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Toyota, Honda and Nissan top list of automakers facing climate-change risks

Toyota, Honda and Nissan top list of automakers facing climate-change risks

Jeff Lincoln August 28, 2022

Japan’s three biggest carmakers are experiencing the finest chance from climate transform among international vehicle corporations simply because significantly of their producing stays concentrated in the island nation, in accordance to a study by Greenpeace.

Toyota, Honda and Nissan will face significant troubles ranging from hurricanes and flooding, to superior temperatures and drinking water shortages, in the coming several years centered on exactly where their factories are located, reported the environmental-advocacy group, which analyzed details from Moody’s ESG Remedies on actual physical dangers.

When it will come to environmental, social and governance concerns, the highlight is ordinarily on the effects that manufacturers have on the local climate, or culture. Nonetheless, as improvements in the climate make the impression of pure disasters additional regular and rigorous, carmakers will deal with “a substantial degree of physical risk” of hurt and disruption at their operational facilities as perfectly as offer-chain disruptions, Greenpeace stated. 

To an extent, the listing demonstrates the realities of geography. The Japanese carmakers, which also have factories in Asia, have services scattered throughout an archipelago that’s susceptible to typhoons. The word by itself usually means “big wind” in Japanese. Towards the base of the record of major carmakers experiencing fewer weather risk are Volkswagen, Stellantis and other European automakers with producing facilities in northern climates. 

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Even so, Greenpeace singled out Toyota, which scored the highest, as staying “reluctant to disclose climate risks in relation to its facilities” and recommended that the business “take a lot more aggressive motion to lower its carbon footprint.” Much more than 90% of Toyota’s manufacturing internet sites are at superior hazard for at the very least one weather hazard, according to Greenpeace’s examination.

Toyota pushed back again on the research, expressing that it has labored to build a “disaster-resilient provide chain,” disclose its emissions and taken steps to protected water provides. Nearly 30% of Toyota’s auto output arrived from Japan in the 1st half.

“Toyota has a stable observe record of functioning in just its resources to restore its operations and generation in the event of local weather modify-associated disasters, earthquakes and fires with humanitarian aid and early restoration of impacted areas as the utmost priority,” the firm explained in a statement. “It is extremely hard to predict specifically when, in which, and what variety of disaster will arise in each individual state and area, we feel it is additional crucial to build a technique and human means to lower hurt by means of early restoration and other measures.”

Nissan reported it conducts long-phrase assessments of weather-adjust threats, and usually takes that into account when location strategy for its offer chain. “We’ll continue to hold a dialog with stakeholders and proactively fortify our actions,” Nissan spokesman Shiro Nagai claimed.

A spokesperson from Honda declined to comment on the report, which will be revealed soon.

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Jeff Lincoln

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