SDGs
Progress Report

2023

Survey Results on the Initiatives of
GCNJ Business and Non-Business ParticipantsContents
１．Introduction… ……………………………………………………………………… 6
２．International and National Trends on the SDGs… ………………………… 9
３．SDGs Survey Result and Interpretation… ………………………………… 17
3.1

Awareness and Penetration of the SDGs………………………… 19

3.2

Gender Equality………………………………………………………… 26
~ The urgent need to shift from "women's active participation"
to "gender equality" ~3.3

Decent Work and Human Rights…………………………………… 38
~ Amid global crises, Japanese companies must accelerate
and expand efforts in business and human rights ~3.4

Circular Economy… …………………………………………………… 48
~ Transitioning to a new economic system that goes beyond
the 3Rs ~3.5

Climate Change… ……………………………………………………… 58~ Progress on climate action towards 2030 ~3.6

Preventing Corruption… ……………………………………………… 66
~ Moving toward the practice of an effective risk-based
approach ~3.7

Common Challenges for the Five Goals… ……………………… 76
~ Going beyond policies and commitments to signing initiatives
is key to further progress ~3.8

SDGs Initiatives by Non-Business Participants… ……………… 81

４．Conclusion… ……………………………………………………………………… 84
５．Relevant Data on the SDGs Survey… ……………………………………… 88
5.1

List of Respondents… ………………………………………………… 89

5.2

Summary of Survey Results… ……………………………………… 94

Abbreviations and Acronyms
Circular Economy

CE

Communication on Progress 

CoPConvention on Biological Diversity 

CBD

Coronavirus disease 2019  

COVID-19

Diversity, Equity & Inclusion 

DEI

Due Diligence DDGreen Transformation 

GXIntergovernmental Panel on Climate Change 

IPCCInternational Organization for Standardization 

ISOJapan Partnership for Circular Economy 
Key Performance Indicator  
Organization for Economic Co-operation and Development 

J4CE
KPI
OECD

Science Based Targets Initiative

SBTi

Sustainable Consumption and Production 

SCP

Sustainable Development Solutions Network 

SDSN

Task Force on Climate-related Financial Disclosures 

TCFD

Taskforce on Nature-related Financial Disclosures

TNFD

United Nations Department of Economic and Social Affairs 

UNDESA

United Nations Framework Convention on Climate Change 

UNFCCCWEPs Transparency and Accountability Framework 

TAF

Women's Empowerment Principles 

WEPsWorld Health Organization WHOForeword
We are pleased to present to you the 2023 SDGs Progress Report. The United Nations Global
Compact was called upon in a UN General Assembly resolution to play a "vital role" in the

promotion of the SDGs. The Global Compact Network Japan (GCNJ) bears this responsibility inJapan. The SDGs Progress Report traces its roots to the autumn of 2016, when the SDGs enteredinto force. In collaboration with IGES, a study was launched targeting GCNJ business participants
and non-business participants (local governments, associations, and academia). This year marks
the seventh issue of the report.

When participants' level of awareness of the SDGs exceeded 90% in 2022, we shifted our focus toin-depth survey and analysis by experts, narrowing the scope to priority goals. Last year's survey

indicated that Japanese companies were lagging behind in some areas, including gender equality
and business models. The current report gives readers a view to the overall shifts that took placeover the past year. This report is designed to serve as a benchmark for measuring progress on

the SDGs in Japanese companies and organisations, providing  a useful tool for all in developing

management strategies. I would like to take this opportunity to thank all of our participants who
took the time to respond to the detailed questions.

The year 2023 marks the "halfway point" between the launch of the SDGs and their final year of2030. UN Secretary-General Guterres has stated that the SDGs will be difficult to achieve if we
remain on our current course. In the meantime, the world's population surpassed the 8 billion

mark last year. Increases were mainly in regions where CO2 emissions are expected to increase
alongside economic growth, such as India and Africa. Japan, on the other hand, is faced witha myriad of challenges as its population continues to shrink. Not only must Japan respond toproblems at home, our country is also called upon to take a leadership role in solving challenges

faced around the world and issues plaguing our entire planet. In this regard, guiding principles andgoals for actions on the part of all can be found in the Ten Principles of the UN Global Compact
and the SDGs.

Last but not least, the release of this report coincides with a complete revision of theCommunication on Progress (participant activity report to the UN Global Compact). Accordingly,
we will also conduct a review of the SDGs fact-finding survey for 2023. Once a course of action
has been decided, we will be sure to inform you.

GCNJ will continue to make every effort to be of service to you. We look forward to yourcontinued support.

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

4

Foreword
At the end of last year, the Kunming-Montreal Global Biodiversity Framework was adopted at thesecond part of the UN Biodiversity Conference (CBD COP15) held in Montreal. The framework

set the "30 by 30 target" that calls for conserving 30% or more of terrestrial and marine areas by2030. Meanwhile in Japan, deliberations are underway on the next National Biodiversity Strategy

that reflects the new framework. The strategy is expected to be approved by Cabinet Decision in

March of this year. Moreover, in September of this year, the Task Force on Nature-related Financial
Disclosures (TNFD) is expected to publish a framework for information disclosure targeted at theprivate sector.

The new biodiversity framework is closely connected to the 1.5 degree target for climate change
and the SDGs. Therefore, promoting highly synergistic efforts to achieve all goals is essential. The

United Nations has also become increasingly aware of this issue. In July last year, the Third Global
Conference on Strengthening Synergies between the Paris Agreement and the 2030 Agenda

for Sustainable Development (Synergies Conference) was held at the United Nations University

Headquarters in Tokyo, co-convened by the United Nations Department of Economic and Social
Affairs (UNDESA) and the United Nations Framework Convention on Climate Change (UNFCCC)
Secretariat, and hosted by the Ministry of the Environment of Japan. As synergies are also an

important perspective when considering post-SDGs, further discussions are expected to develop in
the future.

IGES, an official partner in the Synergies Conference, was closely involved in the conference's
organisation. I myself had the opportunity to launch the English version of the SDGs Progress
Report 2022 at the plenary along with GCNJ Board Member, Ms. Sandra Wu.1 Through theirvarious commitments and contributions, Japanese companies have an important role to play in theinternational community. Among them, GCNJ participants in particular are expected to play a leadingrole. As the launched report provides the latest summary of their progress on the SDGs, it was a great
opportunity to disseminate valuable information to SDG stakeholders in Japan and abroad.

The SDGs approach the halfway mark and the remaining years to 2030 have been called the"decisive decade for the future" on building a sustainable society by the middle of this century.

The challenges we face on a sustainable pathway simultaneously present golden opportunities

to create a society that will bring about new prosperity. This report analyses the progress madeby GCNJ business participants from a backcasting perspective, focusing on five of the SDGs. We

sincerely hope that companies will extensively utilise this report to promote initiatives with a viewto synergies, evaluate their progress, and further strengthen their efforts.

Kazuhiko Takeuchi
President
Institute for Global Environmental Strategies (IGES)
 See the Conference Report by the organisers for more information:…
https://www.un.org/sites/un2.un.org/files/the_third_global_conference_report_11.08.2022.pdf

1

5

1

Introduction:
The 2022 SDGs Survey

This section gives an overview of the SDGs

showed that more than 70% of companies

Survey to date.

were disseminating information on the
SDGs via internal newsletters and websites.

Background

Accordingly, we consider the objectives ofThis volume is the seventh issue in a series ofthis survey on awareness and penetration ofreports based on SDGs fact-finding surveys

the SDGs to have been achieved.  

that began in 2015. When the survey waslaunched in 2015, the SDGs were little

Therefore, in 2021, the focus of the survey

known and largely had yet to penetrate

shifted from awareness and penetrationcompanies. Accordingly, until 2020 theamong business participants of GCNJ tomain objective of the survey was to assessmeasuring the quality of their initiatives onawareness of the SDGs and penetration

the SDGs.

within companies. However, the 2020 survey
found that awareness of the SDGs within

Specifically, in addition to questions oncompanies had risen to approximately 90%

integrating the SDGs into management,

among management and half among middle

priority goals, and challenges faced, themanagers and employees. Moreover, results

survey was revised to measure progress on

From the "SDGs and Business" series to the "SDGs Progress Report"
Measuring awareness and penetration of the SDGs
+ in-depth exploration on specific topics

Measuring the quality of
initiatives on the SDGs

Launched in 20166

Introduction

five goals, including the four goals (SDGs 5, 8,

FY2022 Survey

13, and 16) that the UNGC announced it will

This issue reports on the second year of thelead in its 2021-2023 strategy. To these wesurvey designed to measure the quality ofadded SDG 12, a goal that many Japaneseinitiatives on the SDGs, continuing to focus oncompanies, particularly in manufacturing,

progress on the five goals. The survey content

selected as a priority. In analysing andbasically followed that of the previous survey

discussing these five goals, we focusedto reveal progress from the previous year. The

on the topics of "gender equality", "decent

survey was updated somewhat to include

work and human rights", "circular economy",questions that delve deeper into issues that"climate change", and "preventing corruption",emerged in the previous survey.

which are important issues for the activities
of companies and organisations. They are

See p. 17 for an overview of the survey andalso closely linked to the four areas of thep. 94 for a summary of the results of all
survey questions.

Ten Principles of the UN Global Compact(human rights, labour, environment, and anti-

Since last year, GCNJ participant companies

corruption).

that responded to the survey have been sent
The survey questions relating to these"response results" along with a "feedback

five goals cover initiatives that should besheet", which allows them to look back on

implemented by 2030, the goal year of

their own responses. The feedback sheet not

the SDGs. We asked experts to design the

only shows the progress made on each of thesurvey so that business and non-businessfive goals since the previous year, but also

participants of GCNJ could use it as a checklist

provides a visual comparison with companies

to monitor progress towards 2030. Pleasein the same industry and companies of similarrefer to the SDGs Progress Report 2022 forsize (number of employees). It can therefore

the previous survey's results on progress onserve as a reference for companies when

the five goals.

taking stock of their initiatives and promoting
them in the future.

フィードバックシート：内容例
SampleFeedback Sheet
Example: Gender equality (overview)

例：ジェンダー平等全体

1) Comparison with previous year and othercompanies' responses①前年及び他社回答との比較

2) Year-on-year comparison for
individual survey question (Q13)②設問ごとの前年比較（Q13）

7

1

1

Introduction

Previously, the survey conducted for business<Year-on-year comparison>and non-business participants of GCNJ wasCompared to FY2021, GCNJ participants

identical. Starting this year, separate survey

increased by approximately 20% over thecontent was used for companies and non-period of one year, and the number ofbusinesses.

responding participants increased by 25%.
For a detailed breakdown of responding

Information on initiatives that non-businesscompanies, see p. 18.

respondents gave us permission to disclose
is presented in a supplementary volume(available only in Japanese).
Respondents to the FY2022 Survey<Response rate>
Approximately 55% of GCNJ participants
responded to the survey. The percentages ofcompanies and non-business organisations

SDGs
進捗レポートare as follows.

2023<Survey respondents>
Over 90% of respondents were companies,

別冊

GCNJノン・ビジネス会員による連携・協働の取り組み

and just under 10% were non-businessorganisations. These percentages roughly

Cover of the "SDGs Progress Report
Supplementary Volume"
URL: https://www.ungcjn.org/activities/
topics/detail.php?id=547

match the ratios among GCNJ participants
overall.

Survey response rate
4%

41%

51%

GCNJ business participants (responding)
GCNJ non-business participants (responding)
GCNJ business participants (non-responding)
GCNJ non-business participants (non-responding)4%

Ratio of GCNJ participants responding to the survey (year-on-year comparison)
223

2021

279

2022
0

100

Responding214

Non-responding
234

200

300

8

400

500

600

2

International andNational Trends on
the SDGs

In this section, we will first look at the state

are indicated below.

of progress on achieving the SDGs at theinternational and national levels, and identify

・Global "excess deaths", including those

short- and long-term global risks that could

indirectly attributable to COVID-19,

impact the achievement of the SDGs, utilisingreached 15 million at the end of 2021.

three reports that are key to understanding・More than four years' worth of progress on

trends related to the SDGs. Next, we introduce

eradicating poverty was cancelled out.

a highlight of recent developments related to・Conflict, COVID-19, climate change, andthe five goals that are the focus of this volume,

rising inequality have undermined global

the SDGs Progress Report 2023, based on input

food security, with about one in ten people

from the experts who wrote sections 3.2 to 3.6.

worldwide suffering from hunger.
・In the two-year period from 2020-2021,
147 million children lost more than half ofProgress on the SDGs and risks
that could impact achievementof the 17 goals

their face-to-face learning opportunities.
・Women suffered greater impacts ofProgress at the international level

unemployment and faced increased care

On 30 January 2020, the World Healthwork at home. Some evidence points to

Organisation (WHO) declared  that thethe fact that violence against women was

outbreak of the Coronavirus disease 2019

exacerbated by the pandemic.

(COVID-19) constituted a Public Health・Immunisation rates fell for the first time in a

Emergency of International Concern. Three

decade, and deaths from tuberculosis andyears later, as of 30 January 2023, moremalaria increased.

than 670 million people worldwide have・The COVID-19 pandemic amplified income

been infected and more than 6.8 million haveinequality between countries for the first

died. Meanwhile, Russia's invasion of Ukraine

time in a generation.

has not only threatened world peace, but

・The number of refugees displaced fromalso brought food and energy  crises andtheir country of origin increased by 44%

risks to people's livelihoods. The Sustainable

between 2015 and 2021.

Development Goals Report 2022, published・Global dependence on natural resourcesby the UN in July 2022, reports that theincreased by more than 65% from 2000 to

climate crisis, the COVID-19 pandemic, and2019.

increasing conflict around the world are・An estimated 17 million tonnes of plastic

putting the achievement of the 17 SDGs atflowed into the world's oceans in 2021,

risk. A portion of these grim circumstanceswith a further two to threefold increase92International and National Trends on the SDGs

projected by 2040.

challenges" for Japan include: the number of・10 million hectares of the world's forests

women in parliament, the gender pay gap,

are destroyed each year, 90% of which isthe share of renewable energy in primary

due to the expansion of agricultural land.

energy supply, electronic waste, exports of・The debt to gross national income (GNI)

plastic waste, CO2 emissions from fossil fuelratio in sub-Saharan African countries rose

combustion and cement production, CO2from 23.4% in 2011 to 43.7% in 2020.

emissions from imports, and carbon pricing
score. Aside from the five goals, "major

Progress at the national level

challenges" include the poverty rate after

Countries' progress on the SDGs is scoredtaxes and transfers; marine, terrestrial, andand ranked in the Sustainable Development

freshwater biodiversity threats from imports;

Report, published annually by the Sustainable

concessional public funding, including Official

Development Solutions Network (SDSN) and

Development Assistance; and the financial

the Germany-based Bertelsmann Foundation.

secrecy score (ease of hiding income andLooking first at the overall situation, the reportcriminal money laundering by the wealthy).

points out that complex crises such as military

The underlined items above correspond toconflicts like the war in Ukraine and health"major challenges" involving spillover effects.

concerns are diverting policy attention andpriorities away from medium- and long-term

Moreover, like Japan, other developed

goals like the SDGs and the Paris Agreement,

countries that are actively addressing thewhich could delay or stall the adoption

SDGs, including Nordic countries, Germany,of ambitious and credible national andand Austria, also show a tendency to scoreinternational plans. Meanwhile, for the second

low in terms of spillover effects. This trend

year in a row, the world is no longer making

implies that wealthy countries in particular

progress on the SDGs, with the average scoreneed to consider how they should addresson the SDG Index falling slightly. In particular,

environmental and social issues within

performance on SDG 1 (no poverty) and SDG

their own countries, while also giving due

8 (decent work and economic growth) in low-

consideration to impacts on other countries.

income and lower middle-income countries has

In addition, the Sustainable Development

fallen below pre-pandemic levels.

Report calls upon countries to curb thesenegative spillovers by following measures:Japan's score for 2022 was 79.6, placing

1) increase the scale of international

it 19th out of 163 countries (although thisdevelopment and climate change finance;is -0.02 compared to last year's score, it2) utilise technical cooperation and SDGs

is on a slightly increasing trend from 75 in

diplomacy; 3) adopt national targets

2016 and 78.9 in 2019). The Sustainable

and measures to address the impacts ofDevelopment Report also publishes scoresconsumption on other countries; 4) strengthen

and rankings for spillover effects on othermonitoring and data systems covering entire

countries, as rich countries create negative

supply chains at the international, national,

international spillover effects, especiallyindustry, and corporate levels and include

through unsustainable consumption. In thisthese in SDGs reporting.

regard, Japan scored 67.3 and ranked 134th.
Short- and long-term risks
For the five goals that are the focus of

The Global Risks Report, published annually

this SDGs Progress Report 2023, "major

by the World Economic Forum (WEF),

10

International and National Trends on the SDGs

identifi…es…global…risks…that…could…impact…the…

unrest…and…political…instability,…with…eff…ects…

achievement…of…the…SDGs.…Based…on…a…survey…

spreading…beyond…emerging…markets.

of…more…than…1,200…global…risk…experts,…
policymakers,…and…industry…leaders,…the…report…

The…long-term…risks…over…the…next…decade…are…

ranks…the…most…serious…global…risks…that…

"failure…to…mitigate…climate…change",…"failure…

Risks that are growing in severity over the
are…expected…to…occur…in…the…coming…two-longer term include “Biodiversity loss andyear…period…and…those…that…are…expected…to…
ecosystem
collapse”
and“Misinformation
andRisks that are
growing inseverity
over thedisinformation”.
Amongother technologicalrisks,
longerterm
include“Biodiversity
loss
andbecome…most…severe…in…the…coming…decade.
asindicated collapse”
in the far left
the graph, “Digital
ecosystem
andof“Misinformation
andinequality and lackof accessto digital services”
disinformation”.
Amongother technologicalrisks,
and“Adverse
ofthe
frontier
as indicatedin outcomesthe far left ofgraph,technologies”“Digital
For…the…coming…two-year…period,…the…"cost-ofare also anticipateddeteriorate
overinequality
and lackto
ofsignificantly
access to digital
services”
living…crisis"…is…identifi…ed…as…the…biggest…shortthe
timeframe. of frontier technologies”
and10-year“Adverse
outcomes
are also anticipated to significantly deteriorate overterm…risk,…followed…by…"natural…disasters…and…

The
scores oftime
multiplesocial risks are also worsening,the 10-year
frame.
including “Severe mental health deterioration”,
extreme…weather…events"…and…"geoeconomic…
“Collapseof public
infrastructureandThe scoresorof lack
multiplesocial risks
are also worsening,
confrontation".…The…cost-of-living…crisis…is…
services”,“Severeand “Chronicand healthincludingmentaldiseases
health deterioration”,
conditions”.
contrast,
economicrisks such
attributed…to…energy…and…food…crises…and…
“Collapse or In
lackof public
infrastructure
andas “Failureandto stabilize
pricetrajectories”,“A
services”,“Chronic
diseasesandhealthinfl…ation.…If…supply-side…pressures…persist,…this…
prolonged
economic
downturn”,
conditions”.
In contrast,
economic “Collapse
risks such of asystemicallyindustryor supply “Achain”,
crisis…could…turn…into…a…more…widespread…
as“Failure toimportantstabilize pricetrajectories”,
and“Asseteconomic
bubble burst”
are perceived
to fallof
slightly
prolonged
downturn”,“Collapseahumanitarian…crisis…within…the…next…two…
in expected severity
over industry
the 10-yeartime frame.
systemicallyimportantor supply
chain”,

years…in…many…import-dependent…markets.…
and “Asset bubble burst” are perceived to fall slightly
in expected severity over the 10-year time frame.

The far right of the graph indicates that today’sof…climate…change…adaptation",…and…"natural…
most prominent risk, the “Cost-of-living crisis”, isdisasters…and…extreme…weather…events",…
anticipatedin severity
over thatthe longer
The far righttoofdrop
the graphindicates
today’sterm.

Towards the center, the scores of geopolitical risks
weremixed,towith
thein “Useof weaponsof mass
anticipateddrop
severity
over the longer
term.
collapse",…which…does…not…appear…in…the…top…
destruction”
remaining
consistent,“State collapse
Towards
the center,the scoresof geopoliticalrisksorsevereinstability”
and “Ineffectivenessofweremixed,
with the “Useof weapons of mass
ten…short-term…risks.…The…report…points…to…the…
multilateral institutions”
worsening“Stateand Interstate
destruction”
remaining consistent,
collapse
conflictperceived
as decreasing
in severity. of
threat…of…widespread…economic…and…social…
or severeinstability”
and “Ineffectivenessmost prominent risk, the “Cost-of-living crisis”, isfollowed…by…"biodiversity…loss…and…ecosystem…

multilateral institutions” worsening and Interstate
impacts…from…biodiversity…loss…and…ecosystem…
This
year,perceived
we look at
newly emerging
or rapidly
conflictasfivedecreasing
in severity.

accelerating risks clusters – drawn from thecollapse,…which…include…increased…zoonotic…

economic, environmental, societal, geopolitical andtechnologicalrisks
domains,
respectively– thatacceleratingclusters– drawn fromthecould
becometomorrow’s
crisis.societal,
We explore
their current
value;…confl…ict…escalation…due…to…increased…
economic,
environmental,
geopoliticalanddrivers and emerging
implications,brieflytouchtechnologicaldomains,
respectivelyand– thatcould
water…stress;…loss…of…livelihoods…dependent…on…
on
opportunities
to forestall
andexplore
reshapethese
becometomorrow’s
crisis. We
theircurrent
outcomes
acting today.
nature-based…services…such…as…food…systems…
driversandby
emerging
implications, and briefly touch
This year, we look at five newly emerging or rapidly
diseases;…reduced…crop…yields…and…nutritional…

on opportunities to forestall and reshape theseand…pollination;…and…dramatic…fl…ooding…and…
outcomes by acting today.

sea…level…rise…due…to…degradation…of…water…

meadows…and…coastal…mangroves.
F I G U RThe…report…also…states…that…continued…
E 2.2
Relative severity of risks over a 2 and 10-year period
hollowing…out…of…middle-income…groups…due…

FIGURE 2.2

Relative severity of risks over a 2 and 10-year period
to…economic…pressures…could…trigger…social…
The…relationship…between…short-…and…longHigher 6.0
severity

Failure to mitigate climate change
Failure of climate-change adaption

Higher 6.0
severity

Failure of climate-change
Biodiversity loss and ecosystem collapse
Large-scaleadaption
Natural disasters
involuntaryand extreme weather
Natural resource crises
migration
Erosion of social cohesion
Biodiversity loss and ecosystem collapse Widespreadcybercrime
Large-scaleand societal polarizationand cyberinsecurity
involuntary
Natural resource crises
Geoeconomic confrontation
migration
Erosion of social cohesion
Misinformation and disinformation
Large-scale
environmental
Widespread cybercrimeand societal
polarization
damage incidents
Ineffectiveness of multilateral institutions
and cyber insecurity
Geoeconomic
confrontationand international cooperation
Misinformation and disinformation
Large-scale environmental
Chronic diseases and health conditions
damage incidents
Ineffectiveness of multilateral institutions
Severe mental health deterioration and international cooperation
Interstate conflict
Debt crises
Cost-of-living crisis
Chronic
andAdversediseases
outcomesof health conditions
Failure to stabilize
frontier
technologies
Severemental health deterioration
price
trajectories
Interstate conflict
Debt crises
Cost-of-living crisis
Adverse outcomes of
Prolonged
economic
Failureto stabilize
frontier technologies
downturn
pricetrajectories
Digital inquality
Asset bubble burst
Prolonged economic
Terrorist attacks
downturn
Digital inquality
Asset bubble burst
Collapse or lack of public
infrastructure
Terroristattacks and services

5.0Long-termLong-term
severityseverity

Natural disasters
and extreme weather

Failure to mitigate climate change

5.0

4.0
4.0

Collapse or lack of public
infrastructure and services

3.3
3.3

4.0

3.3

5.0

6.0

5.0

Higherseverity
6.0

Short-term severity
3.3

4.0
Short-term severity

Risk categories

SourceEconomic

Environmental

GeopoliticalSocietalTechnological

Higherseverity

Figure: Relative severity over 2-year and 10-year periods (rated on a Likert scale of 1-7)
Economic
Environmental
GeopoliticalSocietalTechnological
Note(Source: World Economic
Forum Global Risks Perception Survey 2022-2023)

Risk categories

World Economic Forum Global Risks
Perception
Survey 2022-2023.
SourceSeverity was assessed on a 1-7 Likert scale [1 – Low severity, 7 – High severity].

World Economic Forum Global Risks
Perception Survey 2022-2023.

Severity was assessed on a 1-7 Likert scale [1 – Low severity, 7 – High severity].

Note

11
Global Risks Report 2023 30

2

2International and National Trends on the SDGs

term risks is plotted in the diagram below. In

Security Research in 2021, was “balancing

addition, the report includes a map showing

work and child-rearing,” surpassing "re-the interconnections of risk, which is a usefulentry into the workforce" (quit work afterreference for companies and organisations

marriage or childbirth and return later

when reviewing their risk perception.

at some point) that had been the mostcommon response for unmarried womenHighlights of trends forthe five goals

aged 18-34 for many years. There was alsoa sharp increase in women who viewed

Gender Equality (SDG 5)

remaining unmarried and continuingInternational trends

to work as the ideal life course, with

▶ North American and European countries,

the number reaching an all-time high.

and EU member states are increasingly

Unmarried men of the same age groupadding gender equality provisions to theirare also increasingly expecting their future

economic and trade agreements.

partners to balance work and family life,▶ Major Asian economies and regions

rather than re-entering the workforce at a

(China, Republic of Korea, Hong Kong,later stage of life.

Taiwan, Singapore, Indonesia, Philippines,▶ The government has launched policies

Thailand, and Vietnam) are acceleratingfrom the perspective of promoting gendertheir efforts in closing the gender gaps,

equality – moving beyond women’ssurpassing Japan's ranking in the Economic

advancement – and has begun to work

Participation and Opportunity sub-index

on reforms in households, workplaces,of the Global Gender Gap scores. In theseand the labour market, where gendercountries/regions, the stock exchanges aredivision of labour is entrenched. After the

mandating the disclosure of the current

provision on gender pay gap was included

percentage of women board members andin the "Intensive Policy for Women's

targets, as well as action plans by revising

Advancement and Gender Equality 2022

their corporate governance codes. The(Basic Policies Related to Women)," thenumber of companies signing the Women's

revised ministerial ordinance of the Act on

Empowerment Principles (WEPs) has risen

Promotion of Women’s Participation anddramatically, as well.

Advancement in the Workplace in July

▶ At the G7 Summit in June 2022, the2022 mandated companies with 301 orcommitment to gender equality was

more full-time employees to disclose theirstrengthened to add a new joint

gender pay gap data. The government ismonitoring mechanism. Japan assumes thealso moving toward making data disclosure

G7 Presidency in 2023.

mandatory for gender pay gap, ratio of▶ ISO (International Organization for

women in management, and parental

Standardization) is developing "Guidelines

leave uptake rate for men in the annual

for the promotion and implementation of

securities reports of listed companies. The

gender equality" to be released in 2024.

promotion of parental leave for men isalso a major measure that addresses theDomestic trends

disproportionate responsibility for unpaid▶ The majority of responses for the idealcare work on women, which is one of thewomen’s life course in the 16th Japanesereasons for the gender pay gap.

National Fertility Survey, released by the▶ According to the revised Child Care andNational Institute of Population and Social

Family Care Leave Law, from April 2022,

12

International and National Trends on the SDGs

companies are obliged to provide an▶ The 11th UN Forum on Business andenabling environment to take parental

Human Rights was held from 28-30

leave and individually inform and confirm

November 2022. The theme was "Rights

the intentions of eligible employees. From

holders at the centre". From Japan, Gen

October, a new system for taking parental

Nakatani, Special Advisor to the Primeleave at birth (as known as "papa kyuka")

Minister on human rights, delivered awill be established, and from April 2023,

speech.

companies are mandated to disclose theDomestic trends

status of parental leave uptake.

▶ In 2020, the Government of Japan▶ Reviews are underway in two areas set

formulated the National Action Plan onforth in the Intensive Policy for Women's

Business and Human Rights, and in June

Advancement and Gender Equality 2022:

2022, published a government report

tax and social security systems that

reviewing the first year of the plan'stake women's perspectives into account

implementation.

(special exemption for spouses and the▶ In September 2022, the Japanesecategory three insured persons system)

government published its first (and Asia's

and public procurement (point system forfirst) Guidelines on Respecting Humancompanies with Eruboshi certification). As

Rights in Responsible Supply Chains.

the G7 Presidency, Japan is in a position▶ Positive moves by companies and otherto lead discussions on the promotion of

stakeholders have been seen in parallel togender equality, and domestic policies

the formulation of government guidelines.

are expected to increase in keeping withIn July 2022, the Japan Textile Federationinternational commitments and trends.

published the Guidelines for Responsible
Business Conduct in the Textile andDecent work and human rights (SDG 8)

Clothing Industry of Japan. In September,International trends

the Japan Council of Metalworkers' Unions▶ In February 2022, the EU released its

published a guide entitled, "Trade unions’proposal for a Directive on Corporaterole and responses to human rights due

Sustainability Due Diligence. In September,diligence".

it also released a proposal for a regulation
banning products made using forced

Sustainable consumption

labour on the EU market.

and production (SDG 12)
International trends▶ In June 2022 in the United States, Section▶ The Organisation for Economic Co-

3 of the Uyghur Forced Labour Prevention
Act (presumption of import prohibition)

operation and Development (OECD)came into force.

published the Global Plastic Outlook, its
first report on plastic waste, in February▶ In the G7 Leaders' Communiqué of the2022 Elmau Summit, G7 leaders called

2022. The report calls attention to growing

for accelerated national and international

plastic pollution and delays in combating

efforts to eliminate forced labour fromit.

global supply chains and action in line with▶ The EU released a draft regulation on eco-the UN Guiding Principles on Business anddesign in March 2022. It proposes requiring

Human Rights. Leaders also agreed to work

companies to promote product design withtowards an international consensus onan awareness of circularity and to disclosebusiness and human rights.

information on the repairability of products

13

2

2

International and National Trends on the SDGs

and other environmental information.

Ministry of Economy, Trade and Industry,▶ The G7 Berlin Roadmap on Resource

and the Japan Business Federation

Efficiency and Circular Economy was(Keidanren), is now in its second year of

adopted as an annex to the Communiqué

activity. Based on periodic public-private

at the G7 Climate, Energy and Environment

dialogue, J4CE is advancing deliberations

Ministers' Meeting in May 2022.

on the promotion of corporate initiatives▶ At the resumed fifth session of the Unitedand necessary policy responses.

Nations Environment Assembly (UNEA-5.2)
in March 2022, the assembly determined a

Climate change (SDG 13)

shared urgency to address marine plastics

International trends

and decided to launch negotiations on the▶ In May 2022, at the Japan-Australia-

development of an international protocol

India-U.S. Leaders' Meeting (Quad), the four(convention). The First Session of theleaders announced the launch of the QuadIntergovernmental Negotiating Committee

Climate Change Adaptation and Mitigation(INC) was held from 28 November

Package (Q-CHAMP) to coordinate support

to 2 December 2022 to develop an

for climate change measures in the fourinternational legally-binding instrument on

countries and the Indo-Pacific region.
▶ The G7 Summit Leaders' Communiqué inplastic pollution.
Domestic trends

June 2022 announced the establishment▶ The second examination of the 4thof an international "Climate Club" by theFundamental Plan for Establishing a Soundend of 2022 and committed to achieving aMaterial-Cycle Society and the formulation

fully or predominantly decarbonised powerof the Circular Economy Roadmap weresector by 2035.

conducted in April 2022. These set a▶ The UN High‑Level Expert Group on the Net

course toward a sound material-cycle

Zero Emissions Commitments of Non‑Statesociety by promoting the circular economy

Entities, established by UN Secretary-

approach to realise a sustainable society

General António Guterres in March 2022,with a view to 2050, and accordingly,

released a report in November 2022

decarbonisation efforts based on resourcecompiling principles and recommendations

recycling throughout the life cycle are tofor non-state entities, such as businesses

be promoted.

and local governments, to follow when
making net zero declarations. The report▶ In October 2022, Study Group for
Designing a Growth-Oriented, Resource-

criticises efforts that are merely superficial

Autonomous Circular Economy is to be

and amount to greenwashing.
▶ In the G20 Bali Leaders' Declaration of

established. Stakeholders from the arterial
and venous industries, experts, consumers,

November 2022, G20 countries reaffirmed

and the IT sector will engage in discussions

their commitment to pursuing the 1.5

to form a shared awareness and makedegree target in line with the Glasgow

recommendations toward realising the

Climate Pact. Japan agreed to a Joint

Circular Economy Vision 2020 announced

Statement on Just Energy Transitionby the Ministry of Economy, Trade andPartnership (JETP) with Indonesia, the US,

Industry in May 2020.

and other countries. The JETP will support
Indonesia's efforts to transition from coal▶ The Japan Partnership for Circular

to renewable energy.

Economy (J4CE), launched in March 2021

▶ The Sharm el-Sheikh Implementation Planby the Ministry of the Environment, the14International and National Trends on the SDGs

was adopted at COP27 in November 2022.

for diversified projects that contribute to

A historic agreement was reached on the

decarbonisation, such as renewable energy

establishment of a "loss and damage" fund,generation and reforestation, towardand discussion of operationalisation willachieving net zero in 2050.

take place at COP28. No agreement wasreached on the enhancement of emissions

Preventing corruption (SDG 16)

reductions as negotiations failed to makeInternational trends

progress on the Glasgow Climate Pact due▶ In September 2022, the US Department

to opposition from oil-producing countries.

of Justice (DOJ) issued the Monaco

Domestic trends

Memo. The document continues the▶ In February 2022, the Ministry of Economy,

contents of the Yates Memo of 2015

Trade and Industry announced the GX

by emphasizing the importance of(Green Transformation) League Basic

conducting prompt internal investigations

Concept and its full-scale operation fromand providing information to the DOJ, as

2023 based on the creation of threewell as the proactive pursuit of individual"places": "A place to discuss how society

accountability.

looks in the future", "A place to develop

Domestic trends

market rules", and "A place for voluntary▶ The bribery scandal surrounding the Tokyo

emissions trading". Concerning voluntary

Olympics and Paralympics attracted a lot

emissions trading, in particular, design ofof attention throughout 2022. A former

the GX League Emissions Trading System

executive of the Organising Committee(GX-ETS) is underway.

and sponsor companies were charged
with accepting and offering bribes▶ In October 2022, the Japan Green
Investment Corporation for Carbon

respectively. The definition of "public

Neutrality (JICN) was established. Basedofficial" is also a focus of the case. The

on the revised Act on Promotion of

Act on Special Measures concerning the

Global Warming Countermeasures, JICN

Olympic and Paralympic Games in Tokyo

will develop a fund business, financed

in 2020 stipulates that the executives andby the government's fiscal investment

employees of the Organising Committee

and loan programme and private-sector

are to be treated as public officials.

investment. The aim is to bolster the

For many other industries as well, lawnecessary financing for decarbonisation

stipulates that employees and executives

by conducting investment and lending

are considered to be public officials.

15

2

2

International and National Trends on the SDGs

Column: "Earth for All: A Survival Guide for Humanity"
In the face of stalled progress on the SDGs and impending risks on a global scale, is it reallypossible for humanity to achieve a sustainable society? The Club of Rome, which published"The Limits to Growth" in 1972, considers human potential 50 years later in a new reportpublished in 2022, "Earth for All: A Survival Guide for Humanity".
The report uses a new system dynamics model to present two scenarios: the "Too Little Too
Late" business-as-usual (BAU) scenario, and the "Giant Leap", which aims to maximise humanwell-being within planetary boundaries.
The Giant Leap scenario proposes "extraordinary turnarounds" in five areas – poverty,
inequality, empowerment, food, and energy - as shown in the diagram below. The reportpurports that if we act now, we can limit the global population to around 6 billion in 2100,
end extreme poverty, significantly reduce pressure on natural resources, stem the rise in the
Earth's temperature to around 1.5°
C by the end of the century, relieve social tensions, andcontinuously improve well-being.
The report clearly illustrates the meaning of the two opposing scenarios, "Too Little Too Late"and "Giant Leap", for our future. It offers many insights for companies and organisations when
considering their future activities.
*Japanese edition was released by Maruzen Publishing, translated by IGES.

Front cover of the Earth for All
Figure: The policy interventions needed to achieve
the five extraordinary turnarounds(Source: Earth for All: A Survival Guide for Humanity Executive Summary, p.14)

16

3

SDGs Survey Results
and Interpretation

Survey overview■ Survey objectives- To help GCNJ participants measure their progress and promote activities on the SDGs.
- To analyse the state of progress and challenges faced by GCNJ participants in carryingout initiatives on the SDGs and to contribute to the achievement of the SDGs in Japan.
■ Schedule for survey responses
26 September to 14 November 2022
■ Survey target and number of responses
Target: GCNJ business and non-business participants 513  (as of 1 September 2022)
Number of  respondents: 279 (54% response rate)C ompanies (businesses) 259 (93% of respondents), nonbusiness organisations 20 (7% of respondents)※See p. 89-93 for a list of responding participants.
[Note] The SDGs Progress Report 2022 (previous issue) had 208 company
respondents.
■ Survey method
Online survey■S urvey content (48 questions in total, with 7 separate questions for non-businessparticipants)
１）Participants' information, SDGs penetration (implementation)２）Gender equality (SDG 5)３）Decent work and human rights (SDG 8)４）Sustainable consumption and production (SDG 12５）Climate change (SDG 13)６）Anti-corruption (SDG 16))

７）Post-survey questionnaire (e.g. opinions about the survey)

17

3

SDGs実態調査の結果と解説

Responding Participants in the FY2022 SDGs Survey:
Profile of the 259 business (company) respondents
A profile of the 259 businesses (companies) out of the total 279 participants that responded to
the FY2022 survey is shown below, including business scope, number of employees, scale of sales,
market segment, and industry.
Number of employees

Business scope

10%

11%

25%
34%

45%

75%

10 to 249
250 to 4,999
5,000 to 49,999
50,000 or more

Domestic
GlobalFor number of employees, "5,000 to 49,999" received
the largest number of responses, accounting for 45% of
the total. The "250 to 4,999" response was next at 34%.

For business scope, 25% of companies operated
domestically, compared to 75% with global operations.

Market segment

Scale of sales
0%
6%

9%

23%

0%
14%

71%

Less than 2.5 bil. JPY
2.5 bil. JPY less than 25 bil. JPY
25 bil. JPY less than 100 bil. JPY
Over 100 bil. JPY

5%72%

For scale of sales, the proportion of companies withsales exceeding 100 billion JPY was 71%.

[Reference] Number of listed companies (JPX),
as of 6 December 2022
1%

By industry group

20%

13%

20%

12%
14%

21%

Prime Market
Standard Market
Growth Market
Non-listed
Other

Food/
other manufacturing
Chemicals/pharmaceuticals/
petroleum/other materials
Electrical/precision/machinery, automotive/
transport equipment
Construction, electricity/
gas/transport, real estate
Information/communication,ﬁnanceWholesale/retail, service/other non-manufacturing

By industry group, the number of companies was
divided roughly in half, with 54% in manufacturing(blues) and 46% in non-manufacturing (oranges) sectors.

18

13%

48%
38%

Prime Market
Standard Market
Growth Market
Tokyo PRO Market

A question on market segment (including unlistedcompanies) was added to the survey for the ﬁrst time.
The proportion of companies listed on the Prime
Market at 70% is clearly higher than the proportion for
JPX. Also notable is the number of unlisted companies,
which came in second after the Prime Market.

1

3.

Awareness andPenetration of the SDGs

 or most of the SDGs, the percentage selected as a "priority goal" has increased.
F
In particular, responses for SDG 4 (quality education), SDG 10 (reduced
inequalities), SDG 15 (life on land), and SDG 16 (peace, justice and strong
institutions) increased by approximately 10% in comparison to the previous year.
In terms of integrating the SDGs into corporate management, even whencompanies with 10 to 249 employees had presented policies or statements,
they had yet to link them to concrete actions. Companies with 250 to 4,999
employees faced challenges in setting key performance indicators (KPIs),
disclosing quantitative targets and performance, and linking performance to
executive pay, all factors that increase the effectiveness of their efforts. Linking
performance to executive pay was an issue even for companies with more than
5,000 employees.
 ngagement and collaboration with the supply chain wield major impacts on
Ecompanies' activities on the SDGs. Even in the manufacturing sector, where
progress has been made compared to the non-manufacturing sector, a PDCA
cycle for supplier engagement is not fully implemented.
status of engagement with the supply chain

Aim of questionnaire content(Q10) and signatory status for three initiatives

The results of the previous survey showed an

promoted by the UN Global Compact/GCNJ

increased overall level of awareness of the(Q12). Results on signatory status for the

SDGs and progress on the steps of the SDG

initiatives are explained in section 3.7.

Compass, although there were disparities
in terms of the scale of sales and number ofResults and discussion

employees. Accordingly, these questions wereomitted from this survey, and questionnaire

Priority goals (Q8)content focused on how the SDGs areFirst, let us look at the goals on which

integrated into corporate management.

companies have chosen to focus. Comparedto the previous year, a slight decrease wasSpecifically, the following questions areseen for SDG 3 (good health and well-being),

continuously included: priority SDGs (Q8),perhaps due to acclimation to COVID-19.

integration of the SDGs into corporate

Responses for most other goals increased bymanagement (Q9), and challenges faced in

more than 5%, especially SDGs 4, 10, 15, andtaking action on the SDGs (Q11). In addition,

16, which showed increases of approximately

new questions were incorporated on: the

10%. In the backdrop of this overall upward

19

1

3.

Awareness and Penetration of the SDGs

trend was the progressive depreciation of

impacted by the ongoing weak yen, inflation,

the yen in 2022 and severe circumstancesand momentum for wage hikes. The industry

surrounding Japan, such as inflation and thecategory showing a high value for SDG 15

uncertain supply of resources and products

was "food/other manufacturing", implying

following Russia's invasion of Ukraine. In

significant impacts due to the nature ofaddition, an increased focus on biodiversity

business activities. For SDG 16, scores ofissues was arguably impacted by the second

ten percentage points higher than averagepart of the UN Biodiversity Conference

were seen for the "electrical/precision/(CBD COP15) held in December 2022 andmachinery, automotive/transport equipment",

further progress in discussions toward the"construction, electricity/gas/transport, realestablishment of the Task Force on Nature-estate" and "information/communication,

related Financial Disclosures (TNFD).

finance" industries in particular. This trend
could be attributed to the various impacts

Of the four goals that showed remarkableof the war in Ukraine, and the increasing

increases in responses, SDG 4 scoredattention paid to the relationship between

high in non-manufacturing industries, at

war and violence and corporate activities.

64.5% among companies in "information/communication, finance" and 64.0% in

From a different perspective, an increase"wholesale/retail, service/other non-

was also seen in the number of priority

manufacturing", in contrast to its 52.9%

goals selected per company. In the previous

overall score. This suggests potential progresssurvey, an average of 9.7 goals were selectedin engagement with consumers and students.

per company, while the figure was 10.7

The increase for SDG 10 may have been

for the current survey. The increase in the

Q8 Which SDGs goal(s) has your company chosen to focus on? (Select all that apply)
20.7

SDG 1 No poverty

27.4
22.1
25.9

SDG 2 Zero hunger

73.6
72.2

SDG 3 Good health and well-being
41.8

SDG 4 Quality education

52.9

73.6
77.2

SDG 5 Gender equality
37.0

SDG 6 Clean water and sanitation

44.0

69.7

SDG 7 Aﬀordable and clean energy

76.8

SDG 8 Decent work and economic growth72.1

SDG 9 Industry, innovation and infrastructure
51.4

SDG 10 Reduced inequalities
SDG 11 Sustainable cities and communities

61.0
60.6

67.6

SDG 12 Responsible consumption and production

78.0

78.8

SDG 13 Climate action
39.4

SDG 14 Life below water
SDG 15 Life on land

46.7
47.1
45.2

SDG 16 Peace, justice and strong institutions

57.1

5.3
5.4

0

10

20

30

40

50

84.2
85.1
87.6

56.8

SDG 17 Partnerships for the goals
We have not selected any speciﬁc goals to focus on

83.2
85.7

60

62.5

2021

68.3

70

2022
80

90

100%

(2021: n=208; 2022: n=259)

20

Awareness and Penetration of the SDGs

number of priority goals selected does not

the previous question as company KPIs.

necessarily indicate that companies are• We have a formal structure (e.g. cross-objectively and comprehensively evaluating

departmental committee) in place toimpacts on society alongside the businessaddress the SDGs selected in the previous

risks and opportunities related to those goals

question.

and dedicating resources to them. In other• We disclose quantitative targets andwords, to avoid SDG washing, effectiveness inperformance that contribute to the SDGs

addressing priority goals is tested.

selected in the previous question.
• We link performance on the quantitative

Integration of SDGs into corporate

targets that contribute to the SDGs

management (Q9)selected in the previous question to

In order to understand how the goals

executive pay.

selected as priorities in Q8 are being
integrated into corporate management, in Q9

Here, let us examine the results by thethe following options were posed.

number of employees. Companies with• We have clarified our contribution to themore than 5,000 employees showed higher

SDGs as a company-wide policy.

values overall, confirming that integration of• Top management has expressed a

the SDGs into corporate management has

commitment to contribute to the SDGs.

progressed. On the other hand, only 41.3%• We link the SDGs selected in the previous

linked performance on the SDGs to executive

question (Q8) to our company's priority

pay. The revised Corporate Governanceissues.

Code of 2021 stipulates the importance• We have positioned quantitative targetsof the board of directors in addressingthat contribute to the SDGs selected insustainability issues from the perspective of

Q9 How does your company incorporate the SDGs into corporate management? (Select all that apply)
We have clariﬁed our contribution to the SDGs
as a company-wide policy.

75.3

40.7

Top management has expressed acommitment to contribute to the SDGs.

59.3

We link the SDGs selected in the previous
question (Q8) to our company's priority issues.

83.1

22.2

Over 5,000 employees

6.3
6.7

Other
0

0

41.3

15.7

3.7

2.2

79.7

55.1

14.8

We link performance on the quantitative targets that contribute to the
SDGs selected in the previous question to directors' remuneration.

84.6

74.2

33.3

We disclose quantitative targets and performance that
contribute to the SDGs selected in the previous question.

93

80.4

53.9

We have a formal structure (e.g. cross-departmental committee) inplace to address the SDGs selected in the previous question.

Nothing in particular

80.4

66.3

33.3

We have positioned quantitative targets that contribute to
the SDGs selected in the previous question as company KPIs.

83.2

250-4,999 employees

18.5

10-249 employees

11.1
10

20

30

40

50

60

70

80

90

100%

(5,000+: n=143; 250-4,999: n=89; 10-249: n=27)

21

1

3.

1

3.

Awareness and Penetration of the SDGs

enhancing corporate value over the medium"resources" and "balancing growth strategies

to long term. Moreover, the link between

and the SDGs" as challenges. Moreover,

performance and executive pay is an item

57.5% of all respondents felt that the newly

included in the new Communication on

introduced response item of "ascertaining

Progress (CoP) questionnaire, a requirement

the overall picture of risks to people and thefor all GC business participants. Even

environment associated with the value chain"companies with fewer than 5,000 employees

was a challenge. The overall trend is moving

are expected to make progress in this area in

towards more concrete deliberations andthe near future.

practices on sustainability issues related totheir own operation.

Companies with 250 to 4,999 employees
showed progress on clarifying policies, linking

As pointed out in last year's report, the low

the SDGs to company priority issues, andpercentage of responses on challenges overall

establishing formal structures. However, there

from companies with 10 to 249 employees

was a gap of more than 20% compared tois assumed to be due to their small size. It

companies with more than 5,000 employees

is easier for smaller companies to promote

for setting KPIs, disclosing quantitative

understanding and penetration within thetargets and performance, and linking

company. Likewise, they stand on the side ofperformance to executive pay, elements thatthe value chain where they are requested toraise the effectiveness of efforts to address

make efforts by their business partners, andsustainability issues.

presumably, they have not yet reached thepoint where they feel the need to engage inApproximately 60% of companies with 10 to

information disclosure or indicator setting

249 employees had expressed a commitment

and evaluation. The fact that companies withto contribute to the SDGs, while around

250 to 4,999 employees are more likely

40% had clarified company-wide policies

than those with 5,000 or more employees

on contributing to the SDGs. However,to perceive the SDGs as a challenge in manyscores for most of the other items were in

respects is the reverse of the situation seen

the 30% range or lower, suggesting thatearlier with regard to incorporating the SDGs

commitments and policies are not linked tointo corporate management. Differences in

concrete actions. Although it has often been

resources allocated internally and pressure

pointed out and some local governments andfrom society have likely influenced thesefinancial institutions are already working toresults.

do so, more tailored and detailed support
is required for small and medium-sized

Engagement with the supply chain (Q10)enterprises.

The latest survey included a new question
on the development and implementation of

Challenges in addressing the SDGs (Q11)environmental, social, and governance (ESG)

As far as challenges companies face inpolicies for suppliers. The reason for thisaddressing the SDGs, percentages for items

addition is that engagement and collaboration

related to societal and internal awarenesswith the supply chain have a major impact on

and understanding decreased compared

companies' contributions to the SDGs. The

to the results of the previous survey. On

results show a significant gap between thethe other hand, an increase was seen inefforts of companies in manufacturing andthe proportion of respondents perceiving

non-manufacturing industries. Furthermore,

22

Awareness and Penetration of the SDGs

the level of progress differs when looking

quantified the improvements. When figures

at the scope of business (whether global orfor companies targeting only domestic or only

domestic).

overseas suppliers are added together, thefact that most companies have developed

Specifically, for the manufacturing industry

policies (92.2%) and distributed/collected

and companies targeting both domestic andchecklists (82.4%) is clear. On the other hand,overseas suppliers, 67.6% had developed

even when added, figures for conducting

ESG policies, 53.5% distributed and collected

audits and quantifying improvements arechecklists, 28.9% conducted audits, 39.4%

under 40%, pointing to the lack of fully-

made requests for improvements, and 25.4%

implemented PDCA cycles. In the non-

Q11 What challenges does your company face in taking action on the SDGs? (Select all that apply)
2022

2021

%
Overall change

10 to 249

250 to 4,999

Over 5,000

OverallSocietal awareness of the SDGs

14.8

3.4

5.6

5.8

8.7

-2.9

Ways to expand actions within
the company

33.3

56.2

46.2

48.3

52.4

-4.1

Top commitment

3.7

13.5

7

8.9

10.1

-1.2

Level of understanding andimplementation by middle management

40.7

58.4

49.7

51.7

56.3

-4.6

Level of understanding and implementation
among general employees

44.4

58.4

57.3

56.4

59.6

-3.2

Level of understanding andimplementation by board directors
and/or executive officers in charge

18.5

23.6

23.1

22.8

23.1

-0.3

Ascertaining the overall picture ofrisks to people and the environment
associated with the value chain

18.5

64

60.8

57.5

-

New

Setting quantitative indicators andevaluation methods for impacts, etc.

55.6

77.5

74.1

73.4

76.4

-3.0

Resources (funds, staff, capacity,
technology, etc.)

51.9

59.6

58

57.9

52.4

5.5

Political backing by national andlocal government

14.8

15.7

19.6

17.8

16.3

1.5

Effective methods for stakeholder
engagement

14.8

34.8

35

32.8

31.3

1.5

Collective action for the SDGs (company/
gov't/organisation partnerships)

33.3

19.1

24.5

23.6

-

New

Appropriate information disclosure(including identifying risks related
to SDG washing)

7.4

42.7

42

38.6

44.7

-6.1

Publicity and communication
strategies for SDGs actions(disseminating information in
Japan and overseas)

22.2

34.8

45.5

39.4

41.8

-2.4

Balancing growth strategies andthe SDGs

29.6

58.4

42.7

46.7

38.5

8.2

Other

7.4

5.6

0.7

3.1

1.9

1.2

Nothing in particular

3.7

-

1.4

1.2

1.9

-0.7

(Responses (%), 10-249 employees: n=27; 250-4,999 employees: n=89; 5,000+ employees: n=143)

23

1

3.

1

3.

Awareness and Penetration of the SDGs

manufacturing sector, even when figures

manufacturing sector are more advanced

for companies targeting both domestic

than in the non-manufacturing sector. Thisand overseas suppliers and only domestic

can be explained by the greater impact of

suppliers are combined, measures by mostthe global supply chain on business, and thecompanies are limited to developing policies.

need to identify issues and make quantitative

Companies implementing other measures

improvements with regard to labour, safety,

are about 30% or less. Therefore, althoughand environmental considerations when

there is room for improvement, efforts in the

procuring raw materials and contracting

Q10 Please select one of the following that best describes your company's development andimplementation of environmental, social, and governance policies for suppliers.
Manufacturing industries
67.6

We have developed policies.
We distribute and collectchecklists.

24.6

53.5

We conduct audits.

26.8

We make requests for
improvements.

28.9
11.3

1.4

0

32.4

13.4

10

20

30

5.6

56.3
40

50

60

4.9
8.5

22.5

25.4

12.7

52.1

39.4

We quantify improvements.

4.2 3.5

70

4.9
80

90

100%

(n=142)Non-manufacturing industries
We have developed policies.

35.0

We distribute and collectchecklists.

14.5

We conduct audits.

9.4

We make requests for
improvements.

10.3

We quantify improvements.

23.1

16.2

0.9

14.5

10.3
10

9.4

60.7

11.1
0.9

8.5
0

31.6

0.9

8.5

73.5

5.1

68.4

6.0

74.4
20

30

40

50

6.8
60

70

80

Implementing for both domestic and overseas suppliers
Implementing for domestic suppliers
Implementing for overseas suppliers
Not implementing any measures at this time
Other

90

100%

(n=117)Have
developed
policies

Distributeand collectchecklists

Conduct
auditsMake
Quantify
requests for
improvements
improvements

Manufacturing industry with global
business scope (127 companies)

94.5

86.6

40.2

66.1

40.2

Manufacturing industry with domestic
business scope (15 companies)

73.3

46.7

33.3

26.7

26.7

Non-manufacturing industry with
global business scope (66 companies)

77.3

34.8

25.8

27.3

21.2

Non-manufacturing industry withdomestic business scope(51 companies)

54.9

25.5

15.7

23.5

15.7

Responses (%)*Total value for respondents who reported implementing for either both domestic and24

Awareness and Penetration of the SDGs

manufacturing overseas (especially inreason is that companies with a domestic

emerging countries).

scope of operations have less need and feelless pressured to engage in these types ofWhat do we see if we divide manufacturing

activities in the supply chain.

and non-manufacturing industries,
respectively, into global or domestic scope ofAmong companies that had not distributed

business? As there were only 15 respondent

or collected checklists from any of theircompanies in manufacturing with a domestic

suppliers, whether domestic or overseas,

scope of business, these figures are forthere were 45 companies in the Prime Market

reference only. For both manufacturing andsegment and 61 companies with sales

non-manufacturing industries, companies

exceeding 25 billion JPY. These companies

with global operations scored higher on

may be required to take immediate action

all types of engagement. The presumed

from the perspective of social responsibility.

COLUMN: What is the value chain?
A value chain is generally defined as "the quantitative and qualitative relationship of how thevarious activities of a company contribute to the final added value". It can also be described as
the main active processes by which a company creates profit.
The SDG Compass describes the value chain as "raw materials, suppliers, inbound logistics,
company operations, distribution, product use, and product end life", using the manufacturingindustry as an example. The value chain differs for non-manufacturing companies in various
financial and service industries. Moreover, the processes and priorities for generating profit willvary from one operating company to another, even within the same industry. At each link in thevalue chain, companies build a range of cooperative relationships with diverse stakeholders,typified as customers, suppliers, employees, and local communities, that make their businessactivities possible.
Incidentally, the value chain and supply chain sound similar, but they differ in content. A value
chain is the value creation process of a company, whereas a supply chain describes a chainof procurement activities. For example, suppliers of raw materials and components, generalsellers of items needed for office work, logistics service companies for removing and transporting
goods, and temporary staffing service providers are all suppliers. The term "supply chain" includes
the suppliers of suppliers and their suppliers, and so on, that are traced back to the mineral
resources, agricultural produce, or other raw materials that are the origin of products (services).

25

1

3.

2

3.

Gender Equality
The urgent need to shift from"women's active participation"
to "gender equality"

Asako Osaki

Director, Gender Action Platform nlike the terms "Diversity, Equity & Inclusion (DEI)" and "women's active
U
particpation (josei-katsuyaku )", the international community has set common
goals and targets for "gender equality" where progress can be measured using
common global indicators. It is essential that companies go over and understandthe concept first, and announce policies that explicitly include the term "genderequality". However, only a few companies (18.1%) reported having included theterm “gender equality” in their policies.
 he percentage of respondents that are signatories to the Women's
T
Empowerment Principles (WEPs), an international framework for privatecompanies to achieve gender equality, is also low at 12%. Both signatory andnon-signatory companies are encouraged to repeatedly refer to and apply theframeworks set forth in the WEPs, which are also used as assessment indicatorsin the ESG market. A set of indicators that are commonly applied can be found in
the Transparency and Accountability Framework (TAF https://www.ungcjn.org/
objective/gender/files/WEPs_TAF_jp.pdf). It is important for companies to utilise
both the WEPs and TAF to enhance their corporate value.
 otable progress is evident when compared to the 2021 survey results on
Ncertain survey questions (e.g. setting targets for the percentage of womenboard members, activities to encourage men to take parental leave). It is hoped
through answering the questions in this survey, companies will gain an increased
understanding of international standards and reassess the issues that they faceand act to address them.
It is important for companies to enhance their understanding of issues that have
not yet been fully integrated into Japanese companies’ practices. These include
incorporating a gender perspective in supply chain management and contributing
to the promotion of gender equality in communities and society beyond thecompany itself. Companies are encouraged to integrate these issues into theirown initiatives.

26

Gender Equality

7,330 as of 22 December 2022. In contrast,

Significance and Rationale

growth in Japan has been slower, increasing

The gender gap in the private sector is afrom 210 to 298 companies.

barrier to the promotion of gender equality
across countries and a hindrance to progress.

For WEPs, the first step for a company is toAmong the six targets of SDG 5, there arevisualise its current state of gender disparity

those that cannot be achieved without theand analyse the determining factors from acommitment of the private sector. These

gender perspective. Based on these results,

include: "ending all forms of discriminationcompanies utilise the WEPs to develop action

against all women and girls everywhere",plans, carry out initiatives, and continue"eliminating all forms of violence in themonitoring. This process is not limited to

public and private spheres", "recognising

the elimination of gender discrimination. It isand valuing unpaid care and domestic work

also a process for building and strengthening(e.g. housework, childcare elderly care)",human capital and promoting diversity andand "ensuring women’s full and effective

transparency—namely, improving governance.

participation and equal opportunities forleadership at all levels of decision-making inThis year's survey followed the eight

political, economic and public life". First, anthemes from the previous survey, with aunderstanding of the current state of affairs

few slightly revised questions. These are: (1)is required. Indicators used to measurepolicies and commitments, (2) percentage

the gender gap within companies are theof women board members, (3) pay gap,

ratio of men and women in executive and(4) sexual harassment, (5) parental leave,

management positions, gender pay gap, and(6) supply chain management, (7) activities

difference in parental leave uptake rates bythat contribute to achieving SDG 5, andmen and women. These data are also used

(8) mechanisms for data collection. Whenin ESG investment as indicators of humandeveloping each question, the relevant

capital and other types of corporate value

indicators of the TAF, a set of common global

and governance risk.

indicators released in 2021 for measuring
progress on the WEPs, were taken into

As in the previous year, the WEPs framework

account.

was adopted for the design of the survey
questions. The WEPs are linked to the Ten

Results and Discussion

Principles of the UN Global Compact, thePrinciples for Responsible Investment (PRI),

Policies and commitments (Q13)and the UN Guiding Principles on Business(SDGs overall, WEPs 1)

and Human Rights (UNGPs), and are the mostThe results of last year's survey showed thatcomprehensive international standards. The

companies did not differentiate between

criteria of Equileap (a global assessment

policies on women’s active participation

organisation that collects and evaluates

and DEI and policies on gender equality.

gender-related data on corporations) utilised

Accordingly, this year we asked whether top

by the Morningstar Gender Diversity Index,

management had expressed its commitment

which the GPIF adopted as its ESG index

using the term "gender equality". While more

for foreign stocks in 2020, are based on thethan half of respondents had expressed their

WEPs. Globally, WEPs signatory companies

commitment, only 18.1% reported using thisincreased from 923 on 20 March 2015 toterminology.

27

2

3.

2

3.

Gender Equality

Due to the absence of well-established

Training on "women's human rights" (Q14)international standards or frameworks for(SDGs overall, WEPs 5-2, TAF 44 and 66)"women’s active participation" or "diversity,"

For this year's survey, we included a newcompanies had the room to work under theirquestion regarding trainings on women's

own interpretation and convenience. On thehuman rights, a core issue addressed incontrary, "gender equality" has a commonly-international human rights standards andaccepted concept, goals, and action

human rights due diligence procedures, as

framework in the international community.

they are essential for understanding the

Simply affixing the SDG 5 icon onto a policy,

difference between the concepts of "equity"

without including the words "gender equality",in DEI and “equality”, and the significance anddoes not make it a policy on SDG 5. Likewise,

rationale of gender mainstreaming. The survey

companies must take into account that theresults revealed that companies have been

government has shifted its approach tofacing challenges in how to integrate women's

gender equality and has started to reform

human rights issues in trainings. It should beinstitutions and employment practices that

noted that the term "women's empowerment"

were premised on a gender division of labour

called for in SDG 5 refers to enabling women

via legal reform and policies. It is importantto gain their rights to make decision on

for companies to refer to the WEPs and thetheir own throughout their lives and in their

TAF to formulate and make public a "Gendereveryday activities, and giving them the

Equality Policy and Commitment" suited to

power to exercise the right. In other words,

each respective company.

SDG 5 is directly linked to women's humanrights. Women's human rights are also a key

What is called for is the elimination ofelement of the human rights due diligence.

direct and indirect gender discrimination,

In trainings on human rights, companies arewhich is the foundation of women’s active

encouraged to include an overview of the UN

participation and promotion of DEI.

Convention on the Elimination of All Forms ofDiscrimination Against Women (CEDAW), aninternational human rights standard, as wellQ13 Which of the following apply to your company with regard to policies and commitments on genderequality? (Select all that apply)
We have not clearly positioned gender equality in our policies.

12.7

We understand that promoting gender equality is the foundation for “women’s active
participation” and “diversity and inclusion”, and have clearly positioned this in our policies.

81.1

Top management has expressed commitment to implementing policies and measures.

57.5

Top management has expressed commitment to gender quality (using the term "genderequality").

18.1

When formulating and revising policies, we engage in dialogues with stakeholders and interview
experts.

28.2

Our entire value chain is subject to our policies and commitments.

25.1

We link our policies, commitments, plans and performance and disclose information (URL
where information is disclosed).

42.5

We monitor our progress in promoting gender quality and disclose information (URL where
information is disclosed).

34.7
Responses (%)

28

Gender Equality

as the recommendations that Japan, as afrom 20.1% to 25.4% for the same 169

State Party to the Convention, has received incompanies). Meanwhile, respondents thatits periodic reviews by the Committee on the

had already achieved a rate of 30% women

Elimination of Discrimination against Women.

rose from 2.2% to 3.9% (or from 0.6% to 2.4%
for the same 169 companies). These figures

Percentage of women board members (Q15)

confirm that a certain amount of progress has(SDGs 5.5, WEPs 1 and 4, TAF 1a and 1b)

been made.

Nearly two-thirds of responding companies
have not set a target for the percentage

This indicator is a mandatory reportingof women board members. Comparing all

indicator for the WEPs and TAF and is a

responding companies from last year's survey

standard disclosure item in major Westernand this year's, the ratio of companies yet to

and Asian economies. "Vertical segregation"

set a target has fallen from 74.9% to 64.5%(whereby men are concentrated in higher(or from 75.1% to 62.7% when limited topositions and women in lower positions) is

the 169 companies that responded for two

one of the key factors contributing to theconsecutive years), so there has been somegender pay gap within companies. Genderimprovement. The proportion of respondents

diversity in the boardroom has also been

who had set a target and formulated anfound to contribute to better decision-action plan (with currently less than 30%

making and reduction of management risk.

women) rose from 17.9% to 21.6% (orAccordingly in some countries, companies

Q14 Does your company include "women's human rights" in trainings on human rights and provide
opportunities for employees to learn about the role of women's human rights in the Convention on
the Elimination of all Forms of Discrimination Against Women, the International Bill of Human Rights,
and the ILO Core Labour Standards?
We do not conduct training on human rights.

15.4

We conduct training on human rights without specifically referring to "women's humanrights".

35.5

We refer to "women's human rights" in trainings on human rights without mentioning
the Convention on the Elimination of All Forms of Discrimination Against Women, theInternational Bill of Human Rights, and the ILO Core Labour Standards.

34.0

We include "women's human rights" in our trainings and provide opportunities for
employees to learn about the Convention on the Elimination of All Forms of Discrimination
Against Women, the International Bill of Human Rights, and the ILO Core Labour Standards.

12.4

Other

2.7
Responses (%)

Q15 Has your company set targets for the percentage of women board members (including directors andauditors) and formulated plans to achieve them?
We have not set specific targets for the percentage of women board members.

64.5

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

5.0

We have set targets and formulated action plans (currently, the percentage of womenboard members is less than 30%).

21.6

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

3.9

Other

5.0
Responses (%)

29

2

3.

2

3.

Gender Equality

are abandoning a forecasting approach

men in fields and occupations with highwhereby they aim to achieve targets first at

remuneration and women in fields andthe management level before moving to theoccupations with low remuneration (e.g.

director level. Instead, they are adopting anursing care, childcare). Also, time spent

backcasting approach, whereby targets areon housework and childcare is significantly

set at the board member level, and efforts

longer for women which is a barrier toare made to strengthen pipelines and create

their career development. Disclosuresystems for evaluation and promotion inwill be required in three categories: full-

which unconscious bias does not come into

time employees, part-time and fixed-termplay. First and foremost is the setting of

employees, and all workers. When analysing

targets.

the reasons behind the pay gap companies
can refer to the WEPs, including Principle

Gender pay gap (Q16)

1 on corporate strategies, Principle 2 on

(SDGs 5.1, 8.5 and 10.3, WEPs 2)

gender equality in the workplace (e.g. HR

In last year's survey, we asked companies

institutions and work practices), Principle 3

about their situations prior to introduction

on employees' health, well-being, and safety,of the requirements on gender pay gap

and Principle 4 on education and training todisclosure. This year, we looked at changes

enable women's career advancement, as wellin responses by companies following theas relevant indicators from the TAF, to gain

introduction of the disclosure requirement.

a multifaceted perspective. Measures should

In 2023, many companies subject to the

not be ad hoc, but applied comprehensively.

requirement will calculate and disclose
information on the pay gap for the first

Gender issues in laws, institutions, social

time. The gender discrimination structured

norms, and practices also affect theand internalised within companies will now

gender pay gap. Companies should obtain

become visible. Major factors contributing

expert advice, identify issues, formulate

to the disparity include the aforementioned

comprehensive strategies for elimination, andvertical segregation, as well as horizontal

then implement these on a company-wide

segregation, namely the concentration ofbasis.

Q16 What measures has your company taken to eliminate the gender pay gap?
We have not conducted gender pay gap calculations nor disclosed information because it
is not mandatory.

13.1

We have calculated and disclosed information on the gender pay gap in accordance withthe law, or we have plans to disclose information, even though it is not mandatory.

8.9

We have not calculated and disclosed the gender pay gap, but are currently preparing
because it is now mandatory.

64.9

We calculated and disclosed the gender pay gap before it became mandatory.

9.7

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

5.4

We heve carried out factor analysis of the gender pay gap on the basis of the calculated
figures.

14.3

Other

6.6
Responses (%)

30

Gender Equality

Effective systems for redress of sexual

Japan is the only G7 nation without a law

harassment (Q17)that prohibits sexual harassment, which is(SDGs 5.2, 8.5, 8.8 and 10.3, WEPs 3, TAF 4,

recognised globally as a human rights risk in

41 and 43)

Japan. Information on measures to prevent

With regard to sexual harassment, the results

sexual harassment and handle allegations isof last year's survey showed that the majority

available in guidelines such as the “Humanof respondent companies and organisations

Rights Due Diligence Training Facilitation

had already introduced a reporting

Guide”1, developed by the United Nations

mechanism. This time, we went one step

Development Programme.

further to ask about the introduction of aneffective system for redress. While responses

Parental leave for men (Q18, Q19)

were overall high, challenges remain in(SDGs 5.4 and 8.5, WEPs 2, TAF 29)

whether incidents are being handled properly

To respond to the amendment to the Childand adequate prevention measures are in

Care and Family Care Leave Act, this year's

place.

survey added options to examine the status

Q17 Does your company have an effective system for redress pertaining to all forms of violence and sexual
harassment at work? (Select all that apply)
We do not have a system.

0.8

We have a system that allows for anonymous consultation and filing of complaints (toensure confidentiality).

94.2

Our system prohibits retaliation against the person filing the complaint and ensures thatthe person is not treated unfavourably.

90.0

We have a mechanism in place to not only listen to the opinions of persons filingcomplaints, but also to lead to resolution.

83.8

We have a system for reporting and resolution with an external third party as a contact point.

84.2

We regularly conduct review of past allegations and utilise this information for harassment
prevention measures.

66.4

Other

1.9
Responses (%)

Q18 Does your company conduct activities to encourage male employees to take parental leave? (Select all that apply)
We do not carry out any specific activities.

7.3

We have established numerical targets for the male parental leave uptake rate.

45.6

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

67.6

We individually contact all employees who announce the pregnancy or childbirth of a
spouse, including providing information on the parental leave system for men, confirming
intention, and providing encouragement on uptake.

76.1

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

64.9

Other

6.6
Responses (%)

 https://www.undp.org/publications/human-rights-due-diligence-training-facilitation-guide

1

31

2

3.

2

3.

Gender Equalityof informing male employees of parental leave

the 169 companies that responded for two

on an individual basis, confirming intention,consecutive years).

and encouragement of male parental leave.
While the previous survey investigated

For over one-third of respondents (35.6%),

provisions on the required period of leave,

the duration of parental leave taken fell inthis time we asked about the actual duration

the 0 days, 1-2 days, or less than a weekof leave. We also added response options

categories. Male parental leave schemes are

based on the need to clarify the reality ofpart of the government's policy for achieving

extremely short parental leave. In addition,

the redistribution of responsibility for unpaid

the terminology was changed from "holiday"care work as stipulated in the SDGs. The(kyuuka ) to "leave" (kyuugyo ) for the current

burden of care work, which falls heavily on

survey.

women, is one of the factors contributing
to the gender pay gap and is considered

Fewer than half of the companies had set

a violation of men's right to proactively

numerical targets for the uptake rate ofparticipate in childcare and family life. A

parental leave for men. The absence ofduration of less than one week is insufficient

efforts to promote the parental leave forin terms of the policy aim to build a system

men is striking, particularly in companies

of joint responsibility for housework andwith a domestic scope of business andchildcare at an early stage. Companies

small-scale companies in terms of employee

should also look at the WEPs Principle 2 on

numbers and sales. It is likely that the Subsidy

flexible work styles, which includes promotingfor Work-Life Balance Support "Course totelecommuting and rethinking long working

support for Family Care Workers to Continue

hours and relocation schemes.

Their Job" (now called Subsidies for Fathers
Raising Children, changed in 2022), designed

Gender-responsive supply chain management

to support businesses in creating workplace(Q20)

environments where employees can have

(SDGs 5.2, 5.5, 8.3, 8.5, 8.8, 10.2, 10.3, WEPs

a balanced work and family life, would be

5, TAF 7, 8, 51, 52, 53 and 65)

applied by more companies. Progress wasThis year, we added response options toseen where the numbers of companies thatexamine whether companies ensure theresponded having no specific activitie fellparticipation of women in stakeholder

from 17.9% in the previous survey to 7.3%

engagement in the supply chain. The(or from 14.2% to 4.1% when limited topercentage of companies not implementing

Q19 This question refers to the duration of parental leave taken by male employees in the previous fiscal
year. Please select one of the following.
No eligible employees

3.9

0 days

6.6

1 to 2 days

5.8

Less than 1 week

23.2

One week or more

30.1

One month or more

23.6

Other

6.9
Responses (%)

32

Gender Equality

gender-responsive supply chain management

equality is to be achieved in the private

fell from 61.4% in the previous survey

sector.

to 55.2% (or from 57.4% to 52.7% for
the 169 companies responding for two

Corporate citizenship to achieve SDG 5 (Q21)consecutive years). However, this is still a(SDGs 5, 10 and 17, WEPs 6, TAF 12, 62, 63

majority. Efforts to integrate and mainstream

and 64)a gender equality perspective in humanThis year, we prepared specific responserights due diligence and to ensure women's

options for corporate citizenship. We

participation in stakeholder engagement are

indicated efforts that contribute to achieving

not yet widespread. Furthermore, increased

SDG 5 targets (measures to address violenceawareness is needed among companies on

and poverty, leadership) and initiatives

gender-responsive procurement. There is anthat have direct benefits for companies

urgent need to instill these practices if gender(development of female talent in STEM

Q20 Is your company implementing gender-responsive supply chain management? (Select all that apply)
We are not implementing gender-responsive supply chain management.

55.2

We have integrated and mainstreamed a gender equality perspective into human rights
due diligence and identified gender-driven risks.

26.3

We collect relevant information on gender and women's human rights from suppliers andclients in Japan and overseas.

18.9

We ensure women's participation so that the views and experiences of women arereflected in stakeholder engagement, including organisations and experts with knowledge
and experience on gender.

11.6

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

5.0

We have policies and targets in place to prioritise procurement from companies with ratesof 30% or more women board members. Or, our supplier code of conduct explicitly states
support for prioritising these businesses.

1.5

We have policies and targets in place to promote procurement from women-owned businesses.
Or, our supplier code of conduct explicitly states support for women-owned businesses.

1.2

Other

6.6
Responses (%)

Q21 Does your company implement activities aimed at achieving SDG 5 (promoting gender equality andempowering women and girls)? Please provide specific activities, including the type of organisations
cooperating. (Select all that apply)
We do not implement any specific activities.

47.9

Eradication and response to all forms of violence against women.

10.4

Women's poverty (e.g. support for single mothers, young women, and single elderly
women facing financial challenges).

20.5

Closing the gender gap in STEM (science, technology, engineering, mathematics) and digitalfields.

16.2

Empowerment of women in rural areas and development of women leaders.

14.3

Promoting the empowerment and leadership of girls and young women.

17.4

Other

10.0
Responses (%)

33

2

3.

2

3.

Gender Equality

fields and the digital sector, development ofcommunity and society. There is a shareda pool of female talent in rural areas). For

understanding in the overarching sectors of

instance, the number of female professionals

ESG, SDGs and sustainability management

in engineering is extremely low, making itthat the elimination of poverty and violencedifficult to close the gender gap in recruitment

will lead to an increase in female consumers

and management/executive positions in thewith purchasing power and healthy andnear future. Increasing the number of female

skilled female human resources, bringing

secondary school students that pursue

benefit to companies.

engineering majors will lead to an expansionof the female human resource pool. The

Collection and analysis of sex-disaggregatedreason behind the current low proportion ofdata (Q22)

women can be explained when viewed from

(SDGs overall, WEPs 7, TAF 3a, 3b, 14, 20

a gender lens.  Similarly, medium- to long-and 29)term measures can be derived by addressing

Of the five items, the number of companies

existing gender gaps.

that responded having no mechanism inplace to regularly collect data on “parental

In fact, nearly a third of respondent

leave” decreased by 5.4 percentage

companies in the areas of electrical/

points from the previous survey, a slightly

precision machinery and automotive/

greater improvement compared to othertransport equipment are working to closequestions. Results for other questions

the gender gap in STEM and digital fields.

remained largely unchanged, although a

However, participating companies promoting

slight improvement was seen in terms ofgender equality beyond the scope of their

the existence of a mechanism. In terms ofown companies remain in the minority. As“hiring”, the percentage fell from 9.0% to 7.3%

mentioned above, a proactive corporate(unchanged at 6.5% for the 169 companies

approach to gender equality is essential, andthat responded for two consecutive years).

companies are expected to promote gender

For “appointment and promotion”, there was

equality within the company as well as in thea slight decrease from 18.4% to 16.6% (withQ22 Does your company have mechanisms in place to collect male/female ratio and sex-disaggregateddata in the following categories?
Employees Management

New/midcareer hires

Appointment Uptake rateandand duration ofpromotion parental leave

No mechanisms in place.

2.7

4.6

7.3

16.6

7.3

Mechanisms in place (please
do not select if measures are
conducted on an irregular basis).

16.6

16.6

21.2

36.3

24.3

Data is regularly collected, factors
analysed for issues identified, andefforts made to address issues.

5.8

5.8

14.7

26.6

14.7

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

74.9

73.0

56.8

20.5

53.7

Responses (%)

34

Gender Equality

a slight increase from 16% to 17.8% for thetheir organisations. Moreover, companies

same 169 companies).

that have already achieved a certain level ofprogress must continue to be ambitious inFirst and foremost, it is important for

their efforts to reach even higher goals.

companies to establish a mechanism forcollecting sex-disaggregated data as a starting

Reference materials

point for closing the gender gap. They thenshould proceed to analyse this data, working

Women’s Empowerment Principles (WEPs)

towards solutions and information disclosure.

Handbook for Japanese Companies

Analysing the results of employee surveys,

https://www.ungcjn.org/objective/gender/such as opinion polls, based on gender-

files/WEEMPOWERJapan_GCNJ_WEPs_

disaggregated data is also a good idea.

Handbook.pdf  (Japanese only)
WEPs Transparency and Accountability

Messages for the Future

Framework

It is encouraging to see that GCNJ participants

https://asiapacific.unwomen.org/sites/

as a whole have made progress, albeit slight,

default/files/Field%20Office%20ESEAsia/

in several areas of gender equality based

Docs/Publications/2021/03/210323WEPsME

on responses to common questions asked

Guidance2a.pdf (English)over the last two years. However, in order tohttps://www.ungcjn.org/objective/gender/achieve the Goal by 2030, it is essential forfiles/WEPs_TAF_jp.pdf (Japanese)companies to further raise the bar throughout

35

2

3.

2

3.

Gender Equality

Case study spotlight
For this survey, an expert and GCNJ determined that one criterion of a leading company
would be to apply the phrase "gender equality" in top management’s statements on corporate
policies. Upon online searches of relevant companies, the following company was selected
because it made clear reference to "gender equality" in corporate goals, as opposed to othercompanies that frequently used the term "women’s active participation".
●COMANY INC. (Headquartered in Komatsu City, Ishikawa Prefecture. Established in 1961.
Scope of business: domestic.) Number of employees: total for group 1,205; company only
1,059 (as of 31 March 2022).
Trial and error in the promotion of "women’s active participation" lead to ongoing efforts in"gender equality"
COMANY INC., aims to create comfortable and functional spaces through partitioning. The
company formed a Josei Katsuyaku Promotion Team in 2017. A current female department
head recalls that the objectives and goals of the team's activities were vague and only shortterm results were sought. The issue of gender inequality was seen as a "women's problem", soonly women were invited to join the team, which lacked participation from men. Eventually,
the team realised that in order to encourage women to leave work on time, men also had to
reduce overtime work. They needed to foster a culture where it was easy to leave work at
the end of official working hours.
In 2018, the company signed the UN Global Compact. The following year, a D&I Promotion
Subcommittee was set up with the participation of general managers. The subcommittee,
which placed respect for diversity and gender equality
at the heart of the company's growth strategy, met fivetimes a year. In 2020, the extremely low percentage ofwomen among employees, supervisors, and conference
participants was identified as an issue in communicationfrom the company president to all employees aheadof International Women's Day. Noting that the rules,
institutions, internal climate and culture reflected only
the voices of men, creating a vicious cycle that madeit difficult for women to speak up, the company declared that it would create a workplace
where everyone can work comfortably.
Since then, improvements have been made to workplaces and the working environment forthe production of partitions, the company's core product. Reflecting the views of women also
made it easier for men to work.
In March 2022, a year after signing the WEPs, an event was organised for all employees on
the topic of unconscious bias and psychological safety. The event was aimed at realising
diverse working styles and gender equality. It included the introduction of specific D&I cases
from within the company, group discussions, and lectures.
The following month, one month of parental leave was made mandatory for all eligible male
employees. There is a growing awareness in the company that social issues such as solo
parenting and postpartum depression should not be seen as someone else's problems.
Voices have arisen from within the company on the utmost importance of childcare by men
for the well-being of all employees. Although a system for support during the period of leaveis an issue, good practices are shared, and each department is working to identify issues to36

Gender Equality

be addressed when promoting changes in working arrangements.
Moreover, COMANY calculated its gender pay gap and conducted factor analysis. The
company plans to deliberate on measures to address issues, and carry out institutional design
toward creating work arrangements and a wage system that motivate everyone.
Furthermore, as part of its corporate citizenship and employee
engagement activities, COMANY cooperates with Globe Jungle,
a non-profit organisation that supports facilities for children,builds schools, and provides employment assistance to poorfamilies in Cambodia. Employees participate in various activities
and some support Globe Jungle's "Papa Mama Campaign",
becoming "foster parents" who donate a fixed amount ofmoney every month to help girls who cannot afford school supplies not drop out of primaryschool.

37

2

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3.

Decent Work andHuman Rights

Amid global crises, Japanese companies
must accelerate and expand efforts inbusiness and human rights

Emi Sugawara

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

In the face of global crises such as Russia's invasion of Ukraine and climatechange, initiatives in business and human rights are gaining in speed and scope
toward transcending divisions to achieve sustainable societies. Japanesecompanies are under pressure to bolster their efforts.
 hile an overall trend of improvement is seen compared to the previous survey,
Wnumerical results show only a slight increase. Future challenges can be seen in
the variation in progress on initiatives depending on the industry and company
size.
 he average response rate for all "Respect (Principles)" items was 44.3%. As
Tnoted in the previous survey, implementation and review of response optionsclassified as "Respect (Principles)" is a pressing issue.
 ot only targeting workers (including in the value chain), GCNJ businessNparticipants should address respect for the human rights of consumers and local
communities, and insufficient awareness for them is an ongoing challenge.
 he importance of meaningful stakeholder engagement has been repeatedlyT
confirmed by the international community. Good practices must go one stepbeyond the discussion of human rights issues in general. Companies should draw
on specific business activities (especially those with high human rights risks),
practise engagement with affected stakeholders, and disclose information on thisengagement.

38

Decent Work and Human Rights

of Modern Slavery" (2021 version) report.

Significance and Rationale

The report concluded that the number of

The severity of global crises has further

workers in a state of modern slavery hadheightened interest in decent work andworsened since the previous Global Estimateshuman rights. Since Russia's invasion of(2016 version), rising from 1 in 200 workers

Ukraine in February 2022, companies

worldwide, to one in 160.

are increasingly asked about corporate
responsibility for the impacts of their products

The key to achieving respect for human rights

and services on people's human rights

in the value chain, including the realisation ofthrough their business in/with Russia. There is

the decent work described in SDG 8, is foralso an ongoing trend to question companies'

companies to establish initiatives that alignefforts to respect human rights in the value

with the UN Guiding Principles on Businesschain as a responsibility under domesticand Human Rights (UNGPs).

1law. An example is the EU's proposal for a
Directive on Corporate Sustainability Due

Aim of this year's survey questions

Diligence, which was announced in February

The 2022 survey again included questions on

2022. In response to such developments indecent work and human rights, which consist

the international community, the Japaneseof (1) questions on processes for respecting

Government announced the Guidelines onhuman rights as clarified by the UNGPs (Q23-

Respecting Human Rights in Responsible25), and (2) questions focusing on the humanSupply Chains in September 2022. In line

rights of stakeholders such as workers,

with the government's move, the Japan

consumers, and community residents (Q27-

Textile Federation and the Japan Council of

29). In addition, examples of stakeholder

Metalworkers' Unions published their own

engagement (dialogue) were collected

guidelines. Japanese society has exhibited anbased on the importance of engaging withincreasing interest in corporate initiatives on

stakeholders in realising respect for human

human rights and labour indicated in SDG 8.

rights, something many companies facechallenges in implementing (Q26).

In the backdrop of these trends is the sharedrecognition that a sustainable society cannot

Furthermore, the response options for eachbe achieved without companies practisingquestion were classified as either "Respect

respect for human rights throughout their(Principles)", "Respect (Operationalisation)",value chains. For instance, in September

or "Promotion". The "Respect (Principles)"

2022, the ILO published the "Global Estimatesclassification was assigned to items that

Respect(Principles)
Respect
Operationalisation)
Promotion

Minimising negative impacts(respect)

Increasing positive impacts(support)

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

 The term "value chain" is used in this chapter to refer to the overall business activities, including procurement of raw materials and resources,
sales, distribution, consumption, disposal, and investment. The Japanese Government's Guidelines on Respecting Human Rights in Responsible
Supply Chains uses "supply chain" in the same sense as the "value chain" in this chapter.

1

39

3

3.

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3.

Decent Work and Human Rights

are specifically indicated in the UNGPs as

discussion of each question.

respect for human rights. Meanwhile, the"Respect (Operationalisation)" classification

Results and Discussion

asks whether companies are operationalisingrespect for human rights in line with their

Policies and commitments on human rights (Q23)

business activities. "Promotion" refers

The percentage of companies that haveto initiatives that actively promote theclarified policies and commitments on respect

guarantee of human rights, such as promoting

for human rights, the first step in corporate

employment and social contribution activities.

responsibility on human rights, was 81.5%.

The UN has repeatedly affirmed that respect

According to the "Questionnaire Survey

for human rights is at the core of initiatives onon the Status of Efforts on Human Rights in

the SDGs. Thus, it is important to note that

the Supply Chains of Japanese Companies"

no amount of work on "Promotion" exempts(below "2021 Government Survey")

companies from efforts that embody respect

conducted by the Ministry of Economy,

for human rights, i.e. "Respect (Principles)" andTrade and Industry and the Ministry of"Respect (Operationalisation)".

Foreign Affairs (released in November 2021,
covering companies listed on the 1st and 2nd

The response options for each question

Sections of the Tokyo Stock Exchange as ofwere revised as required based on thethe end of August 2021), 69% of companies

results of the 2021 survey and feedback fromhad formulated human rights policies. Our

GCNJ business participants. Their content

survey results exceed this figure by 12.5%.

incorporates options that take initiatives(Moreover, our figure is 82.5% when limited

one step further. Details are provided in theto the 169 companies that responded in bothQ23 Which of the following describes your company in terms of policies and commitments on humanrights? (Select all that apply)
We have not clarified any policies.

6.2

Respect(Principles)

We have clarified specific policies.

81.5

Respect(Principles)

Top management has expressed commitment.

68.3

Respect(Principles)

Our policies and commitments cover the entire value chain.

60.6

Respect(Principles)

We engage in stakeholder dialogue and seek advice from experts when
formulating/revising our policies.

43.6

Respect(Operationalisation)

We link our policies, commitments, plans, and performance and disclose
information in list form.

25.9

Respect(Principles)

We have policies/commitments in place that reference international humanrights standards.

60.6

Respect(Principles)

We have policies/commitments in place that cover issues for all stakeholders
impacted in our value chain (e.g. consumers, residents of communities wherebusiness development is conducted).

49.0

Respect(Operationalisation)

We identify salient human rights issues for our company and include these in
our policies/commitments.

38.6

Other

6.2
(Responses %)40

Decent Work and Human Rights

2021 and 2022, an additional 1%.) On theaddressed going forward.

other hand, for companies in the wholesale,retail, service, and other non-manufacturing

Human rights due diligence (Q24)

sectors, 14% reported having not clarified any

Human rights due diligence (DD) consists

policies, showing delayed efforts comparedof processes such as human rights impact

to other industries in the single-digit range.

assessments, integration of findings into
systems and procedures, follow-up assessment

Although response options are notof initiatives, and disclosure of information tocompletely consistent with the previous

stakeholders. Overall, 25.9% of companies

survey due to the revisions, implementation

reported that they are not engaged in humanof "Respect (Principles)" items stood in therights DD (this figure was 70.4% for companies

40-60% range, an overall improvement. (Forwith less than 250 employees, and 40.0% forinstance, referencing international human

companies in the wholesale, retail, services,

rights standards rose by 5.4%, commitment

and other non-manufacturing sectors). In thefrom top management was up 6.9%, and2021 Government Survey, 48% of companies

including issues other than labour-relatedchose the "do not conduct/do not know"

ones in policies rose by 7.3%.) On the

response for human rights DD, a difference

other hand, implementation of "Respectof 22.1% with the results of this survey.

(Operationalisation)" was low, in the 20-

Meanwhile, respondents that selected "Respect

30% range, and is an issue that needs to be(Principles)" items, which are the humanQ24 Which of the following describes your company in terms of human rights due diligence (human rights
DD)? (Select all that apply)
We are not currently conducting human rights DD (not considered necessary).

3.5

We are not currently conducting human rights DD (considered necessary, buthave yet to undertake).

22.4

Respect(Principles)

We offer training opportunities that address business and human rights for all
directors/employees.

54.8

Respect(Operationalisation)

We have incorporated policies on human rights into specific action plans (e.g.
target setting), and engage in monitoring/improvement based on a PDCA cycle.

35.5

Respect(Principles)

We disclose information on efforts related to respect for human rights,
including our policies on human rights, human rights DD, and remedy actions,to stakeholders in an easily accessible and cohesive format.

38.6

Respect(Principles)

We engage with stakeholders on human rights DD in business operations (e.g.
information sessions for customers, SAQ, meetings based on results).

33.2

Respect(Operationalisation)

We set incentives for respect for human rights, including making human rights DD oneof the performance indicators for senior (directors in charge)/middle management.

5.4

Respect(Principles)

We identify salient issues based on the overall perspective of human rights
issues in our company.

42.1

Respect(Principles)

We conduct human rights impact assessments on our value chain and our own
operations (including management divisions) for human rights issues in our company.

28.2

Respect(Principles)

We have an internal division or system that examines cross-departmental
human rights issues and we provide it with the necessary authority/budget forhuman rights activities.

37.5

Other

9.3
(Responses %)

41

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3.

Decent Work and Human Rights

Human rights DD: Year-over-year comparison (%)
26.9

Release information on eﬀorts related to human rights DD to
stakeholders [Respect (Principles)]38.6

Engagement on human rights DD(customer information sessions) [Respect (Principles)]

24.5

33.2

System for examining cross-departmental human rights
issues with authority/budget [Respect (Principles)]

34.6
37.5

Human rights impact assessments for value chain/own operations basedon overall perspective and priority issues [Respect (Principles)] (2021 only)

25.5

Identiﬁcation of salient issues based on the overall perspectiveof human rights issues [Respect (Principles)] (2022 only-1)

42.1

Human rights impact assessments for value chain and own
operations [Respect (Principles)] (2022 only-2)

28.2

Linking human rights DD to the performance appraisal for senior
management (directors in charge) [Respect (Operationalisation)]

2021
2022

4.8
5.4
0

5

10

15

20

25

30

35

40

45%

rights DD processes, remained low in the 20-

guidelines and procedures for remedy and

50% range. The percentage of companies

remediation, of which 92% of companies had

disclosing information on their human rights DD

set up a contact point within the company

efforts to stakeholders was 38.6%, up nearly(1% had set up a contact point in conjunction

12% from the previous survey. Respondents

with a nonprofit and 5% had set up a contact

implementing stakeholder engagement stoodpoint within an industrial association). Thisat 33.2%, up nearly 10% from the previous

survey assumed that an internal contact

survey, due in part to greater ease in answering

point had been set up for group workers,

the question based on provision of concrete

and also confirmed the existence of an

examples. For the previous survey, 25.5% of

external contact point. Whereas 79.9%

companies reported conducting human rights

offered services in Japanese, just 42.9% had

impact assessments not only on their value

multilingual support, a disparity of 37.0%.

chain but also on their own operations, based

This gap in the establishment of overseas

on the overall perspective and prioritisation

or multilingual consultation and grievanceof their own human rights agendas. For themechanisms tends to be the same for othercurrent survey, response options were divided

stakeholder groups. For consumers and local

into two categories. Accordingly, 42.1% ofresidents, the disparity was 23.9%, and forcompanies reported identifying salient issues,

workers of suppliers and customers, it was

and 28.2% reported conducting human rights

19.3%. Human rights violations can occur

impact assessments on their value chains andeven when human rights DD is thoroughly

their own operations, indicating that many

implemented. Consultation and grievancecompanies face challenges in implementing themechanisms made available to stakeholders

latter.

who have suffered violations play animportant role in complementing humanRemediation and Remedy mechanisms (Q25)rights DD and corporate responsibility toThis survey asked about the establishment

uphold human rights. Likewise, it is essentialof grievance mechanisms available forthat companies disclose information on usage

various stakeholders in Japan and overseas.

to gain stakeholders' trust in remediation and

The 2021 Government Survey showed that

remedy procedures. However, only 28.6% of

49% of companies had laid down specificcompanies reported doing so.

42

Decent Work and Human Rights

Decent work for all workers (Q27)

ensure decent work for workers at suppliers

Improvements have been seen in manyand customers was up by 4.5%. Meanwhile,

initiatives on decent work for all workers

responses on the "Promotion" item of lobbying

since the previous survey. For "Respect

the government rose by 1.0%. Although(Principles)" items, there was no change inprogress has been made since the previous

optimisation of working hours (92.8% in

survey, percentages are stagnant in the 40-

the previous survey, 91.9% in this survey),

60% range for "Respect (Principles)" and in the

but there was a 7.6% increase in initiatives

20% range for "Respect (Operationalisation)".

in equal pay for equal work, and a 5.2%

Efforts must be accelerated to realise decent

increase in policies prohibiting modern slavery

work in the value chain, the goal of SDG 8.

and discrimination and harassment of foreign
nationals, including human rights abuses

Initiatives on consumer human rights (Q28)

against technical interns. In response to two

In the previous survey, 35.4% of companies

new items for this survey on companies' own

had yet to implement initiatives on consumer-

workers,  42.1% of companies guarantee orrelated human rights as part of overall efforts

provide a living wage, and 43.2% conduct

to protect human rights. In this survey, theand disclose results of engagement surveys.

figure is 35.9%, indicating that over 30%

For "Respect (Operationalisation)" items, theof companies still do not fully recognise

review of QCD (quality, cost, and delivery) toconsumer rights as their own human rights

Q25 Which of the following describes your company in terms of remediation and remedy mechanisms?
(Select all that apply)
We do not have any specific mechanisms in place.

8.1

Respect(Principles)

We have external consultation/remedy contact points (e.g. lawyers or NGOs) that canbe used by workers of our company and domestic group companies (Japanese only).

79.9

Respect(Principles)

We have external consultation/remedy contact points (e.g. lawyers or NGOs)
that can be used by foreign workers of our company and overseas groupcompanies (multilingual).

42.9

Respect(Principles)

We have a contact point (internal or external) that can be used by anyone outside
the company, including domestic consumers and local residents (Japanese only).

41.3

Respect(Principles)

We have a contact point (internal or external) that can be used by anyone
outside the company, including consumers and local residents in businessdevelopment areas overseas (multilingual).

17.4

We disclose information on the usage of contact points, procedures, content
of grievances, and response measures, including above four response options .

28.6

Respect(Principles)

We engage with stakeholders who may use these mechanisms in order toreview consultation and grievance procedures.

12.7

Respect(Principles)

We have a consultation/grievance mechanism in place available to workers atdomestic suppliers and customers (at the organisational level).

40.5

Respect(Principles)

We have a consultation/grievance mechanism in place available to workers atoverseas suppliers and customers (at the organisational level).

21.2

Respect(Principles)

We work with victims (or the individuals/organisations representing them)and engage with suppliers, clients, and third parties (e.g. NGOs) to have
remediation and remedy in place.

22.4

Other

4.2

Respect(Operationalisation)(Responses %)

43

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3.

Decent Work and Human Rights

issue. On the other hand, companies taking

human rights is efforts to respect humanmeasures to address human rights violations

rights in order to avoid negatively impacting

against consumers and users of their

human rights.

products and services increased by 4.5% toreach 11.2%. However, the response rate on

Initiatives on the human rights of local

efforts to respect consumers' human rights

communities (Q29)

was extremely sluggish, in the 10%-20%

Results of last year's survey revealed that

range. For instance, only 21.2% of companies

the rights of local communities were areported having opportunities for consumer

human rights issue that companies needed

engagement in a new response option. It

to address, similar to the human rights ofshould be noted that even BtoB companies

consumers. A drop of 3.7% was seen in(companies that do not directly interact withcompanies not addressing the human rights

consumers) have a corporate responsibility toof local communities, which stood at 31.7%.

uphold human rights when there are negative

Also at 31.7% were companies that gather

impacts on consumers' human rights due toinformation and conduct human rights

their products and services.

impact assessments in the countries andregions where they operate. Likewise, 42.5%

Meanwhile, 38.6% of companies wereof companies had set up opportunities toworking to contribute to the realisation ofengage with local communities.

human rights through their products andservices, up 7.7% from the previous year.

The negative impacts of business on human

The prerequisite for such efforts to promoterights are magnified against the backdrop

Q27 Which of the following describes your company in terms of realising decent work for all workers?
(Select all that apply)
We are not taking any specific measures (not considered necessary).

0.8

We are not taking any specific measures (considered necessary, but have yet to undertake).

4.6

Respect(Principles)

We monitor the working hours of workers (employees) in our groupcompanies and make efforts to optimise working hours.

91.9

Respect(Principles)

We have developed or are considering developing a system for equal pay for
equal work in our company.

61.0

Respect(Principles)

We have a policy to guarantee a living wage for our company's workers (employees),and have confirmed that we are providing wages that exceed a living wage.

42.1

Respect(Principles)

We have a policy in place prohibiting forced and compulsory labour, human trafficking,and long working hours, including by technical interns, in our company and for ourcustomers, as well as a policy prohibiting discrimination/harassment of foreign nationals.

65.3

Respect(Operationalisation)

We take corrective actions to ensure decent work (e.g. living wage, working
hours) at suppliers and customers, including review of our own QCD (quality,
cost, delivery) requirements.

22.0

Respect(Principles)

We conduct and disclose results of engagement surveys to measure the levelof decent work among our company's workers (employees).

43.2

Promotion

We lobby the government (either on our own or through affiliatedorganisations) to ratify treaties and legislation and solve problems to ensure
decent work in countries/regions where we operate.

2.3

Other

1.9
(Responses %)44

Decent Work and Human Rights

of systemic challenges such as racism andon addressing these issues, an urgent task.

gender discrimination that persist in acountry or region. The resolution of systemic

In terms of promotional initiatives, 26.6% ofchallenges is essential for the realisation ofcompanies are working through their corea sustainable society, making improvementbusiness activities, and 36.7% engage in socialof the current situation, where only 7.7% of

contribution activities. In contrast, only 3.9% ofcompanies have indicated corporate policy

companies make policy recommendations to

Q28 Which of the following describes your company in terms of human rights initiatives for consumers thatcome into contact with your products and services? (Select all that apply)
We are not taking any specific measures (not considered necessary).

17.8

We are not taking any specific measures (considered necessary, but have yet to undertake).

18.1

Respect(Principles)

We make active efforts to have opportunities for engagement (dialogue andcollaboration) with consumers about our company (including business activities,
products/services, social contributions, and environmental protection activities).

21.2

Respect(Principles)

We understand the human rights issues of consumers and users (end users)
who are involved with our business.

26.6

Promotion

We offer products/services (e.g. universal design) that reflect the needs ofminority consumers/customers.

36.3

Respect(Operationalisation)

We take measures to address human rights abuses (e.g. hate speech on social
media platforms) of consumers/users of our products/services.

11.2

Respect(Principles)

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

27.4

Promotion

We contribute to the greater realisation of human rights through our products/services.

38.6

Other

6.9
(Responses %)Q29 Which of the following describes your company in terms of efforts to address the human rights oflocal communities potentially impacted by your business? (Select all that apply)
We are not taking any specific measures (not considered necessary).

9.3

We are not taking any specific measures (considered necessary, but have yet to undertake).

22.4

Respect(Principles)

We make active efforts to have opportunities for engagement (dialogue andcollaboration) with local communities about our company (including business activities,
products/services, social contributions, and environmental protection activities).

42.5

Respect(Operationalisation)

We have corporate policies (either as a company or group) in place to address the
structural problems of human rights abuses in the countries/regions where we operate.

7.7

Respect(Principles)

We conduct periodic information gathering and human rights impact assessments tounderstand the human rights issues that exist in the countries/regions where we operate.

31.7

Promotion

We engage in activities (either in-house or in collaboration with other parties) toresolve human rights issues in countries and regions through our core business.

26.6

Promotion

We engage in social contribution activities (either as a company or in collaboration
with other parties) to resolve human rights issues in countries and regions.

36.7

Promotion

We make policy recommendations to national government (either as acompany or group) to address national- or regional-level human rights issues.

3.9

Other

4.6
(Responses %)

45

3

3.

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3.

Decent Work and Human Rights

the government (although this is an increase

Regarding incorporation into corporate systemsof 2.6% compared to the previous survey). The

and business processes, we can look to

government plays an essential role in resolving

the average value of responses on "Respect

structural problems and other human rights(Principles)" in Q23-25. These questions areissues, including through legal policy. While italigned with the UNGPs, which propose a

may be difficult for companies to take action

process for management of initiatives on humanon their own, they are expected to expand

rights. The average for six items on humantheir efforts through multistakeholder initiatives.

rights policy (Q23) stood at 60.6%, while the

However, it must be emphasised that the major

five items on human rights DD (Q24) were atpremise of promotional efforts is the realisation

39.1%. Likewise, the eight items for remediationof respect for the human rights of the local

and remedy (Q25) averaged at 34.8%.

communities.

Although some options did have a response

Management initiatives on decent work andprioritise efforts on "Respect (Principles)", whichhuman rights

are the most basic items for integrating respect

Below, we consider the extent to which

for human rights into corporate management.

rate of around 80%, companies are expected toinitiatives on decent work and human rights
are integrated into corporate management

Messages for the future

based on two points from this survey: (1)the commitment of top management, andGlobal crises such as the Russian invasion of(2) incorporation of initiatives into corporate

Ukraine and climate change have made thesystems and business processes.

international community keenly aware of theimpossibility of realising a sustainable society

In terms of commitment by top management,

without achieving respect for human rights

68.3% of companies reported having a

in the corporate value chain, an awarenesscommitment on human rights policy from top

that is now shared. Are Japanese companies

management in Q23. In the 2021 Government

keeping pace with this shared awareness?

Survey, 460 out of 760 companies reported
that human rights policy is endorsed at the

Questions in this survey on the processes

highest level of the company, for a rate of

involved in respect for human rights (Q23-

60.5%. This survey's figure is 7.8% higher25) continually showed higher results than

than the Government Survey's results, andthe 2021 Government Survey. While thefuture challenges can be seen in differencesmore proactive efforts of GCNJ businessby industry and company size. The highest

participants are commendable, when viewing

rate of 78.6% was recorded for the electrical/

the progress for GCNJ overall, increases

precision/machinery and automotive/transport

in numerical results are slight, despite theequipment industries, while the lowest

overall trend towards improvement.  

rate of 54.0% was seen in the wholesale/retail, services, and other non-manufacturing

For instance, the previous survey indicatedindustries, a gap of 24.6%. Moreover, 83.2% of

implementation and review of "Respectcompanies with more than 5,000 employees(Principles)" items to be an urgent issue. For thehave clarified human rights policies, comparedcurrent survey, the average response rate forto only 44.4% of companies with less than 250

all "Respect (Principles)" items was 44.3%, only

employees.

a slight increase from 42.1% in the previous
survey, and still less than half. The current

46

Decent Work and Human Rights

situation must be taken seriously. Likewise,

the international community moves forward,

insufficient awareness of the human rights ofJapanese companies are under pressure to

consumers and local communities is an issue

further accelerate and expand their efforts tothat has persisted since the previous survey. As

address business and human rights.

Case study spotlight on stakeholder engagement initiatives
Examining corporate efforts to respect human rights in light of the UNGPs, engagement with thestakeholders who are affected by corporate activities is imperative, not only in the formulation andrevision of human rights policies, but also in the implementation of human rights due diligence andremediation and remedy. However, in reality, companies face difficulties in determining with whom to
conduct engagement and how to go about doing so. Therefore, this survey focused on engagementwith stakeholders and collected examples of relevant initiatives.
For example, the "human rights risk" raised in
the UNGPs differs from management risk – itis the risk that corporate activities may havea negative impact on the human rights ofstakeholders. In the absence of engagementwith the parties involved, companies areunable to identify and, if necessary, prioritizethese risks. Survey results reveal that
"employees" was selected as a response at
a rate of 78.4%, followed by "NGOs, experts,
and investors" at 51.6%. Engagement withexternal experts (e.g. human rights NGOs
and researchers) can greatly help companies
promote respect for human rights, but cannot
serve as a substitute for direct engagementwith affected stakeholders such as workers,
consumers, and local communities.

Q26 Examples of initiatives in the formulation orrevision of policies and those that reflect
remediation and remedy mechanisms
in which companies have conductedengagement with persons subject tocompany's respect for human rights.
(2) Please select the subject of engagement(dialogue). (Select all that apply)
Employees

78.4

Suppliers

49.0

Customers

38.6

Consumers

18.3

Local communities

22.2

NGOs, experts, investors

51.6

Other
6.5
A variety of examples of engagement with
(Responses %)stakeholders and external experts were
submitted in this survey. Examples shared byrespondents included: disclosure of a list of initiatives with stakeholder; explanation of the systems
and processes of engagement conducted in the areas of labour, procurement, and customer service;and heightening awareness of the status quo of human rights issues in general through dialogue
with external experts. Some companies have gone a step beyond addressing human rights issues ingeneral and are engaging with stakeholders affected by their business activities (particularly thosewith high human rights risks) and disclosing information about such engagement. After identifying
distribution channels for procurement items with high human rights risks (coffee bean cultivation in
Ethiopia and Tanzania), Asahi Group Holdings conducted interviews with relevant stakeholders to
identify potential human rights risks. The Sumitomo Corporation engages with local communities
in resource development projects in Madagascar in coordination with its objectives to promote
employment and improve technical skills and safety awareness.
The United Nations have repeatedly confirmed the importance of meaningful stakeholder
engagement. Meaningful engagement implies dialogue with those who play an essential role aspartners in monitoring corporate efforts to respect human rights, including the individuals andcommunities, labour unions, human rights and environmental activists, civil society, and others affectedby corporate activities. As such, engagement provides a source of effectiveness and legitimacy to
a company's initiatives on human rights. While the practice of engagement is truly "easier said thandone", companies are expected to increasingly enhance the quality of engagement without making
communication with institutional investors and NGOs their main objective.

47

3

3.

4

3.

Sustainable Consumption
and Production
Transitioning to a new economic
system that goes beyond the 3Rs

Mizuki Kato

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

Rina Kurumisawa

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

Chika Aoki-Suzuki

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

 comparison of this year's results and last year's clearly shows that circularAeconomy initiatives continue to grow toward realising SDG 12.
 8.9% of companies (24.8% increase from the previous survey) reported having
7
clarified internal policies on sustainable consumption and production, indicating
the high priority given to SDG 12 by a majority of participating companies.
 fforts have progressed in sustainable procurement of raw materials, circularE
product design, and conversion to recycled materials/resources, particularly inthe manufacturing sector. Initiatives at the product use stage are also on the rise,
including sharing businesses and Product-as-a-service (PaaS), for which reports
were limited in the previous survey. Efforts geared toward establishing circularsystems are underway across the entire life cycle of products and businesses.
 apanese companies are expected to continue their efforts to improve theJcircularity of their operations with a focus on international trends, and to develop
their business to simultaneously contribute to other environmental issues suchas biodiversity loss and pollution. Further consideration is expected to be given
to the management of environmental and traceability information for consumers
and suppliers, including those on circularity and material efficiency.

48

Sustainable Consumption and Production

survey, only those in industries deemed

Significance and Rationale

to have a significant direct or indirect

Sustainable consumption and production

involvement with natural resources were

(SCP) is crucial to achieving the SDGs, andasked to respond. However, seeing thatbusinesses have a critical role to play in

SDG 12 is not limited to specific industries,

its realisation. As a sequel to the previous

companies in all industries were asked toyear, this year's report examines SDG 12. It

respond to the current survey.

analyses the status of initiatives related to
SCP, including the Circular Economy (CE) –Results and Discussion

a concept aimed at creating an economy inwhich the value of products and resources

Status of circular economy (CE) initiatives:is conserved and maintained for as longyear-on-year comparisonas possible and waste generation is kept

First, a comparison of the current survey andminimal. Cooperation throughout thethe previous survey conducted in 2021 is

supply chain, including with consumers, ispresented. As the previous survey was limited

indispensable for achieving SDG 12.

to sectors closely related to natural resources(food/other manufacturing, chemicals/

For this reason, the survey asked questions

pharmaceuticals, construction/electricity/gas/

about information disclosure on circularity attransport, and machinery/equipment), thethe corporate level with regard to consumers

year-on-year comparison indicates results forand suppliers.

these sectors only.

The first half of questions on SDG 12 ask

Status of policies and commitments (Q30)

companies about their efforts in consumption

With regard to internal policies on SCP, 78.9%

and production processes, while the secondof respondents reported having clarified

half contains questions on efforts targeting

policies, presenting an increase of 24.8%

consumers and suppliers. In the previous

since the previous survey.

Status of policies and commitments on SCP (2021 comparison) (Q30)010Have not clariﬁed policies

20

30

40

50

70

80

90%

22.9

12.4

54.1

Have clariﬁed speciﬁc policies
Top management has expressedcommitment

78.9

54.1
58.2

Entire value chain is subject to policies andcommitments

49.0

Engage in dialogue with stakeholders and seek advice
from experts when formulating/revising policies

29.4

Policies, commitments, plans and performanceare linked and information disclosed in list form

37.6
24.8
27.8

Policies and plans include risk management
Have set measurable targets related to theeﬃcient use of natural resources
Other

60

31.8
3.2
5.2

2021
2022

Note 1: Respondents were instructed to select all that apply.
Note 2: Options for which results not shown were added or deleted for the 2022 survey.

49

4

3.

4

3.

Sustainable Consumption and Production

Status of CE initiatives by business model (Q31)

Status of collaboration with stakeholders

An increase was observed for most initiatives(Q32)

compared to the previous survey. In

Collaboration with stakeholders was also on

particular, sustainable procurement of raw

the rise.

materials and the development of sharing
services increased by more than 10%,

Status of CE initiatives: trends by sector (allindicating progress since the last survey.

sectors)

Conversion to recycled materials/resources,

Next, let's take a closer look at trends byresource-saving on packaging materials, andsector for all 259 participating companies.

extending product value also exhibited anincreasing trend. Establishment of systems

Trends in companies focusing on SDG 12 byfor collection, reuse, recycling, and resale cansector (Q8)also be viewed as being on the rise when the

Looking at trends in companies focusing

newly added response option, "not directly

on SDG 12 among all 17 of the SDGs, overengaged in, but participating in related

90% of respondents in the "food and otherprojects and initiatives", is taken into account.

manufacturing", "chemicals, pharmaceuticals,

Status of CE initiatives by business model (Q31) (2021 comparison) (Q31)
0

10

20

30

40

Procurement of sustainable raw
materials

2021
2022

Introduction of circular product design

2021
2022

69.4
71.6

Switch to recycled materials/resources

2021
2022

70.1
78.4

Development of/switch to alternative
materials

2021
2022

Indication of environmental information(material eﬃciency)

2021
2022

Reduction/saving of resources used inpackaging materials

2021
2022

75.8

Extension of product life/value

2021
2022

66.9

Development of sharing services

2021
2022

Development of product as a service(PaaS)

2021
2022

31.2
34.5

Introduction of returnable/deposit
product systems

2021
2022

34.4
34.5

Establishment of system tocollect/recycle our own used products

2021
2022

Establishment of system torepair/resell/remanufacture our own products

2021
2022

32.5
31.4

Establishment of system to collect/reuse/recycle
used products including other companies' products

2021
2022

34.4
35.1

59.9

52.2

23.6
19.6

17.2
13.4

38.9

16

15.3
9.3
16.6

74.7

1

19.7
4.6 0.5 15.5

18.6

38.9

48.4

30.4

8.9
5.7

16.6
11.3

21.6

43.3

25.8

4.6

1.5

27.3

52.2

22.2

22.3
22.2

19.1
16

8.2

62.4

23.2

22.3
14.4

Under implementation
Not directly engaged in, but participating in related projects and initiatives
Not directly engaged in, but funding related projects and initiatives

8.3
10.3 2.6 6.7
0.5

83.5

3.1

10.2
9.8

5.7

10.3

22.7

16.6
20.1

1.5

14.6
2.6 7.2

1.5

30.6
19.6

1

29.4

1

17

0.5

100%

21.7

16

38.9
38.7

90

20.4
2.1 10.8

2.1

0.5

80

25.5

0.5

1

70
1.5

53.6

23.6

26.3

60

71.1

37.6
41.2

14

50

45.9

27.8
17.5
25.3
13.9

Under consideration
Not implemented or under consideration
Not applicable to our sector

Note 1: "Not directly engaged in, but participating in related projects and initiatives", "Not directly engaged in, but
funding related projects and initiatives", and "Not applicable to our sector" were added as response options
starting with the survey.
Note 2: Comparisons are made only for industries closely related to natural resources that participated in theprevious year's survey (food/other manufacturing, chemicals/pharmaceuticals, construction/electricity/gas/transport, and machinery/equipment related).

50

Sustainable Consumption and Production

petroleum, and other materials", andmanufacturing" sectors are relatively proactive"electrical/precision/machinery andin sustainable procurement of raw materials

automotive/transport equipment"  sectors

and procurement that does not damage

reported focusing on SDG 12. Percentages

environment such as forests. Also, “utilisation

were in the 70-80% range for other industries,of unutilised domestic biological resources” isindicating that SDG 12 is a goal of focus fora type of initiative expected to contribute tocompanies in all industries responding.

the "Regional Circular and Ecological Sphere"1
promoted by the Ministry of the Environment,

Status of CE initiatives by business model

which aims to revitalise regions based on(Q31)

utilisation of local resources. Although

To understand the status of implementation

implementation is limited compared to thefor each response item, the table and graphabove two items, more active efforts areon the next page summarise the percentage

expected in the future.

of respondents that answered "under
implementation" for each item, shown by

Next, looking at trends in the main CE

sector.

initiatives, more than 50% of all responding
companies reported implementing

Firstly, for items related to the use of

initiatives in “sustainable procurement

natural resources, results indicate that theof raw materials”, “environmentally non-"chemicals, pharmaceuticals, petroleum,damaging procurement”, “circular productand other materials" and "food and otherdesign”, “switching to recycled materials/

Collaboration with stakeholders (Q32)
2021

45.2

2022

32.5

50.0
0

10

20

22.3

29.4
30

40

50

60

Under implementation
Not implemented or under consideration

70

19.1

1.5

90

100%

80

Not implemented, but under consideration
Other

Note: Comparisons are made only for industries closely related to natural resources that participated in the previous
year's survey (food/other manufacturing, chemicals/pharmaceuticals, construction/electricity/gas/transport, andmachinery/equipment related).

Focus on SDG 12 by sector (Q8)
0

10

20

30

40

50

60

70

80

90

100%

Food and other manufacturing

91.2

Chemicals/pharmaceuticals/petroleum
and other materials

92.3

Electrical/precision/machinery andautomotive/transport equipment

91.1

Construction/electricity/gas/transport, and real estate

83.3

Information/communication and ﬁnance

67.7

Wholesale/retail,service/other non-manufacturing

74.0

 https://www.env.go.jp/seisaku/list/kyoseiken/index.html

1

51

4

3.

4

3.

Sustainable Consumption and Production

Status of CE initiatives by business model (ratio of implementation by sector (Q31)
Food and othermanufacturing

Chemicals/
pharmaceuticals/petroleum
and other materials

Electrical/precision/machinery and automotive/
transport equipment

Construction, electricity/
gas/transport, and realestateInformation/communicationand finance

Wholesale/retail,service/other nonmanufacturing

34

52

56

36

31

50

Procurement of sustainable raw materials

82.4

80.8

66.1

61.1

19.4

44.0

Environmentally non-damaging procurement

70.6

65.4

55.4

66.7

29.0

40.0

Utilisation of unutilised domestic biological resources

26.5

23.1

7.1

16.7

3.2

12.0

Circular product design

67.6

80.8

75.0

72.2

16.1

34.0

Switch to recycled resources

79.4

84.6

78.6

75.0

45.2

48.0

Development/introduction of sustainable
alternative materials

70.6

57.7

33.9

58.3

9.7

32.0

Indication of environmental information (e.g.
material efficiency)

52.9

36.5

44.6

30.6

6.5

24.0

Resource saving in packaging materials

79.4

92.3

87.5

66.7

22.6

50.0

Extension of product life/value

67.6

61.5

94.6

77.8

12.9

40.0

Development of sharing services

35.3

13.5

28.6

27.8

16.1

24.0

Product as a service (PaaS)

35.3

23.1

44.6

33.3

19.4

36.0

Introduction of returnable/deposit product systems

29.4

48.1

35.7

16.7

3.2

16.0

Respondent companies(Responses %)Status of CE initiatives by business model (by sector, number of companies) (Q31)
Procurement of sustainable
raw materials
Environmentally
non-damaging procurement
Utilisation of unutilised
domestic biological resources

28

42

24
9

12

Circular product design

4 6

1
6

23

Switch to recycled materials/
resources
Development/introduction ofsustainable alternative materials
Indication of environmental
information (e.g. material eﬃciency)
Resource saving in packaging
materials
Extension of productlife/value
Development of sharing
services

31

42

44

24
19

19
25

27

11

2

21

7

16

Product as a service (PaaS)

12

12Introduction of returnable/deposit
product systems

10

10

5

25
20

40

5

17

27

14

24

24

7

25

4

20

16

28

12
12

20
30

22

12

53

25

20

49

32

12

6

9

26

3

48

23

22

44

30

18

10

24

42

27

0

37

34

50

6

6
1
8

60

18

70

80

90

100 110 120 130 140 150 160 170 180

Food and other manufacturing

Chemicals, pharmaceuticals, petroleum, and other materials

Electrical/precision/machinery and automotive/
transport equipment

Construction, electricity/gas/transport, and real estate

Information/communication and ﬁnance

Wholesale/retail, service/other non-manufacturing

Note: Figures in the graph represent the number of companies that responded "under implementation".

52

Sustainable Consumption and Production

resources”, “resource-saving packaging”,

reporting initiatives in these areas. Next, theand “extension of product life/value”. These

extension of product life/value was the top

results indicate that initiatives related to raw

response for companies in the "electrical/

materials, product design, and packaging are

precision/machinery and automotive/

becoming increasingly dynamic. In particular,transport equipment" sector, while

70-80% of companies in the "chemicals,

introduction of deposit systems and inclusion

pharmaceuticals, petroleum, and otherof environmental information were in the 30-

materials" and "electrical/precision/machinery

50% range, mainly among companies in theand automotive/transport equipment" sectors

manufacturing sector. Although responses

reported reduced use of natural resources,

on sharing services and PaaS initiatives

introduction of circular product design

also increased since the last survey, they

compatible with the 3Rs and extension

remain more limited than other items, withof product life, and using or switching to

the highest figure of roughly 35% for foodrecycled materials/resources. Even in the

products. More initiatives at the product"information/communication and finance"

use stage, consumer-related efforts suchand "wholesale/retail, service/other non-as deposit systems, and efforts in productmanufacturing" sectors, which are less directly

information are expected to lead to therelated to natural resources, companies

establishment of circular systems that spanswitching to recycled materials/resources

the entire life cycle of products.

were in the 40-50% range.
Status of initiatives for consumers andMoreover, perhaps alongside the rise of

suppliers (Q34)

efforts to address plastic packaging materials,

For efforts related to the circularity ofmany industries have made progress in

products and services geared to encouraging

reducing packaging materials and resource-

circular behaviour by consumers andsaving for containers and packaging, with

suppliers, the indication of information

close to 90% of companies in the "chemicals,

for consumers or customer companies on

pharmaceuticals, petroleum, and othercircularity (e.g. recyclability, repairability) wasmaterials" and "electrical/precision/machinery

the most common initiative, implemented by

and automotive/transport equipment" sectors

roughly 43% of companies. Next was productStatus of provision of initiatives/products/services and product information labelling for consumers andsuppliers (Q34)0Initiatives to promote circularbehaviour (for suppliers)

10

20

18.1

Indication of circularity,e.g. eco-labelling
Product design and service provision thatcan encourage circular behaviour
Indication of traceability information
Indication of information on circularity
for consumers and customer companies

30

40

50

60

70

23.2

20.5

80

90

100%

30.9

17.4

27.8

1.5
1.2

13.5

15.8

21.2

37.5
25.9

25.5

1.5
0.4

14.3

17.8

42.9

0.4
1.9
0.4
0
0.4
0

Not implemented or under consideration
Not implemented, but under consideration
Under implementation
Not directly engaged in, but participating in related projects and initiatives
Not directly engaged in, but funding related projects and initiatives

53

4

3.

4

3.

Sustainable Consumption and Production

design and provision of services that facilitate

manufacturing sector. Meanwhile, initiatives

circular behaviour by consumers or customers

at the product use stage, such as sharing and(e.g. taking used products to collection

PaaS business models, which were reported

points, using refills) and initiatives to facilitate

only to a limited extent in the previous survey,

circular behaviour by suppliers (e.g. improving

showed an increasing trend. In particular,

product design and manufacturing processes,

many companies in the machinery andproviding trainings). On the other hand,equipment sector reported to be currently

although the number of companies indicating

considering this type of initiative, raising

appropriate traceability information for their

expectations for new business development.

products and services is not great at present,
about one-quarter of companies reported it

More than 50% of companies areto be under consideration. Ascertainment andimplementing or considering initiatives

disclosure of product traceability information

targeting consumers and suppliers, indicating

are expected to progress in the future. As forthat efforts are progressing throughout the life

eco-labels adopted to indicate environmental

cycle of products toward the establishment

information, the use of domestic andof circular systems. Companies are expectedinternational labelling and certification

to continue efforts to enhance circularity.

systems was reported, including Japan's "Eco

These efforts may include rethinking productMark" and various international eco-labels.

supply chains to reduce the burden of various
responses to circularity, and taking into

Example practices of CE

account a balance between circular economy

In this year's survey, companies reported

business and other environmental issues

on CE-related cooperation and initiatives.

such as climate change, biodiversity loss, andSpecifically, CE was reported to be thepollution, as well as business development

impetus for collaboration within industries

that contributes to solving social issues.

or in the value chain. Major examples
included cooperation with recyclers in the

As diverse stakeholders, both public andcollection and recycling of used containers,

private, are involved in the promotion of CE,

the development of technologies for resource

it will also be necessary going forward torecycling, and for this year's results, efforts

define and communicate the challenges andin services that promote the circular use of

expectations of companies in promoting CE

products, such as Mobility as a Service (MaaS)

business models.

and PaaS (Product as a Service). A selection
In addition to internal awareness-raising andof initiatives is highlighted on page 56-57.

policy responses, clarifying the aims of CE
initiatives for their own products (e.g. securing

Messages for the Future

raw materials, environmental measures

This survey revealed that most respondent

to address climate change, acquiring newcompanies continue to strengthen their CE

customers, securing employment, andefforts to realise SDG 12.

revitalising local communities) is anotherimportant point for companies.

Continuing from the previous survey, initiatives
advanced in sustainable raw material

Requirements for traceable environmental

procurement, circular product design, andinformation on products, including circularity

switching to recycled resources, mainly in theand material efficiency, are increasingly

54

Sustainable Consumption and Production

prevalent, particularly in Europe. Management

information management.

of this type of information is expected to
become even more important in the future.

In addition, although the use of a varietyof certification and labelling systems was

In managing such information, companies

reported, improving communication withmust keep abreast of international trends andconsumers will remain key for companies,

take into account collaboration with relevant

including consideration of the assessment

stakeholders in the supply chain and the use

criteria of labels and selecting appropriate

of internal systems and digital technology

labels that are aligned with corporate

for information management. They should

philosophy and materialities.

also take into consideration the costs of

55

4

3.

4

3.

Sustainable Consumption and Production

Main type ofcooperation

Related Initiatives

Collaboration withdownstream industry,
local governments, andconsumers (collection,
recycling, and revaluing)●Nippon Paper Industries
In order to build a sound material cycle society and expand biomass
products, Nippon Paper Industries is actively recycling unused waste paperthat is difficult to recycle. Since April 2021, with support from Hamamatsu
City, the company has been conducting a demonstration project on
separation and collection of paper food containers such as yoghurt
and ice cream containers and paper cups from households in the city.
Together with Hamamatsu Green Wave Co., Ltd. and the nonprofit Ecolife
Hamamatsu, collection boxes were placed at environmental education
facilities in Hamamatsu City. The paper food containers collected are usedas raw material for paper production at the company's plant. This recycling
project contributes to raising consumer awareness of recycling, reducing
the amount of incinerated waste, and fixing carbon through the long-term
use of wood resources.
●Mitsubishi Materials
Waste, e-scrap and other materials are crushed and sorted at the company's
valuable metals recycling facility. These are then processed into raw materials(slag and metal) for copper smelting, and recycled as copper, gold, silver
and other base metals. Valuable resources are not wasted, but are restored
and reborn into valuable metals through recycling. The heat generated at thevaluable metals recycling facility and in the copper smelting process is also
used to generate electricity. The Mitsubishi Materials Group will continue toefficiently operate and expand its recycling operations, which are number one in
the world in processing capacity, and promote contributions to resources, theenvironment, and local communities for the development of a sustainable andprosperous society. The Mitsubishi Materials Group's annual processing capacity
is approximately 160,000t, accounting for about 20% of the 800,000t generated
worldwide. As the e-scrap market is expected to expand alongside the growing
momentum for resource recycling, the Group aims to further increase its
processing capacity to approximately 200,000 t/year by the end of FY2030.

Intra-industry/value
chain cooperation(reduction of resource
use in transport, MaaS,
etc.)●Anritsu Corporation
For the domestic transport of its products (mainly measuring instruments),
Anritsu, with the consent of its customers, promotes "packageless" delivery
in cooperation with shipping companies aimed at reduction and reuse of
packaging materials. Specifically, returnable boxes are used for delivery of
new products and pick-up of products for repair, and packaging is reduced
to only protective polyethylene bags, with cushioning materials reused.
Compared to conventional transport, packaging waste is reduced by 94%
per vehicle/track and is therefore actively proposed to customers.
●Yamaha Motor Company
The company established the Moto Business Service India Pvt. Ltd. (MBSI),a new mobility services company in India, and began renting motorcycles
to Royal Brothers, a local mobility services provider that offers two-wheel
vehicle rental services. MBSI conducts an asset management businessby renting motorcycles to Mobility as a Service (MaaS) enterprises thatoffer sharing, taxi, and logistics services. The project also contributes toimproving people's quality of life by creating work opportunities (SDG 1).
The company aims to expand the mobility service business in India throughcollaboration with Indian MaaS operators.
●Itoki
Itoki formed a business alliance with CLAS Inc., which operates "CLAS", acircular PaaS for durable materials, to provide a subscription service for thecompany's furniture. The company is working to contribute to achieving
SDG 12 on Responsible Consumption and Production via its efforts torealise a "society where nothing is thrown away".

56

Sustainable Consumption and Production

Main type ofcooperation
Intra-industry/value
chain cooperation(technology
development with othercompanies)

Related Initiatives●Seiko Epson
The company established the Pararesin Japan Consortium to develop andpromote pararesin technologies, a type of biomass plastic. The company
is engaged in the joint technological development of a pararesin using
Paramylon, a storage polysaccharide of Euglena. The company aims tobe able to supply 200,000 tonnes of this material annually by 2030 aspromising biomass plastic.

57

4

3.

5

3.

Climate Change
Progress on climate action
towards 2030

Kentaro Takahashi

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

Akibi Tsukui

Programme Manager
Climate and Energy Area
Institute for Global Environmental Strategies (IGES) pproximately 70% of companies have clarified policies to achieve net zeroAemissions by 2050. In particular, large companies continue to intensify efforts toachieve net zero. Accountability and disclosure of policies and commitments are
required of companies. As a next step, companies that expressed commitments
should link policies, commitments, plans, and performance and disclose thisinformation in list form.
 teady progress has been made in engaging the supply chains in response to theSneed to comply with the Task Force on Climate-related Financial Disclosures(TCFD) and Scope 3 emissions information disclosure. It is important to linkthese efforts to the development of policies that include the supply chain and theidentification of Scope 3 emissions.
 here is wide variation in the identification of Scope 3 emissions depending onT
categories. Designating categories that wield significant impact on corporate
activities before identifying emissions will help companies ascertain the risks andopportunities that the transition to a decarbonised society presents to business
operations.
 chemes that provide incentives for reducing emissions are imperative toSencourage further efforts by companies. Expectations are high for the introduction
and promotion of carbon pricing.

58

Climate Change

and commitments to achieve net zero by

Significance and Rationale

2050?"), some of the response options were

The Working Group III Report of the IPCC 6th

standardised to match questions related

Assessment suggests that to limit temperature

to other SDGs. As such, it should be noted

rise to 1.5℃, greenhouse gas emissions needthat comparisons cannot be made with theto be reduced by 43% by 2030 comparedprevious survey results. The question fromto 2019 levels, with net zero carbon dioxide

the previous survey, "What barriers does

emissions achieved in the early 2050s andyour company/organisation face in achieving

negative emissions thereafter. The Working

net zero (with or without set targets)?",Group II Report of the same Assessment

was excluded from the current one, as net

asserts that any further delay in global action

zero initiatives are expected to continue inon adaptation and mitigation will result in a

the future. Instead, a new question, "Whichmissed opportunity to secure a liveable andcategories are included in your company's

sustainable future. Urgent action is needed

Scope 3 emissions calculations?" (Q37), wasto limit temperature rise and minimise theadded. In light of the growing trend towards

impacts of climate change.

disclosure of Scope 3 emissions, the question
aims to ascertain the status of identification

Currently, governments as well as manyof Scope 3 emissions by category.

private companies and organisations have
set net-zero targets and are working towards

Results and Discussion

achieving them. As these initiatives progress,
there is an ever-increasing demand for non-Status of formulation of policies andfinancial information disclosure by companies.

commitments to achieve net zero by 2050 (Q35)

Non-financial information is important not only

A ratio of 72.2% of companies responded

as information provided to investors, but also

on having clarified policies to achieve net

for sustainable corporate management. The

zero by 2050. When examined by number of

US Securities and Exchange Commission (SEC)

employees, companies with 5,000 or moreplans to require disclosure of information on

employees stood at 86.7%, significantly higher

climate-related risks and emissions by scope.

than the overall figure. Meanwhile, 59.6%

In Japan, companies listed on the Primeof companies with 250 to 4,999 employees

Market of the Tokyo Stock Exchange haveand 37.0% of companies with 10 to 249

been required since April 2022 to disclose

employees responded positively to thisinformation on par with TCFD requirements

question. By sales volume, the figures stoodand report on their initiatives, including thoseat 83.6% for companies with sales exceeding
100 billion JPY, and 44.7% for those with1

in the supply chain and Scope 3 emissions.

sales under 100 billion JPY, showing
For this second survey, four of the six

significant gaps depending on the number ofquestions on SDG 13 were the same as those

employees and sale volumes of companies.

in the previous survey, in order to allow for

By industry, information/communication andmeasurement of progress since 2021. For

finance had the highest percentage at 83.9%,

Q35 ("Which of the following best describes

followed by electrical/precision/machinery

your company with regard to policies

and automotive/transport equipment

 Following the terminology of the Ministry of the Environment, "supply chain" refers to flows such as raw material procurement, manufacturing,
distribution, sales, and disposal, and the greenhouse gas emissions generated from the entire flow are referred to as "supply chain emissions".
Supply chain emissions consist of (1) Scope 1: direct emissions, (2) Scope 2: indirect energy-related emissions, and (3) Scope 3: indirect emissions.

1

59

5

3.

5

3.

Climate Change(80.4%), and construction, electricity/gas/

Status of GHG emissions identification bytransport, and real estate (77.8%), with mostscope (Q36)

industries exceeding 70%. The lowest score

A ratio of 90.3% of companies had identified

was seen for wholesale/retail, service/other

Scope 1 emissions (up 2.8 percentage points

non-manufacturing (50.0%), which differedcompared to the previous year), while thesignificantly from the other sectors.

figure for Scope 2 emissions was 89.6% (up5.9 percentage points), and Scope 3 emissions

When looking at ways that policies andstood at 75.7% (up 1.7 percentage points).

commitments are integrated into corporate

By sector, the wholesale/retail, service/othermanagement, the most common response

non-manufacturing sector scored the lowest at

was that they are expressed as commitments

Scope 1 (68.0%), Scope 2 (68.0%), and Scopeby top management (68.0%). Meanwhile,

3 (46.0%), a significant difference from the

48.3% of companies reported linking policies,

overall figures. By market segment, 98.9% ofcommitments, plans, and performance andcompanies listed on the Prime Market reported

disclosing information in list form. Specifically,

identifying Scope 1 emissions, while 97.9%

although 70.6% of companies in the food

had done the same for Scope 2 emissions andand other manufacturing sector have clarified

89.8% for Scope 3 emissions. Since April 2022,

policies, only 38.2% of companies havecompanies listed on the Prime Market of thelinked their policies, plans, and performance

Tokyo Stock Exchange have been required toand disclosed this information. Companies

disclose information on par with TCFD. These

need to go beyond commitments and takecompanies are leading the way in progress onaction to achieve their goals, which requires

identifying emissions by scope.

accountability and information disclosure on
policies and commitments. Moreover, only

Categories included in Scope 3 emissions

42.5% of companies reported that their policies

calculations (Q37)

and commitments apply to the entire supply

Companies that responded positively to Q36

chain, indicating that companies, regardlesson identifying Scope 3 emissions were askedof number of employees, sales volume, orabout the categories included in their Scopeindustry, face challenges in formulating policies

3 emissions calculations. Scope 3 emissions

that include the supply chain.

can be divided into upstream (related to

Q35 Which of the following best describes your company with regard to policies and commitments toachieve net zero by 2050? (Select all that apply)
We have not clarified policies.

17.4

We have clarified policies.

72.2

Top management has expressed commitment.

68.0

Our policies and commitments apply to the entire supply chain.

42.5

We engage in stakeholder dialogue and seek advice from experts when formulating/revising our policies.

33.6

We link our policies, commitments, plans, and performance and disclose information in list form.

48.3

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

10.0

Other

4.2
(Responses %)60

Climate Change

procurement) and downstream (related

70-80% of companies in non-manufacturing

to post-sale/distribution) emissions. For

industries included these categories in

categories considered upstream, over 80%

their Scope 3 calculations. In particular,of companies include all categories in theiridentification of emissions for "business

Scope 3 calculations, with the exception of

travel" (92.9%) and "employee commuting""upstream leased assets". By industry, more

(91.3%) were advanced, regardless ofthan 90% of companies in manufacturing andindustry. Inclusion of "upstream leased assets"

Q36 Please select, by scope, the greenhouse gas (GHG) emissions that you identify at your company. (Selectall that apply)
Scope 1

87.5%
90.3%

Scope 2

83.7%
89.6%
74.0%
75.7%

Scope 3
Scope of GHG emissions unidentiﬁed

2021

8.7%
7.3%

2022

Scope 1: direct emissions from sources owned or controlled by the company/organisation
Scope 2: indirect emissions from the use of electricity, heat, and steam supplied by other companies
Scope 3: some or all of the indirect emissions from other companies that are related to our business operations

Q37 Which categories are included in your company's Scope 3 emissions calculations? (Select all that apply)
Scope 3 Category

Upstream/Downstream Percentage (%)

Business travel

Upstream

92.9

Employee commuting

Upstream

91.3

Purchased goods and services

Upstream

89.8

Waste generated in operations

Upstream

88.8

Fuel- and energy-related activities

Upstream

87.8

Capital goods

Upstream

86.2

Transport and distribution (upstream)

Upstream

80.1

End-of-life treatment of sold products

Downstream

70.9

Use of sold products

Downstream

64.3

Transportation and distribution (downstream)

Downstream

52.6

Leased assets (downstream)

Downstream

33.7

Investments

Downstream

33.2

Leased assets (upstream)

Upstream

29.6

Processing of sold products

Downstream

28.6

Franchises

Downstream

15.3

Upstream

3.1

Downstream

2.6

Other (upstream)
Other (downstream)(Responses %)

61

5

3.

5

3.

Climate Change

was limited to 46.9%, even in the highest-

review of working practices, reduction

scoring electrical/precision/machinery andof office floor space)" scoring the highest

automotive/transport equipment sectors.

percentage at 95.4% (down 2.2 points
from the previous year). On the other hand,

Looking downstream, gaps were evident

the number of companies that reported

among categories, such as scores forprioritising multiple initiatives increased"processing of sold products" (70.9%), "usesignificantly. The importance of renewableof sold products" (64.3%), "downstream

energy use has shown a further increase,

leased assets" (33.7%), and "franchises"with "increased procurement of electricity(15.3%). Industry-specific characteristics

from renewable energy sources (excluding

were also observed. For example, 73.9% ofrenewable energy certificates)" at 77.2% (upcompanies in information/communication

8.0 points from the previous year), "Corporate

and finance identified emissions related toPower Purchase Agreements (PPAs)" at 35.5%"investments", while only around 30% of other(up 16.3 points), and "introduction of electric

sectors did the same. Meanwhile, 21.7%

vehicles or charging infrastructure" at 40.9%

in the wholesale/retail, service/other non-(up 6.8 points). "Engaging the supply chain"manufacturing sector included emissions

increased 15.7 points from the previous

from "franchises" in Scope 3, compared toyear to reach 41.7%, showing that efforts to

8.0% in the food and other manufacturing

involve the supply chain are making steadysector. A ratio of 85.8% of the manufacturing

progress.

sector overall identified emissions related to"processing of sold products", compared to

Examples of activities that showed

47.4% of the non-manufacturing sector.

differences between the manufacturing
and non-manufacturing sectors included

Responses to this newly added question"introduction of internal carbon pricing"reveal that identification of emissions(45.1% for manufacturing and 17.9% for

upstream is more advanced than identification

non-manufacturing) and "effective use ofof emissions downstream, and that the statusheat" (59.2% for manufacturing and 20.5%

of identifying emissions downstream varies

for non-manufacturing). In the information/

among categories. Emissions related tocommunication and finance sector, companies

business are wide-ranging. It is important forprioritised intangible activities such ascompanies to first identify the categories that"education and training of management,

wield significant impacts on their businessemployees, and other stakeholders" (71.0%)

activities before identifying emissions. In soand "participation in initiatives in Japan anddoing, they will also gain an understanding ofoverseas" (74.2%).

the risks and opportunities that the transition
to a decarbonised society presents to theirExternal environmental improvements tobusiness operations.

achieve net zero (Q39)
There was also no change compared to

Activities to achieve net zero (Q38)

the previous survey in the overall ranking

Compared to the previous survey, thereof responses on the external environmental

was no change in the overall ranking of

improvements required to achieve net zero.

the activities that were prioritised, with

"Increased share of renewables in energy"promotion of energy savings (e.g. energy-mix" received the most responses (88.0%),

saving behaviour, installation of equipment,

followed by "tangible support for companies/

62

Climate Change

Q38 Which of the following activities does your company prioritise to achieve net zero GHG emissions?
(Select all that apply)
Promotion of energy savings (e.g. energy-saving behaviour, installation ofequipment, review of working practices, reduction of oﬃce ﬂoor space)
Increased procurement of electricity from renewableenergy sources (excluding renewable energy certiﬁcates)

97.6%
95.4%
69.2%

Renewable energy certiﬁcatesEﬀective use of heat

41.3%
41.7%

Introduction of electric vehicles or charging
infrastructure

34.1%
40.9%
19.2%

Corporate Power Purchase Agreements (PPAs)

35.5%

23.1%
26.3%

Promotion of the use of hydrogen
Purchase of oﬀset credits (excluding renewableenergy certiﬁcates)

19.7%
24.3%
30.3%
32.8%

Introduction of internal carbon pricing
Introduction of carbon capture, utilisation, andstorage technologies
Investment in research and development on low-carbon anddecarbonisation technologies in our own and other companies
Review of business models and project
portfolios
Education and training of management,
employees, and other stakeholders

17.3%
18.5%
37.0%
39.0%
32.7%
34.0%
52.4%
52.9%
26.0%

Engaging the supply chain

41.7%

Participation in initiatives in Japan andoverseas

52.4%

10.6%
13.1%

Policy recommendations to government

None of these apply

60.6%

14.4%
17.0%

Transformation of people's lifestyles

Other

77.2%

43.8%
49.4%

5.8%
5.8%

2021
2022

1.0%
1.9%

Q39 What external environmental improvements do you think are needed to help your company achieve
net zero? (Select all that apply)
37.0%
30.5%

Strengthening of NDCs(≈ emission reduction targets)

79.8%

Increased share of renewables in energy mix
Intangible support for companies/organisations thatwant to engage in climate action

60.6%
62.5%

Tangible support for companies/organisations thatwant to engage in climate action

64.9%
64.5%
40.9%
42.1%

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

19.7%
19.3%

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

35.1%

Introduction/promotion of carbon pricing

47.1%

33.8%
41.3%

Support for electrifying vehicles
Restarting/utilisation of nuclear power (including
next-generation nuclear power)

19.3%
11.1%
10.4%

Other
None of these apply

43.6%

36.5%

1.9%
1.9%

63

2021
2022

88.0%

5

3.

5

3.

Climate Changeorganisations that want to engage in climate

net zero. These include the introduction ofaction" (64.5%) and "intangible support for

carbon pricing to incentivise reductions andcompanies/organisations that want to engage

environmental improvements that facilitate

in climate action" (62.5%), which includes

utilisation of renewable energies.

energy conservation audits, the Science
Based Targets initiative (SBTi), and TCFD

Climate change risks and opportunities (Q40)compliance.

Companies that reported having identified
climate change risks and opportunities

Necessary external environmental

without integrating them into strategies andimprovements for which responses byplans stood at 10.8% (down 9.4 percentage

companies increased compared to thepoints from the previous year). Meanwhile,

previous survey include: "introduction/

30.5% (up 9.3 percentage points) reported

promotion of carbon pricing" (up 10.6

having identified them internally, including

percentage points to 47.1%); "promotion

at their workplaces, and integrating themof Corporate Power Purchase Agreements

into strategies and plans. Progress is evident(PPAs) and review of virtual PPA systems"in the integration of identified risks and(up 8.5 percentage points to 43.6%);

opportunities into strategies and plans.

"increased share of renewables in energymix" (up 8.2 percentage points to 88.0%);

On the other hand, 13.9% of respondents

and "support for electrifying vehicles" (up 7.6(up 2.4 percentage points from the previous

percentage points to 41.3%). On the otheryear) did not identify any climate change

hand, responses for "enhancing of NDCs (≈risks and opportunities. Specifically, 59.3% ofemission reduction targets)" fell to 30.5%, acompanies with 10 to 249 employees anddecrease of 6.5 percentage points compared43.4% of small and medium-sized enterprises

to last year. Only 19.3% of companies

with sales of less than 100 billion JPY haveselected the newly introduced response

not identified them. The risks posed by

option on the need for "restarting/utilisation

climate change are wide-ranging, from directof nuclear power (including next-generation

factors such as weather to the impact of

nuclear power)". Results showed a growing

policy changes and technological innovations.

expectation among companies regarding

Risks also vary depending on the region

systems to encourage activities to achieve

and community where a company and its

Q40 Has your company identified climate change risks and opportunities and integrated them into yourstrategies and plans?
We have not speciﬁcally identiﬁed risks andopportunities.

11.5%
13.9%

We have identiﬁed risks and opportunities, but havenot integrated them into our strategies and plans.

10.8%

We have identiﬁed risks and opportunities internally, including at
our workplaces, and integrated them into our strategies and plans.

20.2%
21.2%

30.5%

We have identiﬁed risks and opportunities, including the supply
chain, and integrated them into our strategies and plans.
We have identiﬁed risks and opportunities, including local communities where
our businesses are located, and integrated them into our strategies and plans.

30.3%
29.0%
4.3%
5.4%

We have identiﬁed risks and opportunities for local communities, including
the entire supply chain, and integrated them into our strategies and plans.
Other

6.3%
8.1%
2.3%

64

6.3%

2021
2022

Climate Change

supply chain are located. Identifying risks andgoing forward, efforts to engage the supply

opportunities from a broader perspective,

chain on climate change will advance,

including local communities, and developing

including the identification of Scope 3

measures accordingly, is linked to theemissions. These trends are a first stepsustainability of corporate management.

towards boosting efforts across supply
chains. As companies identify emissions,they must reflect them on their policies andMessages for the Futurecommitments, and use them to also identify

The 27th session of the Conference of therisks and opportunities. Going forward,

Parties to the United Nations Framework

climate action must involve not only setting

Convention on Climate Change (COP 27),

targets and implementing measures. It isalso known as the "Implementation COP", wasessential that the outcomes of measures

held in Sharm El Sheikh, Egypt, in November

put in place to achieve these targets are2022, and increasingly highlighted thedisclosed in order to show progress.

importance of measures needed to achieve
the targets of the Paris Agreement.

Reference Materials

Moreover, since February 2022, responses

Information on international initiatives such as

to the energy crisis brought on by the stateSBTiof affairs in Russia and Ukraine have beenhttps://www.env.go.jp/earth/ondanka/required, and various measures will need

supply_chain/gvc/global_trends.html

to be considered in the face of continuing
uncertainty. At the same time, as we respond

Information on supply chain emissions

to the current crisis, we must not delay

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

responses to climate change. Companies andsupply_chain/gvc/en/organisations are increasingly called upon toensure the transparency, accountability, andRecommendations for management strategy

credibility of their climate actions.

planning using TCFD
https://www.env.go.jp/earth/datsutansokeiei_mat01_20220418.pdf

To improve transparency on climate action

65

5

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6

3.

Preventing Corruption
Moving toward the practice of aneffective risk-based approach

Shinya Fujino

Assistant Professor, Faculty of Global Studies, Reitaku
University
Steering Committee Member, Anti-Bribery Committee Japan hile advances have been made on top commitment and the establishment
Wof internal rules, issues remain in the implementation of risk assessments andresponses to their results, with a gap emerging between the two.
 similar gap was observed for third-party management. Although internal rulesA
have been developed, risk assessment, education, and training initiatives have
lagged behind.
 espite a decline in companies clarifying top commitments, respondentDcompanies have not necessarily lost ground in the practice of a risk-based
approach.
 urther promotion of a risk-based approach, including thorough third-partyFmanagement and record-keeping, is required based on GCNJ leadership andcooperation among companies.

often takes the form of "facilitation payments",

Significance and Rationale

where public officials demand small unofficial

Companies shoulder a major responsibility inpayments in return for facilitating procedures.

anti-corruption efforts to achieve SDG target(2) Political corruption involves bribery on a

16.5 – "substantially reduce corruption andrelatively large scale and refers to corruption

bribery in all their forms". In recent years,

among high-level officials and politicians,

bribery, collusion, and other corruption-such as embezzlement, misappropriation,

related initiatives have attracted attention inand bribery involving public property. (3)Japan. Corrupt practices are still widespread

Structural corruption refers to large-scale andin emerging and developing countries, major

long-term collusive relationships establishedlocations of overseas operations for Japanese

between dictatorial regimes and monopoly

companies. Society must come together tocapital in the name of national or public

continue efforts to ameliorate this situation.

interest. (4) International corruption refers
to the above three types of corruption when

There are four main types of corruption. (1)they occur at the international level.

Administrative corruption refers to small-scaleembezzlement and acceptance of bribes. It

International corruption is becoming a more66

Preventing Corruption

serious matter alongside the globalisation ofand other means is considered an importantbusiness. In some emerging and developing

issue in anti-corruption management. Specificcountries, legal governance mechanisms are

initiatives to address these issues that are

not functioning, and can render regulations

required as part of companies' risk-basedon human rights, labour, environment, andapproach are: top commitment, identification

other social issues ineffective. In the backdrop

and assessment of corruption risks,

is the problem of corrupt practices that aredevelopment of internal rules, systems fordeeply entrenched in the day-to-day workings

implementation, and information disclosure.

of the administration and judiciary, distorting

Third-party management is a key component

fair decisions.

of the risk-based approach. In this context,
the following eight questions were included

Accordingly, the international community

with regard to the prevention of corruption

is working to formulate and implementby companies.

comprehensive anti-corruption rules to clarify
the responsibilities of companies coming fromQ41 Top commitments and clarification ofdeveloped countries and make them moreanti-corruption policies (e.g. on bribery

stringent. If companies fail to comply with theand collusion).

rules, they could be subject to huge sanctions

Q42 Assessment of corruption risks

imposed by national judicial authorities,

Q43 Establishment of internal rules for thesuspension of bidding qualifications for public

implementation of anti-corruption

projects, or termination of business dealings

initiatives

and claims for damages from businessQ44 Measures to enhance the effectivenesspartners and financial institutions. In the caseof internal rulesof ESG investment, anti-corruption efforts

Q45 System for third-party management

are an important element of evaluation for

Q46 Initiatives related to third parties (open-

issues related to G and S, and investors may

ended responses)

take action against problematic companies.

Q47 Information disclosure on anti-corruption

As such, companies must approach anti-

Q48 Measures to prevent cover-ups of fraud

corruption initiatives seriously for their own
protection.

Responses for these questions werecategorised into three levels. "Foundational"

In an effort to encourage anti-corruption

refers to the initiatives required of top

efforts by all companies, GCNJ, in cooperation

management to lay the foundation for anwith the Anti-Bribery Committee Japan

internal anti-corruption system. "Growth"(ABCJ), established the Tokyo Principles inrefers to the practical initiatives required2017 to promote collective action on anti-of legal/compliance and sustainability

corruption. The Anti-Bribery Assessment Tool

departments to operationalise the internal

based on the Tokyo Principles encourages

anti-corruption system. "Contribution" refers

companies to take effective measures

to initiatives that require collaboration withfrom a "risk-based approach" (prudent risk

stakeholders to enhance the effectiveness ofmanagement based on accurate assessment

implementation. These three levels do notof corruption risks).

refer to the difficulty of the initiatives, butrather to where responsibility lies for each.

In addition to bribery and collusion, the(Note that the definition of these levels hascover-up of fraud through data falsification

changed since the previous survey. Thus,

67

6

3.

6

3.

Preventing Corruption

the levels set for each question have also

for both years, and some of the companies

changed.)included differ. Accordingly, in addition to
examining the situation in 2022 alone, thefollowing section will compare the two

Results and Discussion

years to the extent possible to ascertain any

This is the second SDGs Progress Reportchanges in companies' efforts.

survey, following the first conducted in 2021.
Although some of the questions in the 2022

Policies and commitments (Q41)survey were modified, the majority remained

A key prerequisite for an organisation's anti-

the same so that progress can be tracked

corruption efforts is a top commitment,by comparing results over time. However,i.e. a clear statement of policy. This

the respondent companies are not identicalcommitment is not a mere formal statement

Q41 Which of the following describes your company in terms of policies and commitments on preventing
corruption (e.g. bribery, collusion)? (Select all that apply)
We have not clarified any policies.

5.4

Foundational

We have clarified policies.

82.2

Foundational

Top management has expressed commitment.

56.4

Contribution

Our policies and commitments apply to the entire value chain.

39.8

Contribution

We engage in stakeholder dialogue and seek advice from experts when
formulating/revising our policies.

24.7

GrowthWe link our policies, commitments, plans, and performance and disclose
information in list form.

15.8

Foundational

We have clarified anti-bribery policies.

73.7

Foundational

We have clarified anti-collusion policies.

57.9

Other

6.2
Responses (%)

Food and other manufacturing

76.5

58.8

Chemicals, pharmaceuticals, petroleum, and other materials

88.5

73.1

83.9

Electrical/precision/machinery and automotive/transport equipment

67.9

Construction, electricity/gas/transport and real estate

69.4

Information/communication and ﬁnance

74.2

48.4

Wholesale/retail, service/other-non manufacturing

28

80.6

40

2022 overall

57.9

2021 overall

73.7

92.3

61.5
0

20

40

60

80

Have clariﬁed anti-bribery policies

100%

Have clariﬁed anti-collusion policies

68Preventing Corruption

but involves management declaring that

Method of assessing corruption risk (Q42)

it will systematically tackle corruption,

The first step in initiatives at the organisational

thereby clarifying the scope of its own

level based on the top commitment issocial responsibility. In this survey, 88.5%

risk assessment. There are stages in riskof companies reported having clarified

assessment, generally starting with a simple

top commitments on anti-bribery policy

classification of risk as high, medium, or low,

and 73.1% with regard to anti-collusion

and moving on to detailed procedures whenpolicy. Efforts tended to be more advanced

the risk is assessed as relatively high. The

in industries generally regarded as high-results for 2022 show that, as in the previous

risk, particularly for companies in theyear, risk assessment (Q42) generally scored"chemicals, pharmaceuticals, petroleum,

lower than top commitment (Q41), indicating

and other materials", and the "construction,that challenges exist in terms of concrete

electricity/gas/transport and real estate"  

organisational initiatives. In particular, aindustries. On the other hand, a comparison

marked lag was seen for companies notwith the previous survey shows a drop oflisted on the Prime Market and companies

approximately 10 percentage points. This

with fewer employees, suggesting that a lackpoint requires careful interpretation, but asof resources for compliance is one of the

discussed below, should not necessarily bereasons for delays in initiatives. In light of thisinterpreted as a falloff in initiatives.

gap, it is necessary to seek realistic solutions,

Q42 What methods does your company use to assess corruption risk? (Select all that apply)
We do not assess corruption risk (and we do not consider it necessary).

5.8

We do not assess corruption risk (although we consider it necessary).

18.9

GrowthWe conduct desk-based research.

33.6

GrowthWe conduct surveys with group employees in Japan and overseas.

38.2

GrowthWe conduct interviews with group employees in Japan and overseas.

24.3

GrowthWe conduct inspections (audits with onsite inspections) at relevant sites in Japanand overseas.

38.6

Other

12.0
Responses (%)
38.5

Conduct desk-based research

20.8
47.6

Conduct surveys with group employees
in Japan and overseas

13.9
28.9

Conduct interviews with group
employees in Japan and overseas

12.5
45.5

Conduct inspections (audits with onsite
inspections) at relevant sites in Japan and overseas

20.8

Companies listed on the Prime Market
Companies not listed on the Prime Market
Overall

13.9

その他

6.9
0

10

20

69

30

40

50%

6

3.

6

3.

Preventing Corruption

such as sharing risk information throughState of development of internal rules oncollective action.

anti-corruption (Q43)
In order to establish an effective system for

Compared to the previous survey, the number

preventing corruption, companies need toof companies conducting interviews with

put practical internal rules in place based ongroup employees in Japan and overseas

the results of risk assessments. In this regard,increased, while the number of companies

68.7% of respondents have internal rules on

conducting inspections at relevant sites inanti-bribery in place, and 47.1% have anti-

Japan and overseas decreased. The increased

collusion rules. This shows that foundationaluse of online tools amid the ongoinginternal rules are largely in place, much the

COVID-19 pandemic may be making it easiersame as in the previous survey. However, only

for corporate groups to conduct interviews

about 20.1% of all companies reported havingwith operation bases, reducing opportunities

region- or country-specific internal rules infor site visits. On-site audits also provide

place. Setting and operating uniform internal

opportunities to gain important information

rules without aligning them with the actualon risks, such as local business practices

situations in countries of operation runs theand organisational culture. While effectively

risk of tokenism, which could undermine theutilising online interviews, companies need toeffectiveness of the rules. There is, therefore,

conduct regular site visits to practice a risk-

an urgent need to develop internal rules

based approach.

in line with risk levels and local realities. In
this respect, results show some setbacks

Q43 What internal rules does your company have in place for specific anti-corruption procedures?
(Select all that apply)
We have no specific internal rules in place (and we do not consider themnecessary).

3.9

We have no specific internal rules in place (although we consider them necessary).

13.1

GrowthWe have anti-bribery rules in place.

68.7

GrowthWe have anti-collusion rules in place.

47.1

GrowthWe have region- or country-specific rules in place.

20.1

Other

14.7
Responses (%)

23.7

2021 169 companies responding
two consecutive years

50.3
74.0
24.3

2022 169 companies responding
two consecutive years

52.1
76.3
0

10

20

30

40

50

60

70

80%

Region- or country-speciﬁc rules in place
Anti-collusion rules in place
Anti-bribery rules in place70

Preventing Corruption

compared to 2021, in both the overall

aimed at improving the effectiveness ofdevelopment of internal rules on anti-briberyinternal rules, including the development

and the development of region- and country-

and improvement of whistleblower systems,

specific internal rules. However, when limited

education and training for group employees,

to the 169 companies that responded to theand establishment of disciplinary procedures

survey for two consecutive years, a slightfor violators. In September 2022, the US

increase in percentage points was seen for

Department of Justice published the "Monaco

all. As in the previous survey, we can see that

Memo", which emphasises the importance ofmany companies have internal rules on anti-

the greater pursuit of individual accountability

corruption in place.

and prompt provision of information on illegal
activities to authorities. While the impact

Measures to improve effectiveness (Q44)on the organisation of pursuing individualOnce internal rules are in place, the next

accountability needs to be carefully assessed,

step is putting a system in place for theirmaintenance of a high level of integrity

operation. On this point, we saw progressby management will lead to a culture of

in developing an organisational structurecompliance permeating the organisation.

Q44 What measures is your company taking to improve the effectiveness of rules? (Select all that apply)
We are not taking any specific measures (and we do not consider them necessary).

1.6

We are not taking any specific measures (although we consider them necessary).

5.6

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

55.8

GrowthWe conduct anti-corruption education and training for group employees in Japanand overseas.

69.1

GrowthWe have established disciplinary procedures for persons who violate rules.

70.7

GrowthWe conduct regular audits on the effectiveness of internal rules.

50.6

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

86.3

GrowthWe are working to improve our internal whistle-blower system.

65.5

Other

4.8
Responses (%)

56.7
55.8

Set up diﬀerent decision/approvalauthorities according to risk level
Conduct anti-corruption education and training
for group employees in Japan and overseas

2021
2022
69.1

Have established disciplinary proceduresfor persons who violate internal rules

70.7

76.7
79.4

52.8
50.6

Conduct regular audits on the eﬀectivenessof internal rules
Have a whistleblower system in place

86.3

Working to improve our whistleblower
system

95.6

64.4
65.5
0

20

71

40

60

80

100%

6

3.

6

3.

Preventing Corruption

In this regard, a comparison with 2021

numbers were not seen for the construction,

results shows a decrease of approximately

electricity/gas/transport, and real estate

8 percentage points for items related to theindustries, which are considered high-risk.

pursuit of individual accountability, such as

The good practices by Japanese companies

disciplinary procedures for persons who

presented at the end of this chapter may beviolate internal rules, and establishment

helpful when considering the practice of third-of whistleblower systems. As mentioned

party management.

above, responses require careful judgment,
and it is advisable that efforts are madeInformation disclosure on anti-corruption

alongside strides in responsibility borne by(Q47)

top management through clarification of

As in the previous survey, disclosure ofcommitments.

information on anti-corruption efforts appears
to be lagging behind overall. While certainly

System for third-party management (Q45)companies with a larger sales volume are

In view of the fact that in most past incidents

more advanced in information disclosure,of bribery, payments were made using

still approximately 60% of companies with athird parties as intermediaries, third-party

domestic scope of business and about 75%

management is of particular importance inof companies with sales of under 100 billion

systems for preventing bribery. Accordingly,

JPY are not disclosing information on anti-in the 2022 survey, a question on the status

corruption efforts. These companies canof third-party management was added. Firstly,

improve their reputation among stakeholders

53.7% of respondents indicated that theyby engaging in basic information disclosure.

have rules in place that third parties must

Of course, information disclosure that isobserve. However, response items on risk

limited to one-way communication willassessments for third parties, control throughnot lead to sustainable improvements incontractual clauses and implementation

compliance. Engaging in dialogue withof education and training, and monitoring

stakeholders based on accurate information

all scored below 20%. It is obvious that

disclosure, and using the feedback obtained

challenges remain in the practice of so-

to make further improvements, is essential.

called third-party due diligence. Particular

On this point, a slight increase was evident

attention should be paid to the fact that highcompared to 2021 in companies that

Q45 What initiatives does your company have in place to prevent bribery by third parties?
(Select all that apply)
We have no particular initiatives in place.

33.2

Contribution

We have rules in place that third parties must observe.

53.7

Contribution

We conduct bribery risk assessments (investigations and analyses of offering/
acceptance of bribes) on third parties and reflect these on our system of controls.

17.4

Contribution

We have controls in place for third parties through contractual clauses and offer
education and training, such as workshops and e-learning.

12.4

Contribution

We regularly monitor the status of compliance with rules by third parties.

18.9

Other

9.7
Responses (%)

72

Preventing Corruption

reported providing opportunities for dialogue"chemicals, pharmaceuticals, petroleum,with stakeholders on preventing corruption.

and other materials" and the "construction,

Creating opportunities for dialogue withelectricity/gas/transport and real estate"

stakeholders, including third parties, utilising

sectors reported having conducted

online tools and other methods, also enables

inspections at relevant sites in Japan andthe effective collection of risk information.

overseas. Meanwhile, 67.3% in machinery/Successfully linking information disclosure andequipment related sectors reported having

risk assessment can be expected to increase

clarified policy on preventing accounting

the effectiveness of the risk-based approach.

irregularities. On the other hand, companies
whose business scope is mainly domestic

Measures to prevent cover-ups of fraud (Q48)

and those with fewer employees and smaller

Proper book-keeping, record-keeping, andsales volumes tended to lag behind in puttingstrong control systems for this purpose aremeasures in place.

essential for the practice of anti-corruption
efforts. As in the previous survey, efforts are

Insufficient or inappropriate book-keeping

moving forward in high-risk industries. Of

may lead to cover-ups of fraudulent

all responding companies, over 70% in theactivities. In some instances, internal

Q47 What measures is your company taking to gain the understanding of stakeholders on anti-corruption
efforts? (Select all that apply)
We are not taking any measures (and we do not consider them necessary).

10.4

We are not taking any measures (although we consider them necessary).

24.7

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

27.0

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

42.9

Contribution

We create opportunities for dialogue with stakeholders on preventing corruption.

15.8

Other

11.6
Responses (%)

Q48 What measures does your company have in place to prevent cover-ups of fraud involving corrupt
practices (e.g. falsifying data, accounting irregularities)? (Select all that apply)
We have no specific measures in place.

8.9

Foundational

We have clarified policies on preventing data falsification.

45.9

GrowthWe are enhancing security to prevent data falsification.

54.8

Foundational

We have clarified policies on preventing accounting irregularities.

56.8

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

45.9

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

58.3

Other

8.9
Responses (%)

73

6

3.

6

3.

Preventing Corruption

controls can be rendered ineffective as anti-

seen in the thoroughness of record-keeping

corruption check systems do not function

should be noted in this context.

making it difficult to detect risks. In related
responses, a slight decrease was observed

In the background of fraud cover-ups, there

in companies engaging in thorough record-

is often excessive speculation by employees

keeping compared to 2021 results. Althoughregarding the company and their superiors.

administrative corruption is allegedly declining

Therefore, simply declaring a commitment

in some countries, such as China, this doesby top management and setting up a system

not imply a decreased risk of political andunsuited to the actual situation may send

structural corruption. Likewise, administrative

the wrong message to employees on thecorruption is still prevalent in many emerging

frontline. In some cases, this may in factand developing countries, especially inundermine the functioning of a company'sAsia. Companies must continue to conduct

controls on preventing corruption.

thorough record-keeping and strengtheninternal controls.

The results showed a decrease in theclarification of top commitments. Considering

Overall evaluation

the existence of the gap mentioned above,

While the overall trend showed progressthese results may be a more accurate

on top commitments and the development

reflection of the actual situation. In this sense,of internal rules, issues remain in the

results should not necessarily be assessed as

implementation of risk assessments andimplying a fallback in commitment.

specific measures based on the assessment
results. This resulting gap is a carryover from

Nevertheless, commitments expressed by

the previous survey as well. Compared withmanagement are critically important in

the previous survey, decreases were seen in

addressing corruption. The essence of suchclear commitments from top management andefforts lies in management's awareness of its

thorough recording-keeping. For other items,

own social responsibility and communicationcompanies have generally made progressof this awareness to employees andin their efforts. In addition, companies thatstakeholders in an easy-to-understandresponded to the questionnaire survey formanner. The trusting relationship that is

the first time in 2022 tended to lag behindcreated then fosters a culture of outstanding

in their efforts compared to companies thatcompliance within the corporate entity,

responded consecutively for both years.

including both the company itself and third
parties.

Messages for the Future

In some emerging and developing countries,

In global business, companies sometimes

corrupt practices are commonplace,fall into the "institutional void" between themaking them difficult to eliminate overnight.

norms of the international community and theCompanies are therefore expected tobusiness practices of the country of operation.

cooperate with each other and make gradual

In some cases, accurate information on local

steps forward. The continued leadership

operations cannot be communicated to theof GCNJ is also expected to increasingly

company's headquarters for fear of violating

facilitate collective actions among companies

the rules. This may result in the concealment

on anti-corruption.

of fraudulent activities. The slight setbacks

74

Preventing Corruption

Case study spotlight on third-party management
When it comes to third-party management, Marubeni Corporation practices an excellent risk-based
approach based on risk assessment, education/training, and control systems/monitoring. Firstly,
for risk assessment, Marubeni carries out anti-bribery due diligence for business partners (including
agents, consultants, and subcontractors) and implements red flag checks and other strict measuresaccording to the magnitude of risk. The company also conducts questionnaire surveys, surveys byexternal research companies, and interviews. For education and training, Marubeni provides e-learningand other training programmes at the request of business partners, requiring them to submit a written
pledge stating that they understand and will comply with the content of the training material. They
are also required to submit a questionnaire following trainings to confirm their understanding of
the content. Furthermore, for control systems and monitoring, Marubeni has established rules withwhich its business partners must comply, and the results of bribery risk assessments are reflected oncontrol systems. Specifically, supervision is strengthened by stipulating clauses on legal compliance,
representations and warranties, and audit acceptance in contracts with business partners. The
company also regularly monitors compliance and confirms any contact with public officials if therisk of bribery is deemed relatively high during the execution of a project. Through these measures,
Marubeni can ascertain the actual status of business partners and detect changes in risk in a timely
manner, applying this information to the management of business partners in the future.  
The following examples are also excellent initiatives to enhance the effectiveness of the risk-based
approach. Dai Nippon Printing Co., Ltd. has established CSR procurement guidelines. It conducts
regular surveys to assess the status of implementation of the guidelines by third parties and holds
individual consultations with third parties as necessary to identify issues and improvement measures.
Within its "Speak Up System", Sumitomo Corporation clearly states its corporate rules. Employees are
required to make an "Immediate Report" when they become aware of a problem or potential problem
involving bribery, corruption, or other violations of laws and regulations or misconduct. They must
report to the management level and mobilise all relevant departments to promptly take the mostappropriate actions and countermeasures. (An internal "Speak Up System" for reporting has also been
established in cases where it is difficult for employees to make "Immediate Report" along management
lines for any reason.) These initiatives are considered highly effective for risk assessment, which is themost basic element of the risk-based approach. Survey results also revealed many other companies
implementing exceptional risk-based approaches, including Nippon Paper Industries Co., Ltd., NEC
Corporation, Hitachi, Ltd., NGK INSULATERS, LTD., ONO PHARMACEUTICAL CO., LTD., SECOM CO.,LTD., and BROTHER INDUSTRIES, LTD.

75

6

3.

7

3.

Common Challenges
for the Five Goals

Going beyond policies and commitments
to signing initiatives is key to further
progress comparison of governance on the five goals using common response options
A
showed that more than 80% of participants reported having "clarified policies"
for all goals. However, disparities were observed in progress on other response
options. A high level of progress was noted particularly on human rights andefforts to achieve net zero, including statements of commitment.
 new question was added on the signatory status of companies for threeA
initiatives promoted by the UN Global Compact/GCNJ. The rate of participation
in initiatives was roughly proportional to the scale of number of employees.
Among the three initiatives, the signature rate for SBTi was high, particularly inthe manufacturing sector overall and the "construction, electricity/gas/transport,
and real estate" sectors.
 he differences in signatory status for initiatives could have been influenced byT
the characteristics of respective industries and level of necessity of participating
in initiatives (societal demand for GHG emissions reduction), the promotion of
initiatives within companies based on signature by top management, and public
relations advantages, such as improved ESG ratings.
entire value chain.

Governance for the five goals• We engage in stakeholder dialogue andThis year's fact-finding survey on the SDGs

seek advice from experts when formulating/took on the challenge of measuring progress

revising our policies.

on governance for the five goals. To do so,• We link our policies, commitments, plans,

the following common response options

and performance and disclose information

were created for Q13 (gender equality), Q23

in list form.

(human rights), Q30 (sustainable consumption
and production: SCP), Q35 (net zero), andLooking at averages for the five options,

Q41 (anti-corruption).

nearly 80% of respondents reported having"clarified specific policies", and 60% answered• We have clarified specific policies.

having "expressed commitment". However,• Top management has expressed

less than half of business participants

commitment.

could check boxes for the other three• Our policies and commitments cover the

options, implying that they are not yet fully76

Common Challenges for the Five Goals

implementing them.

question on net zero had a low percentage of"We engage in stakeholder dialogue and seek

Now let us look in more detail at theadvice from experts when formulating/revisingprogress on each goal. The orange-shaded

our policies" responses. On the other hand,boxes in the table below show values forresponses to the gender equality question

response options that scored 10% or more

were below average for three response

above average. Meanwhile, blue-shaded

options, and the question on anti-corruption

values indicate items that were 10% or more

had four items scoring below the average.

below average. Although human rights andSpecifically, gender equality scored more

net zero show several above-average scoresthan 10% below average on "Our policies andcompared to the other goals, the question oncommitments cover the entire value chain",human rights scored a low percentage for thewhile anti-corruption scored more than 10%"We link our policies, commitments, plans,

below average on "We link our policies,

and performance and disclose informationcommitments, plans, and performance andin list form" response option. Meanwhile, thedisclose information in list form".

Governance progress on five goals (average %)We link our policies, commitments, plans, andperformance and disclose information in list form.

33.1

We engage in stakeholder dialogue and seek advice
from experts when formulating/revising our policies.

31.3

Our policies and commitments cover the entire
value chain.

42.6
60.7

Top management has expressed commitment.

77.8

We have clariﬁed speciﬁc policies.
0

10

20

30

40

Q41
Anticorruption

Average

GenderEquality

Q35

80%

Net zero

Q30

70

Sustainable
Consumption
and Production

Q23

60

Human Rights

Q13

50

We have clarified specific policies.

81.1(96.8)

81.5

72.2

72.2
(89.7)

82.2

77.8

Top management has expressedcommitment.

57.5(87.1)

68.3

53.3

68.0
(91.0)

56.4

60.7

Our policies and commitments cover theentire value chain.

25.1(38.7)

60.6

45.2

42.5
(69.2)

39.8

42.6

We engage in stakeholder dialogue and seek advice
from experts when formulating/revising our policies.

28.2(54.8)

43.6

26.6

33.6
(51.3)

24.7

31.3

We link our policies, commitments, plans, andperformance and disclose information in list form.

42.5(71.0)

25.9

32.8

48.3
(70.5)

15.8

33.1(Responses %)*Figures in parentheses ( ) indicate companies that have already signed initiatives (WEPs: n=31, SBTi:n=78). The Tokyo Principles were not included as the number of signatory companies is only 2.

77

7

3.

7

3.

Common Challenges for the Five Goals

Ideally, these figures will improve year bycompanies having less awareness ofyear, reaching 100% by 2030. At the same

initiatives. Moreover, a certain number oftime, we must again recognise how importantparticipants selected "Other" and gave

it is for companies to respond to questions

responses not listed as options. These

based on a certain degree of common

included: "We have not yet considered

understanding of the level and scope ofsigning the initiative" and "After consideration,

efforts—for all response options, including the

we decided not to sign the initiative".

above five.
The status regarding the WEPs is summarised
Evidence of this issue can be seen in theas follows.

current survey results. For instance, in thequestion on commitments to gender equality,

Of all respondents, 12.0% had already signed

the following two response options were

the WEPs, 1.9% were preparing to sign, andgiven: "Top management has expressed

45.9% were considering signing. Only 9.7%

commitment to implementing policies andwere unaware of the initiative, implying thatmeasures" (57.5%) and "Top management

assiduously appealing to the significancehas expressed commitment to gender qualityof the WEPs will be key to increasing the(using the term 'gender equality')" (18.1%).

number of signatory companies.

A significant gap is evident in the results.
In order to authentically promote "gender

For companies that had signed the WEPs,

equality", which is SDG 5 in its essence,

the response rate for "Top management has

improvement is needed in the response

expressed commitment to gender quality

rate on commitments using the term

(using the term 'gender equality')" was more"gender equality".  (See Section 3.2 for morethan double the overall average. Moreover,

information)these companies' efforts to engage in dialogue
and promote transparency were evident in

Signatory status for the three initiatives

response rates for "We engage in stakeholder

promoted by the UN Global Compact/GCNJ

dialogue and seek advice from experts when

(Q12)

formulating/revising our policies" and "We

Another newly established question asked

link our policies, commitments, plans, andabout signatory status on the Women's

performance and disclose information in list

Empowerment Principles (WEPs), the Scienceform", which were also significantly higher

Based Targets Initiative (SBTi), and the Tokyo

than the overall average.

Principles, all of which are promoted by the
UN Global Compact/GCNJ.

Going forward, GCNJ participants who havesigned the WEPs are expected to engage

Looking at the signatory status of companies

in information exchange and collaborativefor each initiative by number of employees

initiatives among themselves to drive theand by industry, we see a common feature

overall trend, including in areas where they

for all three. Namely, many large companies

still do not differ significantly from the overall

in terms of employee numbers had signed

average, namely "percentage of women board

on, while only a few companies with under

members" and "closing the gender pay gap".  

250 employees and non-listed companies
had done so. Similar results were observed

Of the three initiatives, SBTi had the highest

for other survey questions, with smaller

number of signatory companies among survey

78

Common Challenges for the Five Goals

respondents, with the figure exceeding 40%

rates compared to averages were seen forwhen adding in companies preparing to sign.

signatory companies on activities prioritised

Unlike the other initiatives, a clear difference

to achieve net zero GHG emissions. Thesecan be seen by industry, with positive

include not only "increased procurement ofresponses from nearly 40% of respondents

electricity from renewable energy sourcesin the "manufacturing" and the "construction,(excluding renewable energy certificates)", but

electricity/gas/transport and real estate"also "introduction of internal carbon pricing",

sectors. Meanwhile, the proportion of"investment in research and development oncompanies in other industries that responded

low-carbon and decarbonisation technologies

positively on participating in this initiative wasin our own and other companies", andsmall, including companies preparing to sign.

"engaging the supply chain".

The signatory status of business participantsin the "information/communication and

Results on the Tokyo Principles show that

finance" industries was particularly low, at

1.2% have signed, 0.4% are preparing toless than 10%.

sign, and 39.0% are considering signing,
while 20.8% of respondents reported

As for the status of initiatives by signatory

being "unaware of the initiative". These

companies, the percentage of companies

low figures may be due to the fact that thethat have "clarified policy", "expressed

Tokyo Principles are a domestically-oriented

commitment", and "linked policies,

initiative. Its visibility and the public relationscommitments, plans, and performance andbenefits of signing are less compared to thedisclosed information in list form" greatly

other two initiatives.

exceeded the overall average. Moreover, thepercentage of signatory companies that "aim

The largest percentage of participants thatto be carbon positive in addition to taking

indicated they "do not intend to sign thepart in SBTi" was 30%, compared to 10%

initiative" stood at 40% for the "electrical/

overall.

precision/machinery and automotive/
transport equipment" industries. Furthermore,

In response to the question, "Please select, by

44% of companies with 10 to 249 employees

scope, the greenhouse gas (GHG) emissions

and 31% of companies with sales of less thanthat you identify at your company", 100%

100 billion JPY reported being unaware ofof signatory companies reported identifying

the Tokyo Principles.

Scope 1 and 2 in line with SBTi requirements,
and 95% of them also identify Scope 3.

Groups unaware of the initiative were morethan 10% less likely to have "clarified 'anti-

Likewise, significantly higher response

WEPs

12.0

SBTi

1.9

bribery policies' and 'anti-collusion policies'''

45.9

30.1

22.8

13.1

33.6

9.7
12.4

7.7
6.2

4.6

1.2
Tokyo Principles

39.0
0

0.4

20

29.0
40

20.8
60

80

9.7
100%

We have already signed the initiative.

We are preparing to sign the initiative.

We are considering signing the initiative.

We do not intend to sign the initiative.

We are unaware of the initiative.

Other

79

7

3.

7

3.

Common Challenges for the Five Goals

than respondents overall. Furthermore, delays

ratings.

were also observed in the establishment ofinternal rules, whistleblower systems, andThe obligations and burdens companies

information disclosure on anti-corruption

face after signing also differ from initiative

measures.

to initiative. For SBTi, signatory companies
are required to develop a vision and target

The differences in signatory status for thefor long-term GHG reduction and report on

three initiatives could have been influenced

their progress. Meanwhile, for the WEPs

by the characteristics of respective industries

and the Tokyo Principles, progress reports

and the level of necessity of participating

are recommended and expected, but

in initiatives (societal demand for GHG

not mandatory. Companies are expected

emissions reduction), promotion of theto consider signing and exploiting these

initiatives within companies based on

initiatives, while understanding theirsignature by top management, and publiccharacteristics, which differ from one another.

relations advantages, such as improved ESG

80

8

3.

SDGs Initiatives
by Non-BusinessParticipants

Background on a separate survey
for non-businesses

Significance and Rationale

To achieve the SDGs by the target year

For non-business participants, questions wereof 2030, it is absolutely essential for

designed to address the two points describedcompanies, national governments, NGOs,

below, along with their respective aims.

local governments, academia, and others
to accelerate collaborative efforts and1. Organisation's SDGs of focus

bring about social transformation based<Aim of question>

on shared goals. GCNJ has various non-The first point was to look at differencesbusiness participants, including NGOs, local

in the priority goals of non-businesses andgovernments, and academic institutions.

companies, and another was to compare

By exploring a challenge together

looking at non-businesses alone and the lastand exchanging opinions from diverse

survey's results to find the differences.

perspectives, we can gain insights that differ(1) Which goals of the SDGs do non-businessfrom our own and create opportunities fororganisations and academic institutions, etc.,

cooperation and partnerships to achieve our

focus their activities on? Are they different

goal.

from businesses?
(2) Are any changes evident when comparing

Survey content was identical for boththe survey results to last year?

business and non-business participants for
the SDGs fact-finding surveys conducted

2. Overview of main initiatives organisations

up to 2021. However, as the organisational

are working on in partnership/collaboration

structures and operational approaches ofwith companies, local governments,

non-businesses differ from companies, theacademia, and non-profit organisations tosurvey focusing on progress on the fiveachieve the above goals

goals was not appropriate in some cases.

<Aim of question>

Therefore, from 2022, the content of the

In the course of their economic activities,

survey for GCNJ non-business participants

companies are exposed to various

was altered to differ from the content of theenvironmental, social, and governance risks,survey for companies. The similar approach of

making ESG initiatives imperative to gain a

the UN Global Compact, which has differing

good reputation and trust in the market andreporting requirements for businesses andamong other stakeholders. Non-businessnon-business organisations in terms ofparticipants have different objectives as they

content and frequency, served as a reference.

aim to achieve the SDGs. By sharing within
GCNJ the specific objectives and content of

81

8

3.

SDGs Initiatives by Non-Business Participants

the activities of non-business participants,

rate. A breakdown of the non-businessmutual understanding can be enhanced.

participants who responded shows that 18
were "academic institutions, associations,

As of the end of September 2022, there wereand corporate bodies" and two were

43 non-business participants in GCNJ, making"local governments". Among the "academic

them an 8% minority within total participants.

institutions, associations, and corporate

As a precondition for encouraging thebodies" classification, eight were fromemergence of collective action among

academia, including universities and school

businesses and non-businesses within GCNJ,

corporations, eight were corporate bodies,

we considered it important for participants as

and one was an association.

a whole to share specific details on the kindsof collaboration that are currently taking

Goal 17 the most common priority goal, at 65%

place.

As the total number of responses was small
at only 20, these results serve only as areference.  Results are shown in the graphResults and Discussion

below.

Response rate for non-businesses
This response rate for non-businesses

Notably, SDG 17 scored the highest at 65%,

was low at 46.5%, compared to a rate ofsimilar to last year. In many cases, even

54.4% for  participants overall in 2022.

participants who did not select this goal

Although the volume and content of thementioned examples of partnerships andsurvey were significantly changed, this did

collaboration in responses to subsequent

not lead to improvement in the response

questions, suggesting that non-business

SDG 1

14.3

SDG 2

14.3

35.0
35.0
35.7

SDG 3

55.0
57.1
55.0

SDG 4
50.0

SDG 5
28.6

SDG 6

40.0

SDG 7

35.7

SDG 8

35.7

50.0
55.0

SDG 9

42.9

SDG 10

42.9

35.0
35.7

SDG 11

55.0

40.0
42.9

SDG 12

55.0

21.4

SDG 1350.0

7.1

SDG 1455.0

45.0

SDG 15

28.6

SDG 1628.6
30.0

Non-businesses 2021

35.0

64.3
65.0

SDG 17
We have not selected any
speciﬁc goals to focus on

14.3

0

10

Non-businesses 2022
(Reference)
Companies 2022

20.0

20

30

40

82

50

60

70

80

90

100%

SDGs Initiatives by Non-Business Participants

participants in general place more emphasis

points on the partnerships and collaboration

on partnership, the focus of SDG 17.

of the 17 participants who responded aredescribed here.

Eight other goals including SDG 3 received
responses from 50% or more of respondents.

Examples of partnerships and collaboration by

While these scores are higher than last year,

non-business participants were wide-ranging,

all goals scored in the 30-50% range with noand in some cases, further information on

significant differences between them. Non-

which specific goals and targets participantsbusinesses, whether academic institutions,were working to contribute to had to becorporate bodies, associations, or local

gathered. One common point that stood out

governments, differ in terms of philosophy,

was the use of keywords related to SDG 12

course of action, and scale, and they do notin many of the examples.

have the same opportunities as companies tohave their systems and initiatives evaluatedPhrases used included: "Responsible

by capital markets and society in ESG areas.

consumption and production", "Reduced

Thus, it is not surprising that high scores wereconsumption of plastic bottles on campus",

not seen for specific goals (such as SDG 13"Reduce final disposal amount of industrial

on climate change and SDG 8 on decent

waste, increase recycling rate, reduce final

work and human rights). Moreover, 20% of

disposal rate of waste plastic", "Marine

non-business respondents stated that theyplastic pollution", "Waste volume in schools",

had not selected any specific goals of focus.

"Change in plastic bottle emissions", "UseThis response was significantly higher thanrecycled fibres from collected plastic bottles

the 5.4% for business participants. For GCNJ

for T-shirts", and "Contribute to solving the

as a whole to promote the achievement

global problem of microplastics".

of the SDGs, it is important for each nonbusiness participant to set priority goals with

In particular, multiple participants mentioned

the intent to make a contribution, and to"plastic" and "plastic bottles" as keywords. We

work systematically on them.

feel that this area could serve as a catalyst forpartnerships and collaboration as a common

Examples of partnerships andcollaboration

challenge going forward.

A total of 17 responses were received fromThe challenge for the future is forparticipants on the survey item: "Pleaseorganisations like GCNJ to further deepen

share an overview of the main initiatives yourtheirorganisation is working on in partnership/function as a hub connecting companies

collaboration with companies, local

and non-businesses. We will continue togovernments, academia, and non-profit

collaborate with others to consider how

organisations to achieve the above goals".

companies and non-businesses can work

The details of these responses are compiled

together and what value can be created toin a supplementary volume. Only the mainachieve the SDGs.

83

understanding of non-businesses, to

8

3.

4

Conclusion

The SDGs are at a criticaljuncture

Momentum is building

In Japan, the SDGs have become so

The year 2023 marks the halfway point inwidespread in the last few years that rarely

the implementation of the SDGs, and thea day goes by without being reminded of

UN SDG Summit 2023 will be held on 19-20

them, whether when walking down the

September. In a briefing on 13 February, UN

street, reading the newspaper, or watching

Secretary-General Guterres called on states

television. This can arguably be attributed

to participate in the Summit with a "clear

to the success of public and private sector

commitment" to rescue the SDGs. He alsomeasures to spread the word about thecalled for an ambitious political declaration

SDGs. Meanwhile, it has been pointed outthat recognises challenges, prioritises thethat the SDGs were not on track to becore transitions needed to achieve the SDGs,

achieved by the 2030 deadline, even before

and mobilises investment and action.

the COVID-19 pandemic and the Russian
invasion of Ukraine. As described in Section 2

The Global Sustainable Development Reportof this volume on "International and National(GSDR) will be released to coincide with theTrends on the SDGs", the situation has

summit. With four years having passed since

become highly critical. For instance, in theits last issue, the GSDR will be drafted by an

Asia-Pacific region, including Japan, not only

independent group of scientists appointed byare countries not on track to achieve any

the Secretary-General with input from expertsof the SDG goals, but the gap is widening

from around the world in a wide range ofwith each passing year (projected years foracademic fields (e.g. natural scientists, social

achieving the SDGs were 2052 as of 2017,

scientists, policymakers, and practitioners). It

2057 as of 2019, and 2065 as of 2021).

will include evidence to support policymakers
in accelerating progress on the SDGs.

The pandemic and war exposed thevulnerabilities of our societies and business

In Japan, the second revision of the SDGs

models, and a looming sense of crisis and

Implementation Guiding Principles, Japan'srisk has been increasingly shared in everyday

national strategy on the SDGs, is scheduled

life. Taking this as an opportunity, is a green

for the end of the year. The Partnershipor digital transformation – a better recovery

Meeting on the SDGs Implementation

aimed at sustainability – even possible?

Guiding Principles was held twice in July andOctober 2022, led by the members of the84Conclusion

SDGs Promotion Roundtable. Based on thestakeholder engagement); decent work

opinions of a wide range of stakeholders,

for all workers (Q27) (equal pay for equal

recommendations for revision of thework, anti-harassment policy)

SDGs Implementation Guiding Principles,・Sustainable consumption and production

including the Basic Act on the SDGs and the(SCP): policies and commitments on SCP

establishment of national targets in Japan,(Q30) (clarification of specific policies);

are being compiled. As momentum builds

status of circular economy initiatives

on the SDGs, companies are called upon toby business model (Q31) (sustainable

keep up with the trend and make extensive

procurement of raw materials, switch to

improvements to their business activities andrenewable resources, extension of productorganisational management to contribute tovalue, development of sharing services);achieving the goals.

collaboration with stakeholders (Q32)
・Climate change: identifying GHG emissions

GCNJ participants are making
progressby scope (Q36) (increase for all scopes1-3); activities to achieve net zero (Q38)

Sections 3.1 to 3.7 reviewed the level of(supply chain engagement, Corporate PPAs);

awareness and penetration of the SDGs in

climate change risks and opportunities

GCNJ business participants and their efforts(Q40) (identified and integrated intoon the five goals, including comparisons withinternal strategies and plans, including

the previous 2021 survey. Progress towards

workplaces)the 2030 target year was confirmed in various※ Progress has also been made on net zero

aspects. Some of the initiatives on which

policies and commitments (companies

progress was reported are as follows.

that aim to be carbon positive in addition
to participating in SBTi rose from 3.8 to・Awareness and penetration: priority goals

10.0%). Standardising questions on this(Q8) (especially SDGs 4, 10, 15, and 16);

topic and changes in response options

challenges in addressing the SDGs (Q11)(from single to multiple) had previously(level of recognition and understanding inmade comparisons impossible.

society and within companies, appropriate

・Preventing corruption: establishment of

information disclosure)internal rules on anti-corruption (Q43) (rules

・Gender equality: percentage of women

on anti-bribery and anti-collusion, region- or

board members (Q15) (formulation

country-specific rules).

of action plans, achieving 30% female

It's still not enough – further
acceleration of efforts is required

board members); parental leave for men(Q18); gender-responsive supply chain
management (Q20); mechanisms for

Notwithstanding the above, the progresscollection of sex-disaggregated data (Q22)

made in more than a few of these areas(% of companies with no initiatives/no

was only marginal. Accordingly, the expert

mechanisms in place)authors who wrote sections on the status ofefforts on the five goals were unanimous in・Decent work and human rights: policies
and commitments on human rights (Q23)

their assessment that the level of corporate(reference to international human rights

action required to achieve the SDGs remains

standards, including issues other thaninsufficient. The authors made a wide range

labour issues); human rights due diligenceof points on ways to accelerate efforts. These(Q24) (information disclosure on initiatives,

include raising awareness on the terminology

85

4

4

Conclusion(e.g. using the term "gender equality"); better

Therefore, for the first time, this survey asked

data and record-keeping; closing the gap

about the status of participation in initiatives

between policies, commitments, or internal

promoted by the UN Global Compact/GCNJ.

regulations and actual actions; improved

As discussed in Section 3.7 on "Common

information management, disclosure, andChallenges for the Five Goals", significant

communication; and lobbying the government.   

differences were seen between signatorycompanies of the WEPs and SBTi andIn particular, the common issue of addressing

responding companies overall. For example,

the five goals derived from last year's survey

in the area of gender-responsive supply chain

results – regard for stakeholders in the value

management (Q20), respondents reported

chain/supply chain – continues to requirethat they "collect relevant information on

significant improvement, which includes

gender and women's human rights fromgender-responsive supply chain management,

suppliers and clients in Japan and overseas"

respect for the human rights of consumers(overall: 18.9%, WEPs signatories: 48.4%),

and local communities, and inclusion ofand have "integrated and mainstreamed a

local communities in the identification ofgender equality perspective into human rights

climate change risks and opportunities.

due diligence and identified gender-driven

Major improvements are still called for on

risks" (overall: 26.3%, WEPs signatories:

this point. In the sense of bringing about a

45.2%). A similar gap was evident in activities

transformation, initiatives that work only onthat companies prioritise to achieve net zero

the easily-accessible parts of the value chain/

GHG emissions: "increased procurement of

supply chain, or those directly related to aelectricity from renewable energy sources

company's own management, are insufficient.

(excluding renewable energy certificates)"

It is necessary for companies to look at the(overall: 77.2%, SBTi signatories: 92.0%),

bigger picture and consider why efforts to"introduction of internal carbon pricing"

improve society as a whole are necessary to(overall: 32.8%, SBTi signatories: 52.6%),

improve the sustainability of the company"investment in research and development on

and the lives and well-being of all people,

low-carbon and decarbonisation technologies

including those in the company themselves.

in our own and other companies" (overall:
39.0%, SBTi signatories: 59.0%), andTaking advantage of existing
initiatives

engaging the supply chain (overall: 41.7%,
SBTi signatories: 67.9%). Scores on signatory

Participation in national and international

companies' efforts were well above average

initiatives could serve as one concrete

overall across the survey questions on eachmethod for accelerating efforts. It goes

goal.

without saying that the UN Global Compact isthe world's largest sustainability initiative. The

Initiatives can be utilised not only to boost

results of this fact-finding survey related toefforts at the level of one organisation, but also

GCNJ participants' processes for respecting

to provide opportunities for mutual learning

human rights show that their efforts are

and collaboration with other companies andcurrently more advanced than companies

organisations that share the same objectives.

listed on the 1st and 2nd Sections of the

Furthermore, they can be utilised toTokyo Stock Exchange, based on the results

collectively advocate for sought-after policies.

of a survey by the Japanese Government.

While some initiatives have qualifications forparticipation, support from government or86

Conclusion

financial institutions is provided for more thandone society is not moving in a sustainablea few.

direction.

Various initiatives have been launched

In discussions at the above-mentioned

and activities are underway both in Japan

Partnership Meeting on the SDGs

and internationally. With reference to the

Implementation Guiding Principles, twoinitiatives shown on the GCNJ website

perspectives were raised in response to the(https://www.ungcjn.org/global/grasp.html),

alleged inadequate efforts of companies:

companies and organisations are increasingly

either they are not making enough effort or

expected to proactively participate

they are moving in the wrong direction. Thisin collaborative activities with otherreport can trigger realisations on both points.

organisations that share the same goal of

In addition, the supplementary volume to thisrealising a sustainable society. In this sense,

report presents examples of partnerships

the increase in "participation in initiatives

and collaboration with companies by non-in Japan and overseas" responses (up frombusiness organisations. These kinds of

52.4% in the previous survey to 60.6%) to thecollaborative efforts can also be an effective

question on activities that are prioritised to

way for companies to broaden their horizonsachieve net zero GHG emissions is a positiveand enhance the effectiveness of their efforts.

trend.

GCNJ participants and other companies are
expected take the findings and discussions
in this report back to their companies, talk

In conclusion

directly with management, and reconfirm

The SDGs are addressed by all kinds ofwhether there is anything else they canstakeholders, not only companies, but also

do. It is our hope that this report, together

governments, civil society, consumers, andwith the supplementary volume, will help

young people. However, external factors

companies and organisations in their efforts

involving our lives and business activities

to implement the SDGs in the second half ofare worsening. As a result, even when sometheir implementation period.

progress is made, when all is said and

87

4

5

Relevant Data on the
SDGs Survey

5.1  List of Respondents
5.2  Summary of Survey Results

88

1

5.

List of Respondents

Business (Companies)

JSR Corporation
KANEKA CORPORATION
Kao Corporation

Manufacturing

KOSÉ Corporation

MiningMandom Corporation

Japan Petroleum Exploration Co., Ltd.

Mitsubishi Chemical Group Corporation

Food

Mitsui Chemicals, Inc.

Asahi Group Holdings, Ltd.

NIITAKA Co., Ltd.

Ezaki Glico Co., Ltd.

Nippon Kayaku Co., Ltd.

FUJI OIL HOLDINGS INC.

Nippon Sanso Holdings Corporation

J-OIL MILLS , INC.

Sanyo Chemical Industries, Ltd.

Kikkoman Corporation

Saraya Co., Ltd.

Kirin Holdings Company, Limited

SEKISUI CHEMICAL CO., LTD.

MEGMILK SNOW BRAND Co.,Ltd.

Shin-Etsu Chemical Co., Ltd.

Meiji Holdings Co., Ltd.

Showa Denko K.K.

Morinaga & Co., Ltd.

T. HASEGAWA CO., LTD.

MORINAGA MILK INDUSTRY CO., LTD.

TAKASAGO INTERNATIONAL CORPORATION

Nichirei Corporation

TEIJIN LIMITED

San-Ei Gen F.F.I.,Inc

Tokuyama Corporation

Taiyo Kagaku Co., Ltd.

Tosoh Corporation

The Nisshin OilliO Group, Ltd.

UBE Corporation
Unicharm Corporation

TextilesZeon Corporation

GUNZE LIMITED

Pharmaceuticals

Pulp and paper
Asahi Printing Co., Ltd.

ASKA Pharmaceutical Holdings Co., Ltd.

Daio Paper Corporation

DAIICHI SANKYO COMPANY, LIMITED

Nippon Paper Industries Co., Ltd

Eisai Co., Ltd.

SAKURA PAXX Co.,Ltd

Nippon Shinyaku Co., Ltd.
ONO PHARMACEUTICAL CO., LTD.

Chemicals
Aica Kogyo Company, Limited

Otsuka Holdings Co., Ltd.

Daicel Corporation

SHIONOGI & CO., LTD.
Oil and coal

FANCL CORPORATION

Idemitsu Kosan Co.,Ltd.

FineToday Co., Ltd.
FUTAMURA CHEMICAL CO.,LTD.

89

1

5.

List of Respondents

Rubber

HORIBA, Ltd.

Kinjo Rubber Co., Ltd."

Japan Display Inc.

Nitta Corporation

KOKUSAI ELECTRIC CORPORATION

Sumitomo Riko Company Limited

KONICA MINOLTA, INC.

Sumitomo Rubber Industries, Ltd.

Mabuchi Motor Co., Ltd.

The Yokohama Rubber Co., Ltd.

MinebeaMitsumi Inc.

Glass and ceramics

NEC Corporation

NGK INSULATORS, LTD.

Oki Electric Industry Co., Ltd.

NGK SPARK PLUG CO., LTD.

OMRON Corporation

TOTO LTD.

Origin Co., Ltd.

Iron and steel

Panasonic Holdings Corporation

Kobe Steel, Ltd.

RICOH COMPANY,LTD.

Non-ferrous metals

ROHM Co., Ltd.

Fujikura Ltd.

SAKAGUCHI E.H VOC CORP.

Furukawa Electric Co., Ltd.

SEIKO EPSON CORPORATION

Mitsubishi Materials Corporation

Sharp Corporation

Nakanishi Metal Works Co., Ltd.

SHIBAURA ELECTRONICS CO., LTD.

Toyo Aluminium K.K.

SYSMEX CORPORATIONUACJ Corporation

TAIYO YUDEN CO.,LTD.

YKK AP Inc.

TAMURA CORPORATION

MachineryTokyo Electron Ltd.

Daifuku Co., Ltd.

TOSHIBA CORPORATIONDAIKIN INDUSTRIES, LTD.

YASKAWA Electric Corporation

EBARA CORPORATION

Yokogawa Electric Corporation

FREUND CORPORATION

Transport equipment

GLORY LTD.

ISUZU MOTORS LIMITED

Hitachi Zosen Corporation

KYOKUTO KAIHATSU KOGYO CO., LTD.

KYC Machine Industry Co., Ltd.

NOK Corporation

Mitsubishi Heavy Industries, Ltd.

Yamaha Motor Co., Ltd.

MIURA CO.,LTD.

Precision equipment

Nabtesco Corporation

Citizen Watch Co., Ltd.

NTN Corporation

FUJIFILM Holdings Corporation

OILES CORPORATIONNIKON CORPORATIONSATO HOLDINGS CORPORATIONOLYMPUS CORPORATIONTHK CO., LTD.

Seiko Group Corporation

Tsubakimoto Chain Co.

Other manufacturing

Electronics

COMANY INC．

ADVANTEST CORPORATION

Dai Nippon Printing Co., Ltd.

ANRITSU CORPORATIONELECOM CO., LTD.

Azbil Corporation

Envision AESC Group Ltd.

BROTHER INDUSTRIES, LTD.

ITOKI CORPORATIONEIZO Corporation

LINTEC Corporation

FUJI ELECTRIC CO., LTD.

Mizuno Corporation

FUJITSU LIMITED

Nissha Co., Ltd.

Hitachi, Ltd.

OKAMURA CORPORATION

90

List of Respondents

Pripress Center Co., Ltd.

Hankyu Hanshin Holdings, Inc.

Rubycon Corporation

Hitachi Transport System, Ltd.

Setouchi Steel Co., Ltd.

Japan Airlines Co., Ltd.

Sun Messe Co., Ltd.

Kawasaki Kisen Kaisha, Ltd.

Yamaha Corporation

Nippon Yusen Kabushiki Kaisha

YOKOZEKI OIL & FAT INDUSTRIES CO.,LTD.

SENKO Group Holdings Co.,Ltd.
TOKYU CORPORATION

Construction

YAMATO HOLDINGS CO., LTD.

ASAHI KOGYOSHA CO.,LTD.
Chiyoda Corporation

Warehousing and transport

INFRONEER Holdings Inc.

ACHIHA CO., LTD

Obayashi Corporation

Mitsubishi Logistics Corporation

SANKEN SETSUBI KOGYO CO., LTD.
SHIMIZU CORPORATION

Wholesale and retail

Shin Nippon Air Technologies Co.,Ltd

Adastria Co., Ltd.

SHINRYO CORPORATION

Aeon Co., Ltd.

Sumitomo Forestry Co., Ltd.

Archivision Holdings co.,ltd

Sumitomo Mitsui Construction Co., Ltd.

ASKUL Corporation

Takasago Thermal Engineering Co., Ltd.

FamilyMart Co., Ltd.

TECHNO RYOWA LTD.

Fujisho Co.,Ltd.

TESS Holdings Co., Ltd.

HAMAYA Corporation

TODA CORPORATION

ITOCHU Corporation

TOKYU CONSTRUCTION CO., LTD.

Iwase Cosfa Co., Ltd.

Toyo Engineering Corporation

J.Front Retailing Co., Ltd.
JFE SHOJI Corporation

Electricity and gas

Kuroda Group Co., Ltd.

Electric Power Development Co.,Ltd.

Lawson, Inc.

Toho Gas Co., Ltd.

Marubeni Corporation

Tohoku Electric Power Co., Inc.

MARUI GROUP CO., LTD.
OHTORI CORPORATION

Information and communications

Sangetsu Corporation

BIPROGY Inc.

Seven & i Holdings Co., Ltd.

Fuji Media Holdings, Inc.

Starzen Co., Ltd.

ITOCHU Techno-Solutions Corporation (CTC)

Sumitomo Corporation

KidsStar Inc.

UTSUMI CO.,LTD.

Kokusai Kogyo Co., Ltd.
Mitsubishi Research Institute, Inc.

Finance and insurance

QUICK Corp.

Daiwa House Asset Management Co., Ltd.

software agency system co., ltd.

Fuyo General Lease Co., Ltd.

SYSTEM RESEARCH CO.,LTD.

Ichigo Asset Management, Ltd.

T-Gaia Corporation

JAPAN POST INSURANCE Co., Ltd.

The Asahi Shimbun Company

Mitsubishi UFJ Financial Group, Inc.
Mizuho Financial Group, Inc.

Land, sea and air transport

MS&AD Insurance Group Holdings, Inc.

ANA HOLDINGS INC.

Nippon Life Insurance Company

91

1

5.

1

5.

List of Respondents

Nomura Holdings, Inc.

Cre-en Inc.

ORIX Corporation

Deloitte Tohmatsu LLC

Resona Holdings, Inc.

Dentsu Group Inc.

RICOH LEASING COMPANY, LTD.

EDGE INTERNATIONAL, INC.

SBI Shinsei Bank, Limited

Fuluhashi EPO Corporation

Sompo Holdings, Inc.

Hakuhodo DY Holdings Inc.

Sumitomo Mitsui Financial Group,Inc.

Koyou Rentia Co., Ltd.

Sumitomo Mitsui Trust Holdings, Inc.

Mitoko Kawachi Corporation

T&D Holdings, Inc.

Nippon Koei Co., Ltd.

The Norinchukin BankNISSEI EBLO INC.

Tokyo Century CorporationOXYGY Ltd.
POSITIVE LTD.

Real estate

SAKURUG co.,ltd.

KJR Management

SDG Partners, Inc.

Mitsui Fudosan Co., Ltd.

SECOM CO., LTD.

Nomura Real Estate Holdings, Inc.

TANABE CONSULTING CO., LTD.

Sumitomo Realty & Development Co., Ltd.

TechnoPro Holdings, Inc.

Tokyo Tatemono Co., Ltd.

Tenpo Ryutsu Net, Inc．

Tokyu Fudosan Holdings Corporation

Tesseland Co.,Ltd.
TOBU TOP TOURS CO.,LTD.

Service

Woonerf Inc.

AGEHA Inc.

Yachiyo Engineering Co., Ltd.

AGS Consulting Co., Ltd.
AMITA HOLDINGS CO.,LTD.

Other

Business Consultants, Inc. (BCon)XELS JAPANCentral Nippon Expressway Company Limited

92

List of Respondents

Other (non-business)
Academic institute, association,
incorporated association/agency
Community Road Empowerment (CORE)
Doshisha University
Institute for Global Environmental Strategies
International Christian University
International Development Center of Japan
IWAI MEDICAL FOUNDATION
Japan Civil Society Network on SDGs
JAPAN ELECTRICAL SAFETY & ENVIRONMENTTECHNOLOGY LABORATORIES.
JAPAN FEDERATION OF PRINTING INDUSTRIESJapan Football Association (JFA)
KOKUSAI GAKUIN EDUCATIONAL FOUNDATION
Kwansei Gakuin University
Osaka Yuhigaoka Gakuen
Seigakuin University & Schools
Sophia University
The Building Center of Japan (BCJ)
University of Tsukuba

Local government
Iki City
Kawasaki City

Service
Japan Food Research Laboratories

93

1

5.

2

5.

Summary of Survey
Results

Target: 513 GCNJ business and non-business participants (as of September 2022)
Responses: 279 (Response rate: 54%)
Survey period: 26 September to 14 November 2022

Respondents by industry

Number of responses/%

Fisheries and agriculture--

Transport equipment

4

1.4%

Food

1

0.4%

Precision equipment

5

1.8%

Construction

16

5.7%

Other manufacturing

15

5.4%

Mining14

5.0%Electricity and gas

3

1.1%

Textiles1

0.4%

Land, sea and air transport

9

3.2%

Pulp and paper

4

1.4%

Warehousing and transport

2

0.7%

Chemicals

28

10.0%

Information and communications

11

3.9%

Pharmaceuticals

7

2.5%

Wholesale and retail

21

7.5%

Oil and coal

1

0.4%

Finance and insurance

20

7.2%

Rubber5

1.8%

Real estate

6

2.2%

Glass and ceramics

3

1.1%

Service28

10.0%

Iron and steel

1

0.4%

Non-ferrous metals

7

2.5%

Academic institute, association,
incorporated association/agency

17

6.1%

Metals--Local government

2

0.7%

Machinery

15

5.4%

Other

1

0.4%

Electronics

32

11.5%

Businesses and non-businesses

279

Number of responses

Companies (businesses)

259

92.8%

Other (non-businesses)

20

7.2%

279

94

Summary of Survey ResultsGroupings utilised in this report
Food/other manufacturing
Chemicals/pharmaceuticals/petroleum, other materials (textiles, wood/wood products, paper/pulp,
ceramics/stoneware, iron and steel, non-ferrous metals)
Electrical/precision/machinery, automotive/transport equipment
Manufacturing total
Construction, electricity/gas/transport, real estate
Information/communication, finance
Wholesale/retail, service/other non-manufacturingNon-manufacturing total
Non-business: academic institutions/associations/corporate bodies, local governments, other

Basic information on business (company) respondents (259 participants)
Q1 Please provide the latest information (e.g. name)on your company. (Responses omitted)

Q5 Please select your company's market segment.
Number of responses/%

Q2 Please select the scope of your business.
Number of responses/%

Domestic (Japan)

66

25.5%

Global (International)

193

74.5%

27

10.4%

250 to 4,999

89

34.4%

5,000 to 49,999

116

44.8%

50,000 or more

27

10.4%

58

22.4%

Growth Market

1

0.4%

Standard Market

12

4.6%

Prime Market

187

72.2%

1

0.4%

Other

Q3 Please select the number of employees in yourcompany.
Number of responses/%

10 to 249

Non-listed

Q6 P lease tell us about yourself (the person
responding to this survey). (Responses omitted)

Q7 Which of the following best describes the locationof your head office/headquarters? (For businessand non-business participants)
Number of responses/%

Hokkaido or Tohoku

Q4 Please select the scale of sales of your company.
Number of responses/%

Less than 2.5 bil. JPY

17

6.6%

2.5 bil. JPY - less than 25 bil. JPY

23

8.9%

25 bil. JPY - less than 100 bil. JPY

36

13.9%

Over 100 bil. JPY

183

70.7%

95

3

1.1%

Metropolitan area (Tokyo,
Kanagawa, Saitama, Chiba)

187

67.0%

Kanto (Other than areas listed in“Metropolitan area” above), Koshinetsu

17

6.1%

Tokai

15

5.4%

Hokuriku

4

1.4%

Kinki

46

16.5%

Chugoku or Shikoku

3

1.1%

Kyushu or Okinawa

3

1.1%

Other

1

0.4%

2

5.

2

5.

Summary of Survey Results

Penetration (implementation) of the SDGs
Q8 Which SDGs goal(s) has your company chosen to focus on? (Select all that apply)

Number of responses/%

SDG 1

71

27.4%

SDG 10

158

61.0%

SDG 2

67

25.9%

SDG 11

175

67.6%

SDG 3

187

72.2%

SDG 12

218

84.2%

SDG 4

137

52.9%

SDG 13

227

87.6%

SDG 5

200

77.2%

SDG 14

121

46.7%

SDG 6

114

44.0%

SDG 15

147

56.8%

SDG 7

199

76.8%

SDG 16

148

57.1%

SDG 8

222

85.7%

SDG 17

177

68.3%

SDG 9

202

78.0%

We have not selected any
specific goals to focus on

14

5.4%

Q9 How does your company incorporate the SDGs into corporate management? (Select all that apply)

Number of responses/%

We have clarified our contribution to the SDGs as a corporate policy.

197

76.1%

Top management has expressed a commitment to contribute to the SDGs.

190

73.4%

We link the SDGs selected in the previous question to our company's priority issues.

216

83.4%

We have positioned quantitative targets that contribute to the SDGs selected in theprevious question as company KPIs.

169

65.3%

We have an organisational structure (e.g. cross-departmental committee) in place toaddress the SDGs selected in the previous question.

196

75.7%

We disclose quantitative targets and performance that contribute to the SDGs selectedin the previous question.

167

64.5%

We link performance on the quantitative targets that contribute to the SDGs selected in
the previous question to directors' remuneration.

74

28.6%

Other

20

7.7%

Nothing in particular

5

1.9%

Q10 Please select one of the following that best describes your company's development and implementation ofenvironmental, social, and governance policies for suppliers.
Number of responses/%Not
implementing

Implementing
for domestic
suppliers

Implementing Implementing forfor overseas both domestic andsuppliers
overseas suppliers

Other

We have developed
policies.

33

12.7%

72

27.8%

1

0.4%

137

52.9%

16

6.2%

We distribute and collectchecklists.

89

34.4%

60

23.2%

-

-

93

35.9%

17

6.6%

We conduct audits.

160

61.8%

29

11.2%

3

1.2%

49

18.9%

18

6.9%

We make requests for
improvements.

126

48.6%

49

18.9%

1

0.4%

68

26.3%

15

5.8%

We quantify improvements.

167

64.5%

31

12.0%

-

-

46

17.8%

15

5.8%

96

Summary of Survey Results

Q11 What challenges does your company face in taking action on the SDGs? (Select all that apply)

Number of responses/%Societal awareness of the SDGs

15

5.8%

Ways to expand actions within the company

125

48.3%

Commitment by top management

23

8.9%

Level of understanding and implementation by middle management

134

51.7%

Level of understanding and implementation among employees in general

146

56.4%

Level of understanding and implementation by board directors and/or executive officers
in charge

59

22.8%

Ascertaining the overall picture of risks to people and the environment associated withthe value chain

149

57.5%

Setting quantitative indicators and evaluation methods for impacts, etc.

190

73.4%

Resources (financial resources, human resources, knowledge, skillsets, etc.)

150

57.9%

Support by national and local government

46

17.8%

Effective ways to engage stakeholders

85

32.8%

Collective action for the SDGs (company/gov't/organisation partnerships)

61

23.6%

Appropriate information disclosure (including identifying risks related to SDG washing)

100

38.6%

Publicity and communication strategies for SDGs actions (disseminating information in
Japan and overseas)

102

39.4%

Balancing growth strategies and the SDGs

121

46.7%

Other

8

3.1%

Nothing in particular

3

1.2%

Q12 What is your company's signatory (participation) status or intention regarding the initiatives below?

Number of responses/%

Already
signedPreparing tosign

Consideringsigning

No intention
to sign

Unaware of
initiative

Other

WEPs

31

12.0%

5

1.9%

119

45.9%

59

22.8%

25

9.7%

20

7.7%

SBTi

78

30.1%

34

13.1%

87

33.6%

32

12.4%

16

6.2%

12

4.6%

Tokyo Principles

3

1.2%

1

0.4%

101

39.0%

75

29.0%

54

20.8%

25

9.7%

97

2

5.

2

5.

Summary of Survey Results

Gender Equality (SDG 5)
Q13 Which of the following apply to your company with regard to policies and commitments on gender equality?
(SDGs overall, WEPs 1) (Select all that apply)
Number of responses/%

We have not clearly positioned gender equality in our policies.

33

12.7%

We understand that promoting gender equality is the foundation for “women’s active
participation” and “diversity and inclusion”, and have clearly positioned this in ourpolicies.

210

81.1%

Top management has expressed commitment to implementing policies and measures.

149

57.5%

Top management has expressed commitment to gender quality (using the term "genderequality").

47

18.1%

When formulating and revising policies, we engage in dialogues with stakeholders andinterview experts.

73

28.2%

Our entire value chain is subject to our policies and commitments.

65

25.1%

We link our policies, commitments, plans and performance and disclose information(URL where information is disclosed:
).

110

42.5%

We monitor our progress in promoting gender quality and disclose information(URL where information is disclosed:
).

90

34.7%

Q14 Does your company include "women's human rights" in trainings on human rights and provide opportunities for
employees to learn about the role of women's human rights in the Convention on the Elimination of all Formsof Discrimination Against Women, the International Bill of Human Rights, and the ILO Core Labour Standards?
Number of responses/%

We do not conduct training on human rights.

40

15.4%

We conduct training on human rights without specifically referring to "women's humanrights".

92

35.5%

We refer to "women's human rights" in trainings on human rights without mentioning
the Convention on the Elimination of All Forms of Discrimination Against Women, theInternational Bill of Human Rights, and the ILO Core Labour Standards.

88

34.0%

We include "women's human rights" in our trainings and provide opportunities
for employees to learn about the Convention on the Elimination of All Forms ofDiscrimination Against Women, the International Bill of Human Rights, and the ILO Core
Labour Standards.

32

12.4%

Other

7

2.7%

Q15 Has your company set targets for the percentage of women board members (including directors and auditors)
and formulated plans to achieve them?
Number of responses/%

We have not set specific targets for the percentage of women board members.

167

64.5%

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

13

5.0%

We have set targets and formulated action plans (currently, the percentage of womenboard members is less than 30%).

56

21.6%

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

10

3.9%

Other

13

5.0%

98

Summary of Survey Results

Q16 What measures has your company taken to eliminate the gender pay gap? (Select all that apply)

Number of responses/%

We have not conducted gender pay gap calculations nor disclosed information because
it is not mandatory.

34

13.1%

We have calculated and disclosed information on the gender pay gap in accordancewith the law, or we have plans to disclose information, even though it is not mandatory.

23

8.9%

We have not calculated and disclosed the gender pay gap, but are currently preparing
because it is now mandatory.

168

64.9%

We calculated and disclosed the gender pay gap before it became mandatory.

25

9.7%

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

14

5.4%

We have carried out factor analysis of the gender pay gap on the basis of the calculated
figures.

37

14.3%

Other

17

6.6%

Q17 Does your company have an effective system for redress pertaining to all forms of violence and sexual
harassment at work? (Select all that apply)
Number of responses/%

We do not have a system.

2

0.8%

We have a system that allows for anonymous consultation and filing of complaints (toensure confidentiality).

244

94.2%

Our system prohibits retaliation against the person filing the complaint and ensures thatthe person is not treated unfavourably.

233

90.0%

We have a mechanism in place to not only listen to the opinions of persons filingcomplaints, but also to lead to resolution.

217

83.8%

We have a system for reporting and resolution with an external third party as a contact
point.

218

84.2%

We regularly conduct review of past allegations and utilise this information forharassment prevention measures.

172

66.4%

5

1.9%

Other

Q18 Does your company conduct activities to encourage male employees to take parental leave? (Select all that
apply)
Number of responses/%

We do not carry out any specific activities.

19

7.3%

We have established numerical targets for the male parental leave uptake rate.

118

45.6%

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

175

67.6%

We individually contact all employees who announce the pregnancy or childbirth of a
spouse, including providing information on the parental leave system for men, confirming
intention, and providing encouragement on uptake.

197

76.1%

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

168

64.9%

Other

17

6.6%

99

2

5.

2

5.

Summary of Survey Results

Q19 This question refers to the duration of parental leave taken by male employees in the previous fiscal year.
Please select one of the following.
Number of responses/%

No eligible employees

10

3.9%

0 days17

6.6%

1 to 2 days

15

5.8%

Less than 1 week

60

23.2%

One week or more

78

30.1%

One month or more

61

23.6%

Other

18

6.9%

Q20 Is your company implementing gender-responsive supply chain management? (Select all that apply)
Number of responses/%

We are not implementing gender-responsive supply chain management.

143

55.2%

We have integrated and mainstreamed a gender equality perspective into human rights
due diligence and identified gender-driven risks.

68

26.3%

We collect relevant information on gender and women's human rights from suppliers andclients in Japan and overseas.

49

18.9%

We ensure women's participation so that the views and experiences of womenare reflected in stakeholder engagement, including organisations and experts withknowledge and experience on gender.

30

11.6%

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

13

5.0%

We have policies and targets in place to prioritise procurement from companies
with rates of 30% or more women board members. Or, our supplier code of conduct
explicitly states support for prioritising these businesses.

4

1.5%

We have policies and targets in place to promote procurement from women-owned
businesses. Or, our supplier code of conduct explicitly states support for women-owned
businesses.

3

1.2%

Other

17

6.6%

Q21 Does your company implement activities aimed at achieving SDG 5 (promoting gender equality andempowering women and girls)? (Select all that apply) (Responses on details of activities omitted)
Number of responses/%

We do not implement any specific activities.

124

47.9%

Initiatives and support related to eradication and response to all forms of violenceagainst women. (Details of activities:
)

27

10.4%

Initiatives and support related to women's poverty (e.g. support for single mothers,
young women, and single elderly women facing financial challenges).
(Details of activities:
)

53

20.5%

Initiatives and support related to closing the gender gap in STEM (science, technology,
engineering, mathematics) and digital fields. (Details of activities:
)

42

16.2%

Initiatives and support related to empowerment of women in rural areas anddevelopment of women leaders. (Details of activities:
)

37

14.3%

Initiatives and support related to promoting the empowerment and leadership of girls
and young women. (Details of activities:
)

45

17.4%

Other

26

10.0%

100

Summary of Survey Results

Q22 Does your company have mechanisms in place to collect data in the following categories?
Number of responses/%

No mechanisms
in place toregularly collectdata

Mechanisms
in place toregularly collectdata

Data is regularlycollected,
factors analysed
for issues
identified, andefforts made toaddress issues.

Data disclosed
in integrated
reports, company
website, and in the
database of the Act
on the Promotionof Female
Participation
and Career
Advancement.

Sex-disaggregated data on
employees

7

2.7%

43

16.6%

15

5.8%

194

74.9%

Sex-disaggregated data on
management

12

4.6%

43

16.6%

15

5.8%

189

73.0%

Sex-disaggregated data on
new/mid-career hires

19

7.3%

55

21.2%

38

14.7%

147

56.8%

Sex-disaggregated data on
appointments/promotions

43

16.6%

94

36.3%

69

26.6%

53

20.5%

Sex-disaggregated data on
uptake rate and duration ofparental leave

19

7.3%

63

24.3%

38

14.7%

139

53.7%

Decent Work and Human Rights (SDG 8)
Q23 Which of the following describes your company in terms of policies and commitments on human rights? (Selectall that apply)
Number of responses/%

We have not clarified any policies.

16

6.2%

We have clarified specific policies.

211

81.5%

Top management has expressed commitment.

177

68.3%

Our policies and commitments cover the entire value chain.

157

60.6%

We engage in stakeholder dialogue and seek advice from experts when formulating/revising our policies.

113

43.6%

We link our policies, commitments, plans, and performance and disclose information inlist form.

67

25.9%

We have policies/commitments in place that reference international human rights
standards .

157

60.6%

We have policies/commitments in place that cover issues for all stakeholders
impacted in our value chain (e.g. consumers, residents of communities where businessdevelopment is conducted).

127

49.0%

We identify salient human rights issues for our company and include these in ourpolicies/commitments.

100

38.6%

Other

16

6.2%

101

2

5.

2

5.

Summary of Survey Results

Q24 Which of the following describes your company in terms of human rights due diligence (human rights DD)?
(Select all that apply)
Number of responses/%

We are not currently conducting human rights DD (not considered necessary).

9

3.5%

We are not currently conducting human rights DD (considered necessary, but have yet
to undertake).

58

22.4%

We offer training opportunities that address business and human rights for all directors/
employees.

142

54.8%

We have incorporated policies on human rights into specific action plans (e.g. target
setting), and engage in monitoring/improvement based on a PDCA cycle.

92

35.5%

We disclose information on efforts related to respect for human rights, including ourpolicies on human rights, human rights DD, and remedy actions, to stakeholders in aneasily accessible and cohesive format.

100

38.6%

We engage with stakeholders on human rights DD in business operations (e.g.
information sessions for customers, SAQ, meetings based on results).

86

33.2%

We set incentives for respect for human rights, including making human rights DD one ofthe performance indicators for senior (directors in charge)/middle management.

14

5.4%

We identify salient issues based on the overall perspective of human rights issues in ourcompany.

109

42.1%

We conduct human rights impact assessments on our value chain and our own
operations (including management divisions) for human rights issues in our company.

73

28.2%

We have an internal division or system that examines cross-departmental human rights
issues and we provide it with the necessary authority/budget for human rights activities.

97

37.5%

Other

24

9.3%

Q25 Which of the following statements describe your company in terms of remediation and remedy (grievance)mechanisms? (Select all that apply)
Number of responses/%

We do not have any specific mechanisms in place.

21

8.1%

We have external consultation/remedy contact points (e.g. lawyers or NGOs) that canbe used by workers of our company and domestic group companies (Japanese only).

207

79.9%

We have external consultation/remedy contact points (e.g. lawyers or NGOs) that canbe used by foreign workers of our company and overseas group companies (multilingual).

111

42.9%

We have a contact point (internal or external) that can be used by anyone outside thecompany, including domestic consumers and local residents (Japanese only).

107

41.3%

We have a contact point (internal or external) that can be used by anyone outside
the company, including consumers and local residents in business development areas
overseas (multilingual).

45

17.4%

We disclose information on the usage of contact points, procedures, content ofgrievances, and response measures, including above four response options .

74

28.6%

We engage with stakeholders who may use these mechanisms in order to review
consultation and grievance procedures.

33

12.7%

We have a consultation/grievance mechanism in place available to workers at domestic
suppliers and customers (at the organisational level).

105

40.5%

We have a consultation/grievance mechanism in place available to workers at overseas
suppliers and customers (at the organisational level).

55

21.2%

We work with victims (or the individuals/organisations representing them) and engage with
suppliers, clients, and third parties (e.g. NGOs) to have remediation and remedy in place.

58

22.4%

Other

11

4.2%

102

Summary of Survey Results

Q26 If your company has conducted engagement (dialogue) with persons subject to your company's respect forhuman rights, please share the purpose, subjects, and details of implementation, as well as the URL where
information is disclosed, of examples of initiatives in the formulation or revision of policies and those thatreflect remediation and remedy mechanisms. (Responses on URLs omitted)(1) Purpose of engagement (dialogue)

Number of responses/%

We have not conducted engagement on human rights.

106

40.9%

To formulate/revise our policies

67

25.9%

To identify human rights risks from our business activities

73

28.2%

To review grievance mechanism

3

1.2%

Other

10

3.9%

(2) Please select the subject of engagement (dialogue). (Select all that apply)

Number of responses/%

Employees

120

78.4%

Suppliers

75

49.0%

Customers

59

38.6%

Consumers

28

18.3%

Local communities

34

22.2%

NGOs, experts, investors

79

51.6%

Other

10

6.5%

(3) D etails of engagement (dialogue) implementation. (Please indicate URL where information isdisclosed) (Responses omitted)

Q27 Which of the following describes your company in terms of realising decent work for all workers? (Select allthat apply)
Number of responses/%

We are not taking any specific measures (not considered necessary).

2

0.8%

We are not taking any specific measures (considered necessary, but have yet toundertake).

12

4.6%

We monitor the working hours of workers (employees) in our group companies andmake efforts to optimise working hours.

238

91.9%

We have developed or are considering developing a system for equal pay for equal
work in our company.

158

61.0%

We have a policy to guarantee a living wage for our company's workers (employees),and have confirmed that we are providing wages that exceed a living wage.

109

42.1%

We have a policy in place prohibiting forced and compulsory labour, human trafficking,and long working hours, including by technical interns, in our company and for ourcustomers, as well as a policy prohibiting discrimination/harassment of foreign nationals.

169

65.3%

We take corrective actions to ensure decent work (e.g. living wage, working hours)
at suppliers and customers, including review of our own QCD (quality, cost, delivery)requirements.

57

22.0%

We conduct and disclose results of engagement surveys to measure the level of decent
work among our company's workers (employees).

112

43.2%

We lobby the government (either on our own or through affiliated organisations) to ratify
treaties and legislation and solve problems to ensure decent work in countries/regions
where we operate.

6

2.3%

Other

5

1.9%

103

2

5.

2

5.

Summary of Survey Results

Q28 Which of the following describes your company in terms of human rights initiatives for consumers that comeinto contact with your products and services? (Select all that apply)
Number of responses/%

We are not taking any specific measures (not considered necessary).

46

17.8%

We are not taking any specific measures (considered necessary, but have yet toundertake).

47

18.1%

We make active efforts to have opportunities for engagement (dialogue andcollaboration) with consumers about our company (including business activities,
products/services, social contributions, and environmental protection activities).

55

21.2%

We understand the human rights issues of consumers and users (end users) who are
involved with our business.

69

26.6%

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

94

36.3%

We take measures to address human rights abuses (e.g. hate speech on social media
platforms) of consumers/users of our products/services.

29

11.2%

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

71

27.4%

We contribute to the greater realisation of human rights through our products/services.

100

38.6%

Other

18

6.9%

Q29 Which of the following describes your company in terms of efforts to address the human rights of local
communities potentially impacted by your business? (Select all that apply)
Number of responses/%

We are not taking any specific measures (not considered necessary).

24

9.3%

We are not taking any specific measures (considered necessary, but have yet toundertake).

58

22.4%

We make active efforts to have opportunities for engagement (dialogue andcollaboration) with local communities about our company (including business activities,
products/services, social contributions, and environmental protection activities).

110

42.5%

We have corporate policies (either as a company or group) in place to address the
structural problems of human rights abuses in the countries/regions where we operate.

20

7.7%

We conduct periodic information gathering and human rights impact assessments
to understand the human rights issues that exist in the countries/regions where we
operate.

82

31.7%

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

69

26.6%

We engage in social contribution activities (either as a company or in collaboration withother parties) to resolve human rights issues in countries and regions.

95

36.7%

We make policy recommendations to national government (either as a company orgroup) to address national- or regional-level human rights issues.

10

3.9%

Other

12

4.6%

104

Summary of Survey Results

Sustainable Consumption and Production (SDG 12)
Q30 W hich of the following describes your company in terms of policies and commitments on sustainableconsumption and production? (Select all that apply)
Number of responses/%

We have not clarified any policies.

47

18.1%

We have clarified specific policies.

187

72.2%

Top management has expressed commitment.

138

53.3%

Our policies and commitments cover the entire value chain.

117

45.2%

We engage in stakeholder dialogue and seek advice from experts when formulating/revising our policies.

69

26.6%

We link our policies, commitments, plans, and performance and disclose information inlist form.

85

32.8%

We have included Items related to the efficient use of natural resources in risk
management.

55

21.2%

Other

12

4.6%

105

2

5.

2

5.

Summary of Survey Results

Q31 Please indicate the implementation status of each of the following typical circular economy-type initiatives.

Raw material procurement, product/service design, and production

Number of responses/%

Not directly
engaged in, but
Not
Under
participating
implemented
Underconsideration implementationin relatedor underprojects andconsideration
initiatives

Not directly
engaged in,
but funding
relatedprojects andinitiatives

Notapplicableto our sector

Sustainableprocurement of
raw materials

11

4.2%

39

15.1%

157

60.6%

6

2%

2

0.8%

44

17.0%

Environmentally
non-damaging
procurement,
including forests

18

6.9%

32

12.4%

142

54.8%

11

4.2%

1

0.4%

55

21.2%

Utilisation ofunused domestic
biologicalresources

71

27.4%

29

11.2%

38

14.7%

4

1.5%

1

0.4% 116

44.8%

Reduced use ofnatural resources
and introductionof circular productdesign compatible
with the 3Rs andextended product life

15

5.8%

27

10.4%

155

59.8%

6

2.3%

2

0.8%

54

20.8%

Switch to recycle
materials/
resources

8

3.1%

25

9.7%

180

69.5%

7

2.7%

2

0.8%

37

14.3%

Development/
introductionof renewable
alternative materials,
such as those of
biological origin

27

10.4%

43

16.6%

113

43.6%

7

2.7%

4

1.5%

65

25.1%

Inclusion of
information onmaterial efficiency(recyclability,
repairability,
upgradability) on
products

52

20.1%

45

17.4%

87

33.6%

3

1.2%

1

0.4%

71

27.4%

106

Summary of Survey Results

Transport, sales, and consumption

Number of responses/%

Not directly
engaged in, but
Not
Under
participating
implemented
Underconsideration implementationin relatedor underprojects andconsideration
initiatives

Not directly
engaged in,
but funding
relatedprojects andinitiatives

Notapplicableto our sector

Reduction inpackaging materials
used and conservationof resources incontainers andpackaging

6

2.3%

21

8.1%

180

69.5%

2

0.8%

2

0.8%

48

18.5%

Implementation ofactivities/businessto extend the periodof time a product isvaluable by improving
product durability,
regular maintenance,
repair, remanufacturing,and resale

14

5.4%

20

7.7%

160

61.8%

4

1.5%

2

0.8%

59

22.8%

Development ofsharing services

62

23.9%

39

15.1%

62

23.9%

3

1.2%

2

0.8%

91

35.1%

Developmentof Products as
a Service (PaaS)
business models

50

19.3%

44

17.0%

85

32.8%

1

0.4%

3

1.2%

76

29.3%

Disposal, recovery, and resource circulation

Number of responses/%

Not directly
engaged in, but
Not
Under
participating
implemented
Underconsideration implementationin relatedor underprojects andconsideration
initiatives

Not directly
engaged in,
but funding
relatedprojects andinitiatives

Notapplicableto our sector

Introduction of
returnable/deposit
product systems forcontainers and other
items

52

20.1%

30

11.6%

70

27.0%

4

1.5%

1

0.4% 102

39.4%

Establishment of system
to collect/recycle ourown used products

41

15.8%

46

17.8%

86

33.2%

8

3.1%

3

1.2%

75

29.0%

Establishment ofsystem to repair/resell/remanufacture our own
products

56

21.6%

34

13.1%

70

27.0%

5

1.9%

2

0.8%

92

35.5%

Establishment of system
to collect/reuse/ recycle
used products including
other companies'
products

66

25.5%

33

12.7%

84

32.4%

13

5.0%

3

1.2%

60

23.2%

107

2

5.

2

5.

Summary of Survey Results

Q32 Which of the following statements best describes yourcompany in terms of collaboration with other companies
or stakeholders on projects for the circular economy?
Number of responses/%

We are not implementing or
considering projects.

58

22.4%

We are not implementing projects, butthey are currently under consideration.

74

28.6%

We are implementing projects.

120

46.3%

7

2.7%

Other

Q33 This question is directed at those who
responded affirmatively in the previous
question regarding implementing
projects in collaboration with othercompanies and stakeholders for thecircular economy. Please provide
specific examples, including partners,
purpose of collaboration, content ofproject activities, goals, and targets.
(Responses omitted)

259
Q34 Please indicate the implementation status of information provision and eco-design related to the circular
economy.
Number of responses/%

Not directly
engaged in, but
Not
Under
participating
implemented
Underconsideration implementationin relatedor underprojects andconsideration
initiatives

Not directly
engaged in,
but funding
relatedprojects andinitiatives

Notapplicableto our sector

Indication of
information for
consumers or
customer companies
on circularity(e.g. recyclability,
repairability)

37

14.3%

46

17.8%

111

42.9%

1

0.4%

-

-

64

24.7%

Appropriate
disclosure of inhouse product/
service traceability
information

55

21.2%

67

25.9%

66

25.5%

4

1.5%

1

0.4%

66

25.5%

Product design andprovision of services
that facilitate
circular behaviour
by consumers or
customers (e.g.
taking used products
to collection points,
using refills)

35

13.5%

41

15.8%

97

37.5%

3

1.2%

-

-

83

32.0%

Indication of
circularity of in-houseproducts/ services
using third-party
certification, such as
eco-labels (names of
eco-labels omitted)

53

20.5%

45

17.4%

72

27.8%

4

1.5%

1

0.4%

84

32.4%

Initiatives thatfacilitate the circularbehaviour of
suppliers (improved
product design/
manufacturing
processes, trainings)

47

18.1%

60

23.2%

80

30.9%

5

1.9%

1

0.4%

66

25.5%

108

Summary of Survey Results

Climate Change (SDG 13)
Q35 Which of the following apply to your company with regard to policies and commitments to achieve net zero by
2050? (Select all that apply)
Number of responses/%

We have not clarified policies.

45

17.4%

We have clarified policies.

187

72.2%

Top management has expressed commitment.

176

68.0%

Our policies and commitments apply to the entire supply chain.

110

42.5%

We engage in stakeholder dialogue and seek advice from experts when formulating/revising our policies.

87

33.6%

We link our policies, commitments, plans, and performance and disclose information in list form.

125

48.3%

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

26

10.0%

Other

11

4.2%

Q36 Please select, by scope, the greenhouse gas (GHG) emissions that you identify at your company. (Select allthat apply)
Number of responses/%

Scope of GHG emissions unidentified

19

7.3%

Scope 1 (direct GHG emissions from the company)

234

90.3%

Scope 2 (indirect emissions from the use of electricity, heat, and steam supplied byother companies)

232

89.6%

Scope 3 (some or all of the emissions from other companies that are related to business
operations)

196

75.7%

Q37 This question is directed at those who responded affirmatively in the previous question regarding identifying
Scope 3 emissions. Which categories are included in your company's Scope 3 emissions calculations? (Selectall that apply)
Number of responses/%

Purchased goods and services

176

89.8%

Capital goods

169

86.2%

Fuel- and energy-related activities

172

87.8%

Transport and distribution (upstream)

157

80.1%

Waste generated in operations

174

88.8%

Business travel

182

92.9%

Employee commuting

179

91.3%

Leased assets (upstream)

58

29.6%

Transportation and distribution (downstream)

103

52.6%

Processing of sold products

56

28.6%

Use of sold products

126

64.3%

End-of-life treatment of sold products

139

70.9%

Leased assets (downstream)

66

33.7%

Franchises

30

15.3%

Investments

65

33.2%

Other (upstream)

6

3.1%

Other (downstream)

5

2.6%

109

2

5.

2

5.

Summary of Survey Results

Q38 Which of the following activities does your company prioritise to achieve net zero GHG emissions? (Select allthat apply)
Number of responses/%

Promotion of energy savings (e.g. energy-saving behaviour, installation of equipment,
review of working practices, reduction of office floor space)

247

95.4%

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

200

77.2%

Renewable energy certificates

128

49.4%

Effective use of heat

108

41.7%

Introduction of electric vehicles or charging infrastructure

106

40.9%

Corporate Power Purchase Agreements (PPAs)

92

35.5%

Promotion of the use of hydrogen

68

26.3%

Purchase of offset credits (excluding renewable energy certificates)

63

24.3%

Introduction of internal carbon pricing

85

32.8%

Introduction of carbon capture, utilisation, and storage technologies

48

18.5%

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

101

39.0%

Review of business models and project portfolios

88

34.0%

Education and training of management, employees, and other stakeholders

137

52.9%

Engaging the supply chain

108

41.7%

Participation in initiatives in Japan and overseas

157

60.6%

Transformation of people's lifestyles

44

17.0%

Policy recommendations to government

34

13.1%

Other

15

5.8%

None of these apply

5

1.9%

Q39 What external environmental improvements do you think are needed to help your company achieve net zero?
(Select all that apply)
Number of responses/%Strengthening of NDCs (≈ emission reduction targets)

79

30.5%

Increased share of renewables in energy mix

228

88.0%

Intangible support for companies/organisations that want to engage in climate action(e.g. energy conservation audits, support for SBTi target setting and TCFD (Task Force on
Climate-related Financial Disclosures) scenario analysis)

162

62.5%

Tangible support for companies/organisations that want to engage in climate action

167

64.5%

Promotion of carbon recycling

109

42.1%

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

50

19.3%

Promotion of Corporate Power Purchase Agreements (PPAs) and review of virtual PPA
systems

113

43.6%

Introduction/promotion of carbon pricing

122

47.1%

Support for electrifying vehicles

107

41.3%

Restarting/utilisation of nuclear power (including next-generation nuclear power)

50

19.3%

Other

27

10.4%

None of these apply

5

1.9%

110

Summary of Survey Results

Q40 Has your company identified climate change risks and opportunities and integrated them into your strategies
and plans?
Number of responses/%

We have not specifically identified risks and opportunities.

36

13.9%

We have identified risks and opportunities, but have not integrated them into ourstrategies and plans.

28

10.8%

We have identified risks and opportunities internally, including at our workplaces, andintegrated them into our strategies and plans.

79

30.5%

We have identified risks and opportunities, including the supply chain, and integrated
them into our strategies and plans.

75

29.0%

We have identified risks and opportunities, including local communities where ourbusinesses are located, and integrated them into our strategies and plans.

14

5.4%

We have identified risks and opportunities for local communities, including the entire
supply chain, and integrated them into our strategies and plans.

21

8.1%

Other

6

2.3%

Preventing Corruption (SDG 16)
Q41 Which of the following describes your company in terms of policies and commitments on preventing corruption(e.g. bribery, collusion)? (Select all that apply)
Number of responses/%

We have not clarified any policies.

14

5.4%

We have clarified policies.

213

82.2%

Top management has expressed commitment.

146

56.4%

Our policies and commitments apply to the entire value chain.

103

39.8%

We engage in stakeholder dialogue and seek advice from experts when formulating/revising our policies.

64

24.7%

We link our policies, commitments, plans, and performance and disclose information inlist form.

41

15.8%

We have clarified anti-bribery policies.

191

73.7%

We have clarified anti-collusion policies.

150

57.9%

Other

16

6.2%

Q42 What methods does your company use to assess corruption risk? (Select all that apply)
Number of responses/%

We do not assess corruption risk (and we do not consider it necessary).

15

5.8%

We do not assess corruption risk (although we consider it necessary).

49

18.9%

We conduct desk-based research.

87

33.6%

We conduct surveys with group employees in Japan and overseas.

99

38.2%

We conduct interviews with group employees in Japan and overseas.

63

24.3%

We conduct inspections (audits with onsite inspections) at relevant sites in Japan andoverseas.

100

38.6%

Other

31

12.0%

111

2

5.

2

5.

Summary of Survey Results

Q43 What internal rules does your company have in place for specific anti-corruption procedures? (Select all that
apply)
Number of responses/%

We have no specific internal rules in place (and we do not consider them necessary).

10

3.9%

We have no specific internal rules in place (although we consider them necessary).

34

13.1%

We have anti-bribery rules in place.

178

68.7%

We have anti-collusion rules in place.

122

47.1%

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

52

20.1%

Other

38

14.7%

Q44 What measures is your company taking to improve the effectiveness of rules? (Select all that apply)
Number of responses/%

We are not taking any specific measures (and we do not consider them necessary).

4

1.5%

We are not taking any specific measures (although we consider them necessary).

14

5.4%

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

139

53.7%

We conduct anti-corruption education and training for group employees in Japan andoverseas.

172

66.4%

We have established disciplinary procedures for persons who violate rules.

176

68.0%

We conduct regular audits on the effectiveness of internal rules.

126

48.6%

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

215

83.0%

We are working to improve our internal whistle-blower system.

163

62.9%

Other

12

4.6%

Q45 What initiatives does your company have in place to prevent bribery by third parties ? (Select all that apply)
Number of responses/%

We have no particular initiatives in place.

86

33.2%

We have rules in place that third parties must observe.

139

53.7%

We conduct bribery risk assessments (investigations and analyses of offering/acceptanceof bribes) on third parties and reflect these on our system of controls.

45

17.4%

We have controls in place for third parties through contractual clauses and offer
education and training, such as workshops and e-learning.

32

12.4%

We regularly monitor the status of compliance with rules by third parties.

49

18.9%

Other

25

9.7%

Q46 In so far as possible, please provide the specific details of initiatives. (Responses omitted)

112

Summary of Survey Results

Q47 What measures is your company taking to gain the understanding of stakeholders on anti-corruption efforts?
(Select all that apply)
Number of responses/%

We are not taking any measures (and we do not consider them necessary).

27

10.4%

We are not taking any measures (although we consider them necessary).

64

24.7%

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

70

27.0%

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

111

42.9%

We create opportunities for dialogue with stakeholders on preventing corruption.

41

15.8%

Other

30

11.6%

Q48 What measures does your company have in place to prevent cover-ups of fraud involving corrupt practices (e.g.
falsifying data, accounting irregularities)? (Select all that apply)
Number of responses/%

We have no specific measures in place.

23

8.9%

We have clarified policies on preventing data falsification.

119

45.9%

We are enhancing security to prevent data falsification.

142

54.8%

We have clarified policies on preventing accounting irregularities.

147

56.8%

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

119

45.9%

We conduct inspections at relevant sites in Japan and overseas (audits with onsite
inspections).

151

58.3%

Other

23

8.9%

113

2

5.

2

5.

Summary of Survey Results

Efforts by non-business participants (20 responding participants)
Q1 Which SDGs goal(s) has your organisation chosen to focus on? (If you focus on all SDGs goals, please select all17) (Select all that apply)
Number of responses/%

SDG 1

7

35%

SDG 2

7

35%

SDG 3

11

55%

SDG 4

11

55%

SDG 5

11

55%

SDG 6

8

40%

SDG 7

10

50%

SDG 8

11

55%

SDG 9

11

55%

SDG 107

35%

SDG 11

840%

SDG 12

1155%

SDG 13

1050%

SDG 14945%

SDG 15735%

SDG 16630%

SDG 17

13

65%

We have not selected any specific goals to focus on

420%

Please see the supplementary volume for a summary of the following.
Please share an overview of the main initiatives that your organisation is working on in partnership/collaboration
with companies, local governments, academia, and non-profit organisations to achieve the above goals.
Q2 If your organisation has identified specific SDGs goals (169 targets), please indicate their number.
Q3 Please share the objectives of the above initiatives.
Q4 Please provide details on the name and contact information for the above initiatives.
Q5 Please share specific details of the above initiatives within about 400 characters in Japanese.
Q6 Please share the specific outcomes of the above initiatives (e.g. number of participants, tonnes of emission
reductions, etc.)
Q7 If your organisation has disclosed information on the above initiatives, please provide the location (URL)114

July 2023, Japan
This is the English translated version of the Japanese published in March 2023
Research collaboration and authorship (5 SDG goals)
Asako Osaki
Director, Gender Action PlatformEmi Sugawara
Professor, Faculty of International Studies, Osaka University of Economics and Law
Mizuki Kato
Policy Researcher, Sustainable Consumption and Production Area, IGES
Rina Kurumisawa
Fellow, Sustainable Consumption and Production Area, IGES
Chika Aoki-Suzuki Senior Researcher/Deputy Director, Sustainable Consumption and Production Area, IGES
Kentaro Takahashi Deputy Director, Climate and Energy Area, IGES
Akibi Tsukui
Programme Manager, Climate and Energy Area, IGES
Shinya Fujino	Assistant Professor, Faculty of Global Studies, Reitaku University Steering Committee
Member, Anti-Bribery Committee Japan
Planning, development, authorship
Haruko Uchida
Global Compact Network Japan
Naoko Okubo
Global Compact Network Japan
Shinji Onoda
Research Manager, Integrated Sustainability Centre, IGES
Mayuko Ono
Programme Coordinator, Integrated Sustainability Centre, IGES
Acknowledgement
Sincere appreciations are expressed to external stakeholders and colleagues, including members of the
GCNJ SDG Taskforce, who reviewed and provided valuable comments in the preparation of the report.
About the cover design
Global Compact Network Japan (GCNJ) has identified five SDG goals (5. Gender Equality, 8. Decent Workand Human Rights, 12, Circular Economy, 13. Climate Change, 16. Preventing Corruption) as priorities,
based on the ten principles in four areas (Human Rights, Labour, Environment and Anti-Corruption) set
out by the United Nations Global Compact (UNGC). The cover design reflects how efforts are being
scaled up and developed through partnership and collaboration with the aim of achieving the Sustainable
Development Goals (SDGs) by 2030.

Global Compact Network Japan (GCNJ)

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5-53-70 Jingumae, Shibuya-ku, Tokyo, 150-0001 Japan
FAX: +81-3-6803-8156
E-mail: gcjnofﬁce@ungcjn.org
URL: https://www.ungcjn.org/

Institute for Global Environmental Strategies (IGES)

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TEL: +81-46-855-3700
FAX: +81-46-855-3709
E-maiil: iges@iges.or.jp
URL: https://www.iges.or.jp/en

The contents of this publication are the views of the authors and do not represent the views of the publishers (GCNJ and IGES).
©2023 Global Compact Network Japan and Institute for Global Environmental Strategies. All rights reserved.