Japanese companies are standing out amid global climate-change investment trends. GS Yuasa and Kurita Water Industries, both constituents of the Indxx Climate Change Index, have posted notable gains, while growing demand from AI and data centers is drawing attention to related companies.
Japanese companies rank among the top performers in the Indxx Climate Change Index, which comprises stocks contributing to efforts to combat global warming. Their year-to-date gains have been supported by corporate initiatives in Japan, against a backdrop of growing concern over the massive power consumption and heat generated by data centers.
Battery major GS Yuasa Corporation is up about 41% year to date, while water-treatment company Kurita Water Industries is up about 26%, making both standout top constituents of the index. Both have outperformed the index's 5% gain.
Investors are watching large-scale investment in Japan's semiconductor materials and manufacturing equipment makers, cleanrooms, factory infrastructure, water treatment and power management companies. Plans by flash-memory major Kioxia Holdings Corporation and South Korea's SK hynix to consider building plants in Japan have also drawn attention.
According to a survey by the Development Bank of Japan, domestic capital investment plans for fiscal 2026 are expected to rise 19.7%, led by manufacturers increasing investment in AI and data centers. Energy efficiency and cooling technology are expected to become increasingly important as demand expands in the early 2030s.