BUSINESS CONTINUITY PLANNING FOR CLIMATE
RESILIENT INDUSTRIES
Supporting countries in applying Japanese knowledge to build climate resilient industries
Photo: primeimages
Industries and their supporting infrastructures approaches to promoting industry resilience
AT A GLANCE (e.g., industrial zones, ports, roads, power, are diverse, reflecting the types of hazards
water supply and sewerage) have been key and risks they aim to manage, as well as who
Region: Global in creating jobs, catalyzing investments, and acts and why, and what types of tools and
bringing technological advancements into mechanisms are utilized. One approach to
Risks: countries. However, extreme weather events promoting industrial resilience is business
Earthquakes, floods, droughts, and more recently a viral pandemic threaten continuity planning and management (BCP
heatwaves, and coastal storm industries and national economies. While and BCM). The aim of BCPs/BCM is to
surges the importance of safeguarding industries maintain priority operations under any type of
against disasters and climate risks is being emergency
Areas of Engagement: increasingly recognized, many governments
Promoting resilient infrastructure, and firms still face barriers to undertaking the
Deepening financial protection, proactive measures necessary to enhance LEARNING FROM JAPAN: BUSINESS
Deepening engagements in resilience. CONTINUITY PLANNING AND
resilience to climate change MANAGEMENT
Through a US$1 million grant, the Japan- BCPs and BCM in firms and institutions first
World Bank Program for Mainstreaming gained attention in Japan after the September
Disaster Risk Management (DRM) in 11 attacks in 2001 in the United States, when
Developing Countries has supported the the operations of some multinational firms
development of a global knowledge program and financial institutions in Japan were
leveraging the extensive experience and affected. After the devastating experience of
expertise of Japan’s diverse resilient industry the Great East Japan Earthquake (GEJE) in
approaches. 2011, a 3.5 percent contraction in the economy
and its significant impact on firms and supply
Japanese industries have experienced chains, BCPs were further mainstreamed by
various shocks and disruptions to economic the national government as a key approach
development throughout their history due to to promoting industry resilience and
exposure to various natural hazards. As such, competitiveness. For example, the Japanese
FIGURE ES. 1 Resilient Industry: A Timeline of Key Actions
RESILIENT INDUSTRIES:
A TIMELINE OF KEY ACTIONS
RECOVERY MITIGATION &
nd
The b l t of f rms nd
PREPAREDNESS
st
R der
econom c zones to cont nue or
l nc
Un
qu c l resume oper t ons
Rs nd The b l t to sust n nd ncre se
s
n
str n to
1
compet t veness of f rms nd loc l
du n
n tz econom es
P l r
n
2 Pr o
rI
fo
Tm ln
ps
nc nd
t on ss
sl
St
t
3 M p redne
Pre
R
Industr
4 Response
nd Recover
Ds
ste
r St
r es
RESPONSE
The b l t of f rms nd econom c
zones to m n m ze d rect d m es
throu h proper emer enc
oper t ons nd to prevent
second r or c sc d n d m es
Source: Original compilation.
TABLE ES.1 Topics Covered in this Report
Cabinet Office has been providing guidance application and operation remain limited even (iv) gender; (v) technology and innovation.
to firms and institutions on how to assess
Topic and as threats intensify.
Types covered in report For example, Japan has learned that creating
evaluate risks for their BCPs and BCM within
Solutions Policy and legislative, financial and economic, infrastructure, an enabling environment
gender, for resilient
and technology and
its Business Continuity Guidelines. innovation industry is beneficial to the economy overall.
Natural hazards APPLYING JAPANESE LESSONS
Geophysical—earthquakes, tsunamis, and volcanoes National policies in Japan promote the
By developing BCPs/BCM, Japanese To address this critical knowledge
Hydrometeorological—floods gap by heavy rain
(caused and typhoons)of
implementation and storm
BCPs, and surges
the importance
Stakeholders related to
Public industrial resilience,
sector–national and the
local technical
government, infrastructure
of BCM andoperators,
DRM foretc.
private sector resilience
companies identify and implement measures
Manufacturing—firms,
assistance team began by including
gathering small and medium enterprises, value chains, etc.
Japanese
that can minimize losses and damages and and competitiveness has been reinforced
Industry—zones operators, associations, etc.
knowledge and their experiences of industrial
Financial sector—banks, insurance companies, etc. through the experiences of past mega
enhance post disaster response and recovery
development of diverse disaster
in the face organizations,
Civil society—various including women’s disasters. Industries that can survive and
associations
capacity by outlining what needs to be done
Sectors risks with the aim of providing a cohesive
Manufacturing sector and related sectors that enable its operations, thrive after disasterssuchmaintain
as energy, jobs and and
water
after a disaster event. A 2014 study showed
framework and
sanitation, applicable
transport solutions
(roads, for both
rails, ports, etc.), trade, livelihoods thereby promoting local and
industry, construction, finance, etc.
that Japanese manufacturing companies
World Bank task teams and governments national economic vitality. In the future, using
that had introduced BCPs experienced less
Source: Original compilation.
alike. A case study report was developed Japan’s experience as a guide, countries and
and The stakeholders listed are only those examined in the report, and do not include all of those important to the manufacturing sector (e.g., retail and logistics).
damage to sales following the GEJE Note:
highlighting the stakeholders and solutions regions that work toward promoting resilient
contingency planning in advance of disasters driving resilient industry in Japan, with a industries will be able to bounce back quickly
had helped firms recover more quickly than focus on the manufacturing sector: Resilient after a disaster occurs. Twenty-five Japanese
those without such plans showing how Industries in Japan: Lessons Learned in experts contributed to this report with a
preparation for disasters can pay off in the Japan on Enhancing Competitive Industries Japanese engineering company as the main
long run 1. in the Face of Disasters Caused by Natural technical partner.
Hazards. The report details good practices
While the emergence of resilience as a global and solutions for enhancing the resilience of These Japanese lessons and solutions for
discourse is timely, industry resilience is a industries through: (i)policy and legislative; industry resilience are also highlighted within
nascent discipline and frameworks for its (ii) financial and economic; (iii) infrastructure; the global flagship report (also focused on the
1
Matsushita, T., and E. Hideshima. 2014. “Influence over Financial Statement of Listed Manufacturing Companies by the GEJE, the Effect of BCP and Risk Financing.” [In
Japanese.] Journal of Japan Society of Civil Engineering 70 (1): 33–43. https://www.jstage.jst.go.jp/article/jscejsp/70/1/70_33/_pdf/-char/ja
manufacturing sector)— Resilient Industries: Japan-World Bank Program for Mainstreaming In addition, the same grant in Bangladesh
Competitiveness in the Face of Disasters. The DRM in Developing Countries, Japanese is also supporting the development of a
global report includes case studies from 13 experts conducted a technical assessment National Green and Resilient Economic Zone
countries to advance the Resilient Industries on the “Enhancing Competitive, Green and Guideline, which is to be piloted in select
Framework suggesting ways in which Resilient Industries in Bangladesh: Integrating economic zones in Bangladesh in the coming
countries can counter barriers to integrating resilience within the design and costing of years. The Guideline development is led
resilience measures, while mainstreaming Bangabandhu Sheikh Mujib Shilpa Nagar by Bangladesh Economic Zone Authority
disaster and climate change considerations (BSMSN) Economic Zones 2A & 2B.” The (BEZA) in partnership with the World Bank
into industrial development plans and studies entailed: (i) an assessment of the site’s through inputs from a multi-stakeholder
investments. For example, the report found underlying flood and seismic risks; (ii) review technical working group, including Japanese
that in Japan industrial park-wide BCPs are of existing and proposed key infrastructure stakeholders. For example, a collaboration
seen as effective policy tools for collective such as roads, land development, and between JICA and a private Japanese firm
contingency actions. Turkey has heeded this coastal protection, and an analysis of their provided a detailed review and inputs to
experience and their Organized Industrial hazard exposures, as well as the level at the National Green and Resilient Economic
Zone Guidelines drawing upon their global
experiences in economic zone development,
operation, and management. Further
collaboration is envisioned in piloting the
Guideline. The Guideline integrates lessons
learned from the Japanese good practices
and lessons report as well as the global
Resilient Industries Framework.
Similarly, in Turkey, under a US$1 million, the
Japan-World Bank Program for Mainstreaming
DRM in Developing Countries, a Guideline on
Preparation and Implementation of Business
Continuity Plans for OIZs in Turkey was
developed drawing upon local and global
good practices and lessons learned including
those from Japan. A Japanese expert was
engaged in the Guideline development and
implementation, drawing on the lessons
learned from the GEJE and Japanese
expertise on BCP and BCM. The Guideline
was designed to support OIZs in building
resilience to quickly respond to disruptions
Workers at an electronics factory in Dongguan, China. Photo: FangXiaNuo by any emergency or possible disasters
while keeping the business operational and
protecting people and assets. To ensure the
Zones (OIZs) management entities and firms which disaster risks are considered in sustainability of BCPs in OIZs, a three-day
have collaborated with on-site technicians their designs; (iii) recommendation and online training session was conducted with
and engineers, using BCPs to address lifeline evaluation, including cost effectiveness, of the more than a dozen government officials and
utility disruptions. proposed hard and soft measures that can stakeholders in August 2020; equipping the
further enhance the resilience the economic participants with the necessary knowledge to
Efforts to support resilient industries continue, zone and its infrastructures. The technical roll out BCPs across the country.
expanding to other sectors such as tourism assessment informed the design of a new
(through development of a report, Resilient US$500 million World Bank investment, the
Tourism: A Framework for Enhancing “Bangladesh Private Investment & Digital
Competitiveness in the Face of Disasters) Entrepreneurship Project” which is working
and supporting green and resilient economic to promote private investment, job creation,
zone developments in country, such as in and environmental sustainability in select
Bangladesh and Turkey. For example, in economic zones, including the BSMSN, and
Bangladesh, under a US$800,000 grant, the software technology parks.