Geopolitical Impacts on Green Transformation (GX) Strategies in the UK and Japan

The theme of the discussion “Green Transformation (GX) and Its Political Impact within the EU, Japan, and the UK”, brought together business leaders, policymakers and experts to address the strategic implications of GX policies, technological advancements and international collaboration.

The event opened with remarks emphasising the importance of the GX discussion in reshaping corporate sustainability, redefining global trade and fostering economic resilience amid shifting geopolitical dynamics.

Dr Indranil Nath, Chair of the IoD Japan Business Group, said: “Today’s discussion is an opportunity to delve into policies driving green transformation and explore how emerging technologies can redefine global trade and energy security.”

Participants underscored the critical need for international collaboration to achieve decarbonisation goals while balancing industrial competitiveness and energy security. The discussion explored how the UK and Japan could align policies and leverage mutual strengths to drive sustainable growth.

Delegates highlighted Japan’s commitment to achieving carbon neutrality by 2050. Osamu Mogi, Chairman of the Europe-Japan Relations Committee, Keizai Doyukai, remarked: “While the long-term direction of promoting GX and achieving decarbonisation remains unchanged, it is essential to understand each country’s unique circumstances and work together to find optimal global solutions.”

Key initiatives include government-issued GX bonds worth £20 trillion over the next decade and plans to mobilise public-private investments of £150 trillion (£1 trillion) to achieve these goals. Japan’s energy self-sufficiency rate, the lowest among G7 nations at 11%, highlights the urgency of these measures. Technological advances like integrating renewable energy sources and hydrogen innovations are critical to addressing rising energy demands from data centres and semiconductor factories.

Wales’s offshore wind capacity is projected to reach over 20 gigawatts, and Milford Haven, Europe’s second-largest energy port, is at the forefront of transitioning to hydrogen. Despite its advantages, key challenges were identified, including grid capacity limitations and the need for large-scale investments in hydrogen production. Increased international collaboration was proposed to establish resilient and efficient hydrogen and related technologies supply chains.

Discussions on emerging technologies like AI, blockchain and digital platforms emphasised their role in reshaping supply chains. “Technology is a crucial enabler for sustainability,” noted Ashley Cooke, Fellow of the Chartered Institute of Procurement & Supply. “AI and digital platforms can transform how we manage supply chains, offering transparency and improving operational efficiency.”

The importance of real-time data, collaborative platforms and intelligent contracts to address supply chain vulnerabilities and enhance transparency was highlighted. The geopolitical implications of critical mineral dependencies were also discussed, emphasising the need for resilient supply chain strategies that leverage nearshoring and diversification to mitigate risks posed by trade disputes and resource shortages. It was noted that Europe’s reliance on external sources for 98% of rare earth minerals underscores the urgency of diversifying supply chains.

Participants noted the differing priorities between Japan and the UK. While Japan focuses on energy self-sufficiency through technological innovation and diversified energy sources, the UK leverages green finance and scaling up renewable energy projects. Both nations recognised the need for nuclear energy, tiny modular reactors (SMRs), as a cornerstone of their decarbonisation strategies.

Supply chain resilience emerged as a shared concern, with discussions focusing on the reliance on China for critical minerals and the urgent need for diversified sourcing. Collaboration with regions like Africa and the Global South was proposed as a potential solution to reduce dependencies and foster sustainable trade partnerships.

AI-driven solutions and blockchain-enabled transparency were identified as essential tools for managing complex supply chains. Participants highlighted the importance of aligning procurement strategies with sustainability goals and the role of digital platforms in driving accountability across industries.

The discussion addressed the impact of shifting geopolitical dynamics, including the US-China trade rivalry and the influence of recent US policies on global trade.

“The geopolitical landscape is becoming increasingly complex,” remarked Roger Baker, IoD Director of Policy and Corporate Governance. “We need pragmatic approaches to navigate these challenges while fostering partnerships that align with shared global interests.”

Delegates agreed on the importance of fostering international cooperation to ensure that GX efforts align with shared global interests. The session concluded with a call for sustained collaboration between Japan and the UK to drive innovation and align GX strategies with economic growth and energy security goals. Participants expressed confidence that the insights shared during the roundtable would pave the way for new partnerships and tangible actions.

It was emphasised that joint public-private investments and harmonised regulatory frameworks are essential to accelerate GX initiatives. There was a call for greater international cooperation to address challenges like energy costs, supply chain resilience and the critical minerals shortage.

Recommendations included strengthening bilateral cooperation on shared GX priorities such as hydrogen technologies, nuclear SMRs and digital supply chain solutions. Both nations were urged to expand investments in sustainable technologies, align green finance strategies and diversify critical mineral sources.

Leveraging AI, blockchain and digital platforms was highlighted to improve supply chain transparency and efficiency. Participants also emphasised aligning policies with global GX goals to ensure sustainable economic growth.

The 10th IoD-Keizai Doyukai roundtable reaffirmed the importance of international collaboration in navigating the challenges of GX and unlocking opportunities for sustainable development.

The executive roundtable was attended by:

• Mr.  Osamu Mogi, Chairman of Europe-Japan Relations Committee and Director, Senior Executive Corporate Officer, Kikkoman Corporation
• Ms. Reiko Hayashi (Director and Deputy President, BofA Securities Japan Co., Ltd.)
• Mr. Hiroshi Kishino (Representative Director, Executive Vice President, Tokyo Gas Network Co., Ltd.)
• Ms. Izumi Okoshi (, Dentsu Group Inc.)
• Mr. Masamichi Terabatake (Representative Director President and CEO, Japan Tobacco Inc.)
• Mr. Masaaki Fujiwara (Managing Executive Officer, Suntory Holdings Limited)
• Ms. Nami Hamada (Outside Director, Coca-Cola Bottlers Japan Holdings Inc.)
• Mr. Satoru Hiraga (Representative Director & Chairman, Marsh Broker Japan, Inc.)
• Mr. Koichi Kawana (Chairman, RENOVA, Inc.)
• Ms. Hiroko Kawasaki (Director, Chairman of the Board, ENEOS Holdings, Inc.)
• Ms. Yuko Kitakaze (Global Chief Sustainability Officer, Dentsu Group Inc.)
• Mr. Toshiyuki Kosugi (Executive Managing Director, CEO, JBIC IG Partners)
• Mr. Yukinori Morishita (Managing Executive Officer, PwC Japan LLC)
• Mr. Naoki Naito (Executive Vice President, The Kansai Electric Power Co., Inc.)
• Dr. Nobuyuki Oda (Co-Founder, CEO, Managing Partner, Yanmar Ventures Co., Ltd.)
• Dr. Hiroyuki Ozaki (Director, Power Solutions Co., Ltd.)
• Mr. Teruhisa Tsugami (, RENATUS Co., Ltd.)
• Mr. Fumihiko Yoneda (Senior Vice President, Japan Registry Services Co., Ltd.)
• Mr. Yasutaka Mizutani (President, APAC, Colt Technology Services Co., Ltd.)d)
• Mr. Kanetsugu Mike (Chairman, Mitsubishi UFJ Financial Group, Inc.)
• Dr. Indranil Nath, FIoD, Chair of Japan Group, Institute of Directors, Member of the Advisory Board AI+Partners B.V., Member of Environment, Social and Governance, Livery Climate Action Group, Honorary Senior Visiting Fellow, Department of Computer Science, Engineering and Mathematics, City St George’s University of London.
• Mr. Andrew Lambert, Chief Executive Officer, EMS Limited, and Chair of International Trade Group, Institute of Directors.
• Mr. Adrian Pryce DL, Associate Professor, University of Northampton, Lord-Lieutenancy of Northamptonshire, and Chair, Sustainability Group, Institute of Directors
• Mr. Roger Baker, Director, Policy, Institute of Directors.
• Mr. Andrew Main, Director and Senior Advisor, INDOS Financial Limited
• Mr. Alister Elder, FIoD, Managing Partner, SGI Partners Ltd, Member of the Expert Advisory Group on Trade, and Co-Chair of Policy & Governance Group, Institute of Directors.
• Mr. Giles Ward, Non-Executive Director, Chubb Group, and Chair of Insurance Group, Institute of Directors
• Ms. Rosie Slater, Director, The Delphi Network Ltd.
• Mr. Nick Jordan, Managing Director, Trade Horizon Ltd
• Ms. Kruthika Anastasia Bala, Managing Director, ResourcesNow Ltd
• Mr. Stuart Philips, Managing Director, Shimadzu UK Limited
• Mr. David Syrad, CEO, Aki Limited
• Ms. (Dr.) Yildiz Tugba Kara, Visiting Lecturer, Regent’s University of London and Managing Director, Society 5.0 Institute.
• Mr. Shuichi Terashima, Managing Director, TMC Worldnetwork Ltd.
• Ms. Rie Hamaguchi, Special Advisor to Osaka Prefectural Government, and Vice-Chair, Japan Group, Institute of Directors
• Mr. Guto Owen, Director, Yanni Glan
• Mr. Ashley Cooke, Fellow, Institute of Directors and Chartered Institute of Procurement & Supply

Authors: Dr Indranil Nath and Dr Yildiz Kara, members of the IoD Japan Group research team.