Companies in Japan stand to gain far more from investing in climate resilience compared to their global counterparts, a new report from the environmental nonprofit CDP reveals. According to CDP, Japanese businesses could see a return of $12 for every dollar spent on protecting against physical risks like earthquakes, floods, and extreme heat. This is double the global average return of six dollars per dollar invested.
Japan faces significant natural threats, including earthquakes and flooding, alongside rising summer temperatures that have prompted the government to enhance worker safety measures. These challenges have pushed many Japanese companies to take climate risks seriously and invest heavily in solutions.
Sherry Madera, CEO of CDP, shared in an interview in Tokyo that Japanese firms are leading the way in identifying risks and finding opportunities tied to climate change. Unlike some global companies, including big names like Walmart and Coca-Cola, which have delayed or scaled back their climate goals, most businesses working with CDP remain committed to their targets. Madera noted that fewer than 4% of these companies have made changes to their climate plans.
In total, about 24,800 companies worldwide provided CDP with information about their environmental impact last year. The strong investment returns seen in Japan highlight a promising link between climate action and business success, suggesting that protecting against today’s climate risks could pay off handsomely in the future.