| Risks | Opportunities | ||
|---|---|---|---|
| 1 | Legal Regulations | A surge in fossil fuel and energy costs due to the enforcement of tightened CO2 emission regulations based on the Paris Agreement | Growth in business opportunities arising from demand for Denka’s energy-saving technologies |
| 2 | Physical impact | Frequent operational disruption at manufacturing bases and other business sites due to an increase in flooding, rainstorms and mega typhoons | Growing need for ultrahigh-strength concrete that enhances the resilience of concrete structures and infrastructure components (such as expressways) as well as for quick-hardening and setting concrete that supports the timely restoration of such facilities following natural disasters |
| 3 | Others | Growing uncertainty regarding stock prices and our corporate reputation due to ever harsher scrutiny of the Company’s climate change countermeasures as shareholders and investors began to place stronger focus on ESG investment | Growing need for Denka products capable of helping reduce CO2 emissions on the back of an overall shift to low-carbon operations among supply chain constituents |
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