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July 14, 2010
 

Corporate Attitudes toward Environmental Issues

20% of firms see "favorable impacts" of green innovation on business

As the "Cool Biz" campaign enters its sixth year after starting in 2005, the government and government bodies are promoting it actively and private companies are adopting it. An increasing number of companies are considering environmental issues with a view not only on anti-global warming measures but also on industrial policy.

TEIKOKU DATABANK conducted a survey on companies' attitudes toward towards environmental issues..

Research Period :
June 21 to 30, 2010
Research Subject :
21,924 corporations across Japan
Valid Responses :
11,257 corporations (response rate 51.3%)

* This is the sixth survey on wage trends, following those conducted annually on June each year since June 2005.

 

64.3% expect green innovation to promote the use of "renewable energy" 20.0% see "favorable impacts" on their own business

Although a number of companies expect the advancement of green innovation to help their business recover, more than 40% of companies remain unable to measure its impacts on their own business. The government needs to clearly and extensively communicate the entire picture of green innovation, which is a pillar of its new growth strategy.

Outcomes Expected from Green Innovation
(multiple answers allowed)

%
# of firms
1
Widespread use of renewable energy (incl. sunlight, wind, small hydroelectric, biomass, geothermal)
64.3
7,236
2
Widespread use of next-generation lighting technologies such as LED and organic EL
44.9
5,051
3
Widespread use of energy-saving household appliances
39.9
4,497
4
Zero-emission houses and offices utilizing technology of eco-friendly houses and heat pumps
32.1
3,610
5
Earlier-than-expected realization of innovative technology development (incl. high-tech batteries, next-generation vehicles and highly
30.9
3,475
6
Promotion of redevelopment, reconstruction, and reform of office buildings and others that have aging problems (incl. safety issues and greenhouse gas emissions)
26.3
2,959
7
Reduce the carbon emissions of urban and regional structures by promoting use of public transportation systems
23.1
2,599
8
Promote resource and energy security strategies
20.7
2,331
9
Promote the development of Japanese smart grid systems
19.6
2,208
10
Promote investment in and financing for companies with low carbon emissions
12.7
1,426

Note 1: Followed by "Promote modal shift" (12.3%, 1,385 firms), "Other" (0.4%, 50 firms),"Don't know" (8.4%, 945 firms)
Note 2: Population parameter: 11,257 firms that made valid responses

 

Impacts of Green Innovation on Business

Note1: * refers to "Don't know" (12.0%, 1,295 firms)
Note2: Population parameter: 10,772 firms made valid responses

77.7% make actual efforts on environmental issues, including nearly 90% on energy conservation, and over 50% reducing or recycling

Although nearly 80% of companies are making efforts on environmental issues, downturns in business caused by the economic slowdown following the Lehman Brothers bankruptcy are making companies more severe in terms of cost-effectiveness.

Corporate Response to Environmental Issues

Note: Population parameter: 10,870 firms made valid responses

 

Approaches for Environmental Issues
(multiple answers allowed)

%
# of firms
1 Energy-saving (reduction in corporate costs through electricity/water-saving and such)
87.4
7,646
2 Reduction of waste generation
52.2
4,564
3 Promotion of recycling
50.6
4,428
4 Promotion of reuse of unnecessary items
34.2
2,994
5 Introduction of hybrid and/or electric cars
20.9
1,827
6 Acquired/will acquire ISO, eco-test, or eco-action 21 certifications
17.5
1,534
7 Development and production of energy-saving products/services
14.2
1,245
8 Tree plantation, rooftop gardening and the like
9.8
860
9 Utilization of natural energies such as solar & wind powers
6.0
526
10 Donation and support for environmental NGO/NPO
5.2
454

Note1: The above is followed by "Preparation of a report on environmental CSR" (4.8%, 417 firms),"Implementation of the carbon offset system" (2.7%, 233 firms), "Others" (1.1%, 92 firms), "Don't know" (2.4%, 213 firms)
Note2: Population parameter: 8,750 firms that replied that they are "actively engaged in" or "engaged in, but not actively" with regard to environmental issues

 

Roughly 40% expect BOJ's new lending program to help economic growth

Around half of the companies expect the Bank of Japan's new lending program to lead to economic growth, while the other half does not.

Will and To What Extent will The BOJ's New Lending Program Have on Economic Growth

Note 1: * indicates "Don't know" (26.2%?2,949 firms)
Note 2: Population parameter: 11,257 firms that made valid responses

 

27.7% are concerned about Japanese industry moving overseas if environmental costs rise

Nearly 30% of companies are concerned that Japanese industry may move overseas if the government implements measures that lead to increased environmental costs, such as those designed to help meet the 2020 goal of reducing greenhouse gas emissions by 25% from 1990 levels.

Likeliness that Japanese Industry Will Move Overseas If Environmental Costs Increase

Note 1: * indicates "Don't know" (33.5%?3,774 firms)
Note2: Population parameter: 11,257 firms that made valid responses

 

Three of every four companies said they were unlikely to move overseas if environmental costs increased.

Likeliness that My Own Business Will Move Overseas If Environmental Costs Increase

Note 1: * indicates "Don't know" (22.9%, 2,580 firms)
Note2: Population parameter: 11,257 firms that made valid responses

Companies already doing "Cool Biz," accounted for 59.1%, 3.4 points higher than a year earlier, Likely to rise to 70% in summer 2010

Changes in "Cool Biz" Implementation

Note: The projected final result in 2010 is based on the initial and final data in the surveys in 2005 to 2009.


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