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.

New Arctic Coastlines Are Emerging as Glaciers Melt — What That Means for Our Planet

March 30, 2025 / activist360

Geodiversity of new coastlines developed after retreat of Arctic marine-terminating glaciers. a, Young delta system accumulated in the lagoon exposed by Recherchebreen, Svalbard. b, Rocky cliffs and morainic cliffs released from retreating Samarinbreen, Svalbard. c, Juvenile beach system in Brepollen supplied by glacial sediment dropping from remnants of ice cliffs. d, Erosion of a lateral moraine by calving waves from Eqip Sermia, Western Greenland, leading to extension of the spit system along the southern coast. Credit: b,c, Aleksandra Osika. Nature Climate Change (Nat. Clim. Chang.) ISSN 1758-6798 (online)

A Changing Arctic

Over 2,400 kilometers of new Arctic coastline have appeared in just 20 years.

That’s like adding a whole new stretch of shore equal to the length of the U.S. West Coast — all because of melting glaciers. As temperatures rise across the globe, nowhere is changing faster than the Arctic. In fact, the Arctic has warmed nearly four times faster than the rest of the planet in the past few decades.

And with that warming comes dramatic change: the disappearance of ice, the reshaping of coastlines, and the emergence of land that hasn’t seen the light of day for thousands of years.

Why Glaciers Matter

Let’s start with the basics. Some glaciers, called marine-terminating glaciers, end in the ocean instead of on land. These icy giants slowly move downhill and, when they meet the sea, they break off chunks of ice into the water — a process known as calving.

But as the planet gets warmer, these glaciers are shrinking. Warmer air and ocean water are causing them to melt and pull back from the coast. When they do, they uncover land that used to be buried under thick ice.

This retreat is happening all over the Northern Hemisphere — from Alaska to Greenland — and it’s changing what our maps look like.

What Happens When Glaciers Retreat?

When a glacier melts and retreats, it exposes new ground beneath it. That newly uncovered area often becomes coastline, especially when the glacier used to flow into the ocean.

These brand-new coastal areas are made of soft sediments like sand and gravel, or sometimes smooth, polished rock. Because this land has been hidden under ice for so long, it hasn’t had time to settle or stabilize. That means it can be quickly reshaped by wind, waves, and weather.

Scientists call these places “paraglacial coasts” — a term that simply means land newly exposed by melting glaciers. These coasts are among the most dynamic and fast-changing landscapes in the world.

Where Is This Happening?

Between 2000 and 2020, researchers tracked over 2,466 kilometers of new coastline created by glacier retreat.

Here’s where the biggest changes are:

Greenland: 66% of the new coastline came from here — over 1,600 km.
Northern Canada, Russia, and Svalbard: Each contributed around 9–10% of the new coastlines.
Alaska and Southern Arctic Canada: Though smaller in size, these areas had some of the most efficient coastline formation per glacier.

This isn’t just about flat beaches — new islands are also appearing. In fact, 35 new Arctic islands were identified between 2000 and 2020, most of them in Greenland.

Why This Matters to People and Nature

New coastlines might sound exciting — and they are — but they come with both risks and opportunities.

Risks

Tsunamis and landslides: Some new coasts are unstable and prone to large waves caused by landslides, falling icebergs, or glacier collapse. A tragic example happened in Greenland in 2017, when a tsunami destroyed homes and took lives.
Tourism safety: Melting glaciers change the landscape rapidly, affecting local communities and visitors who camp or sail near them.

Opportunities

New habitats: As glaciers melt, they make room for new ecosystems. Plants, animals, and even fish begin to move in and adapt to these fresh environments.
Natural resources: Some of the newly exposed land is rich in materials like sand and gravel, which could be valuable for local economies, especially in Greenland.

What’s Next?

Glaciers are expected to keep retreating as global temperatures rise. That means even more coastlines and islands will appear in the coming decades. But this change isn’t always predictable. Some glaciers move slowly, while others retreat in big bursts. And the way the land responds depends on things like the type of rock, the presence of permafrost (permanently frozen ground), and the local climate.

Scientists emphasize the importance of monitoring these new areas closely. Understanding how they’re forming — and how fast — helps us prepare for what’s ahead, from rising sea levels to new environmental challenges.

What You Can Do

Even if you’re far from the Arctic, there are still ways you can make a difference.

Read and share reliable information about changes happening in the Arctic and around the world.
Organizations and scientists are doing amazing work using satellite data and field studies. Supporting or sharing their findings helps spread awareness.
Advocate for climate action, including clean energy and reduced carbon emissions, to help slow ocean warming.
Vote for leaders and policies that take action on climate change.
Hold your local, state, and national elected officials accountable for taking climate action and protecting our water, air, and health.

Closing Thought

The Arctic is not a frozen, unchanging place — it’s alive, moving, and reacting to what we do. The more we understand these changes, the better we can care for our planet.

Source: Kavan, J., Szczypińska, M., Kochtitzky, W., Farquharson, L., Bendixen, M., & Strzelecki, M. C. (2025). New coasts emerging from the retreat of Northern Hemisphere marine-terminating glaciers in the twenty-first century. Nature Climate Change. https://www.nature.com/articles/s41558-025-02282-5?error=cookies_not_supported&code=6ee40adf-1176-44c7-96f9-1fc9ea5c11fd.

Global Impact of Melting Snow and Ice

January 5, 2025 / activist360

Two Antartica icebergs floating on calm water with intricate, wave-like formations, set against a dark icy landscape in a serene polar environment. Photo by Torsten Dederichs on Unsplash.

How Melting Ice Shapes Our Climate, Water, and Future—and What We Can Do to Protect It

Did you know that Greenland is losing 30 million tons of ice every hour? This isn’t just a shocking statistic—it’s a wake-up call. The melting of the world’s ice isn’t just a problem for cold regions; it’s an issue that impacts all of us, from the water we drink to the air we breathe. This week we examine the importance of Earth’s ice, the alarming changes it’s undergoing, and why it matters to your life.

The Big Picture: What Is the Cryosphere?

The “Cryosphere” might sound like a complicated word, but it simply means all the parts of Earth covered in snow and ice. This includes glaciers, ice sheets, permafrost (frozen ground), and sea ice.

Why does the cryosphere matter?

Temperature Regulation: The cryosphere reflects sunlight, keeping the planet cool, much like a natural air conditioner.
Water Storage: It stores about 70% of the world’s fresh water, feeding rivers and supporting billions of people.

Without the Cryosphere, Earth would be hotter, drier, and much less hospitable.

Alarming Changes in Ice and Snow

The Cryosphere is changing fast, and the consequences are already being felt worldwide. Greenland is losing ice at an unprecedented rate, enough to raise sea levels significantly in the coming decades. Glaciers in the Alps and Himalayas are melting at record levels, threatening water supplies for millions of people downstream.

In addition, Antarctic sea ice is shrinking, with three consecutive years of record lows. This destabilizes the Antarctic ice sheet, which could lead to catastrophic sea-level rise. And, frozen ground in Arctic regions is thawing, releasing harmful greenhouse gases like carbon dioxide and methane. This accelerates global warming and damages infrastructure in those regions.

Why It Matters to You

Melting ice may seem like a distant problem, but its effects are closer to home than you think.

Rising Seas: As ice melts, sea levels rise, threatening coastal cities and communities. Major cities like New York, Miami, and Mumbai face increased flooding risks.
Water Supply: Snow and ice act as reservoirs, releasing water during warmer months. With less snowpack, regions like the Himalayas and Andes face water shortages, impacting agriculture and drinking supplies for billions.
Changing Weather: Melting ice disrupts weather patterns, leading to stronger storms, unpredictable rainfall, and even impacts on fisheries as oceans warm and acidify.

The Path Ahead: What Scientists Say

The Cost of Inaction

If emissions continue at current levels, global temperatures could rise by 3°C or more by the end of this century. This would push many regions beyond their ability to adapt, leading to economic and human costs that are unimaginable.

Hope Through Action

The good news? Scientists agree that if we act now to limit warming to 1.5°C, we can slow ice loss and reduce long-term damage. This requires cutting emissions by 50% by 2030 and reaching net-zero by 2050.

What Can Be Done?

Global Solutions

To address the challenges posed by melting ice and its global impacts, reducing emissions is a critical step. Transitioning to renewable energy sources like wind and solar can significantly cut greenhouse gas emissions, slowing the pace of global warming and ice loss. Additionally, protecting vulnerable areas is essential. Investing in resilient infrastructure and implementing policies designed to safeguard communities can help mitigate the risks of rising seas and water shortages, ensuring these regions are better prepared for the future.

Individual Steps

You don’t have to be a scientist or policymaker to make a difference. Here’s how you can help:

Advocate for climate-friendly policies in your community.
Use public transport, conserve energy, and support sustainable products.
Spread awareness by sharing what you’ve learned with friends and family.

Summing Up

Saving the world’s ice isn’t just about preserving glaciers—it’s about protecting our homes, food, and future. The actions we take today will shape the world for ourselves as well as future generations. Each degree of warming we prevent reduces the risks to our planet and ourselves. Let’s work together to ensure that ice continues to cool the Earth, sustain life, and inspire hope for a better tomorrow.

International Cryosphere Climate Initiative. (2024). State of the cryosphere 2024: Lost ice, global damage. International Cryosphere Climate Initiative. Retrieved from https://iccinet.org/statecryo24/.