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EconomyClimate Change Raises Corporate Financial Risks; BOJ Urged to Review Its Expanded Balance Sheet Through a Climate-Financial-Risk Lens

New challenges, including climate-change risks and the deterioration of natural capital, are emerging as the Bank of Japan pursues monetary-policy normalization. The way environmental risks are incorporated into its vast asset management could have serious consequences for market stability and the economy as a whole. The article calls on the BOJ to reconsider its expanded balance sheet from the perspective of climate-related financial risk.

Bank of Japanclimate changefinancial risk

TToyo Keizai★★★☆☆2026-08-04 21:30Original

Climate Change Raises Corporate Financial Risks; BOJ Urged to Review Its Expanded Balance Sheet Through a Climate-Financial-Risk Lens
Climate Change Raises Corporate Financial Risks; BOJ Urged to Review Its Expanded Balance Sheet Through a Climate-Financial-Risk LensEconomy