Information Disclosure Based on TCFD Recommendations
Approach to Climate Change Issues
Sumitomo Mitsui Finance and Leasing Company, Limited (SMFL) formulated its environmental policy in June 2017, explicitly stating its aims in contributing to the resolution of global environmental issues. In April 2020, as one element of Our Vision within the SMFL Way, we declared our intention to become a company "Chosen for its commitment to SDGs." In addition, the SMFL Group has identified the "Environment" as materiality (key issues) and is promoting a variety of initiatives in its bid to help realize a decarbonized, circular economy.
In line with the recommendations put forward by the Task Force on Climate-Related Financial Disclosures (TCFD), the Group has conducted business impact assessments of projects that may be significantly impacted by climate change, identifying climate change risks and opportunities using multiple scenarios published by the International Energy Agency (IEA), including the "Sustainable Development Scenario (below 2°C scenario including 1.5°C)" and the "New Policy Scenario (4°C scenario)."
Moving forward, we plan to improve the accuracy of our analysis through various measures on an ongoing basis. This includes expanding the number of businesses subject to TCFD scenario analysis and quantifying risks and opportunities.