Supporting Companies, Organizations and Government Agencies (in Alphabetical order)【Private Companies】■

AEON CO., LTD.

■

Ajinomoto Co., Inc.

■

ITOCHU Corporation■

ITO EN, LTD.

■

LIXIL Corporation■

Mandom Corporation■

Nissha Printing Co., Ltd.

■OMRON Corporation■

Saraya Co., Ltd.

■

Sompo Holdings, Inc.

■

Sumitomo Chemical Company, Limited■

Sumitomo Mitsui Financial Group, Inc. / Sumitomo Mitsui Banking Corporation■

Sysmex Corporation■

Takeda Pharmaceutical Company Limited【NGOs】■

Japan Civil Society Network on SDGs■

Save the Children Japan【Ministries and Agencies】■

Ministry of Economy, Trade and Industry of Japan■

Ministry of Education, Culture, Sports, Science and Technology of Japan■

Ministry of Foreign Affairs of Japan■

Ministry of the Environment of Japan■

Japan International Cooperation Agency (JICA)

June 2017, Japan
This is the English translated version of the Japanese Report published in March 2017.
URL: http://www.ungcjn.org/activities/topics/detail.php?id=208
https://pub.iges.or.jp/pub/SDGs_Business_in_Practice
Authors:
Akiko Ueno, Deputy Representative, GCNJ Office
Tomoko Dowaki, Assistant Manager, GCNJ OfficeTetsuya Ishii, Principal Research Director/ Principal Fellow, IGES
Ikuho Miyazawa, Communications Manager/Policy Researcher, Programme Management Office, IGES
Mizuki Kato, Assistant Researcher, Programme Management Office, IGES
Tetsuro Yoshida, Task Manager/Senior Researcher, Integrated Policies for Sustainable Societies Area, IGES
Hideyuki Mori, President, IGES
Acknowledgement:
The authors would like to express their sincere appreciation to those who contributed to drafting this report,
namely, Business Policy Forum, Japan, and Engagement First Inc. (an affiliated company of Members. Co., Ltd.), as
well as those who reviewed and provided valuable comments on the draft, namely, Mr. Toshio Arima, Chairmanof the board, GCNJ, Prof. Hironori Hamanaka, Chair, Board of Directors, IGES, Prof. Hidefumi Imura, IGES Senior
Fellow, Prof. Katsuhiko Mori, Professor at International Christian University and other partners and colleagues in
GCNJ and IGES. In addition, the authors appreciate great efforts made by IGES colleagues who translated andreviewed the English version, namely, Emma Fushimi and Matthew Hengesbaugh.

Contents
1. Introduction

1

2. Overview of research

3

3. Trends concerning business actions on the SDGs

4

3.1.

Trends concerning SDG-related actions in Japan and overseas

3.2.

Status of SDG-related actions by non-Japanese companies

4. The status of SDG-related actions by Japanese private companies
4.1.

The current state of implementation and leading case studies

4.2.

Implementation challenges faced by Japanese companies

5. Future pathways moving from “checklists” to “core business”
5.1.

Distinguishing features from cases and future pathways

5.2.

Recommendations to related stakeholders

4
7

11
11
21

25
25
27

Annex

30

References32

Abbreviations
CO2	���������������� Carbon dioxideNGO	�������������� Non Governmental Organization

COP21 	���������� 21st Conference of the Parties tothe UN Framework Convention
on Climate Change (UNFCCC)

ODA	��������������� Official Development Assistance

CSR	����������������� Corporate social responsibility
CSV	���������������� Creating shared value
ESG	����������������� Environmental, social andgovernanceEU	������������������� European Union
G7	������������������� Group of Seven
GCNJ	������������� Global Compact Network Japan
GRI	������������������ Global Reporting Initiative
HLPF	��������������� High-level Political Forum
IGES 	�������������� Institute for Global
Environmental Strategies
JICA	��������������� Japan International Cooperation
AgencyKPI 	����������������� Key Performance Indicator
MDGs	������������ Millennium Development Goals

PDCA	������������� Plan-Do-Check-Act
SDGs	�������������� Sustainable Development Goals
TCFD	�������������� Task Force on Climate-related
Financial Disclosures
UNDP	������������ United Nations Development
Programme
UNEP	������������� United Nations Environment
Programme / United Nations
Environment
UNEP FI	�������� UNEP Finance Initiative
UN ESCAP	���� United Nations Economic andSocial Commission for Asia andthe Pacific
UNGC	������������ United Nations Global Compact
WBCSD 	�������� World Business Council for
Sustainable Development

Remarks

Since the emergence of the SDGs, Global Compact Network Japan (GCNJ) has
been ambitiously promoting activities to link SDGs with business actions based on
implementing the United Nations Global Compact (UNGC)’s Ten Principles, related
to the protection of human rights, labor issues, environmental protection, and anticorruption. I feel that the world is moving fast, with SDGs becoming a keyword
from last year. In 2016, GCNJ was actively involved in a range of policy processes,
such as inputs to G7 Summit and participating in G7 Environment Ministers
Meeting, providing comments to Japan’s SDGs Implementation Guiding Principles
at its Roundtable, attending Stakeholders’ Meeting organized by the Ministry of
the Environment of Japan, all of which were opportunities for discussion withstakeholders. What has become clear from these experiences is that the private
sector is expected to play a major role achieving SDGs. I believe that GCNJ should
function as a platform for Japanese private companies.
The question is how to scale-up actions by private companies. First of all, the top,
middle and bottom layers of each company need to fully understand and have agood sense of the SDGs as being an important tool for companies and society. The
next step would be to integrate the SDGs into corporate strategy and businessactions. I hope that this report will be a helpful guide for companies to accelerate
their actions on SDGs.
Now in 2017, we are facing uncertainty about the prospects for the social andeconomic landscape, but we would like to work together to transform the world by2030 by bringing a “human face to the global market”, a proposal advocated by theformer UN Secretary-General, Kofi Annan.
Finally, I would like to express my sincere
gratitude to our collaborators including GCNJ
member companies and organizations, nonGCNJ members, as well as to our joint partner,
IGES.
June 2017

Toshio Arima

Chairman of the board
Global Compact Network Japan

Remarks

IGES and GCNJ recently joined together to conduct research on the current status
and features of Japanese business actions on SDGs, making use of a questionnaireand face-to-face interviews. This is the second time that IGES has collaborated
with GCNJ, following a project to develop a version of SDG Compass translated
into Japanese. IGES only has limited experience with this kind of research targetingbusiness actions on SDGs, but thanks to GCNJ’s networks with key leading
companies across a range of issue areas, we were able to engage in this opportune
and significant research topic. Taking this opportunity, I would like to express mysincere gratitude to Mr. Toshio Arima, Chair of the Board of GCNJ, to other GCNJ
colleagues, as well as to the collaborating companies, government ministries andagencies, and all the other organizations involved.
IGES will soon celebrate its 20th Anniversary, and over the years, we have been
making concerted efforts to carry out action-oriented and innovative policy researchso that the outcomes of that research can be translated into practical policies andactions. We believe that IGES should actively pursue its social mission to be anagent of change in collaboration with various stakeholders. In this context, I havecome to realize that it is even more necessary for us, including state and nonstate actors such as businesses and research organizations, in both developed anddeveloping countries, to collaborate and work together to effectively and smoothly
implement the Paris Agreement and the 2030 Agenda for Sustainable Development
which include SDGs, adopted in 2015.
In light of this, there is a growing need for the business sector to create a sharedvalue, generating both corporate as well as social values at the same time, and seek
future business opportunities by integrating SDGs-related actions into corporate
strategies. Based on the understanding of the concept of planetary boundaries, it
is ever-more crucial for engaging stakeholders with a view to co-designing and coproducing possible pathways leading to thecreation of a decarbonized, resource-efficient,and circular business model. I very much hopethat more and more business stakeholders will
actively engage in these kinds of activities, and I
am sure that this report will prove to be useful inthe further promotion of such activities.
June 2017

Hironori Hamanaka

Chair, Board of Directors
Institute for Global Environmental Strategies

1. Introduction

In 2015, the international community adopted two
landmark global frameworks for action: the 2030
Agenda for Sustainable Development, which includes
the Sustainable Development Goals (SDGs), as well as
the Paris Agreement, which lays out the architecture forpost-2020 climate change mitigation efforts. Comprisedof 17 goals, 169 targets and 230 associated indicators,
the SDGs represent a remarkable achievementof multilateral cooperation, outlining a series ofcomprehensive and far reaching global measures crucial
for realizing a prosperous, sustainable and equitable
future for all. In this regard, an important hallmark of theSDGs is the concept of “leave no one behind”. Differingfrom past development agendas such as the Millennium
Development Goals (MDGs), the SDGs are concernedwith issues faced by both developing and developed
countries alike. Similarly, implementation of the Goals
is recognized not only as the responsibility of national
governments, but of a range of stakeholders including
businesses, local governments, non-governmentalorganizations (NGOs), and academia, all of whom areconsidered equal partners in delivering on the SDGs.
Whilst various actors around the globe are leading
campaigns in support of the 2030 Development
Agenda, the private sector plays an especially vital role,promoting the business case for sustainability in linewith the demands of citizens and consumers. Indeed,
SDG initiatives led by private companies in Japan andabroad are increasingly garnering attention.

and climate change as key drivers of future revenue
and earnings growth. Accordingly, several companies
are progressively incorporating the SDGs into their
management strategies and mid-term plans, whereas anadvanced few are moving forward with implementing
the SDGs as a primary business objective.2.

Released approximately around the same time as the
adoption of the SDGs, the report “SDG Compass: A
Guide for Business Action on the SDGs” 1 authoredThe report first provides an overview of current domestic
and international trends related to private sector
engagement on the SDGs. Next, it outlines SDG-related
actions of Japanese companies based on the findingsof an online survey which targeted a total of 233 GCNJ
member and associated companies/organizations (asof 2 September 2016, hereafter referred to as “GCNJ
members”). Results of separate interviews with 10
companies, related organizations and agencies including
GCNJ non-members, are then introduced. This serves asa springboard for discussion on the merits and incentives
for business action on the SDGs, including various tools
and methods for making this possible, presented with
examples and references to the SDG Compass alreadyby the United Nations Global Compact (UNGC), theGlobal Reporting Initiative (GRI) and the World BusinessCouncil for Sustainable Development (WBCSD) is
recognized as an important resource for informationon company-led actions on the SDGs (a Japaneseversion of the report was published in March 2016). As
outlined in the report, a growing number of companies
are incorporating the SDGs into their core businessmodel; among overseas corporations in particular,
previous perception on corporate social responsibility
is now shifting towards understanding sustainability
121

Against this backdrop, there remains some uncertainty
about the level of recognition Japanese companies
attach to the SDGs ― including the extent to which
implementation plans are being developed — as wellas those specific issues informing such initiatives. Publicrecognition about the SDGs in Japan is still low, and many
companies continue to face difficulties in approaching
the SDGs as a business opportunity. These challenges
underline the need for further research about theknowledge, attitude and practices of various Japanesecompanies in relation to the SDGs, which serves as
the basis of this report. Targeting concerned managers
and staff from a cross-section of organizations thathave expressed interest in the SDGs — including those
exploring the potential of launching future initiatives, andthose that have committed to actions yet face difficulties
in carrying them out — as well as external stakeholders
from government and other groups seeking to support
these campaigns. This report seeks to clarify the main
factors driving Japanese businesses to consider the SDGs,
illustrating with examples of successful companies thatare leading efforts in this space.

SDG Compass: (English) http://sdgcompass.org/ (Japanese) http://sdgcompass.org/wp-content/uploads/2016/04/SDG_Compass_Japanese.pdf
This‌
report defines “integrating SDGs into the core business model” as the management concept called Creating Shared Value (CSV) that aims to solve social problems throughcorporate business activities by achieving balance between social value and value for corporations, advocated by Michael E. Porter of Harvard University, in combination withintegration of sustainability/SDGs into corporate management strategies (incorporation into plans and strategies, implementation as a core business objective).

1. Introduction

being utilized by many companies. Such discussion

the SDGs, especially through project implementation.

Japanese companies are examined. Lastly, by evaluating

Developed through joint research undertaken by GCNJ

provides a lens through which selected issues faced bysuch conditions, the report reviews the current status of
SDGs-related actions carried out by Japanese companies
as well as the distinguishing features of these initiatives,offering recommendations on potential roles andexpectations of respective stakeholders in delivering on

and IGES, this research report supports these findings
with concrete examples and observations aimed at
guiding the acceleration and promotion of SDG-related
initiatives by companies and relevant stakeholders, bothin Japan and abroad, now and into the future.

Sustainable Development Goals (SDGs)

Source: United Nations Information Center

Goal 1.

End poverty in all its forms everywhere

Goal 2.

End hunger, achieve food security and improved nutrition and promote sustainable agriculture

Goal 3.

Ensure healthy lives and promote well-being for all at all ages

Goal 4.

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

Goal 5.

Achieve gender equality and empower all women and girls

Goal 6.

Ensure availability and sustainable management of water and sanitation for all

Goal 7.

Ensure access to affordable, reliable, sustainable and modern energy for all

Goal 8.

Promote sustained, inclusive and sustainable economic growth, full and productive employment anddecent work for all

Goal 9.

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

Goal 10.

Reduce inequality within and among countries

Goal 11.

Make cities and human settlements inclusive, safe, resilient and sustainable

Goal 12.

Ensure sustainable consumption and production patterns

Goal 13.

Take urgent action to combat climate change and its impacts

Goal 14.

Conserve and sustainably use the oceans, seas and marine resources for sustainable development

Goal 15.

Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests,
combat desertification, and halt and reverse land degradation and halt biodiversity loss

Goal 16.

Promote peaceful and inclusive societies for sustainable development, provide access to justice for all
and build effective, accountable and inclusive institutions at all levels

Goal 17.

Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development22. Overview of research

Accordingly, the objective of this report is to assessinternational business trends related to the SDGs with aview towards better understanding the current state of
SDG-related actions conducted by domestic industries
in Japan. Making use of both primary and secondary
research methods, the report was prepared in thefollowing manner: first, information on relevant trends
and corporate activities related to the SDGs in Japanand abroad were collected via a literature review ofreports issued by prominent business networks suchas the UNGC and WBCSD, as well as United Nations
conferences and summits.

provided responses. Upon review of the survey results,
a total of 10 companies — including 9 of 37 businesses
that have already launched SDG initiatives — indicatedthat they were willing to publicly release the contents
of initiatives. In addition to selecting one GCNJ nonmember company, the sample also featured sevenorganizations, including NGOs and related offices, suchas the Japan International Cooperation Agency (JICA);
interviews were conducted with these stakeholders
between December 2016 and February 2017 withconsideration given to differences in the scale, and typeof business under review.

Second, a survey targeting GCNJ members (a totalof 233 companies/organizations 3 ) was conducted

Approximately 80% of GCNJ members that responded
to the survey can be classified as large corporations,with 70% of these companies posting gross salesof over JPY 100 billion (Figure 1); moreover, 71% ofsurveyed members indicated engagement in global
markets (Figure 2). However, it is also necessary to bearin mind when reviewing these results that the profile oftargeted companies varies widely from the distribution
ratio by scale based on the Ministry of Economy, Tradeand Industry’s (METI) classifications, and that small andmedium-sized enterprises are generally not included.

to better ascertain the status of current actions on
SDGs led by the Japanese business sector, clarify any
issues that arise in relation to SDG implementation,and determine future research directions. In addition,interviews were conducted with domestic companies
and their responsible staff tasked with carrying
out leading SDG-related initiatives. The survey wascirculated online over the period of 2-21 September
2016, during which time 147 companies/organizations

4％

6％

10％
8％

18％

8％
5％
71％

70％

GlobalRegional
National
Local

n=147
Less than JPY 2.5 billion
2.5 billion - less than JPY 25 billion
25 billion ‒ less than JPY 100 billion
Over JPY 100 billion
Not applicable

n=147

Figure 1:
Sales of respondent companies/organizations

3

3

GCNJ member numbers as of 2 September 2016.

Figure 2:
Markets of respondent companies/organizations

3. Trends concerning business actions on the SDGs

3.1. Trends concerning SDG-related
actions in Japan and overseas
Following the adoption of the SDGs in 2015 andthe early entry into force of the Paris Agreement in
2016, many countries are already making efforts toincorporate the SDGs into their domestic and foreign
policy agendas. For instance, at the G7 Summit
held in May 2016, G7 member countries agreed topromote international cooperation on implementationof the SDGs. Moreover, at the G20 Summit held in
September of the same year, a resolution was put
forward reaffirming support for the 2030 Agenda for
Sustainable Development and the Paris Agreement.
Likewise, a number of countries are spearheading
initiatives aimed at integrating the SDGs into national
plans and establishing responsible organizations toinitiate and support such strategies. Local authorities
have also started working toward realization of theSDGs, sometimes in partnership with the private
sector. In the business sphere, SDG-related activities
are becoming increasingly dynamic, varying widely inscope and purpose. These range from discussions on
corporate actions based on the UN Guiding Principles
on Business and Human Rights — a framework
intrinsically aligned with the SDGs — consultations on
green and ESG (Environmental, Social and Governance)
investments, reviews of recommendations issued by the
Task Force on Climate-related Financial Disclosures,
following its launch at the G20 Finance Ministers andCentral Bank Governors meeting, dialogues on carbon
pricing and optimal internal procedures for companywide adoption, and growing engagement in the RE100
Initiative 4 to promote 100% adoption of renewableenergies (RE), among many others.

Despite this momentum, two historic events of 2016
prove likely to shape international cooperation in theyears to come. In June 2016, the results of a nationalreferendum on European Union (EU) membership— aptly named Brexit — determined that the UK would
choose to leave the European bloc; and, in November ofthe same year, Donald Trump emerged as the winning

4

5

candidate in the US presidential election. In the midstof growing economic disparity across the globe, thesedevelopments hold serious implications for pluralism
and continued economic integration. For instance,
President Trump’s doctrine of “America First” is premisedon a distrust for multilateral institutional bodies suchas the United Nations, and he has staffed much of his
administration with those of similar views — including

Scott Pruitt, widely recognized as a climate change
skeptic, as Administrator of the US Environmental
Protection Agency. On the contrary, the SDGs were
explicitly written with a view towards addressing global
scale problems, built upon the objective of “leaving
no one behind”; in this context, much of the 2030
Development Agenda attaches importance to domestic
issues, including but not limited to Goal 8 (Decent Workand Economic Growth). Taken together, the extent towhich these trends will impinge on international efforts
to promote a favorable environment for enhanced SDG
action still remains to be seen.
Status of SDG-related actions at the global level
In light of the above, how far has the international
community advanced with regard to the implementationof SDG-related actions and the measurement ofprogress? To answer this question, it is necessary tolook to the UN-established High-level Political Forum(HLPF), which serves as a framework for monitoring
the delivery of the 2030 Development Agenda. This
organization will continue to play a central role inevaluating the SDGs well into the future.5

Moreover, Voluntary National Reviews (VNR) have been
instituted by the HLPF; reviews are planned for Goals 1(poverty), 2 (hunger), 3 (health), 5 (gender equality), 9(infrastructure) and 14 (oceans) in 2017, and Japan is
one of the countries involved in the process. Meetingsof the Inter-agency and Expert Group on SDG Indicators(IAEG-SDGs) have frequently been organized to discuss
data requirements for effective SDG measurement.
Although deliberations on global indicators andmanagement of country data for reporting on SDG
progress have moved forward among respective‌ business initiative whereby companies declare to convert to 100% renewable energies for company energy supply. As of February 2017, 87 companiesA
have signed on, http://there100.org/companies‌The HLPF was founded as an organization to replace the Committee on Sustainable Development (CSD) in “The Future We Want” outcome document of
the United Nations Conference on Sustainable Development (Rio+20) held in 2012.

4

3. Trends concerning business actions on the SDGs

countries, a comprehensive international agreement

has indicated its intention to launch a government-

SDGs-related meetings have also been held around the

purposes of monitoring national implementation in thenear future.8 Moreover, the Government of Indonesia,
widely recognized for the leadership efforts of its
previous President in promoting MDG-related initiatives,
expeditiously restructured its former MDGs bureau focus
on the SDGs and subsequently assimilated the Goals into
its 2015-2019 Mid Term National Development Plan, in
addition to preparing a National SDGs Action Plan andNational SDGs Road Map for the years 2016-2030.9 The

has yet to be reached. Aside from HLPF and IAEG-SDGs,

globe. In the Asian region for instance, SDG Week wasorganized in November 2016 sponsored by the United
Nations Economic and Social Commission for Asia andthe Pacific (UNESCAP), providing an opportunity for the
sharing of knowledge and experiences highlighted by arange of diverse initiatives aimed at realizing the SDGs.
SDG-directed actions have also advanced at thenational-level, both in developed and developing
countries. For instance, among G7 countries,
incorporation of the SDGs into national plans wasreported at the G7 Environment Ministers Meeting heldin May 2016 as well as at the HLPF organized in July of
the same year. Accordingly, because social, economicand environmental sustainability initiatives have been
well underway in many European countries since the1990s, these states were among the first to incorporate
SDGs into their existing national plans and strategies.
For example, concurrent with its adoption of theGoals, Germany determined that its existing National
Sustainable Development Strategy would serve as theoverarching framework guiding SDG implementation;
in January 2017 the country announced concretedomestic measures aimed at achieving the SDGs. 6

The German government has also established multistakeholder dialogue forums on the SDGs comprisinglocal governments, industry and NGOs. Moreover, thegovernment of Switzerland was the first to establish aninter-ministerial working group on the SDGs tasked withperforming gap analysis on alignment of the Goals withexisting domestic policies aimed at clarifying priority
issues and corresponding action measures.7
Developing countries, on the other hand, are supporting
various initiatives to incorporate the SDGs into domestic
policies based on previous experiences with theMillennium Development Goals (MDGs). For example, anumber of countries in Asia are adopting participatory
approaches, soliciting the inputs of diverse stakeholders
in deliberation processes with a view towards integrating
SDGs into national plans and policies. Accordingly, as
the Philippines reported at the 2016 HLPF, such an
approach was used to conduct a gap analysis designed
to examine how domestic targets and measures could
be harmonized with SDG goals and indicators towards
identifying priority issues for action. Further, the country

managed website on the SDGs which would be used forcountry has also facilitated cooperation between UNDP
and civil society to advance the formulation of actionplans on the SDGs at the regional level.10
In sum, international actions to promote the SDGs
— including partnerships between different actors
working on the Goals — continue to increase infrequency and number; this expanded development
space reflects a growing convergence between thehuman and environmental sustainability agendas
comprised under the SDGs. At the same time, however,a large percentageof the generalpublic remains
u n i n f o r m e dabout the Goals.
Private enterprises
in particularurgently require
information about
how businesspractices must
adapt in order tomost effectively
deliver on the
SDGs. Addressingthese knowledge
gaps represents a major challenge for international
stakeholders working to implement the 2030
Development Agenda.
Status of SDGs-related actions in JapanIn May 2016, the Government of Japan — seeking
to promote mutual cooperation among respective
administrative bodies with a view towards guiding
integrated implementation of the 2030 Development
Agenda — initiated deliberations on aligning domestic
policies with the SDGs, thereafter launching theFederal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety, http://www.bmub.bund.de/en/‌Switzerland Federal Department of Foreign Affairs, https://www.eda.admin.ch/agenda2030/en/home/actualite/news.html/content/agenda2030/en/
meta/news/2017/2/erste-umsetzungsschritte-schweiz
8
Sustainable Development Knowledge Platform, https://sustainabledevelopment.un.org/hlpf/2016/philippines
9‌Indonesian Ministry of National Development Planning (BAPPENAS), http://www.asia-pacific.undp.org/content/dam/rbap/docs/meetTheSDGs/
Opening%20-%20Country%20Reflections%20-%20Indonesia%20(by%20Mr.%20Jusuf).pdf
10‌United Nations Development Group (2017), https://undg.org/indonesia-promoting-inclusive-approaches-to-localize-the-sdgs/
67

5

3. Trends concerning business actions on the SDGs

“Sustainable Development Goals (SDGs) Promotion

business case for SDG implementation, such as innovation,

Chairmanship of Prime Minister Shinzo Abe. Accordingly,

time, several methodological issues can be observed.

Headquarters” within its cabinet under the

all government ministers and heads of related agencies
are affiliated members of the Promotion Headquarters.
Table 1: Eight priority areas in the Japanese
government’s SDGs Implementation Guiding Principles
1. Empowerment of All People
2. Achievement of Good Health and Longevity
3. ‌Creating Growth Markets, Revitalization of Rural Areas,
and Promoting Science Technology and Innovation
4. ‌Sustainable and Resilient Land Use, Promoting
Quality Infrastructure
5. ‌Energy Conservation, Renewable Energy, Climate
Change Countermeasures, and Sound Material-Cycle
Society
6. ‌Conservation of Environment, including Biodiversity,
Forests and the Oceans
7. Achieving Peaceful, Safe and Secure Societies
8. ‌Strengthening the Means and Frameworks for the
Implementation of the SDGs

Following its establishment, the Headquarters held “SDGs
Roundtable Discussions” in September and November
2016 aimed at facilitating an exchange of views on theformulation of guidelines for SDG implementation between
government officials and representatives from a range oforganizations including public interest groups, experts,
the private sector and international agencies. Several
rounds of public consultations on the topic were also
conducted. Based on these processes, Implementation
Guidelines for the SDGs were issued in December 2016.
As indicated in the final document, the overarching visionof the guidelines is to “serve as a forerunner to a futurethat is sustainable, resilient, leaves no one behind andrealizes comprehensive improvements to the economy,society and environment”, in line with five proposed
implementation principles: 1) universality, 2) inclusiveness,
3) participatory approach, 4) integrated approach, and5) transparency and accountability. Discussions continue
to take place on the guidelines and a stocktaking of
progress made on the SDGs is planned in Japan by 2019.
In addition, eight priority issues, together with concretemeasures for achieving respective SDGs and targets arehighlighted. These include priority issues concerning theinfrastructure and energy development. At the same

For instance, because quantitative indicators are notspecified for all items, the manner by which progress will
be qualitatively assessed stands as an important futurechallenge for consideration.11
Since the formulation of the Guidelines, there have been
a number of examples of domestic measures taken up
by Japanese government ministries and agencies on
the SDGs. Firstly, the Ministry of the Environment has
advanced discussions on its Fifth Basic Environment Plan
based on the 2030 development framework: stakeholder
consultations sponsored by the ministry have been
established with the aim of promoting informationsharing on the SDGs, specifically with regard to various
actions carried out by different implementing bodies
in the private sector. This has proven to be a valuable
forum for evaluating pioneering industry practices and isscheduled to continue through 2017. Second, the Ministryof Education, Culture, Sports, Science and Technology,
aiming to promote equal opportunities in educational
sphere, revised national curriculum standards with a view
towards fostering the required skills and competencies
for the 21st Century; in line with its inputs into the SDGs
Implementation Guiding Principles (Annex), the Ministry
intends to support enhancing the capacity of teachers
towards this aim.12 In addition, following international
investment trends, METI is currently deliberating on
guidance aimed at facilitating effective dialogue between
the investors and corporations on the promotion of ESG
investments, evidenced by the establishment of its “Study
Group on Long-term Investment (Investment evaluating
ESG factors and intangible assets) toward Sustainable
Growth”.13

With regard to Japanese initiatives at the international
level, JICA — the country’s main development
assistance agency — has an active history of supporting
countries with efforts to achieve the MDGs; accordingly,
in September 2016 the organization released aposition paper focused on addressing the SDGs. The
paper sets out ten goals which are adopted as priority
issues; these include those that continue to carryforward MDG-related actions such as eradication ofhunger and promotion of primary education for all,as well as emerging issues such as the advancement‌Forinstance, the “Creating a Society Where All 100 Million Are Taking Active Parts: Reforming Ways of Working” is a domestic measure related to SDG 8(decent work and employment). The indicators put forth in the “Japan All 100 Million Taking Active Parts Plan” are given as indicators for SDG target 8.5(by 2030 achieve full and productive employment and decent work for all men and women, including for young people and persons with disabilities, andequal pay for work of equal value). SDGs Guidelines for Implementation, “Concrete Measures to Achieve Sustainable Development Goals (SDGs) (appendix
table)”, http://www.kantei.go.jp/jp/singi/sdgs/dai2/siryou2.pdf
12Ibid, p. 2.
13‌Ministry of Economy, Trade and Industry, “On Establishment of the Study Group on Long-term Investment (Investment evaluating ESG factors andintangible assets) toward Sustainable Growth”, http://www.meti.go.jp/english/press/2016/0822_03.html
116

3. Trends concerning business actions on the SDGs

of clean energy and mitigation of climate change.14

explicit mention of other Goals was limited at best.

for businesses on addressing developing country

observe the extent to which domestic measures andMoreover, in February 2017, JICA developed its “Survey

challenges (SDGs Business)” with a view towards
exploring potential areas of cooperation with private
sector actors working on the SDGs.15 In line with SDG

17 (Partnerships for the Goals), this initiative fields
solicits proposals from Japanese private enterprises
which are considering applying company products,
technologies and expertise towards the startup or
expansion of SDG-related businesses. Accordingly,
JICA has accumulated information on local conditions
and needs of developing countries, as well as available
networks technologies and capabilities to support thepromotion of projects and interventions in targetedareas. Thus, through strategic efforts to enhance thebusiness and investment climate, JICA is working tocatalyze cooperation between both developing country
governments and Japanese private enterprises towards
attainment of the SDGs.
While the Governmentof Japan certainly merits
praise for establishing
the SDGs Promotion
Headquarters, issuing
guidelines for SDG
implementation andlaunching relevant
ministerial-led initiatives,
the manner by which
it intends to carryout monitoring andevaluation of progress

Table 2: Goals that JICA
plays the key role
1. zero hunger
2. health
3. education
4. water/sanitation
5. energy
6. economic growth
7. industry/infrastructure
8. sustainable cities

9. climate actions
on the SDGs remains
an open question.
10. forests/biodiversity
Furthermore, upon
examining the contents ofPrime Minister’s address on January 20, 201716 to theJapanese Diet on priority areas for SDGs achievement,
it becomes clear that although references are madeto several thematic areas which correspond with the2030 Development Agenda — for instance, “Nationbuilding with dynamic engagement of all citizens (i.e.,
working style reforms, empowerment of women)”,“Energy Conservation, Renewable Energy, Climate
Change Countermeasures, and Sound Material-Cycle
Society”, and, “Conservation of Environment, including
Biodiversity, Forests and the Oceans” among them —Taking this into account, it will be necessary to closely
contributions to international development efforts arecarried forward.

Ultimately, however, the formulation of concrete SDGs
targets remains highly advantageous for Japanesebusinesses looking to determine their future course ofaction in the sustainability field: government and related
implementing bodies play a key role in fostering an
enabling environment for these enterprises. Potential
interventions in this regard include organizing businessseminars on SDGs initiatives, preparing guidelines, andoffering incentives and awards for business activities
linked with the attainment of the SDGs.

3.2. Status of SDG-related actions
by non-Japanese companies
Foreign businesses are also actively involved in efforts
to promote the SDGs. For instance, internationalorganizations and initiatives including the UNGC
and UN Environment’s Finance Initiative (UNEPFI), business networks such as WBCSD, as well as
leading global corporations such as Unilever and IKEA
have demonstrated their commitment to advancing
implementation of the SDGs.
Status of business actions on the SDGs at the global level

Led by the UNGC and WBCSD, various initiatives toencourage the promotion of SDG-related actions bycompanies have begun. The UNGC and WBCSB havealso been instrumental in formulating guidelines for
effective advocacy of the SDGs; a forum for sharing
good practices and lessons learned is now also in theprocess of being established.
To date, UNGC’s “SDG Compass” has become widely
utilized by many relevant international stakeholders.
The Compass offers steps from which companies
can generate value by incorporating the SDGs into
operations management (see Figure 3 below for eachstep), illustrating with examples of potential business
opportunities. In addition, the “Local SDG Pioneers
Campaign” 17 was launched under the auspices of

the UNGC as a forum for information sharing andknowledge exchange on SDG-related actions ledby businesses. A key feature of the Campaign is its‌JICA
SDGs position paper, “Toward Achieving Sustainable Development Goals” (8 September 2016), https://www.jica.go.jp/aboutoda/sdgs/
ku57pq00001qfok2-att/JICA_torikumi_e.pdf‌JICA press release, “New establishment of the survey on businesses to address developing country issues (SDGs Business) scheme” (February 2017),
https://www.jica.go.jp/press/2016/20170217_01.html
16‌Prime Minister’s Office, Policy Speech by Prime Minister Shinzo Abe to the 193rd Session of the Diet (20 January 2017), http://japan.kantei.go.jp/97_abe/
statement/201701/1221105_11567.html
17‌UN Global Compact, “Meet the 2016 Local SDG Pioneers”, https://www.unglobalcompact.org/sdgs/sdgpioneers/2016
14

15

7

3. Trends concerning business actions on the SDGs

bestowal of the “Pioneer” award targeting selectedindividuals recognized for their contribution topromoting sustainable business activities around theworld. For instance, at the UNGC-sponsored “Leaders’Summit” held in June 2016, the first 10 recipients of
the award were announced, including a representativeof the company Novozymes. 18 Moreover, the UNGC,
in cooperation with KPMG released the “SDG Industry
Matrix” 19 in 2016; a resource referenced by many

companies, the Matrix provides a compendium of
documented SDG initiatives conducted by industry.
Similar awareness-raising initiatives are also wellrecognized, such as the Business Call to Action20 led

by the United States Council for International Business(USCIB) 21 and a multinational consortium of major

donor organizations.

In addition, many corporate bodies, consulting
companies and think tanks are developing their own
studies as well as sharing relevant data on the SDGs.
Among these, the research report “Better Business,
Better World”, released by the Business and Sustainable
Development Commission22 at the Annual Meeting of

the World Economic Forum in Davos, Switzerland in
January 2017, has attracted international attention.
The report indicates that progress on the SDGs has thepotential to open USD12 trillion of market value forcompanies working in the areas of food and agriculture,urban development, energy and materials, and healthand well-being, whilst creating upwards of 380 million
new jobs by 2030. Moreover, the report recommends
five fields for the design of future business models:“sharing economy”, “lean service”,23 “circular economy”,“big data and artificial intelligence”, and “new social
enterprise models”.24 25

Similarly, along with growing interest in ESG
investments, international financial groups are also
showing interest in the 2030 Development Agenda.
For instance, the Principles for Responsible Investment(PRI) network, which comprises over 1,500 signatoryorganizations, has accumulated capital reserves

equivalent to 60 trillion USD. Working in cooperation
with UNEP-FI and the UNGC, PRI is focusing on thedevelopment of innovative financial products withpotential to leverage public and private investment
towards vital infrastructure projects aligned with
SDG objectives. In October 2016, the World Bank
and BNP Paribas (headquartered in Paris) joined
forces to launch the “SDGs Everyone” campaign,
which includes issuing bonds for promoting corporate
initiatives aimed at achieving the SDGs. 26 Embeddedin the campaign is a financial approach that considers
sponsoring those companies contributing to SDGs
as linked with ESG investments, evaluating boththe potential for short-term profits among thosecompanies receiving funding, as well as mid- to longterm corporate value propositions (i.e., businesses
that demonstrate a clear understanding for promoting
ESG investments, or is attempting to realize ESG
investments).
Set against international trends led by corporategroups and investors, many individual companies havealso begun unrolling their own SDG initiatives. Amongthese, multinational corporations such as Unilever,Ericsson and the Tata Group are widely recognized
as forerunners, linking both internal and SDG targets
with a view towards achieving measureable impacts.
Research also corroborates that the SDGs are
attracting increasing attention from the private sector.
For instance, according to a 2016 survey conducted

UN Global Compact, “Meet the 2016 Local SDG Pioneers”
SDG Industry Matrix: (English) https://www.unglobalcompact.org/library/3111 (Japanese) http://www.ungcjn.org/activities/topics/detail.php?id=204
Business Call to Action, http://www.businesscalltoaction.org/
21
USCIB Business for 2030: Forging a path for Business in the UN 2030 Development Agenda, http://www.businessfor2030.org/business-sdgs/
22‌This commission was announced at the World Economic Forum in January 2016 by Unilever CEO Paul Polman and former UN Deputy Secretary General
Mark Malloch-Brown.
23‌In the service sector, the lean production method is a management method for exhaustive and optimized process management that enables large scale
reductions in work time and inventory quantity. The report asserts that this method can also be utilized for work efficiency improvements in key services,such as healthcare. The lean production method is introduced in “Natural Capitalism: Creating the next Industrial Revolution” (2001) by Paul Hawken, L.
Hunter Lovins and Amory B. Lovins as the core production method of Toyota Motor Corporation.
24‌A business model with a focus on social and environmental impacts. For instance, a Kenyan web coding school (Moringa School) cooperated with Hack
Reactor, a US coding trainer, to develop and identify students with high development capacity and pool future talent by conducting a top-ranking web
development training.
25‌Business and Sustainable Development Commission “Better Business, Better World: The report of the Business & Sustainable Development Commission”(2017), http://report.businesscommission.org/uploads/BetterBiz-BetterWorld.pdf
26‌World Bank “World Bank Launches Financial Instrument to Expand Funding for Sustainable Development Goals” (2017), http://treasury.worldbank.org/
cmd/htm/World-Bank-Launches-Financial-Instrument-to-Expand-Funding-for-Sustainable-Development.html
18
19
20

8

3. Trends concerning business actions on the SDGs

SDG Industry Matrix

The SDG Industry Matrix is a tool used to support business efforts aimed at promoting action on the
SDGs. Organized according to nine industry classifications, including food/beverages/consumer products,
manufacturing, and financial services, among others, the tool highlights cross-cutting climate change
countermeasures, provides case studies on various SDG business initiatives and specifies guidelines for
implementation, based on companies’ existing commitments to UNGC’s 10 principles. A Japanese version(comprising a series of four excerpts in line with the three industry types listed above, and listing broader
priority issues such as climate change) was also released based on a translation jointly conducted by GCNJ
and KPMG AZSA Sustainability.
(Examples)
Food, Beverages, Consumer Goods:⃝ ‌Certification schemes: Forest Stewardship Council (FSC), Programme for theEndorsement of Forest Certification (PEFC), Roundtable on Sustainable Palm
Oil (RSPO), etc.
⃝ ‌Good practice principles: Fair trade, Roundtable on Sustainable Biomaterials(RSB), Rainforest Alliance, etc.
Industrial Manufacturing:⃝ ‌Good practice principles, standards, etc.: Automotive Industry Action Group(AIAG), Electronic Industry Citizenship Coalition (EICC), etc.
⃝ ‌Partnerships, cooperation: Green Industry Platform, Cement Sustainability
Initiative (CSI), etc.
Financial Services:⃝ ‌Good practice principles, initiatives: Equator principles, UNEP FI & the Principles for Sustainable Insurance(PSI), UN-supported Principles for Responsible Investment (PRI), Green Bond Principles, etc.
⃝ ‌Partnerships, collaborations: Banking Environment Initiative, The Investment Leaders Group (ILG), The
Portfolio Decarbonisation Coalition, Global Partnership for Financial Inclusion, etc.

by PricewaterhouseCoopers (PwC) targeting 986
companies around the world 27, “71% of respondents

lower, with a mere 5% of middle managers indicating
an awareness about their companies’ plans to address
the SDGs. In point of contrast, according to the latest
WBCSD report (October 2016) 29, which documents
the status of information disclosure and reportingby companies on the SDGs, 54 out of 163 member
companies cite the SDGs in relevant CSR reports(including integrated reports).

a UNGC research report surveying 5,567 corporate
managers around the world — of the CEOs subject tothe study, 32% of CEOs indicated that they were wellinformed about the SDGs, with 23% stating that they
were in the process of considering measures to address
the Goals. A couple of important points can be noted
here. First, although stated awareness on the SDGs at
the managerial level was limited to 32%, the UNGC
report also discloses that recognition of the SDGs
on the part of other employees remains significantly

Status of SDG-related actions by Japanese companies
According to the abovementioned PwC report,
awareness of the SDGs among Japanese companies
was high overall, with only one company out of 37(2.7%) indicating unfamiliarity with the Goals.30 At the

had begun making preparations to engage on theSDGs, 13% had developed tools to measure the impactof their business on the SDGs, and 41% indicatedtheir intention to incorporate the SDGs into businessstrategies within five years, providing testimony thatmany companies are advancing initiatives”. Further,in line with the “Global Opportunity Report 2016”28 —same time, however, companies which answered thatno measures have yet been taken on SDGs (including
those companies that do not recognize the SDGs)
accounted for nearly 40% of respondents, revealingthat Japanese enterprises have fallen considerably‌
PwC(2016), “Make it your business: Engaging with the Sustainable Development Goals”, https://www.pwc.com/gx/en/sustainability/SDG/SDG%20
Research_FINAL.pdf‌DNV GL AS, UNGC and SUSTAINIA, “Global Opportunity Report 2016” (2016), https://www.globalopportunitynetwork.org/the-2017-global-opportunityreport.pdf
29‌WBCSD, “Reporting Matters Communicating on the Sustainable Development Goals WBCSD 2016 REPORT” (2016), http://www.wbcsd.org/Projects/
Reporting/Resources/Reporting-Matters-201630
PwC (2016)
27

28

9

3. Trends concerning business actions on the SDGs

behind international trends stated above.31 In addition,

the SDGs; ultimately, although SDG references in thesevalue top 100 Japanese companies — further examines

direct mention of the SDGs were largely found in

the latest report32 — looking at the aggregate market

the extent to which the SDGs are cited in CSR reports(including integrated reports), revealing that 38 of 100
companies make explicit reference to the SDGs. In
considering these survey results, it is clear that while
the level of interest in the SDGs among Japanesecompanies remains comparable to WBCSD member
companies, general understanding about the need totake business action on the SDGs remains insufficient.
Such findings are also reflected by a study carriedout by IGES in November 2016,33 wherein a key word
search was conducted in both annual and CSR reportsof several leading domestic companies engaged on

31
32
33

reports significantly increased from 2015 to 2016,
opening remarks and sections introducing CSR activities.
As a result, it remains difficult to state with any certainty
whether SDGs initiatives have been fully mainstreamed
among these Japanese companies.
In conclusion, although there exists a variety of
research results on the level of importance Japanesebusinesses attach to the SDGs, field studies samplinglarge numbers of Japanese companies have yet to be
conducted, resulting in an unclear picture of the statusof private sector actions on the SDGs.

PwC (2016)
Cre-en Incorporated (2016), “Survey results on state of SDG disclosure”, http://www.cre-en.jp/library/column/161027/‌Ikuho Miyazawa, Mizuki Kato and Tetsuya Ishii (2016), “Current state and issues in SDG utilization seen in corporate reports”, http://www.iges.or.jp/jp/
sdgs/sdgs_update/20161121.html

10

4. The status of SDG-related actions by Japanese private companies

4.1. The current state of implementationand leading case studies
What types of initiatives, and to what extent is
the project level implementation among Japanese
corporations that have already begun putting the SDGs
at the core of their business, have been carried out? Inline with the 5 Steps (Figure 3) presented in the “SDG
Compass”, the following sections evaluate the status of
SDG-related actions led by major companies in Japan.
Figure 4 shows the present level of progress of 99
companies and organizations that responded that they
had read the SDG Compass and used it as a reference
for implementation. Over half (54%) are still on Step
1, “Understanding the SDGs”, with 22% on Step 2,“Defining priorities”, and around 10% remaining on Step
3, “Setting goals”, and Step 4, “Integrating”. Next is alook at the level of awareness among corporations on
the SDGs and the characteristics of different initiatives
according to each step. Moreover, selected casestudies of companies are introduced as appropriate forillustrating the various implementation methods used.

Q: (To those who read and refer to SDG Compass)
Which step indicates current progress?
4％
9％

Step 01
Understanding the SDGs
Step 02
Deﬁning priorities
Step 03
Setting goals
Step 04
Integrating
Step 05
Reporting and communicating

11％
54％
22％

n=99

Figure 4: Progress on SDG Compass (Responses only fromcompanies/organizations that refer to SDG Compass)

4.1.1. Step 1:
Understanding the SDGs—why SDGs?
When the awareness level on SDGs is compared overtime, the response, “mainly established among those incharge of CSR”, shows a striking increase from 61% to84% (Figure 5).
These figures arethought to be aconsequence ofhileadvancing initiatives
in the CSR sector
the awarenessfollowing adoption
level of CSR staffof SDGs at the UN
has reached 84%,
General Assemblyin September
the awareness of2015. Further,
top management
the awarenesslevel among top
is still only 28%.
management
increased by 8%.
Additionally, as there were a few responses for“established among stakeholders including affiliatedcompanies” in 2016, this shows that the target for
raising awareness is more far-reaching than when firstexamined. Meanwhile, low awareness (4-5%) among
middle managers about the SDGs implies a major issue asconvincing these managers of significance of the SDGs isoften the first obstacle faced by corporate CSR staff.

W

Figure 3: Five steps shown in the SDG Compass34
Source: “SDG Compass” English version (2015), p. 5

34

11

SDG Compass, p.5, http://sdgcompass.org/wp-content/uploads/2015/12/019104_SDG_Compass_Guide_2015.pdf

4. The status of SDG-related actions by Japanese private companies

While expectations for the role of business in delivering
on SDGs are high, it is pertinent to examine the actual
perception of corporations on SDGs. Figure 6 shows theresults of GCNJ member and non-member responses.35

GCNJ members most often replied (79%) that they
perceive SDGs implementation as “improvement ofcorporate value related to sustainability”, followed by“stronger relationships with stakeholders” (57%) and “newbusiness opportunities” (57%). Compared to responses
of non-members, GCNJ members are companies andorganizations committed to the UN Global Compact’s 10
Principles. The efforts of GCNJ in carrying out promotional
activities are also a factor, and the reality that many
corporations consider the SDGs linked to improving
corporate value is also evident. Considering that inmany cases CSR was discussed from the view of risk
management, it seems apparent that companies in Japanconsider this as an incentive to engage on the SDGs.

Q: Please select the applicable situation about SDGs awareness at
your company/organization (multiple choice).
61％

Mainly widespreadamong CSR staﬀ

84％
20％

Widespread among
top management

28％

Widespread among
middle managers

4％
5％

Widespread among
stakeholders such asaﬃliated companies

2015

3％

2016
2015：n=134
2016：n=193

15％

Not sure

12％

Figure 5: Awareness in the organization (2015 vs. 2016)
Q: How are SDGs recognized in your company/organization?
Important forstabilizing society
and markets

49％
29％

A new business
opportunity

57％
26％

Important for improving
corporate value
related to sustainability

79％
58％

Important forstrengthening
relationships
with stakeholders

Others

Not important

57％
41％
6％
2％
4％
6％

GCNJ members
Non-GCNJ members
GCNJ members: n=400
Non-GCNJ members: n=158

Figure 6: Recognition of SDGs

35

4.1.2. Step 2:
Defining priorities—mapping SDGs withexisting corporate missions and business
Managers and CSR staff that understand the SDGs haveresolved to implement them, and as a next step carryout mapping to look at consistency or gaps between
existing corporate missions /business objectives andthe 17 goals. Most corporations do not perceive theSDGs as entirely new concepts, rather approachingthem as international criteria used to support current
programs and practices.
The SDGs, madeup of 17 goals and
169 targets, aim toaddress an extremely
broad range ofsocial, economic andenvironmental issues.

The top 3

priorities ofJapanesecompanies are
the climatechange, energy,
and sustainableconsumption andproduction (SCP)
goals.

Business action on the
SDGs is becoming evermore necessary. As of
September 2016, mostJapanese companies
cited climate change(Goal 13), energy (Goal7) and sustainableconsumption andproduction (Goal 12)— goals closely related to Japan’s domestic issues —as primary priority issues. Goal 13 (Climate Action),including value chains, was regarded as 5th priority in2015, but was chosen as the number one influential
issue in 2016 (Table 3). The official adoption of theParis Agreement at COP21 in December following the2015 survey is thought to have had a major impact
with regard to this response. Further, the rise of Goal
8 (Decent Work and Economic growth) to 5 th place

exhibits a change in awareness on the corporate side
communicated in the recent “Work-style reforms” putforth by the government and private sector.

Table 4 shows the top three goals said to have thegreatest impact for the top 10 industry sectors with alarge number of responses. Of interest is the fact thatthe number one goal, Goal 13, did not necessarily
make it into the top three goals by industry sector. For
instance, the top goal for the electronics industry was
Goal 3 (good health and well-being), and the top goal
for the construction industry was Goal 11 (sustainable
cities and communities), with the distinctive features‌Fordata on GCNJ non-members, the author carried out a comparison based on “Research report on initiatives to address societal issues (SDGs, etc.) andapproaches to partnerships among international organizations, government and the industrial sector”, a compilation the results of a questionnaire survey
carried out by the Business Policy Forum, Japan, a cooperating group.

124. The status of SDG-related actions by Japanese private companiesof each industry appearing due to differences among
businesses. As outlined in Step 2 of the SDG Compass,

However, it should be noted that important issues suchare identifying the sphere of influence of SDG-relatedrisks and opportunities throughout the value chain, thendefining priority issues for engagement on the SDGs inline with existing business practices.

Justice), and also Goal 17 (Partnerships), were not given
as priority issues by companies targeted in the survey.

“Defining priorities”, it appears that many companies

as Goal 14 (Conservation of Marine Resources), Goal

15 (Conservation of Biodiversity), Goal 16 (Peace andTable 3: Goals with the greatest economic, environmental and social impact (multiple choice)
Q: Please explain the impacts of your company (including value chain) /organization’s business on the economic,
environmental and social aspects for each SDG.
(The right-handcolumn indicates thenumber of responses)

2015

2016

Rank

SDG

Number of
responses

SDG

Number of
responses

1stGoal 961

Goal 1366

2ndGoal 354

Goal 762

3rdGoal 1253

Goal 1260

4thGoal 751

Goal 952

5thGoal 1344

Goal 849

Table 4: Goals with the greatest economic, environmental and social impact in the top 10 industries(multiple choice)Electronics
TOP
manufacturer
10(23)Serviceindustry(17)

Chemical(13)

Wholesaleand retail
trade
(11)

Other
products(8)

Finance / Machinery
Insurance manufacturers
(8)
(7)

Food
(6)

Information
Glass
and
and
Construction
earth
industry telecommunications
products
(5)
(5)
(5)

1st Goal

3 (10)9 (6)

13 (9)

7 (5)

8 (4)

4 (4)

9 (5)

6 (3)

11 (5)3 (3)

13 (3)

2

Goal

7 (9)

12 (6)

12 (8)

8 (5)

7 (3)

5 (4)

7 (4)

3 (2)

13 (5)

4 (3)

6 (2)

3rd Goal

9 (9)

3 (5)

3 (7)

9 (5)

12 (3)

7 (4)

3 (3)

12 (2)

7 (4)

7 (3)

7 (2)

nd

Note: ‌The numbers of ( ) are the number of responses. In case of the same number of responses, they are listed in order of SDG goals. The
distribution of industries follows the GCNJ definition.

Case Study 1“Water and sanitation” business as its main issue– Case of LIXIL Corporation
LIXIL Corporation is promoting its business by incorporating global
perspectives such as human rights and supply chain management, andbearing in mind the intention of new management and the influenceof overseas consolidated companies that emerged from businessmerger integration in 2011. LIXIL focuses on its priority issue “Waterand Sanitation”, which also is its core business, and has established a
dedicated business unit “Social Sanitation initiatives” to commercialize
an existing social project, “SATO (Safe Toilet)”. SATO is a simplified
water-saving toilet that uses a small amount of water to open andclose the valve of the drain port. By commercializing SATO, LIXIL is
promoting this business as an SDGs business rather than a charity.

13

Working on the commercialization of SATO

4. The status of SDG-related actions by Japanese private companies

4.1.3. Step 3:
Setting goals—determining the relevanceto the SDGs and selection of KPIs
Mapping is carried out on the relevance to existing
businesses, and as soon as the company’s materiality
is identified, goal setting becomes the basis for moving
through the PDCA (Plan-Do-Check-Act) cycle. Figure
7 shows the level by which SDGs are incorporated
into business plans. While companies integrating theSDGs into short-term (annual, 1-2 years) and mid-term(3-5 years) plans have reached a certain level of 26%
and 33% respectively, plans for initiatives up to 2030
or over the long-term (5-10 years) remained under
10%. Further, 26% of companies provided “Not sure”
responses, revealing that there is still great variancewhen it comes to progress on incorporation of theSDGs into business plans and determination of concretebusiness goals within these plans. However, a portionof leading Japanese companies have already linked
company priority business with individual SDG goals

and are deliberating on the establishment of KPI (keyperformance indicators). Some companies have plansto release results in the near future, or have alreadyreleased them publicly within their CSR reports.

Q: What plans do you have for future SDG-related actions?

10％

5％

26％

There are plans for 2030
Not sure
There are short-term plans(annually, 1-2 years)

33％

26％

There are mid-term plans(3-5 years)
There are long-term plans(5-10 years)

n=147

Figure 7: Status of SDG-related actions under
mid-to-long term plan (multiple choice)Case Study 2

Connecting KPI with SDGs
- Case of Sompo Holdings, Inc.36
In response to the international trends such as the adoption of theSDGs and the Paris Agreement, Sompo Holdings, Inc. redefined “GroupCSR Materiality” in April 2016 based on the following four steps.
Step 1: Analysis based on various guidelines
Step 2: Dialogue with multi-stakeholders

Lectures on SDGs at Group’s Council for
CSR Promotion

Step 3: Engagement within Group companies
Step 4: Identification on materiality and promotion of actions
Sompo Holdings, Inc. developed its Group’s CSR-KPIs in line withnew materiality such as disaster preparedness, health and welfare,global environmental issues, empowering community and society, andsupporting diversity and inclusion, to promote actions through PDCASDGs Seminar
cycle and further improve performance. For example, CSR-KPI for theratio of female employees in managerial positions was set for FY2016 with a target of 30% by the end of
FY2020. Moreover, the Group’s new Medium-term Management Plan was launched in FY2016 to transform
its business structure to provide services under a “security, health, and wellbeing”.

36

Sompo Holdings CSR Communication Report 2016 http://www.sompo-hd.com/~/media/hd/en/files/csr/communications/pdf/2016/e_report2016.pdf

14

4. The status of SDG-related actions by Japanese private companies

4.1.4. Step 4:Integrating—spreading and promoting
SDGs in companies
In order to encourage action on the SDGs, the levelof implementation among all companies is illustrated
in Figure 8. It is evident that first, persons in chargeof promoting the SDGs carry out initiatives aimed
at diffusing knowledge throughout the company,
such as via trainings and company newsletters. In
addition, importance is attached to messages fromtop management. Meanwhile, it is notable that onlya mere 1% of companies have launched a dedicatedunit to engage in SDGs, while 20% of companies are
not engaged at all. As can be read from Figure 8, a
distinguishing characteristic of Japanese companies
is that SDGs are first initiated and implemented byrelevant persons in charge within the company acrossthe organization through a so-called bottom-up
approach. It is only when awareness is raised among
the executive-level and implemented straight fromthe top revolving around the PDCA cycle, that SDGs
disseminate to other members of staff, such as middle
managers, as well as external stakeholders, including
affiliated companies.
Accordingly, how are the leading companies targeted
for interviews promoting SDGs in their companies andwhat sort of actions do they carry out to integrate theminto management? Actions can be divided into two
types, top-down and bottom-up, based on distinguishingfeatures. Further, partnerships are indispensable for
implementation.
Q: What kind of activities are you doing to improve awareness of
SDGs within your company/organization?

20％

Training(including e-Learning)

16％

Dissemination by website

16％

13％

Dissemination bycorporate magazine(paper)
Top message

1％

17％

17％

Establishment ofdedicated unit
Others (in speciﬁc)Nothing in particular

n=229

Figure 8: Status of efforts to promote SDGs in yourcompany/organization (multiple choice)

15

Table 5: Features of efforts for in-house promotion of SDGs
ApproachTop-down
Approach

Bottom-up
ApproachFeatures⃝‌Presence of leaders highly
receptive to international trends(mainly Chief Sustainability Officers)⃝‌Disseminating
commitment to
SDGs by top management itself⃝‌Internal awareness on SDGs
under the leadership of CSR or
environmental department⃝‌Stronginspiration by business staff
in the field of developing countries

1) Top-down Approach:In the background to the launch of forerunning
initiatives by many leading companies is an effective
top-down approach. Of the companies targeted forinterviews, there were several examples of companies
with a deep understanding and strong commitments
by top management. Further, SDGs were not used
as a mere checklist tool in existing business. Rather,reconfirming corporate missions utilizing SDGs led togaining understanding from top management.
Another important factor is the existence of leaders
who are highly receptive to international trends. A
trend seen in companies such as Saraya Co., Ltd. andAjinomoto Co. Inc., with existing strong commitments atthe top for implementing MDG-related initiatives, wasthat business and managerial experience overseas on
the part of company leaders or CSR directors comprised
an important factor. In many cases, international trends
emphasizing sustainability as a business opportunity
has led to the advancement of initiatives in their own
companies. Regarding trends in management, there wasa tendency for family owned private companies to create
systems relatively easily with active enthusiasm at the
top. However, in non-family owned private companies,
the larger the corporation, the greater the tendency for
SDG implementation to be swayed according to thereceptivity of directors in charge of various international
trends. As is made clear from the case studies on Saraya
Co., Ltd. and the later-mentioned Sumitomo Chemical
Company Ltd., communication on commitments amongcorporate leaders with investors and with employees,
especially in their own words, is also enormously
important. In addition, many companies such as
Sompo Holdings, Inc., have held “Group CSR promotion
headquarters” meetings, spanning group companies
and SDGs study sessions targeting all executives andabove, as a means to enhance understanding among
top management. In so doing, they have used groupnewsletters and existing portal sites to enable SDGs and4. The status of SDG-related actions by Japanese private companies

company activities to reach employees both in Japan

participating in international conferences as well as

top management communicates thoughts gained fromto the company’s business.

and overseas. Saraya Co., Ltd. has a practice whereby

information about international trends that are relevant

Case Study 3

Accelerating Actions on Sustainability - Case of OMRON Corporation
In response to growing global trends to create sustainable society, Omron has been strengthening and promoting
company-wide sustainability approach under the initiative of Sustainability Office. Omron decided to include SDGs
in its Medium-term Management Plan and also clarified social issues to be focused through its core business suchas healthcare businesses, and industrial automation business. By utilizing SDGs as an effective communication
tool with society, Omron is emphasizing our mission of solving global social issues through business. At the sametime, it clarified important issues to be expected by stakeholders and tries to strengthen its management baseby developing systems to
implement PDCA-cycle
in a proactive manner.
Omron aims to improve
its sustainable company
value by correlating its
company-wide actions onsustainability to SDGs and
Healthcare BusinessIndustrial Automation Businessdisseminating strategically(Supporting innovation for manufacturing(Globally providing accurate and easy-to-use
which contributes globally to producthome medical equipment, health care service, andto stakeholders.
examination equipment for medical institutions)

quality, safety and the environment)

Case Study 4

SDGs as a business opportunity! – Case of Saraya Co., Ltd.
As a new business opportunity, Saraya Co., Ltd. is utilizing the SDGs for its
marketing. SARAYA has been working on solving social issues through its corebusiness since the company started its actions towards achieving the MDGs.
SARAYA is working on the SDGs by utilizing the knowledge and networks gained
from such experiences. Specifically, SARAYA is applying the SDGs as a marketing
tool (cause marketing*) by linking its products, such as Yashinomi Detergent,
with social issues (forest conservation, hygiene improvement), which leads to thebranding of products and corporate as “hygiene SARAYA”. As a result, this has
led to increased sales of main products and the acquisition of a high external
evaluation of the investor relations (IR) (it gained the environmental rating twicefrom the Development Bank of Japan Inc. and SMBC). Meanwhile, another factor
behind the company’s efforts was risk management against the boycott against
palm oil and forest conservation which received strong public opinion.

President Yusuke Saraya

Uganda Project*Cause marketing: A marketing method which aims to promote product/service sales, and improve product brands and corporate image.

2) Bottom-up Approach:
There are many examples of bottom-up approaches
within companies aimed at driving broader actions
and initiatives. These include the creation of systems
whereby employees share ideas on linking business andthe SDGs, and vote on ideas, as well as referencing theSDGs in knowledge questions for company promotion

examinations. With these approaches, enhancing theownership and enthusiasm of each and every employee
is key to promoting diffusion within a company. Further,
there are examples of improved understanding on SDGs
among top management and employees based on thestrong voice of those in charge on site in developing
countries.

164. The status of SDG-related actions by Japanese private companies

Case Study 5

Everyone’s SDGs proposals became a tree – Case of Sumitomo Chemical Co., Ltd.37
Sumitomo Chemical initiated two projects in an effort to achieve the SDGs, to actively
contribute as a “Solution Provider” using the power of chemistry to solve various issues forthe creation of a sustainable society. The first is to visualize the contribution to sustainability
and to improve awareness among employees. Sumitomo Chemical established the Sumika
Sustainable Solutions Identification Committee within the company, which certifies theCompany's products and technologies that contribute to the SDGs, such as global warming
measures or environmental impact reduction, as “Sumika Sustainable Solutions”. It also
promotes the development and dissemination of these certified products. For example,
the heat-resistant separator for lithium-ion secondary battery “PERVIO®” was certified as a
product corresponding to “SDG goal 7 (energy) and goal 13 (climate change)”.

Sumika Sustainable Solutions
certified product: the heatresistant separator for
lithium-ion secondary battery

The second is the global project “Our Sustainable Tree”. This was an initiative whereby the
executives and employees of all group companies think about “What they can do in theirown work and personal lives to realize a society with hope for the future” and share theirideas via a dedicated website. Sumitomo Chemical asked each person to select one themefrom the 17 SDG goals and submit it, from June to October 2016, resulting in 6,005 posts.
This meant that each employee brought up their idea with management and promoted
their own thinking, thereby strengthening ownership of these products among employees.

Case Study 6

Local Action Opens Eyes - Case of ITOCHU Corporation’s Organic Coffee38
ITOCHU’s local subsidiary in charge of coffee business in Central America has been making efforts towardboth attaining autonomy for farmers and producing high quality coffee by combining measures such as
opening an exhibition farm in company-owned land and providing guidance on farming methods, supporting
acquisition of Rainforest Alliance coffee farm certification, purchasing premium beans that meet standards,
and distributing organic fertilizers. As a part of this initiative, the local subsidiary President consulted aJapanese person who had implemented community-based activities on how to support farmers, and it
was found that she had had an activity plan for livelihood improvement together with farmers. Then, thePresident proposed cooperation to makeher dream come true and asked theJapanese woman to join the company
to be in charge of this plan. In this way, it
can be said that community-based humanresource commitment is an importantfactor to extract challenges and obtainconsent from the management.
Coffee Business in Central America

37
38

17

Sumitomo Chemical CSR Report 2016 https://www.sumitomo-chem.co.jp/english/csr/report/docs/csr_report_e2016.pdf
ITOCHU Corporation Documentary Report Project on Supply Chains Vol.2 Coffee from Central America
https://www.itochu.co.jp/en/csr/supply_chain/reportage/back_number2.html

4. The status of SDG-related actions by Japanese private companies

Engaging in partnerships

SDG Compass introduces a survey conducted in 2014

targeting 38,000 corporate executives, managers

and opinion leaders. Of these, 90% responded that
their corporation could not effectively respond tosustainability issues independently.39

A

While some havepointed out thatside fromcherry-picking ofgovernment,
corporate SDG
initiatives is taking
the proportion
place, thereof customers,
are increasing
suppliers andexpectations forcooperation withbuyers andcorporate partners.
NGOs/NPOs as
Figure 9 shows
the partners thatimportant partner
corporations
is rapidly
consider to be
increasing. This
important. A majordifference from theshows that real
previous survey isactions havethat while responses
on the “company
begun on SDGs.
itself” engaging ininitiatives decreased
considerably, there was a rapid increase in responses on“customers”, “suppliers and buyers”, “consumers”, and“stockholders/investors”. Further, the ratio of responses
on “NGOs/NPOs” remained high. The context for
stockholders and investors to appear for the first time
this fiscal year is the fact that ESG responsible businesspractices have been attracting attention. Additionally, it
could be interpreted as a heartfelt appeal to stockholders
and investors from CSR departments that are aspiring
to improve corporate value by integrating CSR andmanagement. Responses on “customers” and “suppliers
and buyers” show that increasing emphasis is placed onvalue chain responses that take the life cycles of products
and services into consideration. Meanwhile, responses
confirm that national and local governments, as well as
public institutions remain the most important partners andthat expectations toward governments are even higher.
Japanese companies with increasing overseas expansion
are actively promoting cooperation with multiple
stakeholders including companies within the value chain,industry leaders, as well as government and civil society
organizations. Of the companies that participated ininterviews, many are actively advancing initiatives in39
40

developing countries, including Ajinomoto Co., Inc., Saraya
Co., Ltd., Sysmex Corporation and LIXIL Corporation,and they have received support from international aid

organizations such as JICA private sector support, BOP(Bottom of the Pyramid) business40 support and theUnited States Agency for International Development(USAID). Although the amount is not large, receiving
support from external organizations is considered tobe linked to improving projects and raising corporate
value. For corporations, partnerships with NGOs andinternational aid organizations that have expertise on CSR,
are very valuable. On the other hand, for NGOs in Japan,
where the culture of donating is not well rooted in society,partnerships with companies are essential both for raisingawareness as well as from a financial standpoint. JICA,
in the midst of other efforts in society toward realizing
the SDGs, considers partnerships with private enterprises
to be essential based on the recognition that they canpotentially lead to the improved quality of JICA itself and/or government-provided development assistance (suchas ODA). As such JICA has launched a private sector
support scheme using the SDGs as a common language
for action. Further, companies in the actual projectplanning stage have obtained introductions both fromJICA and various NGOs which have played a bridging
role, especially to local consulting companies and otheractors well-respected in local networks. In this mannerpartnerships with a variety of stakeholders can support a
project’s success both by opening further opportunities
and building linkages with concerned stakeholders.
Q: Who do you think are important partners for promoting SDGs
in your company/organization? (multiple choice)
Only own company

34％

6％

34％

Customer
Consumer

60％

33％

Shareholders/ Investors

30％
37％

Suppliers and buyers
Other companies
in the same industry

22％

Other companies
in other industries

14％

56％

29％

23％

Government / Local governments /Public institutions (including JICA etc.)

66％
62％
51％
54％

NGO / NPO
12％
17％

Academia
Other (in speciﬁc)Nothing in particular

5％
7％
4％

37％

2015
2016
2015：n=420
2016：n=555

Figure 9: Important partners for promoting SDGs

SDG Compass, p.24.
‌Concept advocated by Professor Prahalad of the University of Michigan in the US whereby population distribution by global income groups are shown asa pyramid, and business pursued targeting the lowest level.

184. The status of SDG-related actions by Japanese private companies

Case Study 7

Effective engagement in partnership – Case of AEON CO., LTD.41
Aeon is utilizing several internationally agreed certification systems operated by the Marine StewardshipCouncil (MSC), the Aquaculture Stewardship Council (ASC) and the Forest Stewardship Council (FSC). Aeon
is making best use of these systems, giving more corporate value to its products.
In addition, Aeon thinks that the most important partner is the customer,
so the company is trying to build new relationships with its customers
by simply communicating the activities that Aeon has been working on.
Aeon believes that this will lead to true CSV (Creating Shared Value),and so is promoting partnership “with customers”. One example is the“Aeon Cheers Club” with activities as a human resource development for
the next generation, providing opportunities for environmental learningand experiences for children ranging from first to ninth-grade students.
In this activity, children living near Aeon stores come together about
once a month to participate in various activities related to theenvironment with the support of store employees. Based on the
globalization of business as the group grows, Aeon will need tocontribute to the realization of a sustainable society not only inJapan but also across Asia. With this in mind, Aeon believes that itis necessary to engage in these activities particularly for customers
in Asia, and prioritize the activities through dialogues
TOPVALU Green Eye
MSC certified salt salmon
and collaborations with a diverse range of stakeholders.

4.1.5. Step 5:
Reporting and communicating
One development that is increasingly becoming
mainstream is disclosure of not only non-financial
activities related to sustainability, but also of financial
information, such as trends in global ESG investments andrecommendations on the release of information regarding
climate change measures by the TCFD (December2016). Accordingly, the SDG Compass states, “Aligning
your company’s reporting and communication with theSDGs means both discussing performance in the context
of the expectations set by the SDGs, and also aligning
disclosures with the language of the SDGs to ensure acommon dialogue among stakeholders”. In this context,aligning information disclosure with SDGs is a key element
on two fronts, investor relations and dialogue with all
types of stakeholders including customers.

41

19

Aeon Cheers Club activities

An example is Sompo Holdings, Inc., that fully utilized
SDG Compass in its CSR Communication Report. Thiseffectively demonstrated the internal sequence of events ina review of CSR priority issues, and followed the Compass
guidelines for action, as well as formulation of CSR-KPI.
Likewise, ITO EN, LTD., in addition to its Integrated Report,
comprehensively shows on every page of its Sustainability
Report how companies can put the SDGs to use. Basedon the universally applicable nature (universality) of SDGs
that include both domestic and international arenas,
this report, which effectively displays the relevance of
SDGs to business, could be used as a reference forother companies when tackling domestic issues andstrengthening overseas expansion in the future. Further,
ITO EN, LTD., has communicated both inside and outside
the company, introducing ranking systems such as the
Fortune magazine ranking and external reviews, aiming to
improve corporate value, improve employee motivation
and also acquire necessary human resources.

Aeon Environmental and Social Report 2016 https://www.aeon.info/export/sites/default/common/images/en/environment/report/e_2016pdf/16_data_en_a4.pdf

4. The status of SDG-related actions by Japanese private companies

Case Study 8

Reinforcement of CSR/CSV corporate strategy by referencing SDGs
– Case of ITO EN, LTD.42
ITO EN has been looking at a wide range of international standards such as SDGs, ISO 26000, GRI and CSV
concepts, and then explaining in simple terms how to conduct CSR/CSV corporate strategy in a new eraof sustainability. First of all, SDG targets were tied to the seven core subjects of ISO26000, and they wereconsolidated in relation to GRI.
After showing how to contribute to SDGs in an integrated report, ITO
EN published a sustainability report dedicated to SDGs as a separate
volume (including an English version). This report is particularly interesting
as it covers the relation between SDGs and business, and also between
SDGs and CSR/CSV activity system, by mapping SDGs to each businessin a consistent value chain following the company's characteristic “fromtea plantation to used tea leaves”. By effectively showing the relevance
Kitsuki Tea Garden, Oita
between domestic business and SDGs, both the domestic and international
aspects of the SDGs are reflected accurately.
It is believed that all companies can refer tothis report regardless of the overseas businessratio. In addition, this sustainability reportintroduces external evaluations including being
ranked number 18 in the Fortune magazine of
September 1, 2016, “The Fortune 2016 Change
The World List”. In addition, organizing thecontents taking ESG into consideration is linked
Value chain
to responding to ESG evaluation of the growing
number of investors.
In this way, ITO EN is promoting its CSR/CSV corporate strategy referring to SDGs, and with this as the main
axis, the company focuses on activities to create shared values withsociety using its core business. So this also features “strengthening
the power of dissemination” not only by practicing CSV but also
disseminating such efforts both in Japan and abroad. Strengthening
the power of dissemination leads to corporate value improvement,
corporate branding, employee motivation improvement, and evenexcellent talent acquisition. In the interview, the company's efforts
were explained as follows; “For ease of understanding, ITO EN’s
efforts can be based on the Omi merchant's business sprit of “Sampo
yoshi (“all good in three directions” with the three directions in thisphilosophy referring to the trinity comprising the seller, the buyer,
and the society)”. However, it is difficult to try and use the Omi
merchant’s business philosophy of “Intoku-zenji” when explaining
this internationally, so the best way to understand how thecompany disseminates its work is to call it a “disseminating-type ofSampo yoshi””.

42

ITO EN Group’s CSR/CSV
and SDGs

ITO EN Sustainability Report 2016 http://www.itoen.co.jp/eng/csr/pdf/2016/cr/all.pdf

20

4. The status of SDG-related actions by Japanese private companies

Case Study 9

Strengthening communications with SDGs as
a common language– Case of Ajinomoto CO., Inc.
The Ajinomoto Group works on SDGs by taking advantage
of its experience in achieving the MDGs. Since 2009, theAjinomoto Group has contributed to three social issues
through business. Linking its efforts to the SDGs, theAjinomoto Group uses SDGs as a common language withsociety to promote its work. Furthermore, at the center of
Health diagnosis in Plan area
its medium-term management plan is the Ajinomoto Group
Creating Shared Value (ASV) which was set up to promote the social
aspects of SDGs throughout the entire value chain from suppliers to
consumers. SDGs can be utilized as a checklist for risk management,
leading to improved corporate value, thereby improving the company’scompetitiveness and leading to excellent talent acquisition.

Ghana project

The interviewee explained “While European and American competitors
are improving the corporate value through collaboration with the United
Nations and efforts on sustainability, SDGs are goals to work on in order
Signed a Memorandum ofUnderstanding with USAID and JICA
to maintain competitiveness”. In addition, Ajinomoto’s work on SDGs
was the only Japanese example included in the SDG Industry Matrix “Food, Beverage & Consumer Goods”.

4.2. Implementation challenges
faced by Japanese companies

63

Although companies
have strengthened% ofinitiatives towardrealizing the SDGs, aJapanesenumber of issues stillcompanies
remain. Figure 10 reveals
cited “societal
the results of a survey on
various issues faced byawareness hascompanies in promoting
not risen” as
SDG related initiatives.
For example, “social
an issue faced.
awareness has not
risen” is an issue facedby 63% of Japanese companies. Likewise, while a low
level of understanding within the company stands as achallenge, new responses were also observed, such as,“lack of resources” and “weak government guidelines
and involvement”. The former is the reverse side ofconsidering specific measures or actions, and the lattershows the limits of companies acting alone.
Even the advanced companies in SDGs that weretargeted for interviews often noted the problem ofcommunicating the significance of SDGs and the21

Q: What are the main challenges in working on SDGs?
(multiple choice)
Low social recognition

63％

Low understanding
inside a company

62％
66％

Undeﬁned method forinternal deployment

46％

Unclear evaluation methods
such as quantitative indicators

49％
52％

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

33％

Unclear government policy,
lack of government’s involvement

Others (in speciﬁc)

66％

26％
31％

Weak top commitment

Appropriate partners
cannot be found out

70％

30％
10％
10％
7％
5％

2015
2016
2015：n=362
2016：n=521

Figure 10: Major challenges in promoting SDGs
difficulty that top management faces in explaining toemployees via internal newsletters or other means. A
primary factor mentioned was that SDGs are seen as
an extension of MDGs and are often communicated in
the context of international development. Thus, the factthat they are international goals that include addressing
local issues in Japan is not accurately communicated.
Further, many shared the opinion that companies do not4. The status of SDG-related actions by Japanese private companies

know how to contribute to the Japanese government’s

SDGs at core business, the “core business type”, 2)

to see visualization of an implementation scheme that

reduction and risk management within the company,

Japanese companies can participate in and guidelines
to boost corporate actions. Accordingly, CSR staff
could more easily explain the significance and merits ofengaging in SDGs to top management and employees.
Another point that emerged was the existence ofdomestic local gaps in information. Last year’s survey
indicated that commitment at the top continued to
be key in promotion of SDGs, but this year’s survey
brought up another interesting point. Even among
GCNJ members considered to have understandingof top management and relatively high motivation topromote the SDGs, in actuality gaps in implementation
also exist. Figure 11 shows the results of a comparisonof the state of implementation going forward, divided
into capital regions (Tokyo, Kanagawa, Saitama andChiba) and outside regions. While many companies(37%) in the capital region replied to have “mid-termplans”, a striking 35% in other regions provided “Notsure” responses. This shows a time lag in actions toincorporate SDGs into mid-term corporate plans inareas outside the capital area. At present, numerous
seminars and symposiums related to SDGs are held
mainly in Tokyo, pointing to a large gap in the amountof information. Ideally, future awareness on SDGs will
be raised and mechanisms to facilitate and forums tostimulate actions will be created.
Q: Please explain about your future plan related to SDGs.
Metropolitan
area
Nonmetropolitan
area

8％

22％

35％

25％

37％

27％

There are plans for 2030

23％

8％

15％

Not sure

There are short-term plans (annually, 1-2 years)
There are mid-term plans (3-5 years)
There are long-term plans (5-10 years)
Metropolitan area: n=107
Non-metropolitan area: n=40

Figure11: Future SDGs efforts(Metropolitan area vs. non-metropolitan area)
Thus, it is clear that challenges faced by Japanesecompanies in the process of implementing SDGs
are diverse, some originating internally and someoriginating in society as a whole. Further, initiatives
by leading non-Japanese companies and Japanesecompanies can be divided into three types according
to their distinguishing features: 1) aiming to put
43

implementing SDGs from the perspective of costthe “risk management, cost reduction type”, and 3)
promoting enhanced communication in Japan andoverseas utilizing SDGs as a communication tool, the“reputation focus type”. 43 Figure 12 organizes thedistinguishing features of initiatives based on differencesin the initiatives of leading non-Japanese companies
and Japanese companies, taking into consideration
the level of enthusiasm (horizontal axis) in goal-setting
toward sustainable development targeted by SDGs andtraditional business goals (vertical axis) such as pursuitof profit.
Core business typeProﬁt pursuit

Guidelines for Implementation, and that they would like

Reputation
focus type
Japanese company
A

Risk management andCost reduction type

Advancedwestern company
Advanced
Japanese company

Japanese company
B

Japanese company
C
Ambition of goal
setting

Figure 12: Image of SDG-related actions by Japaneseand non-Japanese companies
Source: ‌Author’s revision based on “Reinforcement of businessactions to realize a sustainable society: Challenges andSolutions” (2016)

For instance, initiatives that position SDGs in thebranding of main products aimed at improving

corporate values are designated as “core businesstype”, while initiatives that link SDGs to existing businessand select priority issues are “risk management, cost
reduction type”. Likewise, initiatives that actively
incorporate SDGs into CSR and other reports andengage in strategic communication are designatedas “reputation focus type”. From the classifications
and designations in Figure 12, it is evident that mostJapanese companies are designated as “reputation
focus” and “risk management, cost reduction” types,
while a portion of leading companies have begun
the shift to the “core business” type that treats SDGs
as core business. Moreover, it should be noted thatcompany initiatives do not evolve unilaterally from
“reputation focus” to the “core business” type. Rather,approaches vary and depending on company scale
and industry type, in some cases companies focus ona major product as a way of directly engaging in corebusiness activities related to the SDGs. In other cases,

See classifications in IGES (2016) “Enhancing business action to realise sustainable societies: challenges and solutions”

22

4. The status of SDG-related actions by Japanese private companies

companies advance in a bottom-up fashion from “riskon Sysmex Corporation and Takeda Pharmaceutical

type to the “core business” type. So, how do Japanese

overcoming such issues and engaging in SDG

management, cost reduction” or “reputation focus”

companies overcome the issues they face and shift
towards a core business type model? Case studies

Company Limited below contain hints on effectively
management as a core business objective.

Case Study 10

Effectively Connecting its Business with SDGs - Case of Sysmex Corporation
Sysmex has been putting SDGs at the core of business rather than as part of CSR since SDG Goal 3 (to ensure
healthy lives and promote well-being for all at all ages) aligns with its business. Sysmex has a mission “Shaping
the advancement of healthcare”. as stated in the “Sysmex Way”, Sysmex Group’s corporate philosophy, whichsmoothly links to SDGs as well as the Ten Principles of the UN Global Compact. Therefore, Sysmex has beenpromoting actions by effectively connecting its business with these international targets. Sysmex has been
actively expanding overseas with overseas sales of more than 80%. Specifically, Sysmex focuses on medical
infrastructure development in emerging countries with economic development. In 2016, Sysmex Proposal for
Laboratory Quality Control Support Projectin the Republic of Namibia was adopted
as JICA’s Collaboration Program with thePrivate Sector for Disseminating JapaneseTechnology. At the survey hearing, it wasemphasized that Sysmex will adopt a
consistent stance to contribute to society
through business development.
Support Project in Namibia

Case Study 11

Towards Creating and Sustaining Value through CSR- Case of Takeda Pharmaceutical Company Limited
Takeda focuses on materiality in line with its strategic roadmap, whichsets out steps for realizing Takeda’s vision for sustainable growth, andformulated a Strategic Roadmap KPI (FY2016) for achieving the roadmap,
with the evaluation items of the Dow Jones Sustainability Index (DJSI)
informing the discussion on materiality. Takeda’s discussion of materiality
Global Measles Vaccination forChildren, in partnership with theis informed by international frameworks such as SDGs, by which it
United Nations Foundationassesses society’s demands and expectations while striving to see howthese relate to business activities. Takeda strives to engage in activities to promote a sustainable society. By
creating and preserving value through CSR, it builds trust with society, reinforces its reputation, and further
develops the business.
Takeda has also developed an Action Mapping for SDGs. By sharing with a wide range of stakeholders,Takeda utilizes it in discussing new partnerships and future focused areas for achieving SDGs.

23

4. The status of SDG-related actions by Japanese private companies

As seen in Figure 13 below, this survey clearly
revealed a desire to learn from the examples of

Q: Are you interested in business activities on SDGs
by non-Japanese companies?

overseas companies concerning problem-solving. Also

evident is the aim to learn about SDG implementation
methods from overseas examples and to enhanceinternational competitiveness by doing so. Moreover,
the aforementioned SDG Industry Matrix introduces
numerous good practices by companies overseas andcould serve as a reference.

9％

91％

Interested
Not interested

n=147

Figure 13: Degree of interest in casesby non-Japanese companies

245. Future pathways—moving from “checklists” to “core business”

5.1. Distinguishing features fromcases and future pathways
Based on survey results on the actual conditions of
SDG-related actions by Japanese companies as statedabove, the current status and background, as well as
challenges faced by companies and their responses,
were examined in light of international trends. As aresult, three main points were discovered concerning
the overall picture and distinguishing features of thestate of SDG implementation by Japanese companies.
Most Japanese companies are utilizing SDGs as“checklists” for existing corporate missions and business

Survey results reveal that most targeted companies
have begun SDG-related initiatives and are taking
action. Further, the awareness level on SDGs among
CSR staff rose strikingly from 61% to 84% (Figure 5).
Meanwhile, although familiarity among top management
is on the rise, it is still limited to 28%, and awareness isstagnating at 4-5% among middle managers, revealing
major issues involved in the smooth promotion of
the SDGs. Further, gaps in awareness levels between
GCNJ members and non-members also touch on aninteresting trend. While over half of GCNJ members
view the SDGs as “improvement of corporate value
related to sustainability (79%)”, and “new business
opportunities (57%)”, only 26% of non-members view
SDGs as “new business opportunities” (Figure 6). The
SDGs are goals that respond to wide-ranging diverse
issues and can be realized only when all stakeholders

cooperate. Accordingly, there needs to be a broad
appeal to GCNJ non-member companies concerning
the importance of SDGs. First, it is important for CSR
staff in these non-member companies to gain a solid
understanding on SDGs.
In actuality, the SDG initiatives of most Japanesecompanies are at the stage of utilizing checklists tojudge the consistency of existing corporate missions
and business with SDGs. Also, the main problems
heard from persons concerned in these companies arethat, compared to their own awareness, there is a lowlevel of recognition about the SDGs in society (this iscompounded by the feeling that their own initiatives are
not linked to improved social value), and that the visionand direction of the Japanese government with regard toachieving the SDGs remains unclear. It seems there is astrong trend among consumers and customers regardinglevels of awareness. In other words, companies arekeenly aware of their reputations in society (consumer
backing, the eye of the investor, employee awarenessraising, recruitment of highly aware human resources).
Based on this motivation, the role of government,
NGOs/NPOs, international organizations and research
institutes in raising societal interest is considered vitaland expectations are even greater for them as importantpartners in SDG implementation.
A group of Japanese companies have started taking
actions to incorporate SDGs into “core business”
Among cases of Japanese companies subjected tointerviews, a group of leading companies that haveto date endeavored sustainability management and
MDG-related initiatives view the SDGs as a “business
opportunity” and make use of the SDGs in marketingand the branding of the company and major products,
linking them to increased profit and improved corporate
value. Most of these did not take a “checklist” approach,but characteristically aimed to improve corporate
values with SDGs as a trigger.
Further, a distinguishing feature of Japanese companies
carrying out advanced initiatives is the large impact ofleadership exhibited by executives in SDG promotion,
including CSR directors and top leaders with overseas
experience. Reasons include high interest in overseas
trends in global companies, and a particularly

25

5. Future pathways—moving from “checklists” to “core business”

strong awareness on ways to enhance international

companies have set up sustainability departments

expansion. However, not all companies have suchmanagement, similar approaches are also feasible forcompetitiveness from the perspective of overseas
leaders, and in order to raise awareness among othertop management, along with the power of leaders,bottom-up initiatives should be advanced to bring out
the ideas of each and every employee. While someJapanese companies have already started to takeaction, from here on they should scale up existing
initiatives and further integrate the SDGs within eachbusiness division as a matter of core business.
Putting SDGs at core business: mixed bottom-up
and top-down approach and voluntary actions bycompanies themselves are the “essentials”
Major companies in Europe and North America and ina number of emerging nations have raised corporate
value and enhanced international competitivenessthrough sustainability management. In order forJapanese companies with the above characteristics toshift towards a position where the SDGs are integrated
into core business practices, staff in charge of SDG
promotion must first fully understand the significance ofSDGs, and link SDGs to corporate value propositions.
Next, a process for selection of priority issues must
be created from the bottom up, including enhancing
the understanding of top management. It is thennecessary to create a process and implementation
scheme for the top-down running of the PDCA cycle
and carry out planning for penetration through thecompany. Accordingly, a mixed bottom-up and topdown approach based on the understanding of staff incharge and commitment from the top can be effectively
applied in Japanese companies.
It is also important for top management not to simply
limit their scope of activities to mere mentions inreports, but rather look at the issue from a mid- andlong-term perspective and exhibit leadership andinitiative to launch major directions. These must be
communicated to employees in their own words,
illustrating a sense of purpose and recognition ofimportant issues. Meetings spanning group companies
and study sessions targeting all employees at theexecutive director level and above are important.
Likewise, the understanding of top management canbe obtained by quantifying the business value ofcommitting to the SDGs. In addition, deliberation on
the PDCA cycle must go along with SDG initiatives, aswell as the creation of an implementation scheme withmobility. For instance, much like how leading overseas

44

45

or an ombudsperson under the direct control of top
the SDG initiatives of domestic companies.

Staff from interviewed companies carrying out advanced
initiatives voiced the opinion that because SDGs arestrongly related to daily life issues in both Japan andoverseas, such as employment and labor problems,
reduction of inequalities and energy conservation
methods, routine efforts will contribute to internationallyagreed upon goals. As such, awareness raising canbe effectively supported by targeting employees andconsumers. The SDGs, founded upon the “leave no one
behind” principle, indicate a future ideal society. In
other words, they reflect the various needs of people.
From the standpoint of this interpretation, engaging in
SDGs is addressing people’s needs, and thus is linked
to business opportunities. Accordingly, the next necessary
steps for staff in charge of SDG promotion — especiallyamong those concerned about explaining the goals to
top management and employees in other departments —is to frame how the SDGs offer profitable long termbusiness opportunities, clearly communicating the risks
of inaction to top management and employees. In sodoing, responsible staff can work towards progressively
advancing SDG initiatives forward.
Finally, it is also advantageous for groups of companies
promoting SDGs to work together in taking action. For
instance, ahead of the World Economic Forum Annual
Meeting in January 2017, over 80 global corporations
including Coca-Cola, Dong Energy, Sainsbury’s, Nestlé
and Ikea, sent an open letter to the UK Prime Minister,calling on the government to deliver on SDGs and toclearly indicate how the UK government will contributeto realizing SDGs.44 Likewise the WBCSD, together witha group of companies including Kellogg and Walmart,launched the WBCSD Climate Smart Agriculture
Initiative to respond to climate change adaptation.45 The

initiative adopts goals to increase food supply by 50%
and reduce CO2 emissions from agriculture by 50% by2030. In Japan, groups of companies already promoting
activities, including recommendations submitted by
GCNJ in the process of formulation of Japan’s SDGs
Guidelines for Implementation. In this manner, just as
outreach activities by GCNJ were effective in improving
awareness on SDGs, groups of Japanese companies
taking action and serving as a bridge between groupsof companies overseas, represent an important major
step for driving the 2030 Development Agenda.

Sustainable Brands, “Government and private sector partnerships—Top 80 companies send letter to UK Prime Minister” (16 Feb 2017),
http://www.sustainablebrands.jp/news/us/detail/1188774_1532.html
WBCSD and Climate Smart Agriculture (CSA), https://sustainabledevelopment.un.org/partnership/?p=12273

26

5. Future pathways—moving from “checklists” to “core business”

5.2. Recommendations to related
stakeholders
In order for companies to further advance business actions
on the SDGs, what is required of other stakeholders?
Based on the results of this study, below are brief
messages addressed at each type of stakeholder.
Governments (national and local) should serve as a
guide and actively communicate a vision
Government organizations are fundamentally verticallystructured, and yet related work is interrelated in acomplex manner, which makes it difficult to see a clear
vision and implementation scheme for a country’s
policies. Many in the business world have said that itis difficult to know how the initiatives of companies
contribute to government policies. As such, it isfirst essential to communicate a clear vision that is
also connected to domestic issues. Further, manybusinesses were of the opinion that the government
should consider to incorporate SDGs into school
education and life-long education with a view towards
influencing the attitudes and beliefs of general citizens
and consumers. Similarly, awareness-raising targetedat young people, especially those enrolled in school, isalso crucially important. However, it bears mention that
there is a gap in accessibility to information on SDGs
between different regions across the country. Ideas on
closing this gap include initiatives aimed increasing thenumber of educational opportunities and awarenessraising in major cities other than Tokyo (e.g. Osaka,
Nagoya, Sapporo, Fukuoka). Further, in order to ensurethat the SDGs are more widely recognized in regional
areas, efforts will also be needed to include SDGs in thecomprehensive plans of local governments.

Likewise, various actions are called for helping boost
private sector initiatives. These could include designating
corporate initiatives as contributions from business in
the implementation of Japan’s SDGs Guidelines for
Implementation, the establishment of a forum, such as an
SDGs platform, to consolidate a point of contact with the27

private sector for all government entities, and collection
and dissemination of examples of company initiatives andtheir progress both domestically and abroad. Moreover, in

addition to heightening the interest of concerned parties
by holding relevant meetings and seminars to promote
initiatives, consideration of other measures is worthwhile,
such as an SDGs logo campaign, establishment of a publicawards scheme and preferential treatment in the tax system.
Investors should create a trend to accelerate SDG
promotion by companies
Investors play a major role in companies putting SDGs atthe core of business. Based on the idea that investments
in companies from a long-term perspective will prioritize
investments in companies that have not only short-term
profits but also corporate value over the mid- to longterm, trends in ESG investment and divestment fromcompanies with a large percentage of fossil fuel related
assets are increasingly active. Against this backdrop,
it would be effective for investors to examine SDG
initiatives and consider the long-term business risks for
those companies that choose not to factor the SDGs into
investment decisions, as communication on SDG initiatives
from the aspect of information disclosure is gaining wider
acceptance. Likewise, it is important for investors in Japanto also take actions aimed at facilitating the promotion of
SDG initiatives.
International organizations and research institutes
should disseminate information on leading practices
and assessment methods
Expectations with regard to the role played byinternational organizations and research institutes in
the promotion of the SDGs with companies are varied
and multiple. These include, for example: 1) to identify
major global, domestic and international trends andshare relevant information on the significance to SDG
initiatives, 2) to support the design of SDG action plansamong companies via trainings and provide assistanceon human resource development, 3) to monitor the
progress of SDG initiatives by sharing good practices
and examining and building quantitative assessment
systems, and 4) to serve as an intermediary for linking
companies and various actors via the networks ofinternational organizations and research institutes. By
continually implementing roles 1 to 4 in the PDCA cycleof company SDG engagement, these actors can serve
to comprehensively support putting SDGs at the coreof business. The survey questionnaire indicated thatnumerous Japanese companies express an interestin the practices of overseas companies. As such, UN
business networks such as the UNGC and IGES andother research institutes can highlight flagship initiativesof Japanese companies, as well as document thepractices of overseas companies in Japanese language.

5. Future pathways—moving from “checklists” to “core business”

Likewise, it would be effective to establish a platform

for data collection regarding the issues and needs ofJapanese companies, conducting continuous monitoringon the status of progress and implementation, and as
well as developing a mechanism for wider disseminationof this information.

Civic society (NGOs/NPOs) should keep watch andstrengthen partnerships
Survey results revealed that civil society (NGOs/NPOs)
also has a wide role to play, particularly in outreachactivities and implementation. Examples include
engagement in the following three areas: 1) carryingout public awareness-raising activities in other partsof the country and expanding outreach activities for
citizens to promote domestic SDG initiatives, with aview towards resolving local gaps in information, 2)
monitoring corporate actions and their relevance tointernational norms and standards, cooperating withthe private sector on problem-solving and related
improvements, and 3) serving as a conduit for helping
companies to advance initiatives overseas, in particularcollecting relevant information, introducing local NGOs
and consultants and providing continuous support for
the implementation of activities. It is clear that Japanesecompanies have a great need for partnerships with
NGOs in the context of promoting SDG initiatives. For
this reason, civil society’s role should not be limited toroles 1 and 2: actively assisting companies with regard
to role 3 will also expand business opportunities forNGOs and foster mutual win-win relationships andpartnerships.

Moving forward
Although this study mainly focused on those companies
currently promoting SDG initiatives, and examining
ways to put them into practice or addressing various
challenges associated with implementation, certain
limits on the universality of results must be taken into
account. For instance, more case studies on differencesin status of implementation according to company
scale, implementation status of domestic companies
related to individual SDGs such as energy, sustainableconsumption and production, and diversity, as well as
the existence of partnerships between companies inthe same industry, can be considered useful for future
research topics. We would like to express our gratitude
to the companies that cooperated in this study and all
persons involved. We hope that this study will provide
Japanese companies useful guidance and suggestions
for mainstreaming SDGs into their core business modelwith a view towards improving overall sustainability
management, and thus serving as a practical resource
for fostering a sustainable society that leaves no one
behind.

28

Annex

GCNJ members and Associate members
Survey on status of Japanese privatecompanies on actionsfor SDGs implementation
Survey period: September 2, 2016 – September 21, 2016

1. Summary of survey implementation⃝Purpose of the survey• Understand the status of GCNJ member companies and organizations on actions for SDGs implementation• Make it the basic material for awareness raising and PR activities of SDGs

⃝Content and method of the survey• Survey target: 233 companies and organizations from GCNJ members and Associate members as of September 2, 2016
• Survey method: Web questionnaire• Survey period: September 2, 2016 – September 21, 2016
• Survey contents: Status of actions for each SDG target, challenge in SDGs implementation and future direction• Response status: 147 organizations◆‌We would like to express our appreciation to Engagement First Inc., affiliated company of Members Co., Ltd.,for cooperation in summarizing the results of this survey.

Copyright ⓒ 2017 GCNJ All Rights Reserved.

30

Insidethe company

79

Group company as awhole (Domestic)

Annex

59

Group company as awhole (Overseas)
Supply chain(Primary suppliers)

２．Survey result data

Others[Awareness of SDGs](For those who did not select “not in particular”)
Where do you target activities of raising awareness of SDGs withinyour company/organization?
(multiple choice) (Required)
Insidethe company

79

Group company as awhole (Domestic)

Others5

SDGs related tools you are interested in(multiple choice) (Required)

SDG Compass

115
62

Poverty Footprint

45

Supply chain(Primary suppliers)

13

SDG Industry Matrix

59

Group company as awhole (Overseas)

45

Others

13

11
5

5

[Status and Challenges of SDGs implementation]
Which organization is the main body of SDGs promotion activities
within your company/organization? (Required)2％

SDG Compass
SDG Industry Matrix

7％

12％
Poverty Footprint
Others

7％

4％

115

11

Board of Directors
Management Executive
Council
CSR Division

68％

Domestic

114

Overseas

62

5

Where is the area that is developing SDGs related actions?
(multiple choice) (Required)

Business Division

84

Nothing inparticular27

Which do you think has the greatest impact to promote SDGs?
(Required)
4％

Nothing in particular
Others

n=147

2015

10％

2016

12％

1％
58％

7％

8％

8％

5％

41％
3％

Company

Shareholder / Investor

Customer

Consumer

16％

5％

15％

5％
1％

Government, municipality, government group (including JICA etc.)
NGO / NPO

Academia

All sectors are equally inﬂuential
Others (speciﬁcally)

Copyright ⓒ 2017 GCNJ All Rights Reserved.

31

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