SMBC, The Climate Service, and IBM Japan Collaborate to Launch TCFD-Aligned Climate Risk Analysis Services

Posted on 12/9/21 11:49 AM

Program supports companies listing on the Tokyo Stock Exchange Prime Market

Sumitomo Mitsui Banking Corporation
The Climate Service.Inc.
IBM Japan, Ltd.


Tokyo, Japan and North Carolina, USA: IBM Japan, Ltd. and Sumitomo Mitsui Banking Corporation (SMBC) today announced a collaboration with a leading provider of climate analytics, The Climate Service (TCS), to offer services preparing the Japanese market for compliance with new climate risk disclosure rules.

Launched following the Financial Services Agency’s requirement that Tokyo Stock Exchange Prime Market-listed companies comply with TCFD-aligned climate risk disclosure, the services will provide analysis of financial impacts from climate change.

The full-scale program—a result of a 2021 successful pilot involving select companies preparing to list on the Prime Market—will be available widely in January 2022 and will be powered by The Climate Service’s Climanomics® platform.

The Climanomics® platform aligns with the Task Force on Climate-Related Financial Disclosures (TCFD), an internationally-supported framework for climate disclosures backed by the government of Japan. The results provide customers with data necessary for compliance, risk mitigation and competitive advantage in the face of climate change.

Guided by a team including IPCC scientists and leveraging over a thousand proprietary econometric functions, the Climanomics® platform blends terabytes of climate science with data from individual company assets to offer analysis covering multiple climate scenarios over a time horizon of up to 80 years.

The platform enables assessment of physical risks including temperature extremes, drought, wildfire, coastal and fluvial flooding, tropical cyclones and water stress, and packages data into simple visualizations to provide insights into the location, severity, and timing of climate risks. Trusted by clients including the world’s largest banks, asset managers, real estate investors, Fortune 500 firms, and public bodies including the US Federal Government, the platform enables TCFD-aligned analysis in granular terms necessary to meet new compliance requirements.

IBM Japan will support the introduction of these services to the Japanese market, leveraging intelligence accumulated through managing the pilot program along with decades of multi-sector, specialized ESG experience. Sumitomo Mitsui Banking Corporation’s "SMBC Group GREEN Innovator" program will facilitate and catalyze this work as well as provide management guidance for the wide-variety of sustainability challenges facing corporations today.

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Topics: Banks, Financial Institutions

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