In this series, I explore the “invisible cultural differences” I have observed through approximately 15 years of living overseas, working in international environments, and supporting Japanese companies with sustainability initiatives.
In the previous article, I discussed the difference between the “sincerity” that Japanese companies have traditionally valued and the “transparency” expected in global business. This time, I would like to consider how Japanese companies approach nature.
Nature as Something We Live With
In Japan, the four seasons are deeply embedded in everyday life and food culture, including the idea of enjoying seasonal ingredients and experiences. This connection with nature is also reflected in business. The seasons themselves can become products, attract people, and drive economic activity.
This close relationship with nature is also reflected in the Japanese view of nature itself. One idea underlying this is Yaoyorozu no Kami, or “the eight million gods,” which refers to the belief that divine spirits reside in all things in nature. Nature has traditionally been regarded with respect and as something to live alongside.
When I visit companies, I still see this value reflected in their activities. Many companies have continued initiatives such as cleaning areas around their factories, planting trees, and protecting water sources for many years. Many people in charge of these activities tell me that they do not consider them special initiatives, but simply “the natural thing to do if you want to continue doing business in the local community.”
I do not believe Japanese companies are lagging behind when it comes to addressing nature. Rather, I see their experience of continuing to do business alongside nature as a significant strength.
At the same time, having studied business at a university in the United States and worked there, I also found the idea of viewing nature as capital quite intuitive. At the companies I encountered, it was a natural part of business decision-making to consider questions such as, “What aspects of nature does this business depend on?” and “How would changes in those natural systems affect the business?” These considerations helped inform where to invest and which risks to prepare for. There seemed to be an established approach of understanding and managing the relationship with nature as systematically and rationally as possible.
After I began supporting Japanese companies, I was initially a little puzzled whenever I heard questions such as, “Where should we start when it comes to natural capital?” I wondered why companies that had placed such importance on nature for so long would feel uncertain about it.
However, through repeated engagements with companies, I have come to feel that while there are many initiatives aimed at protecting nature, there have been relatively few opportunities to organize them from a management perspective—that is, in terms of the relationship between the business and nature.
That is why I believe that companies that have long valued nature already have the foundations for natural capital management in place.
The First Step Is to See the Bigger Picture
When it comes to addressing natural capital, companies often assume that they need to examine every aspect of their business, raw materials, and locations in detail, one by one.
In practice, however, detailed analysis is rarely where we start.
The first step is to take a bird’s-eye view of the entire business and create a map showing which parts of the business depend on which aspects of nature, and where the business is likely to have a significant impact on nature.
In my work supporting companies, I have found that relatively few have organized these relationships in a way that can be shared across the organization.
Much of the information needed already exists within the company. The environmental department may manage water consumption data, the procurement department may have information on suppliers of raw materials, facilities management may oversee information on equipment and water intake, and the person responsible for business continuity planning (BCP) may manage disaster-related risks.
As we conduct interviews, the department we need to speak with changes from one area to another: environmental affairs, procurement, BCP, and so on. In many cases, the problem is not a lack of information. Rather, because the information is managed separately by different departments, companies have not necessarily had an opportunity to view the relationship between their business and nature as a whole.
For example, at a single factory, we might map out where its water comes from, what challenges the local water resources face, and which processes would be affected in the event of flooding or drought.
The first step in addressing natural capital is not to collect new data. It is to take the information scattered across the organization and redraw it as a single map of the relationship between the business and nature.
Once You See the Bigger Picture, Set Priorities
Once the overall picture has been mapped out, the next question is where to look more closely.
Given limited personnel and budgets, it is not realistic to analyze every business and location in the same level of detail.
At this stage, we also look beyond the company’s relationship with nature to identify where the sites and raw materials that are particularly important to the business are concentrated.
In our work with companies, we often start by asking questions such as:
“Which factory has the highest production volume?”
“Is production concentrated at a single location?”
“Where do you source your key raw materials?”
Take water management, for example. Knowing only the amount of water a company uses does not reveal how water flows through the business as a whole.
Where is the water used, and for what purpose? Is it used in the product itself, to clean equipment, or for cooling? Does the water evaporate or become wastewater? What treatment does that wastewater undergo before it is returned to the natural environment, such as rivers or the sea?
Only by mapping this entire flow can we begin to see the relationship between the business and nature.
Natural capital management does not begin with detailed analysis. First, map the relationship between the business as a whole and nature, and then determine where to focus. I believe this sequence is the first step toward natural capital management.
Turning Respect for Nature into Business Decisions
Many Japanese companies have continued to operate for generations while maintaining a close relationship with the nature around them.
At the same time, some companies have not yet fully organized how nature supports their business or what impacts may arise when natural systems change.
The first step toward natural capital management is not to launch a new environmental initiative.
It is about moving beyond simply saying, “We value nature,” and being able to explain: “Our business depends on this natural environment. That is why we will prepare for these changes and make decisions accordingly.”
Rather than adopting an entirely new set of values, it means connecting the respect for nature that Japanese companies have valued for generations to business decisions based on their relationship with nature.
I believe this is what natural capital management can look like when rooted in the way Japanese companies have traditionally approached nature.
Note: This article was translated from Japanese using AI. You can read the original Japanese version here.
