FY2022 TCFD Consortium
Member Survey Result

November 2022
TCFD Consortium

List of questions (1/2)
Genaral questions
Financial institution

Question

Non-financial institution

Question 3 What market segment does your company belong to? (Select one)
Question 4 What motivated your company 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 yourcompany utilize to disclose information based on TCFD recommendations? (Multiple choice)For respondents who chose option a. to e. in Question 5 (those who have already disclosed). Please describe your company’s views on discussions currently

Question 7 underway which support including description relating to general sustainability disclosure issues and climate change topics in annual security reports. (Freedescription)

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 company’s views on whatkind of personnel (e.g., directors, managers, professionals in charge of sustainability topics) are lacking. (Free description)

Question
10This question is about the 11 reccomendations by TCFD. To what extent does your company currently disclose information in terms of the 11 recommendations of
TCFD on external reports (e.g., security reports, integrated reports, environmental reports, websites, etc.)?

Question
11

This questioin is about the seven cross-industry metric categories recommended by TCFD. Please indicate which metric categories are currently disclosed in yourcompany’s disclosure reports (e.g., securities reports, integrated reports, environmental reports, websites, etc.)?

Question
12This question is about scenario analysis in your company. Please describe your company's scenario analysis disclosure.

Question
13

What are the benefits of joining TCFD and disclosing information? What benefits does your company expect? Please provide an answer that is close to thesituation in your company. (Multiple choice)

Question
14

Based on the TCFD disclosure framework, general requirements regarding IFRS sustainability disclosure standards that specify detailed items of climate-related
disclosure are currently being considered. Please indicate how your company is responding to the standards. (select one)

*The results of the analysis of questions in red are only disclosed and available for TCFD consortium member companies.

1List of questions (2/2)
Thematic questions
Theme

Question

Financial institution

Non-financial institution

How does your company view the introduction of carbon pricing (carbon taxes,
Does your company procure certificates or carbon credits as part of its business
Questionemissions trading, credit trading, border adjustment measures, etc.) for longactivities or as a way to reduce emissions? (select one)15
term decarbonization? (Free description)
Use of
How does your company feel about companies disclosing the status of
Certificates Question procurement of certificates and credits as part of disclosing long-term
16
and Carbon
decarbonization strategy? (select one)
Credits

IssuesRelated to
Engagement

For respondents who answered a. or b. in Question 15 (those who haveprocured or are planning to procure certificates or carbon credits): Please provide
us with the names of certificates and carbon credits that you have alreadyprocured or are considering procuring. (Multiple choice) * Optional

What information does your company wish to be disclosed in your company
Question
regarding the status of procurement of certificates and carbon credits?
17(Multiple choice)For respondents who answered option a. or b. in Question 15 (those who haveprocured or are planning to procure certificates or carbon credits) : Pleaseindicate the purpose for which your company has already obtained or are
considering obtaining a certificate or credit. (Multiple choice)

Question What medium does your company use to obtain disclosure information about
investee companies? (Multiple choice)18

For respondents who answered option e. (for dealing with domestic andinternational frameworks) in Question 17: what specific framework does yourcompany aim to address? (Please specify e.g., CORSIA compliance, Act on
Promotion of Global Warming Countermeasures reporting compliance, GX League
compliance, etc.) (Free statement)

How does your company view the introduction of carbon pricing (carbon taxes,
Question Please respond to the status of utilization of information based on TCFD
emissions trading, credit trading, border adjustment measures, etc.) for longdisclosed by companies included in your company’s portfolios. (Multiple choice)19
term decarbonization? (Free description)
With respect to your company‘s engagement with financed companies on
Questionclimate change issues: what aspects of engagement does your company focus
20
on? (Multiple choice)

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

Please respond to any concerns your company may have with respect toQuestion
conducting climate-change related engagement with financed companies.
21(Multiple choice)For respondents who answered a., b. and c. in Question 20: what questions
were asked during the dialogue (engagement) with financial institutions?
(Multiple choice)

Question Does your company analyze the GHG emissions (financed emissions) fromyour company’s portfolio and set targets? (select one)
22

There is a growing trend on transition finance, which aims to support companies
that are promoting a shift toward decarbonization. What is your company's
perception on transition finance? (select one)For respondents who answered option a in Question 22 (those who have set
Decarboniza Question targeted values): please indicate the year which your company sets the23-tiontargeted value. (select one)
Efforts
Question For respondents who answered option a to Question 22: please explain yourcompany’s targets. (free description)
24
Question Please feel free to write down any activities or requests your company
considers should be addressed by the TCFD Consortium. (Free description)
25

Please feel free to write down any activities or requests your company considers
should be addressed by the TCFD Consortium. (Free description)*Red frames indicate the coverage area of each theme.
** The results of the analysis of questions in red are only
disclosed and available for TCFD consortium member companies.

2

Summery of Survey
 Of the total 681 TCFD consortium members, 386 responded to the questionnaire(The response rate was 56.7%. Questionnaire period: August 31, 2022, toSeptember 26).
 Of the 166 financial institutions, 97 responded to the questionnaire (response
rate: 58.4%).
 Of the 515 non-financial institutions, 289 responded to the questionnaire(response rate: 56.1%).


211 institutions (58.6%) responded to the previous questionnaire conducted in June 2021.

Questionnaire response status
Total

Financial

Non-financial

Number of members of TCFD
Consortium

681

166

515

Number of responses to the survey

386

97

289

Response rate

56.7%

58.4%

56.1%
3

Summery of Survey Results (1)Disclosure of Climate-related Information
 The majority of financial and non-financial institutions answered that their motivation for joining the TCFD consortium
was to gather information and understand trends. (Question 4)
 Concerning the timing of disclosure, no. of non-financial institutions in particular, which have begun to disclose
information rose sharply since 2021, triggered by the revision of the Corporate Governance Code. (Question 5)
 As to disclosure media, the survey result shows that the company's website and integrated reports are the ones
used mostly, and disclosure in security reports has been increasing. (Questions 6 and 7)
 Challenges for companies to cope with TCFD disclosures are; insufficient analysis in specialized areas like climate
scenarios and a lack of human resources and organizational accommodation. (Question 8)
 None of the TCDFD 11 recommendations had a disclosure ratio of less than 50%; more than 40% ofcompanies disclosed all 11 recommendations. It is assumed that the reason of high response rate is that highly
motivated companies tended to respond to the survey. (Question 10) As for scenario analysis, this survey shows that
70% of all non-financial companies conduct qualitative analysis while only 20% conduct quantitative
one. (Question 12)
 Concerning the seven matric categories proposed by TCFD as cross-industry indicators, the progress made is mostevident in identifying and disclosing scope 1 and 2 emissions; about half of financial and non-financial institutions haveaddressed scope 3 emissions. On the other hand, as capital deployment, internal carbon pricing (ICP), andremuneration are new items, companies disclosing these categories currently have been few. (Question 11)
 As to the merits of TCFD disclosure, many respondents chose "better internal understanding of company's
climate-related risks and opportunities" (option d), indicating that TCFD disclosure contributes to a better
understanding of climate-related risks and opportunities of disclosing companies. (Question 13)
 The awareness of IFRS sustainability disclosure standards is high among both financial and non-financial
institutions. (Question 14)4

Summery of Survey Results (2)Regarding Carbon Credits: The survey result shows that non-financial institutions widely recognized certificates and credits as a means of GHG
emissions reduction, suggesting that they are mainly used to reduce scope 2 emissions through renewable energy
certificates. (Non-financial institutions Questions 15, 16, and 17)
 Many financial institutions are aware of the usefulness of certificates; therefore, they need information such as
the amount of credit and the type of projects to be disclosed. The survey also shows that they will need moredetailed information as the rules develop in the future. (Financial institutions Questions 16, 17)
Regarding Engagement: As to the use of disclosure information, the survey result shows that financial institutions have been increasingly
utilizing TCFD disclosure information in a decision-useful way; engagement, screening, and integration have been
increasing. (Financial institutions Questions 18, 19, 20, 21)
 For non-financial institutions, there was an increase in responses of both "not discussed" and “about five times a year
or more,“ suggesting that engagement is becoming more focused-based and layered. The survey also points out thata further "penetration into the organization (on climate-related issues)" will be a future challenge for nonfinancial institutions in dialogue with financial institutions. (Non-financial institutions Questions 20, 21)
Regarding Decarbonization Efforts:
 A little less than half of responding non-financial institutions have an interest in transition finance in diverse industries,
showing that interest in transition finance continues to be high. (Non-financial institution question 22)
 About one-third of responding financial institutions have already set targets based on analyzing GHG emissions(financed emissions) from their portfolios; two-thirds of whom have set targets for 2030 as well as 2050.
 Furthermore, the survey also shows that the number of financial institutions setting and disclosing such targets
will increase in the future. (Financial institutions Questions 22, 23, 24)

5

Question 3 (Financial & non-financial institutions)

What market segment does your company belong to? (Select one)
Financial institutions (97 respondents)

0%
0%
2%

19%



8%

87%

3%
1%

a. prime market
c. growth market
e. unlisted



3%

55%

23%

0%

Non-financial institutions (289 respondents)

b. standard market
d. overseas market
f. Othera. prime market
c. growth market
e. unlistedb. standard market
d. overseas market
f. Other

While a majority of financial institutions are listed in the prime market, less than 90% of non-financial
institutions are lised in the prime market. A large proportion of financial institutions are unlisted; these unlistedcompanies are mainly in the form of subsidiaries, such as asset management companies.
The standard and growth markets account for around 2% of both responding financial and non-financial
institutions.
6

Question 4 (Financial & non-financial institutions)

What motivated your company to join the TCFD Consortium? (Multiple choice)Non-financial institutions (289 respondents)

Financial institutions (97 respondents)a. Utilizing as PR opportunity for thecompany's disclosure efforts

a. Utilizing as PR opportunity for the company's

31

b. Gathering information on activities of othercompanies in the same industry

b. Gathering information on activities of other56
74

d. Understanding international TCFD-related
trends75

e. Gathering information about advanced TCFD
initiatives in Japan and abroad

77

c. Gathering information about specific disclosured. Understanding international TCFD-related

221

trendse. Gathering information about advanced TCFD

243

initiatives in Japan and abroadf. Sharing infomation about TCFD-related topics

81

with other companies and financial institutions
g. Utilizing as a venue for exchanging ideas or30

47

dialog with other companies and financial
institutions

1
0

6

h. Other

10

20

30

40

50

60

70

80

90

(respondents)242

and utilization methods

42

h. Other192

companies in the same industry

c. Gathering information about specificdisclosure and utilization methods

f. Sharing infomation about TCFD-related
topics with other companies and financial
institutions
g. Utilizing as a venue for exchanging ideas or
dialog with other companies and financial
institutions

146

disclosure efforts

050

100 150 200 250 300(respondents)

Both financial and non-financial institutions tended to choose options c to e (information gathering andunderstanding trends).
The main difference between financial and non-financial institutions are that financial institutions tended to
expect exchange opinions with other companies (options f and g), while non-financial institutions tended to
expect utilizing information for disclosure PR purposes (option a).
7

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 (289 respondents)

Financial institutions (97 respondents)
a. Prior to fiscal year 2018a. Prior to fiscal year 20187

(disclosure: 4 years or more)
b. FY 2019 (Year 3 of disclosure)17

b. FY 2019 (Year 3 of disclosure)c. FY 2020 (Year 2 of disclosure)17

c. FY 2020 (Year 2 of disclosure)29

d. FY 2021 (Year 1 of disclosure)f. Next fiscal year and beyond (from

0



97

f. Next fiscal year and beyond (from29fiscal 2023)

6

g. Other

10

20

30

40

(respondents)70

e. This fiscal year (2022)

2

g. Other42

d. FY 2021 (Year 1 of disclosure)

6

fiscal 2023)

35

Go To Question 6

19

e. This fiscal year (2022)

10(disclosure: 4 years or more)

0

20

40

60

80

100 120(respondents)

The survey shows that non-financial institutions have experienced a sharp increase in disclosure since 2021,
triggered by the revision of the Corporate Governance Code.
In financial institutions, TCFD disclosure was first implemented by major institutions such as banks, securities
companies, life and non-life insurance companies, and asset management companies. Recently, regional banks
have begun TCFD disclosure in accordance with the revision of Corporate Governance Code.

8

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 institution

Non-financial institution

Security report

Security report

Integrated report

Integrated report

Environmental
Report/Sustainability Report

Environmental
Report/Sustainability ReportCompany Website

Company Website

Other

Other

FY2022(89 respondents)

FY2021(57 respondents)
FY 2020

FY2020(22 respondents)
FY 2021

FY2022(254 respondents)

FY2021(154 respondents)
FY 2020

FY 2022

FY2020(64 respondents)
FY 2021

FY 2022

Security report

1

1

14

Security report

9

19

82

integrated report

13

18

50

integrated report

44

67

160

38

44

84

38

61

208

Environmental Report/Sustainability
Report91130

Environmental Report/Sustainability
Reportcompany website

13

22

71

company website

Other

7

15

21

Other

4

8

28

Number of respondents

22

57

89

Number of respondents

64

154

254




The survey also showed that the use of the company website is increasing. It also indicated that companies in the firstyear of disclosure are using the website for their disclosures. On the other hand, the utilization rate of integrated reports
has not changed much over the past three years at around 60%.
Time-series analysis showed a sharp increase in both response ratio and no. of respondents regarding the use of
security reports, of both of financial and non-financial institutions, for climate-related financial information. The number
using security reports is expected to increase further if the law on non-financial information disclosure is amended.
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 (289 respondents)

Financial institutions (97 respondents)
a. Lack of organizational accommodationb. Insufficient analysis of specialized areasc. No penetration of TCFD disclosure intod. A shortfall of information and0d. A shortfall of information and

129

7e. No particular challenges

20

30

f. Other14

f. Other155

knowledge relating to TCFD disclosure2e. No particular challenges

212such as climate scenarios

the entire company

44knowledge relating to TCFD disclosureb. Insufficient analysis of specialized areasc. No penetration of TCFD disclosure into36

the entire company

151

and personnel for disclosures

71

such as climate scenarios

a. Lack of organizational accommodation49

and personnel for disclosures

40

60

80

(respondents)

0

50

100

150

200

250

(respondents)

A majority of financial and non-financial institutions expressed the opinion that sufficient analysis had not been
done in specialized areas like climate scenarios to further enhance the quality of TCFD disclosure.
Although financial institutions have more awareness of TCFD disclosure than non-financial institutions (option c),
the survey highlighted that the lack of organizational accommodation and human resources for their disclosures
is a common issue for financial and non-financial institutions.
10Questions 10 and 11 (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.
What are the TCFD 11 Disclosure Recommendations?
TCFD four core elements

Governance

StrategyDisclose the organization’s governancearound climaterelated risks andopportunities.

A)

Describe the board’s oversight ofclimate-related risks andopportunities.

B)

Describe management’s role inassessing and managing climaterelated risks and opportunities.

Objectives of the core elements

Eleven Disclosure Recomendations

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

Risk Management

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

A)

Describe the organization’s 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 climaterelatedrisks and opportunities in line with 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 limaterelatedB)risks and opportunities on theorganization’s businesses, strategy,
and financial planning.

Describe the organization’s processes
for managing climate-related risks.

C)

Describe the resilience of theC)organization’s 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 organization’s 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 (Scope 1, 2, and 3)e) Capital Deploymentb) Transition Risksf) Internal Carbon Pricesc) Physical Risksg) Remunerationd) Climate-Related Opportunities

11Question 10 (Financial & non-financial institutions)This question is about the 11 reccomendations by TCFD. To what extent does your company currently
disclose information in terms of the 11 recommendations of TCFD on external reports (e.g., security reports,
integrated reports, environmental reports, websites, etc.)?
Financial institutions (97 respondents)
0%4%4% 0%87%

Governance a)74%

Strategy a)

73%

0%

Strategy b)

70%

3%

73%

5%

13%

7%

2%

19%

0%0%

75%

3%

13%

6%

2%

18%

0%0%

62%

5%

7%

2%

0%0%

62%

3%

10%

2%

26%

1%

55%

3% 10% 4% 2%

80%

0%0%

14%

4%

Governance b)Strategy c)

Non-financial institutions (289 respondents)

24%
22%

Risk Management a)

65%

2%

23%

0%0%

73%

4%

13%

7%

2%

Risk Management b)

66%

1%

23%

0%0%

72%

4%

13%

8%

2%

18%

10%

3%

31%

2%

54%

Risk Management c)

0%0%

63%

6%

Matrics and Targets a)

71%

1%

16%

0%0%

66%

4%

18%

9%

2%

Matrics and Targets b)

72%

4%

15%

0%0%

65%

6%

21%

6%

2%

0%0%

62%

10%

2%

0%

Disclosed





20%

40%

considered but not disclosed

22%

0%

66%

Matrics and Targets c)

60%

80%

Under review and not disclosed

100%

0%

10%

20%

30%

20%

5%
40%

50%

Not considered, but will disclose in the future

60%

70%

80%

90%

100%

No schedule for disclosure

None of the disclosure recommendations by TCFD had a response ratio of 50% or less. This is where the result differs from thisyear's TCFD status report; one possible explanation for this discrepancy is that the population responding to this survey includes alarge number of highly motivated companies to TCFD disclosure, therefore responding positively to the survey. The survey also
showed that both financial and non-financial institutions showed a lower rate of response to strategy c), which deals with resilience,
including scenario analysis.
The response rate for risk management c), which requires integration into risk management, was the lowest among financial
institutions, while the response rate also remained relatively low among non-financial institutions. This result suggests that evenfinancial institutions equipped with advanced company-wide risk management systems face difficulty in this integration.

12

Question 10 Additional Analysis
This page shows a result of an analysis of the change in the responding number of recommendations overtime (years since first-year disclosure) in terms of 11 recommendations by TCFD.



Non-financial institutions (252 respondents)

Financial institutions (90 respondents)

Percentage of respondents disclosing fiveor fewer recommendations(44 institutions, 17.5%)

Percentage of respondents disclosing fiveor fewer recommendations(22 institutions, 24.4%)

Number of TCFD
recommendations
disclosed
11





Total

Year 4

Year 3

Year 2First Year

This fiscal
year

38

5

13

8

8

4

10

10

1

2

2

5

0

9

5

0

1

0

3

1

8

6

0

0

2

4

0

7

3

0

0

1

2

0

6

6

0

0

1

1

4

5

5

0

0

0

3

2

4

3

0

0

0

1

2

3

1

0

0

0

0

1

2

10

0

1

3

3

3

1

1

0

0

0

0

1

0

2

0

0

0

0

2

Total

90

6

17

17

30

20

Number of TCFD
recommendations
disclosed
11
10
9
8
7
6
5
4
3

Total

Year 4

Year 3

Year 2First Year

This fiscal
year

112
27
22
20
18
9
10
7
8

6
2
1
0
1
1
0
0
0

25
3
1
4
1
0
0
0
1

25
5
1
5
1
0
4
0
1

30
6
7
6
9
3
2
3
1

26
11
12
5
6
5
4
4
5

2

2

0

0

0

0

2

1
0
Total

0
17
252

0
0
11

0
0
35

0
0
42

0
2
69

0
15
95

The distribution of the number of disclosure recommendations of responding companies shows that 38 (42.2%) of financial
institutions and 112 (44.4%) of non-financial institutions disclose all 11 recommendations, representing more than 40% of thetotal survey population. (indicated by the red frame)
In terms of the number of years since first disclosure, most of the companies which have addressed TCFD disclosures for morethan three years, both financial and non-financial institutions in common, disclose more than nine recommendations. The result
indicating a high level of awareness to TCFD among early adopters. (see red frames at both tables).
Among companies disclosing TCFD information for the current fiscal year, the total number of companies disclosing all 11
recommendations among non-financial and financial institutions accounts for slightly less than 10% (4 financial institutions, 26
non-financial institutions, 30 institutions in total). On the other hand, a little less than 20% (22 financial and 44 non-financial
institutions, a total of 66 institutions) of responding companies disclosed five or fewer recommendations on a total basis.

13

Question 11 (Financial & non-financial institutions)This questioin is about the seven cross-industry metric categories recommended by TCFD. Please indicate
which metric categories are currently disclosed in your company’s disclosure reports (e.g., security reports,
integrated reports, environmental reports, websites, etc.)?
Non-financial institutions (289 respondents)

Financial institutions (97 respondents)
3% 9% 0%0%85%a) Scope 1, 2

36%

5%

43%

b) Scope 3

5% 6% 3%

84%

0%
0%

22%

7%

59%

2%

8% 4%

c) Transition Risks

51%

6%

32%

0%
0%

48%

8%

28%

12%

4%

d) Physical risks

53%

5%

31%

0%
0%

48%

9%

28%

12%

3%

0%

46%

13%

4%

e) Climate-relatedf) Capitalg) Internal Carbon

12%h) Remuneration0%

Disclosed





3%

7%

Price

20%

0%

30%

3%

23%

Deployment

37%

3%

39%

Opportunities

0%

26%
19%

5%
40%

Considered but not disclosed

60%

13%

80%

Under review and not disclosed

0%
100%

12%
0%

29%

40%

8%

6%
20%

30%

25%

11%

18%

29%

9%

15%

33%

24%
40%

Not considered, but will disclose in the future

60%

10%

25%
80%

100%

No schedule for disclosure

Of the seven cross-industry metric categories recommended in both financial and non-financial institutions,scope 1 and 2 emissions were found to be the most advanced in terms of measurement and disclosure. Scope 3
emissions were also found to be disclosed by 43% of financial institutions and 59% of non-financial institutions(note that disclosure of any of the Scope 3 categories was counted).
Of the seven cross-industry metric categories, disclosure of capital deployment, internal carbon price, andremuneration received low response rates in both financial and non-financial institutions, partly because thesecategories are new; in particular, many companies have no plans to disclose remuneration.
14

Question 12 (Financial & non-financial institutions)This question is about scenario analysis in your company. Please describe your company's scenario analysis
disclosure.
Financial institutions (90 respondents)

Quantitative

51%

analysis

9%

Qualitative

34%

72%

analysis0%Disclosed

10%

20%

30%

Not disclosed (but analyzed)

1%
40%

50%

60%

Not disclosed (under analysis)

6%

21%

70%

80%

6%
90%

100%

Undisclosed (no analysis planned)

Non-financial institutions (276 respondents)
Quantitative

22%

analysis

20%

Qualitative

0%





25%

75%

analysisDisclosed

31%

10%

20%

Not disclosed (but analyzed)

30%

40%

Not disclosed (under analysis)

4%
50%

60%

70%

Undisclosed (no analysis planned)

2%

9%
80%

11%
90%

1%
100%

Not scheduled for analysis

Among non-financial institutions, 70% of respondents perform qualitative analysis, while only 20% conduct
quantitative analysis. One reason for this result is that many non-financial institutions ‘ disclosures have been
responses to the Corporate Governance Code; there was only a short time for quantitative analysis to be
performed since they started disclosure.
Concerning quantitative analysis, more than 90% of financial institutions and more than 70% of non-financial
institutions are companies that have already conducted or are conducting the analysis and will disclose suchinformation in the future.
15

Question 13 (Financial & non-financial institutions)

What are the benefits of joining TCFD and disclosing information? What benefits does your company expect?
Please provide an answer that is close to the situation in your company. (Multiple choice)Non-financial institutions (289 respondents)

Financial institutions (97 respondents)

a. Improving customer relationships

a. Improving customer relationships
differentiation)b. Enhancing relationships with financial

differentiation)b. Enhancing relationships with financial

53

institutions, including investorsc. Changing and deepening own strategy

d. Deepening internal understanding about

c. Changing and deepening own strategy

d. Deepening internal understanding about

1e. None in particularf. Other2

f. Other

40

60

80

209

climate-related risks and opportunities

e. None in particular

20

159

(business restructuring, risk management)

80

climate-related risks and opportunities

0

197

institutions, including investors

60(business restructuring, risk management)

110(acquiring new customers, awareness,

42(acquiring new customers, awareness,

100(respondents)

12

9

0

50

100

150

200

250

(respondents)

Both financial and non-financial institutions see a wide range of benefits from joining TCFD and disclosing
financial information based on its recommendations; in particular, “developing an internal understanding of thecompany‘s climate-related risks and opportunities” (option d) gathered votes, indicating that TCFD disclosure has
contributed to developing an understanding of climate-related risks and opportunities.
Non-financial institutions see merits in not only improving the relationship between the investor and the investee
but also increasing customer awareness and recognition (option a).
16Question 13 Time Series Analysis
What are the benefits of joining TCFD and disclosing information? What benefits does your company expect?
Please provide an answer that is close to the situation in your company. (Multiple choice)Non-financial institution

Financial institution
0%

20%

40%

b. Enhancing
relationships with financial
投資家を含む金融機関等との関係向上
institutions, including investors（対話増加、評価向上など）

33%

c. Changing anddeepening own
自社戦略の変更・深耕
strategy (business restructuring, risk
（ビジネス再構築、リスク管理）
management)

35%

d. Deepening internal understanding
自社の気候関連リスクと機会についてのabout climate-related risks and
社内の理解深耕
opportunities
e. None in particular
特になし

f. None in particular
その他

2%
4%
12%

FY20212021年度（57機関）(57 respondents)

12%

40%
26%

c. Changing and deepening own

management)

FY20202020年度（52機関）(52 respondents)

38%

55%
53%
72%
76%
68%

d. Deepening internal understanding

自社の気候関連リスクと機会についての社内の理解深耕
about climate-related risks andopportunities

特になし
e. None in particular

4%
6%
6%

その他
f. None in particular

3%
3%
10%

FY2022
2022年度（289機関）(289 respondents)

80%

68%
66%
59%

strategy (business restructuring, risk
自社戦略の変更・深耕（ビジネス再構築、リスク管理）

82%
75%

60%

38%

投資家を含む金融機関等との関係向上（対話増加、評b.
Enhancing relationships with financial
institutions,
including investors
価向上など）

62%

62%
1%
2%
8%

(97 respondents)

a. Improving customer relationships(acquiring new customers, awareness,
化等）
differentiation)

20%

顧客との関係向上（新規顧客獲得、認知度向上、差別

55%
54%
47%

0%

80% 100%

43%
42%
31%

a. Improving
customer relationships
顧客との関係向上（新規顧客獲得、(acquiring new 認知度向上、差別化等）
customers, awareness,differentiation)

FY2022
2022年度（97機関）60%

FY20212021年度（154機関）(154 respondents)

FY20202020年度（124機関）(124 respondents)(Note)In the time-series comparison, it is noted that each year a different group of respondents is compared on a different basis.



It is apparent that many companies recognize the benefits of joining TCFD and its disclosure from the survey
result.
In particular, there has been a marked increase in “improve customer relationships" among non-financial
institutions. Through TCFD disclosure, the survey result indicates that disclosing companies are re-discovering“opportunities”.
17Question 14 (Financial & non-financial institutions)

Based on the TCFD disclosure framework, general requirements regarding IFRS sustainability disclosure
standards that specify detailed items of climate-related disclosure are currently being considered. Pleaseindicate how your company is responding to the standards. (select one)
Financial institutions (97 respondents)

Non-financial institutions (289 respondents)

6%

11%
30%

64%



36%

53%

a. Under consideration on IFRS Sustainability Disclosure Standards

a. Under consideration on IFRS Sustainability Disclosure Standards

b. Recognized, but not yet considered how to deal with itb. Recognized, but not yet considered how to deal with itc. No recognitionc. No recognition

Although the IFRS Sustainability Disclosure Standards were at the exposure draft stage at the time of the survey
conducted, both financial and non-financial institutions indicated that they are aware of the IFRS Sustainability
Disclosure Standards.
18

Use of Certificates andCarbon Credits

19Question 15 (Non-Financial Institutions)

Does your company procure certificates or carbon credits as part of its business activities or as a way to
reduce emissions? (select one)Non-financial institutions (289 respondents)
3%

22%
38%

36%

Go To Questions 16 and 17 (Non-Financial Institutions)a. have already procuredb. To be considered in the futurec. No procurement plannedd. Other

The combined total of “already procured” and “To be considered in the future” (options a, b) reached about 3/4,
indicating that certificates and credits are widely recognized as a means of reducing GHG emissions.
20

Question 16 (Non-Financial Institutions)

For respondents who answered a. or b. in Question 15 (those who have procured or are planning to procure
certificates or carbon credits): Please provide us with the names of certificates and carbon credits that you
have already procured or are considering procuring. (Multiple choice) * Optional
Non-financial institutions (194 respondents)
a. J-Credit

90b. JCM (Bilateral Credit System)

17c. CDM (Clean Development Mechanism)

12

d. Overseas Voluntary Credit (VCS, GS, etc.)

27

e. Non-fossil certificate

127

f. Green Power Certificate

90

g. Foreign Power Certificates (RECs, I-RCEs, etc.)43h. Already offset electricity, gas, etc. (renewable energy power menu, etc.)

76

i. Other

7
0

20

40

60

80

100

120

140

(respondents)

Non-fossil certificates, J-Credit, and green power certificates were the majority of the types of certificates andcarbon credits procured. This result suggests that the purpose of procuring the certificates and credits is to
reduce the emission factor of electricity and scope 2 emissions in a manner consistent with SBT.
21

Question 17 (Non-Financial Institutions)

For respondents who answered option a. or b. in Question 15 (those who have procured or are planning toprocure certificates or carbon credits) : Please indicate the purpose for which your company has alreadyobtained or are considering obtaining a certificate or credit. (Multiple choice)Non-financial institutions (189 respondents)
a. To reduce our own scope 1 and scope 2 emissions

168

b. To reduce its own Scope 3 emissions

45

c. To offset own products and services48

d. To cope with requests from business partners (e.g., from37

manufacturers to suppliers)
e. To respond to domestic and international frameworks

35

f. Other

10

0

20

Go To Question 18 (Non-Financial Institutions)

40

60

80

100

120

140

160

180

(respondents)

The majority of respondents responded that the purpose was to reduce their own scope 1 and scope 2
emissions (option a); but when combined with the results of Question 16, it is suggested that the main purpose
was to procure renewable energy certificates that can be accounted for in scope 2 emissions.
22

Question 16 (Financial Institutions)

How does your company feel about companies disclosing the status of procurement of certificates andcredits as part of disclosing long-term decarbonization strategy? (select one)
Financial institutions (97 respondents)
3%
7%
37%

53%

a. The procurement status of certificates and credits is important information, and it is hoped that appropriate disclosure will be promoted.
b. Disclosure rules are not always clear and judgedment is difficult.
c. The procurement of certificates or credits is not seriously taken.
d. OtherAmong financial institutions, about 40% expressed a desire to see progress in disclosure of the procurement
status of certificates and carbon credits (option a), while about half expressed the difficulty of judgment (optionb).
It was suggested that while financial institutions are aware of the potential for certificates and carbon credits,
their rules need to be further clarified.
23

Question 17 (Financial Institutions)

What information does your company wish to be disclosed in your company regarding the status ofprocurement of certificates and carbon credits? (Multiple choice)Financial institutions (97 respondents)a. Amount of carbon credits

78b. Monitoring Start/End Date (Vintage)

27

c. Type (emission reduction system/carbon

49

absorption/carbon removal system)
d. Voided depreciation year

23

e. Other

18
0

10

20

30

40

50

60

70

80

90

(respondents)Many respondents need information on the amount (option a) and type (option c) of carbon credits. On theother hand, there are currently few requests for time-series information such as vintage year of retirement(option b, d); but there is a possibility of an increase in such requests in the future, depending on future trends
in framework design.
24Issues related to Engagement25Question 18 (Financial Institutions)

What medium does your company use to obtain disclosure information about investee companies? (Multiple
choice)Financial institutions (97 respondents)
a. Security report

Year-on-Year Comparison

59

Security reportb. Integrated report

73

c. Environmental Report /Integrated report
Environmental
Report/Sustainability Report

66

Sustainability Reportd. Corporate website

Company Website

77

e. External ESG information

External ESG Information
Vendors

41

vendorsOther
f. Other

15

0

20

40

60

80

100

(respondents)



FY2022(97 respondents)

FY2021(57 respondents)

FY2020(49 respondents)

FY2019(42 respondents)

Note: In this time-series comparison, a different lineup of respondents is compared.

The survey result reveals that financial institutions utilize disclosed information in various media such as
corporate websites, integrated reports, sustainability reports, and security reports.
26

Question 19 (Financial Institutions)

Please respond to the status of utilization of information based on TCFD disclosed by companies included inyour company’s portfolios. (Multiple choice)Year-on-year Comparison

Financial institutions (97 respondents)a. Utilized in investment and loan27

decision-making (Corporate education,
underwriting, etc: Integration)a. Utilized in investment and loan decision-making(Corporate education, underwriting, etc: Integration)b. Used as an element in the selection (screening) ofinvestee companies

b. Used as an element in the selection

26(screening) of investee companies

c. Used for dialogue (engagement) withinvestee companies

c. Used for dialogue (engagement)

d. Discussion underway on how to utilize thedisclosed information

43

with investee companies

e. Not utilized at present due to limited
disclosure
f. Otherd. Discussion underway on how to23

utilize the disclosed informatione. Not utilized at present due to limited0

Utilized in investment and loan decision-making (Corporate education,
underwriting, etc: Integration)
Utilized in investment and loan decision-making (Corporate education,
underwriting, etc: Integration)

18

f. Other
10

20

30

40

50

(respondents)

FY2020(49 respondents)

FY2021(57 respondents)

Options

18

disclosure

FY2022(97 respondents)

FY 2022(97)

FY 2021(57)

FY 2020
(49)

27

23

18

26

19

9

Used for dialogue (engagement) with investee companies

43

35

32

Discussion underway on how to utilize the disclosed information

23

15

11

Not utilized at present due to limited disclosure

18

7

7

Other

18

6

2

Note: In this time-series comparison, a different lineup of respondents is compared

The number of financial institutions using disclosed information is increasing, since although the percentage of
respondents who uses disclosed information decreased, this is expected to be because an increasing number of
respondents are in the early stages of utilizing TCFD disclosure information.
Among options, “used for dialogue (engagement)” is the highest percentage of responses; the number of responses for“screening” and “integration” also increased. These results suggest that TCFD disclosure information is being used in
more decision-useful areas.

27

Question 20 (Financial Institutions)With respect to your company‘s engagement with financed companies on climate change issues: what
aspects of engagement does your company focus on? (Multiple choice)Financial institutions (97 respondents)a. Consistency of materiality judgment with business strategy

50

and management activities
b. Integration of product development strategies into own

51business based on climate-related risks and opportunities
c. Depth of management's foresight and awareness on climate

40

changed. Accuracy of understanding the impact on corporate value

39

e. Penetration of TCFD initiatives at operational level21

f. Willingness to information disclosure and engagement

49

g. Other

22
0

10

20

30

40

50

60

(respondents)

A wide range of interests was expressed, including materiality, integration to the company's own business, andwillingness to engage (options a, b, f). These interests are related to the attitude of the company as a whole,and relatively little interest is shown concerning operational level penetration (option e).
28

Question 21 (Financial Institutions)

Please respond to any concerns your company may have with respect to conducting climate-change related
engagement with financed companies. (Multiple choice)Financial institutions (97 respondents)
a. There are differences in perceptions of the climate change impact

58

among companies or departments within a company.
b. It is difficult to have a common understanding with companies in31

terms of a medium- to long-term view.
c. Time and cost are required in collecting and analyzing information46

to be referred to due to the wide variety of disclosure media.
d. There is inconsistency in ESG initiatives with a company's

29

medium- to long-term management strategy and long-term vision.
e. Other

18
0

10

20

30

40

50

60

70

(respondents)

It was suggested that there were differences between departments in terms of the companies engaged,
although they could share a common understanding as a whole (options a and b).
The time and cost required for collecting information and conducting analysis were pointed to as issues offinancial institutions; this result suggests that this is partly due to the speed of changes in the situation and thediversification of media such as websites (option c).
Other responses included “Differences in disclosure scopes and assumptions including carbon prices and usedscenarios among companies" and “depth of management-level foresight and awareness on climate change."29

Question 20 (Non-Financial Institutions)

Please respond on the frequency with which climate change information disclosure is discussed in dialogue(engagement) with financial institutions, e.g., investors. (select one)Non-financial institutions (289 respondents)

16%

Year-on-year Analysis

c. About five times
a year or more

14%b. About twice tofour times a year
a. About once a
year

38%

32%

d. Not Discussed
FY2022(289 respondents)

Go To Question 21

a. About once a year
b. About twice to four times a year
c. About five year or more
d. Not Discussed

OptionAbout five times ayear or more
About twice to fourtimes a year
About once a year
Not discussed

FY2021(154 respondents)
FY 2022(289)

FY2020(124 respondents)
FY 2021(154)

FY 2020(124)

FY2019(91 respondents)
FY 2019
(91)

109

75

51

20

92

45

53

38

41
47

15
18

10
10

11
19

Note: In this time-series comparison, a different lineup of respondents is comparedCompanies engaging in dialogue “about five times a year or more” (option c) had the highest response rate atjust under 40%. This result indicates that engagement continues to be active.
On the other hand, "not discussed" (option d) increased both in proportion and percentage. Analyzing theattributions of companies that responded as such found a tendency that the majority of those were in their firstyear disclosure and not in high-emission industries. This result suggests that engagement is layering.
30

Question 21 (Non-Financial Institutions)

For respondents who answered a., b. and c. in Question 20: what questions were asked during the dialogue(engagement) with financial institutions? (Multiple choice)Non-financial institutions (237 respondents)
a. The impact of climate change on business

159

b. Relevance to environmental vision and medium- to long-159

term business strategy
c. Governance and internal collaboration

107

d. Management commitment

107

e. Penetration at the operational level

42

f. Actual and planned introduction of renewable energy

109

g. Contribution to the environment through products and117

servicesh. Goals setting relating to climate change

149

i. Other

15

0

20

40

60

80

100

120

140

160

180

(respondents)

The survey result shows that, overall, for non-financial institutions, impacts of climate change on business,environmental visions, and goal setting climate change targets (options a, b, and h) are among the top topics ofinterest.
The low response regarding the penetration at the operational level (option e) indicates that this may become
an issue in the future.
31

Decarbonization Efforts

32

Question 22 (Non-Financial Institutions)

There is a growing trend on transition finance, which aims to support companies that are promoting a shift
toward decarbonization. What is your company's perception on transition finance? (select one)Non-financial institutions (289 respondents)
8%15%

a. No particular interestb. Interested and willing toconsider in the future

32%

c. Interested and specificallyconsidering38%

d. Insufficient information to
make judgement

7%

e. Othera. No particular interestb. Interested and willing to consider in the futurec. Interested and specifically consideringd. Insufficient information to make judgement
e. OtherYear-on-year analysis=45%

FY2022(289 respondents)

FY2021(154 respondents)

Note: In this time-series comparison, a different group of respondents is compared.

Just under half of the responding companies showed interest in transition finance. (options b and c).
Amid an increase in TCFD participation due to addressing the requirements of the Corporate Governance Code,this result suggests that there is a growing interest in transition finance.
On the other hand, many answered that sufficient information is not available (option d), suggesting that lack of
information will be an issue in the future.
33

Questions 22, 23 and 24 (Financial institutions)

Question 22: Does your company analyze the GHG emissions (financed emissions) from your company’s
portfolio and set targets? (select one)

Question 23: For respondents who answered option a in Question 22 (those who have set targeted values):
please indicate the year which your company sets the targeted value. (select one)

Question 24: For respondents who answered option a to Question 22: please explain your company’s targets.
(free description)
Financial institutions (97 respondents)

a. Set a targeted value after
doing analysis

5%b. Not yet set a targeted value

0%

10%

c. Under consideration on doinge. Other





10%
b. Set the target only for 2050, and underdiscussion about the target for 2030

24%

analysisanalysisa. Set targets for both 2030 and 2050

31%

while doing analysis

d. No plans to considerdoing

Financial institutions (29 respondents)

35%

c. Set the target only for 2050, but no plan

66%

19%
=50%

for discussion about the target for 2030
d. No plan of setting targets for aparticular year

Half of the financial institutions responded that they analyze GHG emissions (financed emissions) of theirportfolios, and about 1/3 of financial institutions responded that they have set targets.
Among those with targets, 2/3 have targets set targets for both 2030 and 2050. While the targets for the year
2050 are commonly achievement of carbon neutrality, the 2030 target varied by industry, ranging fromcommitting to a reduction per unit to a 46% reduction across their portfolio.
About a quarter of financial institutions is considering targets for 2030 (red frame). As to financial emissions,this result indicates that the number of financial institutions setting and disclosing targets for 2030 will increasein the future.
34