SDGs
Progress Report

2022

Survey Results on the Efforts of
GCNJ Companies and Organisations

Contents
１．Introduction… …………………………………………………………………………… 6
２．Global and National Trends on the SDGs… ……………………………………… 8
３．SDGs Survey Result and Interpretation … ………………………………………… 14
3.1

Awareness and Penetration of the SDGs… …………………………… 15

3.2

Gender Equality… …………………………………………………………… 20

		~Shifting gears from “female participation and advancement” …
to the “promotion of gender equality”: the time is now~
3.3

Decent Work and Human Rights… ……………………………………… 28

		~Respect for human rights is at the core of corporate initiatives
on the SDGs~
3.4

Circular Economy… ………………………………………………………… 36

		~Shifting to a new economic system …
that goes beyond the 3Rs~
3.5
		
3.6
		
3.7

Climate Change… …………………………………………………………… 42~Tips for turning pledges into actions~
Preventing Corruption… …………………………………………………… 50~Significantly reducing corruption and bribery in all its forms~
Status of Actions on Materiality… ……………………………………… 57

		~Accelerating efforts on SDGs other than …
SDGs 5, 8, 12, 13, and 16~
４．Conclusion… ……………………………………………………………………………… 62
５．Annex… ………………………………………………………………………………… 67

5.1

List of Respondents… ……………………………………………………… 68

5.2

Summary of Survey Results………………………………………………… 72

Abbreviations and Acronyms
Business Conduct Guidelines

BCG

Circular Economy

CE

Climate Disclosure Standards Board

CDSB

Corporate Governance Code

CGC

Corporate Sustainability Reporting Directive

CSRD

Diversity and Inclusion

D&I

Global Gender Gap Index

GGGI

Government Pension Investment FundGPIF

Greenhouse Gas

GHG

International Financial Reporting Standards

IFRS

International Integrated Reporting Council

IIRC

International Integrated Reporting Framework

International <IR> Framework

International Resource Panel

IRP

International Sustainability Standards Board

ISSBJapan Clean Ocean Material Alliance

CLOMA

Japan Partnership for Circular Economy

J4CE

Key Performance Indicator
Morningstar Gender Diversity Index
Science Based Targets for Nature

KPI
Gen Di
SBTs for Nature

Science Based Targets Initiative

SBTi

Science Based Targets Network

SBTN

Sustainability Transformation

SX

Sustainable Consumption and Production

SCP

Task Force on Climate-related Financial Disclosures

TCFD

Taskforce on Climate-related Financial Disclosures

TNFD

The 26th session of the Conference of the Parties to …
the United Nations Framework Convention on Climate Change

COP26

UN Guiding Principles on Business and Human Rights

UNGPs

United Nations Global Compact

UNGC

Value Reporting Foundation

VRF

WEPs Transparency and Accountability Framework

TAF

Women's Empowerment Principles

WEPs

World Benchmark Alliance

WBA

World Business Council for Sustainable Development

WBCSD

Foreword
Six years have come and gone since the Sustainable Development Goals (SDGs) wereadopted at the UN Summit in September 2015. In that time, the world has been hard hit by
COVID-19, an infectious disease that first appeared in 2020, and is just one of many events
that should be taken seriously as illustrating the impacts of excessive human activity. We
should use this bitter experience as a wake-up call and a turning point for taking a moreproactive approach to achieving the SDGs.
The full commitment of the community as a whole will be needed to achieve the SDGs, withbusinesses shouldering a particularly large share of responsibility. But, are companies setting
the truly ambitious targets required to achieve the SDGs? Are they rising to the challengeof “transforming the world”? The UN General Assembly resolution of 19 November 2021
(A/C.2/76/L.13/Rev.1) reaffirmed the role of the UN Global Compact and local networks
in promoting the activities of the private sector in implementing the SDGs. In order to fulfil
this immense responsibility, GCNJ, along with all its members as key players, is striving toaccelerate the SDGs commitments of the private sector in Japan in the less than nine years
remaining until 2030.
To achieve this, GCNJ is revamping and relaunching the “SDGs Survey Report” as the “SDGs
Progress Report” as a means to present ambitious targets it wants all its members to aim
toward, and encourage members to accelerate actions to achieve the SDGs by learning
about their own progress and that of other companies. We will all work together to give, as
advocated by Kofi Annan, a “human face to the global market”.
Lastly, I would like to take this opportunity to thank all GCNJ member companies andorganisations, as well as non-members and IGES for their collaboration in producing thisreport.

Toshio Arima
Chairman of the Board
Global Compact Network Japan (GCNJ)

4

Foreword
Soon after the SDGs were adopted at the UN Summit in 2015, IGES started to work incollaboration with GCNJ in developing a diverse range of activities, including the joint
translation of the SDG Compass, fact-finding surveys on the SDGs for GCNJ member
companies and organisations, the preparation of reports based on these surveys, andpresentations at events hosted by both IGES and GCNJ. As an environmental think tank that
conducts practical and innovative policy research and aims to reflect these outcomes in
actual policies and actions, this collaborative partnership has been tremendously beneficial
for IGES in extending the scope of research into the SDGs business domain and positioning
itself as an agent for change. IGES would like to take this opportunity to express our
deepest gratitude to those involved in the GCNJ and to the companies and organisations
that have extended their cooperation for this initiative.
Human society faces a broad spectrum of problems at the global scale, such as the
COVID-19 pandemic, climate change, biodiversity loss, inequality, and human rights
violations. These problems are not mutually exclusive; they are strongly interconnected,
with solutions that require a “transformative change” in social systems. The values and value
systems in our current material civilisation, economy and society have created a crisis forthe global environment and human survival. We must fundamentally question them andcreate a new approach to human activity and a new paradigm for civilisation. Economic andsocial systems must be restructured so that they are sustainable and in line with these newparadigms to realise global sustainability. From this perspective, only when human society
unites and takes bold steps to spark social change will the achievements of the SDGs
become visible.
Now in its sixth issue, the content of this joint report by GCNJ and IGES has been updated
to encourage “transformative change” with a focus on the actions that companies andorganisations need to take to achieve the SDGs. We hope that this report will provide
GCNJ members and other companies and organisations
with a strong impetus for innovative actions to realise theSDGs in this decisive decade from 2021 to 2030, which will
determine the fate of the global environment in years tocome.

Kazuhiko Takeuchi
President
Institute for Global Environmental Strategies (IGES)

5

1

Introduction

We are quickly approaching 2023, the half-from more equal societies, and a healthierway point in the implementation period ofnatural environment. Regrettably, the SDGs

the SDGs, officially launched in 2016. Since

were already off track even before COVID-19

this time, the significance and importanceemerged.” He continued, “the challenges areof the SDGs have become widely accepted

immense, but there are also reasons for hopethroughout society. Not only governments,….we must use the crisis to transform ourbut also companies, investors, consumers,

world, deliver on the 2030 Agenda.”

and citizens from a variety of perspectives
are engaged in efforts to achieve them. The

The question is then, what challenges canannual survey on the SDGs conducted bycompanies and organisations undertake to

the Global Compact Network Japan (GCNJ)

truly contribute to delivering the necessary

and the Institute for Global Environmental

transformations? GCNJ and IGES redesigned

Strategies (IGES), with the cooperation of

the content of our annual questionnaire

GCNJ member companies and organisations,survey to shed light on this question.

has shown the level of awareness andSpecifically, while retaining some previous

initiatives on the SDGs to be progressing yearquestions on SDGs awareness, we consideredby year.

what companies and organisations should
achieve and/or implement by 2030 with

Nevertheless, even prior to the COVID-19

regard to SDG 5 (gender equality), 8 (decent

pandemic, the achievement of the SDGs,

work and economic growth), 13 (climate

a set of aspirations for the world, was inaction), 16 (peace, justice and strong

jeopardy. Moreover, the impact of theinstitutions), which the United Nations Global

COVID-19 pandemic has unavoidably led toCompact (UNGC) has stated it will lead andsignificant setbacks in areas such as poverty,

shape in its strategy for 2021-2023, and SDG

hunger, and education. In a message in the

12 (responsible consumption and production),

Sustainable Development Goals Report 2021,

which many GCNJ members are focusing

UN Secretary-General Antonio Guterres

on, and put these into questions and answer

stated, “Had the paradigm shift envisioned

choices. By doing so, we intended that theby the 2030 Agenda for Sustainable

companies and organisations that responded

Development been fully embraced over theto the questionnaire would be able to gain

past six years, the world would have beenclues as to where they stand in their efforts

better prepared to face this crisis – withto achieve the SDGs and what they need tostronger health systems, expanded social

do to accelerate them. The five goals covered

protection coverage, the resilience that comesin the questionnaire are also closely related

6Introduction

to the UNGC’s Ten Principles in four areas

Questionnaire content and totalled results(human rights, labour, environment, and anti-

are included in the Annex. These can be used

corruption). The questionnaire was designed

as a guideline and/or checklist to promotewith the cooperation of experts in each of

the SDGs, not only by GCNJ members,

these areas as well as the GCNJ SDGs Task

but also by various other companies andForce. These experts were also asked toorganisations. The issues and messages

write the analyses and discussion of findingspresented in this report will also serve ason the five goals contained in this report.

a reference to policymakers, investors andIn this report, we first review ever-developing

work with companies and organisations andglobal and domestic trends related to thepromote their efforts through policy and

SDGs, including the above five goals. Next,

finance.

civil society in considering how they can

the chapter on survey results reports on thelevel of awareness and penetration of the

GCNJ and IGES have renamed this report,

SDGs in general, analysis and discussion

which contains analysis and discussion byof efforts related to the five goals, andexperts on each of the five goals, the “SDGs

examples of initiatives on material issues that

Progress Report”. We will continue to work

fall outside of the realm of these five goals.

collaboratively and carry out fact-finding

Finally, we provide a summary of the overall

surveys on the SDGs going forward.

report.

7

1

2

Global and National
Trends on the SDGs

Progress on the SDGs andstrategies of companies andorganisations

Similarly, the Asia and the Pacific SDG
Progress Report 2021 (published in March
2021) reported serious delays in the SDGs
and impacts of the pandemic. It contends

State of progress on the SDGs

that at the current pace, only nine of the 104

COVID-19 continues to threaten countries

measurable SDG targets can be achieved inaround the world, including Japan. As of

the Asia-Pacific region.

16 February 2022, over 400 million people
have been infected worldwide, and the

To address the challenges of today andnumber of deaths had risen to more than 5.8

the future, UN Secretary-General António

million, resulting in significant implications for

Guterres launched his vision entitled “Ourprogress on the SDGs.

Common Agenda” on 10 September 2021.
Developed at the request of member states

According to the UN SDGs Report 2021

on the occasion of the UN’s 75th anniversary,(published in July 2021), between 119 andthe vision proposes a range of actions under

124 million people were pushed back into

12 themes, including “leave no one behind”

poverty in 2020, with 255 million full-timeand “protect our planet”. In the report,

jobs lost, and 83 to 132 million more people

Guterres acknowledges that humanity issuffering from hunger. The report also states

at a turning point in history, stating, “thethat crises in the areas of climate, ecosystems,

choices we make — or fail to make — today

and environmental pollution continued

could result in further breakdown…or aunder the pandemic, citing increased

breakthrough to a better, more sustainable,

concentrations of major greenhouse gases

peaceful future...”(GHGs), reduced biodiversity and degradationof terrestrial ecosystems, and the disposal ofTrends in management and strategy

up to five trillion plastic bags every year. It

A similar sense of crisis is shared byfurther points out the inequalities within andcompanies and organisations that are highly

between countries exposed by the pandemic,

attuned to sustainability, as well as by the

including the fact that 68 doses of vaccine

relevant institutions that promote theirwere available per 100 people in Europe andinitiatives. Various developments have been

North America as of 17 June 2021, comparedseen.

to less than two doses per 100 people in
Sub-Saharan Africa.

In March 2021, the World Business Council
for Sustainable Development (WBCSD), a8

Global and National Trends on the SDGs

coalition of about 200 CEOs of companies

Growth Markets are encouraged to disclose

committed to sustainable development,

information equivalent to those in the TCFD

published the “Vision 2050: Time torecommendations).

Transform”, developed together with 40
member companies. The Vision explores

Developments in government ministries

approaches and methods for businesses

and agencies include establishment by theto lead in nine areas related to system-

Ministry of Economy, Trade and Industry

wide transformation—including energy,(METI) of the “Study Group on Dialogues

transportation and mobility, living spaces,that Contribute to Long-Term Corporate

finance, and food—so that “9+ billion people

Management and Investment for Creation

can live well, within planetary boundaries,

of Sustainable Corporate Value (SX Studyby 2050”. The main contents of the report

Group)” in May 2021. This group aims toinclude descriptions of the vision for 2050

clarify issues and modalities for long-termin the nine areas, specific fields that require

corporate management and investment andcorporate action by 2030, and the mindset

the specific dialogues that contribute tosh i f t n e e d e d in cor por a te a c tivitie s . A

them, based on the concept of “sustainability

Japanese translation has also been publishedtransformation” (SX) which involves the idea

based on collaboration between IGES andof synchronisation of corporate and social

three companies involved in the Vison

sustainability. After meeting six times, the2050 project: Sompo Japan, Toyota Motor

SX Study Group set up a working group on

Corporation, and Fujitsu.

revision of the Guidance for Collaborative
Value Creation in October 2021.

In Japan, the Corporate Governance Code
(CG Code) was revised in June 2021.

Innovative benchmarks to compareThis code compiles key principles that

corporate performance on the SDGs arehelp companies implement mechanisms

also being developed. Leading this effort isfor transparent, fair, prompt, and resolute

an organisation called the World Benchmark

decision-making, taking into account the

Alliance (WBA), which includes a range ofstandpoint of shareholders, customers,

non-corporate organisations from aroundemployees, local communities, andthe globe. WBA has placed focus on sevenother stakeholders. This latest revisionsystems transformations that are required

established approaches, targets, humanto achieve the SDGs: social, decarbonisation

resources development policy, and internaland energy, food and agriculture, natureenvironmental improvement policy forand biodiversity, digital, urban, and financial

ensuring diversity in the assignment of coresystem. It also identified 2,000 companies

human resources, including the appointment(Keystone Companies) with particularof women, foreign nationals and mid-careerindustry-wide influence, with 162 companies

hires to management positions. In addition,and organisations from Japan included incompanies listed on the Prime Market

the latest 2022 edition. WBA has alreadyafter the reorganisation of the Tokyo Stockformulated benchmarks on topics related to

Exchange in April 2022 will be required

the seven systems (e.g. gender, human rights,

to have higher standards of governance,

seafood stewardship, food and agriculture,including obligation of information disclosureaccess to seeds, just transition, digital

equivalent to the TCFD recommendations

inclusion) and reports company ratings and(*companies listed on the Standard andrankings based on these. According to WBA,

9

2

2

Global and National Trends on the SDGs

these benchmarks show what society expects

Recent years have seen the revision of

from industry and businesses and can help

frameworks and standards for disclosure ofcompanies identify gaps, learn, and engage in

non-financial information and the publication

dialogue with stakeholders.

of new guidances. Major developments

Other: nature-related and information

Integrated Reporting Framework (International

disclosure-related trends<IR> Framework) in January 2021, as well

In developments related to the SDGs andas the revision of GRI Universal Standards

include the revision of IIRC’s International

the planetary boundaries concept, theand the announcement of a new TCFD

Science Based Targets Network (SBTN),

guidance in October 2021. For example, thewhich comprises more than 45 organisations,International <IR> Framework will requireis promoting the development of methods

clearer definitions of outputs and outcomesand guidance for setting Science Basedand reporting that includes both positive

Targets (SBTs) for Nature related to water,and negative impacts. Therefore, companies

land, biodiversity, and ocean. An Initial

utilising these frameworks and standards will

Guidance for Business was published inneed to be particularly careful.

September 2020, and plans are in place todevelop a methodology for setting targets

In a further notable development, at the 26th

for earth’s systems, targeting companies

session of the Conference of the Parties toand cities, by the end of 2022. The CDP has

the United Nations Framework Convention

also stated that from 2022, companies willon Climate Change (COP 26) in November

be sent a single integrated questionnaire

2021, the International Financial Reportingthat adds biodiversity to the three existingStandards (IFRS) Foundation announced

questionnaires on climate change, water

the establishment of the International

security, and forests. It will include questions

Sustainability Standards Board (ISSB), aimed

connected to the SBTs for Nature.

at developing internationally consistentand comparable sustainability disclosure

In terms of nature-related information

standards, and the publication of two

disclosure, the Taskforce on Nature-related

prototype disclosure standards focused

Financial Disclosures (TNFD) was officiallyon climate and sustainability in general.

launched in June 2021 and is attracting

Additionally, expectations for the integration

increasing attention globally. Coincidingof the Climate Disclosure Standards Board

with the launch, a report entitled “Proposed(CDSB) and the Value Reporting Foundation

Technical Scope” was published, setting out(VRF was established in the merger of IIRC

the components of disclosure frameworks,

and SASB) into the ISSB by the end of Junethe concept of nature-related risks and2022 were also announced (CDSB was

opportunities, and a work programme for

integrated on 31 January 2022). In response

the future. According to the Ministry of theto this development, on 16 November 2021,

Environment (MOE), the TNFD framework

the Japan Business Federation (Keidanren)

will not only address how nature can impact

published a proposal calling for theorganisations, but also how organisations

establishment of a Sustainability Standards

can impact nature. The TNFD framework is

Council (provisional name) within Japan’sscheduled for launch in 2023, following beta

Financial Accounting Standards Foundation

testing.

(FASF), which has an established relationshipwith the IFRS Foundation. The aims of the

10

Global and National Trends on the SDGs

Council would be to make contributions▶I n t e r n a t i o n a l O r g a n i s a t i o n f o r

to IFRS Foundation from Japan, to voice

Standardisation (ISO) implemented theopinions, and to promote the development ofGender Action Plan for 2019-2021 as adomestic sustainability standards.

first step towards gender mainstreaming ininternational standardisation activities. The

In light of these trends, in September 2021,

plan addresses the gender ratio in decision-

the Financial Services Agency (FSA) inmaking structures and various committees,

Japan established the “Working Group on

and the analysis of various standards from a

Corporate Disclosure of the Financial Systemgender perspective.

Council” to discuss how sustainability factors▶E u r o p e a n C o m m i s s i o n r e l e a s e d a(e.g. climate change compliance, ensuring

proposed directive on equal pay and pay

diversity, human capital) should be included

transparency in March 2021, including a

in securities reports. In addition, METI’s “Study

gender pay gap mandatory reporting.

Group on Disclosure Policies for Non-financial▶G overnment Pension Investment Fund

Information” published an interim report in(GPIF) adopted the Morningstar Gender

November 2021, presenting international

Diversity Index (GenDi) in December 2020

trends in non-financial information disclosure

as its ESG Index for foreign stocks. GenDi

standards and four recommendations forbuilds on the WEPs.

high-quality sustainability-related information▶Government of Japan approved the Fifth

disclosure. Furthermore, the Cabinet Office

Basic Plan for Gender Equality in December

established the “Study Group on Visualisation

2020 by Cabinet Decision. The plan aimsof Non-financial Information” in February 2022

to bring the percentage of women in

and has begun discussion on compilation ofleadership positions to around 30% as early

guidelines that will serve as a reference foras possible in the 2020s.

corporate management, including methods to▶C hild Care and Family Care Leave Act

assess the value of non-financial information

amended in June 2021. In order tosuch as human capital.

encourage men to take parental leave, thelaw establishes an obligation to inform andHighlights of trends related to
the five goals

confirm the intention of fathers regarding
parental leave, and establishes a new
system that allows fathers to take up to

Below is a summary of major trends related

four weeks of “paternity leave” (which canto topics covered in the sections on the fivebe divided into two periods) until eight

SDGs that are the focus of this report.

weeks after the birth of a child. Companies

Gender equality (SDG 5)

required to publicly announce the uptake▶N umber of signatories to the Women’srate of parental leave.

with more than 1,000 employees are

Empowerment Principles (WEPs), a set of
guidelines for companies and organisations

Decent work and human rights

to promote gender equality, exceeded(SDG 8)5,000 companies worldwide (from 1▶U S released a revised version of theJanuary to 31 December 2021: signatories

Xinjiang Supply Chain Business Advisory

at global level rose from 4,510 to 5,847;

in July 2021. It urges industry to be waryfrom 265 to 278 in Japan; and from 636 toof whether supply chains include entities

1,168 in Asia).

involved in human rights abuses such

11

2

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Global and National Trends on the SDGs

as forced and compulsory labour in theon management that respects human rights

autonomous region, and recommends thatin December 2021.

human rights due diligence (human rights
DD) be conducted to the extent possible.

Circular economy (SDG 12)▶U N Human Rights Council adopted a▶International Resource Panel (IRP) publishedresolution on 8 October 2021 stipulating“Resource Efficiency and Climate Change:

the right to a safe, clean, healthy andMaterial Efficiency Strategies for a Low-

sustainable environment as a human right.

Carbon Future” in November 2020. It

Japan, China, India, and Russia abstained

analyses the climate change mitigationfrom voting.

potential offered by improving material▶C OP26: The Just Transition Declaration

efficiency in the production and use ofconfirmed agreement on achieving

residential buildings and lightweightsustainable, green and inclusive economies,

vehicles, and examines concrete policy

also in relation to recovery from theapproaches. A Japanese translation of the

COVID-19 pandemic, and on strengthening

Summary for Policy Makers was publishedrespect for human rights in supply chainsby IGES.

(realising decent work and eradicating▶O rganisation for Economic Co-operation

modern slavery, forced labour and childand Development (OECD) publishedlabour).

“A Chemicals Perspective on Designing▶T he 10th UN Forum on Business andwith Sustainable Plastics” in December

Human Rights was held from 29 November

2021, a report aimed at enabling theto 1 December 2021 and revealed an

creation of sustainable plastic products byassessment of the first decade of the UN

incorporating sustainable chemistry thinking

Guiding Principles on Business and Human

into design processes.

Rights (UNGPs) and the UNGPs 10+▶Plastic Resource Circulation Act passed in

Roadmap for the next decade of businessthe 204th Ordinary Session of the Diet inand human rights.

Japan. The act aims to promote efforts in▶European Commission issued a proposal on

resource circulation for plastics by all actors

23 February 2022 on a directive that would

throughout the lifecycle of plastic products,

mandate human rights and environmental

from design to disposal. The law entereddue diligence.

into force on 1 April 2022.

▶M ETI and the Ministry of Foreign Affairs▶M OE, METI and Keidanren launched the(MOFA) released questionnaire survey

Japan Partnership for Circular Economy

results in November 2021 on the status(J4CE) in March 2021. On 2 September, aof human rights initiatives in the supply

ceremony was held online to announce thechains of Japanese companies. Of the 760

publication of a collection of noteworthy

companies that responded, approximately

case studies and the website launch.
▶L aunch of the Japan Circular Economy

70% had formulated policy commitments
on human rights, and more than 50% had

Partnership (J-CEP) was announced on

conducted human rights DD, but only 30%

1 November 2021. Its stated mission is

had involved external stakeholders.

to work on creating businesses in Japanthat will optimise resource circulation and▶K eidanren revised Chapter 4, “Respectfor Human Rights”, in its Implementation

realise a sustainable society, and to bring

Guidance on the Charter of Corporate

about optimal solutions for society that

Behaviour, and also formulated a handbook

balance environment and economy.

12

Global and National Trends on the SDGs

Climate change (SDG 13)

unabated coal power; and agreement on▶U S President Biden hosted the Leaders’the Article 6 rule under the Paris Agreement

Summit on Climate in April 2021. Japan(relating to trading of carbon credits). Many

announced an increase in its 2030 GHG

alliances and net zero announcements werereduction target to 46% of 2013 levels.

made at events led by the chair country.

▶A n amendment to the Act on Promotionof Global Warming Countermeasures was

Anti-corruption (SDG 16)

enacted in May 2021 in Japan, including▶Decrease in US Foreign Corrupt Practices

specification that carbon neutrality will be

Act (FCPA) enforcement activity between

achieved by 2050 and the promotion of2019 and 2020. The US Department ofopen data on corporate GHG emissions.

Justice (DOJ) issued a statement in June▶C ommitment to net zero by 2050 at the2021 on resumption and strengthening oflatest in the 2021 G7 Summit Communiqué.

FCPA enforcement following recovery from

Commitment to end new international

the COVID-19 pandemic.
▶OECD Working Group on Bribery adopted a

direct support by governments for unabated

new OECD Anti-Bribery Recommendation incoal power generation by 2021.
▶W o r k i n g G r o u p I C o n t r i b u t i o n t oNovember 2021. The new recommendation

the Sixth Assessment Report of thelooks at issues such as the “demand side”

Intergovernmental Panel on Climate Change

and “non-trial resolutions (NTRs)”.

published in August 2021. It concluded, “it▶M ETI’s Guidelines for the Prevention ofis unequivocal that human influence has

Bribery of Foreign Public Officials were

warmed the atmosphere, ocean and land”.

revised in May 2021. They include general▶Glasgow Climate Pact adopted at COP26.

prohibition of small facilitation payments

Addresses the determination to pursue theand clarification that economic damage to

1.5℃ target; doubling funding for adaptation

a company does not justify bribery.

by 2025; the first mention of phasedown of

13

2

3

SDGs Survey Results
and Interpretation

Survey overview■ Survey objectives
・To help GCNJ member companies and organisations measure their progress and promote
activities on the SDGs.
・To analyse progress, as well as challenges faced, on current SDGs initiatives and penetrationof the SDGs by member companies and organisations, to enable them to contribute to theachievement of the SDGs in Japan.
■ Schedule for survey responses
4 October to 18 November 2021
■ Survey target and number of responses
Target: GCNJ member companies and organisations   …
437 members (as of 30 September 2021)
Responses: 223 members (51% of target) *See p. 68 for a list of responding members.
■ Survey method
Online■ Survey content (50 questions total)
1) Company/organisation information, awareness/progress on SDGs (overall)2) Gender equality (SDG 5)3) Decent work and human rights (SDG 8))4) Circular economy (SDG 12* Industries excluded from responses: information and communications; finance and insurance; real estate;service;  academic institutes, associations, incorporated associations/agencies; other5) Climate change (SDG 13)6) Anti-corruption (SDG 16)

7) Post-survey questionnaire (Satisfaction with GCNJ, requests)

14

1

3.

Awareness andPenetration of theSDGs hile a low level of awareness of the SDGs among both middle management
Wand employees has long been an issue for the SDG initiatives of companies andorganisations, both of these figures increased by nearly 40% to reach roughly
80%. Finally, the SDGs have come to be recognised and understood internally atcompanies and organisations.
 ompanies and organisations with 10 to 249 employees need assistance inCpromoting a deeper understanding of the SDGs, while those with 250 to 4,999
employees need support in integrating management and the SDGs, such as bysetting KPIs and medium- and long-term targets. Likewise, those with 5,000
or more employees call for measurement and assessment methods for SDGs
initiatives, and initiatives in information disclosure and value chains. Namely, thesupport that companies and organisations require differs according to size andlevel of progress.
 ctivities related to “advocacy and public policy”, such as making
A
recommendations and voicing support for policies, should be strengthened toensure that companies contributing to sustainability survive.

Aim of questionnaire content

Results and discussion

T h i s c h ap t e r r epor ts on tr ends a m o n g

Awareness of the SDGs, progress on the SDG

GCNJ members in terms of awareness ofCompass, and priority goals (Q7, Q8, Q13)

the SDGs, actions contributing to the SDGs,

First, let us compare awareness of the SDGs,

and challenges currently faced. Survey

progress on the SDG Compass, and priority

questions on these items have been included

goals to last year. The issue of awareness ofsince 2015, with last year’s report detailingthe SDGs (Q7), in particular a low level ofprogress over the five-year period from 2016

awareness among both middle management

to 2020. Answer options for some of theand employees, has long posed a challenge.

questions have changed in this year’s survey.

This year’s survey showed an increase ofThus, it is not possible to report changes

nearly 40% for both of these figures, bringing

over time for all items, but wherever possible,

them to about 80%. Six years after the SDGs

comparisons with past data have been made.

were formulated in 2015, recognition andunderstanding of the SDGs has finally madeheadway into companies and organisations.

15

1

3.

Awareness and Penetration of the SDGs

The option “affiliated companies and otherdispersed across Steps 2 to 4 for members

stakeholders”, which had an awarenesswith 250 to 4,999 employees, and Step 5

level of 11.5% last year, was divided thisaccounted for 50% of responses from thoseyear into “group companies” and “businesswith over 5,000 employees. These results

partners, such as suppliers and clients”, withshow a wide variation according to the size

results of 62.8% and 46.6%, respectively. Inof a company or organisation’s workforce. In

addition, the awareness level of the newly

the SDG Compass, Steps 2 to 5 comprise a

added option “investors” was 57.0%. Whencycle, and the cycle is repeated as efforts arelooking at respondents with over 5,000

intensified. Therefore, it should be noted that

employees, figures were 76.8% for “groupresponses of Step 5 do not necessarily imply

companies”, 56.0% for “business partners,that sufficient actions are being taken.

such as suppliers and clients”, and 77.6% for“investors”. The awareness level of suppliersWith regard to SDGs of focus (Q13), over

and other business partners is an important

80% of companies and organisations selectedfactor in promoting initiatives related to the

SDGs 8 and 13, while more than 70% selected

five goals discussed in subsequent sections.

SDGs 3, 5, 9 and 12. Meanwhile, responses

Raising awareness in this area represents a

increased by more than 5% from last year

major challenge for large companies.

for SDGs 5, 7, 8, 10, 13 and 15. Selection of
SDGs 5 and 8 suggest changes in working

Progress was also evident on the steps of thepractices during the COVID-19 pandemic,

SDG Compass (Q8). Responses for Steps 1 toand responses for SDGs 7 and 13 suggest

4 all decreased, while responses for Step 5stronger responses to climate change issues.

increased to 37.2%. Looking at this question

Likewise, responses for SDG 10 suggest

by number of employees, Step 1 was selected

increased attention on growing disparities andmost often at 35% for respondents with 10

inequalities during the pandemic, and for SDG

to 249 employees, while responses were

15 on biodiversity issues.

Q7 Please select the situation(s) that applies to the degree of awareness of the SDGs within yourcompany/organisation. (Select all that apply)
CSR and sustainability oﬃcers areaware of and understand the SDGs

84.1

Top management is aware of andunderstands the SDGs

85.1

Middle management is aware of andunderstands the SDGs

43.8

Employees are aware of andunderstand the SDGs

95.5

82.1

37.5

Well known across aﬃliated companies
and other stakeholders

95.1

77.1

11.5

Group companies are aware of andunderstand the SDGs

62.8

Business partners, such as suppliers andclients, are aware of and understand the SDGs

46.6

Investors who have a relationship with the company/organisation
are aware of and understand the SDGs

2020

57.0
0.0

20.0

40.0

60.0

2021
80.0

100.0

(%, 2020:n=208, 2021:n=223)

16

Awareness and Penetration of the SDGs

Q8 Which step of the SDG Compass has your company/organisation reached?
Step 1:
Understanding the SDGs

12.0
11.2

Step 2:Deﬁning priorities

13.9

2020
2021

19.7
20.7
17.9

Step 3:
Setting goals
Step 4:Integrating

27.4

19.7
20.2

Step 5:
Reporting and communicating
0

10

37.2

20

30

40

(%, 2020:n=208, 2021:n=223)
Q13 W hich SDGs goal(s) has your company/organisation chosen to focus on (taking impacts fromCOVID-19 into account)? (Select all that apply)
19.7
20.2

SDG 1 No poverty

24.0
22.0

SDG 2 Zero hunger

68.8
71.3

SDG 3 Good health and well-being
47.1
43.0

SDG 4 Quality education

58.7

SDG 5 Gender equality

72.2

34.1
36.8

SDG 6 Clean water and sanitation

62.0

SDG 7 Aﬀordable and clean energy

67.7
75.0

SDG 8 Decent work and economic growth

80.3

68.8
70.4

SDG 9 Industry, innovation and infrastructure
44.7

SDG 10 Reduced inequalities

50.7
63.0
58.7

SDG 11 Sustainable cities and communities

74.5
76.7

SDG 12 Responsible consumption and production

76.0

SDG 13 Climate action

81.2

37.5
37.7

SDG 14 Life below water

39.4

SDG 15 Life on land

45.7

41.3
43.9

SDG 16 Peace, justice and strong institutions

61.5
62.8

SDG 17 Partnerships for the goals
1.0

We have not selected any speciﬁc goals to focus on
0

2020
2021

5.8
10

20

17

30

40

50

60

70

80

90

(%, 2020:n=208, 2021:n=223)

1

3.

1

3.

Awareness and Penetration of the SDGs

Actions contributing to the SDGs and inclusion

market environment in which companies thatof SDGs in information disclosure (Q9, Q10)

contribute to sustainability can survive.

The most common response on actions GCNJ
members are taking to contribute to the

In fact, the United Nations Global Compact

SDGs was “compliance with the 10 Global(UNGC) conducted a similar survey of its

Compact principles” at 92.4%. This result wasmember companies, although the data is

anticipated, as each company/organisationfrom 2020. Results showed that 73% ofpromises this compliance when becoming

respondents complied with the 10 Global

a GCNJ member. However, a rate of 75.9%

Compact principles, 46% integrated the SDGs

for respondents with 10 to 249 employees

into management strategies, 61% developed

suggests that support is needed to ensure

products and services that contribute to thecompliance with the ten principles.

SDGs, 37% created business models that
contribute to the SDGs, 55% voluntarily funded

The next most common actions taken bycharitable foundations and non-profits, 35%

GCNJ members were “integrate the SDGs

engaged in advocacy and public policy, andinto management strategies” and “develop

43% engaged in collaboration and partnerships.

products and services that contribute to the

Although there is some disparity in the time

SDGs”, both at 81.2%. Regarding the former,

period of the survey, it is evident that GCNJ

the degree of integration into management

members on the whole are engaging in actions

strategies is important and is expected to varyon the SDGs at the same level or higher thanfrom company to company and organisationinternational levels, except in the realm of

to organisation. For this reason, we will review

advocacy and public policy.

the situation in the conclusion chapter, looking
back at initiatives on the five goals.

With regard to putting information on the
SDGs in reports and websites, more than 70%

The three biggest differences evident inof companies and organisations reportedly

responses by number of employees were

include the SDGs in “top messages”, “reflections“create business models that contribute toon priority issues and policies”, “priority

the SDGs” (60.5% overall), “voluntarily fund

SDGs”, “linkages to core business areas”, andcharitable foundations and non-profits” (47.1%“development of products and services”, making

overall), and “collaboration and partnerships”

references to the SDGs the norm. On the other(48.9% overall). These figures were to 72.8%,

hand, only 24.7% of companies/organisations

61.6%, and 67.2%, respectively for respondents

publish information on “specific impacts

with over 5,000 employees, while they stood at

resulting from activities related to the SDGs”,

44.9%, 31.9%, and 31.9% for respondents withindicating that companies and organisations are

250 to 4,999 employees, and 44.8%, 20.7%,

struggling regardless of their size.

and 10.3% for those with 10 to 249 employees.
The biggest differences by number of
Few members, regardless of the number of

employees were seen in responses on

employees, selected the “advocacy and public“creation of business models that contributepolicy: We publicly advocate for the importanceto the SDGs” (49.8% overall) and “indicatorsof action in relation to the SDGs” option, withand progress related to the SDGs” (52.5%

only 19.3% overall. It is hoped that “advocacy

overall). These figures were 63.2% and 66.8%,

and public policy” will be strengthened,

respectively for respondents with over 5,000

as it is an important action for creating aemployees, compared to 34.8% for both for18

Awareness and Penetration of the SDGs

those with 250 to 4,999 employees, andevaluating SDGs activities” at 71.7%, and27.6% and 24.1%, respectively for those withthe closely-related “methods for information

10 to 249 employees.

disclosure and reporting”, also scoringhighly at 62.3%. The need for provision of

Challenges faced addressing the SDGs andinformation on “good practices by companies

required information and solutions (Q11, Q12)

in Japan on the SDGs” was also high at

Approximately 75% of companies and68.2%, while 64.8% of respondents with overorganisations cited “setting quantitative

5,000 employees called for information on

indicators and evaluation methods for impacts,case studies of overseas companies.

etc.” as a challenge faced in addressing theSDGs, with only a slight difference in figures by

Around 55% of both respondents with 10 tosize of company/organisation.

249 employees and 250 to 4,999 employees

Interestingly, companies and organisations

solutions on “approaches to developingwith 10 to 249 employees showed lower

organisational structures”. Companies andvalues (i.e. items not viewed as challenges)

organisations with 250 to 4,999 employees

than companies and organisations of otherwere also found to have greater needs

expressed the need for information andsizes for most options (level of understanding

than companies and organisations of otherof middle management, general employees,

sizes for “methods for integrating the SDGs

directors, and the entire value chain;

into management principles and visions”,

evaluation methods; resources; political“methods for setting KPIs”, “methods forbacking; stakeholder engagement; initiating

setting medium- and long-term targets”, andcollective action; information disclosure;“approaches to publicising and encouraging

publicity and communication strategies; andcommunication” (43.5%, 63.8% and 47.5%,

balancing with growth strategies). Meanwhile,and 52.2%, respectively).

companies and organisations with 250 to4,999 employees exhibited higher scores (i.e.

From the above figures and the state ofitems viewed as challenges) than companies

progress on the SDG Compass by number ofand organisations of other sizes for mostemployees, it can be concluded that companies

options (societal awareness of the SDGs; leveland organisations with 10 to 249 employeesof understanding of middle management,in particular require support for promoting ageneral employees, and directors; stakeholder

deeper understanding of the SDGs, while thoseengagement; initiating collective action andwith 250 to 4,999 employees need support

partners; information disclosure; publicity andfor integration of management and the SDGs.

communication strategies; and balancing with

Meanwhile, companies and organisations withgrowth strategies). Moreover, respondents withmore than 5,000 employees require support

more than 5,000 employees showed higher

for information disclosure and initiatives in thevalues than companies and organisations ofvalue chain. These differences in recognition

other sizes for “level of understanding andof challenges and need for information andawareness in the entire value chain”, “setting

solutions are related to the progress madequantitative indicators and evaluation methods

on the steps of the SDG Compass discussed

for impacts, etc.”, and “resources”.

earlier. Going forward, it will be necessary toconsider how to provide support to companies

The most sought-after information andand organisations according to their size andsolutions were “methods for measuring andlevel of progress.

19

1

3.

2

3.

Gender Equality

Shifting gears from “female participation
and advancement” to the“promotion of gender equality”:
the time is now

Asako Osaki

Director, Gender Action Platform

Mariko Saito

Director, Gender Action Platform ompanies have been stepping up in putting systems in place and disclosingC
information to ensure compliance with national laws and regulations, e.g. the Act
on the Promotion of Female Participation and Career Advancement.
 n the other hand, initiatives to achieve gender equality called for by the SDGs
O
involve the elimination of gender discrimination structured in the society andeconomy, and transformation of mechanisms and awareness grounded on genderroles. It is important to understand that this approach differs from what Japanrefers to as “female participation and advancement”.
 ompanies are recommended to consult both the Women’s Empowerment Principles
C(WEPs), a set of action guidelines that correspond to the SDGs/ESG, and the WEPs
Transparency and Accountability Framework (TAF), a set of indicators to measure
WEPs implementation, in order to align their ongoing initiatives.
 hifting gears to the “promotion of gender equality” will enable steadyS
implementation of highly effective and globally accepted initiatives. Such a shift
would also be effective in laying the groundwork for both “female participation
and advancement” and “diversity & inclusion (D&I)”.
gender discrimination. Companies andSignificance and rationale

organisations are particularly called upon to:

The promotion of gender equality is not• e l i m i n a t e n o t o n l y d i r e c t g e n d e r

only a stand-alone goal as SDG 5, but also

discrimination, but also indirecta pre-condition and a means to realising all

discrimination caused by unconscious bias

goals, as set forth in the outcome document,

and attitudes on gender roles that are“Transforming our world: the 2030 Agenda

deeply rooted in systems and practices;

for Sustainable Development”. The SDGs aim• enable men, not only women, to take on

to transform social and economic structuresunpaid care and domestic work such as

grounded on gender roles and eliminate

housework and childcare; and20

Gender Equality• improve the gender balance in decision-

WEPs are not only implemented by companies,

making positions.

but also referred to by investors. Gender

While the “female participation andequality is one of the key components of bothadvancement” approach that puts emphasisthe ‘S’ (social) and ‘G’ (governance) of ESG

on women is mainstream in Japan, the global

investment. The level of progress on gender

standard is to “promote gender equality”,

equality is important from the perspectives ofwhich aims to eliminate gender gaps anddiversity and human rights under ‘S’, and fromstructural inequalities between men andthe perspective of board diversity under ‘G’.

women. In addition to the SDGs, Principles 1,

The Gender Equality Scoreboard of Equileap

2 and 6 of the Global Compact’s 10 Principles(a global evaluation organisation based in theare directly connected to the elimination

Netherlands that collects and evaluates gender-of gender discrimination, and the World

related data on companies), was developed

Economic Forum’s Global Gender Gap Index

based on the WEPs. Likewise, the Morningstar(GGGI) focuses on the gap between men and

Gender Diversity Indexes, adopted by GPIF

women. It is quite clear that the internationalin 2020 as its ESG indexes for foreign stocks

community calls for the promotion of gender(300 billion JPY under management), haveequality.

adopted Equileap’s criteria and Gender Equality
Scoreboard.

The Women’s Empowerment Principles(WEPs) are a set of guiding principles for

While Japan has shown progress in legal

companies and organisations to promotemeasures, such as the adoption of the Act

gender equality. They were jointly developedon the Promotion of Female Participationby the UN Global Compact and UN Womenand Career Advancement and the revision of

in 2010 and have become globally recognised

the Child Care and Family Care Leave Law,

as a holistic framework. The WEPs consist

it has failed to achieve the target set by theof seven principles under the following fivenational government in 2003 on increasingareas.

the percentage of women in leadership• C ommitment from top management andpositions to at least 30% by 2020. It also

integration into corporate policies andcontinues to fall in the GGGI rankings. Instead

strategies (Principle 1)of the approach geared only to “women” that

• W orkplace initiatives (e.g. development

Japan has adopted to date, we must shift toand implementation of policies) (Principles

the approach that promotes “gender equality”

2, 3 and 4)

in order to change systems and attitudes in• Development of gender-responsive supply/

workplaces and society that are grounded onvalue chain management (Principle 5)gender roles. This will allow women to play

• Engaging with communities and contributing

more active roles in their own right.

to society (Principle 6)• Accountability and transparency (Principle 7)

About the survey questions

WEPs prioritise inclusion: companies arereference to SDG 5 and the WEPs, as well

expected to promote gender equality

as other indices (GGGI, Equileap Genderin partnership and collaboration with

Equality Indices, Bloomberg Genderstakeholders such as business partners,

Equality Index, MSCI Women’s Leadershipinvestors, local communities, NGOs, andIndex, and reporting indicators of the Act

governments.

on the Promotion of Female Participation

Survey questions were formulated in

21

2

3.

2

3.

Gender Equality

and Career Advancement). The levels of

90% of companies of 5,000 employees orimportance were established in line withmore selecting this option. Just under 14%

the WEPs Transparency and Accountabilityof all respondents, or 33% when referring

Framework (TAF), a set of indicators thatspecifically to companies with more than

measure progress on WEPs implementation.

50,000 employees, reported having signed

The types of indicators and their levels of

the WEPs as part of their commitment. Given

importance are shown below. The first step

WEPs’ global recognition, there are also

for companies is to put the essential reporting

examples of multinational companies based

indicators (Level 1) into practice.

in Japan and/or overseas that promote
gender equality vis-a-vis the WEPs.

Results and discussion

Meanwhile, some companies that selected

The levels and percentages of responses are

the response, “we integrate the SDGs into

shown in the tables.

corporate strategies” for Q9, “What actions
are being implemented by your company/

Commitment from top management andorganisation to help achieve the SDGs?”,

integration into corporate strategies (Q16)chose the “not specifically positioned as

Out of all respondents, 83% stated that thea management issue” for Q16. Promoting

promotion of gender equality was positioned

gender equality is an overarching goal of the

as a management issue and reflected in

SDGs: companies are expected to mainstream

policies and measures. This percentage isgender perspectives into corporate strategies

proportional to workforce size, with overand initiatives on the SDGs.

Level 1
Level 2
Level 3

Essential Reporting Indicators
Complementary Reporting Indicators
Input and Support Measure Indicators
Other Indicators

Q16 Has top management expressed commitment to promoting gender equality and clearly positioned
it as a management issue, for example by integrating gender equality into corporate guidelines andstrategies? (Select all that apply)
Top management has not committed to promoting gender equality or
specifically positioned it as a management issue.

16.1

Level 1

We understand that promoting gender equality is a foundation for"women's active participation in society" and "diversity and inclusion",and reflect this in our policies and measures.

83.0

Level 2Top management has signed the WEPs and is committed to
implementing policies and measures.

13.5

Level 2

When formulating corporate guidelines and strategies, we include
organisations and experts with knowledge on gender issues in our
stakeholder dialogues and interviews.

13.9

Level 3We release and actively communicate our commitments, policies, andprogress in promoting gender equality to external stakeholders throughintegrated reports and other means.

56.5
Responses (%)

22

Gender Equality

Setting targets and implementing measurestargets for the percentage of women board

on the percentage of women board members

members based on a medium- to long-term(Q17)

vision is indeed part of a holistic approach

The response, “we have not set specificthat incorporates the promotion of gendertargets” was selected by 75% of all

equality into corporate strategies.

respondents and by 71% of companies andorganisations with a global business scope.

Gender pay gap (Q18)

The percentage of women on boards is

64% of all respondents, and 60% when

one of the key assessment criteria underrestricted to companies and organisations“governance” in ESG investment. Ensuringwith a global scope of business, reported

board diversity is a necessary measure for

not disclosing data. While the gender pay

improving the transparency and effectivenessgap in Japan for identical job levels andof the company’s highest decision-making

titles is minimal, it has been pointed out

body: the first step is the appointment ofinternationally that an overall pay gap

women. Companies often claim that targets

exists especially when taking into accountcould not be set due to lack of candidates,

non-regular and fixed-term employees.

but there are a wide range of measures that

The most significant factors are the higher

can be taken to increase the candidate pool,share of women in low paying jobs (non-such as reinforcing recruitment policies,

regular and fixed-term) and the low sharecollaborating with local communities andof women in senior management positions.

educational institutions, and promoting

The COVID-19 pandemic also revealed

gender equality in the workplace. Settingthat the concentration of women in non-Q17 Has your company/organization set targets for the percentage of women board members andformulated plans to achieve these targets? (SDG 5.5, WEPs 1 and 4)
We have not set specific targets for the percentage of women board
members.

74.9

Level 1

We have set targets, but have no action plan in place.

4.9

Level 2

We have set targets and formulated action plans (currently, thepercentage of women board members is less than 30%).

17.9

Level 3We have achieved a rate of 30% of women board members.

2.2
Responses (%)

Q18 Is your company/organisation taking measures to address the gender pay gap? (SDGs 5.1, 8.5, and10.3, WEPs 2) Select all that apply.
We have not conducted gender pay gap calculations.

63.7

We have conducted gender pay gap calculations, but the data exclude
figures on non-regular and fixed-term employees.

16.1

Level 1

Gender pay gap data covers all employees, including non-regular andfixed-term employees.

14.8

Level 2

Based on the data, we analyse the underlying factors that caused thegender pay gap.

12.1

Level 2

We have targets and action plans in place to close the gender pay gap.

3.1

Level 2

We disclose data on the gender pay gap.

4.9
Responses (%)

23

2

3.

2

3.

Gender Equality

regular employment is the root cause ofharassment could pose risks specific topoverty among women and single mothers.

women when conducting human rights due

Meanwhile, global trends are moving

diligence (human rights DD). Japan’s Fifth

towards eliminating the overall gender pay

Basic Plan for Gender Equality also calls ongap, and the number of legislations thatcompanies to eradicate “sexual harassment

obligate information disclosure is on the

toward job-seekers”. Survey results show thatrise, particularly in European and North

companies are putting in place mechanisms

American countries. In addition, the US

for safe reporting backed by the need toSecurities and Exchange Commission (SEC),

comply with national policies. As Japan is the

NASDAQ and other markets have begun to

only G7 country without a law that specificallyrequire disclosure to avoid litigation risks.

prohibits sexual harassment, it is essential

The first step towards closing the pay gap

that companies go beyond “compliance” andis to conduct gender pay gap calculations

take the lead to identify risks and establish

and analysis to ascertain the current statetargets and action plans.

of affairs and disclose such information. In
Japan, the government has announced that it

Parental leave for men (Q20)

will review its rules on corporate disclosure.

There is a globally shared recognition that
attitudes towards gender roles, such as those

Measures to eradicate all forms of violence

that consider women responsible for unpaid

and sexual harassment (Q19)

care and domestic work (e.g. housework,

Gender-based violence and violencechildcare, nursing care) and the genderagainst women and girls at home andimbalance in time spent on unpaid carepublic spaces is a global challenge that iswork, are the biggest barriers to women’sstrongly addressed by the SDGs. Workplaces

empowerment via education, economic

where supervisors and decision-makers areactivities, and political participation. For

dominantly male are public spaces withJapan in particular, the gender gap in theunbalanced power relations, an environment

amount of time spent on unpaid care workthat may have induced sexual harassment.

is remarkably large. Promoting parental

The issue of sexual harassment has therefore

leave for men is positioned as one concrete

been positioned as a priority that companies

measure to “redistribute the responsibility formust responsibly address, also within the G7

unpaid care work” that governments and theand G20 frameworks. Furthermore, sexual

private sector are currently working together

Q19 Has your company/organisation taken measures to eradicate all forms of violence and sexual
harassment at work? (Select all that apply)
We have not taken any specific measures.

1.8

Level 1

We have set targets and put action plans in place to prevent and address
violence and sexual harassment both inside and outside of the workplace.

46.6

Level 1

We have mechanisms in place for people to safely report incidences ofviolence and sexual harassment (e.g. internal and third-party points ofcontact for reporting, etc..)

95.5

Level 2

We conduct trainings for all employees on violence and sexual
harassment on a regular basis.

81.2

Level 2

Disciplinary measures against perpetrators are clearly stipulated anddisclosed.

65.9
Responses (%)

24

Gender Equality

to implement in various countries. Whileavailability of parental leave, and confirm their

Japan established a system early on and has

will to take it.

been praised in the international community,
a low uptake rate remains a major challenge

Gender responsive supply chain managementthat will require active efforts by the private(Q22)

sector. A large majority responded to the

Even at Level 1, the response rate was at asurvey as having specific measures in place

low 34% for global companies and 45% forand disclosing data. However, by industry,

those in machinery and equipment, which

only 46% of service-related and non-profit

scored the highest rate by industry. Legislation

organisations responded having specificon supply chain management is gaining

measures in place. In order to be able tomomentum within the larger framework oftake the leave, an additional boost at thebusiness and human rights, particularly inworkplace is necessary. The revised Child

Europe and North America. Implementation

Care and Family Care Leave Law, which willof human rights DD that integrates a gender

enter into force in phases from April 2022,

perspective across the entire supply chain iswill make it mandatory for companies to

expected to be required in the near future.

inform male employees individually of theQ20 Does your company/organisation conduct activities to encourage male employees to take parental
leave? (SDGs 5.4 and 8.5, WEPs 2)? (Select all that apply)
We do not carry out any specific activities.

17.9

Level 1

We have guidelines and specific measures in place to encourage male
employees to take parental leave.

67.3

Level 2

Male employees are required to take parental leave.

3.6

Level 3

We disclose information on the status of parental leave taken by male
employees based on data on the uptake rate and duration.

59.6
Responses (%)

Q22 Is your company/organisation implementing gender responsive supply chain management?
(Select all that apply)
We are not implementing gender responsive supply chain management.

61.4

Level 1

We include supply chain management in the scope of policies topromote gender equality.

30.5

Level 3

We collect relevant gender data from suppliers and clients in Japan and overseas.

19.7

Level 3We have systems in place to check/analyse collected data.

13.0

Level 2

We analyse and identify negative gender-driven risks and impacts from thedata, formulate measures to address them and disclose such information.

4.5

Level 2

We have policies and targets in place to procure from companies withcommitments to gender equality, e.g. companies that have a rate of
30% or more women on the board. Or, we have a supplier code of
conduct that explicitly states support for gender equality.

0.9

Level 2

We have policies and targets in place to promote procurement fromwomen-owned businesses in view of diversifying our supplier base anddeveloping and supporting women entrepreneurs. Or, we have a suppliercode of conduct that explicitly states support for women-owned businesses.

0.4
Responses (%)

25

2

3.

2

3.

Gender Equality

Disclosure on gender gaps (Q24)

and achieve gender equality, it is important toCommitment from top management andcollect and analyse data on a regular basis, as

accountability through monitoring of progress

well as integrate them in action plans (createand disclosure should be carried out as aand run a PDCA cycle).

set. The same applies to the WEPs, where
Principle 1 and 7 are a set. Similarly for

Messages for the future

the SDGs, governments are required tomonitor and publicise progress vis-a-vis the

The survey findings showed that companies

commitment made by the heads of states.

are putting systems in place and disclosing

For the WEPs, progress is evaluated againstcompany information as part of ensuring

the baseline data taken when companies

compliance with laws and regulations such

become signatories.

as the Act on the Promotion of Female
Participation and Career Advancement.

The overall survey results showed that theIt also revealed that the SDGs' emphasis

response rate for “data disclosed” at Levelon promoting gender equality has yet to

2 exceeded Level 1’s “mechanisms in place

influence domestic laws and regulations,

to collect data on a regular basis”. The

let alone corporate initiatives. Systems thathigher rate of response on disclosure may

have internalised gender roles and gender

be attributed to the implementation of thediscrimination must be reformed to create

Act on the Promotion of Female Participationa climate in which anyone can play an

and Career Advancement, which calls for

active role regardless of gender. Findings

mandatory disclosure of company data.

also showed that gender gap is not viewed

However, in order to put the data into use

as a governance issue. The aim of board

Q24 Does your company/organisation have mechanisms in place to collect the following data? (All SDGs, WEPs 7)

Percentage
of male/femaleemployees

Percentageof womenand men in
management

Percentageof womenand men in
new/midcareer hires

Comparison of
Uptake rate
the percentage of and duration of
women and men in parental leaveterms of promotion by women andand advancementmen

No mechanisms in place
to collect data on aregular basis (ad hoccollection is regarded as"no mechanism in place")

4.9

5.8

9.0

18.4

13.9

Level 1

Mechanisms in place
to collect data on aregular basis

17.9

17.0

24.7

37.2

21.1

Level 2

Data is regularly collected,
factors analysed for issues
identified, and efforts
made to address issues

2.7

4.0

9.4

24.7

9.9

Level 2

Data disclosed in integrated
reports, company website,
and in the database of the
Act on the Promotion of
Female Participation andCareer Advancement

74.4

73.1

57.0

19.7

55.2

Responses (%)

26

Gender Equality

diversification is to improve the transparency

launching initiatives that are in keeping withand effectiveness of decision-making bodies.

international SDGs and ESG standards. As aWork needs to be done to set numericalfirst step, we recommend utilising the WEPs

targets to promote women and strengthen

to ascertain your company’s current situation

the pipelines. Finally, “commitment” (topand challenges. From there, you can begin

management’s declaration of intent andto formulate actions that generate impact bycorporate policies and measures) andstarting with initiatives corresponding to Level 1.

“accountability” (setting targets and PDCA
cycles, monitoring, proactive corporate

Reference materials

reporting, etc.) go hand in hand. Integrationof gender perspectives into corporate policies

Women’s Empowerment Principles (WEPs)

and disclosure of more gender data are

https://www.ungcjn.org/global/gender.html

important.
Tools to implement promotion of gender
It is time to shift from the conventional

equality“female participation and advancement” tohttps://www.ungcjn.org/objective/ gender/

the “promotion of gender equality” approach,index.html

Case study spotlight
This section introduces good practices from a governance perspective. These companies haveset key performance indicators (KPIs), achieved zero pay gap, and are practising information
disclosure.
● (US) General Motors (Ranked 5th in Equileap’s Gender Equality Global Ranking 2021)
A Senior Leadership Team headed by the company Chair and CEO presides over the Boardof Directors and company executives to regularly review internal D&I measures and address
issues. Following the signing of the Whitehouse Equal Pay Pledge in 2016, the company
conducts an annual company-wide gender pay analysis and introduced three KPIs on genderratios and pay equity of board members and employees. As a result, the company has
achieved a 45% share of women on its Board of Directors and zero gender pay gap. The
company is also active in disclosing information through its sustainability and D&I reports,
including its efforts to develop female leaders via trainings, mentoring programmes, andpipeline development, and to develop women engineers.
● (France) Sodexo (Ranked 13th in Equileap’s Gender Equality Global Ranking 2021)
With 38% of the Board of Directors and 43% of company executives being women, Sodexo
is known as the company with the most gender-balanced decision-making bodies in France.
In 2009, the percentage of women in management positions was only 17%. Alarmed by thislack of diversity, the CEO at the time set up a Gender Advisory Board to carry out various
initiatives, including those aimed at changing the attitudes of employees and managers,
setting KPIs, and trainings. In 2016, the company set a target to increase the percentageof women in its top 200 positions to 40% by 2025, expediting its efforts by tying 10% ofcompany executives’ annual pay to achieving this target. Since then, the company has
continued to achieve results by setting and conducting comprehensive reviews of its KPIs.

27

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Decent Work andHuman Rights

Respect for human rights is at the coreof corporate initiatives on the SDGs

Emi Sugawara

Professor, Faculty of International Studies,
Osaka University of Economics and Law

 oughly 90% of companies and organisations have measures in place relatedR
to policy commitments (Q25), remediation and remedy mechanisms (Q27), andworkers (Q29), but the level of implementation does not measure up to thecontent of the UNGPs. Furthermore, an increasing number of companies andorganisations have yet to carry out measures pertaining to human rights due
diligence (Q26), consumers (Q30), and local communities (Q31). Although some
response options exceed 80% for companies with more than 50,000 employees,
further efforts are need across the board.
 ecognition that respect for human rights is an issue affecting not only workers,Rbut also consumers and local communities, remains weak overall. Human rights
risks, including those for consumers and local communities, must be identified
and included in concrete initiatives such as policy commitments, human rights
due diligence, and remediation and remedy mechanisms.
 he average response rate for all “Respect (Principles)” items was 42.1%. The
T
most urgent challenge towards achieving the SDGs by 2030 is the implementation
and review of items classified as “Respect (Principles)”. In parallel, efforts must be
expanded taking into account items classified as “Respect (Operationalisation)”.
sustainable society cannot be achieved. This

Significance and rationale

corresponds to the UN Global Compact’s
aim to realise globalisation based on giving “aSDG 8 aims to “promote sustained, inclusive

human face” to the global market by ensuring

and sustainable economic growth, full andthat companies and organisations respectproductive employment and decent work

(i.e. minimising negative impact) and support

for all”. In other words, this goal affirms that(i.e. increasing positive impact) human rights

unless employment opportunities for all

in their global business activities. Of these,

people are ensured, and unless the humanrespect for human rights is paramount, therights of all working people are guaranteed

details of which are clarified in the UN Guidingin the global activities of companies andPrinciples on Business and Human Rights

organisations, including their suppliers, a(UNGPs), formulated in 2011. They stipulate28

Decent Work and Human Rights

that: (1) companies have a responsibility tocovered, based on the fact that the UNGPs

respect internationally recognised humancall on all companies and organisations torights; (2) this responsibility covers theengage in initiatives on respecting humanentire value chain, including companies’ own

rights.

business activities and relationships; and (3)specific initiatives include policy commitments  

Results and discussion

on human rights, human rights due diligence,and remediation and remedy mechanisms.

The first step in respecting human rights
About the survey questions

for a company or organisation is to express

In light of the above, the survey section ona policy commitment. Implementation“decent work and human rights” consistedof “Respect (Principles)” items variesof (1) questions on processes related tofrom around 20 to 60%, and progress is

responsibility to respect human rights as

proportional to number of employees, withclarified by the UNGPs (Q25-27), and (2)companies of 50,000 employees or morequestions focusing on the human rights

scoring over 80% on some items. In particular,of specific stakeholders, namely workers,

there was a 40 percentage point difference
between companies with over 50,000

consumers, and local communities (Q29-31).

employees and respondents overall for the
Furthermore, response options for each

“we include respect for the human rights ofquestion were classified as either “Respect

stakeholders unrelated to labour issues in(Principles)”, “Respect (Operationalisation)”,our policy commitment that covers the entire

or “Promotion”. The “Respect (Principles)”value chain” response. Recognition of thatcategory was assigned to items that arefact that respect for human rights is an issue

specifically indicated as ways to respect

not only for workers, but also for consumers

human rights in the UNGPs, while items

and local communities, was seen to be weakthat question whether companies andoverall (also evident in Q27, Q30, and Q31).

organisations have operationalised respect

Furthermore, the percentage of respondents

for human rights in accordance with theirthat “reflect human rights issues identified

own business activities were categorised as

through stakeholder engagement in the“Respect (Operationalisation)”. “Promotion”

formulation and revision of our human rights

refers to initiatives that actively promote

policy commitment” is low at 21.1%. As issues

human rights protection, such as employment

cannot be identified without stakeholder

promotion and social contributions.

engagement, this process must be positioned
as a prerequisite for the formulation and

The UN has repeatedly affirmed that respectrevision of human rights policy commitments.

for human rights is at the core of engagement

While more than 90% of companies andwith the SDGs. Thus, it is important to noteorganisations have released some form ofthat no amount of effort made on “Promotion”

policy commitment, the challenge remains to

exempts companies and organisations fromalign their content with the UNGPs.

working on items that embody respect forhuman rights, i.e. the “Respect (Principles)”Human rights due diligence (Q26)

and “Respect (Operationalisation)” items. For

Due diligence (DD) is a process to ensure that

this first survey, we focused on the extent

sufficient care is taken not to violate humanto which the “Respect (Principles)” items arerights. Companies and organisations that

29

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Decent Work and Human Rights

Respect (Principles)
Respect(Operationalisation)
Promotion

minimising negative impact(respect)
Increasing positive impact(support)

Items specifically indicated in UNGPs
Items incorporated into the business context ofcompanies/organisations
Items including initiatives such as employment
promotion and social contributions

have not conducted human rights DD amountwith some disparities revealed by number

to 23.8% overall (65.5% of companies withof employees and sectors. A secondary

under 250 employees and 54.5% of service-

foundation is the measurement of humanbased companies). Moreover, items on humanrights risks. Human rights risks refer torights impact assessments, internal systems(potential) negative impacts on human rights

and institutionalisation, and informationthat are differentiated from management

disclosure, which constitute human rights DD,

risks. Accordingly, these risks cannot be

are also weak at around the 20-30% level.

ascertained without stakeholder engagement.
Currently, a limited 23.8% of all respondents

One of the foundations of human rights(44.4% of companies with over 50,000

DD is employees’ understanding of theemployees) are engaging with stakeholders.

“business and human rights” concept.
Training opportunities on business andRemediation and remedy mechanisms (Q27)human rights targeting all employees were

Even when companies and organisations

provided by around 60% of companies

devote themselves to human rights DD,

and organisations, including 88.9% of

human rights violations can still occur.

companies with over 50,000 employees,

Therefore, apart from human rights DD, a

Q25 Which of the following describe your company/organisation in terms of a policy commitment on
respect for human rights? (Select all that apply)
We do not have any specific policy commitments in place.

9.4

Respect (Principles)

Top management (of entire group) has expressed their commitment.

61.4

Respect (Principles)

We have a policy commitment in place on respect for human rightsthat references internationally recognised human rights and has been
made available publicly.

55.2

Respect (Principles)

We include respect for workers’ human rights in a company-/organisation-wide (or group-wide) policy commitment that covers
the entire value chain.

62.3

Respect (Principles)

We include respect for the human rights of stakeholders unrelated
to labour issues in our policy commitment that covers the entire
value chain (e.g. human rights issues related to consumers and local
communities involved in our business).

41.7

Respect (Principles)

We reflect human rights issues identified through stakeholder
engagement in the formulation and revision of human rights policy
commitment.

21.1

Respect(Operationalisation)

We identify high-priority human rights issues that are related to ourbusiness and clarify these in our policy commitment.

31.4

Other

9.9
Responses (%)

30

Decent Work and Human Rights

Q26 Which of the following describe your company/organisation in terms of human rights due diligence?
(Select all that apply)
We are not taking any specific measures or are not currently addressing
this issue.

23.8

Respect (Principles)

We offer training opportunities that address business and human rights
to all employees.

58.3

Respect(Operationalisation)

We set incentives for respect for human rights, including making respectfor human rights one of the performance indicators for senior/middle
management.

4.9

Respect(Operationalisation)

We incorporate our human rights policy commitment into specific actionplans (set targets, track and evaluate performance and results).

26.0

Respect (Principles)

We release information on activities related to respect for humanrights, including our human rights policy commitment, human rights due
diligence, and remediation and remedy actions, in a cohesive format
that is easily accessible to stakeholders.

34.5

Respect (Principles)

We engage with stakeholders on human rights due diligence in business
operations.

23.8

Respect (Principles)

We conduct human rights impact assessments of our own operations,as well as for the value chain, based on the overall perspective andpriorities of our own human rights agenda.

24.2

Respect (Principles)

We have an internal division or system that examines crossdepartmental human rights issues and grants the necessary authority
and budgets for human rights activities.

33.2

Other

8.5
Responses (%)

process by which stakeholders can report

range of stakeholders targeted and ensuring

violations is needed. Companies andeffectiveness through transparency andorganisations indicating that they haveengagement.

external processes available to their own
workers stood at 82.5%. On the other

Decent work for all workers (Q29)

hand, stakeholders affected by business

When it comes to workers as a stakeholder

activities extend along the entire value chain,group, 92.8% of companies and organisations

including consumers and local communities.

are working to manage and optimise the

Implementation of mechanisms going beyond

working hours of employees within theircompanies’ own workers stood only in thegroups. On the other hand, although

30% range.

companies and organisations are required
to respect internationally-recognised human

Additionally, it is essential that stakeholders

rights, efforts aimed at equal pay for equal

can trust and use these processes. Disclosure

work, forced labour and human trafficking

of information on usage and responses stoodscored low, in the 50-60% range.

at 20.2%, while engagement-based initiatives
came in at just over 10%, showing that very

To realise SDG 8, it is essential to ensure

little progress has been made on initiatives

decent work in the value chain. To thisin this area. While nearly 90% of companies

end, companies must confirm whether theirand organisations have mechanisms inbusiness activities have any negative impacts

place, challenges remain on expanding theon the human rights of the workers of

31

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Decent Work and Human Rights

Q27 Which of the following statements describe your company/organisation in terms of remediation andremedy (grievance) mechanisms? (Select all that apply)
We do not have any specific mechanisms in place.

12.6

Respect (Principles)

We have external consultation and remedy mechanisms (lawyers or
NGOs, etc.) for company/organisation and group workers.

82.5

Respect (Principles)

We have consultation mechanisms (either internally or externally) thatcan be used by anyone outside the company/organisation, including
consumers and local residents.

37.2

Respect (Principles)

We disclose information on the usage of consultation mechanisms andprocedures, grievances contents and response measures, including theabove two options.

20.2

Respect(Operationalisation)

We engage with stakeholders who may use these mechanisms, in orderto review consultation and grievance mechanisms.

10.3

Respect (Principles)

We have mechanisms in place for consultations and grievances available
to workers in the value chain.

31.4

Respect (Principles)

We work with victims (or individuals and organisations representingthem) and engage with suppliers, clients, and third parties (NGOs, etc.)
to have remediation and remedy in place.

13.5

Other

4.0
Responses (%)

Q29 Decent work for all workers (Select all that apply)
We are not taking any speciﬁc measures.

4.5%

We monitor the working hours of workers in
our group companies and make an eﬀort to
optimise working hours.

92.8%

We are developing or starting to consider thedevelopment of equal pay for equal work in thecompanyʼs/organisationʼs systems.

53.4%

We have our policy commitment in place prohibiting forced and compulsory
labour, human traﬃcking, and long working hours, including for technical interntrainees in our company/organisation and suppliers, as well as a policy
commitment prohibiting discrimination and harassment of foreign nationals.
We lobby the government (either on our own or through aﬃliatedorganisations) to ratify treaties and legislation and solve problems toensure decent work in countries and regions where we operate.

60.1%

1.3%

Respect (Principles)

We take corrective actions to ensure decent work (wages,
working hours, etc.) at suppliers, including a review of our own
QCD (quality, cost, delivery) requirements.

17.5%

Respect (Operationalisation)
Promotion

No measures/other
Other

1.8%
0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

Responses (%)

32

Decent Work and Human Rights

business partners, and if so, correct their QCD

initiatives to provide products and services(quality, cost and delivery) requirements.

that reflect consumers’ needs. A prerequisite

Currently, only 17.5% of respondents havefor these promotional initiatives is respect

implemented such measures, showing thatfor human rights, and to this end, there is aefforts have not progressed.

pressing need to identify human rights issues
relevant to consumers.

Consumer-related human rights initiatives(Q30)

Initiatives addressing the human rights of

The respect for human rights expected of

local communities (Q31)

companies and organisations also extends

Like consumers, local communities areto consumer rights. Nevertheless, 35.4% ofaffected by business activities and arecompanies and organisations have yet toincluded in the scope of initiatives on

implement any measures, indicating that

respect for human rights. With 35.4% of

the human rights of consumers are not fullycompanies and organisations having yet torecognised. Of course, some businesses do

implement measures, reaffirming the humannot directly target consumers, but when therights of local communities is an urgent

value chain is included, impacts may reachissue. Specifically, amidst growing concern

consumers.

and protests over deep-rooted problems insociety (structural injustices) such as forced

Meanwhile, initiatives to further promoteand compulsory labour, child labour, andthe protection of consumer rights, such as

racial and gender-based discrimination anduniversal design and social contributions,

violence, companies doing business in society

are implemented by around 30% of allare being asked to take a stance against

respondents, and 66.7% of companies withand address these human rights issues.

more than 50,000 employees implement

Currently, a mere 29.6% of companies and

Q30 Consumer-related human rights initiatives (Select all that apply)
35.4%

We are not taking any speciﬁc measures.
We understand the human rights issues ofconsumers and users (end users) who are
involved with our business.

25.1%

We oﬀer products and services (e.g. universal
design) that reﬂect the needs of minority consumers
and customers.

35.4%

We take measures against human rights abuses of consumers
and users of our companyʼs/organisationʼs products andservices (e.g. hate speech on social networking sites).

6.7%

We identify issues related to respect for humanrights from consumer/client grievances and put
measures and processes in place to address them.

23.3%

We contribute to the greater realisation of humanrights through our products and services.

30.9%

Respect (Principles)

Respect (Operationalisation)

5.4%

Other

Promotion

No measures/other
0.0

10.0

20.0

30.0

40.0

50.0

60.0

Responses (%)

33

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Decent Work and Human Rights

Q31 Initiatives on the human rights of local communities (Select all that apply)

We are not taking any speciﬁc measures.

35.4%

We carry out activities that contribute to local communities inorder to resolve human rights issues in countries and regions(either in-house or in collaboration with other parties).

43.4%

We make policy recommendations to the national
government (either individually or as a group) to addressnational- or regional-level human rights issues.

1.3%

We have corporate policies (policies or procedures) in place (either
on our own or as a group) to address the structural problems ofhuman rights abuses in the countries and regions where we operate.

7.6%

We understand the human rights issues that exist in the
countries and regions where we operate (e.g. through regular
information gathering and human rights impact assessments).

29.6%

We engage in activities (either in-house or in collaboration
with other parties) to resolve human rights issues incountries and regions through our core businesses.

Respect (Principles)

22%

Respect (Operationalisation)

Other

Promotion

4%
0.0

10.0

No measures/other
20.0

30.0

40.0

50.0

60.0

Responses (%)

organisations are implementing initiatives to

as part of corporate social responsibility.

ascertain human rights issues that exist in theGoing one step further, there is a movement

countries and regions where they operate.

to incorporate corporate responsibility

Even for companies with more than 50,000

to respect human rights in national laws

employees, this figure is only 51.9%.

(making it mandatory) in European and North
American countries and at the EU level. The

Meanwhile, 43.9% of companies and

UN Global Compact supports this trend. The

organisations are engaged in social

expectation that companies will take more

contribution activities, and this figure exceeds

proactive measures to promote human rights

70% for companies with more than 50,000

is also included in the SDGs, but the major

employees. While initiatives that go one step

premise is that they fulfil their responsibility

further, for example, “policy recommendations

to respect human rights.

to the national government (either individuallyor as a group) to address national- or

However, the average response rate for all

regional-level human rights issues”, areitems classified as “Respect (Principles)” in thisexpected, ensuring that the human rights ofsurvey was under half, at 42.1%. To achieve

local communities are not violated must be

the SDGs by 2030, implementation andthe starting point.

review of “Respect (Principles)” items is therecommended first step. In parallel, initiatives
based on the “Respect (Operationalisation)”

Message for the future

items should be expanded. For example, CSR
procurement constitutes human rights DD

The international community has affirmed thattargeting the supply chain, but it is only one

companies must respect the human rights

part of the human rights DD required for theof all stakeholders in the entirety of their

entire value chain, including, for instance,business activities, including their value chains,

investment and distribution processes, as

34

Decent Work and Human Rights

well as impacts on consumers and local

Implementing the United Nations “Protect,communities. Moreover, the impacts of

Respect and Remedy” Framework” (A/corporate operations extend beyond the

HRC/17/31)

human rights of workers to the human(UNIC Japanese translation)rights of consumers and local communities.

http://www.unic.or.jp/texts_audiovisual/Companies and organisations should beginresolutions_reports/hr_council/ga_regular_

by identifying the human rights risks involved

session/3404/

in their activities, including the human rights
of consumers and local communities, andOffice of the United Nations Highincorporate these into concrete initiatives,

Commissioner for Human Rights

such as policy commitments, human

Publications and resources: OHCHR andrights DD, and remediation and remedy

business and human rights

mechanisms.

https://www.ohchr.org/en/business-andhuman-rights/publications-and-resources

Reference materials

MOFA “Business and Human Rights Portal
Site”

UN Human Rights Council (2011) “Guiding

https://www.mofa.go.jp/mofaj/gaiko/bhr/

Principles on Business and Human Rights:

index.html

Case study spotlight
Respect for human rights is at the core of realising the SDGs, and companies andorganisations are being called upon to take concrete measures to respect the human rights ofstakeholders involved in their business activities, including those in the value chain. Of these,
discussion on the effectiveness of grievance and consultation mechanisms is ongoing.
Although a handful of efforts to expand existing mechanisms (e.g. consultation mechanisms
on whistle-blowing, harassment, and compliance) and broaden the scope of grievanceprocedures were reported in this survey, mechanisms that remain limited in scope werealso reported, such as only covering violations committed by internal company executives
and employees. Mechanisms that are accessible to victims in the value chain, such as thosethat broadly accept reports of human rights infringements that violate company policy
commitments (e.g. those based on open information such as those at Aeon, NEC, JSR, Sharp,
Yamaha, Shionogi, Hitachi Transport System, Azbil, etc.) are expected.
In addition to expanding access, disclosing information on the use of and responses togrievance procedures is essential to enable stakeholders to trust and use the system. The
Fuji Oil Group updates the status of each report of grievances for its procedures targetingthe palm oil supply chain that were established by in 2018, and information is disclosed to
stakeholders on a quarterly basis (228 incidents as of the end of March 2021).
Principle 31 of the UNGPs sets out eight requirements for ensuring the effectiveness ofgrievance mechanisms, including the aforementioned accessibility and transparency. In
essence, mechanisms should be available to those who need to use them when they need to
do so. It is important to reiterate that grievance mechanisms are one aspect of stakeholder
engagement (dialogue/collaboration).

35

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3.

Circular Economy

Shifting to a new economic
system that goes beyond the 3Rs

Mizuki Kato

Policy Researcher
Sustainable Consumption and Production Area
Institute for Global Environmental Strategies(IGES)

Chika Aoki-Suzuki

Senior Researcher/Deputy Director
Sustainable Consumption and Production Area
Institute for Global Environmental Strategies (IGES)

 or SDG 12, we examined and analysed the status of initiatives on circular economy.
F
The many initiatives reported included several on recovery of used containers
and products based on cooperation between manufacturers and retailers, as wellas those involving recycling and switching to recycled materials and/or recycledresources for containers and packaging, in cooperation with recyclers.
 n the other hand, results showed that initiatives in sharing services and ProductO
as-a-Service (PaaS), as well as the establishment of systems for recycling, repair,resale, and remanufacturing, need to be further expanded.
 apanese companies are being called upon to utilise their wealth of knowledge,
J
experience, and networks in the 3Rs, an area in which they have many skills,
to work to establish further circulation loops and new business models that go
beyond the 3Rs, including changing consumption patterns by employing sharing
services and PaaS.
disposal with an economy that preserves

Significance and rationale

and maintains the value of products andresources for as long as possible andSustainable consumption and production

minimises the generation of waste. The EU(SCP) is crucial to achieving the SDGs, andannounced its New Circular Economy Action

businesses have a very significant role toPlan in March 2020, while in February ofplay. In recent years, the circular economy

the same year in Japan, METI announced its

has been attracting attention both in Japan

Circular Economy Vision 2020, which aims toand around the world as a concrete vision.

contribute to global environmental protection

The circular economy aims to replace theand strengthen the medium- to long-term

conventional one-way economy of masscompetitiveness of Japanese industry by

production, mass consumption, and mass

shifting to circular economic activities.

36

Circular Economy

Increasing measures on the circulation offood (40), chemicals/pharmaceuticals (34),plastic resources, which has become a major

manufacturing/transport (35), and machinery/social issue of late, are expected, such as theequipment (49). The scope of business of the

new Plastic Resource Circulation Act that was

responding companies was as follows: 130

approved by Cabinet Decision in 2021 (cameoperate overseas; 102 of the 158 companies

into force in April 2022).

have more than 5,000 employees; and 125
had sales exceeding 100 billion JPY.

Furthermore, the circular economy has
been highlighted as a response to climate

Results and discussion

change. According to a report by the UNEPInternational Resource Panel (IRP), resource
extraction and processing account for roughly

Implementation of circular economy

half of the emissions driving climate change,

initiatives by business model (Q32, Q33)

making the issue of resource circulation highly

The status of implementation of Circular

relevant to the SDGs on climate change andEconomy (CE) initiatives by business model isbiodiversity.

summarised below and serves as a review of
initiatives related to SDG 12.

Additionally, encouraging behavioural change
in citizens is essential for the realisation

As shown in the graph below, more thanof both the circular economy and SCP.

95 companies, or approximately 60% of theAccordingly, the questionnaire for this survey

158 respondents, reported already having

was written based on two categories: (1)initiatives in place in “reduction in packaging

status of implementation of circular economy

materials used and conservation of resourcesbusiness activities and (2) status of initiatives

in containers and packaging”, “extension of

on sustainable lifestyles and education. To

period a product is valuable”, “use of andfacilitate responses on questionnaire items

switch to recycled materials and resources”,

on circular economy, question content wasand “introduction of circular productbased on the five typical business models

design”. In contrast, items selected byintroduced in the CEO Guide to Circular

fewer than 63 companies, or approximately

Economy by the World Business Council for

40% of total respondents, were: “inclusion

Sustainable Development (WBCSD): “circularof environmental information related tosupplies”, “product life-extension”, “sharing

material efficiency”, “development of sharing

platform”, “resource recovery”, and “Products

services”, “development of business models

as a Service (PaaS)”.  

to offer products as a service”, “introduction

Only companies in industries consideredsystems”, “development of systems toto have a significant direct or indirectcollect and recycle used products”, andinvolvement with natural resources were“development of systems to collect, repair,of returnable systems and product deposit

asked to respond. Companies in the

resell, and remanufacture used products”.

production/food, chemicals/pharmaceuticals,

Other initiatives such as “clarification of

manufacturing/transport and the machinery/

specific policies”, “procurement of sustainableequipment industries were asked to respond,

raw materials”, and “development andand responses from 158 companies wereintroduction of recyclable alternative

received. Specifically, reporting frommaterials” were implemented by around 50%

companies by industry was: production/of respondents.

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3.

Circular Economy

By industry, the machinery and equipment

establish systems to collect, recycle, repair,sector is involved in many CE initiatives, which

resell, and remanufacture their used products

may be a result of the importance placed

are limited, suggesting that companies haveon CE, particularly in the manufacturing

yet to establish systems throughout theirsector, which has a deep-rooted and direct

value chains to realise a circulation loop.

connection to natural resources. Meanwhile,
among items with an overall implementation

Lifestyles and education (Q37)

rate of less than 40%, PaaS and sharing

For questions on lifestyles and consumer

businesses are items showing the least

education, both linked to the sustainableamount of progress, with less than 50

management and use of natural resources,

companies implementing them. Althoughfewer than 100 out of 158 companies

numbers are low, with 22 of 158 companies

reported implementing initiatives for all

implementing sharing initiatives, and 49

question items, a lower figure compared tocompanies for PaaS, implementation ofquestions on CE initiatives. However, overinitiatives was reported. In industries other

40% of companies reported taking action on

than manufacturing, some responses were“product design and use of environmental

received from companies looking to expand

labels” and “awareness-raising activities totheir share of the sharing, subscription, andencourage lifestyle shift”. Although no major

upcycling markets by 2030, revealing a trend

characteristics were evident by industry, 24

to view CE initiatives, such as sharing services

companies in both the food/logistics/local

and PaaS, as business opportunities. On

government/other and machinery/equipment

the other hand, activities by companies tosectors reported initiatives on productTypical circular economy initiatives: rate of implementation (Q32, Q33 S1-13)
Overall

37

Clariﬁcation of speciﬁc policies

20

Procurement of sustainable raw materials

28

22

20

Introduction of circular product design

25

24

28

27

23

Use of and switch to recycled materials
and resources
Development and introduction ofrecyclable alternative materials
Inclusion of environmental information
related to material eﬃciency
Reduction in packaging materials used andconservation of resources in containers and packaging

24

Extension of period a product is valuable
Development of sharing services

8 4

14
11

13

0

10

5

10

11

82

41

26

119

42

23

105

49

24

13

17

12

110

22

7 3 7 5Development of business models to oﬀer
products as a “service”
Introduction of returnable systems andproduct deposit systems
Development of systems to collect andrecycle used products
Development of systems to collect, repair,resell, and remanufacture used products
Recovery, reuse, and recycling of used products
and resources including other companiesʼ products

23

15

23

27

59

26

28

109

32

23

12

9

94

24

33

23

15

86

25

23

18

158

49

38

34

11

54

11
40

Manufacturing/transport/electricity/gas/otherChemicals/pharmaceuticals

51

22
22

Machinery/equipment

61

21

16

14

20

12

Food/logistics/local government/other
Overall

54
60

80

100

120

140

160

Total responses: 158 companies (above figures are total of respondents stating they have implemented each item).

38

Circular Economy

Lifecycles and education initiatives: rate of implementation (Q37 S1-5)
Overall37

34

Education for consumers and generalpublic to encourage lifestyle shift

17

10

Awareness-raising activities
to encourage lifestyle shift

18

11

Product design and use ofenvironmental labels

24

Development of businessmodels that promote action

16

Incentives for consumers and generalpublic (discounts, point systems, etc.)

8
0

13
18
11

8

15

5 6 6

25

20

12

38

158

49

52

66

19
16

24

14

Machinery/equipment

75

Manufacturing/transport/
electricity/gas/otherChemicals/pharmaceuticals

53

Food/logistics/local government/other
Overall

40

60

80

100

120

140

160

180

Total responses: 158 companies (above figures are total of respondents stating they have implemented each item).

design and the use of environmental labels,reported, although somewhat limited inshowing that companies are working to utilise

scope. These include J. Front Retailing’s

environmental labeling as a first step towards

development of a fashion subscription

realising sustainable lifestyles.

business, as well as Nissha’s development
and demonstration of a take-out container

Examples of CE in practice

sharing service with NEC Solution Innovators.

Several cooperation-based initiatives on CE

In other examples, Marubeni is working

were reported in this survey. The following

with Netherlands-based Circularise on atable summarises the main forms oftraceability management platform initiative.

collaboration related to CE and lists some

They are running trials designed to contribute

reported examples of initiatives. Only theto supply chain transparency by selectively

names of GCNJ member companies are listed

disclosing traceability-related informationin the table.

such as product design and specifications,

As indicated above, opportunities forprocessing conditions, and recycling history,collaboration within industries, or in value

as well as data on resource efficiency suchchains, have arisen around the issue of CE.

as carbon footprint and recycling ratios, andNumerous examples were reported, manyenvironmental response indicators. The effort

of which were initiatives by recyclers in theis attracting attention as an initiative utilisingcollection and recycling of used containers,

digital technology for CE. Additionally,

the development of technologies forparticipation in domestic and international

resource circulation, and the creation of

public-private partnership platforms on CE

collection and recycling loops that encourage

was reported, indicating a growing awarenessvoluntary collection by consumers. Aside

among companies on CE. Creation of further

from these initiatives, concrete examples

opportunities for collaboration through theseof sharing services and PaaS were also

various forums can be expected.

39

4

3.

4

3.

Circular Economy

Type of collaboration

Initiative reported

Intra-industry
collaboration between
material manufacturers(waste plastic oilification,
chemical recycling, etc.)●ENEOS, Mitsubishi Chemical
Launched joint venture in plastic oilification. A chemical recycling facility
will be constructed and commercial operation of waste plastic oilification
will commence in FY2023. The project aims to ensure stable procurementof waste plastic raw material, add value to products by acquiring circular
economy-related certification, and acquire further technical knowledge asa next-generation business.

Intra-industry
collaboration with local
gov’t., distributors andconsumers (recovery/
recycling of refill packs)●Earth Corporation, Kosé, Milbon, Lion, others.
A collaboration between Kobe City, retailers, manufacturers, recyclers,and 16 manufacturers of daily commodities/cosmetics. Boxes have been
installed in 75 shops in Kobe to collect used refill packs, with the aim ofhorizontal recycling.
●Aeon, Lotte, otherAs part of the “LOOP retail model”, xylitol bottled gum are sold in reusable
stainless steel containers instead of plastic containers, with a deposit
collected from consumers for the cost of the containers. Empty containers
are collected, cleaned, and refilled with gum, in an aim to reduce theamount of plastic waste in the industry as a whole.

Value chain
collaboration (recovery
and recycling of PET
bottles)●Kirin Holdings, otherD emonstration project utilising the infrastructure of Lawson and Kirin
Holdings in the collection of used PET bottles. Aimed at increasing the'bottle-to-bottle' ratio by enhancing customer convenience for putting used
PET bottles in the collection route, and also reducing CO2 emissions andother environmental impacts by improving the efficiency of the containercollection route.

Intra-industry, value
chain collaboration(technology
development with othercompanies)●Suntory, Asahi Group, otherEstablished joint venture company called R Plus Japan. Capital participation
by Nisshin Oillio Group, Morinaga Milk Industry and others. Aimed atdeveloping an efficient recycling technology for used plastics with a low
environmental impact to be commercialised in 2027.

Intra-industry, value
chain collaboration(Reduction andcirculation of foodwaste)●Kikkoman, Aeon, others
Participates in the World Resources Institute’s 10x20x30 Food Loss andWaste Initiative. Ten of the world’s leading retailers, together with 20 of
their suppliers, aim to halve food waste across their supply chains by 2030.

Other(Public-private
partnership platforms
and private sector/civilsociety partnerships)●Domestic platforms (number of members out of 93 responding companies)
1 7 companies in J4CE (Japan Partnership for Circular Economy), 16
companies in CLOMA (Japan Clean Ocean Material Alliance)●International initiatives
4 companies in AEPW (Alliance To End Plastic Waste), 4 companies
in WBCSD (World Business Council for Sustainable Development), 2
companies in Ellen MacArthur Foundation

40

Circular Economy

more circulation loops and business models

Messages for the futurethat go a step beyond the 3Rs. Numerous
partnerships and cross-industry collaborations

The survey showed that CE initiatives are

aimed at realising a circular economy arewidely implemented, mainly through resource

already underway and continue to grow.

conservation and the use of or switch to

Further development and implementation ofrecycled materials and recycled resourcesbusiness initiatives in CE will be required tofor containers and packaging. Many reports

transition to a new economic system towards

were received on partnership initiatives

the 2030 target.

involving manufacturers and retailers, as well
as recyclers and consumers. However, further

Reference materials

expansion of initiatives in sharing and PaaS, aswell as the creation of systems for recycling,
repair, resale, and remanufacturing, are

UNEP International Resource Panel (IRP)

needed. CE tends to be viewed as a limited(2021) “Resource Efficiency and Climate

concept, an extension of the 3Rs with little

Change: Material Efficiency Strategies forrelevance outside the manufacturing industry.

a Low-carbon Future, Summary for Policy

However, new business opportunities are

Makers” (Japanese translation)

anticipated in the sharing and PaaS markets,

https://www.iges.or.jp/jp/pub/resource-even for industries not directly involved inefficiency-and-climate-change-spm/ja

manufacturing processes.
UNEP International Resource Panel (IRP)
CE is also closely linked to decarbonisation(2019) “Global Resources Outlook 2019and demands a perspective that encompasses(GRO2019): Natural Resources for the Future

the entire lifecycle. There are various

We Want, Summary for Policy Makers (SPM)”

approaches to establishing a circulation loop,(Japanese translation)

including not only recovery and recycling,https://www.iges.or.jp/jp/pub/gro2019/ja

but also factoring recyclability into productdesign, as well as reduce/reuse approaches

World Business Council for Sustainable

based on sharing services and PaaS. With

Development (WBCSD) (2017) “CEO Guide

these in mind, and utilising the wealth ofto the Circular Economy”

knowledge, experience, and networks ofhttps://docs.wbcsd.org/2017/06/CEO_Japanese companies in the 3Rs, we must

Guide_CE_JPN.pdf

work going forward towards the realisation of

41

4

3.

5

3.

Climate Change
Tips for turning pledges into
actions

Kentaro Takahashi

Deputy Director
Climate and Energy Area
Institute for Global Environmental Strategies (IGES)

Akibi Tsukui

Programme Manager
Climate and Energy Area
Institute for Global Environmental Strategies (IGES) pproximately 70% of GCNJ member companies and organisations have set netA
zero targets for 2050.
 round 80% have identified Scope 1 and Scope 2 GHG emissions. More than halfA
have identified climate change risks and opportunities and integrated them into
strategies and plans. They are also working on responses to the growing trend
towards climate-related information disclosure.
 nergy saving and renewable energy are being steadily promoted towards
E
achieving net zero. Preparations for the future have begun, including examining
the introduction of an internal carbon pricing and other approaches.
 o encourage further efforts by companies, support is needed to reduce the costsTof decarbonisation and address technical challenges.

reduction targets for 2050.

Significance and rationale

With increasing net-zero announcements byEfforts are ramping up in the international

non-state actors, there is a growing demandcommunity to address climate change toward

for non-financial information disclosure,achieving the goals of the Paris Agreement.

especially that made publicly available by

On 26 October 2020, then Prime Ministercompanies. In this context, the number of

Yoshihide Suga announced in a general policy

companies and institutions declaring support

speech that Japan will aim to achieve net-

for the Task Force on Climate-Related

zero greenhouse gas (GHG) emissions by

Financial Disclosures (TCFD), established

2050. Since then, many non-state actors,

in 2015 under the leadership of the private

including companies and organisations

sector, is increasing every year, with 2,897

in Japan, have announced GHG emission

companies and institutions globally and 660

42

Climate Change

companies and institutions in Japan having

Results and discussion

expressed their support. The TCFD calls fordisclosure in the four climate-related areas of“governance”, “strategy”, “risk management”,

Status of net-zero targets for 2050 (Q38)

and “metrics and targets”, with information on

The table below shows the status of 2050

GHG emissions as one of the key indicators

targets by GCNJ member companies andfor companies and organisations to assessorganisations. Firstly, 70.4% of respondents

climate-related risks and opportunities in theoverall have set a target to achieve net

future. Furthermore, companies are calledzero by 2050. In terms of specific targets

upon to prepare for these climate risks andestablished, the highest percentage of 33.6%

take action to achieve net zero.

of respondents selected, “top management
has expressed commitment to achieving net

In this fast-changing environment, the role ofzero (not taking part in SBTi)”, followed by “wenon-state actors in achieving a decarbonised

are taking part in SBTi to achieve net zero”,

society is attracting increasing attention.

at 22.9%. Next were “we have set internal

The questions in this survey were designed

targets to achieve net zero” at 10.3%, andto clarify challenges faced in achieving net“we aim to be carbon positive in addition tozero and to suggest advisable paths andtaking part in SBTi to achieve net zero” atinitiatives that GCNJ member companies and

3.6%.

organisations should take going forward.
The SBTi requires the setting of GHG emission
reduction targets with target years between

Q38 Has your company/organisation set targets to achieve net zero by 2050?
【By Industry】
1. F
 ood,
logistics, local
government, etc.

2. C hemicals andpharmaceuticals

3. Manufacturing,transport,
electricity, gas, etc.

4. M
 achinery andequipment

5. S
 ervice,
non-profit, etc.

6. Information,
finance,real estate, etc.

223

37

34

38

49

33

32

We have not set targets to achieve net
zero.

29.6

24.3

20.6

13.2

22.4

72.7

31.3

We have set internal targets to achieve
net zero.

10.3

8.1

23.5

7.9

8.2

12.1

3.1

Top management has expressedcommitment to achieving net zero (nottaking part in SBTi)

33.6

37.8

32.4

52.6

30.6

6.1

40.6

We are taking part in SBTi to achieve
net zero.

22.9

24.3

20.6

26.3

32.7

6.1

21.9

We aim to be carbon positive in addition
to taking part in SBTi to achieve net zero.

3.6

5.4

2.9

0.0

6.1

3.0

3.1

Overall

Overall(Overall: Number of companies/organisations; Other: %)

43

5

3.

5

3.

Climate Change

5 and 15 years ahead, consistent with theprofit sector. The survey revealed that 72.7%

levels required by the Paris Agreement. Asof those classified in this industry type haveof January 2022, a total of 173 Japanese

not set any targets.

companies participate in the SBTi (including
certified and committed companies). Of

Status of measures on climate-related

these, 59 companies, or approximately 30%,

information disclosure (Q39, Q43)

are member companies or organisations

The table below shows the status ofthat responded to this survey. This likely

identification of GHG emissions by scope

contributed to the large number of companies

for the GCNJ member companies andin this survey that reported having set net

organisations that responded to this survey.

zero targets for 2050.

Firstly, the number of member companies
and organisations responding that they

Survey results by industry found that 86.8%

had identified Scope 1 and Scope 2 GHG

of member companies and organisations

emissions both exceeded 80%. The number

classified as manufacturing, transport,that had identified Scope 3 GHG emissions

electricity, and gas, which are large emitters

was slightly lower than those having identified

compared to other industries, have set

Scope 1 and 2 emissions, at 69.1%.

targets. Meanwhile, 29.6% of respondents
selected, “we have not set targets to achieve

When compared by industry, the member

net zero”, a striking number of which werecompanies and organisations classified as

member companies and organisations(1) food, logistics, local government, etc.,classified as the service industry and non-(2) chemicals and pharmaceuticals, (3)Q39 Please select, by scope, the greenhouse gas (GHG) emissions that you identify at your company/
organisation. (Select all that apply)【By Industry】
1. F
 ood,
logistics, local
government, etc.

2. C hemicals andpharmaceuticals

3. Manufacturing,transport,
electricity, gas, etc.

4. M
 achinery andequipment

5. S
 ervice,
non-profit, etc.

6. Information,
finance,real estate, etc.

223

37

34

38

49

33

32

We do not identify the scope of our
GHG emissions.

11.2

5.4

0.0

5.3

4.1

51.5

6.3

Scope 1 (direct emissions occur fromsources owned or controlled by thecompany/organisation)

83.9

91.9

97.1

92.1

93.9

36.4

84.4

Scope 2 (indirect emissions from theuse of electricity, heat, and steam
supplied by other companies)

80.3

86.5

88.2

86.8

93.9

36.4

81.3

Scope 3 (some or all of the indirectemissions from other companies thatare related to our business operations)

69.1

70.3

85.3

84.2

83.7

18.2

62.5

Overall

Overall(Overall: Number of companies/organisations; Other: %)44

Climate Changemanufacturing, transport, electricity, gas,

into our strategies and plans” response.

etc., (4) machinery and equipment, and (6)Meanwhile, 58.3% answered, “we haveinformation, finance, real estate, etc., that had

identified risks and opportunities andidentified Scope 1 and 2 emissions accounted

integrated these into our strategies andfor roughly 80 to 90 percent. This means

plans”. Above and beyond information onthat they have identified both their own

GHG emissions, information related to climate

direct GHG emissions and emissions fromon the whole, including risk management andthe use of heat and electricity supplied byrelated strategies, must also be disclosed.

other companies. On the other hand, 51.5%
of member companies and organisations

Initiatives focused on achieving net-zeroclassified as the service industry or non-profit

targets (Q40)

organisations reported not having identified

The following table shows the initiatives

their emissions by scope. Potential reasonsof focus for responding GCNJ member

may include a lack of human resources,

companies and organisations in their efforts

knowledge, or experience. We can surmiseto achieve net zero. Results showed thatthat the large number of service industry and97.3% of respondents are engaged in

non-profit organisations having not set a 2050

“promotion of energy savings (energy-saving

net-zero target, as indicated by the results forbehaviour, installation of equipment, review

Q38, is due to the fact that they have yet toof working practices, reduction of office

fully identify their emissions by scope.

floor space, etc.)”, and 66.4% are working
on “increased procurement of electricity

From April 2022 in Japan, companies listedfrom renewable energy sources (excluding

on the prime market, the highest level of therenewable energy certificates)”. These

Tokyo Stock Exchange, will be required toresults imply that utilisation of renewabledisclose information on par to that requiredenergy is becoming increasingly importantby the TCFD. Going forward, this increased

both domestically and internationally as ainformation disclosure will make it importantmeasure for reducing emissions that can be

not only to identify GHG emissions throughout

implemented immediately.

the supply chain, but also to work toward
reducing these emissions. The Scope 1 and

The next most often implemented activities

Scope 2 emissions of the small and medium-

were “education and training of management,

sized enterprises that serve as businessemployees, and other stakeholders” andpartners become Scope 3 emissions for“participation in initiatives in Japan andlarge corporations. Thus, support is urgently

overseas”, each selected by 49.8% of member

needed to identify their emissions by scopecompanies and organisations. Educationand to establish systems.

and training, particularly for management,
employees, and other stakeholders, are

In relation to the TCFD’s disclosure

important from a medium- to long-term

recommendations on climate change risk

perspective for expanding business inmanagement and strategies, when asked

decarbonisation. Amongst these, there areabout the status of identifying risks andgrowing expectations overseas for climate

opportunities and integrating these intochange initiatives by boards of directors andstrategies and plans, 20.2% of all respondents

management. The “Investment Stewardship”

selected the “we have identified risks andasset management principles released inopportunities, but have not integrated these2021 by BlackRock, one of the world’s largest

45

5

3.

5

3.

Climate Change

Q40 Which of the following activities does your company/organisation prioritise to achieve net zero?
(Select all that apply)【By Industry】
1. F
 ood,
logistics, local
government, etc.

2. C hemicals andpharmaceuticals

3. Manufacturing,transport,
electricity, gas, etc.

4. M
 achinery andequipment

5. S
 ervice,
non-profit, etc.

6. Information,
finance,real estate, etc.

223

37

34

38

49

33

32

Promotion of energy savings (energysaving behaviour, installation ofequipment, review of working practices,
reduction of office floor space, etc.)

97.3

97.3

100.0

97.4

98.0

93.9

96.9

Increased procurement of electricity fromrenewable energy sources (excluding
renewable energy certificates)

66.4

83.8

67.6

55.3

91.8

21.2

65.6

Renewable energy certificates

40.8

51.4

41.2

39.5

51.0

6.1

50.0

Effective use of heat

39.5

45.9

61.8

44.7

49.0

12.1

15.6

Introduction of electric vehicles or
charging infrastructure

33.2

35.1

32.4

36.8

42.9

15.2

31.3

Corporate PPAs (Power Purchase Agreements)

17.9

21.6

11.8

26.3

24.5

3.0

15.6

Promotion of the use of hydrogen

22.0

24.3

20.6

50.0

20.4

0.0

12.5

Purchase of offset credits (excluding
renewable energy certificates)

18.4

27.0

14.7

28.9

18.4

6.1

12.5

Introduction of internal carbon pricing

28.3

37.8

41.2

39.5

32.7

0.0

12.5

Introduction of carbon dioxide capture,utilisation, and storage technologies

16.1

16.2

26.5

44.7

6.1

0.0

3.1

Investment in research and development on
low-carbon and decarbonisation technologies
in our own and other companies

34.5

27.0

44.1

60.5

40.8

0.0

28.1

Review of business models and project portfolios

30.5

27.0

41.2

44.7

34.7

3.0

28.1

Education and training of management,
employees, and other stakeholders

49.8

62.2

44.1

60.5

49.0

15.2

65.6

Lobbying related companies andorganisations (e.g. value chains)

24.7

24.3

26.5

31.6

28.6

0.0

34.4

Participation in initiatives in Japan and overseas

49.8

48.6

41.2

68.4

53.1

15.2

68.8

Transformation of people’s lifestyles

13.9

18.9

8.8

18.4

8.2

6.1

25.0

Policy recommendations to the government

10.8

10.8

8.8

15.8

10.2

6.1

12.5

Other

5.4

5.4

2.9

2.6

4.1

6.1

12.5

None of these statements apply

1.3

2.7

0.0

0.0

0.0

6.1

0.0

Overall

Overall(Overall: Number of companies/organisations; Other: %)46

Climate Change

asset managers, assert that boards andby governments both in Japan and overseas

management must have expert knowledge

such as emissions trading schemes andon climate suited to the company’s businesscarbon taxes, companies and organisations

model in order for climate change risks

are promoting internal behavioural change toand opportunities to be fully factored into

promote their own emissions reductions.

strategies and operations. The responsibilities
of boards of directors are likely to become

Challenges in achieving net zero andincreasingly important going forward.

necessary support (Q41, Q42)
What types of challenges are faced in

One interesting result was that 28.3% ofachieving net zero? The table below shows

member companies/organisations are

the responses of GCNJ member companies

prioritising   the “introduction of internaland organisations. Out of all respondents,

carbon pricing”, compared to 18.4% engaged

61.4% stated that it would be “too costly”,

in “purchase of offset credits”. Internal carbon

50.7% reported a “lack of technicalpricing is a mechanism for companies andprospects”, while 30% mentioned “difficulty inother organisations to put a price on theirachieving due to the nature of our business”.

CO2 emissions for internal use, such as for

These results clearly show that concerns overinvestment decisions. A survey by CDP of overcost and technical aspects are challenges to

5,900 companies in 2021, revealed that 2,012

promoting decarbonisation.

companies worldwide had introduced internalcarbon pricing or planned to introduce

So what type of support would help to

it within two years. To prepare for thedispel such concerns and accelerate efforts

upcoming tightening of controls on emissions

to achieve net zero? The following table

Q41 What barriers do your company/organisation face in achieving net zero (with or without set targets)?
(Select all that apply)【By Industry】
1. F
 ood,
logistics, local
government, etc.

2. C hemicals andpharmaceuticals

3. Manufacturing,transport,
electricity, gas, etc.

4. M
 achinery andequipment

5. S
 ervice,
non-profit, etc.

6. Information,
finance,real estate, etc.

223

37

34

38

49

33

32

Lack of understanding by top management

1.3

0.0

2.9

2.6

0.0

3.0

0.0

Difficulty in achieving net zero due tothe nature of our business

30.0

21.6

41.2

31.6

18.4

45.5

28.1

Too costly

61.4

73.0

76.5

76.3

69.4

27.3

37.5

Lack of technical prospects

50.7

62.2

79.4

71.1

44.9

6.1

37.5

Unsure how to acquire renewable energy

4.9

8.1

2.9

2.6

2.0

6.1

9.4

Other

18.8

13.5

11.8

13.2

20.4

18.2

37.5

No barriers

8.5

8.1

0.0

2.6

12.2

21.2

6.3

Overall

Overall(Overall: Number of companies/organisations; Other: %)

47

5

3.

5

3.

Climate Change

indicates the external environment neededclimate change action”, and 59.2% needing

to achieve net zero, based on the responses“intangible support for companies andof member companies/organisations. Of allorganisations that want to engage in climate

respondents, 77.1% said that a review of thechange action (e.g. energy efficiency audits,energy mix (e.g. increased share of renewablesupport for setting SBTi targets and TCFD

energy) is necessary, followed by 63.2%

scenarios)”.

calling for “tangible support for companies
and organisations that want to engage in

The Sixth Strategic Energy Plan, approved

Q42 What external environmental improvements do you think are needed to help your company/
organisation achieve net zero? (Select all that apply)【By Industry】
1. F
 ood,
logistics, local
government, etc.

2. C hemicals andpharmaceuticals

3. Manufacturing,transport,
electricity, gas, etc.

4. M
 achinery andequipment

5. S
 ervice,
non-profit, etc.

6. Information,
finance,real estate, etc.

223

37

34

38

49

33

32

Strengthening of NDCs (≒emission
reduction targets)

35.4

37.8

41.2

31.6

32.7

27.3

43.8

Review of energy mix (increase share of
renewable energy, etc.)

77.1

83.8

91.2

73.7

83.7

42.4

84.4

Intangible support for companies andorganisations that want to engage inclimate change action (e.g. energy
efficiency audits, support for setting
SBTi targets and TCFD scenarios)

59.2

64.9

58.8

71.1

65.3

30.3

59.4

Tangible support for companies andorganisations that want to engage inclimate change action

63.2

67.6

61.8

78.9

63.3

42.4

62.5

Promotion of carbon recycling

39.5

48.6

47.1

55.3

30.6

15.2

40.6

Deployment of low-carbon technologies
and products overseas throughparticipation in the Joint Crediting
Mechanism and other systems

18.4

16.2

14.7

26.3

22.4

6.1

21.9

Promotion of corporate PPAs (Power
Purchase Agreements) and review ofvirtual PPA systems

33.2

40.5

14.7

28.9

42.9

3.0

65.6

Introduction and promotion of carbon pricing

34.5

37.8

35.3

44.7

32.7

12.1

43.8

Support for electrifying vehicles

32.3

43.2

20.6

28.9

34.7

12.1

53.1

Other

11.2

8.1

11.8

15.8

12.2

9.1

9.4

None of these statements apply

3.6

2.7

0.0

0.0

2.0

18.2

0.0

Overall

Overall(Overall: Number of companies/organisations; Other: %)48

Climate Change

by Cabinet Decision in October 2021,

must now move to take action to fulfill these

indicates that renewable energy will accountpledges. From this starting point, the key willfor 36-38% of the energy mix in 2030, andbe how fast and in what strategic and feasiblethat “maximum introduction of renewable

ways these reduction targets can be achievedenergy as major power sources on the top

going forward.

priority” will be addressed. In early January2022, Prime Minister Kishida ordered theThis survey showed that GCNJ member

development of a next-generation power gridcompanies and organisations are deliberating

for the diffusion of renewable energy. Thison ways to tackle climate change inwill provide backing for the efforts of member

accordance with international frameworks,companies and organisations working toand are playing their part in decarbonisation

expand the procurement of renewableby implementing pragmatic and steadyenergy power in their aim to achieve net

initiatives. To build further on this foundation,

zero. Furthermore, international initiatives andmember companies and organisations needtrends such as SBTi and TCFD are expected

to work together to address challenges andto become the global standard in the future.

needs. Furthermore, active recommendations

Companies will need support, such as thatto government and proactive participation

provided by the Ministry of the Environment

in policy debate will be important goingfor setting medium- and long-term reduction

forward.

targets, or guidebooks that can be utilised toprovide easy-to-understand explanations ofReference materials

domestic and international trends.

Information on SBT and other international

Messages for the future

initiatives
https://www.env.go.jp/earth/ondanka/

The 26th session of the Conference of the

supply_chain/gvc/intr_trends.html

Parties to the United Nations Framework
Convention on Climate Change (COP 26),

Information on supply chain emissions

held in Glasgow, UK, in November 2021,

https://www.env.go.jp/earth/ondanka/

designated the decade leading up to 2030

supply_chain/gvc/supply_chain.html

as the “decisive decade” for promoting
climate action. The international community

Recommendations for management strategy

is now standing at the starting line forformulation using TCFD.

decarbonisation. The countries and non-statehttps://www.env.go.jp/policy/policy/tcfd/

actors that have announced net-zero targets

TCFDguide_ver3_0_J_2.pdf

49

5

3.

6

3.

Preventing Corruption
Significantly reducing corruption
and bribery in all its forms

Shinya Fujino

Assistant Professor
Faculty of Global Studies, Reitaku University
Steering Committee Member, Anti-Bribery Committee Japan rogress made on anti-corruption compliance by respondent companies is evidentP
in the fact that measures have gone beyond the paperwork, such as clarification ofpolicies and formulation of internal regulations, to extend to organisational measures
such as whistle-blowing systems and disciplinary procedures for offenders.
 fforts to conduct interviews with domestic and overseas group employees and toEconduct due diligence and training for suppliers and third parties have been slow.
 uture challenges include risk assessment of third parties and strengtheningFof management systems. As most bribery overseas goes through third parties,
companies are advised to carry out risk assessments in the adoption andcontinuation of relationships with third parties, and to strengthen supervision at
the head office.

working, resulting in regulations on the issues

Significant and rationaleof human rights, labour, and environment
not functioning adequately. Behind thisCompanies have a responsibility to prevent

lies the structural problem that bribery

corruption towards achieving SDG 16.

and other forms of corruption are deeply

Furthermore, Principle 10 of the UNGC 10

entrenched in the day-to-day operations ofPrinciples states that, “businesses should work

the administration and judiciary, distorting fairagainst corruption in all its forms, including

decisions and undermining the state’s ability

extortion and bribery”. In Japanese society as

to clean up corruption. In particular, it is not

well, the problem of corruption, from briberyrare for companies from developed countries

and bid-rigging to money laundering andto be frequently involved in corrupt practices

embezzlement, remains deep-rooted, and wein their overseas operations. Faced with thisneed to continue efforts on the part of society

situation, the international community is

as a whole to make improvements.

formulating and implementing comprehensive
rules on anti-corruption to clarify andMoreover, corruption in international trade

more strictly define the responsibilities ofis becoming an ever more serious issue. In

companies from developed countries.

some emerging and developing countries,
governance mechanisms based on law are not

Failure to obey rules introduced by the50

Preventing Corruption

international community can result in

By following the above four steps, companies

companies being subject to huge fines fromare expected not only to objectively evaluate

judicial authorities, suspension from bidding foranti-corruption efforts, but also to share

public works projects, termination of businessthese results and engage in dialogue withtransactions with suppliers and financial

stakeholders, thereby making continuous

institutions, and compensation for damages. In

improvements and enhancing stakeholder

particular, over the past decade or so, sanctionscommitment. From this same perspective,

against corrupt activities in other countries havethe results of this survey should be sharedbecome more severe, with countries stepping

not only with a limited number of internal

up investigations and detection, thereby making

members of companies, but with a widerisks to management considerably greater.

range of stakeholders to serve as a basis for

Accordingly, anti-corruption is considered an

dialogue.

important evaluation item for both ‘G’ and‘S’ issues in ESG investment, and investors

Question content and options

may take measures such as employing voting

1. Q u e s t i o n c o n t e n t g a v e o p t i o n s o frights, divestment, or shareholder lawsuits

initiatives needed to be carried out by

against companies with problems. Hence,companies. These were commitment bycompanies need to work against corruption

top management (Q44), identification

at the organisational level in order to protect

and assessment of corruption risks

themselves.

(Q45), establishment of internal rules
and regulations (Q46), systems of

Therefore, in order facilitate measures at theimplementation (Q47), and information

organisational level by companies on anti-

disclosure (Q48). In addition, as data

corruption, GCNJ, in cooperation with thefalsification is an important issue in Japan,

Anti-Bribery Committee Japan, establishedan item on cover-ups of fraud (Q49), wasthe “Tokyo Principles” as a collective action

added.

on anti-corruption in 2017, and continues

2. Responses to questions were classified into

to promote these principles. The Tokyo

three levels.

Principles divide companies’ efforts into four
steps and recommend measures using a risk-

Results and discussion

based approach.
STEP 1: Identification of the company’s

An important prerequisite for an organisation’s

inherent risk class
STEP 2: Determination of the achievement

anti-corruption efforts is commitment fromstatus of compliance items

the top, i.e. clarification of policy. More than

STEP 3: Overall assessment of the status of

90% of companies have clarified policies onbribery risk management

prevention of bribery, and over 60% have

STEP 4: Corporate disclosure and dialogues

done so for policy on collusion. By industry,
clarification of policy has progressed in thewith stakeholders

Foundational

Measures that serve as foundations for taking action

GrowthMeasures that enhance the effectiveness of actions

Contribution

Measures that contribute to collaboratively building a corruption-free society

51

6

3.

6

3.

Preventing Corruption

chemical/pharmaceutical, manufacturing/lagging behind. However, some companies

transport/electricity/gas/etc., and machinery/

have put in place the necessary structures toequipment sectors. Many of the companies

carry out assessments, as shown in the open-that selected the “we have not clarified

ended responses below.

internal policies” response were companies
operating mainly domestically or small and− C ompliance monitoring is conducted for

medium-sized enterprises, implying that

foreign subsidiaries

companies generally considered to be high-− D ue diligence is conducted based onrisk have by and large made progress in thiscomprehensive assessment of countries ofarea.

operation and business content− C h e c k i n g f o r a c c u r a c y i n o p e r a t i o n

The first step in policy-based measures at theusing pre-application workflow data fororganisational level is “risk assessment”. Risk

hospitality gifts

assessment is first conducted as a simplified
procedure whereby risks are classified as

When examined by scale of company,

high, medium, or low. If a risk is assessed

results showed that the larger the size of theas relatively high, more detailed procedures

company, the more advanced the initiatives.

are then initiated. Survey results show that

A lack of resources is considered to be one

risk assessment (Q45) scored lower thanfactor for the delay in action. In light of thesecommitment from top management (Q44),

results, it is necessary for companies toindicating issues in terms of tangible measuresseek realistic solutions, such as sharing risk

at the organisational level. In particular, due

information through collective action.

diligence for suppliers and third parties is

Q44 Has your company/organisation clarified internal policies to prevent corruption (e.g. bribery andcollusion), such as with commitments expressed by top management? (Select all that apply)
We have not clarified internal policies to prevent corruption.

7.0

Foundational

We have clarified internal policies to prevent bribery.

91.0

Foundational

We have clarified internal policies to prevent collusive bidding.

61.0
Responses (%)

Q45 What methods does your company/organisation use to assess corruption risk? (Select all that apply)
We do not assess corruption risk.

17.5

Foundational

We conduct desk-based research.

36.3

Foundational

We conduct surveys for group employees in Japan and overseas.

35.4

GrowthWe conduct interviews with group employees in Japan and overseas.

24.7

GrowthWe conduct inspections (audits with onsite inspections) at relevant sites inJapan and overseas.

37.7

Contribution

We conduct due diligence on suppliers (e.g. partners, distributors, consultants
that provide business support, etc.), and third parties.

19.7

Other

7.2
Responses (%)

52

Preventing Corruption

In order to establish effective systems

structures to improve the effectiveness ofto prevent corruption, putting effective

internal regulations, such as setting up internalinternal rules and regulations in place based

reporting (whistle-blower) systems, providing

on the results of the risk assessment is

education and training for group employees,

essential. Responses to Q46 show that basic

and establishing disciplinary procedures forregulations are in place, with approximately

violators. On the other hand, some delay is

68% of respondents having regulations onevident when it comes to strengthening risk-

anti-bribery, and 45% having regulations in

based initiatives, such as having multilingual

place to prevent collusion. Some companies

whistle-blower systems and establishingalso focus on risk-based initiatives, as seen indifferent settlement and approval authorities

the following free responses: “in addition toaccording to risk level.

globally-shared regulations, we have detailed
rules in place for each country or region”

Open-ended responses were received fromand “our basic policy includes regional andcompanies that “obtain written pledges notcountry-specific responses, procedures, andto engage in bribery when appointing service

criteria for the amount of money used onproviders” and “ask suppliers and third parties

gifts”.

for their understanding of our group’s antibribery guidelines”, as well as companies that

Nevertheless, only about 20% of companies“specifically refer to and disclose corruption

selected the “we have country- or region-

prevention in our sustainable procurement

specific regulations in place” option. If

policy and procurement standards andinternal rules are set and operated in a

ask suppliers for their understanding anduniform manner without being aligned to thecooperation”. Likewise, some companies

actual situations in countries of operation,“monitor operation of detailed regulations

formalism may set in, thereby undermining

for third-party transactions”, showing thatthe effectiveness of the rules. Accordingly,

there are companies are engaged in thoroughthere is an urgent need to establish rules andsupplier and third-party management.

regulations that correspond to risk levels andlocal realities.

However, overall, only about 30% of

After rules and regulations are put in place,training programmes that target suppliers andan operational system is also required.

third parties, indicating that a major challenge

Responses to Q47 show that progress hasremains in this area.

respondents have regulations or conduct

been made in developing organisational

Q46 What internal regulations does your company/organisation have in place for anti-corruption
procedures? (Select all that apply)
We have no specific regulations in place for anti-corruption procedures.

15.2

Foundational

We have regulations in place to prevent bribery.

68.2

Foundational

We have regulations in place to prevent collusion.

44.8

We have country- or region-specific regulations in place.

20.2

Other

12.6

GrowthResponses (%)

53

6

3.

6

3.

Preventing Corruption

Q47 What measures is your company/organisation taking to improve the effectiveness of internal
regulations? (Select all that apply)
We are not taking any specific measures to improve the effectiveness ofregulations.

1.1

Foundational

We set up different decision/approval authorities according to the risk level.

57.1

Foundational

We conduct anti-corruption education and training for group employees inJapan and overseas.

74.1

Foundational

We have established disciplinary procedures for violators.

78.3

GrowthWe have regulations for suppliers and third parties in place (e.g. codes ofconduct for suppliers), and provide education and training.

29.1

GrowthWe conduct regular audits on the effectiveness of regulations.

51.9

We have an internal reporting system (whistle-blower system) in place.

94.2

We make improvements to our internal reporting system (whistle-blower
system) (e.g. multilingual support services, awareness raising, review ofoperations).

61.4

Other

3.2

Foundational
GrowthResponses (%)

Disclosure of anti-corruption information is

example, by disclosing the status of e-learning

lagging behind overall. While companies with

programmes that serve as employee training

large sales volumes have made progress on

on bribery prevention (number of participants

information disclosure, approximately 60% of

and uptake rate) in integrated reports.

companies with mainly domestic operations,and 65% of companies with sales under 100

To prevent corruption, proper bookkeeping

billion JPY have not disclosed information on

and record-keeping and strong management

prevention of corruption. These companies

systems are essential. More than 70% of

could improve their reputation among

companies and organisations classified in thestakeholders by promoting basic information

food, logistics, local government, etc. industry

disclosure, including the following measuresan d in ch e mical s an d p h ar mace u t icals

mentioned in open-ended responses:

industry selected the “we conduct inspections“disclosing initiatives in integrated reports”,(audits with onsite inspections) at relevant“listing bribery risks in integrated reports

sites in Japan and overseas” response.

with other business risks”, and “disclosing

Meanwhile roughly 65% of those in thebasic policies and initiatives on prevention ofmachinery and equipment industry responded

bribery on websites”.

positively to the “we have clear policies on
preventing accounting irregularities” option.

As a matter of course, engaging in dialogue

On the other hand, companies with mainlywith stakeholders based on accurate

domestic operations and those with smaller

information and using feedback obtained tosales volume tend to lag behind.

make further improvements is an essential
aspect of information disclosure. To thisWhen fraud is concealed, check systems areend, companies should be encouraged

rendered inoperable, making risks difficult

to disclose quantitative information, forto detect. Therefore, as stated in open-

54

Preventing Corruption

Q48 What measures is your company/organisation taking to gain the understanding of stakeholders on
anti-corruption efforts? (Select all that apply)
We are not taking any measures to gain stakeholder understanding.

30.9

GrowthWe disclose information on the status of anti-corruption measures based on
quantitative (numerical) data.

24.7

Foundational

We disclose information on the status of anti-corruption measures based on
qualitative (descriptive) data.

42.6

Contribution

We create opportunities for dialogue with stakeholders on preventing corruption.

14.3

Contribution

We have signed and take part in the Tokyo Principles (collective action on anti-corruption).

1.8

Other

11.7
Responses (%)

Q49 What measures does your company/organisation have in place to prevent cover-ups of fraud around
corrupt practices (e.g. falsifying data, accounting irregularities)? (Select all that apply)
We have no particular measures in place.

9.9Foundational

We have clear policies on preventing data falsification.

43.5

GrowthWe are increasing security to prevent data falsification.

54.3

We have clear policies on preventing accounting irregularities.

53.4

GrowthWe thoroughly ensure that payments are recorded, including small facilitation payments.

43.0

GrowthWe conduct inspections at relevant sites in Japan and overseas (audits withonsite inspections).

57.4

Other

7.2

Foundational

Responses (%)

ended responses, key measures include

and reflect results onto their management,“leaving records (documented evidence) of

leading to further improvements. On the

all payments processed” and “introducing

other hand, challenges remain in conducting

internal reporting system and accounting

risk assessments and implementing risk-based

hotlines”, as well as “conducting awareness-

responses to assessment results.

raising on the use of the internal reporting
systems” and “accounting compliance

Messages for the future

trainings” in order to promote their use.

As corruption is less prevalent in Japan
Overall evaluationcompared to other Asian countries, it is easy

Many companies have made progressfor companies to fall into “institutional void”

in formulating rules and regulations, andwhen dealing with overseas counterparts.

efforts to establish training programmes andWhen doing business in countries withprocedural systems for disciplining offenders

different institutional practices, setting andare highly commendable. When information

operating uniform rules and regulations

on the progress of such initiatives is actively

runs the risk of these rules and regulations

disclosed, companies and organisations

being rendered inoperative. In other words,

receive befitting evaluations from stakeholders

attempting to do business according to

55

6

3.

6

3.

Preventing Corruption

local business practices may often violate

are considerable costs associated with riskhead office rules. This can prevent accurate

assessment. Costs are expected be reduced

information on local operations from being

by extending the framework of collective

communicated to the head office, leading toaction and jointly formulating rules andthe concealment of fraudulent activities.

regulations and sharing information on third
parties.

In the backdrop of fraud cover-ups, there isoften excessive speculation by employees

However, the sharing of information between

regarding the ideas of companies and theircompanies can in itself increase the risk ofsuperiors. This may be rooted in a double

collusion and requires fair management by astandard between “societal norms” andthird-party organisation. Further leadership“internal company practices”. It is therefore

from the GNCJ is expected in this respect.

essential for management to foster an
exceptional culture of compliance by clearly

Reference materials

expressing commitment and conducting

Tokyo Principles for Strengthening Anti-

effective training.

Corruption Practices
As a next step, having an established risk-

https://www.ungcjn.org/objective/

based approach, including third-party due

anticorruption/index.html

diligence, is important. Of course, there

Case study spotlight
In 2008, Germany-based Siemens AG entered into a plea bargain with the US judicial
authorities and undertook a major reform of its compliance system. The company firstannounced its “Tone from the Top”, a company-wide policy outlining management’s intention
to shut down corruption, and established anti-corruption principles with its “Business Conduct
Guidelines (BCG)”. Furthermore, based on the BCG, the company established individual
principles for dealing with corruption on the ground and created a risk management system
based on these principles to prevent corruption before it happens. Particularly notable isthe company’s rigorous risk-based compliance system that was established by adopting
an IT-based risk assessment and due diligence system related to donations and contracts
with business partners and suppliers. When breaches of the principles are detected, theprevention system is partially or structurally improved, and cases of misconduct are recorded
in a database to facilitate continuous review of the system.

56

7

3.

Status of Actions onMateriality

Accelerating efforts on SDGs other thanSDGs 5, 8, 12, 13, and 16

 bout 60% of member companies and organisations are working on goals
Aother than the five SDGs discussed earlier. They have positioned these goals as
materiality and set specific numerical targets. Examples of initiatives included
many for SDG 3 (good health and well-being), SDG 7 (affordable and clean
energy), SDG 9 (industry, innovation and infrastructure) and SDG 11 (sustainable
cities and communities).
In response to the question on why chosen SDGs are positioned as materiality,
responses revealed that the stories of companies and organisations are key.
Several members mentioned SDGs that were linked to their philosophy andpurpose, or were closely related to their business risks and opportunities.
They reported that engaging with these SDGs enabled them to improve thesustainability of their company/organisation or to fulfil their social responsibility.

Aim of questionnaire content

Results and discussion

For this survey, we focused mainly on the five

We asked respondents if they had positioned

SDGs emphasised by the UN Global Compact

any of the SDGs they selected as a priority infor which initiatives were anticipated,

Q14 as materiality and engaged in initiatives

particularly in Japan. We asked experts inwith specific numerical targets for thethese areas to examine and discuss the

purpose of contributing to the achievement

collected results. Yet, the survey also askedof the SDGs, specifically referring to themembers about how they were tackling the

12 SDGs other than the five described inother 12 SDGs (1, 2, 3, 4, 6, 7, 9, 10, 11, 14,previous sections. Positive responses were15, and 17) through their business activities

received from 60% of members.

and the progress they were making. Some
examples of responses that could prove
useful for others are presented below.

Overall

223

100.0

Yes

134

60.1

No

89

39.3

(Left row: number of companies/
organisations; right row: %)

57

7

3.

Status of Actions on Materiality

For Q15, respondents that answered “Yes” in(Up to 2 SDGs are selected per member company/organisation)

Q14, and those who selected “we develop

Goal selected

products and/or services that contribute to
the SDGs”, and “we launch new projects to

Number of companies/
organisations

SDG 1

1

SDG 2

3

following five points. A total of 335 responses

SDG 3

35

were received.

SDG 4

14

SDG 5

11

SDG 6

7

SDG 7

37

SDG 8

14

SDG 9

25

SDG 103

SDG 11

21

SDG 1220

SDG 4, SDG 7, SDG 9, SDG 11 and SDG 10,

SDG 1361

aside from the five goals discussed in earlier

SDG 14

6

SDG 1510

were received in which multiple SDGs were

SDG 161

selected.

SDG 17

9All SDGs

3

on SDG 13 (climate change response), and 20

Multiple SDGs

53

companies reported combining their climate

Total

335

contribute to the SDGs” in Q9, were asked
about the details of their initiatives on the(1) SDG identified as materiality(2) W h y t h e S D G w a s p o s i t i o n e d a smateriality(3) Overview of actions(4) Medium- and long-term target values andstate of progress, target year of goals(5) Progress as of 2020
Responses to (1) above regarding priority
SDGs were relatively numerous for SDG 3,

sections. Moreover, since responses were notlimited to a single goal, over 50 responses

Overall, the largest number of initiatives were

response with SDG 7 (renewable energy).
We can surmise that many companies place

SDGs, companies and organisations area high importance on renewable energy asworking to improve their sustainability anda mitigation measure for SDG 13, due tofulfil their social responsibility. In some cases,

growing societal demand for decarbonisation

a combination of the two was mentioned.

efforts and as a response to ESG rating
agencies such as CDP.

In order for companies to continuously work
towards achieving specific SDGs and to gain

Responses to the second point (2) on why

the understanding and empathy of internalgoals are positioned as materiality showed

and external stakeholders, it is importantthat many respondents were motivated byfor them to create and communicate their

the fact that an SDG was linked to theirstory. This story should tell why they chose

corporate philosophy, purpose or vision, ora certain SDG, bringing together the issues

that it was closely related to business risks(social issues) related to that SDG and theand opportunities. By engaging with thesesustainability of their business.

58

Status of Actions on Materiality

Responses on the remaining three points ((3)

understanding of stakeholders, and accelerate

overview of initiatives; (4) medium- and long-the promotion of initiatives. Examination ofterm target values and state of progress,

the list of overviews and targets of initiatives

target year of goals; and (5) progress in 2020)

and their progress showed the following

showed that many members have disclosed

requirements to be essential for promoting

information on the content of initiatives

understanding.

and their progress in both quantitative andqualitative terms. However, when it comes to● A company or organisation’s philosophy

medium- and long-term targets, many targets

and purpose, as well as the sustainability

were set for either a single year or 2-3 years,of the business itself, and the social

perhaps due to the pandemic and changes

issues that must be addressed throughin the business environment that make it

its business, should be indicated when

difficult to adopt a long-term outlook. Only

discussing why a certain SDG was chosen.

65 respondents reported having set targets● A company or organisation’s vision andaimed at 2030 (or beyond), the target year

targets should be set for 2030, the target

for the achievement of the SDGs.

year for achieving the SDGs, or later.
● Companies and organisations should have

In this manner, activities were confirmed on

short-term action plans backcasted fromthe other 12 SDGs (1, 2, 3, 4, 6, 7, 9, 10, 11,

the achievement of the above-mentioned

14, 15, 17), excluding the five SDGs discussed

vision and long-term targets, and should

in previous sections. Clarifying ways inset specific quantitative (and qualitative)

which SDGs are positioned as materiality istargets and disclose their progress on

expected to increase internal penetration,these.

help companies and organisations gain theCase study spotlight
In order to achieve the SDGs, it is important to clearly describe a vision in parallel to setting
short-term targets as milestones towards that realising that vision.
Along these lines, two case studies on companies are presented below for reference.
● Yamaha Motor Co., Ltd.: SDG 3 (Education to reduce traffic accidents)
Yamaha Motor Co., Ltd. has indicated its vision for 2030, the target year for achieving theSDGs, and has set specific targets.
The company has disclosed a list of its goals for 2030 and medium-term targets for 2019-2021,
as well as progress in 2020 and SDG themes for each of the four categories it has positioned
as “Addressing Materiality (Material Social Issues)”: “Environment & Resources”, “Transportation,
Education & Industry”, “Innovation”, and “Human Capital Management”. The progress in materiality
KPIs (medium-term targets) disclosed in this list form a part of the evaluation that determines the
remuneration of the executives in charge of the respective themes.
The following are some of the materialities of the company’s core business, “Transportation,
Education & Industry”.

59

7

3.

7

3.

Status of Actions on Materiality

https://global.yamaha-motor.com/about/csr/materiality-kpi/● FUJI OIL HOLDINGS INC.: “Sustainable procurement of palm oil” SDG 15 (SDGs 8, 12, 13)
FUJI OIL HOLDINGS INC. has identified 10 priority areas as ESG materialities and discloses
a list. In the priority area of “Sustainable procurement”, the procurement of palm oil aims toachieve “No Deforestation, No Peatland Development, No Exploitation (NDPE)” throughout
the supply chain, and to achieve traceability to palm oil plantations in the supply chain overthe medium- and long-term.
The company’s policy on responsible palm oil procurement is disclosed externally, withmedium- and long-term targets for 2025 and 2030 set as KPIs. Information on yearly goals,
performance, and self-assessments are also disclosed.

https://www.fujioilholdings.com/en/sustainability/materiality/

60

Status of Actions on Materiality

ColumnThe term “materiality” has been popularised mainly by non-financial information disclosure
frameworks and standards such as the GRI, IIRC and SASB (IIRC and SASB merged in June
2021, and are now the Value Reporting Foundation (VRF)). Requirements for disclosure
to investors and NGOs have led companies to rapidly incorporate materiality into theirsustainability strategies over the past decade, and to disclose information in integrated
reports using matrices and other methods. Since the formulation of the SDGs in 2015, many
companies have linked materiality to corresponding SDGs. Some approaches to materiality,
which have been outlined both in Japan and overseas, are introduced below.
In April 2021, the European Commission released a proposal for the Corporate Sustainability
Reporting Directive (CSRD), which would amend existing requirements on non-financial
reporting. These revisions aim to improve the usefulness, comparability, and reliability of nonfinancial information reporting.
Materiality is also mentioned. Materiality is recognised as having two types: financial
materiality, which encompasses the sustainability-related risks (including climate-related risks)that affect the performance of companies, traditionally viewed as important by investors;
and environmental and social materiality, which encompasses the impacts of a company’sbusiness activities on society and the environment. The investor-oriented view that materiality
should be limited to impacts on a company’s finances is referred to as single materiality.
However, the CSRD proposal focuses on both financial materiality and environmental andsocial materiality, which is referred to as double materiality.
Moreover, the idea of “dynamic materiality”, i.e. that materiality is dynamic and changes withthe times, is also presented in a joint statement by five disclosure guidelines. Rather thanreferring to the scope of materiality as either “single” or “double”, this statement presents
the idea that social and environmental changes can make topics that were not previously
considered become important or financially significant, and that the level of importance varies
according to the financial and social/environmental impacts at any given time, as exhibited by
the pandemic becoming a global priority issue year before last.
As the importance of disclosing and reporting non-financial information continues to increase,so will the need to continue to monitor changes in the way materiality is viewed.

Single materiality
Companies

Social andenvironmental
impacts on companies

Environment/Society

Companiesʼ impacts onsociety and environment
Double materiality(Source) Created by METI based on European Commission, “Guidelines on reporting climate-related
information”, June 2019…
(“Towards a virtuous circle of sustainability-related information disclosure and corporate
value creation - Interim report of the Study Group on Disclosure Policies for Non-financial
Information”, November 2021, METI Study Group on Disclosure Policies for Non-financial
Information)

61

7

3.

4

Conclusion

Thus far, we have reported on domestic andnot integrated climate change risks andinternational trends related to the SDGs andopportunities into their strategies andthe results of our survey on the status ofplans. There are many more companies

initiatives among GCNJ member companies

and organisations that have not engaged

and organisations, focusing on five SDGs.

in initiatives classified as Level 1 for SDG

In this chapter, we discuss the issues that

5, Respect (Principles) actions for SDG 8,

emerge when survey results are examinedor Foundational measures for SDG 16.

from a cross-cutting perspective. Finally,

For example, 53.4% of companies andwe will once again consider the reasonsorganisations that reported having integrated

why companies and organisations should

the SDGs into their management strategies

engage with the SDGs and demonstrate

have not set targets or put action plans

the importance of aligning organisationalin place to eradicate violence and sexualsustainability with the sustainability of society.

harassment in the workplace. Likewise, 37%
have not offered training opportunities that
address business and human rights to all

Cross-cutting observations on
survey results

employees, and 28.7% do not have internal
regulations in place to prevent bribery.

Actions to achieve the SDGs are still notenoughIt is easy to claim to be contributing to the

Significant progress has been seen since last

SDGs regardless of how or what actions areyear in terms of awareness of the SDGs andbeing taken, and a lack of understanding on

actions that contribute to achieving them.

the actions required to achieve the SDGs has

However, a look at the efforts made for eachbeen a problem. Moreover, to date only theindividual goal reveals that actions to achieve

fact that actions are being taken is disclosed,

the SDGs remain insufficient.

making it difficult for the outside world torecognise what has yet to be done.

Specifically, although more than 80% of
c o m p an i e s a nd or g a nisa tions sele ct e dEngaging with the SDGs based on an“integrate the SDGs into management

understanding of what needs to be done

strategies” as an action contributing

above and beyond existing policies, laws,

to the SDGs, 8.3% of these companies

and regulations

and organisations, for instance, do not

A look at initiatives implemented for the fiveposition the promotion of gender equality

SDGs of focus make it clear that companies

as a management issue and 25.4% haveand organisations have been strongly

62Conclusion

influenced by government policies, laws,business partners and respect for the humanand regulations to date. For example, laws

rights of local communities and consumers;

and regulations such as the Act on thelifestyle and consumer education for

Promotion of Female Participation and Careersustainable management of natural resources;

Advancement were the basis for actions on

identification and reduction of Scope 3 GHG

SDG 5, aimed at gender equality. Likewise,emissions; and regulations on bribery andpolicy on the 3Rs formed the basis for actions

training for suppliers and third parties.

on SDG 12, for which the establishmentof circulation loops and circular business

Whether addressing gender equality, decent

models is key. For SDG 16, a lag in thework and human rights, the environment, or

disclosure of information on prevention ofanti-corruption, the key going forward forcorruption was pointed out. The fact thatcompanies operating globally, in particular,

information disclosure is not required under

will be to listen to stakeholders in the

the Unfair Competition Prevention Act andvalue chain/supply chain, gather data, and

the Guidelines for the Prevention of Bribery ofstrengthen strategies and approaches, while

Foreign Public Officials is considered to be an

putting in place the necessary structures

influencing factor.

to do so. Moreover, when companies andAlthough the scope of domestic laws,of stakeholders in relation to their businessregulations, and policies must be domesticallypartners, the requirements placed on

focused to a certain extent, it is essential forthem with regard to human rights and theorganisations find themselves in the position

companies and organisations to understandenvironment are likely to be heightened evenwhat they should do above and beyond

more.

existing policies, laws, and regulations as
they engage with the SDGs. In this regard,

Many may think they should tackle humanthe questions and options in this fact-finding

rights and environmental issues because

survey can serve as a reference. Effortsbusiness activities that neglect stakeholders

lacking in substance may be deemed SDG-

in the value chain/supply chain have

washing, so caution is required, especiallyrepercussions for management risks. At thein information disclosure. Moreover, there issame time, in order to achieve the SDGs, it isan urgent need for government to establish

important for companies and organisations

policies and laws that are compatible with theto promote business and activities that givestandards and scope of the SDGs. It   is also

full consideration to human rights and theimportant for companies and organisations toenvironment in all regions, and to operate

be proactive in making recommendations towith the mindset that by building on thesegovernment.

activities we can all work together to create asustainable society.

Consideration of stakeholders in the value
chain/supply chain is key

Need for utilisation of support and

A common issue was observed for all of

collaboration oriented to the environment

the five goals related to initiatives that takeand level of progress of each company/

stakeholders in the value chain/supply

organisation

chain into account. Specifically, these

Survey results revealed that large companies

include: gender-responsive supply chain

with global operations have made progress

management; ensuring the decent work ofoverall in their efforts, while the initiatives

63

4

4

Conclusionof small and medium-sized companies

closely related to opportunities for market

and organisations have generally lagged

development via the products and services

behind. This outcome is not unexpected asoffered by the company or organisation anddifferences were seen in the level of progress

the avoidance of legal and reputational risks.

in terms of awareness of the SDGs and steps

Also, because these contribute to increasedin the SDG Compass.

sales and brand power, talent acquisition,and enhanced employee motivation, theTo achieve the SDGs, companies are

result is an increase in (ii) the enhanced value

expected to set the same level of targetsof the company’s sustainability. In contrast,

and implement initiatives, regardless of their(iv) implies that effective implementation ofsize. The key to promoting such efforts lies

the SDGs will result in securing sustainable

in companies and organisations utilising theirnatural resources and provide relief to therespective strengths and making appropriatepoor, leading to the enhanced stability

use of support from governments and NGOs

and sustainability of society, a prerequisitethat is suited to their environment and level offor corporate activities. Moreover, (v)progress on their initiatives, and in companies

indicates that the SDGs help to strengthen

cooperating and collaborating with eachcooperation among diverse actors, including

other. It is time to once again recognise that

other companies and organisations, which

partnership is proposed in SDG 17, and thatis beneficial to both the sustainability

we are called upon to work in cooperationof organisations and the stability andwith partners to create a sustainable society.

sustainability of society.
Accordingly, when engaging with the SDGs,

It is time to revisit our reasons
for working on the SDGs

should companies and organisations focus
more on organisational sustainability or the

In order to address the above challenges andstability and sustainability of society? This is

move closer to becoming truly sustainable,

the very question now being asked.

companies and organisations need to rethinktheir reasons for engaging with the SDGs.

Looking back at the chapter on “Global andNational Trends on the SDGs”, in the area

The SDG Compass identifies the followingof climate change, the 1.5 degree target

five advantages for companies in addressing

was effectively made the aim at COP26, andthe SDGs: (i) the ability to seek out future

the SBTi has also called upon companies

business opportunities; (ii) enhancement

to commit to the 1.5 degree target. This isof the value of the company in relation to

because it has become clear that limiting(its own) sustainability; (iii) the ability totemperature increase below 1.5 degree will

strengthen (trusting) relationships with diverse

significantly reduce climate change impacts,

stakeholders, including customers, employees,

such as extreme heat waves and heavy

and communities, and to be tuned in to

rainfall, compared to a 2 degree increase. The

legal risks and new policy developments; (iv)

SBTs for Nature are also under development

link to stabilisation of society and markets,in the natural environment field, and the day

which is essential for companies; and (v) thewill soon come when companies are asked toability to have shared goals with stakeholders

set targets to ensure that they do not exceed

and the wider world using the SDGs as aplanetary boundaries related to water, land,common language. Of these, (i) and (iii) are

biodiversity, and oceans. Human rights and64

Conclusion

gender equality are prerequisites for the well-

In conclusion

being of each and every person, and the UN
Guiding Principles on Business and Human
Rights and the Women’s Empowerment

As mentioned at the beginning of this report,

Principles have indicated actions for

the SDGs are approaching the half-way point.

companies to take. The World Benchmarking

We need to shift gears to move closer to

Alliance (WBA), as an organisation that

achieving the SDGs, which have met withevaluates and ranks 2,000 companies

significant setbacks due to the COVID-19

worldwide from a third-party perspective

pandemic. The fact-finding survey on theon whether they are taking action in line

SDGs which forms the core of this report waswith these goal-setting and management

developed by examining what companies andframeworks, has attracted the attention oforganisations should achieve and implement
by 2030 with regard to SDGs 5, 8, 12, 13,investors.

and 16, and converting these into questions
These are trends in clarifying the profile ofand response options. This content aligns

a sustainable company or organisation atwith global trends to determine an ideal

the standard required by the SDGs. We are

vision for companies and organisations based

approaching an era in which it is no longer

on a backcasting perspective. Nevertheless,sufficient to simply claim to be contributing

in terms of the actions required of companies

to the SDGs based on one’s own criteria. In

and organisations to achieve the SDGs, thesuch an era, companies and organisations will

items in this fact-finding survey are on somebe required to have a mindset that asks how

points insufficient. Likewise, it would makethey can use their resources and activities toit easier for companies and organisations togenerate income that ensures the stability

clarify their actions if aims for 2030 in relationand sustainability of society. In other words,

to the other 12 goals were also indicated.

aligning the organisational sustainability with

GCNJ and IGES will use the knowledge

the sustainability of society is an important

gained through the preparation of thisstep towards becoming a company orreport to improve our fact-finding surveys

organisation that truly contributes to theand strengthen our activities and research
related to the SDGs. We will strive to support

achievement of the SDGs.

initiatives on the SDGs of GCNJ members
and other companies and organisations,
governments, consumers, and civil society.

65

4

4

Conclusion

GCNJ & Collective Action on the SDGs
The responsibility of the United Nations Global Compact (UNGC) for promoting SDG activities
in the private sector has been explicitly stated in UN General Assembly resolutions on morethan one occasion. The 10 Principles in the four areas set out by the UNGC are all universal
values that have been adopted and agreed upon internationally, and form the basis for
expectations placed upon companies related to the SDGs. In other words, promoting these
10 Principles will contribute to achieving the SDGs.
The SDGs serve as a common language and a communication tool. Over the past six years,
they have become increasingly recognised by the public and have spread throughout theprivate sector. However, there are less than eight years remaining to achieve the SDGs. To
do so, it will be necessary to take advantage of the communication function of the SDGs tobroaden the range of companies working on them and at the same time encourage eachcompany to set specific goals and engage in more strategic efforts. To this end, we havestrived to improve our ongoing surveys of companies by identifying the SDGs that require newand strategic approaches and developing survey questions on promising initiatives that canbe utilised as a checklist by company representatives when setting concrete goals. We wantto spur collective action to increase the number of companies that understand and promotethese strategic SDGs and aim to engage in business that truly contributes to the creationof a sustainable society. To this end, we will collect, examine, and work to implement theproactive ideas of many companies to achieve the 2030 goal.
Masahiro Kawatei
SDGs Taskforce Leader

66

5

Annex

■ 5.1  List of respondents■ 5.2  Summary of survey results

67

1

5.

List of Respondents

Manufacturing

Kao Corporation

MiningKOSÉ Corporation

Japan Petroleum Exploration Co., Ltd.、

Kuraray Co., Ltd.

Food

Lion Corporation

Asahi Group Holdings, Ltd.

Mandom Corporation

Ezaki Glico Co., Ltd.

Milbon Co., Ltd.

FUJI OIL HOLDINGS INC.

Mitsubishi Chemical Holdings Corporation

J-OIL MILLS , INC.

Mitsui Chemicals, Inc.

Kikkoman Corporation

Nippon Kayaku Co., Ltd.

Kirin Holdings Company, Limited

NIPPON SHOKUBAI CO., LTD.

LOTTE CO., LTD.

Sanyo Chemical Industries, Ltd.

MEGMILK SNOW BRAND Co.,Ltd.

SEKISUI CHEMICAL CO., LTD.

Meiji Holdings Co., Ltd.

Shin-Etsu Chemical Co., Ltd.

MORINAGA MILK INDUSTRY CO., LTD.

Showa Denko K.K.

The Nisshin OilliO Group, Ltd.

T. HASEGAWA CO., LTD.

San-Ei Gen F.F.I.,Inc

TAKASAGO INTERNATIONAL CORPORATION

Sapporo Holdings Limited

TEIJIN LIMITED

Yakult Honsha Co.,Ltd.

Tokuyama Corporation
Tosoh Corporation

Pulp and paper
Asahi Printing Co., Ltd.

UBE Corporation

Daio Paper Corporation

Zeon Corporation
Pharmaceuticals

Nippon Paper Industries Co., Ltd

DAIICHI SANKYO COMPANY, LIMITEDSAKURA PAXX Co.,Ltd

Nippon Shinyaku Co., Ltd.

Chemicals
Aica Kogyo Company, Limited

ONO PHARMACEUTICAL CO., LTD.

Daicel Corporation

ROHTO Pharmaceutical Co., Ltd.

Dainichiseika Color & Chemicals Mfg. Co., Ltd.

SHIONOGI & CO., LTD.

Earth Corporation

Oil and coal

Ecolab G.K.

ENEOS Holdings, Inc.

FANCL CORPORATION

Idemitsu Kosan Co.,Ltd.

FUTAMURA CHEMICAL CO.,LTD.

RubberJSR Corporation

Kinjo Rubber Co., Ltd.

KANEKA CORPORATION

Sumitomo Riko Company Limited

68

List of Respondents

Glass and ceramics

SEIKO EPSON CORPORATIONNGK INSULATORS, LTD.

Sharp Corporation

NGK SPARK PLUG CO., LTD.

TAIYO YUDEN CO.,LTD.

TOTO LTD.

TAMURA CORPORATION

Iron and steel

Tokyo Electron Ltd.

Kobe Steel, Ltd.

TOSHIBA CORPORATION

Nonferrous metals

Yokogawa Electric Corporation

Fujikura Ltd.

Transport equipment

Furukawa Electric Co., Ltd.

ISUZU MOTORS LIMITED

Toyo Aluminium K.K.

KYOKUTO KAIHATSU KOGYO CO., LTD.

YKK AP Inc.

Mazda Motor Corporation

Machinery

NOK Corporation

Daifuku Co., Ltd.

Yamaha Motor Co., Ltd.

DAIKIN INDUSTRIES, LTD.

Precision equipment

EBARA CORPORATION

Citizen Watch Co., Ltd.

Fujiwara Techno-Art Co., Ltd.

FUJIFILM Holdings Corporation

GLORY LTD.

Nikon Corporation

KITZ Corporation

OLYMPUS CORPORATION

Mitsubishi Heavy Industries, Ltd.

Tamron Co.,Ltd.

MIURA CO.,LTD.

Other products

Nabtesco Corporation

Aderans Company Limited

NTN Corporation

COMANY INC．

OILES CORPORATION

Fuluhashi EPO Corporation

SATO HOLDINGS CORPORATION

LINTEC Corporation

SEGA SAMMY HOLDINGS INC.

Mizuno Corporation

TSUGAMI CORPORATION

Nissha Co., Ltd.

Electronics

Rubycon Corporation

ADVANTEST CORPORATION

Setouchi Steel Co., Ltd.

ANRITSU CORPORATIONTOMY COMPANY,LTD.

Azbil Corporation

Yamaha Corporation

BROTHER INDUSTRIES, LTD.
FUJI ELECTRIC CO., LTD.

Construction

FUJITSU LIMITED
Hitachi, Ltd.

ASAHI KOGYOSHA CO.,LTD.

HORIBA, Ltd.

Chiyoda Corporation

Japan Display Inc.

MAEDA CORPORATION

Mabuchi Motor Co., Ltd.

Obayashi Corporation

MinebeaMitsumi Inc.

SANKEN SETSUBI KOGYO CO., LTD.

Mitsubishi Electric Corporation

SHIMIZU CORPORATIONNEC Corporation

Shin Nippon Air Technologies Co.,LtdOMRON Corporation

Sumitomo Forestry Co., Ltd.

Renesas Electronics Corporation

TAISEI CORPORATIONRICOH COMPANY,LTD.
ROHM Co., Ltd.
SAKAGUCHI E.H VOC CORP.

69

1

5.

1

5.

List of Respondents

Electricity and gas

Techno Associe Co., Ltd.

Electric Power Development Co.,Ltd.

Finance and insurance

Toho Gas Co., Ltd.

Mitsubishi UFJ Financial Group, Inc.

Information and communications

Mizuho Financial Group, Inc.

AVANT CORPORATION

Nippon Life Insurance Company

BIPROGY Inc.

ORIX Corporation

Fuji Media Holdings, Inc.

Resona Holdings, Inc.

ITOCHU Techno-Solutions Corporation (CTC)

Sompo Holdings, Inc.

Kokusai Kogyo Co., Ltd.

Sumitomo Mitsui Financial Group,Inc.

Mitsubishi Research Institute, Inc.

Sumitomo Mitsui Trust Holdings, Inc.

Nomura Research Institute, Ltd.

T&D Holdings, Inc.

QUICK Corp.

The Norinchukin BankSCSK Corporation

Tokyo Century Corporation

MS&AD Insurance Group Holdings, Inc.

software agency system co., ltd.
TEC INFORMATION CORP.

Real estate

TIS Inc.

KJR Management
Nomura Real Estate Holdings, Inc.

Land, sea, and air transport

Sumitomo Realty & Development Co., Ltd.

ACHIHA CO., LTD

Tokyo Tatemono Co., Ltd.

ANA HOLDINGS INC.

Tokyu Fudosan Holdings Corporation

Hitachi Transport System, Ltd.
Hankyu Hanshin Holdings, Inc.

Service

Japan Airlines Co., Ltd.
Kawasaki Kisen Kaisha, Ltd.

AMITA HOLDINGS CO.,LTD.

Nippon Yusen Kabushiki Kaisha

Business Consultants, Inc. (BCon)SENKO Group Holdings Co.,Ltd.

Central Nippon Expressway Company Limited

TOKYU CORPORATIONCIRCULATION INC.

YAMATO HOLDINGS CO., LTD.

Cre-en Inc.
Daily Advertising Co.,Ltd.
Deloitte Tohmatsu LLC

Wholesale and retail

Dentsu Group Inc.

Aeon Co., Ltd.

Ecology Path Inc.

Archivision Holdings co.,ltd

EDGE INTERNATIONAL, INC.

ASKUL Corporation

H.U. Group Holdings, Inc.

EcoRing Japan Co., Ltd.

Hakuhodo DY Holdings Inc.

Iwase Cosfa Co., Ltd.

Interactive Communication Innovator, Ltd.

J.Front Retailing Co., Ltd.

Japan Food Research Laboratories

JFE SHOJI Corporation

Jibannet Holdings Co., Ltd.

Marubeni Corporation

Kaihatsu Management Consulting, Inc.

Starzen Co., Ltd.

LbE Japan Co., Ltd.

Sumitomo Corporation

SAKURUG co.,ltd.

70

List of Respondents

TANABE CONSULTING CO., LTD.

JAPAN ELECTRICAL SAFETY & ENVIRONMENT TECHNOLOGY LABORATORIES.

Yachiyo Engineering Co., Ltd.

Japan Football Association (JFA)Japan Management Association
KOKUSAI GAKUIN EDUCATIONAL FOUNDATION

Local government, Academic
institute, association,
incorporated association/agency

Kwansei Gakuin University
Seigakuin University & Schools

Local government

The Building Center of Japan (BCJ)The Juridical Foundation for International Personnel Management

Kawasaki City
Academic institute, association, incorporated
association/agency

Other

Doshisha University
Gakkouhoujin Osaka Yuhigaoka Gakuen

Kuroda Group Co., Ltd.

Institute for Global Environmental Strategies (IGES)TORIDOLL Holdings Corporation

International Christian University

UTSUMI CO.,LTD.

International Development Center of Japan

71

1

5.

2

5.

Summary ofSurvey Results

Target: 437 GCNJ member companies and organisations(as of 30 September 2021)
Responses: 223 members (Response rate: 51%)
Survey period: 4 October to 18 November 2021

Basic Information on Respondents
Q1 Please select the industry that your company/organisation falls under.
Number of companies and organisations

Fisheries and agriculture
Mining③

Construction
Food

①

③

①

Textiles③

Pulp and paper
Chemicals③②

Pharmaceuticals
Oil and coal②

Transport equipment

④

5

1

Precision equipment

④

5

9

Other products

14Electricity and gas

0Land, sea, and air transport ③

94

Warehousing and transport

1

29

Information and communications

5

Wholesale and retail

①

10
③

2
③

2

Finance and insurance

2

Real estate

Glass and ceramics ③3Service

Iron and steel

1

Academic institute, association,
incorporated association/agency③

Nonferrous metals
Metals③③

4Machinery④

14

Electronics

④

25

Other

12
11

⑥

12

⑥

5

⑤

Local government

0

⑥

①

③

Rubber

③

1

20
⑤

①

⑥

13
1
3
223

Industries have been grouped into the following categories for this report (see table to the left for details on categories 1 to 6).
Number of companies and organisations① Food, logistics, local government, etc.

37

④ Machinery and equipment49② Chemicals and pharmaceuticals

34⑤ Service, non-profit, etc.

33

③ Manufacturing, transport, electricity, gas, etc.

38

⑥ Information, finance, real estate, etc.

32
223

72

Summary of Survey Results

Q2 Please select the scope of your business.

Q5 P
 lease tell us about yourself (the person
responding to this survey). (Responses omitted)%

Japan (National)

26.9

Global (International)

73.1

Q6 Where is your head office/headquarters located?
%

Hokkaido or Tohoku

0.4

Metropolitan area (Tokyo, Kanagawa,
Saitama, Chiba)

69.5

Kanto (Other than areas listed
in “Metropolitan area” above),
Koshinetsu

4.5

Tokai

4.9

Hokuriku

1.3

Kinki

15.2

Chugoku or Shikoku

2.7

4.9

Kyushu or Okinawa

0.9

2.5 bil. JPY - less than 25 bil. JPY

10.8

Other

0.4

25 bil. JPY - less than 100 bil. JPY

11.2

Over 100 bil. JPY

68.6

Non-profit organisation

4.5

Q3 Please select the number of employees in yourcompany/organisation.
%

10 to 249

13.0

250 to 4,999

30.9

5,000 to 49,999

43.9

50,000 or more

12.1

Q4 Please select the scale of sales of your company/
organisation.
%Less than 2.5 bil. JPY

Degree of Awareness and Level of Penetration of the SDGs
Q7 Please select the situation(s) that applies to the degree of awareness of the SDGs within your company/
organisation. (Select all that apply)%

CSR and sustainability officers are aware of and understand the SDGs.

95.1

Top management is aware of and understands the SDGs.

95.5

Middle management is aware of and understands the SDGs.

82.1

Employees are aware of and understand the SDGs.

77.1

Group companies are aware of and understand the SDGs.

62.8

Business partners, such as suppliers and clients, are aware of and understand the SDGs.

46.6

Investors who have a relationship with the company/organisation are aware of and understandthe SDGs.

57

Do not know.

0

Other

3.1

Q8 Which step of the SDG Compass has your company/organisation reached?

%

Step 1: Understanding the SDGs

11.2

Step 2: Defining priorities

13.9

Step 3: Setting goals

17.9

Step 4: Integrating

19.7

Step 5: Reporting and communicating

37.2

73

2

5.

2

5.

Summary of Survey Results

Q9 What actions are being implemented by your company/organisation to help achieve the SDGs?
(Select all that apply)%

We uphold the Ten Principles of the UNGC.

92.4

We integrate the SDGs into management strategies.

81.2

We develop products and/or services that contribute to the SDGs.

81.2

We design business models that contribute to the SDGs.

60.5

We provide voluntary financial contributions to charitable organisations and/or non-profits that
contribute to the SDGs.

47.1

Advocacy and public policy: We publicly advocate for the importance of action in relation to
the SDGs (making recommendations and/or advocating for policies).

19.3

Collaboration and partnerships: We participate in collaboration to advance the SDGs.

48.9

We launch new projects to contribute to the SDGs.

37.2

Other

4.5

Nothing in particular

0.4

Q10 What information has your company/
organisation released or disclosed
in the past year (e.g. reports, on
websites, etc.) related to the SDGs?
(Select all that apply)%

Q11 W
 hat challenges does your company/organisation face inrelation to taking action on the SDGs? (Select all that apply)%Societal awareness of the SDGs

8.5

Ways to expand actions within the company/
organisation

52.9

Commitment from top management

10.8

Level of understanding and implementation bymiddle management

56.5

Level of understanding and implementation
among general employees

58.7

Level of understanding and implementation byboard directors and/or executive officers in charge

23.3

Level of understanding and awareness in theentire value chain

48.9

Top messages and otherstatements expressing ourcommitment to the SDGs

86.1

Reflections on priority issues
and policies

84.3

Priority SDGs

73.1

Linkages to core business
areas

72.6

Development of products
and/or services that
contribute to the SDGs

75.8

Creation of business models
that contribute to the SDGs

49.8

74.9

Launch of new projects tocontribute to the SDGs

Setting quantitative indicators and evaluation
methods for impacts, etc.

38.6

52.0

Indicators and progress
related to the SDGs

Resources (funds, staff, capacity, technology,
etc.)

52.5

15.7

Specific impacts resulting
from activities related to the
SDGs

Political backing by national and local
government

24.7

Effective methods for stakeholder engagement

30.9

Methods for initiating collective action

18.4

Other

3.1

Appropriate partners for collective action

15.7

We have not publishedanything specifically related
to the SDGs.

2.2

Appropriate information disclosure (including
identifying risks related to “SDG-washing”, etc.)

43.0

Publicity and communication strategies for SDGs
actions (disseminating information in Japan andoverseas)

40.8

Balancing growth strategies and the SDGs

38.1

Other (Please specify. This section can also be
used to expand on any items selected above.)

1.8

Nothing in particular

2.2

74

Summary of Survey Results

Q12 What information and solutions would help your company/organisation advance SDGs activities in the future?
(Select all that apply)%

International trends related to the SDGs, such as the High-Level Political Forum, UN General
Assembly, World Economic Forum, etc.

26.5

National trends related to the SDGs, such as the SDGs Promotion Headquarters, SDGs Future
Cities, etc.

30.5Good practices by overseas companies on the SDGs

52.0

Good practices by companies in Japan on the SDGs

68.2

Methods to bring top leadership on board

21.1

Methods to increase the level of penetration of the SDGs within the company/organisation

58.7

Organisational structures to engage in the SDGs

46.6

Methods for integrating the SDGs into management principles and visions

31.8

Methods for setting KPIs

57.0

Methods for setting medium- and long-term targets

41.3

Methods for measuring and evaluating SDGs activities

71.7

Methods for information disclosure and reporting (including risk management for SDG-washing)

62.3

Public relations and communication on the SDGs in Japan and globally

47.1

Stakeholder engagement

39.0

Other

2.2

Nothing in particular

1.8

Q13 Which SDGs goal(s) has your company/organisation chosen tofocus on (taking impacts from COVID-19 into account)? (Selectall that apply)%

SDG 1 No poverty

20.2

SDG 2 Zero hunger

22.0

SDG 3 Good health and well-being

71.3

SDG 4 Quality education

43.0

SDG 5 Gender equality

72.2

SDG 6 Clean water and sanitation

36.8

SDG 7 Affordable and clean energy

67.7

SDG 8 Decent work and economic growth80.3

SDG 9 Industry, innovation and infrastructure

70.4

SDG 10 Reduced inequalities

50.7

SDG 11 Sustainable cities and communities

58.7

SDG 12 Responsible consumption and production

76.7

SDG 13 Climate action

81.2

SDG 14 Life below water

37.7

SDG 15 Life on land

45.7

SDG 16 Peace, justice and strong institutions

43.9

SDG 17 Partnerships for the goals

62.8

We have not selected any specific goals to focus on.

5.8

75

Q14 O t h e r t h a n t h e f i v e g o a l s
covered in this survey, has
your company/organisation
positioned any initiatives withspecific numerical targets asmateriality for the purpose ofcontributing to the achievementof the SDGs?
%

Yes

60.1

No

39.9

Q15 Please indicate: the number(s)of the SDG corresponding to
the goal(s) deemed particularly
important to your company/
organisation for which specificactions are being developed;
why that goal(s) is positioned
as materiality; an overview ofactions; state of progress; andsources of publicly available
information (e.g. URLs, etc.).
(Responses omitted)

2

5.

2

5.

Summary of Survey Results

Gender Equality (SDG 5)
Q16 Has top management expressed commitment to promoting gender equality and clearly positioned it as amanagement issue, for example by integrating gender equality into corporate guidelines and strategies?
(Select all that apply)%

Top management has not committed to promoting gender equality or specifically positioned it
as a management issue.

16.1

We understand that promoting gender equality is a foundation for “women’s active participation
in society” and “diversity and inclusion”, and reflect this in our policies and measures.

83.0

Top management has signed the Women's Empowerment Principles (WEPs) and is committed
to implementing policies and measures.

13.5

When formulating corporate guidelines and strategies, we include organisations and experts
with knowledge on gender issues in our stakeholder dialogues and interviews.

13.9

We release and actively communicate our commitments, policies, and progress in promoting
gender equality to external stakeholders through integrated reports and other means.

56.5

Q17 Has your company/organisation set targets for the percentage of women board members and formulatedplans to achieve these targets? (SDGs 5.5, WEPs 1 and 4)%

We have not set specific targets for the percentage of women board members.

74.9

We have set targets, but have no action plan in place.

4.9

We have set targets and formulated action plans (currently, the percentage of women board
members is less than 30%).

17.9

We have achieved a rate of 30% women board members.

2.2

Q18 Is your company/organisation taking measures to address the gender pay gap?
(SDGs 5.1, 8.5, and 10.3, WEPs 2) (Select all that apply)%

We have not conducted gender pay gap calculations.

63.7

We have conducted gender pay gap calculations, but the data exclude figures on non-regularand fixed-term employees.

16.1

The gender pay gap data covers all employees, including non-regular and fixed term employees.

14.8

Based on the data, we analyse the underlying factors that caused the gender pay gap.

12.1

We have targets and action plans in place to close the gender pay gap.

3.1

We disclose data on the gender pay gap.

4.9

Q19 Has your company/organisation taken measures to eradicate all forms of violence and sexual harassment atwork? (Select all that apply)%

We have not taken any specific measures.

1.8

We have set targets and put action plans in place to prevent and address violence and sexual
harassment both inside and outside of the workplace.

46.6

We have mechanisms in place for people to safely report incidences of violence and sexual
harassment (e.g. internal and third-party points of contact for reporting, etc.).

95.5

We conduct trainings for all employees on violence and sexual harassment on a regular basis.

81.2

Disciplinary measures against persons who perpetrate violence and sexual harassment areclearly stipulated and disclosed.

65.9

76

Summary of Survey Results

Q20 D oes your company/organisation conduct activities
to encourage male employees to take parental leave?
(SDGs 5.4 and 8.5, WEPs 2)? (Select all that apply)%

Q21 This question is directed to those who
responded that “Male employees are
required to take parental leave” in theprevious question. Please select oneof the following statements that best
describes the duration.
%

We do not carry out any specific activities.

17.9

We have guidelines and specific measures inplace to encourage male employees to takeparental leave.

67.3

Less than one week

25.0

Male employees are required to takeparental leave.

One week or more

12.5

3.6

One month or more

25.0

We disclose information on the status ofparental leave taken by male employees basedon data on the uptake rate and duration.

No specific number of days.

37.5

59.6

Q22 Is your company/organisation implementing gender responsive supply chain management?
(Select all that apply)%

We are not implementing gender responsive supply chain management.

61.4

We include supply chain management in the scope of policies to promote gender equality.

30.5

We collect relevant gender data from suppliers and clients in Japan and overseas.

19.7

We have systems in place to check/analyse the collected data.

13.0

We analyse and identify negative gender-driven risks and impacts from the data, formulate
measures to address them, and disclose such information.

4.5

We have policies and targets in place to procure from companies with commitments to genderequality, e.g. companies that have a rate of 30% or more women on the board. Or, we have a
supplier code of conduct that explicitly states support for gender equality.

0.9

We have policies and targets in place to promote procurement from women-owned businesses
in view of diversifying our supplier base and supporting women entrepreneurs. Or, we have a
supplier code of conduct that explicitly states support for women-owned businesses.

0.4

Q23 Does your company/organisation implement activities aimed at realising SDG 5(promoting gender equality and empowering women and girls)? (Select all that apply)%

We do not implement any specific activities.

33.2

Please provide details on the activities of your business programme(s) implemented in the aim
to contribute to the achievement of SDG 5.

64.1

Please provide details on financial support or investments provided to organisations that are
implementing activities to achieve SDG 5 (NPOs, government agencies, etc.).

12.6

Please provide details on activities on pro-bono support provided to organisations that are
implementing activities to achieve SDG 5 (NPOs, government agencies, etc.).

4.5

77

2

5.

2

5.

Summary of Survey Results

Q24 Does your company/organisation have mechanisms in place to collect the following data? (All SDGs, WEPs 7)%

No mechanisms
in place tocollect dataon a regularbasis (ad hoccollection isregarded as "nomechanism inplace")

Mechanisms inplace to collectdata on aregular basis

Data is regularlycollected,
factors analysed
for issues
identified, andefforts made toaddress issues

Data disclosed in
integrated reports,
company websites,
and in the databaseof the Act on
the Promotion of
Female Participation
and Career
Advancement.

Percentage of male/female
employees

4.9

17.9

2.7

74.4

Percentage of women andmen in management

5.8

17.0

4.0

73.1

Percentage of women andmen in new hires/mid-career
hires

9.0

24.7

9.4

57.0

Comparison of thepercentage of women andmen in terms of promotion
and advancement

18.4

37.2

24.7

19.7

Uptake rate and durationof parental leave by womenand men

13.9

21.1

9.9

55.2

Decent work and human rights (SDG 8)
Q25 Which of the following statements describe your company/organisation in terms of a policy commitment on
respect for human rights? (Select all that apply)%

We do not have any specific policy commitments in place.

9.4

Top management (of entire group) has expressed their commitment.

61.4

We have a policy commitment in place on respect for human rights that referencesinternationally recognised human rights and has been made available publicly.

55.2

We include respect for workers’ human rights in a company-/organisation-wide (or group-wide)
policy commitment that covers the entire value chain.

62.3

We include respect for the human rights of stakeholders unrelated to labour issues in our policy
commitment that covers the entire value chain (e.g. human rights issues related to consumers
and local communities involved in our business).

41.7

We reflect human rights issues identified through stakeholder engagement in the formulation
and revision of our human rights policy commitment.

21.1

We identify high-priority human rights issues that are related to our business and clarify these in
our policy commitment.

31.4

Other

9.9

78

Summary of Survey Results

Q26 Which of the following statements describe your company/organisation in terms of human rights due diligence?
(Select all that apply)%

We are not taking any specific measures or are not currently addressing this issue.

23.8

We offer training opportunities that address business and human rights to all employees.

58.3

We set incentives for respect for human rights, including making respect for human rights oneof the performance indicators for senior/middle management.

4.9

We incorporate our human rights policy commitment into specific action plans (set targets,track and evaluate performance and results).

26.0

We release information on activities related to respect for human rights, including our humanrights policy commitment, human rights due diligence, and remediation and remedy actions, ina cohesive format that is easily accessible to stakeholders.

34.5

We engage with stakeholders on human rights due diligence in business operations.

23.8

We conduct human rights impact assessments of our own operations, as well as for the value
chain, based on the overall perspective and priorities of our own human rights agenda.

24.2

We have an internal division or system that examines cross-departmental human rights issues
and grants the necessary authority and budgets for human rights activities.

33.2

Other

8.5

Q27 Which of the following statements describe your company/organisation in terms of remediation and remedy(grievance) mechanisms? (Select all that apply)%

We do not have any specific mechanisms in place.

12.6

We have external consultation and remedy mechanisms (lawyers or NGOs, etc.) for company/
organisation and group workers.

82.5

We have consultation mechanisms (either internally or externally) that can be used by anyone
outside the company/organisation, including consumers and local residents.

37.2

We disclose information on the usage of consultation mechanisms and procedures, grievances
contents and response measures, including the above two options.

20.2

We engage with stakeholders who may use these mechanisms, in order to review consultationand grievance mechanisms.

10.3

We have mechanisms in place for consultations and grievances available to workers in thevalue chain.

31.4

We work with victims (or individuals and organisations representing them) and engage with
suppliers, clients, and third parties (NGOs, etc.) to have remediation and remedy in place.

13.5

Other

4.0

Q28 Please provide details on remediation and remedy (grievance) mechanisms if they have been implemented forstakeholders other than employees working in Japan. (Responses omitted)

79

2

5.

2

5.

Summary of Survey Results

Q29 Which of the following statements describe your company/organisation in terms of realising decent work for all
workers? (Select all that apply)%

We are not taking any specific measures.

4.5

We monitor the working hours of workers in our group companies and make an effort to
optimise working hours.

92.8

We are developing or starting to consider the development of equal pay for equal work in thecompany’s/organisation’s systems.

53.4

We have our policy commitment in place prohibiting forced and compulsory labour, humantrafficking, and long working hours, including for technical intern trainees in our company/
organisation and suppliers, as well as a policy commitment prohibiting discrimination andharassment of foreign nationals.

60.1

We lobby the government (either on our own or through affiliated organisations) to ratify
treaties and legislation and solve problems to ensure decent work in countries and regions
where we operate.

1.3

We take corrective actions to ensure decent work (wages, working hours, etc.) at suppliers,
including a review of our own QCD (quality, cost, delivery) requirements.

17.5

Other

1.8

Q30 Which of the following statements describe your company/organisation in terms of consumer-related humanrights initiatives? (Select all that apply)%

We are not taking any specific measures.

35.4

We understand the human rights issues of consumers and users (end users) who are involved
with our business.

25.1

We offer products and services (e.g. universal design) that reflect the needs of minority
consumers and customers.

35.4

We take measures against human rights abuses of consumers and users of our company’s/organisation’s products and services (e.g. hate speech on social networking sites).

6.7

We identify issues related to respect for human rights from consumer/client grievances and put
measures and processes in place to address them.

23.3

We contribute to the greater realisation of human rights through our products and services.

30.9

Other

5.4

Q31 Which of the following statements describe your company/organisation in terms of efforts to address thehuman rights of local communities? (Select all that apply)%

We are not taking any specific measures.

35.4

We carry out activities that contribute to local communities in order to resolve human rights
issues in countries and regions (either in-house or in collaboration with other parties).

43.9

We make policy recommendations to the national government (either individually or as agroup) to address national- or regional-level human rights issues.

1.3

We have corporate policies (policies or procedures) in place (either on our own or as a group)
to address the structural problems of human rights abuses in the countries and regions where
we operate.

7.6

We understand the human rights issues that exist in the countries and regions where we
operate (e.g. through regular information gathering and human rights impact assessments).

29.6

We engage in activities (either in-house or in collaboration with other parties) to resolve humanrights issues in countries and regions through our core businesses.

22.0

Other

4.0

80

Summary of Survey Results

Responsible consumption and production (SDG 12)
The following industry sectors (at the time of GCNJ registration) are not covered in this section. Responses werereceived from 158 members.
Information and communications; finance and insurance; real estate; service;   academic institutes, associations,
incorporated associations/agencies, otherQ32 Has top management at your company/organisation expressed commitment or clarified in-house policies toachieve the sustainable management and efficient use of natural resources by 2050? (Select all that apply)%

We have not clarified policies.

22.8

We have clarified specific policies.

54.4

We have clarified specific policies, and top management has expressed commitment.

53.8

We have included items related to the efficient use of natural resources in risk management.

24.7

We have set measurable targets related to the efficient use of natural resources.

31.6

Other

3.2

The circular economy is recognised as one specific approach to achieving the sustainable management and efficientuse of natural resources by 2050.
Q33 Please indicate the implementation status of each of the following typical circular economy-type initiatives.

Not
implemented
or underconsideration

Not
implemented,
but under
consideration

Under
implementation

Procurement of sustainable raw materials

15.2

25.3

59.5

Introduction of circular product design suitable for
reducing the use of natural resources, the 3Rs, andextended product life

10.8

20.3

69.0

Use of and switch to recycled materials and resources

8.9

21.5

69.6

Development and introduction of recyclable alternative
materials, such as those of biological origin

17.7

30.4

51.9

Inclusion of environmental information related tomaterial efficiency on products (e.g. potential to recycle,
repair and upgrade)

39.2

23.4

37.3

Procurement of raw materials, product and service
design, production

Transport, sales, and consumption%%

Reduction in packaging materials used andconservation of resources in containers and packaging

9.5

15.2

75.3

Implementation of activities/business to extend theperiod of time a product is valuable by improving
product durability, regular maintenance, repair,remanufacturing, and resale

17.1

16.5

66.5

Development of sharing services: Development of sharing
business for underutilised products through technologybased platforms/Lending/borrowing and exchange ofassets owned by companies and/or consumers

62.7

23.4

13.9

Development of business models to offer Products
as a Service (PaaS): Instead of conventional sellingof products, products are provided as a “service”
according to customer usage patterns with payments
according to usage amount

52.5

16.5

31.0

81

2

5.

2

5.

Summary of Survey Results

Disposal, recovery, and resource circulation%

Introduction of returnable systems and productdeposit systems for containers and other items

43.7

22.2

34.2

Development of systems to collect and recycle usedcompany/organisation products from the market

39.2

22.2

38.6

Development of systems to collect, repair, resell, andremanufacture used company/organisation products
from the market

48.7

19.0

32.3

Recovery, reuse, and recycling of used products andresources from the market, not limited to company’s/organisation’s own products

46.2

19.6

34.2

Q34 W h i c h o f t h e f o l l o w i n g s t a t e m e n t s b e s t
describes your company/organisation interms of the status of projects implemented
in collaboration with other companies or
stakeholders for the circular economy?
%

We are not implementing or
considering projects.

22.2

We are not implementing projects, butthey are currently under consideration.

32.3

We are implementing projects.

44.9

Other

0.6

Q35 T h i s q u e s t i o n i s d i r e c t e d a t t h o s e w h o
responded affirmatively in the previous question
regarding implementing projects in collaboration
with other companies and stakeholders forthe circular economy. Please provide specificexamples, including partners, purpose ofcollaboration, content of project activities,
goals, and targets. (Responses omitted)
Q36 If your company/organisation takes part in initiatives
related to the circular economy, such as the Ellen
MacArthur Foundation Business Network (previously
the CE100 Network), the World Business Council for
Sustainable Development (WBCSD), or the Japan
Partnership for Circular Economy (J4CE), pleaseindicate the name(s). *including those in Japan andoverseas (Responses omitted)

The importance of changing our lifestyles as consumers and producers, including the sustainable management anduse of natural resources, has also been identified as a solution to the critical environmental problems we face.
Recent developments in social technologies, such as decarbonised lifestyles, reduced food loss, proper separationand collection of waste, sharing and reuse/recycling of clothing and consumer goods, and the use of next-generation
mobility services, have also encouraged and increased opportunities for shifts to more sustainable lifestyles.
Q37 Please indicate the status of activities by your company/organisation in each of the following areas related tolife style and education.

Not considerednecessary

Considerednecessary, but
not implemented
or underconsideration

Not
implemented,
but under
consideration

Under
implementation%

Education for consumers and the general public
to encourage shift to sustainable lifestyles

10.8

43.7

12.7

32.9

Awareness-raising activities toencourage shift to sustainable lifestyles

7.0

34.8

16.5

41.8

Product design and use of environmental
labels to encourage consumers and thegeneral public to act sustainably

8.2

29.7

14.6

47.5

Development of business models that
promote sustainable behaviour byconsumers and the general public

10.8

38.6

17.1

33.5

Incentives to encourage consumers andthe general public to act sustainably(e.g. discounts and point systems)

25.3

42.4

16.5

15.8

Actions other than the five above toencourage consumers and the generalpublic to act sustainably (FA)

86.7

−

1.9

11.4

82

Summary of Survey Results

Responses to climate change (SDG 13)
Q38 Has your company/organisation set targets to achieve net zero by 2050?

%

We have not set targets to achieve net zero.

29.6

We have set internal targets to achieve net zero.

10.3

Top management has expressed commitment to achieving net zero (not taking part in the
Science Based Targets initiative (SBTi))

33.6

We are taking part in SBTi to achieve net zero.

22.9

We aim to be carbon positive in addition to taking part in SBTi to achieve net zero.

3.6

Q39 Please select, by scope, the greenhouse gas (GHG) reduction emissions that you identify at your company/
organisation. (Select all that apply)%

We do not identify the scope of our GHG emissions.

11.2

Scope 1 (direct emissions occurring from sources owned or controlled by the company/
organisation)

83.9

Scope 2 (indirect emissions from the use of electricity, heat, and steam supplied by othercompanies)

80.3

Scope 3 (some or all of the indirect emissions from other companies that are related to ourbusiness operations)69.1

Q40 Which of the following activities does your company/organisation prioritise to achieve net zero?
(Select all that apply)%

Promotion of energy savings (energy-saving behaviour, installation of equipment, review ofworking practices, reduction of office floor space, etc.)

97.3

Increased procurement of electricity from renewable energy sources (excluding renewableenergy certificates)

66.4

Renewable energy certificates

40.8

Effective use of heat

39.5

Introduction of electric vehicles or charging infrastructure

33.2

Corporate PPAs (Power Purchase Agreements)

17.9

Promotion of the use of hydrogen

22.0

Purchase of offset credits (excluding renewable energy certificates)

18.4

Introduction of internal carbon pricing

28.3

Introduction of carbon dioxide capture, utilisation, and storage technologies

16.1

Investment in research and development on low-carbon and decarbonisation technologies inour own and other companies

34.5

Review of business models and project portfolios

30.5

Education and training of management, employees, and other stakeholders

49.8

Lobbying related companies and organisations (e.g. value chains)

24.7

Participation in initiatives in Japan and overseas

49.8

Transformation of people’s lifestyles

13.9

Policy recommendations to the government

10.8

Other

5.4

None of these statements apply

1.3

83

2

5.

2

5.

Summary of Survey Results

Q41 What barriers do your company/organisation face in achieving net zero (with or without set targets)?
(Select all that apply)%

Lack of understanding by top management

1.3

Difficulty in achieving net zero due to the nature of our business30.0

Too costly

61.4

Lack of technical prospects

50.7

Unsure how to acquire renewable energy

4.9

Other

18.8

No barriers

8.5

Q42 What external environmental improvements do you think are needed to help your company/organisationachieve net zero? (Select all that apply)%

Strengthening of NDCs (≒emission reduction targets)

35.4

Review of energy mix (increase share of renewable energy, etc.)

77.1

Intangible support for companies and organisations that want to engage in climate change
action (e.g. energy efficiency audits, support for setting SBTi targets and TCFD scenarios)

59.2

Tangible support for companies and organisations that want to engage in climate change action

63.2

Promotion of carbon recycling

39.5

Deployment of low-carbon technologies and products overseas through participation in the
Joint Crediting Mechanism and other systems

18.4

Promotion of corporate PPAs (Power Purchase Agreements) and review of virtual PPA systems

33.2

Introduction and promotion of carbon pricing

34.5

Support for electrifying vehicles

32.3

Other

11.2

None of these statements apply

3.6

Q43 Has your company/organisation identified and integrated climate change risks and opportunities into yourstrategies and plans?
%

We have not specifically identified risks and opportunities.

14.8

We have identified risks and opportunities, but have not integrated these into our strategies
and plans.

20.2

We have identified risks and opportunities at our workplaces and integrated these into ourstrategies and plans.

19.7

We have identified risks and opportunities, including for companies and organisations (e.g.
value chains).

28.3

We have identified and integrated risks and opportunities into our strategies, including local
communities where our businesses are located.

4.5

We have identified and integrated risks and opportunities into our strategies, including supply
chain partners and/or local communities where small-scale businesses are located.

5.8

Other (Please specify)

6.7

84

Summary of Survey Results

Preventing corruption (SDG 16)
Q44 Has your company/organisation clarified internal policies to prevent corruption (e.g. bribery and collusion),such as with commitments expressed by top management? (Select all that apply)%

We have not clarified internal policies to prevent corruption.

6.7

We have clarified internal policies to prevent bribery.

91.0

We have clarified internal policies to prevent collusive bidding.

61.0

Q45 What methods does your company/organisation use to assess corruption risk? (Select all that apply)%

We do not assess corruption risk.

17.5

We conduct desk-based research.

36.3

We conduct surveys for group employees in Japan and overseas.

35.4

We conduct interviews with group employees in Japan and overseas.

24.7

We conduct inspections (audits with onsite inspections) at relevant sites in Japan and overseas.

37.7

We conduct due diligence on suppliers (e.g. partners, distributors, consultants that provide
business support, etc.), and third parties.

19.7

Other

7.2

Q46 What internal regulations do your company/organisation have in place for anti-corruption procedures?
(Select all that apply)%

We have no specific regulations in place for anti-corruption procedures.

15.2

We have regulations in place to prevent bribery.

68.2

We have regulations in place to prevent collusion.

44.8

We have country- or region-specific regulations in place.

20.2

Other

12.6

Q47 What measures is your company/organisation taking to improve the effectiveness of internal regulations?
(Select all that apply)%

We are not taking any specific measures to improve the effectiveness of regulations.

1.1

We set up different decision/approval authorities according to the risk level.

57.1

We conduct anti-corruption education and training for group employees in Japan and overseas.

74.1

We have established disciplinary procedures for violators.

78.3

We have regulations for suppliers and third parties in place (e.g. codes of conduct for suppliers),
and provide education and training.

29.1

We conduct regular audits on the effectiveness of regulations.

51.9

We have an internal reporting system (whistle-blower system) in place.

94.2

We make improvements to our internal reporting system (whistle-blower system) (e.g.
multilingual support services, awareness raising, review of operations).

61.4

Other

3.2

85

2

5.

2

5.

Summary of Survey Results

Q48 What measures is your company/organisation taking to gain the understanding of stakeholders on anticorruption efforts? (Select all that apply)%

We are not taking any measures to gain stakeholder understanding.

30.9

We disclose information on the status of anti-corruption measures based on quantitative(numerical) data.

24.7

We disclose information on the status of anti-corruption measures based on qualitative(descriptive) data.

42.6

We create opportunities for dialogue with stakeholders on preventing corruption.

14.3

We have signed and take part in the Tokyo Principles (collective action on anti-corruption).

1.8

Other

11.7

Q49 What measures does your company/organisation have in place to prevent cover-ups of fraud around corrupt
practices (e.g. falsifying data, accounting irregularities)? (Select all that apply)%

We have no particular measures in place.

9.9

We have clear policies on preventing data falsification.

43.5

We are increasing security to prevent data falsification.

54.3

We have clear policies on preventing accounting irregularities.

53.4

S

43.0

We conduct inspections at relevant sites in Japan and overseas (audits with onsite inspections).

57.4

Other

7.2

86

July 2022, Japan
This is the English translated version of the Japanese report published in February 2022.
Research collaboration and authorship (5 SDG goals)
Asako Osaki, Director, Gender Action Platform
Mariko Saito, Director, Gender Action PlatformEmi Sugawara
Professor, Faculty of International Studies, Osaka University of Economics and Law
Mizuki Kato
Policy Researcher, Sustainable Consumption and Production Area, IGES
Chika Aoki-Suzuki 	Senior Researcher/Deputy Director…
Sustainable Consumption and Production Area, IGES
Kentaro Takahashi
Deputy Director, Climate and Energy Area, IGES
Akibi Tsukui
Programme Manager, Climate and Energy Area, IGES
Shinya Fujino	Assistant Professor, Faculty of Global Studies, Reitaku University…
Steering Committee Member, Anti-Bribery Committee Japan
Planning, development, authorship
Akira Doi
Yoshiko Shoji
Haruko Uchida

Global Compact Network Japan (GCNJ)
Global Compact Network Japan (GCNJ)
Global Compact Network Japan (GCNJ)

Shinji Onoda
Mayuko Ono

Research Manager, Integrated Sustainability Centre, IGES
Programme Coordinator, Integrated Sustainability Centre, IGES

Acknowledgement
Sincere appreciations are expressed to external stakeholders and colleagues, including members of the
GCNJ SDG Task Force, who reviewed and provided valuable comments in the preparation of this report.
About the cover design
The dynamic design shows the progress towards achieving the Sustainable Development Goals (SDGs) by
2030, together with the expansion as well as development of the efforts under each of the SDG goals, andfurther encourage collaboration and cooperation.
This report reviews the progress of the five goals that UNGC/GCNJ has positioned as priority (5. Gender
Equality, 8. Decent Work and Economic Growth, 12. Responsible Consumption and Production, 13. Climate
Action, 16. Peace and Justice and Strong Institutions) from experts’ perspective, and the cover design also
highlights the five goals.

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