This article was first published in October 2021.

The upcoming COP26 will once again highlight the enormous importance of and challenges associated with addressing Climate Change for Japan Inc. Japanese corporates and financial institutions have been stepping up the expression of climate related aspirations and disclosures of current progress. But much more needs to be done, as the pressure is mounting and the time is running out. Japan Inc. as a whole needs to urgently develop strategic capabilities across actionable target setting, data analytics, technology acquisition, robust risk management framework, and effective stakeholder (especially clients and business partners) engagement approaches. Also importantly, these capabilities need to be developed in consideration of international standards as Japan Inc continues to accelerate the pace of globalization.