• Obsolescence of existing business models accompanying the rise of new technologies such as IoT and AI
• Labor shortages in developed countries; flight of excellent talent from businesses that are slow to streamline

• Creation of new markets; provision of innovative services
• Optimization of human resources and logistics by utilizing new technology; enhanced competitiveness by reforming how we work

Transition risk

• Reduction in demand for fossil fuels due to business restrictions on greenhouse gas emissions

Physical risk

• Damage to business due to the increase in abnormal weather (e.g., droughts, flooding, typhoons and hurricanes)

• Increase in renewable energy and other business opportunities which will contribute to alleviating climate change
• Retention and acquisition of customers by strengthening supply structures that can adapt to abnormal weather

• Failure to handle the issue properly could lower worker productivity, cause excellent talent to leave, erase business opportunities, and add to health-related expenses

• Providing a motivating workplace environment raises worker productivity, improves health and motivation, retains excellent talent, and enhances adaptability to change and new business opportunities

• Human rights problems occurring in more geographically expansive business activities could delay operations or pose a continuity risk
• Insufficient provision of social infrastructure services could erode trust in the company

• Co-existence with local communities stabilizes business and retains excellent talent
• Consideration for human rights in the supply chain and improved working environments will build a safer and steadier product supply network

• Safety and health issues affecting consumers and service users could erode trust in the company
• Changes in government policy could impact business by destabilizing markets or social insurance systems

• Advancing food safety/reliability and health will boost demand
• Growth in individual consumption and the spread of the internet will expand services in information, finance and distribution

• Impact from a backlash accompanying the outbreak of environmental problems or worsening relations with local communities
• A price-cutting war in consumer goods could structurally batter the entire industry

• Higher demand for resources due to population growth and higher living standards in emerging countries
• A steady, environmentally-friendly supply of resources and materials wins client trust and creates new business

• Business continuity risks and unanticipated losses arising from dysfunctional corporate governance or internal controls

• Establishing robust governance will raise decision-making transparency, enable proper adaptation to change, and lay the foundation for steady growth