In June 2017, the Financial Stability Board announced Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) (Final Report). The announcement was made in response to concerns over adverse effects on the financial system that could be caused by physical and transition risks in the course of a shift to a lower-carbon society. Daiwa Securities Group Inc. expressed its support to the TCFD in April 2018.
Impact on Daiwa Securities Group in the Course of a Transition to a Lower-Carbon Economy
The table below describes what Daiwa Securities Group currently recognizes, based on the TCFD recommendations, as major events that may adversely affect the Group's businesses in the course of transition to a lower-carbon economy, measures that are expected to reduce such effects, and developments and opportunities anticipated to occur in the future, as well as effects that could remain, according to the four thematic areas below.
Daiwa Securities Group will continuously conduct verification going forward, based on scientific knowledge and expectations about climate change, and respond appropriately as an important management issue.
|Governance||The organization's governance around climate-related risks and opportunities
a) Oversight by the Board of Directors
b) Management's role
|Strategy||Impacts of climate-related risks and opportunities on the organization's businesses, strategy, and financial planning
a) Climate-related risks and opportunities
b) Impacts of climate-related risks and opportunities
c) Potential impacts under different climate-related scenarios
|Risk Management||Methods for identifying, assessing, and managing climate-related risks
a) Processes for identifying and assessing climate-related risks
b) Processes for managing climate-related risks
c) Integration of processes for identifying, assessing, and managing climate-related risks into overall risk management
|Metrics and Targets||Metrics and targets used to assess and manage climate-related risks and opportunities
a) Metrics for assessing climate-related risks and opportunities
b) Scope 1, Scope 2, and Scope 3 greenhouse gas (GHG) emissions
c) Targets used to manage climate-related risks and opportunities