October 6, 2026
Risk and impact management
Profit/cost: ↑ (profit) ↓ (cost)
Impact degree: ↓ (small) ↓↓ (medium) ↓↓↓ (large)
| Category | Risk to the Group | Timing of manifestation | Value‑chain stage where risk emerges | Impacts on Our Group | Evaluation of financial impacts | Countermeasures ●:In progress ▲:Scheduled |
|
|---|---|---|---|---|---|---|---|
| Transition risks |
Laws and regulations | ①Nature-related regulations | Short to long term | Direct operations* | Increased capital and management costs from stronger nature‑related regulations and market shifts | ↓↓↓
|
▲Proactive action informed by regulatory trends ●Strict wastewater management under water‑related legislation and enhanced internal standards |
| Market | ②Increased customer demand concerning natural ecosystems | Medium to long term | Direct operations* | Rising material and manufacturing costs from stronger customer ecosystem requirements | ↓↓
|
▲Promoting certification and assessment for alternative‑material adoption ▲Expanding adoption of alternative materials in new equipment development |
|
| Evaluation | ③Non‑compliance with customer procurement requirements due to insufficient nature stewardship | Short to Medium term | Direct operations* | Reputational and commercial loss from insufficient biodiversity consideration | ↓↓
|
▲Promoting nature‑positive actions | |
| Physical risks |
Acute risks | ④Increasing frequency of extreme weather events driven by climate change | Long term | Direct operations* | Flooding risks: recovery costs, delays and temporary shutdowns | ↓↓
|
●Diversifying production sites for business continuity |
| Chronic risks | ⑤Changes in water quantity, quality, and temperature | Short to long term | Direct operations* | Changes in water availability/quality leading to increased costs and production impacts | ↓↓
|
●Diversifying production sites for business continuity ●Planned capital investments for water‑efficiency and leak‑mitigation ●Compliance and monitoring of water‑related laws and standards |
|
| Acute risks and Chronic risks | ⑥Wastewater treatment outage or contaminated water release | Short to long term | Direct operations* | Adverse freshwater ecosystem impacts and subsequent remediation costs | ↓↓↓
|
●Planned capital investments for risk reduction and incident prevention | |
- *
-
Direct operations (our directly managed manufacturing and development sites — six sites)
Profit/cost: ↑ (profit) ↓ (cost)
Impact degree: ↑ (small) ↑↑ (medium) ↑↑↑ (large)
| Category |
Drivers / Impacts |
Opportunities and estimated financial impact |
Degree of financial impact |
Time frame |
Opportunities assessment |
|---|---|---|---|---|---|
| Markets |
Growing demand for environmentally aligned products |
Increased sales from environmentally considerate product offerings |
↑↑↑ |
Short, Medium, Long |
Large |
| Resource efficiency |
Reducing freshwater withdrawals |
Reducing operational water use and production‑interruption risk through enhanced recycling and water‑saving technologies. |
↑↑↑ |
Short, Medium, Long |
Large |
| New technology |
Promoting nature‑positive measures and technologies |
Revenue expansion in nature‑adaptation markets through high‑performance environmental‑monitoring sensors and semiconductor devices. |
↑↑ |
Short, Medium, Long |
Medium |
