Below is an excerpt from ISS ESG’s recently released paper “Supply Chain Issues in Japan-What’s Needed for a Gold?” The full paper is available for download from the Institutional Shareholder Services (ISS) online library.
KEY TAKEAWAYS
- Effective supply chain management is critical to the achievement of global and just sustainable development. The overall impact of existing efforts has been limited to date.
- To improve profitability Japanese firms need to reduce their cost structure. Since production and labor costs in ASEAN countries are generally cheaper, many firms will continue to move production abroad.
- Existing examples demonstrate that Japan’s expansion overseas has opened firms up to new supply chain risks and challenges.
Source: ISS ESG Norm-Based Research (2021)
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By Yuka Manabe, Senior Associate, Bespoke Research & Advisory Solutions, ISS ESG Gavin Thomson, Head of Integrated Portfolio Management, ISS ESG Janina Magdanz, Country Rating Analyst, ISS ESG
