According to a study by Greenpeace, the three largest Japanese automakers face the greatest climate change risks among global automakers, as the majority of their production remains concentrated in this island nation.
Toyota Motor, Honda Motor, and Nissan Motor will face major challenges ranging from storms and floods to high temperatures and water shortages, in the coming years depending on the location of their plants, the group said.
Environmental Defense, which analyzed Moody’s data. ESG solution for physical risk.
When it comes to environmental, social, and governance issues, the focus is often on the impact producers have on climate or society.
However, as climate change makes the impact of natural disasters more frequent and intense, automakers will face a “high level of risk” of damage and disruption to operating facilities. their movements as well as supply chain disruptions, Greenpeace said.
To some extent, the list reflects the reality of geography.
The Japanese automakers, which also have plants in Asia, have facilities scattered across an archipelago that is frequently hit by typhoons. The word itself is Japanese and means “big wind”.
Rounding out the list of major automakers facing less climate risk are Volkswagen, Stellantis, and other European carmakers with production facilities in northern climates.
Despite this, Greenpeace singled out Toyota for the highest score as “reluctance to disclose climate risks associated with its facilities” and recommended that the company “take more aggressive action to reduce greenhouse gas emissions.” carbon emissions”.
According to an analysis by Greenpeace, more than 90% of Toyota’s manufacturing facilities are at high risk of at least one climate hazard.
Toyota denied the study, saying it was working to build a “disaster-resistant supply chain,” disclosing its emissions and taking steps to secure supplies. country.
Nearly 30% of Toyota’s vehicle production came from Japan in the first half of the year.
“Toyota has a long track record of using its resources to restore operations and production in the event of climate change-related disasters, earthquakes, and fires with humanitarian assistance and recovery. Rapid recovery of affected areas is a top priority,” the company said. in a report.
Nissan said it conducts a long-term climate change risk assessment and takes them into account when defining its supply chain strategy. “We will continue to engage with our stakeholders and proactively strengthen our business,” said Nissan spokesman Shiro Nagai.
A Honda spokesperson declined to comment on the report, which will be published soon.