Japan: global climate governance's best pupil

The paradigm of corporate sustainability is shifting latitude, and against all odds, in the face of recent geopolitical uncertainties, the new center of gravity is in the East. According to data from the Corporate Health Check 2026 report, produced by the non-profit organization CDP in collaboration with the consulting firm Oliver Wyman, Japan has established itself as the world leader in the fight against climate change.

With 22% of its companies having achieved 'climate leadership' status, Tokyo is well ahead of the UK (17%), the European Union (16%) and China (8%).

Japan's success is rooted in methodological rigor: a growing number of Japanese companies have had their targets validated by the Science-Based Targets initiative (SBTi), the leading independent body that validates emissions reduction targets on the basis of scientific criteria.

Sherry Madera, Executive Director of CDP, emphasized the extent to which transparency and the management of environmental issues are now part of the DNA of Japanese business. the DNA of the Japanese business world, enabling the country to be the only one where more than 10% of companies stand out as leaders simultaneously on three key themes: climate, forests and water security. While the USA and parts of Europe are witnessing a wave of withdrawals or relaxations of environmental regulations, the world's most visionary companies don't seem ready to take their foot off the gas.

"Perhaps companies are becoming more discreet when it comes to celebrating their market successes, but they're still working towards sustainability," observes Madera, highlighting a now well-established trend: climate leadership has become a business strategy, not just a moral one.

The figures are compelling: climate leaders are reducing their emissions at an annual rate of 4%, compared with just 1% for other companies. But the real driver of change is to be found in executives' wallets.

The report reveals that 100% of climate leaders have indexed their executives' remuneration to the achievement of environmental targets. When the end-of-year bonus depends on CO2 reduction or wise water management, the ecological transition ceases to be a mere chapter in the sustainability report and becomes an operational priority. The competitive advantage is also financial. Over the past 12 months, Japanese companies adopting best practices have generated $76 billion worth of new business opportunities, stemming from increased sales, expansion into new markets and innovative financial products such as green bonds.

Yet the global picture remains mixed. While Japan shines, the USA struggles to keep up: only 31% of US companies have achieved a high level of climate performance, penalized by political reversals and weak support for renewable energies. What's more, a huge gap remains in terms of investment in adaptation: despite physical risks estimated at $1.47 trillion, only 9% of companies worldwide are actually investing in resilience measures. This short-sightedness risks undermining mitigation efforts, as the absence of adaptation infrastructures leaves balance sheets vulnerable to extreme events.

The lesson from Tokyo is clear: sustainability is not a brake on growth, but a gas pedal. Those who invest today in the 'deep health' of business - that which aligns profit, people and planet - will be best equipped tomorrow to compete and prosper.

(MP/©Greenme.it/Translation and adaptation: The Global Nature/Pic: Unsplash)