Supporting Companies, Organisations and Groups【Private Companies】■

ANA HOLDINGS INC.

■

Nestlé Japan■

Osaka Gas Co., Ltd.

■

Hakuhodo DY Holdings Inc.

■OMRON Corporation■

Patagonia Japan■

Kyokuto Kaihatsu Kogyo Co., Ltd.

■

FUJI OIL HOLDINGS INC.

■

Kirin Holdings Company, Limited■

Fuji Xerox Co., Ltd.

■INPEX Corporation■

Sumitomo Mitsui Trust Holdings, Inc.

■

Konica Minolta, Inc.

■

Sumitomo Mitsui Financial Group, Inc.

■

Sumitomo Forestry Co., Ltd.

■

Yamaha Corporation■

Daikin Industries, Ltd.

■

Yamaha Motor Co., Ltd.

■Dai Nippon Printing Co., Ltd.

■

euglena Co.,Ltd.

■DSM Japan■

TEIJIN LIMITED【Organisations and Groups】■

Tokyo Electron Limited■

Junior Chamber International Japan■

Tokio Marine Holdings, Inc.

■

Japan Securities Dealers Association■

TOTO LTD.

■ Volunteers group to think about social challenges■

Nissay Asset Management Corporation(Ajinomoto Co., Inc., FUJIFILM Corporation,■

Japan Food Ecology Center, Inc.

Fuji Xerox Co., Ltd.)

June 2018, Japan
This is the English translated version of the Japanese Report published in March 2018.
URL: ‌http://www.ungcjn.org/sdgs/pdf/elements_file_4001.pdf
https://pub.iges.or.jp/pub/SDGs_Business_for_the_Future
Authors:
Akiko Ueno, Deputy Representative, GCNJ Office
Tomoko Dowaki, Assistant Manager, GCNJ Office
Saori Izumi, Assistant Manager, GCNJ Office
Shinji Onoda, Policy Researcher, Sustainability Governance Centre, IGES
Tetsuro Yoshida, Research Manager/Senior Researcher, Sustainability Governance Centre, IGES
Mizuki Kato, Policy Researcher, Sustainable Consumption and Production Area, IGES
Sayaka Yano, Library and Research Support Coordinator, Strategic Management Office, IGES
Hideyuki Mori, Executive Director, IGES
Acknowledgement:
The authors would like to express their sincere appreciation to those who contributed to writing this report, namely, thecompanies / organizations who cooperated in the questionnaire survey and interviews, as well as those who reviewed
and provided valuable comments on the draft, namely, Mr. Toshio Arima, Chairman, GCNJ, Mr. Toshihiko Goto, Board
Member, GCNJ, Mr. Keisuke Ota, Representative, GCNJ, Prof. Hidefumi Imura, IGES Senior Fellow, Ms. Ikuho Miyazawa,
IGES Fellow, and other partners and colleagues in GCNJ and IGES. In addition, the authors appreciate great efforts
made by IGES colleagues who translated and reviewed the English version, namely, Emma Fushimi.

Contents
1. Introduction

1

2. Overview of Research2

3. SDGs-related Business Trends in Japan and Internationally3

4. ‌Changes in the State of SDGs-related initiatives
as Seen in Yearly Comparisons

6

5. Integrating SDGs into Core Business I: Organisations

8

6. Integrating SDGs into Core Business II: Corporate Activities

13

7. Conclusion

18

Annex: SDG Initiatives by Companies

A-1

Abbreviations
CEO	���������������� Chief Executive Officer
CO2	��������������� Carbon Dioxide
CSR	����������������� Corporate Social
Responsibility
CSV	���������������� Creating Shared ValueDJSI	���������������� Dow Jones Sustainability
Index
EICC	��������������� Electronic Industry Citizenship
Coalition
ESG	����������������� Environmental, Social andGovernance
GCNJ	������������� Global Compact Network
Japan
GPIF	��������������� Government Pension
Investment Fund
GRI	������������������ Global Reporting Initiative
HLPF	��������������� High-level Political Forum
IGES	���������������� Institute for Global
Environmental StrategiesIR	��������������������� Investor Relations
ISO	������������������ International Organization forStandardization
JBIC	���������������� Japan Bank for International
Cooperation

JICA	���������������� Japan International
Cooperation Agency
MDGs	������������ Millennium Development
Goals
NGO	�������������� Non Governmental
Organisation
OECD	������������ Organisation for Economic
Co-operation andDevelopment
ODA	��������������� Official Development
Assistance
PRI	������������������� Principles for Responsible
Investment
RBA	����������������� Responsible Business Alliance
SDGs	�������������� Sustainable Development
Goals
TCFD	������������� Task Force on Climaterelated Financial Disclosures
UNGC	������������ United Nations Global
Compact
VNR	���������������� Voluntary National Reviews
WBCSD	��������� World Business Council for
Sustainable Development

1. Introduction

Over two years have passed since the adoption of the2030 Agenda for Sustainable Development with the
Sustainable Development Goals (SDGs) at its core, andactions in Japan toward achieving the SDGs have gained
momentum. Companies have approached the SDGs as
good opportunities to improve management and havelaunched a wide array of initiatives. In 2016, the Global
Compact Network Japan (GCNJ) and the Institute for
Global Environmental Strategies (IGES) conducted aquestionnaire survey and interviews mainly for GCNJ
members. Results were released in April 2017 in a report
entitled, “SDGs and Business in Practice—Early Actions
by Japanese Private Companies”.1 This year's report is acontinuation of this research.
The previous report showed, along with substantial data,that (1) most of the SDGs-related initiatives of Japanesecompanies were at the stage of utilising SDGs as
checklists to identify the consistency of existing corporate
missions and business with them, and (2) a group ofleading companies that have endeavored in the past
to engage in sustainability management and initiatives
related to the Millennium Development Goals (MDGs)
view the SDGs as a “business opportunity” and have usedthem in the marketing and branding of the company andmajor products, leading to increased profit and enhanced
corporate value. The report sent out the message thatcompanies will be called upon in the future to scale up
existing initiatives and further integrate the SDGs withineach business division as core business.

As the first report revealed trends in and an overview of
the SDGs-related initiatives by companies at that time,it evoked many responses both in Japan and overseas.2
However, while the previous report presented some hints
on how to incorporate the SDGs into core business, it
stopped short of presenting approaches in a holistic andorganised form. Moreover, following publication, theauthors received requests to also address responses tothe negative impacts of corporate activities.
Accordingly, to address the above demands, between
September 2017 and March 2018, GCNJ and IGES
again conducted a survey questionnaire and interviews
for mainly GCNJ members and compiled results into
this report. The chapters that follow first include a
review of trends involving the SDGs both in Japanand internationally, with secular changes in corporate
initiatives presented. Next, approaches to integration of
SDGs into core business are examined, focusing on the“organisations” that enable sustainability and the SDGs
embedded into business operations and management,
and the “corporate activities” that contribute to solvingsocial problems (Table 1 lists the items examined fromthese two aspects). Finally, the knowledge gained fromthis series of surveys and analyses is compiled in the
conclusion. Moreover, this report addresses responses tonegative impacts in its main body, and a collection of casestudies on corporate initiatives are included at the end of
this report for the reader’s reference.

Table 1: Items examined on SDGs and core business
I. Aspects of organisations(1) Corporate philosophy and vision(2) Understanding and commitment of top management

II. Aspects of corporate activities(8) ‌Core business (capturing and expanding business
opportunities)(3) Medium and long-term management plan and goal setting(9) ‌Core business (addressing management risks)(4) CSR division, executive committee(10) ‌Social business with small profit/Philanthropic activities(5) Mechanism to facilitate solutions to social problems(6) Reward systemassociated with core business(11) Improving market environment(7) Understanding of middle management and business units

1

2

1

‌
GCNJ/IGES(2017), “SDGs and Business in Practice—Early Actions by Japanese Private Companies”, http://ungcjn.org/sdgs/pdf/elements_file_2966.pdf. The English edition
was released in June 2017 and is available at the following URL: http://ungcjn.org/sdgs/pdf/elements_file_3032.pdf.
‌Specifically, the report received coverage in over 20 domestic media and led to public-speaking requests from various groups. Further, the report was addressed in the UNGCInternational Yearbook, the website of the WBCSD (World Business Council for Sustainable Development) and the SDG Knowledge Hub operated by the IISD (International
Institute for Sustainable Development), a Canadian research institute.

2．Overview of ResearchThis report is based on a review of the current status ofefforts by companies and organisations in Japan, withfocus on GCNJ members, to promote sustainable businessinitiatives and contributions aimed at realising the 17
goals outlined in the SDGs.
Fact-finding research on the SDGs implementation status,
using on-line questionnaires for GCNJ members, wasinitiated in 2015, with the current report covering thethird survey. The 2017 survey was conducted for GCNJ
members (total 254 companies and organisations3) on thestate of actions on SDGs for each SDG goal, challenges
faced by SDGs-related initiatives and future directions.
The survey was conducted between 1 September and 2
October 2017 and gained 163 responses from companies
and organisations. The survey was divided into twoparts, with one part containing identical questions asked
yearly to follow changes over time and another part withquestions specific to the survey year. Results of the former
are compiled in Chapter 4 and the latter are utilisedfor discussion in Chapters 5 and 6. Further, a portionof questions were designed to be identical to those ofa survey conducted annually for United Nations Global

Compact (UNGC) signatory companies.4
Additionally, between October 2017 and March2018 interviews were conducted with 30 companies/
organisations engaged in leading initiatives. Companies
interviewed included 15 of 69 companies that had alreadybegun initiatives and indicated willingness to publicly
release the content of these initiatives, as well as a totalof 15 companies/organisations among those selected as
ESG stocks of the Government Pension Investment Fund(GPIF)5 and GCNJ non-members. Moreover, consideration
was given to differences in company scale, industry typeand location of headquarters in selecting companies forinterviews.
Approximately 80% of GCNJ members (below referred
to as “members”) that responded to the survey can beclassified as large corporations, with 75% of respondentcompanies posting gross sales of over JPY 100 billion(Figure 1); moreover, 79% indicated engagement in global
markets (Figure 2). Accordingly, it is necessary to bearin mind when reviewing survey results that small andmedium-sized enterprises are generally not included.

Markets of respondents

Sales of respondents (JPY)
2%

7%

7%

7%

10%
9%

4%

Less than 2.5 bil.
75%

Global2.5 bil. - less than 25 bil.

25 bil. - less than 100 bil.
Over 100 bil.

Regional
79%

Not applicable

n=163
Figure 1: Sales of respondent companies/organisations

3
4
5

National
Local

n=163
Figure 2: Markets of respondent companies/organisations

2GCNJ member numbers as of 1 September 2017.
UNGC (2017a), “Progress Report: Business Solutions to Sustainable Development”, https://www.unglobalcompact.org/library/5431.
Stocks selected with environmental, social and governance criteria. Refer to the column on page 4.

2

3．SDGs-related Business Trends in Japan and Internationally

3.1 International trends
In 2017, the world has further seen dynamic activities on
the SDGs.6 This section will examine international trends
in corporate initiatives on the SDGs, focusing on UNGCrelated activities.
During the UN General Assembly in September 2017,
the UNGC held a Leaders Summit. CEOs from companies
engaged in pioneering activities around the world, suchas Paul Polman, CEO of Unilever, gathered for dynamic
discussions. Aside from company representatives, othermembers of the international community including leadersfrom civil society, academia, government and the United
Nations assembled to participate in networking andsharing of best practices related to SDGs implementation.
Moreover, individuals that have promoted links between
the SDGs and local level business were recognised as
Local SDG Pioneers. Ten business leaders from around theworld, including the CEO of Total, a French oil company
and the CEO of Turkcell, a Turkish telecommunications
company, were selected and recognised for theirachievements.
New tools were also released at the Leaders Summit.
These included the “Blueprint for Business Leadershipon the SDGs” 7, which explains how top management
can engage in SDGs implementation, and the “Business
Reporting on the SDGs: An Analysis of the Goals andTargets” 8 , which compiles a list of existing businessindicators that can be used to respond to the 169 targetsof the SDGs. These tools are outputs of the Action
Platforms9 established by UNGC towards achieving theSDGs and contain a wealth of information and hints forcompanies to promote the SDGs. Between 20 and 40
companies actively participate in each platform, andhopes are high that new business ideas contributing to
the SDGs will be generated from them. As of the writing of
this report (February 2018), Japanese companies such as
Sumitomo Chemical and Fuji Xerox are participating in theplatforms.

In the Asian region, an SDGs-related event was held in
August 2017 in Tokyo, jointly sponsored by the GC Local
Networks of Japan, China and Korea. Attended by Lise
Kingo, Executive Director of UNGC, this event focusedon the theme, “Transform Our World with SDGs”. The
results of awareness surveys in each country, particularly
concerning Goal 5 (gender equality) and Goal 12(consumption and production), were released and related
discussions were held. The importance of promoting
the SDGs above and beyond differing nationalities andstandpoints, was reconfirmed.10

3.2 Trends in Japan
Next, trends in Japan will be explored. The Governmentof Japan has worked to enhance opportunities to advancethe SDGs, including conducting a Voluntary National
Review (VNR) at the High-level Political Forum (HLPF), heldat the UN Headquarters in New York in July 2017, andutilising the Japanese celebrity Picotaro at governmentsponsored events. The government’s SDGs Promotion
Headquarters also established the “Japan SDGs Award”
to recognise companies and organisations carrying out
outstanding initiatives that contribute to achievementof the SDGs. The first awards ceremony was held in
December 2017. Winners attract considerable attention
and have the SDGs Award presented to them directlyby the Prime Minister, which could provide considerable
motivation for Japanese companies and organisations
engaging in SDGs-related initiatives. 11 The Japan SDGs
Award is expected to continue next year and beyond.
At the ministerial level, discussions took place within the
Ministry of the Environment (MOE) on revision of the Fifth
Basic Environment Plan. A course of action was revealedin August 2017 to realise integrated improvements in theenvironment, economy and society utilising the conceptsof the SDGs. (This plan was decided by the Cabinet in
April 2018.) The MOE again as a sequence of those in2016 held stakeholders’ meetings to share information on
pioneering SDGs-related initiatives by companies and local
governments. The Cabinet Office has decided to selectabout ten leading initiatives by local governments as

See GCNJ/IGES (2017) for trends up to 2016.
UNGC (2017b), “Blueprint for Business Leadership on the SDGs”, https://www.unglobalcompact.org/library/5461.
UNGC (2017c), “Business Reporting on the SDGs: An Analysis of the Goals and Targets”, https://www.unglobalcompact.org/library/5361.
9‌Other than the Blueprint for SDG Leadership and the Reporting on the SDGs platforms, UNGC has also established Action Platforms on the topics of innovation, finance, lowcarbon and resilient development and health. See the UNGC website for details: https://www.unglobalcompact.org/sdgs/action-platforms.
10
GCNJ 9th China-Japan-Korea Roundtable Conference, http://ungcjn.org/activities/topics/detail.php?id=222.
11‌Shimokawa, a town in Hokkaido, received the SDGs Promotion Headquarters Chief (Prime Minister) Award. Companies highlighted in the previous report were also recipients:
Saraya Co., Ltd. and Sumitomo Chemical Company, Limited, received the SDGs Promotion Headquarters Vice-Chief (Minister for Foreign Affairs) Award and ITO EN, LTD.
received the SDGs Partnership Award.
6
7
8

3

3．SDGs-related Business Trends in Japan and Internationally“Local Government SDGs Model Initiatives, and to provide
financial support for local government initiatives aimed
at achieving the SDGs. Future cooperation between local
governments and local companies is expected based on
this initiative. In addition, Japan International Cooperation
Agency (JICA) began accepting applications from
September 2017 for the “SDGs Business” survey projects,
which aim at addressing issues in developing countries
through businesses that contribute to achieving the SDGs.
Trends in the industrial sector include the revision of
the Japan Business Federation’s Charter of Corporate
Behavior in November 2017, the biggest accomplishment
throughout the year. The SDGs are central to the revised
Charter, which aims to maximise innovative technologies
such as IoT, AI and robotics to achieve a balance between
economic growth and addressing various social issues,
including health and healthcare, agriculture and food,environment and climate change, energy, safety anddisaster prevention and human and gender equality,
in order to create societies where each and every
person has a comfortable and active life. The more than
1,600 members of the Japan Business Federation are
representatives of Japan, and their adherence to the spiritof the Charter and the voluntary actions it contains could
wield considerable influence.
Similar trends to review charters and vision statements
are evident in other industrial organisations. The Japan
Chemical Industry Association formulated a vision in
May 2017 aimed at achievement of SDGs in Japan’s
chemical industry. Further, in September 2017 the Japan
Securities Dealers Association established the “Council

12
13

for Promoting the SDGs” as an advisory body to the
Association Chairman. Taking into account the content
of the SDGs, concrete activities in the areas of poverty,
hunger, global environment, ways of working reform,
women’s participation and education support for thesocially vulnerable are being considered. It is likely tofunction as promotion of ESG investment.
Thus, amidst global trends, actions to promote SDGsrelated initiatives in Japan have gained momentum.
Government and industrial groups are advancing
environmental improvements to boost the SDGs-related
initiatives of companies, which will make it even harder inthe future for companies to survive business competition
without addressing the SDGs. Incorporating SDGs intobusiness strategy and plans is becoming a mandatory
course, not an optional one, for companies.
Meanwhile, social issues in Japan have gained
considerable attention, such as corruption in accounting
and inspections by companies, long work hours, andsuspension of contracted employment. Further, according
to the Global Gender Gap Report 12, an analysis of thestate of gender inequality in countries of the world
released at the 2017 World Economic Forum, Japan has
a low ranking of 114th and has fallen behind in related
initiatives. Japan’s ranking on relative poverty rate is poorat second from last among developed nations, pointing
to a major social problem. 13 Both issues are closely
related to the SDGs and efforts to make improvements
within companies are possible. While initiatives in theenvironmental arena are one of the strengths of Japanesecompanies, further effort on social issues is anticipated.

World Economic Forum (2017), “The Global Gender Gap Report 2017”, http://www3.weforum.org/docs/WEF_GGGR_2017.pdf.
OECD (2017), “OECD Economic Survey of Japan”, http://www.oecd.org/eco/surveys/Japan-2017-OECD-economic-survey-overview-japanese.pdf.

4

3．SDGs-related Business Trends in Japan and Internationally

Column: Trends in ESG investment which strongly links to SDGs
ESG investment is investing that takes into consideration not only conventional financial information, but also thethree Environment, Social and Governance factors. It has garnered attention in recent years on the stock market.
The amount of ESG investments managed exceeds JPY 2.5 quadrillion globally and accounts for one quarter of
total investments. In Europe where ESG investing is particularly in demand, ESG investments account for 52.6% of
total investments.14
In international trends in ESG, the final report of the Task Force on Climate-related Financial Disclosures (TCFD)
of the Financial Stability Board was released at the G20 Summit held in Germany in July 2017. The TCFD is a task
force comprised of financial authorities from around the world specially launched by the Financial Stability Board.
The report called for companies to disclose information on climate change risks and opportunities, and on thestrategies being formulated to address them. It appears likely that actions to disclose information related to climatechange in annual reports will make progress.
In Japan, GPIF significantly contributes to accelerating the flow of ESG investments. GPIF is one of the world’s
largest public pension institutions and is an investing institution that annually manages assets equivalent toapproximately JPY 157 trillion. After signing the Principles for Responsible Investment (PRI) in September 2015,
GPIF’s rate of ESG investments that stood at 0.2% in 2012 rose to 35.0% in 2017, approaching the level of global
trends.15 Additionally in July 2017, based on information disclosed by companies, GPIF adopted three stock indices(2 broad, 1 thematic (participation of women)) that take ESG factors into account when including stocks. GPIF
has used these indices to begin investment on a JPY 1 trillion scale and will expand to JPY 3 trillion over the next
three to five years. In November 2017, GPIF called for applications for an environmental index, as expansion of ESG
investments is expected to continue in the future.
The questionnaire survey conducted for this report
asked whether selection of ESG stocks by GPIF had
influenced companies’ SDGs initiatives. A total of 43%
of respondents replied that it had influenced them,while 24% said there was no influence and 33% statedthey did not know. In free response sections andinterviews, some companies replied that the stock
selection was a result not an objective, while others
replied that realistically money was moving so theirlevel of commitment to initiatives in ESG would change,
reflecting differences in reactions. Indirect financing suchas bank financing is still mainstream in the businessworld in Japan. However, as indirect financing is also
included in the TCFD framework, the state of affairs
surrounding ESG has the potential to drastically change
in the future.

14
15

5

Q: ‌Following selection by GPIF of its ESG investment index,
were there any changes in your company’s SDGs-related
initiatives (including future plans)?

33%

43%

Changes took place

No changes took place
Do not know
24%

n=163

Figure 3: ‌Changes in initiatives due to GPIF’s ESG
investment index selection

Global Sustainable Investment Alliance (2017), “2016 Global Sustainable Investment Review” http://www.gsi-alliance.org/wp-content/uploads/2017/03/GSIR_Review2016.F.pdf.
Japan Sustainable Investment Forum (2017), “Third Sustainable Investment Survey in Japan”, http://japansif.com/171030.pdf.

4．‌Changes in the State of SDGs-related
Initiatives as Seen in Yearly Comparisons
Awareness on SDGs
This chapter will examine changes in initiatives on SDGs incompanies based on a yearly comparison. When working
to promote the SDGs within a company, awareness within
the organisation is an important starting point. According
to survey results, the level of awareness on SDGs has
risen annually (Figure 4) and “do not know” responses
have decreased year-by-year. Awareness on the partof top management, an issue discussed in the previous
report, has risen to 36%, nearly twice the 2015 value.
Meanwhile, although permeation to middle management
has increased slightly, awareness levels have stagnatedand remain at a low 9%, making increasing the level ofawareness among middle management an ongoing issue.16

item shows that companies are using the SDGs as an
approach to information disclosure and a lingua francawith investors. Likewise, 20% of companies chose theresponse “recognise its importance, but still seeking clear
objective”. This reveals a gap in the time that companies
require to discover the relevance of the SDGs—holistic
and interrelated development goals that are not legallybinding—to the corporate activities of their companies.
Main actors in promotional activities on SDGs
The previous report revealed that the majority ofcompanies had made connections between core businessand the 17 goals of the SDGs and were at the stage of
implementing checklists. What changes have taken placeover the year that has passed since then? While there has
been no change in CSR divisions predominantly serving as
the main actor in promotional activities on SDGs, when
options were added in 2017, it became evident thatmanagement and planning divisions as well as CEOs arealso involved (Figure 6).

Companies’ perception of SDGs
Referring to questionnaire survey results from 2016 and2017 (Figure 5), this section will examine how companies
perceive the SDGs. Some items cannot be comparedbecause new response options were added to the 2017questionnaire. However, it is striking that over 70%
of respondents have approached the SDGs from theperspective of business-minded corporate value. Further,
a 29% value for the newly created “respond to investors”

State of progress on SDG Compass17
An examination of the level of progress on the five stepsof the “SDG Compass” (Figure 7) has shed light on the

Please select the applicable status of SDGs awareness in yourcompany/organisation.
(multiple choice, *newly added response options in 2017)

Q: ‌What is important for your company/organisation to addressand engage in the SDGs?
(multiple choice, *newly added response options in 2017)

Well known
by CSRdivisions/oﬃcers

Increase corporate
value on sustainability

61%

20%

Well known by
top management
Well knownby middle
management

4%
5%
9%

*Well known
among
employees

8%Well known acrossaﬃliated companies
and other stakeholders
Do not know

3%
2%

7%

28%

84%
86%

36%

79%
77%

Strengthen
multi-stakeholder
partnerships

55%

New business
opportunities

60%
58%

Stabilise society
and markets

n= 2015:134
2016:147
2017:163
2015

15%
12%

Figure 4: Level of awareness in organisations

2016
2017

61%

52%

57%

*Increase company’svalue to society

74%*Recognise its
importance,but still seeking
clear objective

20%
29%

*Respond to investors
Not important
Others

1%

5%

5%
4%

n=2016:147
2017:163
2016
2017

Figure 5: Perception of SDGs
16

17

‌
The
results of a similar survey released by CSR Europe in the spring of 2017 showed that awareness among middle management is sluggish, revealing a situation identical to
Japan’s. The report is accessible at the following URL: https://globescan.com/the-sustainable-development-goals-sdgs-the-value-for-europe/.
‌The SDG Compass, written by GRI (Global Reporting Initiative), UNGC and WBCSD, provides guidelines for corporate actions on SDGs and is used by many companies as areference when engaging in the SDGs. The Japanese version was released by GCNJ and IGES in March 2016 and is available at the following URL: http://www.ungcjn.org/
sdgs/pdf/SDG_COMPASS_Jpn.pdf.

6

4．Changes in the State of SDGs-related Initiatives as Seen in Yearly Comparisonsstate of incorporation of the SDGs into management. In
2016, 54% of companies indicated they were on Step
1, “understanding the SDGs”. In 2017, Step 1 responses
declined while responses for Step 2, “defining priorities”(28%), Step 3, “setting goals” (13%), and Step 5, “reportingand communicating” (8%) increased, showing steadyprogress on SDGs-related initiatives. Nonetheless, thenumber of companies falling under Step 3 or above
remains few. These figures point to a state of affairs inwhich only a limited number of companies have set goals
and are at the stage of ascertaining impacts, while mostcompanies are struggling to find ways to incorporate theSDGs into management.

The broad “low understanding inside company” response
was divided into three separate responses covering,“middle management”, “general employees” and “directors”
in the 2017 survey. Accordingly, a 47% response rate
for “low understanding among middle management”
was remarkable. This is the downside of the previously
mentioned present state of awareness, making improved
understanding among middle management a pressing issue.

Challenges in implementing initiatives on SDGs
Lastly, a comparison of secular changes in recognitionof challenges (Figure 8) shows that responses on "lowsocial recognition" and "unclear government policy, lack ofgovernment involvement" have gone down significantly in2017. Previously mentioned government-led initiatives havebecome more widely known, likely influencing these figures.

As shown above, most companies have the intent toengage in SDGs-related initiatives through businessin order to enhance corporate value. Nevertheless,challenges remain in integrating the SDGs into corebusiness. Chapters 5 and 6 will examine approaches
for integrating the SDGs into core business activities,
providing concrete examples.

Q: ‌Who are the main actors in SDGs promotional activities withinyour company/organisation(multiple choice, *newly added response options in 2017)

Q: ‌What are the main challenges in working on SDGs?
(multiple choice, *newly added response options in 2017)*CEO

Low social
recognition

8%

Board ofdirectors

2%
5%Management
executive committee

4%

68%

47%

*Low understanding
among generalemployees

40%*Low understandingof directors

2%*Cross-cutting
projects

7%

Nothing in particular7%7%n=2016:147
2017:163

12%

2016
2017

12%

Q: Which step indicates current progress on the “SDG Compass”?

Lack of resources(ﬁnance, capability,
technology, etc.)

43%

Step 2Deﬁning priorities

22%

Step 3
Setting goals

9%

8%
4%

26%

31%
31%
49%
52%
47%

25%

18%

4%

33%

30%

n=2015:134
2016:147
2017:16310%10%Figure 8: Challenges in promoting SDGs

11%
13%

Step 4Integrating

66%

52%

Unclear government
policy, lack ofgovernment involvement
Appropriate
partnerscannot be found

28%

46%

Limited commitment
by top management

Figure 6: Main actors in SDGs promotional activities

54%

20%

Undeﬁned method
for internal
deployment

Unclear evaluation
methods such as
quantitative indicators

Step 1
Understanding
the SDGs

n=2016:99
2017:163

8%

Figure 7: State of progress on SDG Compass

7

77%

7%

7%
6%

Step 5
Reporting andcommunicating

62%
66%

*Low understanding
among middle
management

17%

Business division

Others70%

8%

CSR division*New businessdevelopment

63%

47%

Low understanding
inside company*Management andplanning division*IR division

The item of utmost concern was the “undefined method
for internal deployment”. As seen in the progress on the
SDG Compass, companies are still searching for ways toengage in the SDGs.

2016
2017

2015
2016
2017

5．Integrating SDGs into Core Business I: Organisations

In the report entitled, “SDGs and Business in Practice—Early
Actions by Japanese Private Companies,” jointly published by
GCNJ and IGES in April 2017, we defined “Integrating SDGs
into the core business” as the integration of sustainability and
SDGs into corporate management strategies (incorporation
into strategies and plans and implementation as corebusiness), in combination with the concept of CSV (Creating
Shared Value). That is to say, integration of SDGs into corebusiness must be examined from two perspectives—boththe “organisations” that enable sustainability and the SDGs
become embedded into management, and the “corporate
activities” that contribute to solving social problems.

determination of a sustainability strategy within the organisation
and requires attention to be paid to the management of
performance. “System” corresponds to mechanisms that
affect both individuals and the organisation such as company
regulations that comply with laws and codes of conduct, as
well as remuneration schemes, personnel and other systems.
“People” represents the skills and awareness of employees.
This report deals in particular with understanding of SDGs on
the part of middle management and business units. These six
components are all indispensable to companies. When theyfunction together like gears in a machine with Philosophy at thecentre, actual corporate activities are carried out in society.

First, a framework for examining “organisations” is presented.
Here, incorporation of the SDGs into core business is thereformation of organisations toward practicing sustainable
management that corresponds to the direction sought by
the SDGs. Therefore, the components of organisations,
namely, their “philosophy,” “leadership”, “strategy”, “structure”,“system”, and “people”, must be examined (Figure 9)18.

This chapter will examine the following items concerning thecomponents of organisations.
・Philosophy (1) Corporate philosophy and vision
・Leadership (2) ‌Understanding and commitment of top management
・Strategy(3) ‌Medium and long-term management planand goal setting
・Structure(4) CSR division, executive committee
・System(5) ‌Mechanism to facilitate solutions tosocial problems(6) Reward systems
・People(7) ‌Understanding of middle management andbusiness units“Philosophy” is a company’s reason for existence that forms
the basis of the organisation and influences the other fivecomponents. “Leadership” refers to the understanding,intention and commitment of top management related to
SDGs. “Strategy” involves the examination and analysis ofexternal and internal environments based on a corporate
philosophy, vision and mission to establish business objectives,
and the demonstration of concrete measures and plans toachieve these objectives. “Structure” calls for examination andLeadership

Strategy

Structure
Philosophy

SystemPeopleFigure 9: Components of an organisation

18
19

Moreover, unless otherwise mentioned, the below-mentioned
business case studies refer to the collection of case studies atthe end of this report. Other sources, including the “GCNJ/IGES
Interview Series: SDGs and Business for the Future”19 releasedon the GCNJ website, are indicated in footnotes.
Philosophy(1) Corporate philosophy and vision
A corporate philosophy is the most basic concept that
supports a company’s action plan and reveals the company’s
mission in society, or more specifically its reason forexistence. Further, a management vision concretely depicts
the ideal future of the company. Corporate philosophy
and vision statements incorporate the commitment ofmanagement and form the key mainstays that ensure thecompany’s mission in society spreads through to employees.
In interviews, the view was voiced that all 17 goalsof the SDGs can all be applied to corporate activities
somehow because of the wide scope of the three aspectsof sustainability—environment, economy and society.

The idea for Figure 9 is from Peter Doyle (1994), “Marketing Management and Strategy”.
GCNJ/IGES Interview Series: SDGs and Business for the Future, http://ungcjn.org/sdgs/archive/index.html.

85．Integrating SDGs into Core Business I: Organisations

However, when companies decide to contribute to SDGs
via their business, goals and targets to which they cancontribute become evident when they return to thestarting points of their corporate philosophies and visions
to confirm what their companies exist to do in society, as
shown in the case study below.

Q: ‌How often does your company/organisation discuss and evaluate
policies and strategies related to CSR/SDGs at meetings of your
Board of Directors (or corresponding committee)?

5%

18%

Discussed as necessary
40%

Business Cases in Point
Since the 1970s, Fuji Xerox has proposed new ways
of working and achieving fulfillment in work andlife under the slogan, “From Hustle to Beautiful”.
Following careful consideration of the corporate
philosophy and the role it should play in society,from among various social issues, Fuji Xerox
designated the promotion of Goal 8 (Decent Workand Economic Growth) as a major goal.
At the critical juncture of its 150th anniversary,
Nestlé stipulated its reason for existence in society
and settled on areas of focus for creating sharedvalue, as well as ways to relate these to the SDGs.
Further, the company formulated three long-term
objectives running up to 2030 to serve as support
for achievement of the SDGs and as guidelines forthe achievement of 42 commitments up to 2020.20

Leadership(2) Understanding and commitment of top management
The SDG Compass states that the leadership of top
management and executives is key to integration ofsustainability goals into business. Further, as already pointed
out in survey results for 2015 and 2016, the degree ofcommitment of top management greatly influences the
progress of SDGs, and the speech and actions of top
leadership are essential.21
What factors are key to gaining headway in recognition at
the top management level? Questionnaire survey results in2017 (Figure 10) showed that 77% of board members orcorresponding committee members are considering policies
and strategies related to CSR and/or the SDGs. Of these,
48% of companies, irrespective of frequency, have brought
CSR-related agenda items before their boards of directors.
These results are considered to factor into raised recognitionof SDGs among management.
Interviews revealed top management participation ininterviews, dialogues and other events to be an effective
method. Reasons for effectiveness could include aheightened understanding on the part of top management
gained through preparation for speaking at public forums,

Discussed as part ofnormal agenda
Not included in Board of
Directors meeting agendas
Discussed insubordinate committees

17%

Do not know
12%

8%

Other

n=163
Figure 10: ‌Frequency of discussion of CSR/SDGs in top-level committees

and increased opportunities to directly hear the opinions ofothers at these forums. Further, some interviewees statedthat recognition had increased due to IR information sessions
for investors, compliance with the Stewardship Codethat makes up the Principles for Responsible Institutional
Investors, and due to remarks from external directors.
Moreover, initiatives at the industrial association level
have served as a boost for recognition of SDGs by top
management and the development of initiatives. For
example, incorporation of the SDGs into the Charter ofCorporate Behavior of the Japan Business Federation(Keidanren) provided the motivation for member companies
to promote SDGs-related initiatives. This trend is particularly
strong in companies where top management serves as
directors for the Japan Business Federation.

Business Cases in Point
Owing to the fact that Hakuhodo DY Group createdthe official Japanese language icons for the SDGs andproduced a video for a public service announcement
in cooperation with the United Nations Information
Centre in 2016, the company received a visit from
Thomas Gass, United Nations Assistant SecretaryGeneral, in October 2017. Mr. Gass stated, “TheHakuhodo DY Group’s philosophy on ‘Sei-katsu-sha
Insight’ is linked to the SDGs philosophy of ‘leaving
no one behind’”. He engaged in opinion exchangewith company president Hirokazu Toda on a vision
for achieving the SDGs and corporate initiatives topromote understanding on SDGs.22
Takuya Nakata, President of Yamaha 23, recognises
the importance of incorporating the SDGs into
management and business activities, and shared his
own ideas on the subject in a UNGC CEO interview.24

Nestlé Japan case study, http://www.ungcjn.org/sdgs/archive/1802_nestle.html.
‌Survey results for 2015 are accessible at the following URL. Also, 2016 survey results are published in GCNJ/IGES (2017). http://ungcjn.org/common/frame/plugins/fileUD/download.php?type=contents_files&p=contents_file_178.pdf&token=0cc5015a26017b3e2d8db92992f25b4afc61af36&t=20180117175837.
22
Hakuhodo “UN Assistant Secretary-General visits to discuss the SDGs”, https://www.hakuhodo-global.com/news/un-assistant-secretary-general-visits-to-discuss-the-sdgs.html
23
Yamaha case study, http://ungcjn.org/sdgs/archive/1801_yamaha.html.
24‌CEO interviews conducted by UNGC were based on surveys targeting CEOs on sustainability conducted jointly by UNGC and Accenture, as well as personal interviews inaddition to questionnaire surveys. This large-scale survey covered over 1,000 people in over 100 countries. Survey results are published every three years in report form. The
latest report is available at the following URL: https://www.unglobalcompact.org/library/4331.
20
21

9

5．Integrating SDGs into Core Business I: Organisations

Strategy(3) Medium and long-term management plans and goal setting
Most companies in Japan have formulated and released
medium-term management plans that are key to company
strategy. Meanwhile, few companies have published longterm management plans. GCNJ survey results (Figure11) show that most companies have medium-term (3-5years) plans related to the SDGs, with this figure risingfrom 33% in 2016 to 41% in 2017. These results can beinterpreted to imply that over 40% of companies haveplans for medium-term initiatives on the SDGs, and can beevaluated from the perspective of ensuring effectiveness.
Q: ‌Please indicate the status of your company/organisation’s
business planning related to the SDGs.
There are businessplans/activities
until 2030
There are businessplans/activities
for 5-10 years

5%n=2016:147
2017:163

8%

2016
5%

10%

2017

There are businessplans/activities
for 3-5 years
There are businessplans/activities annuallyor for 1-2 years
Do not know

33%

17%

41%

26%

26%
29%

Figure 11: State of initiatives in medium to long-term plans

The extent to which medium-term plans are connected
to sustainability initiatives is also significant. A company’s
medium-term management plan and its CSR/sustainability
priority issues are generally managed separately. As
middle managers in charge of on-site work give priority toachieving the objectives of the medium-term management
plan, linking initiatives to solving social problems
through business activities is problematic unless there
is a movement to integrate the two. A few companies
interviewed exhibited a trend linking the work of business
units with sustainability initiatives.
Regarding methods for goal-setting, Japanese companies
are highly conscious of the need to achieve goals thathave been set without fail. Moreover, many objectives
are formulated using an incremental approach, with thetendency to release objectives over about three years.
Meanwhile, some companies included “goals”, “targets”
and “commitments” with uncertain attainability, setting
their medium-term objectives based on a vision of society
to be pursued (outside-in approach).25 The companies
with these types of goals recognised that if unable toachieve their goals, they would be expected to explain
their reasons and demonstrate remedial measures, asa form of information disclosure going forward. For
responses to the SDGs and climate change that requirelong-term efforts, as well as in relation to ESG, this type ofstance will be required even more in the future.

Business Cases in Point
In the past, the various departments in Sumitomo
Forestry received a notification on budget from thecorporate planning department and a separate budget
request relating to CSR from the CSR Promotion
Office. With separate budget objectives for businessactivities and environment/CSR objectives, it wasdifficult for activities to be productive. Thus, the system
was changed due to the encouragement of the CSR
Promotion Office, and budget requests were madeusing one notification from 2016. As a result, when
the headquarters carried out SWOT analysis26 on thebusiness environment, they took environment and CSR
aspects into consideration and were able to set goals.27
In the drafting of its CSV Commitment released in
February 2017, Kirin conducted in-depth discussions
with its overseas group companies and domestic
operating companies. When defining the term“commitment”, they received the following comment
from their overseas counterparts: “Japanese people
are very serious and have a strong tendency to
set targets with the prerequisite that they must be
achieved. A commitment is not a promise—it is aleap or an ideal. We’d like to see higher targets set
that are not mere extensions of efforts to date.”28

Structure(4) CSR divisions and executive committees
What sort of internal processes are companies engaging
in to insert SDGs into management plans? Many Japanesecompanies have set-up special departments to deal
with CSR, CSV or sustainability in order to formulate andimplement sustainability strategies as an organisation(hereafter called CSR divisions). CSR divisions engage ininitiatives to garner internal understanding and take thelead on progress management for CSR activities. Further,in some cases CSR divisions utilise their networks tocreate opportunities for interviews for top management.
Meanwhile, leading foreign companies in sustainability
initiatives such as Nestlé and DSM have not set up CSR
divisions. Progress on sustainability initiatives is managed
within each business division (with public relations
departments in charge of information dissemination on
initiatives).
The SDG Compass asserts that setting up sustainability
committees at the board of directors level, “allows time forstrategic discussions dedicated to sustainability priorities,‌ discussed in the opening of the SDG Compass, goals are “priorities” and “aspirations”. Targets are points to work to achieve or benchmarks, and commitments representAs
promises or resolution.
‌An analytical method to assist in development of strategies based on factor analysis of external and internal environments in business and marketing into the four categories
of Strengths, Weaknesses, Opportunities, and Threats.
27
Sumitomo Forestry case study, http://ungcjn.org/sdgs/archive/1801_sumitomo.html.
28
Kirin case study, http://ungcjn.org/sdgs/archive/1801_kirin.html
25

26

10

5．Integrating SDGs into Core Business I: Organisations

which can be especially valuable in the early stagesof business integration.” In several companies whereinterviews were conducted, committees established at
the management level were reported to be involved indecision-making.

Business Cases in Point
The person in charge of CSV strategy at Kirin
reported that CSV activities are not carried out inone’s own style. They require keeping an antennaraised to quickly collect information from aroundthe world in order to reflect global standards on
the advancement of CSV initiatives. Kirin’s GroupCSV Committee, which underwent renewal in 2016,
discusses the direction of the CSV policy, strategy
and plan for the entire group and monitors thestate of implementation of each company’s CSV
commitment. President of Kirin Holdings, Yoshinori
Isozaki, serves as the committee chairperson andthe presidents of major operating companies andexecutives in charge of strategy in Kirin Holdings sit
as committee members. The committee is a forum
for confirming the state of progress of the CSV
strategy and sharing information on issues acrossthe group as well as the success stories of groupcompanies.29

System(5) Mechanisms to facilitate solutions to social problems
The creation of mechanisms within a company to facilitate
solutions to social problems while creating economic
value through business is extremely important in the
integration of SDGs into core business. Further, thesemechanisms foster the thinking power and creativityof employees, and lead to deeper recognition of themeaningfulness of their work and the role played insociety. During interviews, respondents shared accountsof mechanisms to facilitate better product development
for people and the environment, mechanisms to facilitate
more sustainable business plans and investment decisions,and mechanisms to facilitate the creation of business that
contributes to solving social problems.

Business Cases in Point
Based on product life cycle assessment, DSM
provides ECO+ solutions—products that areenvironmentally friendly, and People+ solutions—better products for people’s lives. A closer
examination of requirements for raw materials
conducted through this initiative consequently led
to the avoidance of business risk.

DSM has also adopted a system of “internal carbon
pricing” that is utilised in internal decision-making.
For investment decisions, one plan is prepared that
includes 50 Euros/CO2-t pricing, and one that doesnot. In so doing, future business risk is examined
and investments are moved in the direction of lowcarbon technologies and energy sources.
Nestlé Japan runs an awards programme called
the “Innovation Awards”, an initiative in which all
employees participate as individuals. Employees
come up with potential problems faced bycustomers and solutions to them, then engage
in trials and verification. Results are submitted tothe contest and winning ideas are expanded incompany strategies. Funds are available within thecompany for testing out ideas.

(6) Reward systems
SDG Compass recommends integration of sustainability
goals and remuneration schemes as one method of firmly
embedding sustainability goals within organisations.
However, only 9.5% of companies responding to the UNGC
questionnaire have linked the remuneration of executives toperformance in sustainability.30 Further, in Japan only 14% ofcompanies utilise medium-term indicators in remuneration
schemes for top management, indicating insufficientincentives for top management to enhance corporate value
over the medium to long-term.31 Thus, it is difficult to saythat initiatives to link remuneration schemes to sustainability
and medium to long-term assessment have become
widespread globally. However, in addition to adding
incentives at the individual level, remuneration schemes
are an effective tool for sending messages to investors thatplace emphasis on medium to long-term initiatives. The
three case studies below show examples of remuneration
schemes targeted at middle and top management thatinvolve sustainability and ways of working.

Business Cases in Point
In 2017, OMRON revised its compensation structure
for directors and executive officers by adding
sustainability evaluation based on the Dow Jones
Sustainability Index (DJSI) to medium to long-term
performance-based compensation. Furthermore,
the revision was made, so higher the position in thecompany, greater the responsibility for medium- tolong-term performance. (For example, the ratio ofcompensation for our CEO was revised from 1:1:1
to 1:1:1.5 for base salary, short-term performancebased compensation and medium to long-termbased compensation respectively.32)

Kirin case study, http://ungcjn.org/sdgs/archive/1801_kirin.html.
UNGC (2017a), https://www.unglobalcompact.org/library/5431.
‌Corporate System Division, Ministry of Economy, Trade and Industry (2017), “Guidebook for Introducing Incentive Plans for Sustainable Corporate Growth as Board Members’Compensation to Encourage Companies to Promote Proactive Business Management”, www.meti.go.jp/press/2017/09/20170929004/20170929004-1.pdf.
32
OMRON, “Compensation for Directors”, https://www.omron.co.jp/about/corporate/governance/compensation/.
29
30
31

11

5．Integrating SDGs into Core Business I: Organisations

The bonus evaluation system of DSM for its top
300 employees takes into consideration bothfinancial revenue and the level of achievement ofsustainability goals, with a higher percentage geared
to sustainability goals the higher up the status in thecompany (For example, the ratio for the CEO is 1:1 forfinancial revenue and sustainability goals.)
Related to Goal 8 (Good Jobs and Economic Growth),
Sumitomo Forestry revised its personnel system toreduce long working hours and improve productivity.
Specifically, productivity improvement objectives
were incorporated into the performance evaluationsof managers, with the number of overtime hours ofsubordinates influencing bonuses.33

People(7) Understanding‌of middle management and business units
In general, middle management is in the position to gather
teams to carry out the work of executing business plans.
Financial objectives linked to business performance,such as sales and profit, are tied to the individual’s
performance. Further, business units and their activities
are directly connected to the company’s sales andrevenue, and are referred to as profit centres. Accordingly,
in order for companies to incorporate the SDGs in theircore business, it is essential for middle management andbusiness units to turn their attention in the direction ofsustainability within their work.
As shown in the secular changes in Chapter 4,
understanding on the part of middle management
remains low despite three years having passed since
the adoption of the SDGs. Topics previously discussed,
including (3) Medium and long-term management planand goal setting, and (5) Mechanism to facilitate solutions
to social problems, are suitable initiatives to enhance theunderstanding of middle management and business units
because they facilitate discussion among relevant partiesand detailed investigation. Aside from these methods,
interviews revealed that internal training and award
schemes were being utilised by CSR divisions to actively
encourage middle management and business units.

ideas as the persons in charge. Also, creation of
new business is promoted at meetings for directors
in charge of CSR and the R&D department.34
At Dai Nippon Printing Co., Ltd, the CSR andenvironment-related department got the business
unit involved in exhibiting at the Eco-Products
exhibition using the SDGs as a theme. This exhibit
gave the company the opportunity to take noticeof not only the functions and technologies of its
products and services, but also the array of ways inwhich the company can contribute to global goals
for societies. The company was also able to further
cooperation with external partners and productdevelopment using hints from the SDGs.
Every year OMRON holds an awards event for
employees called The OMRON Global Awards(TOGA), an initiative designed to further promote
the OMRON Principles. In TOGA, a team-based
theme is first declared and then a whole teamengages in activities based on that theme. It isa global initiative with an aim for all employees
across the world to be resonated with the OMRON
Principles.35

This chapter has taken a look at measures to incorporate
the SDGs into core business from the perspectiveof “organisations”. For most Japanese companies,
incorporating the SDGs which is a relatively new initiative,
requires them to work in multiple ways to address the six
components of organisations. In order for companies torefine their initiatives to be effective along with their corebusiness, companies must utilise their existing strengths
and engage in organisational reform with a mind towardinnovation.

Business Cases in Point
TEIJIN conducts discussions on the topic of theSDGs in CSR trainings for newly-appointed section
and department heads. The company expects
section heads to take leading roles in business
operations looking ahead to 2030, and department
heads to come up with more concrete business

33
34
35

Sumitomo Forestry case study, http://ungcjn.org/sdgs/archive/1801_sumitomo.html.
Teijin case study, http://ungcjn.org/sdgs/archive/1801_teijin.html.
OMRON, “Initiatives that support the implementation of our Management Philosophy”, https://www.omron.co.jp/sustainability/omron_csr/idea/practice/.

126．Integrating SDGs into Core Business II: Corporate Activities

This chapter will address approaches for integrating theSDGs into core business from the perspective of “corporate
activities”, including contributions made throughcore business ((8) Capturing and expanding business
opportunities, (9) Addressing management risks), (10)Social business with small profit/Philanthropic activities
associated with core business, and (11) Improving market
environment. Prior to presenting these approaches, aframework for consideration is shown as follows.
When engaging in the SDGs, companies are expected to
first make contributions via their core business activities,
which are directly linked to the creation of corporate
value. Chief examples include the development anddiffusion of environmentally-friendly technologies, andimproved access to education utilising ICT. Efforts to
reduce the environmental burden of corporate activities
and tackling the human rights and labour issues ofsuppliers also fall into this category.
Meanwhile, companies, as “public entities of society”, arealso actively involved in social contribution activities, suchas making donations and engaging in volunteer work,
referred to as traditional CSR. For instance, althoughsending volunteers and donations to a natural disasterstricken area is not directly linked to core business,companies engage in such activities voluntarily as a wayof contributing to society.36
In reality, social contributions and contributions carriedout through core business activities cannot be cleanly
divided into two categories. While there are businessactivities that make great social contributions but notmuch of a profit, there are also philanthropic activities
that relate in part to business activities. For instance,business in microinsurance targeting low-income groups
in developing countries corresponds to the former, while
forest preservation activities by a beverage manufacturer
corresponds to the latter. Initiatives such as these thatfall somewhere in between social contributions and corebusiness activities are often designated in management
strategies as types of footholds to be gained whenengaging in business in a new region or field of business.
These types of contributions can also be viewed fromtwo other perspectives. They can be viewed as ways tocapture or expand business opportunities, or as responses
36

13

to management risk (Relating to the above examples,ways to capture or expand business opportunities include
the development and diffusion of environmentally-friendly
technologies, improved access to education utilising ICT
and microinsurance. Likewise, reducing the environmental
burden of corporate activities, tackling the human rights
and labour issues of suppliers and forest preservation
activities correspond to risk management.)
Furthermore, the improvement of market environment
relates to activities overall. Examples include creation ofregulations or standards and creation of norms within
an industry, as well as participation and involvement ininitiatives that promote protection of the environmentand human rights. While improvements to market
environments are sometimes favourable for management
leading to expansion of business opportunities, theopposite is also often the case. Accelerated introductionof renewable energies due to limits on the use of coalfollowing the adoption of the Paris Agreement in 2015, is
one example. Figure 12 depicts the relationships among
various approaches.
Core business

Risks

・Reducing environmental
burden of corporate
activities
・Tackling human rights
and labor issues for
suppliers, etc.

・Developing
environmentally-friendly
technologies
・Improving access to
education with ICTuse, etc.

・Forest preservation
activities by beverage
manufacturers, etc.

・Microinsurance, etc.

Opportunities

Social business with small proﬁt/
Philanthropic activities associated with core business
Improving market environment

Figure 12: ‌Dimensions of corporate activities to integrate
SDGs into core business(8) ‌Core business: Capturing and expanding business
opportunities
Much has been said about the potential for SDGsrelated initiatives to open up business opportunities
for companies. It was pointed out at the 2017 World
Economic Forum that achievement of the SDGs could
bring about at least USD 12 trillion of economic value and‌
Genuinesocial contribution is more strongly geared to enhanced reputation and human resource development rather than business opportunity or risk. While recognising theimportance of this type of contribution, the authors of this report did not include it as a topic of exploration due to the report’s main focus being the incorporation of SDGs into
core business.

6．Integrating SDGs into Core Business II: Corporate Activities

the creation of a maximum of 380 million jobs. Further,
the CSR Europe report calculated business opportunities
for Goal 4 (Education), Goal 5 (Gender Equality), Goal 7(Energy) and Goal 11 (Sustainable Cities) to be over EUR
75 trillion.37
Here, we will have a look at which SDGs companies arefocusing on (Table 2). The 2017 survey showed that
85% of GCNJ members are engaged in SDGs-related
initiatives. Meanwhile, UNGC survey results were 75%.38
A comparison by goals showed that Japanese companies
are focusing on the following goals, in order from thelargest percentage of responses: 13 (Climate Change),
8 (Decent Work and Employment), 12 (Consumption
and Production), 3 (Good Health and Well-Being), 7(Energy), and 5 (Gender Equality), with the top four goals
exceeding half of respondents. Meanwhile, the order for
UNGC signatory companies overall was: Goal 8, 3, 5,
12, 9 (Industry and Technological Innovation), and 13.
Compared to UNGC survey results and when examinedfrom a global perspective, Japanese companies were
found to be highly engaged in implementing the SDGs
with the goals being addressed overlapping considerably.
Moreover, the level of engagement of Japanesecompanies for Goals 2 (Hunger: 15%) and 1 (Poverty:
17%) was found to be extremely low.
Table 2: SDGs being addressed by goal
Q: ‌What goal(s) within the SDGs has your company/organisation
selected for focusing its activities? Please choose all that
apply? (multiple choice)

GCNJ survey (n=163)

UNGC survey

13 (Climate Change)63%

8 ‌(Decent Work/
Employment)49％

8 ‌(Decent Work/
Employment)60％

3 ‌(Good Health/Wellbeing)49％

12 ‌(Consumption/
Production)

51％

5 (Gender Equality)45％

3 ‌(Good Health/Well-being)50％

12 ‌(Consumption/
Production)

42％

7 (Energy)46％

9 ‌(Industry/TechnologicalInnovation)40％

5 (Gender Equality)44％

12 (Climate Change)

39％

Of the 17 goals, GCNJ members considered Goals 3, 5,
4, 1 and 7, in that order, to have positive impacts on theircompanies (Table 3). Goals that overlap with the focus
of companies, namely Goals 3, 5 and 7, are recognised
as business opportunities and thus have likely beenaddressed in initiatives.

37

38

Table 3: Positive impacts of SDGs on companies by goal
Q: ‌Which SDGs do you consider to have a positive impact on yourcompany/organisation’s business? (multiple choice)2017 Ranking

Goal

No. of Responses

No. 1

3 (Good Health/Well-being)

62

No. 2

5 (Gender Equality)

43

No. 3

4 (Education)

33

No. 4

1 (Poverty)

32

No. 5

7 (Energy)

19

Meanwhile, views voiced in interviews revealed thateven when existing initiatives could be tied to goals or
targets, linking the SDGs to business opportunities wasdifficult. The needs of national governments, along withcompanies, citizens and international organisations werebrought together to formulate the SDGs. As such, it isimportant for companies to reexamine the SDGs as alist of issues (i.e. business opportunities) that require
engagement both domestically and overseas, and tocoordinate and strengthen initiatives in the direction ofgoals and targets for which contributions are feasible
while developing corporate management and businessstrategies that make the most of company strengths.
This approach can be depicted as: SDGs = contribution
to solving social problems = creation of innovation andsustainable management practice.

Business Cases in Point
Konica Minolta identified a shortage of nursing staff
and the increasing burden of nursing care as key
issues faced by Japan’s super-ageing society. The
company collected data on the actual status of nursing
care services and identified issues based on thedata obtained. It then developed the “Care Support
Solution®” to transform nursing care workflow. Thissolution significantly reduced the amount of nursing
staff physical activity and working hours, leading to
improved work productivity, enhanced service andimproved quality of nursing care for residents.
Kirin, amidst plummeting domestic hops productiond u e to th e ag e i n g p o p u lati o n o f p r o d u c e r s ,is working to enhance the quality and stableprocurement of Japanese hops. Kirin produces
a distinct beer with Japanese hops and aims topromote community revitalisation in production
areas. The company’s initiatives are not limited tocommunity revitalisation, but also are designatedas a major marketing strategy and a game-changer
in the beer market through the expansion of craft
beer.

‌
Frost
& Sullivan and GlobeScan (2017), “The Sustainable Development Goals (SDGs): The Value for Europe”, https://www.csreurope.org/sites/default/files/uploads/FS_WP_
Sustainable%20Development%20Goals_05112017_RD_0.pdf
UNGC (2017a), https://www.unglobalcompact.org/library/5431.

14

6．Integrating SDGs into Core Business II: Corporate Activities(9) Core business: Addressing management risks
Goals that have had negative impacts on companies wererecognised by GCNJ members to be Goals 8, 13, 12, 7,
3 and 9 (Table 4). As goals of focus were 13, 8, 12, 3,
7 and 5, there was greater overlap for goals regarded
as having negative impacts, compared to those thoughtof as wielding positive impacts (Table 3). Accordingly,
this implies that companies are engaging in the SDGs
more to respond to management risks than to capture or
expand business opportunities (this point requires further
investigation though).
Table 4: Negative impacts of SDGs on companies by goal
Q: ‌Which SDGs do you consider to have a negative impact on
your company/organisation’s business? (multiple choice)2017
Ranking

Goal

No. ofResponses

No. 1

8 ‌(Decent Work/Employment)
13 (Climate Change)

75

No. 2

12 (Consumption/Production)

72

No. 3

7 (Energy)

64

No. 4

3 (Good Health/Well-being)

62

No. 5

9 ‌(Industry/TechnologicalInnovation)

59

There are increasing numbers of companies engaging
in CSR procurement as a management risk response
in accordance with the Electronic Industry Citizenship
Coalition (EICC) Code of Conduct, related to Goals 8 and12. This can also be seen as a response to an increasing
number of human rights violations and environmental
destruction and deterioration taking place along supply
chains and leading to disruptions in management. At
the same time, companies belonging to supply chainswith multiple levels can increase their chances of being
selected as a trading partner by actively engaging insustainable procurement.
Moreover, at present the costs of reducing greenhousegas emissions to mitigate climate change, relating toGoals 13 and 7, are high. However, some companies are
introducing renewable energies in advance to enhancetheir ability to respond to future introduction of policy on
carbon pricing.
The 169 targets of the SDGs also serve as a list of longterm risks related to sustainability. It is important, both tothe companies themselves and to society, for companies
to refer to this list and take early action to determine
management risks for their companies. These types ofactions will not only serve as selling points externally, butalso have the potential to lead to benefits and business
opportunities.

15

Business Cases in Point
In an effort to strengthen the management of its
supply chain for all food related services, including
the perspectives of environmental protection
and human rights protection, the ANA Groupwas the first Japanese company to take part in
the Bluenumber Initiative from January 2017.
This initiative, which aims to link producers andconsumers to ensure traceability and transparency
through “visualisation” of supply chains, registers all
people and organisations involved in “food” with an
ID, including those at the distribution stage.
Fuji Xerox has set up a generous support system foryoung employees from rural areas working at Fuji
Xerox of Shenzhen, manufacturing site in China (e.g.
CSR suggestion box, continuing education schemes
and psychological counseling by phone or inperson). As a result, the employee turnover rate fell
to only 1/3 the average in Shenzhen despite highemployment mobility in the Chinese market, leading
eventually to quality improvement and benefits
compared to costs.

(10) Social‌business with small profit/Philanthropic
activities associated with core businessSocial business activities with small profit, or philanthropic
activities associated with core business, have to datebeen viewed as a cost in most cases. However, rising
recognition of ESG issues today enables companies tomake the most of their fields of expertise and engage instrategic activities, not merely as a cost, but also as aninvestment in future business and a response to medium
and long-term management risk. As such, it is important
for top managers themselves to take their stories, andexplain the significance and outlooks of activities torelevant parties.
Nevertheless, there are temporary costs involved insuch activities. If funding support can be received from
JICA, JBIC, government organisations or internationalorganisations, the hurdle for companies is lowered
considerably. A company that has utilised JICA schemes
stated that without funding, activities would have been
problematic, or at least would have taken a considerably
longer period to implement.

Business Cases in Point
In November 2016, Yamaha’s support initiated in
January 2016 for the introduction of instrumental
music education in Viet Nam’s compulsory
education was selected as an official project
under the “Public-Private Initiative to Disseminate
Japanese-Style Education Overseas (EDU-Port
Japan)” of Japan’s Ministry of Education, Culture,
Sports, Science, and Technology. Based on this6．Integrating SDGs into Core Business II: Corporate Activities

initiative, the Ministry of Education and Training ofViet Nam plans to introduce instrumental musiceducation in the revision of the country’s course
guidelines for planned after 2019. The company
expects an expanded market for instruments when
the students that enjoy music education play
instruments in the future.39
Tokio Marine Group, in cooperation with its
customers, donates a portion of funds from reduced
paper use in contracts in a scheme the company
created to contribute to environmental preservation
activities both in Japan and overseas. To date, thecompany has carried out mangrove tree-planting
in excess of 10,000 hectares in nine countries in
the Asia-Pacific region. Not only has this projectgenerated over JPY 35 billion in economic value andimpacted 1.25 million people, it has also contributed
to preservation of the global environment andbiodiversity and improved the quality of life ofpeople living near project areas. The project’s CO2
absorption and fixation results ( Tokio Marine Group
achieved a carbon neutral status for four consecutive
years up to 2016) and contribution to lessening
potential damages from tsunamis and storm tides,
has led to an enhanced reputation in the area.

(11) Improving market environment
In the current state of SDGs-related initiatives and ESG
investment, companies that play a part in sustainability
must make improvements to market environments inorder to survive. In addition to the setting of rules, such as
regulations and standards, the creation of leading norms
in industry and various initiatives are also included in thiscategory.40
For instance, although EICC is a voluntary code for
manufacturers and major suppliers in electronics-related
fields, the scheme now wields such great influence thatbusiness cannot be conducted without it. The UK’s
Modern Slavery Act and California’s Transparency inSupply Chains Act are examples of the type of legislationthat EICC works toward. For companies in the electronics
sector, environmental and human rights considerations inprocurement are already imperative. Further while EICC
has recently changed its name to the RBA (Responsible
Business Alliance), its influence is extending to sectors

other than electronics.41 PRI, an initiative that advocatesthe inclusion of ESG factors in the decision-making
processes of institutional investors, has also exerted
strong influence.
Regardless of their activities at the global level, thenational level or the local level, companies are expected
to share their experiences and knowledge and makeactive contributions to market improvements. Involvement
in market improvement gives companies the chance toshow their engagement ahead of others, thereby capturingbusiness opportunities and responding to management
risks. With regards to international initiatives, Japanesecompanies to date have often waited for regulations andreports to be discussed and established in Europe orNorth America, only later agreeing to them. In the future,
Japanese companies will be called upon to contributeto the formation of global trends as they expand theirbusiness and contribute to sustainability.

Business Cases in Point
Nestlé has participated in forums for debate amongcorporate leaders, such as forums for creatinginternational regulations like the SDGs and ISO, aswell as the World Economic Forum, and has actively
contributed input and engaged in information
dissemination. Further, the company has broughtthese discussions home and utilised them in its goal
setting and strategy creation.42
The Japanese company Daikin has collaborated
with national governments, internationalorganisations and other companies in the industry
to introduce an index and labels to appropriately
evaluate energy performance in emerging nations
where air conditioner use is on the rise. The
company has provided support for the widespreaduse of R32, a next-generation refrigerant, and has
realised widespread expansion of its core businessin air conditioners while contributing to ozone layer
protection and global warming mitigation.
At the local level, the Japan Food Ecology Center,when launching a food waste recycling project,made an active contribution to promoting therevision of laws and regulations by providing
materials to a government council.

‌
Yamahacase study, http://ungcjn.org/sdgs/archive/1801_yamaha.html.
‌The SDG Industry Matrix published by the UNGC introduces international initiatives and principles by sector and is a good reference. The Japanese translation is available atthe following URL: http://ungcjn.org/activities/topics/detail.php?id=204.
41
Refer to the following website for details on RBA: http://www.responsiblebusiness.org/.
42
Nestlé Japan case study, http://www.ungcjn.org/sdgs/archive/1802_nestle.html.
39
40

16

6．Integrating SDGs into Core Business II: Corporate Activities

The previous chapter defined what it means to integrate
SDGs into core business. While integration of the SDGs
into core business activities is to be aimed for, this chapter
shows that social business with small profit, philanthropic
activities associated with core business and improvements
to market environments are also important in conjunction
with efforts to create sustainable societies. Merits forcompanies that engage in SDGs-related initiatives, as
outlined in the SDG Compass, including “strengthening
stakeholder relations”, “keeping the pace with policy
developments” and “stabilising societies and markets”,
can be attained through the various corporate activities
covered in this chapter.

17

７．Conclusion

Up to this point, this report has given an overview
of trends and secular changes both in Japan andinternationally and has examined the integration of
SDGs into core business from the two perspectives of“organisations” and “corporate activities”. Lastly, theknowledge gained from this series of surveys and inquiries
is compiled herein.
Domestic and international trends involving the SDGs
International trends include the development of a widearray of tools for companies to refer to when engaging
in SDGs-related initiatives. From among the UNGC
Action Platforms, companies from around the globe haveparticipated in the Blueprint and SDGs Business Reporting
platforms and assembled tools for contributing to the
SDGs. In order for Japanese companies make full use of
these tools, it is important not only that they be translated
into Japanese, but also that they are incorporated in amanner that is meaningful for the companies themselves.
Companies cannot merely wait for these tools to bear
fruit—it is also important for companies themselves to get
involved in action platforms.
The activities of the Japan Business Federation and GPIF
have had an especially large impact domestically. They
have raised the bar for initiatives throughout the industrial
sector and at the same time served as a boost forcompanies engaged in pioneering initiatives. The adoptionof ESG indices by GPIF has turned the attention of IRdivisions and top management in the direction of long-term
growth and has enhanced understanding of related SDGs.
Changes in the state of SDGs-related initiatives as seen inyearly comparisons
In last year’s report, a low level of understanding among
top management and low awareness in society were
specified as challenges faced in the implementation of
SDGs-related initiatives by companies. However, thisyear’s research showed improved understanding among
top management and a decrease in responses citing
low societal recognition as a challenge. Yet, the level ofunderstanding among middle management has remainedat an extremely low 9%.
A total of 74% of GCNJ member companies recognised
the relationship between SDGs and corporate value,
while 85% were engaged in some form of SDGs-related
initiatives. Companies that do nothing are now exceedingly
few and overall progress was evident on the steps of
the SDG Compass. Meanwhile, over 50% of companies

cited the method of deployment within the company to
be a challenge. Likewise, when the number of companies
remaining on Step 1, “understanding the SDGs” and Step2, “defining priorities” are added up, they total over 70%
of respondents, showing that many companies are stillsearching for ways to integrate the SDGs into core business.
Approaches by companies to integration of SDGs into
core business
Chapters 5 and 6 discussed ways of integrating the SDGs
into core business and examined 11 items categorised
into the two aspects of “organisations” and “corporate
activities”. As shown below, these items are interrelated
and it is clear that in many cases one initiative will havemultiple effects (e.g. improvements to internal company
structures and the enhanced understanding of middle
management, risk response and improvements to market
environments).
As companies are increasingly expected to engage in the
SDGs as business opportunities, Goal 3 (Health and Wellbeing), Goal 5 (Gender Equality) and Goal 7 (Energy) arerecognised as business opportunities and initiatives arebeing advanced. Meanwhile, more effort has been put
into goals perceived to be linked to negative impacts forcompanies (i.e. management risks). Meanwhile, even when
existing business contributes to solving social problems,
it may not be recognised as an SDGs-related initiative.
However, it is essential that companies not merely connect
the SDGs to company business. Rather, companies should
consider the social issues and management risks involvedin the SDGs as seeds of business and work to grow themin ways that strengthen and expand existing business andlead to developments in new business.
Effective measures to boost this type of approach could
include the adding of incentives through the creationof mechanisms within a company, targeting either theorganisation or individuals, to facilitate solutions to social
problems. In particular, efforts are required to create
mechanisms, processes or assessment schemes that
directly connect the mission or performance objectivesof middle managers with low level of SDGs awareness, tocorporate activities that involve the SDGs.
Additionally, initiatives to improve market environments
can become a means of changing risk into opportunity. If
a competitive environment is created in which a company
can make the most of its strengths to contribute tosustainability, the end result is growth of the company.

18

７．Conclusion

To this end, effective methods include the buildingof cooperative relationships with government andinternational organisations, involvement and participation
in a variety of initiatives and the creation of new trends.
Further, social business with small profit and philanthropic
activities associated with core business become themeans to capturing new business opportunities. Yamaha’s
support for the introduction of musical instrument
education in Viet Nam is a prime example.
In order for these types of activities to be considered
as investments, not costs, companies must steadfastly
incorporate elements of the SDGs into medium andlong-term plans and strategies. Medium and long-term
objectives and commitments should ideally be ambitious,
not limiting them to readily achievable. It is essential thatthese types of plans or objectives are based on clear
corporate philosophy and vision, and are treated as tools
to work toward realising the company’s ideals.
When the goals or targets of the SDGs are integrated
into a planning system with the corporate philosophy on
top, the roles of private companies in society becomes
clearer and this helps employees become motivated andstrongly committed to their work. The leadership andcommunication of top management has an especially
important role to play in this process.
Importance of dialogue and partnerships
Staff in charge of CSR and sustainability at leading
companies in SDGs-related initiatives have continuallypromoted dialogue both within the company andexternally, involving top management, business units
and middle management. Within their companies, top
management and employees alike view the SDGs as their“own work” and have arranged systems and institutions
within the organisation to create business.
Talks and interviews with top management, release of
CSR and integrated reports and communication withstakeholders at IR information sessions all fall within thescope of a company’s external dialogue. Specifically, in
2017, many leaders from the United Nations and overseas
companies visited Japan and engaged in dialogue with the
top management and executives of Japanese companies.
This type of dialogue provides Japanese companies withgood opportunities to reconfirm the significance of theirsustainability activities to date, and gives them momentum
going into the future. It is also a chance for companies
to promote a deeper understanding of their activities
among persons outside the company. Ideally companies
will get actively involved in these types of dialogues going
forward.
It is evident in the case studies presented in this reportthat companies have developed a variety of partnerships,with governments, international organisations and NGOs,

19

to promote the incorporation of SDGs into core business.
The potential response of a single company to increasingly
complex social issues is limited. Accordingly, it is essential
for companies to further engage in dialogue with relevant
parties both internally and externally to build partnershipsthat take advantage of each party’s strengths.
Importance of corporate philosophy
A corporate philosophy is a company’s reason forexistence, and a company should be able to find one of
the 17 goals or 169 targets of the SDGs that corresponds
to its philosophy. When companies with high sustainability
assessments advance initiatives to incorporate SDGs into
core business from both perspectives of “organisations”
and “corporate activities”, corporate philosophy is firmly
embedded at the core of these initiatives. Companies
that are presently searching for SDGs-related initiatives
should first return to their corporate philosophiesand contemplate the roles they could play in building
sustainable societies. They can then refer to the SDG
Compass and this report to deliberate on concrete
initiatives.
Remaining issues
This report has aimed to provide hints for companies
engaging in SDGs-related initiatives based on the results ofsurveys that targeted a wide range of industries. However,
the report has not ventured into other areas, such asaddressing each of the goals of the SDGs and industryspecific issues. The issue of poverty in Japan has become
more serious and substantive improvements to the issueof gender equality are hard to find. These are grave
issues linked to a decline in Japan as a whole. Researchand investigation must be advanced to determine how
companies view these issues as management risks orbusiness opportunities linked to real problem-solving andwhat types of initiatives they are promoting.
Furthermore, the relationship between the SDGs and
ESG is an issue that should be more thoroughly explored.
Disclosure of financial information is merely the public
release of a “business report card” from past to present,
and non-financial information is an important factor inmeasuring future performance. Companies are expected
to increasingly move towards management focusedon the SDGs and ESG in the future. Studies on ideal
approaches to highly effective long-term management withconsideration of these points will have great significance.
Meanwhile, from the perspective of achieving the SDGs
and corporate value, the timely creation of assessment
methods that further incorporate elements of the SDGs is
anticipated from those assessing ESG.
Nearly half of respondents to the questionnaire selected“unclear evaluation methods such as quantitative
indicators” as a challenge faced. Following corporate
activities to incorporate the SDGs into management,
ways of measuring and demonstrating the specific level of７．Conclusion

contribution to the goals and targets of the SDGs being
addressed represent another issue that remains to be
examined.
In conclusion
The preamble of the 2030 Agenda reads as follows:“This Agenda is a plan of action for people, planet andprosperity. It also seeks to strengthen universal peace inlarger freedom. We recognise that eradicating poverty inall its forms and dimensions, including extreme poverty,

is the greatest global challenge and an indispensable
requirement for sustainable development.” As coreelements of the Agenda, the SDGs provide opportunities
for returning to our roots as global citizens. Companies arecalled upon to engage in true sustainable management
based on their respective company missions. This report
is designed to serve as a reference to companies engaged
in SDGs as their core business, and the governments,
international organisations, NGOs and researchers that
support them.

Source: United Nations Information Centre

20

Annex: SDGs Initiatives by Companies

List of case studies 1■

ANA HOLDINGS INC.

■

Osaka Gas Co., Ltd.

■OMRON Corporation■

Kyokuto Kaihatsu Kogyo Co., Ltd.

■

Kirin Holdings Company, Limited■

INPEX Corporation■

Konica Minolta, Inc.

■

Sumitomo Forestry Co., Ltd.

■

Daikin Industries, Ltd.

■Dai Nippon Printing Co., Ltd.

■

DSM

■

TEIJIN LIMITED■Tokyo Electron Limited■

Tokio Marine Holdings, Inc.

■

TOTO LTD.

■

Japan Food Ecology Center, Inc.

■

Nestlé Japan■

Hakuhodo DY Holdings Inc.

■

Patagonia Japan■

FUJI OIL HOLDINGS INC.

■

Fuji Xerox Co., Ltd.

■

Sumitomo Mitsui Trust Holdings, Inc.

■

Sumitomo Mitsui Financial Group, Inc.

■

Yamaha Corporation■

Yamaha Motor Co., Ltd.

* ‌The SDGs-related initiatives described in this section introduce merely a part of each company’s activities. Please refer tothe respective websites of companies for more comprehensive explanations on initiatives.
More detailed information can also be found on the GCNJ website, “GCNJ/IGES Interview Series: SDGs and Business for
the Future” (http://www.ungcjn.org/sdgs/archive/index.html Japanese only). (On the case page of the companies seen at
the website, the individual URL of the interview article is listed.)

QR Code for accessing
the “GCNJ/IGES Interview Series”

1‌ joint research report by GCNJ and IGES released in April 2017, contains the case studies of a total of 11 companies (AEON CO., LTD.; Ajinomoto Co., Inc.; ITOCHU
A
Corporation; ITO EN, LTD.; LIXIL Corporation; OMRON Corporation; Saraya Co., Ltd.; Sompo Holdings, Inc.; Sumitomo Chemical Company, Limited; Sysmex Corporation; Takeda
Pharmaceutical Company Limited). http://ungcjn.org/sdgs/pdf/elements_file_3032.pdf

Ａｰ1Annex: SDGs Initiatives by Companies

ANA HOLDINGS INC.

Taking action on SDGs as "the wings within ourselves"
As a responsible global corporation, the ANA Group
attaches great importance to the SDGs. Based on dialogue
with stakeholders, priority issues (Materiality) for the ANAGroup were determined to be CO2 emissions control,
human rights, diversity & inclusion (D&I), and communitybuilding in both the domestic and overseas locations
serviced by ANA. A variety of initiatives are underway.
Specifically, the ANA Group was the first Japanesecompany to take part in the Bluenumber Initiative, runby the Bluenumber Foundation worldwide. This initiative,
which aims to link producers and consumers and ensure
traceability and transparency through “visualisation” ofsupply chains, registers all people and organisations
involved in “food” with an ID, including those at the food
distribution flow. Through these activities, the ANA Groupaims to strengthen the management of its supply chain
for all food related services, including in-flight meals,
and thereby contribute to environmental protection andrespect for human rights. These activities enable ANA tocontinue to provide passengers with safe, reliable foodproducts, and to contribute to achievement of the SDGs
by supporting producers.
Making the most of its position in the airline industry
that provides physical links between people and things
that are far apart, the ANA Group engages in working
toward solutions to a variety of social issues throughtransportation support. ANA not only provides support
for transportation of experts and relief supplies todisaster-stricken areas, it also contributes during therecovery stage. By creating opportunities for leaders in
disaster recovery all around in Japan to meet face-toface to share knowledge and experiences on recovery
and disaster prevention and reduction, ANA contributes
to building resilient communities. Likewise, it implements
the “Blue Wing Program”, providing support along with its
customers for air travel by social entrepreneurs working
on projects that address social issues. Also, the company
is engaged in supporting air travel for experts andmedical practitioners involved in the GHIT Fund (Global
Health Innovation Technology Fund) that promotes thedevelopment of medicines for developing countries. The
ANA Group aims to provide "the wings within ourselves"to accelerate innovation in an interconnected world.

Bluenumber Initiative: Visualisation of the supply chain

Osaka Gas Co., Ltd.

Engaging in climate action and building resilient energy infrastructure
The Osaka Gas Group aims to promote climate change
mitigation initiatives and the creation of resilient energy
infrastructure to address Goal 13 (Climate Action) andcontribute to the utmost extent to achieving the SDGs.
The group aims to reduce CO2 emissions by a total of
approximately 70 million tons between 2017 and 2030,
as outlined in its “Long-Term Management Vision 2030”,
formulated in March 2017. This corresponds to about 2%
of Japan’s CO2 emissions reduction target, and includes
reduction contributions by customers in the value chain. (Theprevious target was subject to reduction of only CO2 emissions
from business activities within the group, but the “Long-Term
Management Vision 2030” expanded the scope of reduction.)
In order to achieve this target, building a resilient energy
infrastructure, also affecting achievement of Goal 9 andGoal 11 of the SDGs, is essential. The Osaka Gas Group
has accumulated know-how on disaster prevention
and reduction since the Great Hanshin Earthquake. For
instance, as a prevention measure to minimise disasterdamages, the company has been working to promote

the widespread use of polyethylene (PE) pipes that areearthquake-resistant with its superior flexibility, and do
not rust even underground. PE pipes are used for all new
low-pressure pipelines, with a total extended length of PE
pipes exceeding approximately 15,000 km as of March2017. The company has also improved the earthquakeresistant capacity and safety of natural gas provisionequipment in customers’ homes, namely achieving a 100%
diffusion rate of microcomputer-controlled meters that
automatically shut off natural gas when a major tremor
is detected (corresponding to a seismic intensity of 5).
Additionally, the company has contributed to advancing
initiatives in disaster prevention within the natural gas
retail sector. For instance, at the first “Company-wide
General Disaster Prevention Drill” (September 2017)
following full-scale liberalisation of the gas retail market
in April 2017, a sector-wide disaster response together
with another retailer was conducted for the first time.
Kansai Electric Power, a new retail enterprise in the
sector, participated in the drill, and confirmed its intent tocooperate in the event of a large-scale disaster.

Ａｰ2

Annex: SDGs Initiatives by Companies

As set forth in the company’s “Long-Term Vision 2030”,
Osaka Gas aims to increase its ratio of overseas energy
projects in Southeast Asia and other regions. It is
expected Osaka Gas will provide its knowledge not only
in natural gas provision, but also in technologies andknow-how related to disaster prevention accumulated inbusiness activities in an earthquake-prone country.

2017 Company-wide General Disaster Prevention Drill

OMRON Corporation

GCNJ/IGES Interview Series：http://www.ungcjn.org/sdgs/archive/1712_omron.html

Practicing Omron Principles through promoting sustainability and contributing to SDGs
The OMRON Principles are made up of its Mission, “toimprove lives and contribute to a better society” and its
Values, “Innovation driven by social needs, Challenging
ourselves, and Respect for all.” Following the 2-yearsustainability project with a main objective to accelerate
the practice of the OMRON Principles that were revisedin 2015, , OMRON announced sustainability issues
and goals in 2017. Sustainability goals are integrated
into the company’s “VG2.0 medium-term managementplan”, a plan developed by backcasting from 2030, theyear for achievement of sustainable society through theSDGs. Specifically, both financial goals and sustainability
goals are set for each of the four business domains in
the VG2.0 (factory automation, healthcare, mobility
and energy management). Top-level management frombusiness domains joined together to engage in a series ofextensive discussions on where to set sustainability goals(i.e. on sales, shares, GDP, or healthy life expectancy).
Accordingly, goals were set, so social values generated by
the business would be maximized. The sustainability goals
adopted, regardless of being qualitative or quantitative,
were to be measureable within the company. For
example, in healthcare business, the sales number ofblood pressure monitors was set as a sustainability goal.
OMRON interprets that the sales number represents

the social value to customers with high blood pressure.
Reaching out to those should be considered that
OMRON in contributing to treating cerebrovascular andcardiovascular disease, which in turn is contributing toGoal 3 of the SDGs (Good Health and Well-being).
While understanding on sustainability goals differs bybusiness, employees have been able to link their own
work to global social issues, using SDGs framework, andto view the social value generated as something of theirown. OMRON’s initiative serves as a leading example ofthe integration of management and sustainability.

Overview of the VG2.0 Medium-Term Management Plan
and Links to SDGs

Kyokuto Kaihatsu Kogyo Co., Ltd.

Contributing to SDGs by creating healthy communities through the environmental
sanitation business
Kyokuto Kaihatsu Kogyo manufactures special purpose
vehicles including concrete pump trucks, concrete
mixer trucks and refuse collection trucks, and handles
manufacturing and sales of recycling facilities. For its main
business in the special purpose vehicles, the company
is planning business expansion to emerging nations inSoutheast Asia and so on, amidst the shrinking market
in Japan. In the region, waste generated along withincreasing populations and economic growths has createdＡｰ3social problems. The company’s products and services
have a large role to play in responding to the demand for
waste management. However, compared to developed
countries, the concept of waste itself is still developingin the region. Thus, to both gain a foothold in overseas
expansion and contribute to society, the company isimplementing initiatives like the cooperation with theRepublic of the Sudan described below.

Annex: SDGs Initiatives by Companies

Infrastructure improvements have not been advancedin Sudan due to the continuing civil war, and worsening
environmental sanitation has especially become aserious problem. Waste is scattered everywhere in thecapital city, Khartoum. Further, water contaminated bydumping of waste has seeped into the soil, and it iscreating a health hazard for the people drinking the same.
Accordingly, the company has supplied refuse collection
and transport trucks to the Ministry of Environment of
Sudan through an ODA project with JICA, and has carriedout instructions in operation and technical guidance toaddress social problems caused by waste generation. Thisinitiative not only concerns Goal 11 (Sustainable Cities
and Communities), but also contributes to Goal 6 (Clean
Water and Sanitation) and Goal 3 (Good Health and Wellbeing). Kyokuto Kaihatsu Kogyo expects to continue toKirin Holdings Company, Limited

contribute to building resource-recycling and sustainable
societies in the future.

Vehicle supplied to the Republic of the Sudan and its
instruction in operation

GCNJ/IGES Interview Series：http://www.ungcjn.org/sdgs/archive/1801_kirin.html

Addressing social issues and creating business opportunities with domestic hops
The CSV Commitment released by Kirin Holdings in 2017not only applied the SDGs all the way to the target level,
but also established a concrete story, commitment,
approach and outcomes. For example, SDG Target 2.3
is geared to “double the agricultural productivity andthe incomes of small-scale food producers”. Kirin has
committed to, “work on improving the quality and stableprocurement of Japanese hops and brew unique beers
that can only be made by using Japanese hops, while
contributing to the revitalisation of key producing areas”.
As such, the company is implementing the following
initiatives.
Production of hops domestically in Japan has plummeted
due to a decrease in producers that has gone hand inhand with an ageing population and the impacts of global
warming. With the price of domestic hops double thatof hops produced overseas, the market was in a state ofnatural decline. As Kirin altered the direction of its policy
to the CSV strategy, it searched for ways to utilise thearomatic and fresh domestic hops to keep it from dying
out. Accordingly, it bought the entire quantity of hops
from Tono City in Iwate Prefecture, one of the few hopsproducing areas in the country, and launched the “Kirin
Ichiban Toretate Hop” draft beer. It also opened outlet
stores in Daikanyama and other areas where people canenjoy craft beers made with domestically produced hops.
Additionally, Kirin is assisting the city of Tono in its town
planning, collaborating on the Tono Beer Experience

project that aims to convert Tono, the “home of hops”
into the “home of beer”. One outcome of community
revitalisation activities has been the addition of five young
persons over the last two years that are newly working
in the field of agriculture. A brighter future for hops
cultivation is expected.
Amidst a consumer shift away from beer, Kirin reports thatyoung women at its directly managed craft breweries arepaying JPY780 for one glass of beer (360 ml) and evenenjoying refills. Kirin not only considers this initiative toplay a role in community revitalisation in raw materialproducing areas, but also to be one of its major marketingstrategies and a game-changer in the beer market throughthe expansion of craft beer. Kirin is engaged in ambitious
initiatives to create new beer culture while contributing
solutions to social issues and breaking into new markets.

ENJOY! HOP - hops to bring out the best in our beer

Ａｰ4

Annex: SDGs Initiatives by Companies

INPEX Corporation

Contributing to the creation of a brighter future for society through our effort to realize
stable energy supply
The business activities of INPEX are closely related toGoal 7 of the SDGs on energy and Goal 13 on climatechange. As such, in 2017 INPEX incorporated the SDGs
perspective and took four steps (1. Issue identificationand gap analysis, 2. Stakeholder dialogues, 3. Issue
prioritisation and 4. Management review) to review key
sustainability issues (materiality). The SDGs are referredin the top message from the President and CEO, showing
the company’s commitment to contributing to sustainable
development.
INPEX has long recognised the importance of actions to
reduce greenhouse gases and has released a Position
Paper compiling its ideas and initiatives on climatechange. In this paper, the company establishes the pillars
of its initiatives to achieve the reduction of greenhousegas emissions in oil and natural gas development, theexpanded provision of natural gas (the fossil fuel withthe lowest environmental load) in response to meeting
energy demand, and promotion of renewable energy
projects. Concrete examples of projects include the startof commercial operation of the First Unit of the Sarulla
geothermal power plant in Indonesia in March 2017, andof the Second Unit in October of the same year. This
plant boasts the world’s largest-scale output. Not only has
INPEX contributed to curbing greenhouse gas emissions
in Indonesia with its striking economic growth, but also to

Konica Minolta, Inc.

the stable energy supply. The company has also engaged
in development of local infrastructure such as the roads,
bridges and waterworks of the area surrounding thepower plant, and provided livelihood support to local
residents. Further, in relation to respecting human rights
which forms the basis of the SDGs, the INPEX Group
formulated and released a Human Rights Policy and is
working to see its human rights management thoroughly
carried out. In the area of diversity, the company has
made efforts to make environmental improvements at sites
and workplaces, actively employs women and disabled
persons and assists in the reemployment of retirees,
implementing management in harmony with the SDGs.

Second unit of the Sarulla geothermal power plant

GCNJ/IGES Interview Series：http://www.ungcjn.org/sdgs/archive/1801_konicaminolta.html

Supporting customer transformations as a “Digital company with insight into implicit challenges”
In its “SHINKA 2019” Medium Term Business Plan
launched in 2017, Konica Minolta indicated the pathway
it would follow as a “digital company with insight into
implicit challenges”. Further, the company is expected tolink its business with the SDGs as it incorporates businessthat contributes to solving social issues into its corporate
DNA. The company has put particular emphasis on social
innovation and has taken unique actions to enhancenursing and primary care in an ageing society and torealise personalised healthcare for cancer in the area of
biohealthcare. A specific example from the nursing field isintroduced below.
Konica Minolta identified a shortage of nursing staff andthe increasing burden of nursing care as key issues faced
by Japan’s super-ageing society. In order to collect dataon the actual status of nursing care services, company
employees visited workplaces. Based on the dataobtained, issues related to workflow were identified, suchas fragmentation of workflow due to calls from patientsusing a nurse call button. To address these issues, Konica

Ａｰ5

Minolta developed the “Care Support Solution®” totransform nursing care workflow. This system enables
nursing care staff to accurately ascertain the condition ofa patient on a smartphone. In the event of an accident,
video is recorded enabling modifications to rooms
Documents evidence

Safety confirmationin cases of
02 notifies
abnormal breathingcases of03 infallingor toppling

Resident video check,assistance
01 offering

Remote microphoneon-the-spotcare records
04 Creates

06 encourages
resident independence
Instant and reliable
sharing
05 information“Ms. XXX,

your blankets aretangled.
Please take carewhen getting out of bed.”

Voice

Features of the “Care Support Solution®”

Annex: SDGs Initiatives by Companies

according to the movement of patients and promoting
continual improvements in on-site care. This solution
significantly reduced the amount of nursing staff physicalactivity and working hours, leading to improved work
productivity, enhanced service, lower turnover rates
among nursing staff and most importantly, improved

Sumitomo Forestry Co., Ltd.

quality of nursing care for residents. In this matter, Konica
Minolta will continue to engage in raising issues andplanting the seeds for the next business opportunity tocontribute to a new social issue and to create positive
impacts that may have been at first unexpected throughinitiatives to address SDGs and social issues.

GCNJ/IGES Interview Series：http://www.ungcjn.org/sdgs/archive/1801_sumitomo.html

Linking the SDGs to business and utilising them as communication tools
With its roots in managing the forest surrounding the Besshi
copper mine, Sumitomo Forestry inherited the philosophy of“sustainable forestry” in its business activities. As a result, theidea of sustainability has been a cornerstone of management
and the consciousness of employees. With expanded
overseas businesses and increasing links to other countries,
the company considers the SDGs to be goals it must workto achieve as a global company.
For example, one of the company’s CSR Material Issues
is to “continue to procure wood and materials that takesustainability and biodiversity into consideration”. The
company’s CSR Mid-term Plan which is based on thisissue, is considered to contribute to Goal 12 (Responsible
Consumption and Production), Goal 13 (Climate Action)
and Goal 15 (Life on Land). Amidst decreasing global forest
area, Sumitomo Forestry has continued to implement theinspection of suppliers based on the Sumitomo Forestry
Group Procurement Policy. In 2017, the company without
delay complied with the Japan’s Clean Wood Act andpromotes procurement of wood from sustainable forests.
Meanwhile, forests in Japan, particularly plantation forests,
have not been well maintained due to a declining andageing forestry workforce, raising growing concerns about
forests becoming devastated. Sumitomo Forestry has
contributed to the maintenance of forest environments
through use of domestic timber and expansion of its

Daikin Industries, Ltd.

consulting services on forestry management for local
governments. By continuing these initiatives, the company
has advanced the increased handling of timber thatutilizes sustainable forest resources.
These links between SDGs and business are expected tohelp employees better understand how their daily work is
related to global social issues. Sumitomo Forestry intends
to continue to utilize the SDGs as a communication toolthat enables each and every employee to personallyrelate to global social issues previously considered to be
far-removed, and to experience a feeling of contributing tothese global issues through their daily work.

Forestry management and use of wood

GCNJ/IGES Interview Series：http://www.ungcjn.org/sdgs/archive/1801_daikin.html

Business expansion and contributions to sustainability through strategic market creation
Air conditioners make people’s lives more comfortable andimprove a quality of life, but their fluorocarbon refrigerants
contribute to global warming and considerable energy
consumption during use account for significant impacts on
the ozone layer and climate change. In emerging nations
where air conditioning use is on the increase, it is essential
to provide support for the development of appropriate
performance evaluation mechanisms, regulations andtechnicians in order to promote the diffusion of productswith excellent environmental performance, despite thehigher price. Daikin has established a variety of activities
toward this purpose.

For example, since fiscal 2013 Daikin has supported
the Indian government in the introduction of an index
and labeling system for the proper evaluation of energy
performance. Together with the Ministry of Economy,
Trade and Industry (METI), the Energy Conservation
Center, Japan and other Japanese manufacturers, Daikin
explained the effectiveness of a method of performance
evaluation called CSPF to the Indian government. Likewise,
the company provided support from a technical standpoint
for the establishment of a system, including provisionof instruction on measuring methods to the evaluation
organisation. As a result, in fiscal 2015 a new voluntaryenergy label system was launched that used CSPF as

Ａｰ6

Annex: SDGs Initiatives by Companies

the evaluation standard for properly evaluating inverter
products. In the ASEAN region, Daikin collaborated with
the Japan Refrigeration and Air Conditioning Industries
Association to promote understanding on CSPF andprovide support toward the introduction of a standardised
version of the system in all countries.
Moreover, the company reports that it is not easy to convert
refrigerants into new one that are already widely used.
In order to promote the use of R32, a next-generation
refrigerant with low global warming potential, Daikin hasoffered free access in emerging nations to a total of 93 R32related patents since 2011. In 2015, access was extended
to all countries including developed nations. Subsequently,
Daikin cooperated on and participated in METI and JICA
programmes, as well as UN-led projects, in India, Thailand
and Malaysia, where it provided technical information,
support for conversion to R32 and technical instruction.
Cumulative sales of R32 air conditioners by the Daikin Group
have exceeded 10 million units worldwide.

Dai Nippon Printing Co., Ltd.

Through strategic improvements to the market
environment, Daikin has made contributions to ozone
layer protection and global warming mitigation as it hasrealised widespread expansion of its core business in air
conditioners.

Air conditioner affixed with new energy label based on index
for proper evaluation of inverters

GCNJ/IGES Interview Series：http://www.ungcjn.org/sdgs/archive/1802_dnp.html

Developing new ways of contributing to the SDGs and solutions to social issues with
the EcoPro 2016 exhibition
In the “DNP Group Vision 2015,” made up of the company’s
corporate philosophy, business vision and guiding principles,the DNP Group depicts a future sustainable society, namely
a prosperous society where the SDGs have been realised.
The SDGs first began to permeate the company when it
exhibited at EcoPro 2016 in December of that year. Prior tothis exhibition, awareness on SDGs within the company was
not high. Under the leadership of the CSR and Environment
Department, the company used SDGs as the global common
language to promote a shared understanding on how one’s
work can contribute to solving global social issues suchas climate change and human rights, and is connected tocreating better societies. Consequently, employees realisedthat the company’s products and services, in addition tohaving advantages related to function and technology,
could also contribute in various ways to the goals of global
societies, thereby enhancing their motivation towards work.
One example is an application for household budget-tracking
called, “Receipi!”. This application not only automaticallyrecords spending when a receipt is photographed ona smartphone, but also is equipped with a function tosuggest recipes based on purchased food items. When thisapplication was exhibited as a method for reducing food loss
at the EcoPro exhibition, the company formed a connection
with the person in charge of food loss in Shizuoka Prefecture
and the application came to be utilised as a public relations
tool for the prefecture.

Ａｰ7

At present, the company maintains an awareness of
the relevance of SDGs in many departments, including
packaging, a business unit closely related to the end
user, as it works to identify customer issues and engage
in activities linking issues to products. Further, DNP is
working on “upcycled products”, paper products remade
from excess paper from packaging plants. DNP seized
the opportunity to make the SDGs well-known within its
company through the EcoPro exhibition, then expanded
promotion of products and services based on greaterawareness of their contributions to solving social issues
raised in the SDGs. Additionally, in cooperation withexternal partners, the company has developed initiatives
to enhance motivation and generation of ideas fordevelopment of products and services.

DNP booth at EcoPro 2016 that highly promoted the SDGs

Annex: SDGs Initiatives by Companies

DSM

GCNJ/IGES Interview Series：http://www.ungcjn.org/sdgs/archive/1802_dsm.html

Providing sustainable solutions for people and the earth
Within its global business in the areas of science-based
health, nutrition and materials, DSM pursues sustainability
based on the three P’s: People, Planet and Profit. The
company’s main SDGs-related efforts are focused on threeareas and five goals: nutrition (Goals 2 and 3), climatechange and energy (Goals 7 and 13), and circular and biobased economy (Goal 12). The company emphaticallyconsiders the provision of solutions to address climatechange and energy issues as business opportunities, andconsiders strategies to respond to global competition in
the low-carbon market.
In an effort to contribute to sustainability, DSM provides
ECO+ solutions, products that are environmentallysuperior to existing products, and People+ solutions,better products for people’s lives. At each stage, fromprovision of raw materials to recycling, Eco+ products
measure and evaluate environmental impacts (e.g. CO2
emissions, resource consumption, disposal), and People+
products measure and evaluate the state of people’s
health, work environments and community development.
Together, these products are referred to as Brighter Living
Solutions and currently account for 60% of DSM’s productportfolio. Via these initiatives, not only has awarenesswithin the company and the direction of business cometogether, but requirements for raw materials have also

TEIJIN LIMITED

been more closely examined, consequently leading to the
avoidance of business risk.
DSM has also adopted a system of “internal carbon
pricing”. For investment decisions, one projection isprepared that includes 50 Euros/CO2-t pricing, and onethat does not. In so doing, future business risk is examined
and internal decision-making is moved in the direction of
low-carbon business and investments. This system enables
both management and finance departments to be involvedin sustainability within the workings of the company andis important in that it gives management a real sense ofcarbon pricing.

Brighter Living Solutions (Eco+ & People+)

GCNJ/IGES Interview Series：http://www.ungcjn.org/sdgs/archive/1801_teijin.html

Uniting healthcare and IT for community-based healthcare
Since establishing its Corporate Philosophy in 1993,
the Teijin Group has actively worked to contribute tosustainability through selection of social issues highly
relevant to its business and advancement of initiatives thatmake the most of its unique solutions. The SDGs are highly
compatible with the Teijin Group’s corporate philosophy.
The company provides solutions needed by society byfocusing on the three areas of “environmental value”,“safety, security and disaster mitigation” and “demographic
change and increased health consciousness” towards
realising an “enterprise that is essential to tomorrow’ssociety”, according to its long-term vision.
VitalLink, the Teijin Group’s multidisciplinary collaborationand information sharing system, is a leading initiativethat unites healthcare and IT. In Japan’s super-ageing
society, the creation of comprehensive community
healthcare systems is required. Within a community
healthcare system, the sharing of information among apatient’s multiple healthcare professionals (e.g. primary
physician, visiting nurse, pharmacist, care manager andcare worker) is essential. However, conventional methodsof information sharing do not allow sharing in real timeand information exchange is time-consuming. This systemenables viewing of information and input patient’s datausing computers, smartphones and tablets, creating anenvironment whereby a patient’s information can be easily
confirmed and shared at any time or place. It also enables
the consolidated management of scattered vital data,
making it easier to apprehend chronological changes.
Support for the creation of this comprehensive community
healthcare system, in which medical and nursing care areintegrated by multidisciplinary information sharing andseamless cooperation, is linked to the provision of higher
quality care to patients and the enhanced productivityof medical and nursing practitioners. Through thisConceptual diagram of the comprehensive community healthcare system

Ａｰ8Annex: SDGs Initiatives by Companies

initiative, the Teijin Group aims to support the realisationof a shift from “hospital-based” to “community-based”
healthcare by 2025 and the creation of “comprehensive

community healthcare systems” that provides living
spaces, medical care, nursing, prevention and living
assistance in a holistic manner.

Tokyo Electron Limited

Addressing social issues through partnerships
Tokyo Electron Limited (TEL), a leading company inmanufacturing equipment for semiconductors and flat
panel displays, is engaged in initiatives to address social
issues through partnerships, and to improve medium andlong-term corporate value.
One example is TEL’s advancement of active collaboration
with consortiums and other equipment manufacturers
and material manufacturers to create environmentallyfriendly systems. TEL has been providing support to
the SUNY Polytechnic Institute 2 in the United Statessince its founding in 2003, realising collaboration thattranscends organisational boundaries, bringing together
researchers, students, professors and technicians fromnearby companies and providing a forum for creationof innovations. Further, collaboration with imec, aninternational research institute located in Belgium, has not
only involved joint research on a variety of topics such as
new technologies, new materials and lithography, but has
also led to collaboration with leading global companies.
In this manner, TEL has taken experience gained at the
global level and applied it to its products and services
to provide solutions that contribute to problem-solving
in the industry and society, as the company aims for thedevelopment of a dream-inspiring society.

Tokio Marine Holdings, Inc.

Furthermore, in 2015 TEL joined the EICC (now the
Responsible Business Alliance, RBA), an electronics
industry CSR alliance, to promote the creation ofsustainable supply chains. Likewise, TEL renewed its
code of ethics and related policies and released themon its website and in reports, and is working to ensurethat these policies penetrate the company as well as its
business partners. Additionally, the company carries out
yearly surveys conforming to the RBA Code of Conduct
to ascertain the state of affairs within its own company
and its business partners. By then linking results toimprovement activities, TEL is committed to creating anenvironment in the industry as a whole where companies
fulfil their responsibilities to society.

Research and development locations

GCNJ/IGES Interview Series：http://www.ungcjn.org/sdgs/archive/1802_tokiomarinehd.html

Actions that create multi-benefits based on multi-stakeholder mangrove tree-planting activities
As stated in its long-term vision, Tokio Marine Groupaims “To Be a Good Company” that supports customers
and society in all times of need, thereby gaining the trustof stakeholders and continually improving its corporate
value. Its mangrove reforestation initiative exemplifies thecompany’s efforts to contribute to society based on its
strong points and to link these contributions to its corebusiness to promote the SDGs.
In regards to the mangrove reforestation activities, whena customer chooses a web-based insurance contract(clauses) rather than a paper-based contract, thecompany donates funds corresponding to a portion of
the value of the reduced paper use. These funds are usedin cooperation with afforestation-related NGOs, as well2

as national and local governments and residents in treeplanting locations, to contribute to “Providing Safety andSecurity,” “Protecting the Earth” and “Supporting People”
both in Japan and overseas. The company has designatedthis initiative to be “insurance for the future of the Earth”
and has carried out reforestation exceeding a cumulative
total of 10,000 hectares in nine countries in the AsiaPacific region, including India, Bangladesh and Malaysia.
This project has generated over JPY35 billion in economic
value and impacted 1.25 million people.
One area of activity is Jose Panganiban in Camarines
Norte Province of the Philippines. The city faces the open
sea and is susceptible to the impacts of high waves andstorm tides. In this type of area, it is difficult to enhance

SUNY‌
Polytechnic Institute: a research institute formed by the merger of the SUNY Institute of Technology and the SUNY College of Nanoscale Science and Engineering.

Ａｰ9Annex: SDGs Initiatives by Companies

resilience to natural disasters with only insurance. Thus,
the initiative aims to reduce potential tsunami damagesby planting mangrove trees (and to measure the effects).
Further, local residents earn livelihoods by engaging intree-planting work, leading to an improved reputation
locally. Mangroves have CO2 absorption and fixation
capacity, and due to the considerable contribution of thisinitiative, Tokio Marine Group achieved a carbon neutral
status for the fourth straight year starting in 2013 (in 2013,
the company won the Environment Minister's Award for
Global Warming Prevention Activity in the category ofinternational contribution). Multi-stakeholder mangrove
tree-planting activities that include insurance customers
have not only given rise to rich ecosystems, protectedbiodiversity and provided marine products and forest
resources to people living in surrounding areas. These
initiatives have also created the multi-benefits of reduced
tsunami and storm tide risk, support for the livelihoods of
local residents and mitigation of climate change.

Achievements in mangrove planting

TOTO LTD.

Taking a bird’s eye view of ESG within management and promoting sustainable procurement
Within its business activities, TOTO considers CSR
management to be management using CSR initiatives thatbring the TOTO Group Corporate Philosophy to life. Bytaking a bird’s eye view of the ESG (Environment, Society
and Governance) fields, TOTO is working to strategicallyintegrate business and CSR activities. Within this framework,
the company has considered links to the SDGs.
In 2017, TOTO reviewed the “TOTO Global Environmental
Vision” looking forward to the next 100 years. In addition
to the conventional idea of “environment”, it designated“social themes” with strong relevance to business asmateriality. The company aims to further improve its
corporate value by working to integrate management andCSR.
A particular initiative of focus for TOTO is theestablishment of its Sustainable Raw Material Procurement
Standards in 2010. The company has worked with
suppliers to promote procurement of raw materials
and wood-based material that takes sustainability into
consideration. For the soil and stone raw materials usedin domestic factories for the company’s major products,
surveys are conducted that cover standards requiredby TOTO, such as “reforestation in surrounding areas
once mining is complete” and “initiatives to prevent
contamination of rivers and lakes during mining andcrushing”. In some cases, compliance and sustainability
are confirmed based on interviews conducted throughtrading companies.

Additionally, suppliers and production sites are visitedwhen necessary to verify facts, and in 2016 all mines were
found to satisfy the standards of the company. Further,
the company has set target values for percentage of legal
and recycled material in wood-based material used for
products produced in domestic factories. In 2016, thecompany achieved values of 90% legal wood and 9%
recycled material.
Through these initiatives, TOTO aims to achieve a balance
between the “sustainable use of resources” and “stableprocurement” based on creation of supply chains that giveconsideration to human rights, labour and compliance, as
well as environment and ecosystems.

TOTO Global Environmental Vision

Ａｰ10

Annex: SDGs Initiatives by Companies

Japan Food Ecology Center, Inc.

GCNJ/IGES Interview Series：http://ungcjn.org/sdgs/archive/1802_fec.html

Food recycling business and actions to expand markets to contribute to sustainable development
Target 12.3 of the SDGs addresses food loss and waste.
In Japan, an annual 28 million tons of food waste is
generated, and the majority of this waste is treatedby incineration at a cost of JPY40,000-50,000 per ton.
Meanwhile, livestock farming, including pig farming, relies
on imported grain for feed and the costs for feed are high.
The activities of the Japan Food Ecology Center (J.FEC)
have been built upon the issues of waste disposal andlivestock farming.
The food waste handled by J.FEC consists of unsold
items from supermarkets and convenience stores andmanufacturing loss (e.g. surplus cooked rice) at foodfactories. Waste is collected from over 170 food-waste
producing enterprises in the Kanto area. Waste issimultaneously measured and content is automaticallyascertained to confirm the absence of any extraneousmaterial. It is then sorted, shredded, sterilised andput through a fermentative process, resulting in the
manufacture of a liquid fermented feed.
There are multiple benefits generated by this process.
First, the cost of incinerating food waste with its high watercontent is reduced. Accordingly, energy consumption
and CO2 emissions are also reduced. Next, liquid feed
is about 50% lower in price than standard composition
powdered feed, and it prevents pneumonia in pigs causedby powder dust. Also, this liquid feed produces pork thatis tender, has sweet-tasting fat and is low in cholesterol(thus it is sold as a brand of pork). Furthermore, data on

Nestlé Japanthe content of waste ascertained during measurement issent to waste-producing businesses as feedback to assist
in waste reduction efforts.
However, there are few food recycling enterprises such as
J.FEC that are making profits. This situation is caused by
the fact that competitors are local governments. In somecases, they use tax money to give corporations discounted
incineration services as part of efforts to attract companies
to their areas. Moreover, in order to create similar set-ups
suited to different regions, expert knowledge combinedwith knowledge on local economies, laws and licensing
is required. Based on the view that it is essential for allcompanies to engage in sound recycling to create amature market for the sake of the global environment andthe growth of companies, J.FEC is committed to engaging
in information dissemination and support for othercompanies.
Backgroundd of the Food Ecology Center (J.FEC)’s business

J.FEC has two backgrounds:
The problems of waste disposal

The problems of livestock farming

1) To spend a large amount of tax revenue to incinerate waste

1) Rising costs of feed due to rising grain prices

2) Skyrocketing cost of waste disposal

2) Disease problems3) Lack of final disposal sites

3) Need for safe animal products
Simultaneous
solving of multiple
problems

Creating fermented feed from recycled food resources

Background of the Japan Food Ecology Center’s business

GCNJ/IGES Interview Series：http://www.ungcjn.org/sdgs/archive/1802_nestle.html

Schemes to solve social problems through creation of innovations
Since 2011, Nestlé Japan has conducted the Innovation
Awards, an initiative in which all employees participate
that originated in Japan. This practice encourages thosein all departments to remember that everyone is working
for someone else and that everyone has “customers”. This
scheme promotes a process by which employees areencouraged to discover customers’ unrealised problems
and implement solutions (innovations). Participating
employees come up with potential problems facedby customers and solutions to them, then themselves
engage in trials and verification, with funds available in thecompany for testing out their ideas. Outstanding results
are awarded with a JPY one million prize, and winningideas are implemented organisationally the following year.
The NESCAFÉ Connect service was also born from anenvironment in which each employee’s ideas are heard.
NESCAFÉ Connect is an IoT service jointly developedwith Sony Mobile Communications to address the issue

Ａｰ11

of loneliness among the elderly. Users set up coffee
machines (NESCAFÉ GOLDBLEND BARISTA i) and specialpurpose tablets in their homes. When talking to thecharacter inside the tablet screen to make a coffee, themachine starts to brew coffee, and the information is sent
automatically to the pre-registered distant family etc. via
the free dialog application LINE. When recipients sendback a reply message, the character read it aloud for the

NESCAFÉ Connect User ConceptAnnex: SDGs Initiatives by Companies

user, and also it is available to initiate search engines by
voice operation. All these features are designed for easyuse even for elderly people. The price of this service is JPY
500 per month as a tablet usage plus coffee subscriptionfee, and this establishment of the business scheme also
secures long-term commitment.

Hakuhodo DY Holdings Inc.

Nestlé Japan recognises that in order to provide
fundamental solutions to social issues, the company
itself, its partners and its customers must all move in the
direction of value, namely practicing CSV (creating sharedvalue) and ensuring that internal company workings are
such that they naturally contribute to addressing SDGs
through core business.

GCNJ/IGES Interview Series：http://www.ungcjn.org/sdgs/archive/1802_hakuhodo.html

Promoting an array of social actions to spread happiness among sei-katsu-sha and society
The Hakuhodo DY Group’s CSR is based on thefundamental concept to aim to “create and spreadhappiness among sei-katsu-sha (a term coined by thecompany to express the holistic person) and society.” It
is comprised of efforts by each and every employee as
they work together with industry, groups and the media
in the course of their core daily work, and the provisionof support for autonomous efforts by employees as
individual sei-katsu-sha . The Hakuhodo DY Group’s twin
philosophies, Sei-katsu-sha Insight and Partnership, arethe basis for the company’s CSR work. Areas and topics
being addressed by employees expand every year. A
total of 87 activities are introduced on the Group’s
Japanese language website, each with the applicable 17
Sustainable Development Goals (SDGs) icons affixed to it.
Among these, TAP PROJECT JAPAN is one approach toaddressing global issues.

In 2017, the 9th year of the project, a total of 85 young
employees participated as volunteers in a feature event
called “Road to Water”3. Various issues related to water
are not only connected to Goal 6 of the SDGs (Clean
Water and Sanitation), but are also important topics
linked to other social goals. In Madagascar as well, water
issues are tied to other issues. For example, the work
involved in going to wells to draw water robs childrenof opportunities to grown and learn. This event aimed
to get people living in Japan interested in the various
issues surrounding water. Furthermore, bringing together
employees with diverse specializations and strengths increative, digital, PR and promotions to address a social
issue, the event created an opportunity for each employee
to grow.

TAP PROJECT JAPAN is a joint project between the Japan
Committee for UNICEF and volunteers from the Hakuhodo
DY Group that seeks to use the power of design to realize
a future where children all over the world can access cleanwater. Activities were launched in 2009. In addition tocollection of donations at restaurants and cafes, programs toraise awareness about water are carried out every summer.
Donations collected to date have contributed to support
projects for children that do not have access to safe, cleanwater in the island nation of Madagascar in Southeast
Africa. From the start of activities through March of 2017, 45
wells and water supply facilities and 146 toilets have been
installed in 48 elementary schools.

3

TAP PROJECT JAPAN‌Held at T-SITE GARDEN GALLERY in Daikanyama over a four-day period from August 21–24, 2017.

Ａｰ12

Annex: SDGs Initiatives by Companies

Patagonia Japan

GCNJ/IGES Interview Series：http://www.ungcjn.org/sdgs/archive/1801_patagonia.html

Using business as a tool for change
The concept of sustainability is clearly reflected in the
mission statement of Patagonia. The company considers
business as not an aim, but a tool, and the company’srole is to provide solutions to environmental problems.
Patagonia Japan focuses on the four areas of: (1)responsible consumption, (2) nature preservation, (3)appropriate agriculture, and (4) energy shift. It engages
in a variety of initiatives. Here, an initiative related toresponsible consumption is introduced.
A Patagonia initiative that seeks to change the present
state of mass consumption and mass disposal is the“Worn Wear: Better than New” initiative. This programmepartners with departments specialising in repair andencourages customers to use their products over the longterm, providing an easy method of recycling for productsthat cannot be repaired. The company also operates
a special blog where people can share memories ofPatagonia products they have had repaired or have beenusing for years. By making high quality and repairable
products, Patagonia aims to curb customer consumption

and get customers to use the company’s products longer.
Understanding that one company alone cannot change
society, Patagonia intends to engage diverse stakeholders,
including other Japanese companies and NGOs, incollaboration to address social issues through business.

Worn Wear Repair Event #3: Patagonia in Shibuya, Tokyo

FUJI OIL HOLDINGS INC.

Initiatives that address environmental and human rights issues through sustainableprocurement of palm oil
Under the leadership of company president Shimizu, theFuji Oil Group takes a stance on contributing to society
with “healthier and happier living through food”. A part ofthis effort is shown in its business in soy beans, with a 60year history. In the past, the soy business was continuallyin the red, but the company believed that soy could makeup for insufficient protein available to the world’s people
in an escalating global population. Thus, the company
considered continuing in the soy business to be its
mission in society. It has continued to pursue and propose
possibilities for using soy in foods.
Additionally, in recent years the company has focused
its efforts on initiatives in palm oil, a main raw material.
As palm oil is low-cost and easy to process comparedto other vegetable oils, it is widely used in foods andchemical substances and has the largest production
volume among oil materials used worldwide. Meanwhile,environmental issues caused by development of palm
plantations and human rights issues such as child labourand forced labour are problems of concern. As such, theFuji Oil Group is promoting sustainable procurement as its
social responsibility.

4

In March 2016, Fuji Oil established the “Responsible Palm
Oil Sourcing Policy” as the view of the group in its entirety,
and has strengthened its system of handling certified oil
based on the RSPO4, which it joined in 2004. Moreover, thecompany works in other ways to promote the sustainableprocurement of palm oil. It works together with the NPO
called TFT (The Forest Trust) to ascertain traceability, andshares the abovementioned policy with suppliers (extraction

The Fuji Oil Group’s position in the palm oil supply chain‌RSPO(Roundtable on Sustainable Palm Oil) is a non-profit organisation based on cooperation among palm oil producers, processors or traders, consumer goods
manufacturers, retailers, banks/investors, and environmental and social/development non-governmental organisations (NGOs).

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Annex: SDGs Initiatives by Companies

plants) in an effort to improve its supply chain. Likewise, it
engages in support for small-scale farms on the island of
Borneo in Malaysia (pairing up with a local NGO called “WildAsia” for a four-year educational support programme aimed
at improved productivity and working environments). Smallscale farmers receiving assistance have reported back on the

Fuji Xerox Co., Ltd.

benefits of the project, including reduced use of pesticides
and fertilizers as well as increased profits. The Fuji Oil Groupis committed to working with related NGOs and companies
to expand and strengthen the sustainable procurement ofpalm oil to address human rights and environmental issues.

GCNJ/IGES Interview Series：http://ungcjn.org/sdgs/archive/1802_fujixerox.html

Strengthening engagement and achieving returns based on Employee Assistance Programmes
Since the 1970s, Fuji Xerox has proposed new ways
of working and achieving fulfillment in work and life
under the slogan, “From Hustle to Beautiful” followedby “New Work Way”. The company has designated theachievement of the SDG 8 (Decent Work and Economic
Growth) as its major goals.
As part of these efforts, Fuji Xerox has engaged in capacity
building for its employees at its manufacturing site, Fuji
Xerox of Shenzhen, since fiscal 2006. In China, mobility inemployment is high and many young people from rural areas
come to work at factories, creating a demand for measures
to promote the mental and physical well-being of workers.
Accordingly, a programme to support employees was set
up in stages, including a system for stating opinions (e.g.
CSR suggestion box, opinion exchange using the intranet),a system for continuing education (geared to workers on
production lines and foremen, as well as training for newhires), and a system to support psychological and mental
stability (e.g. psychological counseling by phone or inperson, seminars on psychological health).

to costs. This initiative is a good example of the returns thatcan be gained by treating employees and their families well,leading to a higher engagement with the company.
In January 2015, Fuji Xerox of Shenzhen launched a
programme to address the issue of children that havebeen left in poor rural villages when both parents go towork in industrial areas, whereby a fractional amountis deducted from monthly paychecks and donated.
Approximately 2,500 people or 40% of total employees
have registered. The company also carries out support
including counseling and workshops on parent-children
relations and the establishment of a hotline.

Based on the conviction that QCD (quality, cost, anddelivery) cannot be maximised without CSR, the content
of activities evolved over time. As a result, while there wassome fluctuation in employee numbers, a turnover rateof 1/3 the average in Shenzhen was maintained, leading
eventually to quality improvement and benefits compared

Employee support programmes at Fuji Xerox of Shenzhen

Sumitomo Mitsui Trust Holdings, Inc.
SDG initiatives as a management strategy

Sumitomo Mitsui Trust Holdings has compiled a
Sustainability Policy containing six items to contributeto building sustainable societies, and determined therelevance of each item to the SDGs. Policy item 1, to“Contribute to solving social and environmental problems
through business” and item 6, to “Participate in andcontribute to the community” are geared towards the
SDGs in the planning phases and are inseparable at thepractical level.
The company’s sustainability initiatives within businessinvolve the provision of products and services that
contribute to solving environmental and social problems

addressed by the SDGs, utilising the expertise andfunction of a trust bank. In so doing, the company not
only contributes to the formation of societies sought
after by the SDGs, but also simultaneously boosts thegroup’s performance overall and improves corporate
value. Activities involve five major themes: climatechange, natural capital, environmentally friendly property,
sustainable investment and the super-ageing society.
Details on initiatives are available in the company’s ESG/CSR Report. Each of the SDGs is not only utilised as astandard to examine the validity of the social value of
products and services, but also as a principle to raise
the level of operations, management and information

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Annex: SDGs Initiatives by Companies

disclosure in order to positively influence (impact) theachievement of each goal.
In providing value to communities, the group carries out
an array of community and contribution initiatives incommunities where it has office branches. Providing value
is necessary as a social license to operate a businessand supports the soundness of the company’s businessfoundation. The SuMi Trust Bank in particular promotes
what it refers to as “With You Activities” and actively
publishes content on its blog to further strengthen ties
with communities. The value provided to the community

by each activity is categorised according to the SDGs.
From here on, the company plans to carry out analyses on
the impacts of activities on communities.

Sustainability initiatives in business

Sumitomo Mitsui Financial Group, Inc.

An open-innovation base to address social issues
The Sumitomo Mitsui Financial Group (SMFG) has
identified the three themes of “environment,” “nextgeneration,” and “community” as medium to long-term
priority issues that form the core of CSR activities, andhas formed a vision for SMFG to aspire to for 2030. Also,these three themes are organised according to the various
goals of the SDGs to which they contribute through thebusiness activities of group companies.

and expectations are high for the array of innovations thatwill come forth from this forum in the future.

As part of SMFG’s initiatives, an open-innovation basenamed “hoops link tokyo” was established in Shibuya
in central Tokyo on 1 September 2017. Here, company
representatives ranging from startups to major corporations,both domestic and international players, as well as
people from government, academic research institutes
and non-profits gather to work to create new businesses
and services, and to revitalise existing businesses andservices linked to addressing social issues. Activities areunquestionably well-matched with the concept of the SDGs

Yamaha Corporation

hoops link tokyo

GCNJ/IGES Interview Series：http://www.ungcjn.org/sdgs/archive/1801_yamaha.html

Promoting music and sustainable wood procurement
Yamaha’s initiatives related to the SDGs focus on Goal 4(Quality Education). One of the company’s main objectives
is the promotion of music education and lifelong learningin countries around the world through business. Yamaha’s
school project carried out in Malaysia, Indonesia, Russia
and Vietnam, aim to provide a large number of children
the opportunity to experience the enjoyment of playing
instruments. Among this project, an effort to support
the introduction of instrumental music education in
Vietnam’s compulsory elementary and junior high school
education, was selected as an official project under the“Public-Private Initiative to Disseminate Japanese-Style
Education Overseas (EDU-Port Japan)” of Japan’s Ministryof Education, Culture, Sports, Science, and Technology.
Instrumental music education offers many merits from an

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educational perspective, including opportunities for selfexpression, cooperation with others and the developmentof a sense of responsibility. Based on this initiative, theMinistry of Education and Training of Vietnam plans to
introduce instrumental music education in the revision of
the country’s course of study for elementary and juniorhigh schools planned after 2019. Yamaha is cooperatingin trials at school clubs, the development of teachingmaterials and teacher training.
Yamaha has focused efforts in sustainable woodprocurement related to Goal 12 and Goal 15 of the SDGs,
in order to prevent and reduce any negative impacts
on society. Yamaha employs traceability surveys andrigorous risk assessment to ensure that illegally loggedAnnex: SDGs Initiatives by Companies

wood is not mixed into the wood the company procures.
It implements a JICA-supported project in Tanzania tocreate a business model for the sustainable use of theAfrican blackwood, used as a material for woodwind
instruments. Prior to the project, Yamaha found thatthe local forest management was not enough to ensuresustainable timber utilization. For instance, much of thetimber from felled trees was discarded, and transport wasinefficient. Through cooperation with a local NGO, theproject has aimed to create a system for stable provisionof FSC-certified wood, review and improve processing anddistribution processes, enhance the utilization rate andprofitability of wood material and restore profits createdto the local community. This initiative is closely linked topoverty alleviation, employment creation and sustainable
natural resource procurement.

Support activities for the introduction of instrumental musiceducation in Vietnam

Yamaha Motor Co., Ltd.

Contributing to the development of sustainable societies through business activities
based on corporate philosophy to “offer new excitement”
Yamaha Motor Group has made its highest-ranking
objective to “offer new excitement and a more fulfilling
life for people all over the world”, under the global slogan“Revs Your Heart”, adopted in 2013. “Rev” not only refers
to the speed of the company’s engines, but also to moving
people’s hearts, making the slogan perfect for a company
with its core business in the manufacturing of engines.
Since the company’s founding, it has engaged in businessin over 200 countries and regions, with a ratio of overseas
sales at approximately 90 percent.
The company has done business in Africa since the1960s. Its sales of outboard motors there began withsupport for instruction in Japanese-style fishing methods.
Then, the company developed human resources foraftercare services and built a system for provision of parts,
winning the company a high level of trust. The company
also supported the start-up of a boat factory based ontechnology transfer in FRP (fiber-reinforced plastic) boats.
This series of initiatives were linked to the creation of
new markets while contributing to the development oflocal industry, expanding employment opportunities andenhancing the standard of living.
Yamaha Motor has firmly rooted awareness in its
corporate culture on “contributing to society throughbusiness”. The Yamaha Clean Water Supply Systemdeveloped to address social issues in developing countries
exemplifies this awareness. As the set-up is simple, runningcosts are nearly non-existent and maintenance is easy, thesystem is run autonomously by community members. The
programme has reported positive changes and tangible
values for results, including a reduction in diarrhea andfevers due to improved environmental sanitation andincreased time for women and children, liberated fromthe hard labour of drawing and carrying water, to engage
in studies and housework. This initiative contributes not
only to Goal 6 (Clean Water and Sanitation) of the SDGs,
but also to Goal 4 (Quality Education) and Goal 3 (Good
Health and Well-being), and realises the product’s slogan:“improving the water will improve people’s lives”.
The aim to “offer new excitement and a more fulfilling life
for people all over the world” has been firmly built into
Yamaha Motor. The company is committed not only to its
major business at present, but also to succeeding in futureareas of business.

Yamaha Clean Water Supply System water purification equipment
installed in Senegal

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