The Legal Liability Japanese Companies Face: Why Climate Change Risks Are a Growing Concern

April 6, 2025 / activist360

The cover page of the “Directors’ Duties Regarding Climate Change in Japan: 2025” report by Dr. Yoshihiro Yamada, Dr. Janis Sarra, and Dr. Masafumi Nakahigashi, published by the Commonwealth Climate and Law Initiative (CCLI). The image of Mount Fuji symbolizes Japan’s resilience amidst the challenges of climate change.

Why Climate Change Matters

Climate change is a global challenge that’s affecting every corner of the world. Rising temperatures, extreme weather events, and unpredictable climate patterns are causing disruption, and no country is immune from its effects. Japan, an island nation, is particularly vulnerable to climate change because of its geographical location and dense population. Companies in Japan are now facing significant risks, not only from the physical impacts of climate change but also from the legal and financial responsibilities that come with it.

As climate change accelerates, the risks to businesses are no longer something that can be ignored or delayed. Corporate leaders in Japan are beginning to understand that failing to take action on climate-related risks could lead to severe consequences.

What Are the Risks of Climate Change?

Climate change poses two major types of risks to businesses: physical and transition risks.

Physical Risks are those that arise from the direct impact of climate change. These risks are divided into two categories:

Acute (immediate) risks: These are extreme events such as typhoons, floods, and heatwaves. For example, in recent years, Japan has experienced severe typhoons and record-breaking heatwaves, causing massive destruction.
Chronic (long-term) risks: These refer to gradual changes such as rising sea levels and ongoing temperature increases. Both of which can have a slower but equally harmful impact on businesses, especially those relying on natural resources.

Transition Risks are related to the global shift toward a more sustainable, low-carbon economy. As governments, investors, and consumers push for greener practices, businesses face new challenges:

Regulatory risks: New laws and policies aimed at reducing carbon emissions could impact how companies operate.
Market risks: As consumers demand greener products, companies that do not adapt may lose market share.
Technological risks: Companies that fail to innovate and adopt clean technologies might fall behind their competitors.

Why Japanese Companies Are Concerned About Climate Change

Japan faces multiple concerns when it comes to climate change. These concerns are not just about the physical damage caused by storms and rising seas—they also include financial and legal risks that could severely affect businesses.

Physical Risks: Japan is especially vulnerable to climate events like typhoons, heatwaves, and rising sea levels. For example, over the past decade, Japan has faced over JPY 13.7 trillion (USD $90.8 billion) in climate-related damages. Coastal cities like Tokyo, Osaka, and Nagoya are at high risk of flooding. The country’s agricultural sector is struggling with changes in temperature and rainfall patterns.

Transition Risks: The global shift towards sustainability presents challenges for Japanese businesses. Companies that fail to reduce their carbon footprint or invest in cleaner technologies may lose out to more forward-thinking competitors. Additionally, businesses face the risk of stranded assets—where investments in fossil fuel infrastructure become worthless as the world moves toward renewable energy.

Legal and Financial Liability: Directors of Japanese companies have a legal responsibility to ensure that climate risks are managed properly. If they fail to take action, they could be held personally liable. Japanese laws now require businesses to disclose material climate risks, and failure to do so could lead to lawsuits for breach of fiduciary duty. The pressure is mounting for directors to act, as investors and regulators increasingly demand transparency on climate-related risks.

Investor Pressure: Institutional investors are increasingly focused on sustainability. In Japan, investors representing trillions of dollars are demanding that companies disclose their climate-related risks and take meaningful action. If a company fails to do so, it risks losing investor confidence, which could lead to higher costs of capital and reduced access to funding.

Systemic Risk to the Economy: The Bank of Japan has warned that failing to address climate risks could destabilize the financial system. Mismanagement of these risks could lead to falling asset prices, loss of economic stability, and even disruptions in Japan’s banking system.

How Climate Change Affects Japanese Companies

The effects of climate change are already being felt across many industries in Japan. For instance, the manufacturing sector is vulnerable to extreme weather events that damage facilities and disrupt supply chains. Similarly, Japan’s agricultural sector faces challenges like reduced rice yields due to rising temperatures and unpredictable rainfall patterns.

The economic costs of not addressing these risks are significant. Companies that fail to prepare for climate change may suffer from damaged infrastructure, lost productivity, and increased operational costs. In some cases, the financial impact can be devastating, leading to significant losses in revenue and long-term damage to a company’s bottom line.

Legal Responsibilities for Directors in Japan

Corporate directors in Japan have a legal duty to manage the risks their companies face, including climate-related risks. According to Japanese corporate law, directors must act in the best interests of the company and ensure the company complies with all applicable laws and regulations. This includes climate-related risks.

Under Japan’s Corporate Governance Code, directors are required to oversee the company’s efforts to identify, assess, and manage climate risks. Failure to do so could result in personal liability. In particular, if a director neglects to integrate climate change into their governance strategy, they could face lawsuits from shareholders or be found in breach of their fiduciary duties.

The Role of Climate Governance in Business Success

Proper climate governance is crucial for businesses to remain competitive in a world that is increasingly focused on sustainability. Companies that integrate climate risks into their strategy are better positioned to succeed in the long term. Effective climate governance allows businesses to anticipate regulatory changes, innovate with cleaner technologies, and align with consumer preferences for environmentally friendly products.

In the long run, companies that take climate action seriously can build resilience, improve their reputation, and reduce risks associated with physical and transition challenges. On the other hand, companies that ignore climate risks may find themselves falling behind their competitors or even facing financial ruin.

The Growing Importance of Sustainability

As global investors push for more sustainable business practices, companies that fail to disclose their climate risks or take action to address them are likely to see a loss of investor confidence. Investors are increasingly looking for companies that are committed to reducing their carbon footprint and addressing climate-related risks in their business strategies.

Failure to meet these expectations could not only damage a company’s reputation but also increase the cost of capital and make it more difficult to attract investment in the future. Companies that adopt sustainability practices now will likely enjoy a competitive advantage in attracting responsible investors and staying ahead of regulatory trends.

What Should Directors Do?

Directors of Japanese companies must act now to integrate climate risk management into their governance structures. They should:

Assess and disclose climate risks transparently.
Seek expert advice to ensure they are making informed decisions about climate change.
Ensure that the company’s strategy includes clear goals for reducing greenhouse gas emissions and adapting to climate impacts.

By taking these steps, directors can help safeguard their companies from the financial and legal risks associated with climate change and position them for long-term success in a decarbonized economy.

Call to Action

Japan is taking significant steps to address climate change, with its corporate sector increasingly aware of the legal and financial risks posed by climate impacts. As one of the countries leading the way in climate governance, Japan is setting a strong example for others to follow. However, the fight against climate change requires a global effort. The United States and other countries must step up their efforts to integrate climate risk into corporate governance, adopt stricter environmental regulations, and encourage businesses to embrace sustainability.

As individuals, we can support companies and governments that are prioritizing climate action. We can demand greater transparency and accountability from businesses on their climate-related actions and encourage them to follow Japan’s lead in addressing climate risks head-on. We need to act now—climate change is a challenge that requires bold leadership across the globe. Let’s work together to make sure that countries, especially those with significant global influence, do not fall behind in this critical fight for our planet’s future.

Yamada, Y., Sarra, J., & Nakahigashi, M. (2025). Directors’ Duties Regarding Climate Change in Japan: 2025. Commonwealth Climate and Law Initiative.

Glacial Floods, Climate Change, and What the U.S. Can Learn from the Himalayas Disaster

February 2, 2025 / activist360

Field evidence of sediment aggradation. (A to F) Photographs taken along the Teesta River show the aggradation of the sediments transported by the flood cascade and its impact. Latitude, longitude, and elevation (in m a.s.l) are at top right; locality name and distance from SLL are at bottom right. Photo credits: Praful Rao (study co-author).

A Disaster Unfolds

Imagine waking up in the middle of the night to a roaring wall of water crashing through your town. That’s what happened in Sikkim, India, on October 3, 2023. A glacial lake high in the Himalayas burst suddenly, sending a flood of 50 million cubic meters of water rushing downstream. Villages were washed away, bridges collapsed, and a massive hydropower dam was completely destroyed.

The flood traveled 385 kilometers, even reaching parts of Bangladesh. This was no ordinary flood—it was a Glacial Lake Outburst Flood (GLOF), a type of disaster that’s becoming more frequent as the planet warms.

What Caused the Flood?

At the heart of this disaster was South Lhonak Lake, one of the fastest-growing glacial lakes in the Himalayas. Scientists have been watching it for years, warning that its natural dam—made of ice and rock—was getting weaker.

Then, the worst happened:

A 14.7-million cubic meter chunk of frozen land collapsed into the lake.
This triggered a 20-meter-high wave—as tall as a six-story building.
The wave smashed through the natural dam, sending a torrent of water and debris barreling down the valley.

Think of it like a bathtub overflowing, except instead of a few gallons of water, it was millions of tons rushing out all at once.

The Impact: Lives, Land, and Infrastructure Lost

The destruction was swift and brutal:

55 people lost their lives, and 74 are still missing.
More than 7,000 people were displaced, their homes and villages washed away.
31 bridges, 25,900 buildings, and 276 square kilometers of farmland were destroyed.
The flood carried away 270 million cubic meters of sediment—enough to fill 100,000 Olympic-sized swimming pools.

Entire communities were left without power, food, or clean water, and the road to recovery is long.

The Role of Climate Change

So, why did this happen? The simple answer: climate change.

The South Lhonak Glacier has been melting faster than ever, losing 0.58 meters of ice every year.
The lake it feeds has grown dramatically in the past few decades.
Warming permafrost (frozen soil) is making mountain slopes unstable, increasing the risk of landslides and dam failures.

This isn’t just a Sikkim problem—glaciers around the world are melting at record speeds, putting millions of people at risk.

Could This Happen Again?

Unfortunately, yes. Scientists warn that South Lhonak Lake is still unstable.

The natural dam is eroding, making another flood likely.
Riverbanks weakened by the last flood could collapse, leading to more destruction.
Extreme rainfall—which is increasing due to climate change—could trigger another disaster.

And it’s not just Sikkim—other glacier-fed lakes in the Himalayas, the Andes, and even North America are showing similar warning signs.

Why This Matters

If you think this is just a distant problem, think again. The same climate forces that caused the Sikkim flood are also affecting other mountainous regions worldwide.

Melting Glaciers Are a Global Issue

Glaciers are retreating in Alaska, the Rocky Mountains, and the Pacific Northwest. As ice melts at a faster rate, more glacial lakes are forming, increasing the chances of floods like the one in Sikkim. If we don’t prepare, communities in mountainous regions of the U.S. could face similar disasters.

U.S. Disasters Are Increasing

The 2022 Yellowstone flood destroyed roads, bridges, and homes, forcing many residents to evacuate. In California, record-breaking storms and floods are becoming more frequent, causing billions in damage. Extreme weather events—whether floods, hurricanes, or wildfires—are getting stronger, deadlier, and harder to predict.

Our Infrastructure Is at Risk

Just like the Teesta-III dam in Sikkim collapsed, many worldwide dams, roads, and power plants are vulnerable to extreme weather. Many of these structures were built decades ago and weren’t designed to handle the kinds of disasters we’re seeing today.

We Can Learn

By taking action now, the U.S. can prevent similar disasters:

Invest in early warning systems—monitor unstable lakes and glaciers.
Upgrade infrastructure—build flood-resistant bridges and roads.
Plan for extreme weather—ensure communities are prepared for disasters.

Preventing Another Tragedy

While we can’t stop glaciers from melting overnight, we can take steps to reduce the damage.

Early Warning Systems (EWS)

Science and technology give us powerful tools to predict disasters before they happen. Governments and scientists must monitor unstable lakes and glaciers using satellites, sensors, and AI-driven models. These systems can detect early signs of danger, giving communities valuable time to evacuate before disaster strikes. Investing in real-time alerts and community education could save thousands of lives.

Building Stronger Infrastructure

We need to rethink how we design bridges, roads, and power plants. Structures built decades ago were not designed to handle the kinds of extreme weather we’re facing today. Engineers and policymakers must ensure that new infrastructure is flood-resistant and that existing structures are reinforced to withstand future disasters. This kind of investment is expensive, but the cost of doing nothing is far greater.

Preparing for Disasters

Education and preparation can mean the difference between life and death. Governments and communities must train people on emergency evacuation plans and improve international cooperation to respond to climate disasters. Since floods and other extreme weather events are increasing, being prepared is no longer optional—it’s essential.

Addressing Climate Change at Its Root

At the core of these disasters is a warming planet. To slow down glacial melting, we need to cut greenhouse gas emissions. Governments, businesses, and individuals can all play a role by switching to clean energy sources, reducing waste, and advocating for policies that combat climate change. These actions will protect glaciers, and help stabilize global weather patterns.

A Wake-Up Call

The Sikkim flood wasn’t just a freak event—it was a preview of what’s to come if we don’t act now. The good news? We still have time to prepare. By investing in early warning systems, better infrastructure, and climate solutions, we can reduce the risk of future disasters—both in the Himalayas and here at home.

Source: Sattar, A., Cook, K. L., Rai, S. K., Berthier, E., Allen, S., Rinzin, S., Van Wyk de Vries, M., Haeberli, W., Kushwaha, P., Shugar, D. H., Emmer, A., Haritashya, U. K., Frey, H., Rao, P., Gurudin, K. S. K., Rai, P., Rajak, R., Hossain, F., Huggel, C., … Younis Bhat, S. (2025). The Sikkim flood of October 2023: Drivers, causes, and impacts of a multihazard cascade. Science.

How Climate Change Is Affecting Your Favorite Healthy Food Choices

January 12, 2025 / activist360

Close-up of red apples in a basket. The apples Have natural variations in color and texture, showcasing a mix of reddish hues and green patches. Some of the apples have visible blemishes, reflecting their organic and unprocessed state. The lighting is soft and warm, highlighting the rustic and fresh appeal of the apples. Photo by Priscilla Du Preez 🇨🇦 on Unsplash.

Did you know that the apples you enjoy might soon face serious challenges because of rising temperatures?

Apples, one of the most beloved and healthiest snacks, are under threat. As climate change reshapes weather patterns, it’s also impacting how—and where—our food grows. These changes affect not just apples but many of the healthy foods we rely on every day. Understanding this issue is crucial for anyone who cares about their health and the environment. Let’s dive into how climate change is affecting your food.

The Science Behind the Problem

How Climate Change Impacts Agriculture

Climate change is causing shifts in temperatures, rainfall, and weather patterns worldwide. For agriculture, this means disrupted growing cycles, extreme heat, and unpredictable frosts—all of which create challenges for crops. Perennial crops like apples are particularly vulnerable because their growth depends on consistent weather conditions year-round.

Apples as a Case Study

Apples provide a clear example of how climate change affects food production. Scientists have identified six key climate factors that influence apple growth, including:

Extreme Heat Days: Days when temperatures exceed 93°F can cause sunburn on apple skins, reducing their quality.
Warm Nights: Nighttime temperatures above 59°F can prevent apples from developing their rich red color, making them less appealing to consumers.
Reduced Chill Portions: Apples need cold periods during winter to rest and prepare for spring growth. Warmer winters mean fewer of these essential chill hours.
Earlier Frost-Free Days: While this might sound good, it can disrupt the natural bloom cycle, increasing the risk of frost damage later.

Yakima County in Washington, one of the leading apple-producing regions in the U.S., has seen harmful trends in five of these six metrics. These changes reduce apple yield, size, color, and taste—qualities that make apples a staple in healthy diets.

Why It Matters to You

Health Implications

Changes in food production can directly impact your diet. When apples face extreme heat or warm nights, they may lose their flavor and nutritional value. Reduced availability of high-quality apples could make healthy eating more expensive or harder to achieve.

Environmental Concerns

When crops like apples struggle, farmers must use more resources to maintain production. This includes water for cooling trees during heatwaves or energy to run protective equipment. These added measures can increase the carbon footprint of growing food, contributing further to climate change—a cycle that’s tough to break.

Actions Being Taken

Adaptation by Farmers

Farmers are already finding ways to adapt. Here are some strategies being used:

Netting: Covers are placed over apple orchards to protect fruit from sunburn.
Evaporative Cooling: Spraying water on trees helps lower their temperature during heatwaves.
Crop Diversification: Planting heat-resistant apple varieties or other crops reduces risk.

Scientific Research and Innovation

Researchers are also stepping in. A $6.75 million USDA-funded project is helping farmers mitigate extreme climate events. This initiative includes studying how to adapt apples and pears to new growing conditions across the U.S., starting with Washington State. Scientists are working to find long-term solutions that keep crops productive despite challenging conditions.

How You Can Help

Support Sustainable Practices: When you buy apples and other produce, look for labels that indicate sustainable farming practices. Supporting local farmers who prioritize environmentally friendly methods can make a big difference.
Reduce Food Waste: Every piece of wasted food represents water, energy, and labor lost. By planning meals carefully and storing apples properly, you can reduce waste and lessen the strain on farmers already coping with climate challenges.
Advocate for Change: You don’t have to be a farmer to make a difference. Get involved in climate-friendly initiatives or share this information with others. Raising awareness about how climate change affects food can inspire collective action and support for sustainable practices.

Summing Up

Climate change is reshaping how and where our food is grown, with apples as just one example of a crop under threat. The impacts go beyond the farm, influencing your health, your wallet, and the environment. But there’s hope—farmers, scientists, and consumers can work together to protect our environment and food supply.

Source: Preston, S., Rajagopalan, K., Yourek, M., Kalcsits, L., & Singh, D. (2024). Changing climate risks for high-value tree fruit production across the United States. Environmental Research Letters, 19(12), 124092.