Japanese Industry in an Unstable Climate: Reducing Exposure to the Security Implications of Climate Change
A new report from the Center for Climate and Security shows that Japan’s economic competitiveness is threatened by heavy reliance on imports from countries facing multiple climate change-exacerbated security risks. Findings show 17% of Japan’s imports coming from countries facing medium to high climate change and security vulnerabilities.
The introduction to the report states that "Japan has developed the 3rd largest automotive manufactring capability globally as well as the worlds largest consumer electronics industry. This wealth creation depends heavily on a few South East Asian countries for both growth markets and production of supplies for products sold in Japan. These dependencies create vulnerabilities which need to be assessed for future risk and overall business continuity."
The report goes on to state that "only 27% of more than 1,000 companies surveyed have formulated business continuity plans to implement in the wake of natural disasters while almost 80% had no measures established to cope with flooding."
Rachel Fleishman, Senior Fellow for Asia-Pacific, The Center for Climate and Security said “The business case for addressing climate-related risk is clear: while potentially costly in the near-term, not acting is even more expensive. These risks could cause instability in locations with substantial Japanese investment across Asia. Instability is not good for business, in any sense.”
The full report can be downloaded here.
- Environmental management and sustainability
- Business threats and horizon scanning
- Governance and corporate responsibility
- Resilience/ Organizational Resilience
- Supply chain management