Natural disasters induced by global climate change are threatening sustainability of corporations.

• Natural disasters such as severe flooding accompanied by heavy rainfall and typhoon, crop failures, water shortages, and increased heat-related illnesses pose challenges to businesses, leading to changes in consumer needs.

• Consequently, businesses recognize the need for systematic responses to climate risks, starting from proactive preparedness for natural disasters to securing capabilities for disaster response and recovery processes for normal operations.

• Japanese companies pursue business resilience from climate risks by implementing active and proactive strategies to respond massive natural disasters.

Japanese companies pursue proactive measures to minimize damage from serious natural disasters and ensure early recovery of business activities.

• Establishment of Climate Risk Management Systems: Companies like Mitsui & Co. and Mitsubishi Corporation analyze future climate risks caused by flooding, heatwaves, typhoons, and droughts from a long-term perspective, such as 30 or 50 years, considering their substantial investments in various countries and regions.

• Securing Surplus Capacities Necessary for Business Continuity: NEC has implemented the "Global One Factory" system, enabling flexible conversion of production bases in case of disasters, following the experience of flood damage in Thailand.

• Development of Climate Technology Solutions: Companies like Taisei Corporation and Kashima Construction have developed structural diagnostic systems for accurately and safely assessing building or factory damage levels in earthquakes, as well as tailored prediction programs with higher forecast accuracy for disaster-prone areas compared to general weather forecasts.

• Revenue Generation through Climate Response Solutions: Hitachi Plant has developed customized disaster prediction software for customers and local governments, by actively utilizing the Japanese government's land infrastructure maintenance and local government’s disaster countermeasures, and has sought business opportunities with the software.

• Organizational Culture Embedded with Climate Risk Responses: Daiwa House sets "becoming a company resilient to natural disasters" as a key sustainability initiative, annually evaluating disaster preparedness and abnormal weather responses at the corporate level to ensure employee safety and operational backup.

As response to climate risk is an important element of sustainable management and corporate value assessment, it is essential to seek a systematic response throughout the business cycle.

• Businesses must consider climate risks when establishing a global supply chain and selecting new asset locations from the perspective of sustainability in business execution systems.

• Proactive establishment and constant monitoring of Business Continuity Management Systems (BCMS) are necessary to prepare for large-scale natural disasters.

• Companies should actively leverage their disaster recovery experiences and business resilience capacities, combined with corporate brand power, to generate additional business revenue.