Many of my relatives and friends who visited my house for travelling in Japan usually find a lot of fascinating things. Out of many things that they were surprised, one common question that I've got is “Why does the bus TURN OFF the engine while it is waiting in the stop sign?” When I first came back to Japan, this is also one of the same questions that I asked to my Japanese colleague. The answer is “TO REDUCE CO2”. Natural counter-question is that “Isn't it more energy consuming if it turns on and off so frequently?” I found that there is scientific validation that it reduces gases emission more by minimizing idle engine time like the Japanese bus company does.
Japan Truly Stand For the Leader of Environmentally Friendly Economic Growth
JAPAN is well known for its environmental global leadership exemplified by Kyoto Treaty in 1993 to reduce global warming gas emission. I was curious about how good Japan is in terms of “ENVIRONMENTALLY FRIENDLY ECONOMIC GROWTH”. I thought that “GDP per CO2 emission” would be a good measure to assess a country’s environmentally efficient economic value creation. Luckily, I found the measure in wikkipidia. Click the link if you want to know the detail. Out of all the country, Japan ranked top 23rd. However, when we look at the top 20 GDP countries(where I believe more comparable given economic activity level), there are only 5 countries(Switzerland, Sweden, France, France, Netherlands, Italy) ahead of Japan in terms of GDP per emission.(find below table). Considering the 5 European countries economy is more reliant on financial, tourism, agriculture than Japan, Japan is truly the leader in energy efficient economic growth in similar industrial structure. Look at the US and China!! No wonder why they don’t want to comply global treaty!
World Leading Companies in Energy/Environmental Conservation : Toyota, Sanyo
Toyota’s outpacing to GM is famous story in US car market. While there are many other factors of Toyota’s success, visionary thinking and persistent effort to create energy efficient vehicle has finally paid off. Toyota’s hybrid car: Prius is so famous, and it is out of stock now especially when oil price reaches beyond $100 a barrel now. Energy sucking monstrous Hummer and Trucks produced by GM is losing ground, and GM is suffering to catch up the technology and commercialization capability gap. To buy time, they are playing dirty tricks by lobbying US congress through anti-trust restriction against the Japanese car maker.
Sanyo/Panasonic/Sony are the world dominant in solar powered panel business in the world.
So, why is Japanese company strong in energy efficiency field?
Energy Dependency and Crisis, Population Density, Environmental Disaster, Harmonious Culture
It is irony to find interesting but understandable learning from the “GDP per emission chart” one more time. Oil production countries like US, Russia, Middle Eastern Countries, China are so poor in the measures. It is universal that scarcity stimulate needs and creativity. Japan is 100% energy dependent. On top of that, oil crisis in 1970s created the urgency to take action to build economic structure/system to be more efficient. Broad based energy saving/efficiency measures were adopted to government, companies, and citizens.
When it comes to environmental hazard, Japan has experienced terrible disease(itai-itai) caused by toxic contamination of cadmiums. This has elevated national awareness to put strict environmental measures against water contamination through manufacturing sites.
Population density may be another factor to make Japanese to be more environmentally conscious. Japan is 23rd is population density measures, and #4 among OCED nations following South Korea, Netherlands, Belgium.
Finally, Japan is country of “harmony”. Environment is critical social capital that is being shared with others and nature. The “Wa” must require this interaction medium to be healthy. Otherwise, the close and fragile eco-system is very easy to break in this densely populated country.
Watch-out Government Environmental Initiative for business leaders
Japanese government impact to business in regulation is still very strong. It is wise for foreign business leaders to be fully internalizing the environmental policy in Japan and its impact. The best way is to visit the Ministry of the Environment. Take a look at the core policy. I am listing down several key initiatives and information that may need business leaders’ attention.
Environmental Reporting Guidelines : This may not be unique to Japan, but better be familiar.
Outline of the Basic Environment Plan : This is the master plan of Japan’s environmental program.
Environmental Tax : Save money and leverage it to refine strategy and to reengineer your company’s operation
Jaeho
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