, environmental vision, and the setting of climate changetargets (options a, b, h) were shown to be topics of greatest interest to non-financial institutions as awhole.
 The response to the situation of penetration on-site (option e) was low, suggesting that it is an issue
for the future.

23

Questions 20, 21 and 22 (Financial Institutions)[Question 20] Does your company analyze the GHG emissions (financed emissions) from your companyʼs
portfolio and set targets? (select one)[Question 21] For respondents who answered option a in Question 20 (those who have set targeted values):
please indicate the year which your company sets the targeted value. (select one)[Question 22] For respondents who answered option a to Question 20: please explain your companyʼstargets. (free description)
Financial institutions (100 respondents)■a. Have set targets after
a. After conducting theanalysis■b.analysis:
Have undertaken analysis
but Thehavetarget
not settargetsvalue
is set.
■c Currently under analysis
b. The analysis is done,■d.butNo plans to undertake
analysisthe target value is not
set.

■e. Other

Financial institutions (38 respondents)
0%

9%

0%

13%

9%
39%
25%
18%

87%
=57%

a. Two targets for 2030 and 2050

■a. Have set targets foe 2030
havebeen set.
and2050■b. Have set targets for 2050
b. Weand
have
only the target
for
only,
is setconsideringor willconsider2030 targets
2050,
■c
Have
set targets
foris 2050
andthe target
for 2030
or will be
only,
but
no
plans
to
considerc. We haveset only the target for
under
consideration.
2030
targets2050.
■d. No targets aimed at a
We do not plan to consider the
specificyear
target for 2030

 More than half of the financial institutions analyzed the GHG emissions of their investment and loan
portfolios, and 40% of them set targets.
 Of the financial institutions that set targets, 90% set targets for both 2030 and 2050. While thetargets common for 2050 is to achieve carbon neutrality, the targets for 2030 varied by industry, fromcommitting to reductions on a per-unit basis to a 46% reduction in the overall portfolio.
 Some financial institutions were considering targets for 2030, indicating that more financial institutions
are likely to set and disclose 2030 targets for financial emissions.
24

Question 18 (Non-Financial Institutions)Transition financing, which supports companies that are promoting a transition toward decarbonization, is
gaining momentum. What is your company's perception of transition financing? (Select one)
Non-Financial Institutions (321 respondents)
9%

35%

14%

31%

10%
a. Not of particular interestb. Interested and would like to consider it in the futurec. Interested and specifically considering it
d. Insufficient information to make a decisione. Others On the issue of transition finance, just under half of the companies (options b, c) were interested.
 On the other hand, the majority of respondents answered that they did not have sufficient information(option d), suggesting the possibility of polarization of needs as well as the need for continued
education.
25