Risks       Transition Risks and Physical Risks Clients to whom Mufg has provided credits may be exposed to risks arising in the course of the transition to a low-carbon society, such as stricter regulation and the introduction of low-carbon technologies transition risks. They can also be exposed to risks arising from physical damage due to the growing occurrences of climate change-induced natural disasters and abnormal weather physical risks. If these risks were to impact the clients        businesses or financial conditions, Mufg    credit portfolio would also be exposed to substantial risks.