Japan’s three biggest carmakers are facing the greatest risk from climate change among global auto companies because much of their manufacturing remains concentrated in the island nation, according to a study by Greenpeace.
Toyota Motor, Honda Motor and Nissan Motor will face major challenges ranging from hurricanes and flooding, to high temperatures and water shortages, in the coming years based on where their factories are located, said the environmental-advocacy group, which analyzed data from Moody’s ESG Solutions on physical risks.
When it comes to environmental, social and governance issues, the spotlight is usually on the impact that manufacturers have on the climate, or society. Yet, as changes in the weather make the impact of natural disasters more frequent and intense, carmakers will face "a high level of physical risk” of damage and disruption at their operational facilities as well as supply-chain disruptions, Greenpeace said.