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Feeling the heat: 44% of Japan firms see earnings hit from extreme weather

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Some 44% of Japanese companies see extreme weather events around the globe hitting earnings, a Reuters survey showed, highlighting the impact of scorching heat waves and torrential rains on firms in the world's third-largest economy.

Disaster-prone Japan is no stranger to extreme weather events, including typhoons, floods and blistering heat.

The monthly Reuters Corporate Survey of 502 large and medium-sized non-financial Japanese firms, in which 248 responded, showed a majority of non-manufacturers had already felt or expected to feel the effects of extreme weather on their earnings.The survey was conducted for Reuters by Nikkei Research from Aug. 30-Sept. 8, with firms responding on condition of anonymity to allow them to speak more freely.

Flooding has been a particular headache for Japanese companies. The January 2020 corporate survey found that 77% of companies had prepared business continuity plans for disasters, yet only 45% had taken concrete steps to protect their facilities.

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