． status of efforts in each country ( according to fsb and ngfs survey ) about 40 countries or regions had already conducted or are planning to conduct scenario analysis the objectives include understanding the impacts on individual fis and the financial system as a whole, improving the analytical capacity of both authorities and fis, and identifying data constraints [UNK] ． status of efforts in japan the bank of japan and the financial services agency jointly conducted a pilot scenario analysis exercise with major financial institutions in 2021 the results were released in august 2022 the pilot exercise was not intended to provide a quantitative assessment of the impact of climate change. rather, it was intended to serve as a means to continuously improve and develop analytical methods of the scenario analysis and it focused on understanding data constraints, assessing the validity of analytical assumptions and methods, and identifying issues relevant to future improvement and development ( slide 7 ) market functioning survey concerning climate change climate - related risks and opportunities in stock prices and corporate bond prices in japan % stock prices all respondents corporate bond prices banks " somewhat tight " to " tight " " more or less balanced " financial institutions other than banks " somewhat accommodative " to " accommodative " nonfinancial corporates reflected somewhat reflected 0 10 20 30 40 50 60 70 80 90 100 % not reflected not reflected much notes : the top left chart asked whether the risks and opportunities arising from climate change were reflected in stock prices and corporate bond prices in financial markets in japan. 2. the bottom right chart asked the respondents to rank their answers in the order of importance from first to third. 3. survey was conducted from april 13 to may 31, 2022. it was distributed to 663 recipients, of which 290 responded ( i. e., the response rate was 44 % ). source : bank of japan. 1. view / impression on the supply and demand conditions of climate change - related esg bonds in japan challenges for increasing the size of the climate change - related esg bond market in japan increasing investors and / or issuers that place a high value on climate - related risks and opportunities enhancing and / or standardizing information disclosure increasing efforts and projects to respond to climate change improving transparency in esg evaluation further developing analysis methodologies for climaterelated risks, opportunities, and'impacts'clarifying policy measures for climate change bridging data gaps on climate - related data promoting engagement and enhancing dialogues first second third other 80 % ( slide 8 ) issues in financial and economic analysis [UNK] ． further development

are planning to conduct scenario analysis. the objectives of scenario analysis include understanding the impact on individual financial institutions and the financial system as a whole, improving the analytical capacity of both authorities and financial institutions, and identifying data constraints. however, in most countries or regions, the use of scenario analysis is still at the trial stage. in japan, the bank of japan and the financial services agency ( fsa ) jointly conducted a pilot scenario analysis exercise with major financial institutions last year, with the results released in august this year. 3 the pilot exercise was not intended to provide a quantitative assessment of the impact of climate change on these major financial institutions. rather, it was intended to serve as a means to continuously improve and develop analytical methods of the scenario analysis and focused on understanding data constraints, assessing the validity of analytical assumptions and methods, and identifying issues for future improvement and development. specifically, the bank and the fsa prepared scenarios based on those provided by the ngfs and let the major financial institutions conduct risk analyses of these scenarios using their own models. the results of the analysis showed that the major financial institutions had their own frameworks in place to perform risk analysis for various scenarios. on the other hand, they also showed that there was considerable variation in the risk measurement results due to differences in the data and measurement models used by the major financial institutions. this variation reflects the lack of data necessary for the analysis as well as the substantial uncertainty surrounding issues such as technological developments and client firms'behavior. going forward, the bank intends to further improve the sophistication of the scenario analysis by deepening its dialogue with financial institutions, taking the issues identified in the pilot exercise into account. in addition, in its on - site examinations and offsite monitoring, the bank makes efforts to continue its in - depth dialogue with financial institutions on their responses to the results can be found here : https : / / www. boj. or. jp / en / announcements / release _ 2022 / rel220826a. htm /. climate - related financial risks and their support for client firms'efforts toward net zero. moreover, the bank also encourages financial institutions to enhance the quality and quantity of their disclosures based on the tcfd, etc., in light of the revised corporate governance code. the " market functioning survey concerning climate change " to address climate change issues, it is also important that financial markets fulfill their financial intermediation function. if risks and opportunities arising from climate change