Type of
Risk
Medium
category
Risk Event Assess
-ment
Major risks and opportunities Risk Opportu
-nity
Transition Policy/
Regulation
Carbon pricing, national carbon emission targets and policies Large - Carbon pricing of GHG emissions
- Implementation of strict regulations regarding GHG emissions from manufacturing sites
Industry/
Market
Changes in customer companies, governments, and markets Large - Demand trends for oil, gas, and ammonia affecting sales and operating profit
Physical Acute Extreme weather conditions Large - Production stoppages caused by damage to production sites due to heavy rains and typhoons
Type of
Risk
Medium
category
Risk Event Assess
-ment
Major risks and opportunities Risk Opportu
-nity
Transition Policy/
Regulation
Carbon pricing, national carbon emission targets and policies Large - GHG emissions are subject to carbon-pricing
- GHG emissions are subject to strict regulations at our main manufacturing sites
Industry/
Market
Market changes (customers, governments, markets) Medium - The demand for reduction of PFC gas increases with the rise in demand for semiconductors
- Demand for semiconductors grows due to the spread of EV, FCV and the advancement of smart technologies and smart societies
Physical Acute Extreme weather conditions Large - Production stoppages caused by damage to production sites due to heavy rains and typhoons
Type of
Risk
Medium category Risk Event Assess
-ment
Major risks and opportunities Risk Opportu
-nity
Transition Policy/
Regulation
Carbon pricing, national carbon emission targets and policies Large - Increase in manufacturing/operating costs due to carbon taxation and procurement of green energy
- Increase in sales costs due to international carbon taxes
- Rise in energy procurement costs due to increased levy on renewable energy
Regulations and legislation related to global warming prevention Large - Tightening GHG emission controls for buildings, condominiums, and plants resulting in expansion of sales of energy-saving products and non-CFC products
Industry/
Market
Changes in customer companies, governments, and markets Large - Increasing demand for products/services that reduce GHG emissions from large buildings, factories, condominiums, etc.
Physical Chronic Increase in the average temperature Large - Increase in summer air-conditioning costs at production facilities
Large - Increase in demand for air-conditioning equipment among end users
Acute Extreme weather conditions Large - Production stoppages caused by damage to production sites or disruptions to the supply chain due to heavy rains and typhoons
Large - Increase in demand for maintenance and replacement of damaged facilities
Type of
Risk
Medium
category
Risk Event Assess
-ment
Major risks and opportunities Risk Opportu
-nity
Transition Industry/
Market
Changes in customer companies, governments, and markets Large - Potential inability to meet environmental needs of customers would preclude us from participation eligibility of some bids which could result in order loss
- Increase in food demand due to increasing population worldwide and changes in cultivated land due to climate change could lead to increased sales of agricultural-related water infrastructure outside Japan
- Increase in orders and sales related to countermeasures for flood damage
Physical Chronic Increase in the average temperature Large - Production stoppages caused by damage to production sites due to heavy rains and typhoons
- Weather disasters disrupt the supply chain and increase logistics cost
- Increase in flooding control measures taken by municipal governments, etc. may result in less demand for pumping stations
- Increase in sales due to rising demand for sewerage facilities, river drainage facilities, etc. associated with climate-change caused changes in rainfall patterns
- Decrease of water resources in Japan and Southeast Asia will expand demand for water management systems that contribute to water conservation and increase sales
Acute Extreme weather conditions Large - Production stoppages caused by damage to production sites or disruptions to the supply chain due to heavy rains and typhoons
- Frequent water damage from floods, etc. could cause increase in demand for reinforcing water treatment facilities, river drainage facilities, and agricultural land disaster prevention facilities, potentially increasing sales
- Potential for increased sales due to increase in demand for flood countermeasures in urban areas
- Potential for increased sales due to increase in demand for remote monitoring and operation stations for water management facilities in order to swiftly respond to flood damage
Type of
Risk
Medium
category
Risk Event Assess
-ment
Major risks and opportunities Risk Opportu
-nity
Transition Policy/
regulation
Carbon pricing, national carbon emission targets and policies Large - Regulations regarding CO2 emissions from waste incineration increasing operating costs
- Increase in manufacturing costs due to application of carbon tax and carbon pricing to incinerator and boiler manufacturing
- Increase in demand for biomass-fired power generation, waste-fired power generation, and waste treatment facilities with carbon capture and storage capabilities
Industry/
Market
Changes in customer companies, governments, and markets Large - Demand in decrease for waste incineration plants due to further penetration of the 3 Rs (Reuse, Reduce, Recycle) and shift to circular economy with less waste, plastic, etc.
- Increase in demand domestically and overseas for waste recycling technologies
Technology Promoting low-carbon, energy-saving, and next-generation technologies Large - Increase in R&D expenditures to facilitate new technologies to reduce GHG emissions from waste treatment
- Increase in demand for solutions aimed at achieving carbon neutrality, such as chemical recycling
Physical Acute Extreme weather conditions Medium - Supply chain disruption caused by natural disasters
- Increase in repair work of damaged facilities
- Increase in commissioned treatment requests due to damage to neighboring waste disposal facilities