September 30, 2016
Nippon CSR Consortium

Draft Version for Public Consultation
September 30, 2016 ‐October 31, 2016

Nippon CSR Consortium, 2016 Stakeholder Engagement Programme(Human Rights Due Diligence Program) (Tokyo, Japan)
Invitation to Comment on “Human Rights Issues by Sector (draft)” and “Priorities on the SDGs by Sector(draft)”Since September 2012, the Nippon CSR Consortium has been working to provide a forum in which toidentify and discuss negative human rights impacts that may arise as a result of corporate activities. This
work has been conducted in collaboration with companies from various industrial sectors, as well as NPOs,
NGOs and human rights experts in academia.
The firth Stakeholder Engagement Programme in 2016 focused on identifying silent human rights issues bysector based on Human Rights Guidance Tool developed by UNEP FI, and identifying priorities on the
Sustainable Development Goals (SDGs) by sector in consideration with the Sustainable Development
Goals and proposals for the SDGs submitted by NGOs/NPOs in the G7 Ise-Shima Summit. The programme
was held six times in the period from 15th June to 27 July. The result of the discussions of is summarized in
the “Human Rights Issues (draft)” document and the draft “Priorities on the SDGs by Sector (draft)”document, and are hereby disclosed for public consultation.
1.

Subject
Human Rights Issues by Sector (draft) and Priorities on the SDGs by Sector (draft)2.

Access to the document
The document is available via the CRT Japan website http://crt-japan.jp/en/

3.

Application(1) Consultation Period
Friday, September 30, 2016 to Monday, October 31th, 2016 (Japan Time)(2) Submission Address
Please send your comments to CRT Japan’s Nippon CSR Consortium secretariat, by e-mail(yourcomments@crt-japan.jp) as an attached document in Word format. Please kindly be advisedthat we are unable to accept comments through other methods (such as by telephone, fax, or post),

1

nor are we able to accept anonymous submissions.
(3) Application Procedure
Address to: Secretariat of the Nippon CSR Consortium (in CRT Japan)
Subject: Comment on “Human Rights Issues” and “Priorities on the SDGs”
Organization/Affiliation and Name: (Department, Name)
Email and Telephone :(4) Comments:
We invite public comments on the following questions. In the description of your comments,
please specify the industry sector, page number, and concrete issue that your comment addresses.
Depending on your needs, please enter your comments on the Public Comments sheet (Appendix
2).
1.

Please share any comments on the concept and procedure of this programme

2.

Please freely respond with any comments on “Human Rights Issues by Sector (draft)”document and “Priorities on the SDGs by Sector (draft)” document.

3.

The final report is scheduled for publication in December 2016. What kind of format and/or
procedure do you consider would be most appropriate for finalizing the report?

(5) Submission and Inquiry
Secretariat of Nippon CSR Consortium (in CRT Japan Office)E-mail: yourcomments@crt-japan.jp
4.

Management and Handling of Comments
The comments on the draft submitted to the Nippon CSR Consortium will be used for the futurereference of participants in the discussions. Unfortunately we are unable to respond to individualcomments. All the comments, personal names and/or corporate and organizational names submitted
will be disclosed on the CRT Japan website, however addresses, telephone and fax numbers, andaddresses of the commenter’s will not be published. If the comments include private information, bywhich a particular individual can be identified, or any information deemed to damage a property rightof an individual person or a corporation, pertinent sections of the text will be deleted at the time of
publication.

Hiroshi Ishida
Executive Director, Caux Round Table Japan2

Table of Content

1.

Preface .............................................................................................................................................................4

1-1.

Purpose of the Stakeholder Engagement Programme ..........................................................................4

1-2.

Programme for Identifying Human Rights Issues ................................................................................5

1-3.

Procedure of the Programme in 2016 ...................................................................................................7

1-4.

Points for Consideration .......................................................................................................................82.

Points for collecting Public Comments ...........................................................................................................93.

CRT Japan's viewpoint as the Secretariat of Nippon CSR Consortium ......................................................... 10

4.

Human Rights Issues by Sector (draft)

4-1.

Manufacturing (electricity, precision, machinery, others)……………….……………………..….12

4-2.

Manufacturing (Infrastructure)……………………………….…………….…………………..….16

4-3.

Information, Communication, and Technology…………………………………………...……….20

4-4.

Transport and Logistics……………...…………………………………………………………… 24

4-5.

Chemical and Building Materials……………..…………………………………………………...28

4-6.

Food………...……………………………………………………………………………...………32

4-7.

Consumer Goods (Sports and Daily Goods)....…………………….............................................36

5.

Priorities on the SDGs by Sector (draft)

5-1.

Manufacturing (electricity, precision, machinery, others)……………….……………………..….39

5-2.

Manufacturing (Infrastructure)………………………….………………….…………………..….41

5-3.

Information, Communication, and Technology and Consulting………..………………...……….43

5-4.

Transport and Logistics……………...…………………………………………………………… 44

5-5.

Chemical and Building Materials……………..…………………………………………………...46

5-6.

Food…………...…………………………………………………………………………...………48

5-7.

Consumer Goods (Sports and Daily Goods)……...………………….............................................50

Appendix 1: A Sheet of the Relevance between the SDGs and the Sectors
Appendix 2: Public Comments Sheet3

1

Preface

1-1.

Purpose of the Stakeholder Engagement Programme (Human Rights Due Diligence Workshop)

The Nippon CSR Consortium was established in September 2012 to raise awareness and promote activities
in the fields of business and human rights by offering a forum in which companies can discuss humanrights issues with NGOs and other companies. The consortium consists of corporate participants,
NGOs/NPOs, human-rights experts and representatives from academia. In 2012 the 68 participantsconsisted of 39 companies and 11 organizations, in 2013 the 35 participants were from 15 companies and
12 organizations, and in 2014 the 68 participants were from 34 companies, 17 organizations and others, in2015 the 98 participants in the first section of the workshop were from 48 companies and 17 organizations.
In 2016, the 73 participants were from 40 companies and 14 organizations.
There are some underlying factors that contributed to the establishment of the consortium. Companies
sometimes struggle to address diverse human rights issues with limited budgets and resources. Therefore,
even once a year, it is useful for them to get together to try to be leaders in their field by proactively
seeking to understand and address human rights issues that their industry may be involved in.
The consortium also emphasizes sustainability of activities. As stated above, the companies are committed
to continuous efforts for incremental improvement. In order to respond dynamically to a diverse range ofissues, participant companies seek to stay abreast of changes and issues in the society that potentially link
their activities to human rights impacts.
The Nippon CSR Consortium positions the Stakeholder Engagement Programme as an activity that aims toassist companies at industry levels in (1) identifying and assessing any actual or potentially adverse humanrights impacts as defined in the UN Guiding Principles1, which are connected to their activities at company
levels, and (2) integrating and acting upon the findings, (3) reporting, and (4) tracking improvement
continuously. We hope participants’ companies can use the knowledge acquired at this programme tosupport their human rights due diligence activities at their companies.
The “Human Rights Issue by Sector (draft)” and “Priorities on the SDGs by Sector (draft)” represent theoutcome of the discussions started in June and ended in July 2016, and is hereby opened for public
consultation. We would appreciate candid comments on the drafts from stakeholders. The final documents
will be issued in December 2016.

Refer to: Human Rights Council, 2011, Report of the Special Representative of the Secretary-General on the issue of humanrights and transnational corporations and other business enterprises, Available at:

http://www.ohchr.org/documents/issues/business/A.HRC.17.31.pdf#search='report+of+the+special+representative+of+the+secretarygeneral+on+the+issue+of+human+rights+and+transnational (Accessed Nov 10th,2014).

4

1-2.

Programme for Identifying Human Rights Issues

The Nippon CSR Consortium, guided by the UN Guiding Principles, has been working on identifying
important potential human rights issues by industry sector. The process used to identify the issues is
explained in the following section.
In the 2012 Stakeholder Engagement Programme, important human rights issues by sector were identified
through dialogue with the participants based on identifying the human rights issues and expectations
relevant to business in UNEP FI Human Rights Guidance Tool2 (Human Rights Guidance Tool). The final
report “Hunan Rights Issues by Sector (2013)” reflects public comments, was issued on April 3rd, 2013.
In 2013, we further explored “Hunan Rights Issues by Sector (2013)” from the perspective of the value
chain. Identifying CSR issues throughout related value chains was very useful for CSR departments tounderstand which human rights issues were related to departments. After public consultation, “Human
Rights Issues by Sector (v.2)” was issued.
In 2014, based on the public comments received in 2013, indicating that “human rights issues should beunderstood with the particular context in which they arise”, we focused on understanding the context andbackground of the issues based on Global Risks identified by World Economic Forum3. We focused onunderstanding the interconnectivities of global risks, and related human rights (societal and environmental
issues) to business. This process is a practical step to “understand the reasons of why and how relevant
issues are significance to the business activities” and “clearly understand that social and environmental
issues are dynamically interlinked and interconnected”. After public consultation, “Human Rights Issues by
Sector (v.3)” was issued.
In 2015, corporate participants were given a lecture on the particular context in which human rights issues
arise by members of NGOs/NPOs and subject experts. The programme addressed emerging human rights
issues on sexual minority and technical intern trainees in Japan which have been received much attention
recently. Then, the participants reviewed “Human Rights Issues by Sector (v.2)” based on Human Rights
Guidance Tool4 (2014) developed by UNEP FI to examine any added/removed/modified points in thereport. Compared to the 9 sectors in 2014 in total, the programme in 2015 was scaled up to the 11 sectors,
identifying the sector specific human rights issues. After public consultation, “Human Rights Issues by
Sector (v.4)” was issued.
In 2016, the programme addressed the relevance between the SDGs and human rights issues. The year of2015 marked the four significant events. At the G7 Summit in Schloss Elmau Germany, G7 leaders pledged
to promote responsible supply chains, and strongly supported the UN Guiding Principles on Business and234

http://www.unepfi.org/humanrightstoolkit/fundamentals.php (Accessed on Nov 10th, 2014).
http://www3.weforum.org/docs/WEF_GlobalRisks_Report_2014.pdf (Accessed on August, 08, 2014)
http://www.unepfi.org/humanrightstoolkit/ (Accessed on July 10th, 2015)5

Human Rights. They also stressed the need to develop substantive National Action Plans and strengthen
grievance mechanisms. At the Session of the United Nations General Assembly in September, theSustainable Development Goals (SDGs) were adopted. In the UK, the Modern Slavery Act was adopted.
And, at the UN Climate Conference in Paris COP 21 in December, the countries made the Paris Agreement
which will come into effect in 2020. Considering all of these events, the programme focused on identifying
silent human rights issues by sector based on Human Rights Guidance Tool developed by UNEP FI, andreviewing any added/removed/modified points in “Human Rights Issues by Sector (v.4)”, and identifying
priorities on the SDGs by sector in consideration with the proposals for the SDGs submitted by
NGOs/NPOs in the G7 Ise-Shima Summit.

6

1-3.

Procedure of the Programme in 2016

The programme consists of the following four steps.

Step1: Understanding the context in which human rights issues ariseCorporate participants were given a lecture on the particular context in which human rights issues
arise by members of NGOs/NPOs, international Organizations, and social entrepreneurs. They
presented how the issues were related to the SDGs. (Day1)

Step2: Reviewing and identifying adverse human rights impacts arising from corporate activities

As a contributor, Institute for Global Environmental Strategies (IGES) presented an overview of SDG
Compass5, and the participants discussed the SDGs and related human rights issues. (Day2)



Using SDG Compass, the participants identified the priorities on the SDGs by sector in consideration
with positive and negative impacts on the SDG goals, and discussed the related human rights issues.
They also reviewed the “Human Rights Issues by Sector (v.4) for any changes, based on Human
Rights Guidance Tool developed by UNEP FI. (Day3/4)

Step3: Integrating perspectives from both corporations and stakeholders


The participants summarised discussion contents and exchanged their views with NGOs/NPOs,
subject experts. After receiving the feedbacks from NGOs/NPOs and subject experts, the participants
finalized the discussion contents by sector. The Secretariat then compiled their work and developed“Human Rights Issues by Sector (draft)” and “Priorities on the SDGs by Sector (draft)”.

Step4: Collecting Public Comments and finalizing our report

The Secretariat invites public comments on the both documents from September to October, 2016.
Following consideration of the received comments, the secretariat will release “Human Rights Issues
by Sector v.5 ” and “Priorities on the SDGs by Sector”.

The programme received great support and contribution from Institute for Global Environmental Strategies
for providing the introduction to SDG Compass, and from the UNEP Finance Initiative for providing theknowledge on Human Rights Guiding Tool.

5

http://sdgcompass.org/wp-content/uploads/2015/12/019104_SDG_Compass_Guide_2015.pdf (Accessed on August 15th,
2016)

7

1-4.

Points for Consideration

1-4.a

Differing degrees of awareness of human rights issues

The level of detail in the feedback provided by NGO and expert stakeholders was not consistent, perhaps
due to differing study and priority areas. Similarly, there were gaps in the level of awareness of humanrights issues amongst the corporate participants, reflecting differing levels of engagement with humanrights issues. Each company and sector is in a different situation, and the level of outside scrutiny onhuman rights may differ according to the company’s size and sector.
1-4.b

Scope of Study and Analysis

The programme in 2016 and this outcome do not include the following study and analysis.
The interconnection map of WEF Global Risks illustrated in “Human Rights Issues by Sector (v.3)” is
not discussed or in the scope of analysis, as it is not related to the orientation and aim of the
programme.

Ways of addressing the identified human rights issues and WEF Global Risks are not included in thescope of study as it is not related to the orientation and aim of the programme. It will be an issue to be
discussed next year as necessary.

The finance, pharmaceutical, apparel and textiles, paper and printing, and consulting and auditing
sectors are not in the scope of analysis, as the programme did not review them.

1-4.cAddition of New Sector

The programme in 2016 added the Consumer Goods Sector (Sports and Daily Goods).

8

2

Points for collecting Public Comments

We invite public comments on the following three points, 1-3. In the description of your comments, please
specify the industry sector, page number, and concrete issue that your comment addresses, and thebackground and reason for your comments. You may use the Public Comments Sheet (Appendix 2) tosubmit your comments, if you prefer.

1.

Please share any comments on the concept and procedure of this programme.

2.

Please freely respond with any comments on “Human Rights Issues by Sector (draft)” and “Priorities
on the SDGs by Sector (draft)” document.

3.

Comments on the format and procedure of the final report

9

3

CRT Japan's viewpoint as the Secretariat of Nippon CSR Consortium

In international CSR movement, the growing importance of addressing Business and Human rights issues ison the rise mainly among the Western countries. At the G7 Summit in Schloss Elmau Germany, G7 leaders
pledged to promote responsible supply chains, and strongly supported the UN Guiding Principles on
Business and Human Rights. In the UK, the Modern Slavery Act was passed. As this case illustrates,
legislation and mandatory for CSR continues to progress rapidly. In the rapidly growing social responsible
investment (SRI) market, an initiative called “Corporate Human Rights Benchmark” has begun its
benchmark process evaluating 100 selected companies. There are increasing the media coverage and thedevelopment of social media. In the changing social environment surrounding companies, demands forcompanies to address CSR issues in the context of Business and Human Rights become certainly growing.
It addition, along with global business expansion, companies are always in a situation of facing local
human rights and environmental issues which are occurring in areas of their operation sites. There arealways various types of “risks” beyond the scope of companies’ understanding. This means that thecompanies are always exposed to unpredictable “mine risks”. From the perspective of risk-management, it
is important for companies to address CSR issues.
The Sustainable Development Goals (SDGs) show significant global priority issues for 2030 and provide avision of how the world should look like. The SDGs can be taken by companies for business opportunity.
However, it is very important that companies should consider any negative impacts arising from theirbusiness operations when addressing the SDGs issues. The lesson learned from the 2016 Stakeholder
Engagement Programme is that companies need to identify where the greatest positive and negative
impacts occur though their value chain, and then decide which the SDGs issues should be addressed as ahigh priority to them. This ensures extremely long-term benefits for companies.
The SDGs clearly focus on human rights, as they are fully committed to “Leave no one behind”.
Companies should conduct a mapping of their value chain to identify high impact areas for theirstakeholders. And, when they conduct dialogues with their stakeholders potentially and actual adversely
impacted by corporate operations, it is very important for them to discuss with the standpoint of thosepeople and address negative impacts in which they produce. Positive impacts should not be offset by
negative impacts. Through the implementation of the programme, the UN Guiding Principles on businessand human rights was recognized as a very useful tool for understanding where potential and actual adverse
impacts on human rights occur through value chain.
“Human Rights Issues by Sector”, developed as the result of the discussions between companies and
NGO/NPO, served as the base for reflecting the concepts written in the preamble to the SDGs andidentifying high impact areas through value chain. The past programmes focused on identifying negative
impacts through value chain. However, this knowledge also helped to focus on what positive impacts could
be produced if negative impacts were addressed.

10

The lesson from the past Stakeholder Engagement Programme is that when companies address humanrights related risks, they should take the standpoint of their stakeholders. To develop such a viewpoint,
companies need to develop grievance mechanisms, conduct dialogues with the people with human rights
abuses and NGOs, and conduct human rights due diligence processes. In sum, companies should listen to
the local voices of the people adversely impacted, identify their specific pressing issues, and address theissues with utilizing high expertise and strategies. And, companies should be held accountable for any harmthey cause and outcomes of their actions, as well as should enhance their transparency by disclosing
information linked to economic, environmental, and ethical aspects related to their businesses in order toensure legitimacy of their business operations. By doing so, companies can earn “License to Operate” andtrust from stakeholders which becomes a backbone for corporate sustainable competitiveness in the longrun.
We would like to offer our great gratitude for Ms. Kaori Nomura from UNEP Finance Initiative who
provided the knowledge on Human Rights Guidance Tool, and for Ms. Ikuho Miyazawa from Institute for
Global Environmental Strategies who cooperated for implementation of SDG Compass into the 2016
Stakeholder Engagement Programme.
Caux Round Table Japan
Nippon CSR Consortium
Minoru Matsuzaki
Hiroki Wada

11

4

Human Rights Issues by Sector (draft)

As the result of the reviewing process in the programme this year, the newly added or edited parts are shownwith underlines, while the deleted parts are shown under each table of the sectors.
4.1

Manufacturing (electricity, precision, machinery, others)

Key value chains applicable to the manufacturing sector were classified into seven categories, and concrete
issues were further explored focusing on the products and services specified below.
4.1.1

Key value chains in manufacturing sector

Create: research, development, design
Buy: capital investment, procurement
Manufacture: production, manufacturing
Transport: storage, logistics
Sell: distribution, sales and marketing
Use: consumption, utilization
Discard: disposal, recycle
4.1.2

Discussed products and services

Construction machinery
Small electronic devices
Office imaging equipment
Electronic measuring instruments

124.1.3.

Potential human rights issues in the specified products and services, relevant value chains
Concrete issues*Highly relevant value chains are shown in parentheses [ ]Value Chain
Discard
Use
Sell
Transport
Manufacture
Buy
CreateKey human rights issues in the
manufacturing sector (electricity,
precision machinery, others)Core operation/ Supply chain Long working hours may become the norm in overseas
factories, due to low wages not matching local standards ofliving, and piece-rate work.
 Unpaid overtime work in Japan.

✓ ✓ ✓ ✓ ✓Health andsafety Severe incidents causing death or injury especially within
research and development, as well as manufacturing sites.
[C/M] Long working hours may cause health problems, inparticular, mental health problems.
 Progression of diseases by non-health checkups.
 Inadequate living conditions (living in a dormitory within
the factory, sharing one small dormitory room with several
people, being locked up for control) and poor sanitation(shower, toilet, etc.,) may affect the health of theemployees.
 Lack of protective equipments such as finger sacks, gloves,masks, eye-plugs or progress of occupational diseases due
to not wearing them✓ ✓ ✓ ✓ ✓Discrimination

Duringwork

 Inequality in working conditions, training, and promotion,
discrimination against female workers and sexual
minorities, sexual and power harassment.

✓ ✓ ✓ ✓ ✓✓Child labour

Minimumage There may be possible risks of child labour and trafficking
through brokers in supply chains across developing
countries (e.g. subcontracting works). Job applications may
be made using fake identities.

✓ ✓ ✓ ✓✓

Forced orcompulsory
labourDeposits
and papers

 “Mediators” may require foreign workers in Asian
countries to hand over ID (e.g. passport) and/or pay
excessive commission at the time of recruitment.

✓ ✓✓Forcedovertime

 Risk of long working hours may cause forced overtime,
due to excessive quota requirements.

✓ ✓ ✓ ✓ ✓－

 Potential lack of communication/dialogue between labour
representatives and unions.
 Potential insufficiency in institutionalization and operationof labour-management consultation and/or absence of
substantive collective bargaining.
 Potential insufficiency in protecting workers’ rights inunion shop Potential insufficiency in protecting worker’s right, wheretrade unions are banned or not fully implemented(including real cases where trade unions are banned).

✓ ✓ ✓ ✓ ✓Workplaceconditions

Freedom of
association andcollective
bargaining

Working
hours andwage

✓ ✓ ✓ ✓ ✓13

Discard
Use
Sell

Transport

Community
Society and government
Consumer
7

Value Chain✓ ✓ ✓ ✓ ✓ ✓ ✓Resources

Use ofnaturalresources Designing and developing products, transporting and salewith low environmental burdens (less electric
consumption, easy to recycle). [C/U/D/T/U]
 Abuse and contamination of land and water at a factory or
local construction site. [B/M/D]

Security

Non-stategroups andsecurity
payments

 Potential diversion of funds, goods and services 6 tonon-state groups, and armed groups. (e.g. conflictminerals7)

Relations withgovernments

Relationsto stateswith poorhumanrightsrecords

 A new venture (e.g. plant construction) by a government
may be launched without obtaining appropriate consent
from local communities, including indigenous people andminorities.
 At time of bidding for a plant construction and operation,
the labour standard presented by a host government may
not comply with the international standards.
 Offshore development[C], road infrastructures [T],waste
disposal[D]✓ ✓ ✓ ✓ ✓ ✓ ✓Bribery
andcorruption

 Potential risk of being involved in bribery and corruption,such as facility payments, especially at time of obtaining
licenses and authorizations. [M] Possible risks of corruption when entering into a contract,customs of the manufacturing industry, friendships whencontracting and operating, as well as of being involved incorrupt practices when receiving orders from government.
[S]✓ ✓ ✓ ✓ ✓ ✓ ✓Health andsafety Potential positive impacts of changing consumer
behaviours (e.g. conducting responsible marketing
considering health and safety of consumers) [S], andcontributing to raising consumers’ awareness ofenvironmental issues. [U/D] Potential risk to the lives or bodies of end consumers are
created due to a defect in specified products provided
through the customer/clients. [C/M]✓

Relations withcustomers

6

Concrete issues*Highly relevant value chains are shown in parentheses [ ].

Manufacture
Buy
CreateKey human rights issues in the
manufacturing sector

✓

✓ ✓ ✓

✓

Voluntary Principles on Security and Human Rights to identify benchmarks (http://www.voluntaryprinciples.org)
The law on using conflict minerals is now quite clear, and as part of their due diligence, companies need to take7

The law on using conflict minerals is now quite clear, and as part of their due diligence, companies need to takemany measures into account. Refer to The OECD Due Diligence Guideline for Responsible Supply Chain of Minerals from
Conflict-Affected and High-Risk Areas (http://www.oecd.org/corporate/mne/mining.htm) and an example, the Dodd-Frank
Wall Street Reform and Consumer Protection Act (http://www.sec.gov/about/laws/wallstreetreform-cpa.pdf)Conflict minerals

directly contribute to the maintenance of conflict and are associated with sexual violence against women and girls,
such as that in the North and South Kivus.

144.1.4

Human rights issues in the manufacturing sector and the relevant value chains,other than the specified products and services

Core operation/ Supply chain > child labour > minimum age and Community > resources > others
Products collected in industrialized countries for recycling purpose are shipped to developing countries anddisposed there finally as waste. There is a potential risk of child labour, if children are involved incollecting recyclable material from the wastes in these countries. If the products/waste is hazardous andtoxic and poorly-handled, there is a potential risk of disastrous human rights consequences for the healthand safety of the people in community8. [D]Community > resources > use of natural resources
Protecting traditional knowledge of indigenous people, and sharing with them the profits derived from theuse of such knowledge. (ABS: Access and Benefit-Sharing) [C/B]

8

Case profile: Tragigura lawsuits in Cote d’Ivoire.
(http://business-humanrights.org/en/trafigura-lawsuits-re-côte-d’ivoire#c9344)

15

4.2

Manufacturing (Infrastructures)

Key value chains applicable to the manufacturing sector (Infrastructure) were classified into seven categories,
and concrete issues were further explored focusing on the products and services specified below.
4.2.1

Key value chains in manufacturing sector (Infrastructure)

Create: research, development, design
Buy: capital investment, procurement
Manufacture: production, manufacturing
Transport: storage, logistics
Sell: distribution, sales and marketing
Use: consumption, utilization
Discard: disposal, recycle
4.2.2
Discussed products and services
Infrastructure*Among various product families in electronic components, ferrite products (parts) were selected andtheir value chain was focused on.

16

5.2.3

Potential human rights issues in the specified products and services, relevant value chains

Core operation/ Supply chain

Workplaceconditions

Working
hours andwage

Health andsafetyConcrete issues*Highly relevant value chains are shown in parentheses[]

 Long working hours may become the norm inoverseas factories, due to low wages not matching
local standards of living, and piece-rate work.
 Unpaid overtime work in Japan (increasing at-homeovertime along with development of IT).

Value Chain
Discard
Use
Sell
Transport
Manufacture
Buy
CreateKey human rights issues in the
manufacturing (infrastructures) sector✓✓ ✓ ✓ ✓ ✓

 Severe incidents causing death or injury especiallywithin research and development, as well as
manufacturing sites. [C/M]✓ ✓ ✓ ✓

 Long working hours may cause health problems, inparticular, mental health problems.

✓ ✓ ✓ ✓ ✓ ✓ ✓ Inadequate living conditions (living in a dormitory
within the factory, sharing one small dormitory roomwith several people, being locked up for control) andpoor sanitation (shower, toilet, etc.,) may affect thehealth of the employees.

✓ ✓ Lack of protective equipments such as finger sacks,
gloves, masks, eye-plugs or progress of occupational
diseases due to not wearing them✓ ✓ ✓ ✓✓ ✓ ✓ ✓ ✓✓ ✓✓Discrimination

Duringwork/
Employment

 Inequality in working conditions, training, andpromotion, discrimination against female workers,
disabilities, sexual minorities, ethnic groups andreligions)Child labour

Minimumage There may be possible risks of child labour andtrafficking through brokers in supply chains acrossdeveloping countries (e.g. subcontracting works). Job
applications may be made using fake identities.

✓ ✓Forced orcompulsory
labourDeposits andpapers “Mediators” may require foreign workers in Asian
countries to hand over ID (e.g. passport) and/or pay
excessive commission at the time of recruitment.

✓ ✓Forcedovertime

 Risk of long working hours may cause forced
overtime, due to excessive quota requirements.

✓ ✓ ✓ ✓ ✓－

 Potential lack of communication/dialogue between
labour representatives and unions.
 Potential insufficiency in institutionalization andoperation of labour-management consultation and/or
absence of substantive collective bargaining.
 Potential insufficiency in protecting workers’ rights inunion shop Potential insufficiency in protecting worker’s right,
where trade unions are banned or not fully
implemented (including real cases where trade unions
are banned).

✓ ✓ ✓ ✓ ✓ ✓Freedom of
associationand collective
bargaining

17

Concrete issues*Highly relevant value chains are shown in parentheses [ ].

Value Chain
Discard
Use
Sell
Transport
Manufacture
Buy
CreateKey human rights issues in the
manufacturing (infrastructures) sector

Community
Society and government

Resources

Use of natural
resources andinfrastructures

 Designing and developing products with low environmental
burdens (less electric consumption, easy to recycle). [B/M/D] Grabbing of lands that local people can access to water in and
can use for agricultures as basis of their lives.

✓ ✓Security

Non-stategroups andsecurity
payments

 Potential diversion of funds, goods and services 9 to non-stategroups, and armed groups. (e.g. conflict minerals 10)✓

Relations withgovernments

Relations tostates with poor
human rights
records

 A new venture (e.g. plant construction) by a government may
be launched without obtaining appropriate consent from local
communities, including indigenous people and minorities.

✓ ✓Bribery andcorruption

 Potential risk of being involved in bribery and corruption,such as facility payments, especially at time of obtaining
licenses and authorizations. [M] Possible risks that standards of local laws are lower thaninternational standards.

✓✓ ✓ ✓ ✓ ✓ ✓ ✓✓ ✓ ✓ ✓

 Possible risks of corruption when entering into a contract,customs of the manufacturing industry, friendships whencontracting and operating, as well as of being involved incorrupt practices when receiving orders from government. [S]Consumer

Relations withcustomers

Health andsafety Potential risk to the lives or bodies of end consumers are
created due to a defect in specified products and services
provided through the customer/clients

Biodiversity

 Negative impacts on marine resources and terrestrial
ecosystem.

Education Potential risk to include expression that may cause violationsof human rights in corporate reports and commercials.

✓

✓ ✓ ✓

✓ ✓ ✓

✓

✓

✓

9

Voluntary Principles on Security and Human Rights to identify benchmarks (http://www.voluntaryprinciples.org)
The law on using conflict minerals is now quite clear, and as part of their due diligence, companies need to take manymeasures into account. Refer to The OECD Due Diligence Guideline for Responsible Supply Chain of Minerals from
Conflict-Affected and High-Risk Areas (http://www.oecd.org/corporate/mne/mining.htm) and an example, the Dodd-Frank
Wall Street Reform and Consumer Protection Act (http://www.sec.gov/about/laws/wallstreetreform-cpa.pdf )Conflict minerals
directly contribute to the maintenance of conflict and are associated with sexual violence against women and girls, such asthat in the North and South Kivus.
1018

4.2.4

Human rights issues in the manufacturing sector and the relevant value chains, other than
the specified products and services

Core operation/ Supply chain > child labour > minimum age and Community > resources > others
Products collected in industrialized countries for recycling purpose are shipped to developing countries anddisposed there finally as waste. There is a potential risk of child labour, if children are involved incollecting recyclable material from the wastes in these countries. If the products/waste is hazardous andtoxic and poorly-handled, there is a potential risk of disastrous human rights consequences for the healthand safety of the people in community11. [D]Community > resources > use of natural resources

Protecting traditional knowledge of indigenous people, and sharing with them the profits derived from the use ofsuch knowledge. (ABS: Access and Benefit-Sharing) [C/B]

11

Case profile: Tragigura lawsuits in Cote d’Ivoire.
http://www.business-humanrights.org/Categories/Lawlawsuits/Lawsuitsregulatoryaction/LawsuitsSelectedcases/Trafiguralaw
suitsreCtedIvoire

19

4.3

Information, Communication and Technology (ICT)Key value chains applicable to the ICT sector were classified into six categories, and concrete issues were
further explored focusing on the products and services specified below.
4.3.1

Key value chains in ICT sector

Create: research and development
Buy: capital investment for office and data centre, procurement of machine/equipment/raw materials
and soft ware
Produce: information planning, program development, system maintenanceSell: network provider, sharing system, system maintenance & operation service, sales and marketing
Use: shared system operation, data archival
Discard: depreciation/amortization

20

4.3.2

Potential human rights issues in the specified products and services, relevant value chains
Value Chain

Core operation/ Supply chain

Workinghours

 Long working hours (including attendance at weekends) and
unpaid work in system development process (e.g. pre-release
period, during system trouble) [C/B/P/U]
 Industrial health and safety of workers at overseas
subcontractors (outsource providers) and/or System
Integrators may not be ensured, because political andeconomic factors are different from Japan. [C/P/U]✓ ✓ ✓ ✓ ✓Healthandsafety Long working hours may cause health problems, especiallymental health problems
 Possible risks to safety and health due to work at facilities of
networks✓

Discrimination

Duringwork

 Gender (discrimination against female workers), sexual
orientation and nationality inequality in training andpromotion
 Female workers may be transferred to other departments
without their will, after taking maternity leave. Workers whotake care of other family members may be transferred to otherdepartments without their will.

Forced orcompulsory
labourForcedovertime

 Excessive quota requirements may lead to long working hours
and forced overtime.
 Forced labour may be conducted in sites of equipment
suppliers

✓

✓ ✓ ✓

Freedom of
associationand collective
bargaining

Conflictwithlocal law

 Freedom of association and collective bargaining may not beensured.

✓✓Protection andstorage of
personal data－ Personal information held by the company may be leaked.
 Personal information may be gathered and used without
gaining agreement of individuals. [S/U] Inadequate education to employees who deal withmanagement of personal information may not contribute to arise in awareness of them. [S/U] Consumers may not be able to acquire ways to recognize andavoid risks due to inadequate trainings and education on risksof personal information to them. [U]Workplaceconditions

DiscardUse

Sell

Produce

BuyConcrete issues*Highly relevant value chains are shown in parentheses [ ].

CreateKey human rights issues in ICT
sector

✓ ✓ ✓

✓ ✓

✓

✓ ✓ ✓ ✓

“Check” was removed from “Create”, “During Work” and “Discrimination”.

21Value Chain✓ ✓Society and government

Use ofnaturalresources(water,land, etc.)

 Environmental friendly energy use at a data centre (e.g.
energy saving, responsible power source management.) andwater use [B] Having a negative impact on the lives of communities, suchas through noise and odor emissions from a data centre. [U] Potential risks of environmental pollution frominappropriately discarded electronic devices. [D] Conflict minerals may be used in equipments. [B/U/D]

Use ofinfrastructure Having a positive impact on local communities such as byimproving local infrastructure through the establishment ofan ICT network system. [P/U] Users’ social lives may be threated by suspension of service
caused by electricity and technical trouble. [U]✓✓Community
investment－

 Making a positive impact on local communities throughinformation provision and ICT services, such asenhancement of local peoples’ lives by reducing the digital
divide.

✓✓Relations withgovernments

Relationsto stateswith poorhumanrightsrecord Insufficient legal systems in host countries may cause
challenges in controlling forced overtime work. (e.g. atcontracted local company for offshore development
projects) [P] Potential violations of land ownership rights of local
peoples at the time of government purchase of land forindustrial park from of minority community. [B] Possible risks surrounding demands from government
authorities to provide private information. [S/U]Bribery
andcorruption

 Potential risks of being involved in bribery and corruption,
notably in offshore market research, and sales andmarketing (especially in ICT service provision forgovernment agencies.) [C/S]Resources

Relations with society

 Potential risks of being complicit in activities of terrorist
and criminal groups through the use of technology.
 Potential risks of being complicit in crime and violations ofhuman rights by the unintended use of technology✓ ✓ ✓ ✓✓

DiscardCommunity

✓

Use

Sell

Produce

BuyConcrete issues*Highly relevant value chains are shown in parentheses [ ].

CreateKey human rights issues in ICT
sector(continued)

✓

✓

22

Key human rights issues in ICT
sector (continued)

 Potential violation of privacy by information leakage,
especially in system operation
 Big Data services that gather public consumer data may
unintentionally identify personal data by combining
information, and there is a potential risk of misuse thecustomer personal data for commercial purposes without
prior approval from users.
 Possible risks of violating human rights due to improper
websites (suicide websites) and improper use of ICT(revenge porn).
 Violence on the Internet, verbal abuses, and porn may poserisks of giving adverse impacts on psychologicaldevelopment of children. [U]Value Chain

✓ ✓

23

Discard－*Highly relevant value chains are shown in parentheses [ ].

Use
Sell
ProduceBuyCreateConsumer

Relations withcustomers

Concrete issues

4.4

Logistics and Transport

4.4.1

Key value chains in logistics and transport

Create: research, development
Buy: capital investment, procurement of ships, vehicles, aircrafts, and fuelSell: promotion, sales
Transport: storage, logistics, transportation
Discard: disposal, recycle
4.4.2

Discussed products and services

Compound logistics business, logistics (land, marine, air), transport(aircraft, freight)

24

4.4.3

Potential human rights issues in the specified products and services, relevant value
chainsKey human rights issues in logistics andtransport sector

Value Chain✓

 Long working hours at fields and subcontracting companies
especially in busy seasons.
 Long working hours such as night work and early morning work
due to time difference with other countries Because logistics industry has the public nature, unexpected long
working hours may happen during occurrence of disasters.
Low wages✓

 Wages may be lower than levels of wage
 Working hours may get longer due to expansion of mail-ordermarkets. As a result, wages per unit of time decrease

Health andsafety※ Dangerous work always exist in sites of logistics and traffic suchas loading and unloading heavy objects, transporting, using large
machines, vehicles, work nearby trains, aircrafts and ships. It is
important to make daily efforts to prevent risks from occurring so as
to keep working places safe.

✓ Workplace accidents could occur due to lack of sufficient safety
instructions at site where heavy machinery and cargos operate,
such as terminal, aircrafts and airports, and ship under operation
for marine transportation industry. (shipping industry) Safety of workers in marine transportation industry when inwaters in which piracy can take place Because logistics industry has the public nature, secondary
disasters of labor hazards may occur
 Long working hours may cause mental health risks.
 Potential risks of causing forced and child labour, and threatening
health and safety of workers and others in supply chains.
Discrimination

During work

※ As lack of human capital due to a shrinking population is
anticipated, personnel and forms of employment such as
contract/temporary workers, ex-employer based on reemployment
system, the change of the employment status of temporary
employees to regular employees, reduction of working hours,
working at home.

✓ Inequality in working conditions, training and promotion may
occur due to various types of employments and various humancapitals.
 Foreigner nationals may face discriminatory treatment in
employment and payment.
 Uniform treatment to workers without due concern for diversity
elements such as religions and cultures.

25

Discard※ Logistics and Traffic industries are a labor-intensive industry.
Though it is anticipated that mechanization is further advanced in
the future, laborious work of human beings will still remain.

Transport

Sell

Buy

Working hours*Highly relevant value chains are shown in parentheses [ ].

CreateCore operation/ Supply chain

Workplaceconditions

Concrete issues

 Vehicles, ships, and aircrafts operated by companies may
cause a damage on roads and ports where they operate Disasters may damage infrastructures and disrupt logistics.
 Efforts to recover infrastructures such as roads and logistic
centers after disasters, and maintain basic infrastructure for
local daily life (positive impact).

✓✓ ✓ Potential risk of giving a negative impact on health and safetyof customers, the public, and other stakeholders.
 Potential risk of excess use of force like violence by nationalnavies dispatched to areas where piracy is occurring or byarmed guard hired by a company to protect logistic centers inless secure areas.
 Potential risk of excess use of force like violence by armed
guard on-board ships to mariners and piracy. (shipping
industry) A potential risk to navies, piracy may abuse the rights of local
communities such as fishermen. (shipping industry)

✓

✓

26

DiscardUse ofinfrastructure✓

Transport※ Diversification of power generation by the user of fossil fuels,
nonconventional natural gas resources, as well as natural energy
makes a progress.
 Potential risks of causing or contributing to environmental
contamination, air pollution, water quality degradation or
destruction of natural habitats at the site of oil extraction. [B] Exhaust gas from vehicles operating frequently along thesame route may cause or contribute to local air pollution. [T] Environmental destruction such as soil contamination, water
quality degradation, air pollution may occur due toconstruction and use of factories/logistic centers, roads,
railroads, ports and airports
 Procurement and use of fossil fuel, and inefficient use ofresources may cause climate change which gives a negative
impact on lives of people.
 Efficient use of natural resources can contribute to sustainable
development (positive impact).

Sell

Security

Use of natural
resources

Value Chain
Buy

Community

Resources

Concrete issues*Highly relevant value chains are shown in parentheses [ ].

CreateKey human rights issues in logistics andtransport sector(Continued)

Value Chain

Bribery andcorruption

 Possible risk of being involved unintentionally in bribery andcorruption such as by way of facilitation payment. [T] Potential risk of being involved in collusion, bribery andcorruption at the time of negotiating investments and routedevelopment with governments and legislative authorities.
[C/B]

Illegal dealing,
Trafficking

Trafficking inhuman Potential risk of direct association with trafficking through thetransportation of trafficking victims (via international airlines
and shipping companies).
 Potential risk of transporting banned goods

✓ ✓

✓

✓ ✓

“Check” was delected from “Buy” and “Community Investment”.

27

DiscardRelations withgovernments

Others✓ ✓Society andgovernment✓

Community Possible contribution to local people living in areas bycooperation for operation of relief suppliers sites,
transportation of relief and support suppliers to shelters during
occurrence of disasters (positive impact).
 Possible contribution to culture development, job creation,
tourism promotion, industrial vitalization, and enhancement of
the local infrastructure by making a long-term commitment
and connecting people and goods (positive impact)

Community
Investment

Transpor

tSell

Buy

Concrete issues*Highly relevant value chains are shown in parentheses [ ].

CreateKey human rights issues in logistics andtransport sector(Continued)

4.5

Chemical and Building Materials

Key value chains applicable to the chemical and building materials sector were classified into seven categories,
and concrete issues were further explored.
4.5.1.

Key value chain in the Chemical and Building Materials Sector

R&D, Procure, Produce, Transport, Sell, Use, Discard
4.5.2.

Value chain and key human rights issues in Chemical and Building Materials sector✓✓ indicates very important. ✓indicate important.
Key human rights issues in chemical

Concrete issues

Transpor

Sell

✓

✓
✓

✓

✓

✓

and

 There are relatively many sources of risks as
the industry that use hazardous substances(chemical substances) and large scale
facilities. (one’s company and supply chains)
 Possible risks of causing health hazards toemployees and final consumers if suppliers
do not provide complete information on
chemical substances. (one’s company andsupply chain) Possible risks of violating human rights byoutsourcing companies that conduct safety
and functionality tests to human beings withpoor ethical values. (supply chains)

✓

✓
✓

✓
✓

✓

✓

Disciplinary
measures Because practices of disciplinary measuresdiffer largely according to countries andregions, there are possible risks ofdeveloping policies on disciplinary measuresthat do not match regions. (one’s company)
 Inadequate grievance mechanisms against
disciplined persons (one’s company)
 Difficulty in understanding actual situationsof disciplinary measures against suppliers,
because practices of disciplinary measuresdiffer largely according to countries andregions. (supply chains)

✓

✓

✓

✓

✓

HealthsafetyDiscardt
Produce BtoB companies may face possible
occurrence of overtime work arising fromreceiving orders without consideration of
resources. (one’s company and supply chain) Not enough understanding on the degree ofimportance in working hour management
corresponding to working conditions thatdiffer according to countries/areas. (supply
chain)

Workinghours

Use

ProcureCore operation/Supply chain

Workplacecondition

R&D

and building material sectors

Value Chain

✓

✓

✓

28

Transport

Sell

Use

DiscardFreedomofassociation

Produce

Forced Labour

Value Chain
ProcureCore operation/Supply chain

Discrimination

Concrete issues

R&D

Key human rights issues in chemicalandbuilding
material
sectors(continued)

During work

 Cases of discrimination issues differ in areas
and time (for instance, discrimination against
sexual minorities has occurred in 2015).
Elimination of discrimination during work
globally remains unsolved. (one’s company
and supply chains)
 Possible risks of violating human rights ofdisabled people due to the delay ofdevelopment of working places. (one’s
company and supply chains

✓

✓

✓

✓

✓

✓

✓

Redundancy
anddismissal

 Clear and convincing selection standards
may not be presented during redundancy anddismissal (one’s company and supply chain) Possible risks such as taking a legal casefrom not conducting an appropriate
communication based on standards of
judgment for redundancy.
(one’s company
and supply chains)

✓

✓

✓

✓

✓

✓

✓

Deposits andpapers There are high reputational risks during
occurrence of forced labour, because thepresence or absence of migrant workers is
not globally and comprehensively identified.
(one’s company and supply chains)

✓

✓
✓

✓

✓

✓

✓
✓

✓

Forcedovertime BtoB companies may possibly demand
forced overtime, because they receive orders
without consideration of their resources(volunteer overtime work ends up being
overtime work) (one’s company and supply
chains)

✓

✓
✓

✓

✓

✓

✓

✓

Trafficking
in human There are high reputational risks during
occurrence of forced labour, because thepresence or absence of migrant workers is
not globally and comprehensively identified.
(one’s company and supply chains)

✓

✓

✓

✓

✓

✓

✓

Freedom of
association
andcollective
bargaining Possible risks of facing a productionsuspension due to occurrence of strikes andboycotts, if negotiation between management
and labour is not conducted correctly. (one’s
company and supply chains) Employees may not have a means to discuss
issues related to labour without interferenceof companies. (one’s company and supply
chains)

✓

✓

✓

✓

✓

✓

✓

29

Concrete issues

Value Chain
R&D

ProcureProduce

Transport

Sell

Use

DiscardCore operation/Supply
chain

Freedomofassociation

Conflict
with
local
law

 Possible risks of facing a productionsuspension due to occurrence of strikes andboycotts, if negotiation between management
and labour is not conducted correctly. (one’s
company and supply chains) Employees may not have a means to discuss
issues related to labour without interferenceof companies. (one’s company and supply
chains)

✓

✓

✓

✓

✓

✓

✓

Community

Resources

Useof
naturalresources The industry may give a huge impact to local
communities, as it uses a relatively large
amount of resources and has a potential forcausing pollution damage by discharge andleak of hazardous materials. (one’s company
and supply chains)
 Possible risks of water depletion due toconstruction of factories and deforestation.
(supply chains)
 Possible risks of causing an adverse impact
on local communities due to depletion ofnatural resources. (supply chains)

✓

✓
✓

✓
✓

✓

✓

✓

✓

Society and government

Key human rights issues in chemicaland building material sectors(continued)

Relations withgovernments

Bribery andcorruption

 Due to an extension of the scope of
application of legislation on bribery andincrease in enormous surcharge payment,
there are potential impacts of giving tostakeholders such as employees and investors(one’s company and supply chains) Bribery and excessive treatment to foreign
public officials, risks of excessive payment tosmoothen transactions, risks of receiving anorder of suspension of operations from notengaging. (one’s company and supply chains)

✓
✓

✓

✓  ✓
✓

✓

30

Concrete issues

4.5.3

Discard Potential risks of causing health hazards toconsumers, because chemical materials areused. Also, risks are present if information onvalue chains is not properly shared. (one’s
company and supply chains)

Use

HealthsafetySell

Relations with
consumers

Transport

 Potential risks of being involved in violationsof human rights due to operations incountries with poor human rights activities.
(one’s company and supply chains) Potential risks of being involved in violationsof human rights by gaining permissions fromlocal governments (reputational risks byoperations in countries with poor humanrights records and risks involved in humanrights abuses) (one’s company and supply
chains) Potential risks of squeezing profits, because
it requires more resources to undertake
activities to raise awareness of human rights.
(one’s company)

Produce

Gov’ts withpoor humanrightsrecords

ProcureSociety and government

Relations withgovernments

andValue Chain
R&D

Key human rights issues in chemicaland building material sectors(continued)

✓
✓

✓

✓

✓

✓

✓

✓

✓

History of Revision (July, 2016)1.

The sector reviewed supply chain and the segment name of supply chain.

2.

The sector recognized the importance of focusing on upstream supply chain, following considerationon the opinions of NGOs/NPOs and discussions on the SDGs contents.

3.

Based upon the gained understanding, the sector reviewed the key human rights outlined in UNEP
FI and recognized the importance of understanding and addressing invisible risks thoroughly insupply chain stages of “procurement” and “produce”.

4.

The sector created a double-check status(✓✓) to emphasize great risks in upstream supply chain.

31

4.6

Food

Key human rights issues in food sector

DiscardUse

Sell

・ Wage levels are lower than local standardof livingTransport

Wages

Manufacture

・ Long working hours may be a burden at
manufacturing factories including thoseof supplirs and within logistics networks
that distribute the goods due to low wages
not matching local standards of living,and piece-rate work.

Buy

Working hours

Value Chain
CreateCore operation / Supply chain

Workplaceconditions

Concrete issues

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

・ Proper wages are not paid to workers due
to application of piece-rate work・ Improper low wages in under TechnicalIntern Training Program
Health andsafety・ Risk of jeopardizing health and safety of
employees and workers in production(including supply chain) and R&D
processes, due to causes such as
mis-handling of chemical substances andagri-chemicals, and inadequate health andsafety programs.

✓

・ Accidents during operation of vehicles
Discrimination

Employment

 Risk of discrimination during therecruitment process, based on race,
gender, religion, origins, sexual
orientation, disabilities, beliefs in local
employment.

✓

✓

32

Key human rights issues in food sector(Continued)

Concrete Issues

Value Chain
Manufacture

Transport

Sell

DiscardBuy Non-Japanese employees/workers may notproperly get access to safety education
because of language barriers.
 Insufficiency in safety trainings for
temporary employees/workers
 Temporary employees/workers may sufferfrom precarious employment.

✓

✓

✓

✓

✓

✓

Assessment
and Treatment

 Risks of discriminatory assessment andtreatment based on race, gender, religion,
origins, sexual orientation, disability,
ethnicity, belief

✓

✓

✓

✓

✓

✓

Child labour－

 Child under the minimum labor age may
possibly be employed at suppliers of raw
materials
 There is a risk that children lose the right toeducation.

✓

Forced orcompulsory
labour－ Production is often concentrated inparticular time periods, due to seasonalityof products in our sectors. Forced overtime
work may be observed in the busiest
periods.
 Risk of forced labour against immigrant
workers
 Risk that illegal immigrants may receive
inhumane treatment.
 Exploitation of technical intern trainees andtheir involvement in dangerous work

✓

✓

✓

Freedom of
association andcollective
bargaining

Conflict withlocal law

 Freedom of association and the rights ofcollective bargaining under international
human rights law may not be fully ensured
in countries in which unions are notpermitted, or unions are permitted but
poorly implemented.

✓

✓

33

Use

CreateCore operation / Supply chain

During work

Discrimination

Key human rights issues in food sector(Continued)

Concrete Issues

Value Chain

Society and government

Relations withgovernments

Bribery andcorruption✓✓

 Risk of deprivation of the rights of local
people by enclosures of agricultural
lands

✓

✓

 Bribes may be demanded of a company
when it expands its business anddevelops a new store at the stage ofobtaining approvals and licenses forland acquisition, and manufacturing.

✓

✓

34

Discard Titles to the land of local people orindigenous groups may be ignored,
especially when constructing factories.

Use

Title to land

Sell

Access to land✓

Transport

 Large-scale commercial agriculture,
fishery and forestry at suppliers of raw
materials increase risks of decrease inagricultural production and fish hauls ofsmall-scale community operations
 Large-scale commercial agriculture andforestry may also adversely impact onaccess to water for the community andlocal ecological systems
 Culturally / historically / religiously
important sites for local communities orindigenous people may be damaged.
 A single crop production (change tocash crops) may cause a loss of foodself-sufficiency system.
 Construction of factories may cause
damage on the access right to water of
local people living in proximity withthem.
 Water risks due to climate change

Manufacture

Use of natural
resources

Buy

CreateCommunity

Resources

Key human rights issues in food sector(Continued)

Concrete Issues

Value Chain

Provision ofproperinformation

 Risks to consumer health frominadequate labelling Incorrect understanding of consumers
on food caused by insufficient provisionof knowledge on food for consumers✓ ✓Responsible
marketing Risks of leading consumers (especially
young people) to wrong food eating
habits due to improper marketing.

✓ ✓Quality control

 Risks of harming the health of
consumers when quality control is not
fully practiced.
 Intentional quality obstruction-

 Risks of leaking personal information
gained through consumer campaigns,
mail order sales, and member
registration

✓

✓

✓

✓

✓

✓

✓

35

Discard

Use

Sell

Transport

Manufacture

Privacy Protection

Buy

CreateConsumer

Health and safety4.7

Consumer Goods (sports and daily goods)

Key human rights issues inConcrete issues

Core operation / supply chain Long working hours may be caused by (a) production
schedules that presuppose overtime work, as well as inattempting to meet delaines in the sewing process in
upstream, (b) low wages not matching local standardsof living, (c) piece-rate work, and (d) repair work of alarge volume of inferior products
 Rest days required by law may not be given, and limitsof overtime hours may not be regulated due toimproper labor management.

✓

✓

✓

✓

Wages

 Pressure from buyers for cost reductions may result in
infringement of minimum wage legislation.
 Frequent revisions of minimum wages in somecountries may result in infringement of minimum
wage legislation.
 Risks that proper rewards for overtime hours are notpaid, caused by poor compliance with laws and poor
labor management.
 Proper rewards for productivity may not be paid.

✓

✓

✓

✓

Healthandsafety Education on safety and health, including emergency
drills, first-aid drills, and handling instructions on
toxic chemical substances may not be conducted or
may not be conducted properly.
 Insufficient efforts to improve a harmful working
environment to heaths such as loud noise, vibration,
temperature, ventilation and exhaust may cause heathhazards. Risks of having pregnant women and young
people engage in dangerous or injurious work.
 Workers may be exposed to danger and harm due toaging buildings, illegal construction and improper
provision of emergency exits and escape routes.

✓

✓

✓

Harassment

 Workers may be exposed to physical, sexual, mental
and verbal harassment and abuses.

✓

✓

✓

✓

36

DiscardWorking
hours

Use

Sell

Manufacture

Transfer

Buy

Working
Conditions

Createconsumer goods sector

Value chains

Key

human

rightsissuesinConcrete issues

✓

✓

✓

Duringemployment

 Risks of conducting an unequal recruitment andemployment that place limits on gender, age,race and religion.
 Risk of facing gender, age, race and religion
inequality in working places, training andpromotion opportunities.

✓

✓

✓

✓

✓

✓

Minimumage Children under the minimum age may bepermitted to work without confirmation of theiridentification papers, or based on forged papers.
 Children under the minimum age may be
exposed to child labor due to poverty.

Forced orcompulsory
labourForcedovertime

 Workers may be forced to work by violence,
threat of violence, and any other forms ofviolence.
 Workers may be forced to do overtime work.
 Workers may be forced to work in labor
conditions that they do not agree with, and labor
contracts are not shown in a written format.
 Foreign technical trainees in Japan may be
restricted on their liberty, due to deprivation of
Certificate of Alien Registration (card), passport,
and residence card, and forced deposits.
 Immigrants and refugees overseas may be forced
to work by being taken an advantage of theirvulnerabilities.

✓

✓

✓

 Companies may refuse formation of labor unions
and collective bargaining without any legitimate
reasons, and may give disadvantageous
treatment and dismissal to union members.
 Workers may get fired by reasons of a strike.

✓

✓

✓

Human
trafficking

Freedom of
association

37

Discard✓Use Improper contents of rules of employment may
cause improper disciplinary measures andtreatments.

Child labour

Sell

Manufacture

Disciplinary
measures

During work

Transfer

BuyCore operation / supply chain

Working
Conditions

Createconsumer goods sector (continued)

Value chains

Key

human

rightsissuesinConcrete issues

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

Terrestrial
resources

 Manufacturing products may cause an adverse
impact on protection of forest eco-systems.

✓

Marineresources

 Manufacturing plastic products may cause an
adverse impact on protection of marine
eco-systems.

✓

Depletion ofnaturalresources Depletion of non-renewable natural resources
such as oil and gas

✓

Waste
disposal Risks of leaving waste disposals and dumping
wastes illegally from not using proper agents.

Discard✓ A large amount of water may be used during
production of raw materials such as cotton,cows, and natural rubber.

Use

 Use of a large amount of water in tanneries anddyeing factories, and pollution of rivers by
inflows of toxic chemical materials may cause an
adverse impact on the local environment andheaths of the local residents living around in
those affected areas.

Sell

Water stress

Transfer Efficient use of energy and reduction of CO2
emission. (climate change)

Manufacture

Globalwarming

Buy

Community

Resources

Createconsumer goods sector (continued)

Value chains

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

 Risks of harming the environment from making
less efforts to reduce wastes.
Consumer

Relationswithconsumers

Health and
Safety Inadequate efforts to create a positive impact for
promoting fair-trade, building an ethical market,
and raising awareness of consumers.

✓

 Inadequate efforts to enhance quality and safetyof goods and mitigate risks for consumers.

✓

✓

✓

✓

✓

✓

 Inadequate efforts to improve traceability ofmaterials and goods.

✓

✓

✓

✓

✓

✓

 Insufficient efforts to solve consumer issues
through goods and services.

✓

✓

✓

✓

✓

✓

38

✓

5

Priorities on the SDGs by Sector (draft)

5.1

Manufacturing (electricity, precision, machinery, others)

INCREASING POSITIVE IMPACT
SDGs #+

Reasons
Education
Education is important for all the segments of value chain
capacity building in areas with operations, human resource development,
capacity development for suppliers, education for local residents by employees etc.,
Employment (Promoting decent work)
SDGs Target Goals:8.2, 8.5
SDGs Target Goals:8.2, 8.5
employment creation, promotion of employment
RecycleSDGs Target Goals : 12.4, 12.5
Environment management through product-recycle, re-use of parts, re-use promoted
designs, publication of sustainability reports etc.,
Construction of infrastructure
Most of the SDGs 9 targets can be chekced.
Role in information infrastructure and city development.
Technology
SDGs Target Goal 17.6~17.8
Other items aggregated into technology. Key point for manufacturing industry.
Contribution to sustainable development through both hard and soft innovation
Sustainable forest management
SDGs Target Goals : 15.1, 15.2
Plantation of trees by volunteer employees (social contribution activities)

39

MINIMIZING NEGATIVE IMPACT
SDGs #-

Reasons
Peaceful, Justice, Effective system
Conflict minerals. SDGs Target Goals : 16.4
Addressing supplier issues in the electrical and electronic industry
SDGs Target Goals : 16.5
Prevention of any forms of corruption and bribery
Employment (Decent work)
SDGs Target Goals : 8.7, 8.8
Addressing human rights
Addressing forced labour issues and human rights issues of migrant workers
Waste of products
SDGs Target Goals : 12,4, 12.5
Management of waste through product life cycle
Damage to health of residents (esp. children) by e.g. illegal dumping of overseas
electronic equipment waste
Healthy life
SDGs Target Goals : 3.9
hazardous chemicals
air, water, and soil pollution
Accessibility of water and hygiene and sustainable management
SDGs Target Goals : 6.3
Reduction of pollution, Abolition of dumping
Minimising release of hazardous chemicals
Reducing by half untreated wastewater; re-use other half
Achieving gender equality
SDGs Target Goals : 5.1, 5.bPrevent discrimination to women in working conditions, and during promotion andtraining

40

5.2 Manufacturing (Infrastructure)

INCREASING POSITIVE IMPACT
SDGs #

Reasons
Contributing to solution for water shortages

Improving energy efficiency, e.g. hydrogen and turbine+

Using hydrogen to realise a fully recycling society.

Reducing carbon dioxide emissions
energy-saving products
renewable energy

41

MINIMIZING NEGATIVE IMPACT
SDGs #

Reasons
Violations of indigenous rights

Loss of educational opportunity for children due to child labour

Sub-standard labour and environment conditions in suppliers-

Environmental destruction by large carbon dioxide emissions during bothmanufacturing and usage stages

Risk of being involved in bribery and corruption when conducting
business in developing countries

Adverse impacts on ocean resources and terrestrial ecosystem

Advertisements and other company publications can inadvertently
contribute to human rights violations

42

5.3 Information, Communication, and Technology and Consulting

INCREASING POSITIVE IMPACT
SDGs #+

Reasons
Using IT solutions enables to build resilient infrastructure and promote innovationthat becomes current industries more sustainable.

IT solutions will be effective in addressing a wide range of issues of Goal 11,
including making cities sustainable through protecting people in vulnerable situations,strengthening resilience to disaster, reducing adverse environmental impacts, andpreventing crime, amongst others.

MINIMZINNG NEGATIVE IMPACT
SDGs #-

Reasons
As ICT technology can solve many issues, long hours and overwork tend to occur atthe stage of development research, leading to an adverse impact on the health of
employees.
Abuse of advanced ICT technology can lead to several risks, including damage tosocial infrastructure services and leaks of information.

Abuse of advanced ICT technology can also result in threats to peaceful and inclusive
societies

43

5.4 Transport and Logistics

INCREASING POSITIVE IMPACT
SDGs #+

Reasons
Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrializationand foster innovation
We can contribute to SDG 9 through developing and adopting environment-friendly
transportation technology, e.g. through technology for sustainable fuels. (Create)
We can contribute to SDG 9 by developing reliable and resilient transport and logistics
infrastructure that supports economic and human development. (Transport)
Goal 8. Promote inclusive and sustainable economic growth, full and productive
employment and decent work for all
We can contribute to SDG 8 through promoting inter- and intraregional development,
through encouraging industrial, touristic, job creation, and cultural exchange. (Selling
and Transport)
Goal 11. Make cities and human settlements inclusive, safe, resilient and sustainable
We can contribute to SDG 11 by supporting relationships between cities and regions andcommunity development through providing safe and inexpensive transport and logistics.
(Transport)
Goal 7. Ensure to affordable, reliable, sustainable and modern energy for all
We can contribute to SDG 7 through improving the ratio of renewable energy and fuelefficiency within operations of e.g. ships, aircraft, and vehicles. (Transport)
Goal 12. Ensure sustainable consumption and production patterns
We can contribute to SDG 12 by promoting sustainable consumption and production,
through ensuring speedy and safe delivery of products, multi-modal transportation, andreducing food loss during the supply chain from crop harvest to the post-production
stage. (Transport)
Goal 14. Conserve and sustainability use the oceans, seas and marine resources forsustainable development
We can contribute to SDG 14 through promoting ballast water treatment systems, thereby
reducing the impact on the ecosystem of ballast water drainage. (Waste)

44

MINIMIZING NEGATIVE IMPACT
SDGs #

Reasons
Goal 7. Ensure to affordable, reliable, sustainable and modern energy for all
We can reduce negative impacts on SDG 7 through increasing ratio of Green Energy
and fuel efficiency.(Purchasing)Goal 13. Take urgent action to combat climate change and its impacts
We can reduce negative impacts on SDG 13 by reducing emissions of CO₂ and othergreenhouse gases during transportation (Transport)
Goal 3. Ensure healthy lives and promote well-being for all at all ages
We can reduce negative impacts on SDG 3 by preventing accidents during shipping,taking measures to implement the Piracy Act, and preventing oil spillage. (Transport)-

Goal 8. Promote sustained, inclusive and sustainable economic growth, full andproductive employment and decent work for all
We can reduce negative impacts on SDG 8, by addressing appropriately issues of longhours and foreign labourers (including Technical Intern Training Programme labourers)
and not being complicit in the transport of victims of human trafficking or forced
labour. (Transport)
Goal 16. Promote peaceful and inclusive societies for sustainable development, provide
access to justice for all and build effective, accountable and inclusive institutions at alllevels
We can reduce negative impacts on SGS 16 by preventing any corruption or bribery,and ensuring we do not transport prohibited goods. (Transport)
Goal 12. Ensure sustainable consumption and production patterns
We can reduce negative impacts on SDG 12 by preventing waste and ensuring
recycling of transport equipment, materials, and foodstuffs for passengers. (Waste)45

5.5 Chemical and Building Materials

INCREASING POSITIVE IMPACT
SDGs #

Reasons
Useful materials that contribute to the world such as sanitary fittings (utility products),
medical suppliers, healthy, water pollution

Useful materials that contribute to the world, such as access to sanitary facility,
water-saving, water reuse

Useful materials and facilities that contribute to improvement of energy efficiency,such as power generation, storage of electricity, energy saving

Promoting decent work is fundamental for achieving the above sustainable
development agendas+

Useful materials and facilities that contribute to construction of resilient infrastructure(Developing countries)

Useful materials and facilities that contribute to construction of resilient infrastructure(Developing countries)

Recycling plastic and packing materials contributes to elimination of waste andeffective use of natural resources

Useful materials addressing climate changeThis industry consumes a large amount of energy in manufacturing and can shareknow-how with others

46

MINIMZING NEGATIVE IMPACT
SDGs #

Reasons
Causing water pollution must be avoided

Promoting decent work is fundamental for accomplishing the above sustainable
development agendas
Exposure to chemical substances or other hazardous substances must be avoided

Challenges in eliminating plastic trash in the ocean

47

5.6 Food

INCREASING POSITIVE IMPACT
SDGs #

Reasons
Developing nourishment-rich foodProviding healthy and functional foodDeveloping high production value crops and food by gaining knowledge on food+
Employment for a large number of manual laborers
Securing employment in rural areas
Loss of food reduction and effective use of food48

MINIMZING NEGATIVE IMPACT
SDGs #

Reasons
Mass sales of food considerably lacking nutritional balance
Sales of malnutritional food by large amount of corporate advertisement

Unequal working environment for women

Use of a large amount of water (agriculture, processing)
Shortage of drinking water due to exploitation of a large amount of undergroundsources
Child labour and forced labour
Poor working conditions (cold/hot)-

A lot of food waste

CO2 emissions during transportation
Deforestation
Slash-and-burn farming
Overfishing
Discharging pesticides from factories to rivers

Pesticide spraying and genetic modified products for mass production
Single crop cultivation at plants
Felling primacy forests (biodiversity and indigenous peoples)49

5.7 Consumer Goods (Sports Goods and Daily Goods)

INCREASING POSITIVE IMPACT
SDGs #

Reasons
Companies of the consumer goods sector have opportunity to raiseawareness on health, and promote health and address lack of exercise
through sports
Reducing a large amount of water usage during the use of products canensure access to sustainable water resource+

Contribution to empowerment of women by selling and using personalcare products and cosmetics

MINIMIZING NEGATIVE IMPACT
SDGs #-

Reasons
Challenges in identifying problems on labour and human rights in
upstream supply chains

Consumer goods manufacturers are using limited natural resources tomanufacture their products. Therefore they need to work towards thesustainable use of the resources
Use of hazardous chemicals poses the risk of water pollution in supply
chains. Measures need to be taken to prevent such pollution

Large amounts of plastics used for products, packaging and raw materials(e.g. microbeads) may cause marine pollution. Measures need to be taken
to prevent such pollution

50