Supporting Companies and Organisations【Companies and Groups】■

ANA Holdings Inc.

■

Ohtori Corporation■

Seigakuin University & Schools■

Asahi Shimbun Company■

Koei Research & Consulting, Inc.

■

Business Consultants, Inc.

■

Kokusai Kogyo Co., Ltd.

■

University of Tsukuba■

Konica Minolta, Inc.

■

Sumitomo Chemical Co., Ltd.

■

Seiko Epson Corporation■

Nabtesco Corporation■

Japan Asia Group Limited■

Nippon Life Insurance Company

July 2019, Japan
This is the English translated version of the Japanese report published in February 2019.
Authors:
Tsuneo Oba, Executive Director, GCNJ
Kunihiko Yokoishi, Deputy Executive Director, GCNJ
Hiroshi Sato, Project Manager, GCNJ
Asami Kokufuda, Project Manager, GCNJ
Shinji Onoda, Policy Researcher, Sustainability Governance Centre, IGES
Nobue Amanuma, Research Manager/Senior Researcher, Sustainability Governance Centre, IGES
Tetsuro Yoshida, Research Manager/Senior Researcher, Sustainability Governance Centre, IGES
Sayaka Yano, Library and Research Support Coordinator, Strategic Management Office, IGES
Contributing author:
Asako Osaki, National Coordinator, WE EMPOWER JAPAN
Acknowledgement:
The authors would like to express their sincere appreciation to Mariko Saito (National Coordinator, WE
EMPOWER JAPAN) for her advice and accompaniment during the research for this report, as well as to all
external and IGES colleagues who reviewed and provided valuable comments on the draft, namely ToshihikoGoto (Board Member, GCNJ/CEO, Sustainable Management Forum of Japan), Mariko Kawaguchi (Board
Member, GCNJ/Daiwa Institute of Research Ltd.), Masahiro Kawatei (Leader, GCNJ SDGs Task Force/Hakuhodo
DY Holding), members of the GCNJ SDGs Task Force, Nobutoshi Miyoshi (Managing Director, IGES), Hidefumi
Imura (Senior Fellow, IGES), and Eiko Kitamura (Publication Coordinator, IGES).

Contents
1. Introduction

1

2. Overview of Research3

3. SDGs-related Business Trends in Japanand Internationally6

4. Awareness on SDGs and Changes in the Stateof Initiatives as Seen in Yearly Comparisons

9

5. SDGs-related Initiatives by Companies and Organisations
from the Perspectives of Employment and Labour:
Spotlight on Promotion of Gender Equality
as a Focus of Diversity Management16

6. Conclusion

24

Annex: Interviews and Initiatives on the SDGs

27

Source: United Nations Information Centre

1. Introduction

We have entered the fourth year of implementing the
Sustainable Development Goals (SDGs), which came into
force on 1 January 2016. In 2019, the first meeting at thelevel of Heads of State and Government will take placeraising expectations for the further penetration of theSDGs into various aspects of our societies. The SDGs layout a globally agreed upon vision for the future intended
to build better lives for all people. Proactive contributions
are expected not only from governments, but all
stakeholder groups, including companies, civil society
organisations and academia.
Since 2015, the Global Compact Network Japan (GCNJ) andthe Institute for Global Environmental Strategies (IGES) haveconducted questionnaire surveys on SDGs-related initiatives
targeting GCNJ member companies and organisations 1.
From 2016, results have been compiled into reports anddisseminated widely. This report is the third in this series.
Past reports presented the results of a survey on the views
held by GCNJ member companies and organisations. The
first in this series "SDGs and Business in Practice - Early
Actions by Japanese Private Companies"2 published in2017 presented the state of SDGs-related initiatives one
year after the SDGs had been adopted in September
2015, along with leading example initiatives. At the time,
only those employees responsible for CSR and managers
cognizant of international trends were familiar with theSDGs. In fact, there was merely a handful of companies
that had begun actions contributing to the SDGs via theircore business, rather than exclusively in social contribution
activities. Low levels of awareness in society andunderstanding within companies were major challenges toengaging in SDGs-related initiatives.
Last year’s “SDGs and Business for the Future”3 continued
the surveys of GCNJ members, reporting on advances
made over a one-year period. The report revealed thatwhile many companies had a stronger intention to engage
in the SDGs, they remained at the stage of searching forways to do so. The report examined concrete approaches
for engaging SDGs through core businesses from twodimensions: "organisations" that look at establishmentof sustainability within management organisations and"corporate activities" that aim to address social issues.

These two reports garnered considerable attention. For
instance, they were introduced and mentioned in a varietyof contexts, such as the UN Global Compact’s (UNGC)International Yearbook and a government environmental
white paper. Furthermore, many requests to further explain
how to go about implementing example initiatives and SDGs
as core business were received. Based on feedback received
on the usefulness of these reports in understanding awarenesson SDGs among companies and organisations, as well aschanges in initiatives over time, we have continued the surveys
based on the cooperation of GCNJ member companies andorganisations, and compiled results into this report.
In this report, we have placed our focus on theimplementation of SDGs in the areas of employment andlabour, and on the commitment of leaders and management.
It is common knowledge that the SDGs cover a wide rangeof areas, and companies are increasingly expected toprovide solutions to societal challenges. For this reason, theprevious report examined contributions via core businessactivities. However, initiatives targeting workers andpeople involved in companies and organisations are also
required to address Goal 5 (Gender Equality and Women’s
Empowerment), Goal 8 (Decent Work and Economic
Growth) and Goal 10 (Reduced Inequalities).
The management method most strongly related to thesegoals is diversity management. Diversity management refers
to “management that utilises diverse human resources in a
way that provides opportunities for maximum demonstrationof abilities to generate innovations and create value”4. The
promotion of diversity management requires the provisionof environments in which diverse workers can choose
from diverse ways of working according to their respective
situations. As such, along with the acquisition of humanresources, work-style reform is also essential. In Japan,
promoting women’s advancement is an important key toimplementing diversity management and work-style reform.
Accordingly, this report will examine the current state andissues of diversity management and work-style reformin companies from the perspective of promoting genderequality, an area in which Japan lags strikingly behind when
considered in an international context.

O rganisations include local governments, universities, general incorporated associations, public interest incorporated foundations and non-profit organisations.
GCNJ/IGES (2017), “SDGs and Business in Practice—Early Actions by Japanese Private Companies”, http://ungcjn.org/sdgs/pdf/elements_file_2966.pdf.
The English edition was released in June 2017 and is available at the following URL: http://ungcjn.org/sdgs/pdf/elements_file_3032.pdf.
3
GCNJ/IGES (2018), “SDGs and Business for the Future”, http://ungcjn.org/sdgs/pdf/elements_file_4001.pdf. The English edition was released in June 2018
and is available at the following URL: http://ungcjn.org/sdgs/pdf/elements_file_4001_en.pdf.
4Ministry of Economy, Trade and Industry (2015) “Diversity Management Strategy, II. Towards Diversity Management for value creation”, http://www.meti.
go.jp/policy/economy/jinzai/diversity/kigyo100sen/entry/pdf/h27betten.pdf
12

1

1. Introduction

Are challenges addressed in the context of women’s
advancement, diversity and work-style reform consistent
with the ideals of the SDGs? Are there any inconsistencies?
How far have Japanese companies and organisations come,and what challenges remain? Precisely how aware aremanagement and human resources staff of these issues andtheir relation to the SDGs? Unraveling these questions is thefirst step in contributing to achievement of the SDGs in theareas of employment and labour.
Concerning the commitment of company leaders andmanagement, the SDG Compass states, “Active leadershipby the CEO and senior managers is key to the success ofany type of significant organisational change”.5 Moreover,our 2017 report points out that “It is also important
for top management not to simply limit their scope ofactivities to mere mentions in CSR reports (including

integrated reports), but rather look at the issue from a
mid- and long-term perspective and exhibit the leadershipto launch major directions. These must be communicatedto employees in their own words, illustrating a sense of
purpose and recognition of important issues.”
Based on the above recognition, this year we conductedinterviews targeting top and senior management, which arecompiled into a series of articles. Additionally, the full text of
the “2030 Transform through SDGs - interview with 10 top
executives of companies -”, a series of interviews of ten
top executives in GCNJ member companies conducted by
the Asahi Shimbun newspaper, is also included.6 We hope
you take this opportunity to see for yourself what the top
and senior management in companies and organisations
actively engaged in initiatives on the SDGs have to say.

＜Column 1: Three components of SDGs-based management＞
In the practice of SDGs-based management, companies and organisations are required to engage in three main
components: compliance, organisational management and corporate activities. The first component, compliance,
includes adherence to rules and regulations on competition, environment, employment, labour, manufacturing andtaxation etc. In recent years, inspection fraud and long working hours have become problems in Japanese society.
Further, payment of tax provides funds for provision of vital safety nets and infrastructure in society, as well as theredistribution of wealth, which cannot be provided by individual companies or organisations. Thus, paying taxes is
an important act that contributes indirectly to the SDGs. Regardless of how much effort is put into contributing to
the achievement of the SDGs through core business, companies and orgnisations that violate rules in the area ofcompliance are not fulfilling the social responsibility expected of them.
The second component, organisational management, includes the aspects of employment/labour and environment.
Acquisition of diverse human resources, promotion of gender equality and flexible work styles fall under the aspectof employment and labour. Likewise, pollution prevention, environmental management, green procurement, energy
conservation and CO2 emissions control fall
Organisational management
Corporate activities
under the aspect of environment, an area inwhich Japanese companies and organisations
have focused their efforts to date.

<Employment & labour>
Acquiring diverse human resources, flexible
work styles, promotion of gender equality, etc.

＜Core business＞
Refer to “SDGs andBusiness for the Future”

The third component, corporate activities,＜Environment>＜Social contribution＞
Pollution prevention, environmental
Donations, volunteer work,
includes contributions based on integrating
management, green procurement, energy
collaboration with nonthe SDGs into core business, as well as social
conservation, CO2 emissions control, etc.
profit organisations, etc.
contributions such as donations and volunteer
work that contribute to the SDGs. The former,
Complianceintegration of SDGs into core business, wasexamined in last year’s report, “SDGs andCompetition, environment, employment, labour, manufacturing, taxation, etc.
Business for the Future”. Whenever possible,
an “outside-in” perspective should be adopted when deliberating on goals and initiatives using the social issues laidout in the SDGs as starting points. The latter, social contributions, involve a wide variety of activities such as support
for disaster recovery and collaboration with civil society organisations. In addition to creating sustainable communities
and supporting the socially-disadvantaged, these activities are also linked to company branding, stronger networks andhuman resource development. Hence, such activities are important both from the perspective of the SDGs and for theirrole in the strategy of each company or organisation. Chapter 5 of this report examines the aspects of employment andlabour, mainly within the contexts of organisational management and compliance.

The SDG Compass is a guide for corporate action on the SDGs, prepared by GRI (Global Reporting Initiative), UNGC and WBCSD, and is used as areference by many companies engaged in addressing the SDGs. The Japanese version was released in March 2016 by GCNJ and IGES, and is available atthe following URL: https://sdgcompass.org/wp-content/uploads/2016/04/SDG_Compass_Japanese.pdf.
6
These articles were printed in the newspaper from August to September 2018. Subsequently, they were published in English on “The Asahi Shimbun Asia
& Japan Watch” English website. In September, both the Japanese and English versions were published together as a booklet entitled, “2030 Transformthrough SDGs - interview with 10 top executives of companies -”.
5

2

２．Overview of ResearchThis report is based on a literature review of major reports
put out by the United Nations and business networks, aswell as two types of questionnaire surveys and two typesof interview-based surveys.
While the literature review served as a basis for the entire
report, it was particularly utilised for Chapter 3’s summaryof the latest trends in implementation of the SDGs, bothin Japan and internationally. This chapter mainly discusses
activities of UNGC and the High-level Political Forum(HLPF) which were designed to raise momentum throughannouncements on progress in SDG implementation
around the world and sharing of good practices. It also
discusses trends in related ministries and agencies ofnational governments, including the Japanese government,
industrial sectors and local governments.
The first type of questionnaire involved fact-finding
research that has been continued yearly since 2015 on
the implementation status of SDGs-related initiatives
using on-line questionnaires for GCNJ members. This
report covers the fourth survey targeting GCNJ members,
comprised of 287 companies and organisations (as of 1
September 2018), with questions concerning awarenessof the SDGs, the state of actions, challenges faced by
SDGs-related initiatives and future directions. The survey

was conducted between 1 September and 22 October
2018 and garnered responses from 180 companies andorganisations (62.7% response rate). In order to follow
changes over time, surveys were designed wheneverpossible to contain identical questions. Further, newquestion items were added on the state of initiatives on
the SDGs-related topics of CSR procurement, human rights
due diligence, diversity and work-style reform. Chapter
4 contains a discussion of the principal results of thisquestionnaire survey.
In addition, between November 2018 and January
2019, seven interviews were conducted with top andsenior management that indicated a willingness to beinterviewed. Whenever possible, consideration was given
to the size of companies/organisations and industry typein order to avoid any imbalance.
Approximately 80% of GCNJ members that responded
to the survey are classified as large corporations, with
67% posting gross sales of over JPY 100 billion (Figure 1),
and 75% engaging in global or regional markets (Figure2). Accordingly, it is necessary to bear in mind whenreviewing survey results that the proportion of small andmedium-sized enterprises is low.

Sales volume (JPY)

Business targets

5%

10%

7%
9%

18%
9%

67%

Less than 2.5 bil.

2.5 bil. - less than 25 bil.

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

Not applicable

Figure 1: Sales of respondent companies/organisations(n=180)3International-Global

3%International-Regional
72%

Domestic-National
Domestic-Local

Figure 2: Markets of respondent companies/
organisations (n=180)

２．Overview of Research

The other type of questionnaire and the interviews wereconducted with the aim of examining actions on the
SDGs in the areas of employment and labour, as laid out
in Chapter 5. The questionnaire survey asked questions
about work-style reform, and gender equality — thegreatest challenge in diversity management. In regards togender equality in companies, UNGC and UNIFEM (nowUN Women) formulated the Women’s Empowerment
Principles (WEPs)7 in 2013 to indicate seven fundamental
rules for actively engaging in the economic empowermentof women (Table 1). The WEPs Gender Gap Analysis
Tool (WEPs tool) provides a method of examining thestate of actions by companies in accordance with theseprinciples. 8 This tool is useful in raising awareness incompanies on the ideals set forth in the principles, aswell as increasing awareness on current conditions incompanies and challenges faced. Accordingly, our survey
utilised the question items of the WEPs tool to study
the state of engagement of Japanese companies andorganisations in promoting gender equality. Subjects
were 50 companies/organisations that participated in
the GCNJ sub-committee on WEPs. The survey was
conducted between 1 October and 2 November 2018,with responses received from 15 companies and one
organisation (of these, two companies/organisations had
under 300 employees).
Interviews were conducted with representatives of sevencompanies/organisations that responded to the WEPs
tool survey, focused on those that indicated a willingness
to be interviewed. Interviews covered not only the topics
of gender equality, diversity management and workstyle reform, but also any realisations that companies/
organisations arrived at when responding to the WEPs
tool and any sense of incompatibility in the Japanesecontext. The cooperation of UN Women, which hosts the
WEPs Secretariat, was integral to the implementation ofthese two types of surveys.
Because the targets of the questionnaire survey
utilising the WEPs tool were companies/organisations

participating in the WEPs sub-committee, their interest in
and awareness of the issue of gender equality was high.
Likewise, for the most part, the initiatives of companies
and organisations that cooperated with interviews wereadvanced. As such, the results of this research do notbroadly reflect the state of initiatives on gender quality
in Japanese companies and organisations. Rather, theyhighlight the present conditions and initiatives of a portionof companies and organisations participating in the WEPs
sub-committee, which are comparatively advanced inJapan.
In addition, the WEPs tool is used by companies allover the world, not limited to Japanese companies andorganisations. Thus, the companies and organisations that
responded to our survey had to interpret question items in
the Japanese context. Due to differences in interpretation,
in some cases responses differed even when similar
initiatives were being carried out. In these instances, data
was corrected. Further, the WEPs tool encompasses
initiatives related to women’s empowerment and reveals
related challenges. However, the tool also includes many
useful questions relevant to improving the work stylesof other human resources (persons with disablities andforeign workers) and promoting diversity.
The term “empowerment” used in this report refers to“processes designed to expand opportunities in people’s
lives and to instill in people the power to lead their lives
9
making choices based on their own will”. Empowerment
is indispensable to achieving gender equality, and is aterm used often around the world. Meanwhile, the term
“women’s advancement” has become a widely-used termin Japan. It differs from “empowerment” as it is used
more broadly to include “women’s empowerment” and“initiatives to promote gender equality in companies”.
Strictly speaking, the term “women’s advancement” isonly one outcome of women’s economic empowerment,
and therefore it should be noted that this term differs inmeaning from “empowerment” and “gender equality”.

Table 1: Women's Empowerment Principles (WEPs)
Principle 1: E stablish high-level corporate leadership for gender equality
Principle 2: T reat all women and men fairly at work — respect and support human rights and non-discrimination
Principle 3: Ensure health, safety and well-being of all women and men workers
Principle 4: Promote education, training and professional development for womenPrinciple 5: Implement enterprise development, supply chain and marketing practices that empower womenPrinciple 6: Promote equality through community initiatives and advocacy
Principle 7: Measure and publicly report on progress to achieve gender equality

 EPs Secretariat website, https://www.empowerwomen.org/en/weps/about; UN Women Field Office Japan website Women’s Empowerment Principles
W(WEPs), http://japan.unwomen.org/ja/news-and-events/in-focus/weps
The WEPs tool can be used for free on-line (https://weps-gapanalysis.org/). Responses to questions are calculated into a score on the level of awarenessand progress on WEPs in a company/organisation, ranging from 0 to 100. This completely confidential tool can be used over and over again to confirm
progress. A Japanese translation of question items was created by Prof. Sachiyo Onishi of the Global Compact Research Center of Ritsumeikan University’s
School of Law. http://www.ungcjn.org/gc/initiative/detail.php?id=2309Otekomachi website (2018), in remarks by Asako Osaki in an article entitled, “What we must do to break the ‘spell’ that binds women,”https://otekomachi.yomiuri.co.jp/news/20180726-OKT8T91483/.
7

8

4

２．Overview of Research<Column 2: The benefits for companies in promoting women’s advancement>10
In companies where women are successful, the perspective of women, who are often more sensitive to the needsof consumers, is reflected on product development and sales strategies, allowing companies to appropriately
respond to market needs. The ratio of women in charge of purchasing decisions for household expenditures isquite high. Some studies have shown this rate to be as high as 70% in Japan and 60% globally. Moreover, studies
have revealed a 20% reduced risk of business failure in companies with successful women executives. According
to a US study, management indicators such as ROS (return on sales), ROIC (return on invested capital) and ROE(return on equity) tend to be better in companies with over three women executives, compared to companies
without any women executives. When differing viewpoints, not only those of men, are involved in decision-making,risk management for the company overall is enhanced and adaptability to change increases. In this manner, thepromotion of women’s advancement can bring about considerable benefits for companies.

105

 ased on remarks by Riwa Sakamoto of the Ministry of Economy, Trade and Industry’s Economic and Social Policy Office in “Foundational Course on
B
Analytics for Women” (Accenture, “What merits would promotion of women’s advancement bring to corporate management? Learning from research andcase studies”), https://www.accenture.com/jp-ja/data-scientist-training-for-women-part4.

3．SDGs-related Business Trends in Japan andInternationally
3.1 International Trends
A variety of developments were seen in SDGs-related
activities around the world in 2018. Here we will provide
an overview of international trends involving actions toachieve the SDGs by companies, focusing on activities inthe High-level Political Forum (HLPF), a forum for follow-up
and review of SDG implementation, and the UNGC.
Just prior to the HLPF held in July each year, the Germanybased Bertelsann Foundation and the Sustainable
Development Solutions Network (SDSN) released the “SDG
Index and Dashboards Report”, which analyses countries’
performance on the SDGs.11 In the 2018 edition, Japan fell
from 11th to 15th in country rankings. Japan was criticisedin particular for its poor progress in the areas of Goal 5(Gender Equality and Women’s Empowerment), Goal 13(Climate Action), Goal 14 (Oceans and Marine Resources)and Goal 15 (Life on Land). The report concludes thateven the three top-ranked nations of Sweden, Denmarkand Finland will not achieve all the goals by the year
2030, particularly Goal 12 (Sustainable Consumption and
Production) and Goal 13. Companies cannot prosper ina world of increasing poverty, inequality, squalid working
conditions and environmental pollution. Companies mustalso make the initiatives of all countries to achieve the2030 Agenda and 17 SDGs a matter of utmost concern.
One special event held during the HLPF was the 3rd SDGs
Business Forum, co-organised by UNGC, the International
Chamber of Commerce (ICC) and the United Nations
Department of Economic and Social Affairs (UNDESA).
This forum aims to provide a multi-stakeholder platform
to support partnerships in corporate activities designed
to realise the SDGs, and has been held annually since2016. Participants at the most recent forum repeatedly
brought up the following points: the need for concrete
reports and checks on progress by businesses as
implementation of the SDGs has entered its third year, therecognition that although progress has been made, it isinsufficient to achieve the SDGs by 2030, and the need todetermine how to promote implementation of the SDGs
in large corporations, as well as small- and medium-sizedenterprises.12

Furthermore, the first SDG Roadmap for the chemical
sector was introduced at the forum. 13 It specifies
opportunities for transformative impacts in the fiveareas of food, water, people and heath, energy andinfrastructure, and cities, and is expected to promotecollaboration, including that with other sectors. This
roadmap was prepared using the guidelines for SDG
Sector Roadmaps released by the World Business Council
for Sustainable Development (WBCSD) in April 2018.
In 2018, multiple guidances and case examples werereleased from UNGC on topics including human rights,
peace and prosperity, decent work, and reporting.14 Someof these tools were written based on discussions in UNGCsponsored action platforms in which diverse stakeholders
participate.15 Trends such as these foreshadow further
advancements in business collaboration in various
sectors around the world and progress in partnerships on
specified topics.

3.2 Trends in Japan
Next, trends in Japan related to the SDGs are examined,
beginning with the activities of the Japanese government.
In its December 2018 meeting, the SDGs Promotion
Headquarters, led by the Prime Minister, made decisions
on an “SDGs Action Plan 2019” and the recipients of the“2nd Japan SDGs Award”. The update of the action plan
was the second since its original formulation in December
2017. One of the three pillars of the plan, “Promotionof Society 5.0 that corresponds to SDGs”, is specified
to strengthen SDGs-related initiatives not only in large
corporations and business organisations, but also in smalland medium-sized enterprises. The Japan Food Ecology
Center was chosen for the Chief’s (Prime Minister’s)Award of the 2nd Japan SDGs Awards.16 Founded upon
the corporate philosophy, “adding new value to food loss”,
this company developed a liquid fermented feed (liquid
eco-feed) that effectively utilises food waste, based oncooperation among industry, academia and government.
The company was recognised for achieving a new
business model that unites the two industries of waste
management and feed manufacture.17

Sustainable Development Solutions Network & Bertelsmann Stiftung (2018) “2018 SDG Index and Dashboards” http://sdgindex.org/reports/2018/.
Based on memos written by one of the authors, IGES Senior Researcher Yoshida, who participated in the said forum.
WBCSD (2018) “Chemical Sector SDG Roadmap” https://docs.wbcsd.org/2018/07/Chemical_Sector_SDG_Roadmap.pdf.
14
Refer to “Explore our library” on the UNGC website for details. https://www.unglobalcompact.org/library
15
Refer to “Action Platforms” on the UNGC website for details. https://www.unglobalcompact.org/sdgs/action-platforms
16
The Japan Food Ecology Center was introduced in last year’s report, “SDGs and Business for the Future” and in the GCNJ/IGES Interview Series. See thefollowing for the interview series article: http://www.ungcjn.org/sdgs/archive/1802_fec.html.
17
Ministry of Foreign Affairs website, “Japan SDGs Awards” https://www.mofa.go.jp/mofaj/gaiko/oda/sdgs/award/index.html
11
12
13

6

3．SDGs-related Business Trends in Japan and InternationallyDue to the importance of Science, Technology andInnovation (STI) in the implementation of the SDGs
Action Plan and the Japan Business Federation’s Society
5.0, the Cabinet Office established the “STI for SDGs
Task Force” in January 2018, comprised of officials fromrelevant government ministries and agencies. The task
force’s present objectives include, 1) formulation of the“STI for SDGs Roadmap”, 2) formation of a platform tofacilitate the creation of Japan’s “Society 5.0” modeland its international dissemination, and 3) formulationof the “Integrated Innovation Strategy” (SDGs-relatedareas). Deliberations are underway on these objectives.18
Likewise, in June 2018, the Cabinet Office selected 29
cities that proposed outstanding local government-led
initiatives to achieve the SDGs as “SDGs Future Cities”.
Additionally, ten particularly pioneering projects wereselected from the initiatives of the 29 cities to serve as“SDGs Models of Local Governments”, with a maximum of
JPY 40 million in subsidies to be granted to these model
projects.19
At the Ministry of the Environment, the “Sustainable
Development Goals (SDGs) Utilization Guide” wasreleased in June 2018 targeting all companies, including
small- and medium-sized enterprises. 20 Furthermore,
stakeholders’ meetings for information-sharing on
leading SDGs-related initiatives from diverse standpoints
have been continually held since 2016 to promote
implementation of the environmental aspects of the SDGs.
Additionally, the Fifth Basic Environment Plan approvedby the Cabinet in April 2018, proposed the conceptof a “circulating and ecological economy” to promote
implementation of the SDGs in regional areas of Japan.21
In order to promote implementation of the SDGs invarious regions, the government’s draft budget for fiscal
year 2019 includes the formation of a platform to support
the creation of a circulating and ecological economy andfunds for projects to create a circulating and ecologicaleconomy.
Correspondingly, the Ministry of Economy, Tradeand Industry established the SDG Management/ESG
Investment Study Group in November 2018 aimed atfurther backing companies that continually enhancetheir corporate value and promoting a cycle by whichinvestments in these companies generate mid- and long-term profits.22 In December, the Ministry of Agriculture,
Forestry and Fisheries that regulates the food industry
set up a special page on its website that shows the links
between the SDGs and the food industry.23
The year 2018 brought about remarkable developments
related to the SDGs in finance, an area key toimplementing the SDGs. In June, the Financial Services
Agency organised its positions on the SDGs and financial
administration, clarifying its stance on promoting the
SDGs.24 The Government Pension Investment Fund (GPIF),
called the “world’s largest institutional investor”, adopted
two global environment stock indices in September,and announced the start of prioritised investments incompanies engaged in reducing greenhouse gases.25 In
March, the Japanese Bankers Association (JBA) decreed
its SDGs promotion framework and major initiatives,
incorporating SDGs-related issues into its Code of
Conduct. Further, JBA expressed its intent to endorse
the Task Force on Climate-related Financial Disclosures(TCFD) in November. In addition, initiatives related to
the SDGs progressed at the organisational level in theJapan Securities Dealers Association, the Life Insurance
Association of Japan, and the General Insurance
Association of Japan, as well as at the corporate level inResona Holdings and the Shiga Bank.
Trends in local government worthy of special mention
include the “SDGs All Japan Meeting 2019”, where 93
participating local governments adopted a declaration on
the “SDGs Japan Model”.
As evident in the “Interview with 10 top executives ofcompanies” series of the Asahi Shimbun newspaper
reprinted in the annex to this report, the leaders of major
corporations have begun to discuss the importance of
the SDGs in mainstream media, a major development.
Likewise, Dentsu created an “SDGs Communication
Guide”, compiling points to be understood and observedin advertising and promotional activities related to the
SDGs. Furthermore, “FRaU” was the first major women’smagazine in Japan to feature the SDGs in an entire
issue.26 As matters now stand, the level of awareness ofthe general public on the SDGs is not high.27 However,expectations are on the rise for the SDGs to be further
integrated into society due to increasing coverage of SDGs

 eference: Ministry of Education, Culture, Sports, Science and Technology (2018), “2018 Science and Technology White Paper” http://www.mext.go.jp/b_Rmenu/hakusho/html/hpaa201801/detail/1405921.htm
19
Cabinet Office website, “Selection of SDGs Model Cities and SDGs Models of Local Governments” http://www.mext.go.jp/b_menu/hakusho/html/
hpaa201801/detail/1405921.htm. Selection of SDGs Model Cities and SDGs Models of Local Governments will also to take place in 2019.
20
Ministry of the Environment website, “Sustainable Development Goals (SDGs) Utilization Guide” http://www.env.go.jp/policy/sdgs/index.html
21
The Fifth Basic Environment Plan establishes the image of a sustainable society aimed at a circulating and ecological economy (environment and lifebased civilisation). The “circulating and ecological society” is designated as an approach to realising this ideal. Regions are to make maximum use of
their regional resources according to their respective characteristics to form self-reliant decentralised societies, where neighboring regions mutuallycomplement and support each other in relation to resources.
22
Ministry of Economy, Trade and Industry website, “SDG Management/ESG Investment Study Group” http://www.meti.go.jp/shingikai/economy/sdgs_esg/
index.html
23
Ministry of Agriculture, Forestry and Fisheries website, “SDGs x Food Industry” http://www.maff.go.jp/j/shokusan/sdgs/.
24
The Financial Affairs agency published materials reflecting the latest trends on its website in December 2018, https://www.fsa.go.jp/policy/sdgs/
FSAStrategyforSDGs_2018.html
25
Government Pension Investment Fund (GPIF) (2018), “Selected global environment stock indices,” https://www.gpif.go.jp/topics/グローバル環境株式指数を選定しました.pdf. Moreover, GPIF adopted ESG indices in 2017, two comprehensive and one on women’s advancement, and has put them into use.
26
Kondansha “FRaU” official site https://frau.tokyo/_ct/17235973
27
For instance, awareness surveys targeting the general public performed by the Asahi Shimbun and Dentsu showed that the level of recognition of theSDGs remained around 15%. https://miraimedia.asahi.com/sdgs2030/sdgs_survey03/ http://www.dentsu.co.jp/news/release/2018/0404-009518.html
187

3．SDGs-related Business Trends in Japan and Internationallyin the media, combined with school education aimed at
nurturing the future creators of sustainable societies.
Meanwhile, other issues arose in 2018 related to the
SDGs. It was discovered that ministries, agencies andlocal governments had inflated figures for the employment
rate of persons with disablities. This development isincompatible with SDGs Target 8.5, to “by 2030 achieve
full and productive employment and decent work for all
women and men, including for young people and persons
with disabilities, and equal pay for work of equal value”.
The “most vulnerable”, not to be left behind according to
the 2030 Agenda, includes persons with disablities, aswell as foreign nationals such as immigrants and refugees.
They require special consideration, particularly in theareas of capacity development and employment. Likewise,
Japan ranked 110th out of 149 countries surveyed in the

Global Gender Gap Index for 2018, released every yearby the World Economic Forum (WEF), the lowest ranking
among G7 nations. It is imperative that Japan create
working environments where all people, including themost vulnerable and women, can engage in fulfilling work.
Based on the above explanations, while newdevelopments such as the formulation of sector roadmaps
in the SDGs are evident around the world, initiatives inJapan are targeting areas of society hitherto unfamiliar
with the SDGs, including local governments, small- andmedium-sized enterprises, and the general public. Further
progress in the building of sustainable societies from theground up, involving diverse stakeholder groups, is eagerly
anticipated. In order to “leave no one behind” in thisendeavour, efforts in the inclusion of vulnerable groups arealso essential.

84．Awareness on SDGs and Changes in the Stateof Initiatives as Seen in Yearly ComparisonsThis chapter will take a look at yearly comparisons ofawareness on the SDGs, the state of initiatives and otherissues, based on the questionnaire survey targeting GCNJ
member companies and organisations. For new response
options in question items, distinctions are made by the
number of asterisks (*) placed next to the response (*oneasterisk for 2016 new response options, **two asterisks
for 2017 new response options, and ***three asterisks for2018 new response options).

Table 2: Number of responses and response rate forquestionnaire survey
2015

2016

2017

2018

Number of responses

134

147

163

180

Response rate

64.1％

63.1％

64.2％

62.7％

4.1 Awareness on SDGs
Firstly, let us take a look at awareness on the SDGs. The
most striking development over the past year is the increase
in awareness among top management — rising from 36%
the previous year to 59% in the current study. Meanwhile,
although awareness among middle management andemployees remains under 20%, it has approximately doubled
compared to the previous year (Table 3). One major reason
behind this increase is the stance taken by the businesssector, including the Japan Business Federation’s revision of its
Charter of Corporate Behavior in November 2017 and creationof a website designed to disseminate information on initiatives
related to the SDGs. In fact, a CSR officer from one company
reported that the company leader’s executive position in
the Japan Business Federation was a strong motivator for
initiatives on the SDGs. Additionally, as mentioned in Chapter
3, awareness on the SDGs has increasingly infiltrated society,a major factor in the overall rising level of awareness.
Of course, efforts to raise awareness within organisations
are also paramount. Initiatives are increasing on the whole at
all levels of organisations via “newsletters”, “messages fromthe top”, “orientatin for new hires”, “management training”
and “management policy explanatory meetings” that target
middle management and employees whose awareness isstill lagging. Free responses to the “other” option of related
questions included comments on utilising employee study
and training sessions, distribution of SDG badges, CSR/
sustainability reports and integrated reports (Table 4).
28

9

The questionnaire also asked about the SDGs-related
initiatives of other Japanese or international companies
that served as references. Sumitomo Chemical’s
Sustainable Tree programme received many responses as
an initiative that raised awareness among employees.28
The rising awareness within organisations overall and theupswing in initiatives is related to the increasing trend
to view the SDGs through the lens of business. The ratioof companies/organisations responding that the SDGs
are viewed as ways to “increase corporate value onsustainability”, “new business opportunities” and “ncrease
company’s value to society”, all increased. Meanwhile, 0%
responded that SDGs are “not important”, with the numberof respondents that selected “still seeking clear objective”
dropping to 9%. Although the ways in which the SDGs arebeing utilised by companies and organisations might differ,almost all companies/organisations that responded to thequestionnaire survey view the SDGs as important (Table 5).
Awareness on the SDGs is also evident in questions
concerning the sectors that wield influence on the SDGs.
In contrast to 60% of responses that viewed the influenceof “government” as great in 2015, the year the SDGs wereadopted, only 24% felt the same in 2018. On the other
hand, respondents increasingly selected “companies”,“stockholders”, “clients/consumers” and “all sectors” inresponse to this question, revealing a rising awareness thatcompanies and organisations are also important actors inaddressing the SDGs, not just government (Table 6).

Table 3: Level of awareness in organisations
Q. Please select the applicable status of SDGs awareness in yourcompany/organisation (multiple responses).

2015

2016

2017

2018

Well known by CSR staff

61%

84%

86%

84%

Well known by top
management

20%

28%

36%

59%

Well known by middle
management

4%

5%

9%

18%

Well known among
employees**

―

―

8%

17%

Well known acrossaffiliated companies andother stakeholders*

―

3%

2%

4%

Do not know

15%

12%

7%

3%

 umitomo Chemical website, “Our Efforts to Help All Officers and Employees Achieve Their Goals - Our Sustainable Tree”, https://www.sumitomo-chem.
Sco.jp/sustainability/sdgs/sustainabletree/

4．Awareness on SDGs and Changes in the State of Initiatives as Seen in Yearly Comparisons

Table 4: Activities to raise awareness on SDGs

Table 5: Awareness on SDGs

Q. What activities are in place to raise awareness on the SDGs inyour company/organisation? (multiple responses)

2016

2017

2018

Training(including e-learning)

24%

31%

39%

Communication on website

24%

31%

44%

Communication in company
newsletters (print medium)

28%

40%

52%

Message from the top

27%

40%

56%

Launch of a specificorganisation

1%

2%

8%

Orientation for new hires**

―

23%

36%

Management training**

―

15%

24%

Linked to performance
reviews**

―

1%

2%

Inclusion in corporate charter/
code of conduct**

―

4%

5%

Mentions at management
policy explanatory meetings **

―

17%

32%

Distribution of promotional
items, like SDG badges, toemployees***

―

―

27%

Promotional posters, etc.***

―

―

10%

Other

20%

21%

24%

Nothing in particular

31%

15%

4%

Q. How are the SDGs viewed in your company/organisation?
(multiple responses)

2016

2017

2018

Increase corporate value
on sustainability

79%

77%

82%

Strengthen multistakeholder partnerships

61%

55%

59%

New business opportunities

60%

58%

69%

Stabilise society andmarkets

57%

52%

58%

Increase company’s value
to society**

―

74%

80%

Recognise its importance,but still seeking clear
objective**

―

20%

9%

Respond to investors**

―

29%

27%

Not important

5%

1%

0%

Other

5%

4%

5%

Table 6: Sectors with the greatest impact on SDGs
Q. What sector(s) have the greatest impact on promotion of the SDGs?

2015

2016

2017

2018

Companies

10%

12%

13%

19%

Stockholders and investors

0%

7%

12%

12%

Clients and consumers

4%

16%

17%

16%

Government and governmental groups(including JICA)
Note: Included local governments
through 2016

58%

41%

35%

24%

(Domestic) Local governments**

―

―

1%

1%

NGOs/non-profits

5%

3%

1%

1%

Academia

1%

0%

0%

1%

UN and international organisations***

―

―

―

3%

All sectors have equal influence

16%

15%

15%

21%

Other (please specify)

0%

1%

1%

2%

Not sure

5%

5%

4%

1%

10

4．Awareness on SDGs and Changes in the State of Initiatives as Seen in Yearly Comparisons<Column 3: Awareness on SDGs among owners of small- and medium-sized enterprises>
In December 2018, the Kanto Bureau of Economy, Trade and Industry and the Japan Industrial Location Centerreleased a survey on the level of awareness and present situation surrounding the SDGs in small- and medium-sizedenterprises (SMEs).29 This was the first survey conducted in Japan targeting the presidents of SMEs. To a question
on awareness of the SDGs, 84.2% responded “1) I do
not know about the SDGs at all”, and 8.0% responded,
Level of awareness and response to the SDGs among“2) I’ve heard of the SDGs, but do not know theowners of small- and medium-sized enterprises
details”. That is, less than 10% of owners of SMEs
n=500
possess an understanding of the SDGs. Furthermore,
84.2％ (421)1) I do not know about the SDGs at all
in a question asking about “impressions of the SDGs”
posed to the 490 respondents who selected 1), 2)
2) I’ve heard of the SDGs, but do not
8.0％ (40)or “3) I know the details of the SDGs, but am notknow the details
considering any response”, 43.9% of companies3) I know the details of the SDGs, but
5.8％ (29)
responded, “(Adopted by the UN/Major corporations
am not considering any response
should respond) not relevant to my company”,
4) Currently considering response/and “low level of priority”, while 52.7% responded,
0.8％ (4)action on the SDGs
“understand the need to engage, but do not know5) C urrently engaged in response/
how/have insufficient resources”. Only a mere 3.5%
1.2％ (6)action on the SDGs
responded, “currently engaged in initiatives”. These
results show that to most owners of SMEs, the SDGs
remain a distant issue with a low priority level.
However, when examined regardless of awarenesson SDGs, companies already engaged in initiatives
listed by the Kanto Bureau of Economy, Tradeand Industry and the Japan Industrial Location
Center as those that contribute to social issues
related to the SDGs, numbered just under 50%.
This figure points to the need to make companies
aware of the relationship between their existing
initiatives and the SDGs (social issues). On thispoint, it is essential to inform SMEs, which arefirmly rooted in their communities, that getting
involved in the goals and strategies of the national
and local governments on the SDGs could serveas their own contributions.

Adopted by the UN,
not relevant to my company

23.1%
38.4%
12.7%

14.3%

(Red arrow: understanding onneed for initiatives, Blue arrow:irrelevance/low priority)

Low level of priority for social
contributions/addressing
social issues compared tobusiness activities
Nothing new, my company
is currently engaged
Understand the need to engage,
but do not know how
Understand the need to engage,
but have insuﬃcient resources

n=190
Single answer responses

Next, let us take a look at the actual state of initiatives.
In the question concerning progress on the SDG
Compass, the percentage of respondents choosing Step
1, “Understanding the SDGs” that stood at 54% in 2016
dropped to 31% in 2018, with respondents on Step 2 or
beyond totaling 69%. Most companies/organisations haveentered the implementation stage of the SDGs (Table 7).

opportunities and challenges related to the SDGs, many
positive responses were given. For example, responses
included, “incorporated into mid-term management
plan,” “recognised the need to formulate a human rights
policy”, “established stance on viewing business from thestarting point of SDGs and social issues”, “established
KPI (key performance indicator) and began to measureprogress”, and “increased development of CSV (creating
shared value) products”. Hence, it is important to notethat defining priorities is a crucial step in the process ofengaging in the SDGs that cannot be avoided.

For Step 2, “Defining priorities”, companies are required
to define opportunities and risks throughout their
entire value chains. In free responses on a question
concerning discovering initiatives linked to the next stepafter utilising the SDG Compass to evaluate businessAccordingly, among tools of interest utilised to advanceinitiatives on the SDGs, the “SDG Compass” was selected
in nearly 70% of responses in 2018. Meanwhile, responses
selecting “materials provided by GCNJ” dropped and acertain number of companies chose “the guide on the

4.2 S tate of SDGs-related initiatives:
organisation perspective

29

11

8.2%
3.5％

Major corporations should
respond, not relevant to
my company

 anto Bureau of Economy, Trade and Industry & Japan Industrial Location Center (2018), “Survey on the level of awareness and present situationK
surrounding the SDGs in small- and medium-sized enterprises (online questionnaire)”, http://www.kanto.meti.go.jp/seisaku/seichou/data/20181213sdgs_
chosa_houkoku_syosai.pdf

4．Awareness on SDGs and Changes in the State of Initiatives as Seen in Yearly ComparisonsJapan Business Federation’s Charter of Corporate Behavior”
and their “special website on SDGs”. As Japan Business
Federation members total over 1,500 Japanese companies
that are representative of Japan, the increasing number ofactors providing information to promote initiatives on the
SDGs in the business sector is a welcome trend. Additionally,in free responses to “other” in this category, multiple
responses were received on utilisation of websites andmaterials of the United Nations Information Centre and thegovernment (in particular the SDGs Promotion Headquarters
and the Ministry of Foreign Affairs) (Table 8).
In a question asking companies/organisations about themain actors promoting the SDGs, CSR divisions remained
stably high, but the proportion of responses for “CEO”,“management and planning divisions”, “new businessdevelopment” and “business division” is on the rise (Table
9). Further, in the question on frequency of discussion andevaluation of policies and strategies on CSR/SDGs in toplevel committees such as boards of directors, the totalof responses for “discusses as necessary” and “discussed
as part of normal agenda” was 48% for 2017, but roseto 70% for 2018 (Table 10). Additionally, in a question
on future initiatives, growing responses for “launch new
project to contribute to the SDGs”, “reflect on strategy andmanagement plan”, and “strengthen external collaborationand partnerships”, reveal that for the most part, progress has
been made on initiatives contributing to the SDGs throughcore business activities (namely “Integrating SDGs into Core
Business”30)(Table 11).

Table 7: State of progress on SDG Compass

Table 9: Main actors in SDGs promotional activities

Q: Which step indicates current progress on the “SDG Compass”?
(In 2016, this question on the state of progress was asked
only to 99 companies/organisations that responded they had
read the SDG Compass and were utilising it as a resource.
Accordingly, in 2016, n=99 for this question only.)

Q: Who are the main actors in SDGs promotional activities withinyour company/organisation (multiple responses)

2016

2017

2018

Step 1
Understanding the SDGs

54%

43%

31%

Step 2
Defining priorities

22%

28%

28%

Step 3
Setting goals

11%

13%

17%

Step 4 Integrating

9%

8%

12%

Step 5
Reporting and communicating

4%

8%

12%

Table 8: Tools utilised
Q. What tools is your company/organisation utilising related to
the SDGs (multiple responses)?

30

2016

2017

2018

SDG Compass

78%

63%

67%

SDGs Industry Matrix

42%

31%

29%

Poverty Footprint

7%

1%

1%

GRI Guidelines**

―

47%

52%

PwC Navigating the SDGs**

―

6%

4%

Materials provided by GCNJ
(including online materials)**

―

53%

36%

Guide on the Japan Business
Federation’s Charter of Corporate
Behavior (7th Edition)***

―

―

32%

Japan Business Federation
special website on SDGs***

―

―

22%

Other

3%

13%

18%

2016

2017

2018

CEO**

―

8%

14%

Board of directors

2%

5%

6%

Management executive committee

4%

8%

6%

Management and planning division**

―

17%

25%

CSR division

68%

77%

71%

IR division**

―

7%

5%

New business development**

―

2%

6%

Business division

7%

6%

12%

Cross-cutting projects**

―

7%

9%

Nothing in particular

12%

7%

15%

Others

7%

12%

3%

Table 10: Frequency of discussion of CSR/SDGs in toplevel committees
Q: How often does your company/organisation discuss andevaluate policies and strategies related to CSR/SDGs atmeetings of your Board of Directors (or corresponding
committee)? (multiple responses)

2017

2018

Discussed as necessary

40%

54%

Discussed as part of normal agenda

8%

16%

Not included in Board of Directors
meeting agendas

12%

13%

Discussed in subordinate
committees(option removed in 2018)17%―

Do not know

5%

6%

Other

18%

12%

In the “SDGs and Business for the Future: Actions by Private Companies in Japan” report released by GCNJ/IGES last year, “Integrating SDGs into
core business” is defined as integrating sustainability and the SDGs into corporate management strategies (incorporating in strategies and plans andimplementing as core business), in addition to the concept of “CSV (Creating Shared Value)”. The report examined methods of integrating the SDGs into
core business from the two perspectives of “organisations” and “corporate activities”. http://www.ungcjn.org/sdgs/pdf/elements_file_4001.pdf

12

4．Awareness on SDGs and Changes in the State of Initiatives as Seen in Yearly Comparisons

Table 11: Future initiatives on the SDGs
Q. What are your plans for future initiatives on the SDGs?
(multiple responses)

2017

2018

No particular plans to make changes tocurrent situation

9%

7%

Launch of a specific organisation

1%

3%

Launch new project to contribute to the SDGs

10%

18%

Philanthropic activities related to the
SDGs (donations, etc.)

4%9%Reflect on company’s priority CSR issues

63%

58%

Reflect on company’s strategy andmanagement plan

48%

59%

Strengthen external collaboration andpartnerships

34%

46%

Enhanced internal promotional activities

63%

69%

Discuss system/indicator for evaluation

18%

25%

Other

3%

3%

Do not know

3%3%

4.3 State of SDGs-related
initiatives: corporate
activities perspective
This year’s questionnaire survey included questions on
the state of initiatives over the past year pertaining to hot
topics for Japanese companies and organisations that areclosely related to the SDGs, and on the topics of diversity
management and work-style reform, covered in Chapter 5.
Of the hot topics, areas with the most positive responses (1and 2) were “diversity/women’s advancement” (154), “CSR
procurement” (137), “SDGs-related initiatives in reporting”(134) and “corruption prevention” (132). Further, areas
with the most negative responses concerning engagement(3 and 4) were the “domestic poverty issue” (140), and“labour issues for foreign workers and technical interns”(112). Moreover, for “other initiatives of focus”, initiatives
on climate change and energy were the most prominent,with many mentions of initiatives related to companies’
and organisations’ core business activities (Table 12).
One reason for the small number of companies andorganisations engaged in the issue of domestic povertyis the belief that companies have little to contribute tosolving this problem. However, half of single-parent (mainly
single-mother) families are in a state of poverty in Japan,
with the difficulty of balancing full-time work and childrearing reputed to be a major factor. The promotion ofdiverse work styles is indispensable to “diversity/women’s
advancement”, the most common areas of engagement.
In this context, companies need to actively consider
responses to human rights and poverty issues, including
labour issues for foreign workers and technical interns.

13“CSR procurement”, the next hot topic after “diversity/
women’s advancement”, and the fourth-ranking“corruption prevention” are both strongly connected tothe perspective of responding to risk in procurement andtrade, mainly overseas.
Many companies and organisations are engaged in “SDGsrelated initiatives in reporting”. Responses to a related
question on “inclusion of SDGs in information released/disclosed over the past year” reveal that inclusion has
increased across the board for all response options. In
particular, 16-25% increases are evident in the areas of“expression of issue recognition by leaders”, “reflection onpriority issues and policies”, “mapping of CSR activities”
and “connections to business”, showing that information
release and disclosure involving the SDGs is intensifying(Table 13).
Responses to a question on specific initiatives related todiversity management and work-style reform revealed
that initiatives are actively being carried out on almost all
topics. However, when initiatives moved away from theworkplace, such as the response option “promotion ofgender equality and diversity among suppliers”, companies
selecting this option (1 and 2) were limited to justunder half. In response to the “other initiatives of focus,
specifically” option, initiatives listed by multiple companies
were related to employment of persons with disablities
and support for the LGBT community. Discussion on thesepoints is included in the next chapter (Table 14).

Table 12: Hot topics related to the SDGs
Q. Of the following areas related to the SDGs, please respond on
state of initiatives over the past year from the 4 options.
(1. Actively engaged, 2. Somewhat engaged, 3. Not very
engaged, 4. Not engaged, n=180)

１

2

3

4

CSR procurement

55

82

24

19

Human rights due diligence

37

69

46

28

TCFD compliance

23

52

41

64

Plastics issue

30

43

56

51

Domestic poverty issue

12

28

64

76

Labour issues for foreign
workers and technical interns

24

44

51

61

Diversity/women’s
advancement

91

63

14

12

Corruption prevention

81

51

27

21

Regional revitalisation andlink to local government
SDGs

39

54

53

34

Technology (e.g. AI, IoT)

48

46

52

34

SDGs-related initiatives inreporting

62

72

31

15

Other initiatives of focus(specifically)

52

23

11

50

4．Awareness on SDGs and Changes in the State of Initiatives as Seen in Yearly Comparisons

Table 13: Inclusion of SDGs in information disclosure
Q. Of information released/disclosed over the past year by yourcompany/organisation (including reports and online sources),
how was SDGs-related information included?
(multiple responses)

2017

2018

Expression of issue recognition by leaders

44%

62%

Reflection on priority issues and policies

35%

51%

Mapping of CSR activities

33%

57%

Declaration of SDGs goal of focus

18%

27%

Connections to business

28%

53%

Announcement of launch of new project

5%

8%

Other (specifically)

9%

6%

No information included

28%

11%

Table 14: Initiatives in diversity management and workstyle reform
Q. Of the following areas related to diversity management andwork-style reform, please respond on state of initiatives fromthe 4 options. (1. Actively engaged, 2. Somewhat engaged, 3.
Not very engaged, 4. Not engaged, n=180)

１

2

3

4

Demonstration by leadership

101

50

23

6

Appointment of women toupper managerial positions

78

68

23

11

Support for obtaining paid
maternity leave

114

52

7

7

Support for obtaining childcare leave available to men

95

55

19

11

Support for caring/nursing
parents

98

65

12

5

Promotion of telecommuting
and remote working

77

47

35

21

Promotion of employees’
work-life balance

104

62

13

1

Working environments
free from violence andharassment (power
harassment, sexual
harassment)

116

53

8

3

Initiatives in the health, safety
and hygiene specific for
women at work and duringcommutes

47

75

43

15

Promotion of gender equalityand diversity among suppliers

24

53

64

39

Other initiatives of focus(specifically)

41

30

11

54

4.4 Issues in implementing SDGsrelated initiatives
When examining the positive side of yearly comparisons,it should be noted that in 2017, “low social recognition”
was pointed out to be a major challenge faced when
implementing the SDGs. In this year’s survey, that figure
fell to 28% (Table 15). Further, the ratio of respondents
selecting “unclear government policy, lack of government
involvement” as a challenge also fell to 9%. Over thelast two years, the environment surrounding companies
and organisations has changed, and the assumption thatexternal challenges are responsible for lack of progress inpromoting the SDGs has abated. Moreover, responses toall options have steadily dropped since 2016.
Meanwhile, the low level of understanding among middle
management and general employees, pointed out in 2017,
is something that remains a challenge for companies
despite the rising level of awareness. The challenges of“undefined method for internal deployment” and “unclear
evaluation methods such as quantitative indicators” havealso been ongoing since 2015. In particular, indicators andassessment methods to measure the level of companies’
contributions to SDGs are addressed in Chapter 3, and arerecognised as a major challenge internationally as well.
In a question on the state of plans for SDGs-related
initiatives in the future, just 15% of respondents had
implementation plans for the long-term (5-10 years) or
leading up to 2030 (Table 16).
These figures are related to the steps defined in the SDG
Compass, namely, Step 3’s “select KPIs (key performanceindicators)” and “outside-in approach to goal-setting” andStep 4’s “business integration” (incorporation of goals
and strategies on sustainability across all departments),
as well as Step 5’s “reporting and communicating”.
The level of progress to Steps 3 to 5 (Table 7) is rising,standing at 24% in 2016, 29% in 2017 and 41% in 2018.
If the challenges mentioned above can be eliminated,even more progress can be expected. Overcoming
these challenges is key to supporting companies andorganisations that understand the SDGs and have begun
to engage in easy-to-approach areas, helping them makestrides in the incorporation of the SDGs into management
and implementation.

14

4．Awareness on SDGs and Changes in the State of Initiatives as Seen in Yearly Comparisons

Table 15: Challenges in promoting SDGs
Q: What are the main challenges in working on SDGs? (multiple responses)

2015 2016 2017 2018
Low social recognition

70%

63%

47%

28%

Low understanding inside company(note: option eliminated from 2017)

62%

66%

―

―

Undefined method for internal deployment

46%

66%

52%

44%

Limited commitment by top management

26%

31%

31%

19%

Low understanding among middle management**

―

―

47%

48%

Low understanding among general employees**

―

―

40%

47%

Low understanding of directors**

―

―

20%

18%

Unclear evaluation methods such as
quantitative indicators

49%

52%

47%

43%

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

―

33%

25%

27%

Unclear government policy, lack ofgovernment involvement*

―

30%

18%

9%

Appropriate partners cannot be found

10%

10%

4%

3%

Other (specifically)

7%

5%

6%

4%

Table 16: State of initiatives in medium tolong-term plans
Q. Please indicate the status of business planning
related to the SDGs.

2016

2017

2018

There are businessplans/activities until
2030

5%

8%

10%

There are long-term
initiatives (5-10 years)

9%

5%

5%

There are mid-term
initiatives (3-5 years)

29%

41%

37%

There are short-term
initiatives (annual, 1-2
years)

23%

17%

21%

Do not know

23%

29%

27%

＜Column 4: Business Reporting on the SDGs＞
The UNGC has developed a variety of tools and guides to boost the SDGs-related
initiatives of companies and organisations. One of these is the “Business Reporting on theSDGs” series, created jointly with GRI. “Integrating the SDGs into Corporate Reporting: A
Practical Guide”,31 released in August 2018, is based on the SDG Compass. It provides
hints to companies that have gone beyond the stage of matching up the SDGs with existing
business, but are stagnating in the area of creating further initiatives.
This guide does not propose a new framework, rather reveals three steps for incorporating
the elements of SDGs into existing reporting frameworks, such as GRI standards andintegrated reporting. Step 1 involves a method of defining priority SDG targets on which
companies will report. Step 2 involves setting business objectives and selecting information
to be disclosed, as well as methods for analysing performance. Step 3 contains hints andguidance on reporting on and making improvements to SDGs performance.
For the selection of appropriate disclosures in Step 2, “An Analysis of the Goals andTargets”32 (released July 2017) of the same series provides useful information. The 232
indicators determined by the UN are designed to measure progress at the global level
and are not appropriate for measuring contributions by companies. Thus, this report takes
indicators already in use by companies, such as those of the GRI, and adjusts them to SDG
targets. It also provides business actions for each target that can serve as hints for activities.
Japanese versions of the “Practical Guide” and the “Analysis of the Goals and Targets” havebeen created by IGES and the International Development Center of Japan (IDCJ), respectively. Likewise, in the firsthalf of 2019, IGES plans to release a translation of “In Focus: Addressing Investor Needs in Business Reporting on
the SDGs”,33 another report in this series focused on communication with investors.
As the results of our survey show, many companies and organisations are struggling with methods of evaluating
and reporting on progress in addressing the SDGs. Use of these reports to bring reporting on SDGs-related
initiatives one step further ahead is highly recommended.

 his “Practical Guide” is available for download at: https://www.globalreporting.org/resourcelibrary/GRI_UNGC_Reporting-on-SDGs_Practical_Guide.pdf.
TJapanese version: https://pub.iges.or.jp/system/files/publication_documents/pub/policyreport/6705/PracticalGuide%28JP%29.pdf
“An Analysis of Goals and Targets” is available for download at: https://www.globalreporting.org/resourcelibrary/GRI_UNGC_Business-Reporting-on-SDGs_
Analysis-of-Goals-and-Targets.pdf. Japanese version: https://www.idcj.jp/sdgs/download/
33“In Focus” is available for download at: https://www.globalreporting.org/resourcelibrary/addressing-investor-needs-SDGs-reporting.pdf.
31

32

15

5．SDGs-related Initiatives by Companies andOrganisations from the Perspectives of
Employment and Labour:S potlight on Promotion of Gender Equality as a Focus ofDiversity Management

The discussion of hot topics related to the SDGs based on
survey results in the previous chapter revealed that diversity
and women’s advancement are the topics most often
being addressed. In this chapter, we will examine diversity
management linked to implementation of the SDGs in theareas of employment and labour. Particular focus is placed on
the promotion of gender equality, a major issue in Japan.

5.1 The SDGs and diversity
management
The 2030 Agenda, with the SDGs at its core, heralds theprinciple, “leave no one behind”. This principle holds in mind
certain groups of people that have been excluded fromenjoying the benefits of development and at times have
had their human rights violated, including women, children,
persons with disabilities, elderly, sexual minorities, ethnic
minorities and immigrants. At the foundation of the SDGs
is the idea that the inherent human rights of these diverse
groups of people must be protected. For many goals andtargets, there are existing treaties on human rights thatprovide the grounds for this protection. For example, theConvention on the Elimination of All Forms of Discrimination
Against Women is seen as the foundation for Goal 5, andthe Universal Declaration of Human Rights for Goal 8.
Diversity management is not often discussed in the context
of the SDGs. However, diversity management is an approach
aimed at the inclusion of diverse human resources based on
finding value in diversity, encompassing sex, age, nationality,
religion and sense of values, previously considered causes of
discrimination and discord. Diversity management embodies
the “leave no one behind” principle for employees in theContributions
to the SDGs
from theemployment/labourperspective(≒diversity
management)

Initiatives that
contribute to
a companyʼ scompetitiveedge

workplace. Inclusion of diverse human resources requires
proper understanding and practices on human rights in order
to eliminate discrimination and prejudice. Compliance withlaws on human rights and voluntary initiatives on humanrights (for example observance of the Guiding Principles on
Business and Human Rights) lay the foundation for each andevery employee to maximise his or her own potential. Witha foundation based on respect for and protection of humanrights, the diverse capacities of individuals are drawn out andmaximised to generate innovation. Diversity management
creates a competitive edge, and is an important approachthat can contribute via core business activities to Goal
9 (Industry, Innovation and Infrastructure) and theachievement of other goals. Diversity management itself is
not a programme but a process that serves as a problemsolving method with a long-term perspective. Accordingly,
diversity management is highly compatible with the SDGs,
which aim to “leave no one behind” and achieve “sustainable
development” from a long-term perspective. The practice ofdiversity management internalises the value of the SDGs.
Work-style reform that enables diverse workers to choose
ways of working according to their respective situations is a
key element of diversity management. Particularly in Japan,changes in prevailing work styles, such as long working
hours, are required to realise diverse and flexible work styles
and to ensure fair treatment regardless of employment
type. Measures that enable both companies to enhance
productivity and employees to enjoy productive employment
are the ideal for work-style reform. The relationship between
the SDGs and diversity management (Figure 3) and the SDG
targets closely related to diversity management (Table 17)
are shown below.

Acquisition of diverse human resources, telecommuting,equal pay for work of equal value,
results-based evaluation system, etc.

Observance of Guiding Principles
on Business and Human Rights,
the 10 Principles of the Global Compact, WEPs, etc.
Initiatives that
contribute torespect for andprotection ofhuman rights

Compliance with laws that address long working hours,
statutory employment rate for persons with disabilities, etc.

Voluntary
initiatives
related tohuman rights
Legal compliancerelated tohuman rights

Figure 3: Relationship diagram on the SDGs and diversity management

16

5．SDGs-related Initiatives by Companies and Organisations from the Perspectives of Employment and Labour

Table 17: SDG targets closely related to the promotion of diversity management
Goal 5 Gender Equality and Women’s Empowerment
5.1 End all forms of discrimination against all women and girls everywhere
5.4 Recognise and value unpaid care and domestic work
5.5 Ensure women’s equal opportunities for leadership at all levels of decision-making in political, economic and public life
Goal 8 Full and Productive Employment and Decent Work
8.5 Full and productive employment and decent work for all and equal pay for work of equal value
8.8 Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, inparticular women migrants, and those in precarious employment
Goal 10 Reduced Inequalities
10.2 Empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race,
ethnicity, origin, religion or economic or other status10.3 Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies
and practices and promoting appropriate legislation, policies and action in this regard* Some targets are presented in shortened forms due to space constraints.

5.2 Priority areas for diversity
management in Japan:
work-style reform andwomen’s advancement
Gender equality is an issue of special concern in Japan,
both in the promotion of diversity management and in the
promotion of work-style reform. In line with its definition,“the state of equal rights, responsibilities and opportunities
regardless of gender”, gender equality is a human rights
issue and a precondition for sustainable development.
Japan has grappled with the promotion of genderequality in working life, including the enactment of theEqual Employment Opportunity Law in 1985. The “Act on
Promotion of Women’s Participation and Advancementin the Workplace” was approved in 2015, and hasentered into force for a limited period of 10 years. The
law aims to realise opportunities for all women who wish
to advance in their places of work to fully demonstrate
their individualities and abilities. Nevertheless, due to thepresent existence of discriminatory practices and systems
that are disadvantageous to women, it is said that genderequality cannot be achieved by merely treating men
and women equally. 34 Positive action is required, andthe government has announced a 30% ratio of womenin managerial positions target to be achieved by 2020.
However, the present situation in most companies andgroups is still far off from this aim.

34

17

5.3 Results of survey utilising
WEPs tool
How are Japanese companies and organisations promoting
gender equality? What is the ideal they aim to achieve? As
explained in Chapter 2, a questionnaire survey using thequestion items of the WEPs tool was conducted. Interviews
were conducted with seven companies/organisations thatagreed to undergo a questionnaire survey and were willing
to be interviewed. The questionnaire based on the WEPs
tool had 18 main questions. Of these, one question asked
about leadership and strategy, 11 questions asked about
workplaces, four questions asked about markets, and twoquestions asked about the state of initiatives to promote
gender equality in local communities. If initiatives were being
conducted, respondents were asked to provide details
related to “commitment”, “implementation”, “measurement”
and “transparency”.
Below is an analysis based on survey results (Table 18).
Responses to the questionnaire showed that initiatives
in the promotion of gender equality in the workplace
were the most active overall, while initiatives in markets
and local communities were not very active. In the areaof leadership and strategy, over two-thirds of responding
companies and organisations responded positively on acommitment to gender equality.
Moreover, although the tool’s questions are targeted
at initiatives related to women’s empowerment andelucidation of related challenges, many questions are also
relevant to the promotion of diversity based on improved
work styles of other groups (such as persons withdisabilities and foreign nationals). Accordingly, this chapter
will examine the current state of work-style reforms
and diversity management, and in light of responses
to the tool, not only from the perspective of women’s
advancement, but including other groups as well.

 pecialist Committee on Basic Issues and Gender Impact Assessment and Evaluation (2012), “Summary of discussions on issues related to action plan on
S‘Economic vitalisation based on promotion of women’s active participation’—deliberations on administration, employment, subsidies and promotion of
positive action in public procurement areas”, http://www.gender.go.jp/kaigi/senmon/kihon/kihon_eikyou/pdf/jyosei_koudou_02.pdf

5．SDGs-related Initiatives by Companies and Organisations from the Perspectives of Employment and Labour

Table 18: Overview and number of responses to WEPs tool questions
Leadership and Strategy (Corresponding mainly to WEPs Principle: 1)
1) Leadership commitment and support (WEPs Principle 1)
Workplace (Corresponding mainly to WEPs Principles: 2, 3, 4)2) Non-discrimination and equal opportunity policy (WEPs Principle 2)143) Approach to ensure non-discrimination and equal opportunity in recruitment processes (WEPs Principle 2)164) Approach to ensure non-discrimination and equal opportunity in professional development and promotion processes (WEPs Principle 4)135) Approach to ensure women and men are compensated equally (WEPs Principle 2)146) System of paid maternity leave (WEPs Principle 2)167) System of paid child-care leave than can be used by fathers (WEPs Principle 2)168) Approach to support employees as parents and caregivers (WEPs Principle 2)169) Approach to accommodate the work-life balance of employees (WEPs Principle 2)
1610) Approach to ensure an environment free of violence, harassment and sexual exploitation (WEPs Principle 3)
1611) Approach to address the specific health, safety and hygiene needs of women (WEPs Principle 3)
1612) Access to quality health services that meet the specific health needs of women employees (WEPs Principle 3)13
Market (Corresponding mainly to WEPs Principle: 5)0 13) Proactive procurement steps to expand relationships with women-owned businesses (WEPs Principle 5)14) Encourage suppliers and vendors to advance performance on gender equality (WEPs Principle 5)515) Responsible marketing that considers the portrayal of gender stereotypes (WEPs Principle 5)516) Approach to assess differential impacts on women and men when developing products and/or services (WEPs Principle 5)
7
Communities (Corresponding mainly to WEPs Principle: 6)
3 17) Policies and processes to ensure responsibility to respect rights of women and girls in local communities in which operating (WEPs Principle 6)111018) Approach to embed gender in corporate CSR activities, public advocacy and partnerships (WEPs Principle 6)(1) Approaches in leadership and strategy(corresponding to question 1)
In order for companies and organisations to implement
initiatives to promote gender equality, it is important forleaders to show their commitment and support. For question
1, approximately two-thirds of companies/organisations
responded positively on engagement. Among companies/
organisations that responded “no”, in one case the following
explanation was given, “Gender equality is a given, andbecause we have achieved it, our leaders have not again
expressed their commitment and support for promoting
gender equality, nor do we have a strategy.”(2) Approaches in the workplace(corresponding to questions 2 to 12)
Questions asking about initiatives in the workplaceaccount for 11 out of the total 18, reflecting theimportance of this area all around the world. Almost all
responding companies and organisations were engaged
in addressing items in all questions. For instance, allrespondents responded positively to 6) provision of
paid maternity leave system and support for acquisition,and 7) system of paid child-care leave that can be usedby fathers and support for acquisition. All responding
companies/organisations also answered “yes” to engaging
in initiatives on 3) approach to ensure non-discriminationand equal opportunity in recruitment processes.
Further, all responding companies/organisations answered
positively on having approaches to 8) support employees
as parents and caregivers, and to 9) accommodate thework-life balance of employees. Approaches for most
respondents involved the adoption of telecommuting
and flexible working hours. Meanwhile, differences were
evident in operating policies and targeted employees.

One company reported having a flexible system oftelecommuting whereby employees could work anywhereas long as security was upheld and results produced. In
contrast, another company required reporting on rooms
used for telecommuting and start and stop times for work,
as well as restrictions on caregiving or childcare pickups
during telecommuting hours. There were also companies
and organisations that despite not having full systems inplace worked to create environments where employees
could speak up and to respond flexibly to employees’
needs. However, these companies had begun to feel aneed for responses based on systematised approaches
due to changing and diversifying needs related to work
styles and the values of individuals. On the other hand,concerns were voiced over the burden of managing
programmes once they were put in place, as well as theloss of flexibility in systematised approaches that could
result in the suffering of employees themselves.
In response to 10) approach to ensure an environment
free of violence, harassment and sexual exploitation, allresponding companies/organisations answered “yes”. This
question concerns WEPs Principle 3 “Ensure the health,safety and well-being of all women and men workers”, withmain approaches by companies/organisations differing.
Some companies released information on harassment within
the company and punished offenders, and other companies
adopted preventative measures based on educating
employees in regular trainings. Likewise, some companies
extended their approaches to violence and harassment
outside the company by supporting victims of domestic
violence and maintaining confidentiality.
A question broadly related to WEPs Principle 4 “Promote
education, training and professional development for women”

18

5．SDGs-related Initiatives by Companies and Organisations from the Perspectives of Employment and Labour

concerned 4) approach to ensure non-discriminationand equal opportunity in professional development
and promotion processes. Responses to this question
differed considerably according to the scale of companies.
Companies and organisations with under 300 employees
were not engaged in relevant initiatives, and all othercompanies reported on carrying out initiatives of some kind.
The most often implemented measures included setting
targets for percentage of women in managerial positions,holding trainings to support the professional developmentof women, and reporting numbers of women in managerial
positions to stakeholders.

In order to boost initiatives of suppliers in women’s
advancement, the government established the “Eruboshi”
certification system,36 an evaluation point system for public
procurement. There is also the “Kurumin” certification
system”37 for certifying companies that support a balance
between work and childcare, with a tax break provided.
Multiple companies had utilised these systems to obtaincertifications. Further, in some cases companies reported
being at a disadvantage in vendor selection in Europe if
not engaged in initiatives to promote gender equality.
This was a major factor boosting initiatives in companies
conducting business overseas.

In response to question 5) approach to ensure womenand men are compensated equally, almost all responding
companies/organisations answered “yes”. The most active
companies were engaged at all levels—commitment,
implementation, measurement and transparency. One
company eliminated a seniority system and separate career
tracks for men and women, changing to a system of equalpay for work of equal value. When comparing the salaries
of men and women, this company did not do a simple
comparison, rather compared men and women doing
roughly the same job content to ascertain and analyse thecurrent state of affairs.35 After determining that the gap
in salaries between men and women was due mainly todifferences in position, this company is working to raise
the ratio of women in managerial positions. Furthermore,family allowances paid to the heads of households are being
converted to child allowances, as systems are adjusted toensure allowances do not differ between men and womenor according to other attributes.

Lastly, several companies/organisations responded that
although they did not currently have any approach, they
were interested in learning more about question 15’s
“responsible marketing that considers the portrayal ofgender stereotypes”, revealing an interest in this area.

(3) Approaches in the market(corresponding to questions 13 to 16)
Initiatives to promote gender equality via the market are
not as common as those in the workplace. Notably, there
were no companies/organisations that answered “yes” toquestion 13 on “proactive procurement steps to expand
relationships with women-owned businesses”. Otherwise,
the most commonly mentioned approach to promote
gender equality via the market was “marketing strategy
tailored to women as a customer segment” (question
related to “implementation” under question 15). The least
common were initiatives involving “measurement” and“transparency”. For instance, no companies/organisations
were implementing approaches involving “encouraging
suppliers to set and measure targets and benchmarks
on gender equality” (question related to “measurement”
under question 14), “tracking the number of marketingcomplaints that relate to gender stereotyping or negative
portrayals of women” (question related to “measurement”
under question 15), and “including gender-specificquestions in supplier self-assessments” (question related
to “transparency” under question 14).

(4) A pproaches in local communities(corresponding to questions 17 and 18)
Initiatives in this area were not as common as those in theworkplace. Among initiatives in place, the most popular
involved promoting gender equality through partnerships
with other organisations and companies, including NGOs.
For example, one company participates in a programmesponsored by a group working in science research,education and policy on fostering the study of scienceamong girls, carrying out mentoring to students.
Meanwhile, initiatives in the areas of “advocating for theremoval of legal barriers that restrict women's economic
empowerment” and “providing financial support andinvestment to women entrepreneurs” were few. Althoughalmost all respondents replied “no” to question 17 on“policies and processes to ensure the responsibility
to respect the rights of women and girls in the local
communities in which operating”, about half of these hadinterest in learning more.

5.4 D
 iscussion on promoting genderequality, work-style reform anddiversity management
In conducting the survey on initiatives related to genderequality, several key points and issues arose related
to making progress on work-style reform and diversity
management. Below is a discussion on these.
(1) Women’s advancement as part of promoting diversity
When companies and organisations were asked ininterviews about their reasons for promoting women’s
advancement, they replied that it was “one part of promoting

 he wage gap between men and women in Japan is extremely large compared to other developed nations. When men’s wages are 100, women’s wages
Tare 73 (Ministry of Health, Labour and Welfare, Summary of Survey on Basic Statistics on Wage Structure, 2016).
A certification system for companies with excellent conditions for the advancement of women. Awarded to companies that have fulfilled the standards set
in the “Act of Promotion of Women's Participation and Advancement in the Workplace” and are among the most excellent.
37
System of certification by the Minister of Health, Labour and Welfare based on the Act on Raising the Next Generation, for companies engaged insupporting work and childcare balance.
35

36

19

5．SDGs-related Initiatives by Companies and Organisations from the Perspectives of Employment and Labour

diversity to bring about innovation”. Initiatives to promote
gender equality should precisely intend to equally take
into consideration and recognise the diverse and differing
behaviors, aspirations and needs of men and women. Thus,
designating them as a part of diversity promotion reveals an
understanding of the true nature of gender equality and isaligned with international trends. Many of these companies
are also actively engaged in initiatives on employment of
persons with disabilities and foreign nationals, working
to understand and recognise the respective needs andstrengths of each group and to provide better working
environments. In many cases the acquisition of diverse
human resources was found to have positive impacts on
business. For example, persons with disabilities have brought
their own perspective to the formulation of earthquake
disaster evacuation plans, bringing value to core business.
Further, foreign national personnel were found to bring anenterprising spirit to the workplace. Although the ratio ofdiverse personnel, including women, in managerial positionsin these companies is still low when looked at in a global
context, achieving goals will take time, and steps are being
taken in the right direction.
(2) P romoting gender equality: fostering genuine understanding
Due to an insufficient understanding of gender equality,
in some cases the perception of current conditions
differed from the actual state of affairs. One company feltthat equality between men and women was “common
practice”, and regarded itself as having achieved genderequality due to a lack of explicit gender discrimination.
However in actuality, prevailing views on the differingskills of men and women had led to almost all employees
in support positions being women, with a low ratio of
women in management positions, resulting in a wage
gap between men and women. When such biases
exist, companies may not realise they are behind in
implementing initiatives, even if their WEPs tool scores arelow. Accordingly, companies must first become aware of
any unconscious biases related to gender (e.g. “women
are good at this type of work”, “men should do this typeof work”). Further, gender inequalities in life outside ofwork can wield influence on women’s advancement intheir working lives. For example, in Japan women spend
3-5 times more time than men on unpaid caregiving in
the home (housework, childcare, caring for elderly).38
Hence, in order to address women’s advancement in
the workplace, it is necessary to raise awareness at theindividual level and work to eliminate gender inequality
in life outside the workplace. Companies have a greatrole to play in eliminating unconscious biases and raisingawareness through question 15’s “responsible marketingthat considers the portrayal of gender stereotypes”.

In order to foster a genuine understanding of genderequality, it is essential for all employees, not only managers
and staff in charge of human resources and diversity
inclusion, to have an understanding of the issue. Interviews
revealed significant differences in the notion of “women’s
advancement” by different employees within companies. A
portion of both men and women employees were against
the idea of “women’s advancement”, viewing it as a policyof the Japanese government to achieve gender equality,
but misinterpreting it as policy that gives favourable
treatment only to women. However, gender equality
specifies equality in rights, responsibilities and opportunities,
and is not a policy that gives favourable treatment only
to women. For diversity management to be successful, agenuine understanding in the workplace is indispensable.
Accordingly, it is important for companies to clearly stipulate
their ideas on promoting gender equality, as well as what
outcomes will be regarded as having realised genderequality, and to share information on objectives and goals
both within and outside the company.
(3) Companies’ compliance with laws and systems
Compliance by companies with Japan’s laws and systems
constitutes the context of survey results and the profusionof initiatives in workplaces. For example, in Japan, paid
maternity leave is made possible due to childbirth andchildcare subsidies and maternity allowances paid fromhealth insurance. Further, childcare allowances paid from
employment insurance enable both men and women to
take paid childcare leave. These systems are linked tothe provision of paid maternity leave and paid paternity
leave for fathers by all companies and organisations that
responded to the survey. Again, “nondiscrimination in
recruitment processes” is attributable to the prohibitionof indirect discrimination in employment of the 2006
and 2013 revisions of the Act on Securing, Etc. of Equal
Opportunity and Treatment between Men and Women in
39
Employment. Additionally, most companies set targets
for the ratio of women in managerial positions and kept
stakeholders informed of the numbers of women managers.
In the background of this is the obligation to incorporate thestate of women’s advancement, issue analysis and numericaltargets in the formulation of plans and carry out information
disclosure under the Act on Promotion of Women’sParticipation and Advancement in the Workplace. 40
Many companies were actively utilising point systems inpublic procurement, such as the “Eruboshi” and “Kurumin”
certification systems set up by the government. In short,most of the good examples of initiatives in the workplace
mentioned hereto are those sustained by companies’
compliance with Japan’s legal institutions.

 ender Equality Bureau Cabinet Office, 2018 White paper on gender equality, Figure 1-3-8, “Time spent on housework and childcare of marriedG
couples with children under the age of 6 (daily, international comparison)”. http://www.gender.go.jp/about_danjo/whitepaper/h30/zentai/html/zuhyo/
zuhyo01-03-08.html
39
Prohibits employment requirements on height, weight and strength and the provision of transfer requirements at times of recruitment, employment,
promotion and change in job type of workers, even with no rational reason.
40Based on the Act on Promotion of Women’s Participation and Advancement in the Workplace, national government, local governments and large
companies with over 301 employees must (1) ascertain and conduct issue analysis on the state of women’s advancement, (2) formulate action plansincorporating numerical targets and initiatives to appropriately address issues and report on, disseminate information and make public on these, (3)disclose information on women’s advancement in the organisation (small- and medium-sized enterprises of less than 300 employees have the obligation
to make effort).
38

20

5．SDGs-related Initiatives by Companies and Organisations from the Perspectives of Employment and Labour(4) Efforts to further the operation of systems
Meanwhile, issues have arisen in the operation of theabove systems. For instance, although mothers andfathers can take childcare leave, there is a huge gap in
the the actual rate of taking leave, which stands at 83.2%
for women and 5.14% for men.41 One factor in the low
rate for men is said to be a workplace atmosphere thatis not conducive to taking childcare leave. A company
that achieved a 100% rate of taking childcare leave by
male employees reported on its efforts to create anenvironment conducive to making use of the system,
including communicating messages from top management
and setting the goal for all eligible employees to takechildcare leave, even if only short-term. Efforts like theseto create conducive environments are necessary for
operation of such systems.
(5) L inking work-style reforms, promotion of genderequality and diversity management
Another reason companies are advancing initiatives in
the workplace is the great need for initiatives from theperspective of work-style reform. In an aging society
with fewer children, systems of telecommuting andflexible working hours are in high demand as they allow
employees to continue working while caring for children
and the elderly. Moreover, it can be surmised thatmany companies/organisations are actively engaged inrelated initiatives because these types of systems areeasy to operate and are easily translated into employee
satisfaction.
On the other hand, objectives for introducing
telecommuting differed among companies andorganisations, perhaps explaining differences in objectives.
Companies operating comparatively flexible systems
were aiming to bring about innovation through work-stylereform, while companies with more regulations aimed
to get points for public procurement and prepare fortelecommuting during the Tokyo Olympics. While workstyle reforms such as telecommuting produce various
results,42 from saving time on commutes to improved work
efficiency, flexible operation is ideal from the perspectiveof diversity management aimed at making the mostof diverse human resources. Work-style reforms, suchas reducing long working hours, eliminating seniority
systems and equal pay for equal work are importantin the advancement of diversity management. Creating
comfortable work environments for a diverse range of
people and thereby enhancing productivity leads to thegrowth of companies. If initiatives like telecommuting are
to be continued, companies must always keep in mind
their reasons for implementing measures to ensure that
their objectives and means are not confused.

41
42

21

Companies and organisations were also asked about goals
for ratio of women in managerial positions and progresson these goals. Some companies reported that neither
men nor women particularly wanted managerial positions.
A wide range of reasons were given, including lack ofovertime pay for managers, increased responsibilities
and the need to make sacrifices, but most concerned thework-style of managers. In order to increase the numberof women managers, initiatives in work-style reform
are required targeting both men and women from theperspective of diversity management.
(6) Other impetus for initiatives
The following are other reasons that initiatives in theworkplace have advanced.
・ L abour unions are involved in promoting initiatives
aimed at improvements in working environments.
・P ersonnel systems and allowances were reviewed whencompanies consolidated.
・ Both negative information and commonplace informationis released based on experience in responding to ESG
investment.
・ To ensure competitiveness in bidding for companies
doing business in countries and regions where initiatives
are advanced, such as Europe.
While these represent opportunities for initiatives topromote gender equality to be advanced, they can also
service as points of reference for the advancement ofdiverse human resources other than women.

(7) Going above and beyond initiatives in the workplace
The questions in the WEPs tool purport that initiatives topromote of gender equality are important not only in theworkplace, but also in the market and local communities.
The same can be said for initiatives targeted at persons
with disabilities, foreign workers and LGBT community
members.
The concept of companies promoting gender equality inthe market and local communities is still new to Japanesecompanies, likely accounting for this type of initiative being
less common than initiatives in the workplace. Anotherfactor might be the difficulty in seeing the outcomes andbenefits of such initiatives. However, even though they
are not implementing initiatives, multiple companies/
organisations expressed interest. It is essential to spreadthe word on the necessity and benefits of such initiatives.
In particular, efforts to proactively adopt procurement
methods aimed at expanding the business of womenowned companies are new, even from an international
perspective. In the background of such efforts is theless-than 1% share in procurement of women-operated

Ministry of Health, Labour and Welfare 2017 dataR esearch in the environmental field has shown telecommuting and reduced working hours to be linked to CO 2 reduction (Institute for Global
Environmental Strategies, Aalto University, and D-mat ltd. 2019. 1.5-Degree Lifestyles: Targets and Options for Reducing Lifestyle Carbon Footprints.
Technical Report. Institute for Global Environmental Strategies, Hayama, Japan). However, research on the rebound effect (for instance, CO 2 emitted ifwork hours are decreased and time is used for recreation instead) is still required.

5．SDGs-related Initiatives by Companies and Organisations from the Perspectives of Employment and Labourbusinesses in the over one trillion USD annual purchasesof 80 of the world’s multinational corporations. One
reason often given for this figure is the fact that women
executives do not have the connections and know-how tosecure sales with major corporations. However, it is said
that procuring from women-operated businesses has thebenefit of increasing value-added proposals and promoting
competitiveness among suppliers. 43 Moreover, womenbusiness owners tend to employ women, translating into
the stable employment of women. In this context, “supplier
diversity” based on increasing procurement from womenowned businesses is important for companies. This issue isextremely relevant to Japan, where women entrepreneurs
are beginning to increase, and particularly relevant for
major corporations that wield strong influence on supply
chains.
(8) N eed for initiatives by stakeholders other thancompanies, such as national and local governments
The survey revealed some areas that require focused
efforts by other stakeholders, such as government, aboveand beyond the initiatives of companies and organisations.
Multiple companies reported attempts to hire women
university graduates only to find low numbers of womenstudents in the sciences and difficulty in increasing thenumbers of newly-graduated women who studied science.
While companies are called upon to make efforts tocreate working environments that women find more
accommodating through work-style reforms, efforts arealso needed at home and in educational settings toeliminate rigid divisions of gender roles (IT is men’s work,
admin is women’s work). Further, efforts are required

to increase the numbers of people and places thatprovide reliable care for children, as well as the quality
and convenience of these services, to allow parents tocontinue working.
The survey revealed some major corporations that haveestablished in-house childcare facilities. However, smalland medium-sized enterprises with limited funds andhuman resources would have difficulty engaging in similar
initiatives. In order to facilitate initiatives in women’s
advancement on the part of SMEs, efforts are required
to inform people of the need for such initiatives and to
expand support systems in society as a whole. Moreover,in order to reduce the number of persons taking time
off work or leaving their jobs arising from increasingproblems finding care for the elderly, development of
human resources and the creation of better working
environments for those working in this field also require
urgent responses.
Utilising diversity management to change prevailing
evaluation methods based on working time to evaluation
methods that place more emphasis on results would
create fertile ground for workers involved in caregivingof the elderly and children to play a more active role.
However, results-oriented approaches when taken too far
lead to the increased risk of “leaving behind” some people
in an economically disadvantaged conditions. Government
must strengthen support and welfare systems that support
the disadvantaged to continue to rise to meet challenges.

<Column 5: Issues with childcare systems and balancing childcare and work>
Most of the issues surrounding balancing work and childcare that came up in interviews were related to childcare
systems. For instance, most problems involved not being able to leave children at childcare centres when taking
days off work, the disadvantage of changing jobs when pregnant (the dilemma involving companies assuming awoman cannot work because the child has not got a place at a childcare centre, and not being able to get a place
at a childcare centre without having work), and the lack of a system for improvements when dissatisfied with thequality of childcare. There are many issues behind this situation, such as insufficient childcare centres and childcare
workers, generally low salaries for childcare workers and limited persons and places where one can reliably entrustchildren other than childcare centres. However, preschool education is more highly cost effective compared toeducation from primary school to university, and research has shown that supporting economically disadvantaged
44
children is particularly effective in reducing disparities. Japan must learn ideas and systems of childcare fromother countries to develop its own domestic systems, and engage in work-style reforms that include improved
working conditions for persons involved in childcare.

43
44

Asahi Shimbun, 20 December 2018, “Breaking down barriers to women business owners”
Heckman, J. J., & Krueger, A. B. (2005). Inequality in America: What role for human capital policies? https://www.irp.wisc.edu/publications/focus/pdfs/
foc233a.pdf

22

5．SDGs-related Initiatives by Companies and Organisations from the Perspectives of Employment and Labour<SDG5 and WEPs: Gender equality as the basis for investment decisions>Contributed by Asako Osaki, National Coordinator, WE EMPOWER JAPAN
Efforts to promote gender equality have long been seen as a “human rights” issue, andaddressed in the context of international cooperation led by the United Nations and partners.
After the World Economic Forum released the Global Gender Gap Index (GGGI) rankings in
2006, gender equality, which is also the foundation for diversity, is now recognised as a driverfor sustainable and competitive corporate growth, as well as enhanced corporate governance.
Moreover, advancing gender equality is rapidly gaining force in the world of finance and investment. In line with ESG
investment trends, global institutional investors are now analysing mid- to long-term expected future growth and risksof companies from a “gender perspective” (e.g. negative company reputation and increased personnel management
costs caused by sexual harassment, cover-up of corruption due to insular and rigid governance structures, are seen as
corporate risks) . Applying a “gender lens” to investment decision-making has drawn increased attention, and major
investment companies have created funds with indexes based on the ratio of women in management and director
positions, gender wage gap and assessments on gender issues in the supply chain, etc.. In Japan, the Government
Pension Investment Fund (GPIF) adopted the MSCI Japan Empowering Women Index (WIN) in 2017 as a socialthemed index for ESG investment.
The Japanese government has also taken some major steps forward. Through the enforcement of the Act on
Promotion of Women’s Participation and Advancement in the Workplace, frameworks to “assess current corporate
status and develop action plans” and “disclose corporate information” have been systematically put in place. Likewise,
the government established a number of incentive (certification) systems for companies with strong track records;
certified companies receive bonus points during public procurement processes (comprehensive evaluation bidding
and planned competitive bidding).
More and more companies are working to promote gender equality and eliminate gender discrimination, aprerequisite for “women’s advancement”. Initiatives include increased rates of men taking childcare leave, setting
up structures for flexible working arrangements utilising IT, stronger awareness and responses to unconscious
biases that affect decision-making on recruitment, performance evaluation and promotion, and non-tolerance ofsexual harassment in the workplace. From here on, companies that are actively engaged in promoting gender
quality from a mid- to long-term perspective and understand that such process is not a “cost” but an “investment” tocreating environments where men and women can equally demonstrate their abilities, as well as enhance corporate
governance, will acquire talented human resources while receiving higher evaluation in the global investment markets,
leading to continued corporate growth.
The Women’s Empowerment Principles (WEPs) are a tool for private sector companies to achieve gender equality.
Signing the WEPs shows a company’s commitment and provides ways for the company to analyse its current statusunder each principle, form action plans, measure progress and engage in reporting. Continued corporate efforts
building on the WEPs can lead to concrete initiatives for SDG5, and this is directly linked to enhanced evaluationin ESG investment and gender lens investment. For instance, Bloomberg’s
Gender-Equality Index includes a question item, “signing/participating in the
WEPs”. WE EMPOWER is a programme designed to support private sector
45
companies in G7 nations to advance gender equality. We plan to create
more incentives to sign the WEPs in Japan and develop and disseminate easyto-use tools going forward.

45

23

WE EMPOWER website: https://www.empowerwomen.org/en

6. Conclusion

Chapter 3 contained an examination of SDGs-related
business trends in Japan and internationally, and Chapter
4 highlighted awareness on the SDGs among GCNJmember Japanese companies and organisations and thestate of their initiatives. Likewise, Chapter 5 looked at
the state of initiatives in diversity management from thepoint of view of promoting gender quality, specificallyconcerning companies that participated in GCNJ’s WEPs
sub-committee. This final chapter concludes with an
examination of the information presented thus far.
International trends on the SDGs
The release of a roadmap for the chemical sector
represented an unprecedented new development ininternational trends on the SDGs. While a variety of
sectors in Japan have declared support for the SDGs,
none have clarified pathways for initiatives as a sector nor
serve as examples for advancing international cooperation.
The following three issues were pointed out at the SDGs
Business Forum: 1) need for reports and checks on
concrete progress by businesses; 2) progress is insufficientto achieve the SDGs by 2030; and 3) the need to promote
implementation by small- and medium-sized enterprises.
A look at the global state of progress on the SDGs showsthat at the present rate, achieving the SDGs will be
problematic even for the three Northern European nations
reputed to have the most advanced initiatives (Sweden,
Denmark and Finland). For this reason, transformationis required to achieve the SDGs, and awareness on thispoint must be raised.
Becoming apparent of two types of mainstreaming in Japan
Two types of mainstreaming in Japan have become
apparent in domestic trends and the results of thequestionnaire survey of GCNJ members and interviews
with business leaders.
The first is the mainstreaming of the SDGs in the
management of companies and organisations, mainly inlarge corporations. Looking back at the state of progress on
SDGs of GCNJ member companies and organisations, themost striking progress is the 23% improvement in level ofawareness on SDGs of top management over a one-year
period. As shown in the Annex to this report, businessleaders have begun to speak in earnest about addressing
social issues through the SDGs and business. Companies
and organisations are communicating more on the SDGs
in their reporting. Furthermore, developments are slowly
evident in discussions and structures to move SDGsrelated initiatives into implementation within organisations.

The revision of the Japan Business Federation’s Charter ofCorporate Behavior and developments in ESG investment
and lending form the backdrop of this progress.
The challenge at present is that over 40% of companies/
organisations have yet to decide on how to roll out
initiatives internally and lack methods to evaluate
initiatives. Many of these companies have sensed barriers
to their next steps after linking the SDGs to existing
business. These challenges have much in common withissues 1) and 2) above that came out of the SDGs Business
Forum, and are not exclusive to Japanese companies andorganisations.
The questionnaire survey revealed a significant numberof companies that had positive responses to initiatives on
the SDGs based on identification of business opportunities
and risks throughout entire value chains. For companies
that have yet to begin this process, there is value in doing
so. Further, the “Practical Guide” and the “An Analysisof the Goals and Targets” introduced in the column in
Chapter 4 are designed to reinforce the SDG Compass.
They contain information on ways to identify priority
targets within the SDGs, indicators for evaluating progressand matters to incorporate into reporting. These resources
should certainly be utilised.
The other type of mainstreaming concerns the SDGs within
Japanese society. Over the past year, many ministries andagencies have become involved in the SDGs. In addition
to the initiatives of the SDGs Promotion Headquarters,
the Ministry of Foreign Affairs and the Ministry of theEnvironment, deliberations on the STI Roadmap within the
Cabinet Office and selection of SDGs Future Cities havealso taken place. Additionally, deliberations on the SDGs,
information provision and sorting out relationship between
policies and SDGs has taken place in the Ministry of
Economy, Trade and Industry, the Ministry of Agriculture,
Forestry and Fisheries, and the Financial Services Agency.
As such, actions on the SDGs steadily spreads at thenational level. However, there are still many challenges
that the government must overcome related to initiatives
on the SDGs. The content of the SDGs Action Plan isfundamentally limited to a rearrangement of government
policies, and it is unclear as to whether synergies andtrade-offs between the policies of various ministries
and agencies have been examined. Moreover, there is
still a long way to go in the integration of the necessary
environmental, social and economic perspectives required
to implement the SDGs.
Some of these issues are being addressed at the local

24

6. Conclusion

government level. In particular, local governments applying
to be SDGs Future Cities are required to give proposals
on visions for 2030 and ways to engage in the SDGs, aswell as the feasibility and promotion systems of initiatives.
Some local governments are engaged in initiatives moreadvanced than those of the national government. An
environment conducive to the SDGs-related initiatives of
local governments is being created as new recruitmentof SDGs Future Cities and SDGs Models of Local
Governments is to take place in 2019, and a budget isunder consideration within the circulating and ecologicaleconomy promoted by the Ministry of the Environment.
Next, expectations regarding initiatives on the SDGs in
SMEs have also begun to arise. At present, most SMEs
have only a modest familiarity with the SDGs. However, if
frameworks can be created to garner the participation of
SMEs in the SDGS-related activities of local governments,
there is potential for initiatives to spread amongst SMEs.46
The Japan Food Ecology Center, recipient of the Chief’sAward of the SDGs Awards, is a representative example of
an SME contributing to sustainability in a local community.
Because many companies and organisations refer to bestpractices when advancing their own initiatives, many
SMEs could better familiarise themselves with the SDGs
if a collection of case studies were created. Moreover,
implementing initiatives on the SDGs in SMEs was thethird point made at the SDGs Business Forum.
Although awareness among the general republic remains
low, it is expected to rise due to coverage in the media,
such as special feature articles in women’s magazines, andprogrammes at schools.
Nevertheless, even in Northern European countries, theoutlook on achieving the SDGs is gloomy. Likewise, many
obstacles must be overcome before the SDGs becomea truly mainstream idea in Japanese society. Domestic
issues are piling up, including an aging population withfewer children, disappearing municipalities, deteriorating
infrastructure and budget deficits. Under these conditions,what sort of society should Japan aim for in 2030, andwhat changes must be made to build a sustainable
society? In order to create a strategy on the SDGs forJapan, national debate in which everyone contributes
their insights is required.
Promoting gender equality in a genuine sense and theneed for initiatives to address diversity
One of the keys to making changes in Japanese society
and companies/organisations is the promotion ofdiversity. Gender inequality is a primary factor holding
down Japan’s progress score on the SDGs, and also afactor in other problems like poverty in single-motherhouseholds. Furthermore, Japanese society also faces
issues related to the employment of persons with46

25

disablities, institutional and cultural acceptance of theLGBT community, and foreign workers and technicalinterns. Environments in which diverse human resources
can engage enthusiastically in their work and are provided
with opportunities to maximise their talents, not only incompanies but in all workplaces, will lead to the creationof innovations and competitiveness linked to solving social
problems.
How should we go about creating such working
environments? The examples of leading initiatives bycompanies and organisations targeted in the research
for this report show that initiatives to promote genderequality involved work-style reforms that targeted not
only women, but men as well. Further, gender equality
initiatives were implemented as part of diversity
management, including persons with disablities and foreign
workers. These initiatives were also supported by internal
developments in organisations (demands from employees
and labour unions, promotion of genuine understanding)and responses to the external environments surrounding
companies (ESG investment, evaluation of gender equality
engagement in bidding in Europe).
From the WEPs tool used in this report, it was clearthat the promotion of gender equality ideally includes
initiatives in business, markets and local communities,
aside from those in work environments. The same canbe said for inclusion of persons with disablities, LGBT
persons, and foreign workers/technical interns. The SDGs
contain many goals and targets related to these groups ofpeople. Companies can do a lot to contribute to building
sustainable societies that “leave no one behind”, inworkplaces as well as in markets and local communities.
The WEPs tool and other tools related to the SDGs should
be used to determine what initiatives are needed andwhat can be done.
Heading into the future, continued initiatives with aview of diversity in its genuine sense are expected in all
workplaces and communities, not only in companies andorganisations, but also in areas that have fallen behind,such as government councils and public administration.
In conclusion
In 2019, High-level Political Forum will be held twice toengage in a follow-up review of initiatives on the SDGs
around the world. The first is a ministerial-level meeting
under the auspices of the United Nations Economic andSocial Council (ECOSOC) to be held from 9-18 July, andthe other is a meeting of Heads of State and Government
under the auspices of the UN General Assembly from 2425 September. The topic of July’s meeting is “Empowering
people and ensuring inclusiveness and equality”, which
is closely related to the topic of diversity management
addressed in this report. The September meeting is being

 n this point, the Kanto Bureau of Economy, Trade and Industry released “New Frameworks (support models) for backing local small- and medium-sizedOenterprises engaged in the SDGs” on 8 February 2019, which can serve as a reference for many local governments. Details are available at the following
URL. http://www.kanto.meti.go.jp/seisaku/seichou/sdgs_shien_model.html

6. Conclusion

called the “SDGs Summit”, and will be held together witha summit on climate change and high-level dialogues ondevelopment finance. With the G20 to be held in Japan,
focus on the SDGs is expected to mount throughout 2019.
At the beginning of this report, it was noted that theSDGs are entering their fourth year of implementation. In
other words, there are only 11 years and a few months
remaining in the implementation period of the SDGs. If weare to work in earnest to achieve the extremely ambitious

goals of no poverty, no starvation, and health and welfare
for all people, companies and organisations must begin towork to achieve the SDGs without delay. They must adopt
the value of the SDGs, and incorporate the SDGs into all
three areas of activities to address social issues throughcore business and social contribution, employment/labourand environmentally sound organisational management.
In other words, the practice of “SDGs management” isrequired.

26

Annex: SDGs Interviews & Initiatives by Companies

Annex 1. GCNJ/IGES Interview Series: Featuring Top Management and Management-Level Positions■

Sandra Wu, Wen-Hsiu, Director, Japan Asia Group Limited; Chairperson and CEO, Kokusai Kogyo Co., Ltd.;■

Hiroshi Okamoto, President, Ohtori Corporation■

Masayuki Kawana, Director, Executive Officer, General Administrative Manager of Human Resources Division■

Member, UN Global Compact; Board member, Global Compact Network Japan

Masayuki Shimizu, Chair, Seigakuin University & Schools
and CSR Management Office, Seiko Epson Corporation■

Jun Ikeda, Executive Officer, President's Office Chief of Staff, The University of Tsukuba■

Tetsuji Yokozeki, President and CEO, Business Consultants, Inc.

■

Chizuru Yamauchi, Executive Officer, General Manager of CSR Promotion Office, Nippon Life Insurance Company

Annex 2. 2030 Transform through SDGs - interview with 10 top executives of companies Interviews conducted in cooperation with the Asahi Shimbun Publishing Co. featuring 10 top executives of GCNJ
member companies

Interviews were published in the Asahi Shimbun newspaper (English versions in the Asahi Shimbun Asia & Japan Watch).
■

Hiroaki Nakanishi, Chairman of Keidanren (Japan Business Federation), Chairman of the Board and Executive■

Koji Fujiwara, Chairman, Japanese Bankers Association, President and CEO, Mizuho Bank■

Yoshihiro Hidaka, President, CEO and Representative Director, Yamaha Motor Co., Ltd.

■
■
■
■
■
■
■

Officer, Hitachi, Ltd.

Hiroshi Shimizu, President and CEO, Fuji Oil Holdings Inc.
Ayako Sonoda, President, Cre-en Inc.

Michitaka Sawada, President and CEO, Kao Corp.

Kohzoh Takaoka, President and CEO, Nestlé Japan Ltd.

Shinya Katanozaka, President and CEO, ANA Holdings Inc.
Kengo Sakurada, President and CEO, Sompo Holdings Inc.

Yoshimitsu Kobayashi, Chairman, Keizai Doyukai (Japan Association of Corporate Executives), Director of theBoard, Chairperson, MCHC

Annex 3. Example initiatives by businesses on the SDGs,“Promotion of Gender Equality as a Focus of Diversity Management”■

ANA Holdings Inc.

■

Konica Minolta, Inc.

■■■

Koei Research & Consulting, Inc.
Sumitomo Chemical Co., Ltd.
Nabtesco Corporation* The SDGs-related initiatives described herein introduce merely a part of each company’s activities. Please refer to therespective websites of companies for more comprehensive explanations on initiatives.

27

Annex 1. GCNJ/IGES Interview Series: Featuring Top Management and Management-Level Positions

Why businesses should tackle
the SDGs heads on
Sandra Wu, Wen-Hsiu,

Director, Japan Asia Group Limited;
Chairperson and CEO, Kokusai Kogyo Co., Ltd.;
Member, UN Global Compact Board;
Board Member, Global Compact Network Japan

A bridge between Japan and the world,working towards the SDGs
In 2018 I was appointed board member to two organizations,
United Nations Global Compact and Global Compact Network
Japan (GCNJ). When I accepted the appointment, I was
asked to fulfil three roles by the Secretary-General of theUnited Nations António Guterres, who also serves as Chairof the Global Compact Board. The first role is to advise the
Chair of the Global Compact Board and propose activities for
Global Compact from the Asian perspective. The second is
to contribute towards the Global Compact mandate, which isto promote the SDGs, both at the global and local level. The
third role is to serve as a bridge between the Global Compact
and its local network, GCNJ. So for example, I bring back, andshare, information on global high-level discussions and global
initiatives addressing the SDGs to my colleagues in Japan. Going
the other way, GCNJ is a well-known local network at Global
Compact, seen as a role model for other local networks aroundthe world, and it is my role to convey the ideas and experiencesof GCNJ member companies and organisations to the Global
Compact Board. I will do my best to follow the footsteps of Mr.
Arima, Representative Director of the GCNJ, who served in asimilar dual role for ten years before me.
What I hope to achieve through my work with Global Compact
and GCNJ, is first of all, enhanced awareness of the SDGs forboth myself and for everyone in our group company. A lotof people in our group company are already quite aware of

Global Compact Board meeting (September 2018, New York)©UN Global Compact

the SDGs, being regularly faced with the need to discuss ourSDGs-related activities with those outside the company when
I introduce myself as a Global Compact board member. I haverecently noticed an increase in SDGs-related topics being
discussed in our regular in-house meetings as well.

Disaster risk reduction as a starting pointof action towards the SDGs
Our group company, the Japan Asia Group, strives to “Savethe Earth, Make Communities Green”. Among the SDGs-related
fields, we are particularly strong in providing solutions towards
climate action, disaster risk reduction and environment, anddisaster risk reduction was, in fact, the starting point of ourjourney. In 2011, I was invited by the United Nations Officefor Disaster Risk Reduction (UNDRR, then UNISDR) to join
their Private Sector Advisory Group to raise awareness of how
private companies contribute towards disaster risk reduction
around the world.
The Great East Japan Earthquake occurred the day after
UNDRR’s invitation and Kokusai Kogyo suffered extensive
damages, but despite that, based on a pre-emergency
cooperation agreement with the Geospatial Information
Authority of Japan, we took part in an emergency aerial surveyof the disaster-stricken areas the following morning. Later ourteams helped estimate the amount of disaster debris and waste,using GIS technology, aiding post-disaster planning. In short, I
saw our company’s core technologies play an important role inresponse, recovery and reconstruction, and came to realize theimportance of businesses contributing to disaster risk reduction
through their core business strengths. I realized that it was it mymission to communicate this to the world, and began my workwith UN organizations. I served as Chair of UNISDR’s Private
Sector Advisory Group during the Third UN World Conference
on Disaster Risk Reduction held in Sendai, Japan in 2015, andsaw the new global framework, the “Sendai Framework for
Disaster Risk Reduction 2015-2030,” adopted, with the private
sector mentioned in no less than 33 places and the importanceof the role of businesses in promoting disaster risk reduction
deeply incorporated into the framework itself.
My work with UN organizations made me aware of their two
major agendas, climate change and the SDGs. Climate change
directly relates to disaster, and climate change adaptation anddisaster risk reduction are closely connected issues. Sustainable
development does not stand apart either: we can work on

28

Annex 1. GCNJ/IGES Interview Series: Featuring Top Management and Management-Level Positions

reducing poverty and improving lives and livelihoods in pursuitof sustainable development, but a single large-scale disastercan wipe out progress overnight. In other words, disaster risk
reduction, climate change, and sustainable development are all
closely interrelated.
Since 2015, I’ve talked about such interrelationships from theperspective of the private sector, and worked to enhanceawareness. The SDGs encompass the issues of poverty, peace,
human rights, environment and social inequality. These are
crucial issues for humanity to which everyone should contribute,
regardless of whether they work for the public or private sector.

Promoting diversity is necessary anddesirable
SDGs are also important from a corporate management
perspective. The SDGs also talk about human rights, social
inequalities, and employment, and asks us to create a betterworking environment. I think there are some things that arenecessary, and others that are desirable, in corporate settings.
Today’s society is evolving rapidly and in many directions.
Diversity and gender diversity are now accepted societal norms,
and thus it is necessary to promote diversity in the workplace.
At the same time, promoting diversity is also desirable forcompanies that wish to grow. For instance, Kokusai Kogyo has
been working with local governments for decades in disastermanagement planning. In the past, work meetings and briefings
were all men, from both the local government side and ourcompany’s side. More recently, the need to reflect the viewsof women on evacuation shelter planning and reconstruction
planning is now well understood, and planners from both sides
include a number of women.

Speaking as private sector representative at the plenary session“Invest Today for a Safer Tomorrow – Increased Investment in Local
Action,” Global Platform for Disaster Risk Reduction 2011 (May2011, Geneva) ©UNISDR

SDGs as guiding principle as well as
business opportunities
Businesses do need to make a profit, and I believe that, when
doing business, it is useful to ask the question: what issues
are we facing in today’s society? Because issues translate into
needs, which translates into business opportunities. There aremany opinions and interpretations surrounding each of the 17
goals of the SDGs, but each goal marks, without fail, issues andneeds that must be addressed. In that sense, for businesses,
the SDGs serve as guidelines for comprehending where globally
important issues lie. Businesses should think about how they
can address the issues raised by the SDGs, and make the world
a better place, specifically through their core business activities.
Japan Asia Group is an entity that strives to achieve growth byintegrating technological innovation with financial expertise.
Both “green” and “smart” innovations are essential to savethe Earth and make communities green. Both technology andthe power of finance serve as anchor to business activities
necessary for the future of society. I’ve been able to guideour group’s business activities with confidence by considering
the issues of climate change, disaster risk reduction andenvironment, and other factors, not separately, but as a set ofinterrelated landmarks guiding us towards growth.

29

Another example: Kokusai Kogyo has actively employedpersons with disabilities for 33 years through TDS, Co., Ltd., aspecialized subsidiary company. Employees with disabilities at
TDS had originally chiefly worked on computer programmingand data entry, but over the years, began to contribute toinclusive planning for persons with disabilities, which has
greatly benefited our business bottom line. We’ve been able
to propose ideas that take into account the perspectives of
persons with disabilities when developing services and solutions
for local governments.
In terms of the workplace, as Japanese society embraces
women's full participation in society, we face issues involving
the unavailability of daycare and men’s roles in childcare andcare of aged family members. We’re working on solving such
issues and, at the same time, further increasing the numberof female executives and foreign nationals within the groupcompany in the interest of promoting diversity.

Mainstreaming the SDGs into corporate
philosophy to boost both business growthand sustainable development
The original founding philosophies of both Kokusai Kogyo
and its parent group, the Japan Asia Group, were to become
businesses that provide a multitude of solutions to societal
problems and contribute to sustainable development. We’ve
discovered the hard way, however, that it is not enough fordifferent parts to strive independently; organizations need totake coordinated action under a common ambition. With theSDGs, the issues that we need to focus on have been organised
into 17 goals, and we’ve been able to demonstrate, through theSDGs, that various entities within our group are indeed working
towards common goals. With the SDGs as a common language,
I will work to grow the collaboration between companies anddivisions within our group, as well as the sense of unity amonggroup employees, so that together we become a businesssensitive to societal needs as well as business opportunities.

Annex 1. GCNJ/IGES Interview Series: Featuring Top Management and Management-Level Positions

The age of SDGs initiatives for SMEs
Raising momentum for social
contribution with the SDGs
Ohtori Corporation

Hiroshi Okamoto,President

Being a responsible supplier
I first came into contact with the United Nations in 2010
when I heard from a client with its headquarters in France thatthey were going to give priority in transactions to companies
engaging in initiatives on sustainability, and that joining the UN
Global Compact was a condition of business dealings. Although
our corporate philosophy and management policy to “contributeto social and public welfare through commercial activity” wasdetermined in the days of the previous president, it is highly
compatible to the 10 principles of the Global Compact and we
didn’t have to make any new changes to join. But it did serve
as a good opportunity to build momentum within our company
to work toward sustainability. We had gotten ISO14001 andISO9001 certifications and joined the UN Global Compact inFebruary 2011. Then we began participating in the Kansai subcommittee of the Global Compact Network Japan in 2012. I
myself had felt that business is not just about making money
and was finding it increasingly important to protect the naturalenvironment and contribute to society. Just when I was thinking
we’d better introduce some measures or we couldn’t survive as
a company, initiatives started to quickly fall into place.

-- C ontribute to social and public welfare throughcommercial activity-- M ove steadily forward and anticipate robust growth
based on sound management practices-- Strive to be trustworthy with honesty, effort and fairness
Ohtori’s management policy

conferencing was possible, we opted to have our section chiefin charge of CSR visit our 25 domestic locations to give accounts
on joining the UN Global Compact and its ten principles. I
wanted our employees, when asked related questions bycustomers, to be able to give a proper response, not an “I don’tknow”. Also, I wanted our employees to feel pride and a senseof belonging in our company, which had joined the UN Global
Compact, with its noble objectives. Thus, we focused not on
memorising information as if studying for a test, rather on raisingawareness. We did the same for the SDGs, spending two anda half years explaining them to every department. I believe inworkplaces where employees believe in their work and havejob satisfaction. Our company uses the SDGs, which are easily
understood by employees, as an effective tool to enhance
motivation.

Dedication at the top is key for SMEs
Although we haven’t set specific targets for the SDGs, I’m
confident that if we continue to do what we’ve been doing up
to now and what we should, we will contribute to achieving the
SDGs. At present, we are deliberating on how to use the SDGs
as an opportunity to contribute to society as a trading company
in electronic components, and what we can do in CSV. In my
experience, without dedication at the top, merely saying “wewill do what’s good for society and implement the SDGs” isnot enough. In order to have dedication at the top, collectionof the latest information on the SDGs and ongoing input isessential. Efforts to collect information from external sources
such as the Global Compact Network Japan and IGES is part ofthis process. If a good match is found for our company, we will
steadily incorporate it into our policies and activities following
due consideration. Based on this resolution, we will continue toremain engaged.

Spreading the word in the company
carefully, over time
From the Ten Principles of the Global
Compact to the SDGs
Small- and medium-size enterprises are distanced frominternational trends and even more so from United Nations’initiatives. In fact, it took about two to three years to get themessage across in my company on the ten principles of the
Global Compact. Even now the process remains ongoing. My
instructions have always been to go directly to workplaces
and explain things face-to-face with employees. Although video30

Annex 1. GCNJ/IGES Interview Series: Featuring Top Management and Management-Level Positions

Fostering people to contribute to Japanand the international
community in the future
Seigakuin University & Schools

Masayuki Shimizu,
Chair

Linking the SDGs and our school motto
Seigakuin will soon celebrate 120 years since the founding of
its predecessor, the Seigakuin School, in 1903. Our school has
developed throughout its long history, and we now have nineschools, ranging from preschool to primary school, girls’ andboys’ junior high and high schools, as well as a university andgraduate school and a general research institute. Seigakuin’s
school motto is, “Love God and Serve His People”, and wepractice a “leave no one behind” policy in all our educationalsettings. The SDGs give concrete shape to the ideals for which
we should strive when applying Christian principles to real-lifesituations.

Initiatives with the SDGs to promotestudents’ growth
One of our main initiatives with the SDGs is our “Boys’ School
x Girls’ School Project” in which junior high and high school
student volunteers work to tell the world about the excitementof para-sports. The “1 st Stage” of this project involved
inviting wheelchair basketball players and visually-impaired
judo athletes to our school to give students the chance toexperience playing para-sports with them. The athletes werealso interviewed to create a video to promote para-sports.
Able-bodied students have few opportunities in their daily lives
to interact with disabled persons. At first, students felt pity
for the athletes. Through interacting with disabled athletes,
however, our students came to realize that the athletes were
full of light and positivity, and that the pity they had fixed upon
the disabled persons was a disability within their own hearts.
Our students call this the “barrier of the heart”. Moreover,because boys and girls are ordinarily separated in their studies,working together made them aware of their fixed ideas on
gender stereotypes. Our students learned so much from these
activities, things they could not have learned from a textbook.
The project is currently in its “3rd Stage”,
where members are creating projects of their own, working out
plans from the ground up to implementation.
In another of our initiatives, students from our boys’ junior highand high schools have been visiting an orphanage in Chiang
Rai in Northern Thailand for the last 30 years for training on
volunteer activities. Most of the children in the facility cannot
live with their parents and some of them have never even met

31“Boys’ School x Girls’ School Project”

their parents. They are members of hill tribes who came to
Northern Thailand from Myanmar and Laos. Without protection,
they would be sold or forced to work in factories.
In 2018, 40 participants attended this training. They spent
about 10 days with the children in the facility and saw thesmiling faces of these carefree children who live in a very severe
environment. It was a good opportunity for the students to think
seriously about the true nature of abundance and the roles they
have to play.
Seigakuin engages in a wide variety of other activities, including
volunteer activities in cooperation with our university’s local
community, earthquake disaster volunteer activities byuniversity, junior high and high school students, as well as
hands-on agricultural study by the junior high school studentsof our boys’ school. These experiences have considerable
influence on the students’ future paths as well as their views onsociety.

Creating a robust middle class
The middle class is falling apart in today’s society and divisions
are forming. Social disparity is dangerous for human beings.
Finding ways to utilize the SDGs to create meaningful andsustainable societies is a work in progress, and education ismost certainly decisive in shaping our societies. Above andbeyond theory and knowledge, what is good for people andgood for society must be embodied in education, which willbear great impact on the future of Japan and internationalsociety. By fostering the development of people with a capacity
for understanding and dialogue, we hope to contribute to thecreation of a robust middle class.

Annex 1. GCNJ/IGES Interview Series: Featuring Top Management and Management-Level Positions

Becoming an “indispensable company”
Reconciling solutions to social
issues and business withtechnological innovation
Seiko Epson Corporation

Masayuki Kawana,

Director, Executive Officer, General Administrative Manager of Human
Resources Division and CSR Management Office

A management philosophy that led us to the SDGs
At Seiko Epson, we aim to be an “indispensable company”. Adding
these words to our management philosophy in 2017 was theimpetus for our full-fledged engagement with the SDGs. In order
to become an “indispensable company”, we provide value that
only Seiko Epson can provide. We view employing our unique
technologies to reconcile business and solutions to social issues
as our mission. Our goals are the same as those of the SDGs.
We began fundamental training for employees in 2018 aimed
at instilling the concept of the SDGs into our company. We held
lectures for 1,800 managers including the company president,
and conducted an online training for all domestic group
employees. The effort to promote initiatives that contribute to
the SDGs is led by the CSR Management Office, an organization
under the direct control of our company president that isheaded by myself.
One of our products that symbolizes our initiatives in the SDGs
is the PaperLab A-8000, a dry-process in-office papermaking
machine that makes recycled paper from used paper in offices.
Ordinarily, one cup of water is required for each piece of A4
paper made. However, the PaperLab uses almost no water, aprecious resource, to recycle paper.1 This product decreases
the amount of paper purchased. Further, the environmentalload due to transport of used paper when paper recycling is
consigned externally is also reduced. Likewise, when used paper
in offices is defibrated, information is erased, thus ensuringconfidentiality. Additionally, new employment is created tocollect used paper and carry out pretreatment. Workplaces for
elderly and disabled employees to thrive are expanding at ourcompany. We currently plan to expand sales of the PaperLaboverseas. Reception in Europe and North America has been
positive, so we are looking at the possibility of expanding toboth markets all at once.

PaperLab A-8000
1

We were able tooffer the PaperLabon the market due
to the technologies
that our company
has accumulated
over many years andour manufacturing

infrastructure. I believe that our company’s vertically integrated
business model, by which we carry out everything from researchand development on core devices to manufacturing and sales,
is what made this all possible. By performing all stages within
our own company, we can provide products with high added
value that can fully manifest the performance of our originalcore devices while improving our cost competitiveness.

An “indispensable company” to our employees
As Japan increasingly becomes an aging society with fewer
children and business activities globalize, we must secure
human resources on a global scale with strengths in connections
to cyberspace, our company’s area of focus. Our initiatives indiversity management and human resource development andemployment are important SDGs-related initiatives.
In recent years, we have been hiring technicians from China,
Philippines and Indonesia. While the turnover rate of overseas
human resources is high, in many cases they are more capableand ambitious than new university graduates in Japan.
Technicians hired locally have become active and are filling
managerial positions in local subsidiaries.
A major issue in Japan is women’s advancement. In order toreach our goal of a 5% rate of women in managerial positions by2022, we have the option of bringing in women executives fromexternal organizations, but if possible I’d like them to come fromwithin the company. To do so, we are aiming to increase women
employees with the goal of 25% of new graduate hires being
women. However, there are few women in the field of technology
to begin with, making it an uphill battle that will take time. We’ve
launched a project in the company and established seven themes
based on the opinions and needs of women employees, and wewill respond to each, one by one. We are also working to develop
the next generation of leaders. The appointment of women
to executive positions is often approached with hesitation on
both the side of persons being appointed and those doing theappointing. However, I feel we must do more to provide work thatenables substantial growth for women.
We must become an “indispensable company” not only insociety, but for our employees as well. To do so, we must
contribute to society and make a profit. I believe we must
steadfastly share these profits with our employees.

‌A small amount of water is used to maintain a certain level of humidity inside the system.

32

Annex 1. GCNJ/IGES Interview Series: Featuring Top Management and Management-Level Positions

Looking beyond SDGs
as a transborder university

The University of Tsukuba

Jun Ikeda,

Executive Officer, President's Office Chief of Staff

Developing global human resources
through the SDGs
The University of Tsukuba was established in 1973 as a newconcept university based on the philosophy of being transborder andtransdisciplinary. We have designated our institution as a frontrunnerthat envisions the future and seeks to materialise our vision. We
create the knowledge that will help overcome global challenges andshape a future global society, and foster the development of the
global human resources that will lead in these endeavors.
We got involved in the SDGs quite naturally. We establishedthe Graduate School of Environmental Sciences in 1977 whenpollution was a major problem in society. It was the first
graduate school in Japan dedicated in name to environmental
studies. Then in 1983, we established the College ofInternational Relations to address challenges related to theglobal society, development and politics. When the “TransASEAN Global Agenda Education Programme” was adopted
by the Ministry of Education, Culture, Sports, Science andTechnology (MEXT) as a Re-Inventing Japan Project in 2013, we
had already taken a firm stand on developing human resources
to contribute to overcoming challenges related to the SDGs.
In 2014, we were selected by the MEXT as one of thirteen"Top Global Universities” (Type A). As a part of this project,
we set up the “Bachelor’s Programme in Global Issues”, whichorganises the challenges of the SDGs into four issues: earth
environment, social diversity and inclusiveness, risk and security,and human health and well-being. Ordinarily research is seedbased, but this degree programme starts with the needs of theSDGs and involves faculty members from a variety of disciplines,
aiming to integrate the arts and sciences.
One symbolic outcome of these initiatives is the signing of the
Global Compact (GC) in 2017. Actually, it was inspired by our
graduates. There are United Nations staff members among our
graduates of the College of International Relations, mentioned
above. A few of them came to meet our university president andsuggested joining the GC, and the president welcomed the idea.
This is to say that our joining GC was a bottom-up initiative as aresult of our efforts to foster human resources over the years. We
as educators were extremely happy to see this development.

Diversity and cross-border cooperation
We have committed to promoting diversity. Our number one

33

accomplishment is the establishment of the Center for Diversity,
Accessibility and Career Development (DAC Center). The DAC
Center not only promotes diversity, but also supports the careerdevelopment of students with disabilities and international
students. Our university also has the Division of Disability Sciencesthat specialises in mental and physical impairments. Since its
establishment, the division has advanced research on disabilities
and support for disabled persons and has actively promoted theadmission of students with disabilities. The DAC Center is engaged
in supporting diversity, in terms of not only gender and nationality,
but also concerning disability and sexual orientation (LGBT).
For instance, if we enlarge the fonts of print-outs and notices
and add furigana (showing the pronunciation of Kanji, i.e.
Chinese characters) for those with weak vision, this would also
facilitate ease in reading for international students and theelderly. If we adjust the time for leaving work to make it easierfor disabled persons to work, this would also make work easierfor foreigners who are not used to working overtime. Because
different issues are interrelated in various ways, it is importantfor us to think laterally across various issues.
We believe that diversity has the power to enhance the qualityof research and education. People who cannot see and hear cancome up with new ideas that cannot be thought of otherwise.
Women have ideas that men do not, and foreigners have ideasthat Japanese people do not. People with differences working
together not only improves work environment and satisfaction,
but is also a path to innovations and breakthroughs.

Beyond the SDGs
In September 2019, the University of Tsukuba will hold the“Tsukuba Conference”. University President Nagata will serveas chair of the conference, and committee members will
include the President of the University of Tokyo, the Chairmanof the Japan Business Federation and Chairman of the Boardof the National Institute of Advanced Industrial Science andTechnology, with relevant government ministries participating
as observers. One of the objectives of the conference is to haveyoung people play leading parts, as they will indeed take onleading roles 20 or 30 years into the future. If Japan can takeleadership in this process, many chances will arise in the future.
I hope this event provides the opportunity for many people tothink about what will come after the SDGs through transbordercooperation.

Annex 1. GCNJ/IGES Interview Series: Featuring Top Management and Management-Level Positions

Contributing to sustainability
through management itself

Nippon Life Insurance Company

Chizuru Yamauchi,

Executive Officer, General Manager of CSR Promotion OfficeSustainable initiatives via a steadyprocess
Our company was established in 1889 and celebrates 130th
anniversary this year. We have run our company based on ourphilosophy on “co-existence, co-prosperity” and “mutualism”.
We view contributing to sustainability as part of management
itself, and see it as our mission to contribute to society throughour life insurance business, aiming to contribute stability andenhancement to people’s lives.
Eliminating poverty is the first of the 17 goals of the SDGs.
Arranging life insurance to support surviving family is tied to notcreating new poverty. I believe that the life insurance business
which eliminates poverty and disparity based on a system ofmutual aid, is consistent with the aims of the SDGs.
To date, although we have developed and provided life
insurance products and services related to the SDGs, our fullfledged initiatives only started when the members of ourmanagement committee were invited to a study session by thepresident at the time in November 2017. We are now following
the SDG Compass and have designated ten goals closely
related to our business in Step 2, “Defining priorities”. In defining
these goals, we focused on the four perspectives of “consistency
with business strategy”, “contributions characteristic of Nippon
Life”, “relevancy to key priorities in sustainability” and “impact”.
Among the 169 targets and 232 indicators of the SDGs,
there were some that were a difficult fit with our business,whereas some items proved useful. For instance, our goal tohalve the poverty of children in Japan, which stands at 13.9%,
was assimilated from the target to reduce poverty in all its
dimensions by half. We also used The SDGs Implementation
Guiding Principles established by the Japanese government.
Although it was a difficult process at times, I believe that after
going through this process we will not waver off course going
forward.
Following the enforcement of the Paris Agreement, the adoptionof the SDGs and the revision of the Japan Business Federation’sCharter of Corporate Behavior, we added two items to our 16“key priorities in sustainability”: “management that respects thehuman rights of all people” and “addressing climate change”.
We will continue to engage in addressing these 18 key priorities
in sustainability.

“Understanding the SDGs” training materials for employees

Contributing to the SDGs throughsupporting the independence of seniors
and the next generation
In April 2019, we launched our “GranAgeStar” service targetedat senior customers. In order to respond to the worries andneeds of each and every person in our aging society, thisservice provides support for daily life such as guarantor services
and accompaniment on doctor visits and hospital discharges.
This service was born out of discussions on how to help theelderly lead healthy lives that they choose for themselves, and I
believe it responds to issues of health and aging societies of the
SDGs. In addition to protecting against illness in the body, thissystem adds the perspective of promoting a healthy spirit. Also,
because the service is provided in conjunction with specialists,
it is also related to Goal 17 on embodying partnerships.
Particular issues related to poverty include single-motherhouseholds and children in poverty. We face with Population
decline issue in our domestic business, and measures tosupport the independence of the next generation are linked toaddressing the declining birthrate. We’ve begun to do what we
can in this area.
Because our company’s aims are compatible with the SDGs, wemust be careful not to merely continue doing the same things.
I believe it is important for us to actively engage in change,
incorporating outside-in and backcasting approaches to bringabout innovation, not just carry out extensions of the samebusiness we’ve engaged in to date.

34

Annex 1. GCNJ/IGES Interview Series: Featuring Top Management and Management-Level Positions

Creating Purposeful andFulfilling Workplaces”

Business Consultants, Inc.

Tetsuji Yokozeki,
President and CEO

Our Encounter with Sustainability
Management

Applying the Concept of Sustainable
Management to Corporate Lives

We have been engaged in sustainable business management
through human resource and organisational development
since the start of the company. Our company was establishedin 1964, the year of the first Tokyo Olympics, and has justcelebrated our 55th anniversary. Throughout the years, we havebeen consistent with the three basic principles which are; “dono evil”, “be profitable” and “live long”. We call the last one the“Spirit of the Turtle”. Turtles have no excess flesh that prevents
them from living long lives. In organisations, this excess flesh iswhat we call management or administration specialists. Thus,
our company has no one working as specialists in management
or administration, and even the senior managers are expected
to “play the game” as individual contributors. We have a leanorganisational structure of 400 employees, where each andevery employee is a “player-manager”, including myself as the
President of the company.

Both forecasting and backcasting are regular practices used
when companies develop their strategies. Forecasting is amore traditional practice that focuses on a short to mid-term
management plan that predicts where a company is heading
to, based on analysis of past trends and solutions to present
challenges and problems over a three to five-year period. As
this process is important for effectively addressing current
challenges and problems, it is not my intention to underestimate
its power. On the other hand, backcasting allows a company
to look ahead to 2050 and form a vision for its business andits role in the well-being of our planet, as well as the safety
and security of our society. The 4 Principles of Sustainability
are absolute requirements in this depiction of a future vision. I
believe that both forecasting and backcasting are necessary for
managing our paths toward a truly sustainable future.

It takes time to build a foundation for human resources andcorporate culture, and while working on this, companies need tosustain themselves by being profitable. Work is the best place
for people to obtain the sense of being useful to others. I reallywant to create places where people find joy and satisfaction inlife through their work. This idea led us to encounter Dr. Karl2
Henrik Robèrt, his “4 Principles of Sustainability” and his overall
3
concept of “sustainable management”. If we can manage
our companies contributing to environmental and societal
sustainability, that would foster pride and joy of being usefulto others. This supports my ideal that organizations should
provide their people the joy of having the purpose and meaning
in the work they do, and this work being the means (way toearn enough income) for happy and fulfilled lives.

Although the SDGs are important, they do not tell us how
to create a vision. On my company’s website, we introduce
a tool called the “Future-Fit Business Benchmark”, 4 which
provides detailed information on ways to get started. We’re
currently creating the Japanese translation of this tool, whichcontains 23 benchmarks in five areas for business activities
that lead to creating organisations with no negative impacts
on environment. When the requirements of 23 items are met,
environmental impacts are zero and companies have also met
the requirements of the 4 Principles of Sustainability.
One of the biggest challenges we face today is the lackof leaders who accurately understand the importance ofsustainability. At BCon, we are aiming to help companies
to educate their employees and leaders, so that we havemore companies that correctly understand and strive torealise sustainable management. We help them by offering
programmes for creating business visions, with the aimof fostering leaders with coherent convictions that leadorganisations using the 4 Principles of Sustainability and the
Future-Fit Business Benchmark.

Corporate symbol withturtle and earth motif

2
3
4

35

‌
https://www.bcon.jp/keywords/4rule/
https://www.bcon.jp/trend_themes/sustainability-2/
https://goodbusiness.jp/future-fit_1/, http://futurefitbusiness.org/about-the-benchmark/Annex 2. 2030 Transform through SDGs - interview with 10 top executives of companies -Hiroaki Nakanishi

Chairman of Keidanren (Japan Business Federation),
Chairman of the Board and Executive Officer, Hitachi, Ltd.

ⓒ朝日新聞社

Businesses thrive when they benefit society
Keidanren (Japan Business Federation) made the sustainable
development goals (SDGs) the guiding principles of its Charterof Corporate Behavior when it was revised in November. It was
the first revision of the charter in seven years. Keidanren urges
member companies to comply with the charter.
The charter states that through innovation, member companies
will strive to achieve sustainable economic growth and toresolve social issues. It also includes Keidanren’s commitment
to “conduct business that respects the human rights ofall persons.” Business activity ignoring human rights is notsustainable. That is why we laid out the guiding principles foraction by placing importance on paying full respect to thehuman rights of people as the starting point.
Corporate Japan used to put business ahead of everythingelse. As a result, its approach to social contribution, donations,environmental protection and other social programs derived fromthe notion that companies should undertake such endeavors
as they impose a burden on society because of their businessactivities. But that is no longer the case. Companies must be abeneficial presence in society. Otherwise, they cannot sell theirproducts by receiving orders from the public. This realization led
us in economic circles to embrace SDGs, which were adopted asinternationally shared goals at the United Nations in 2015, as thecommon aims we should strive to achieve together.
In the age of increasing uncertainty that we live in, the need is
growing to contemplate mid- and long-term objectives, rather
than short-term sales and earnings.Incorporating SDGs specificallyin business planning in the longer term will be effective.

longer suffice. At Hitachi Ltd., where I also serve as chairman, it
has been our policy to dispatch extremely talented personnel
to our factories and research and development centers because
Hitachi considers technological excellence the core of ourbusiness. We used to embrace the idea that as long as we
manufacture high-quality products, they will certainly sell. But
our stance now is to create new values through a dialogue
between our customers and our employees placed on the frontline of businesses guided by the philosophy represented by
SDGs.
Hitachi has implemented this “social innovation” program overthe past 10 years or so. It was an uphill struggle. Hitachi isalso striving to spread renewables by undertaking projects
to desalinate seawater and to generate wind power. In ourrailway project, we are not only endeavoring to ease theemission of carbon dioxides and traffic congestion, but alsopresenting Hitachi’s “smart city” solutions that are friendly tothe environment and the elderly while collaborating with otherpublic transportation systems. Of Hitachi’s overall sales of 9
trillion yen ($81.8 billion), 1 trillion yen or so is generated by thesocial innovation program. But the figure is expected to surge inthe coming years.
We find it difficult to carry out such a social business programon our own and need to work with other companies. That often
involves discussions on how company or business operations
should work. It is important to share the same goal if businesses
aim to collaborate successfully. SDGs serve as the guiding
principles in that respect, too.

Keidanren has proposed Society 5.0, a vision for a new society
utilizing artificial intelligence and big data, in a quest similar to
SDGs. Society 5.0 means that humanity will experience the arrivalof a fifth age after developing from the hunter-gatherer society,agrarian society, industrial society and information society. We arewitnessing a sweeping transformation of society due to the spreadof digital technology. It is important for businesses to contributeto efforts to create a wealthy and lively Society 5.0 centered on
SDGs, all the more because it is becoming hard to predict where
we are heading to with these changes in society.

But we should be fully aware that some conditions must be met
before SDGs can be translated into reality. Society needs to behealthy and peaceful. The security and financial health of thenation are also imperative. So is the stable supply of relatively
cheap energy. Making efforts to meet those conditions willamount to contributing to the fulfilment of SDGs.

I am aware of a shift in investors’ approach to businesses. They
place a high priority on the environment, social agenda andgovernance. It demonstrates their willingness to share with top
business managers a long-term goal of addressing environmental
and social issues. Their thinking is that companies endeavoring toachieve such a goal will be stable and give them bigger returns,
allowing them to recoup their investments.

Keidanren published a 186-page booklet in July featuring
efforts by its member companies endeavoring to achieve
SDGs. It discusses 165 examples, including the construction ofschools in the developing world by construction companies andgeneration of power utilizing alternative energy. They are also
carried on Keidanren’s website dedicated to SDGs programs.

In the field of manufacturing, the conventional thinking that
products will sell as long as their quality is excellent will no(This article is based on an interview by Asahi Shimbun Staff Writer Hironori Kato.)

INTRODUCING ACTIVITIES IN PUBLICATIONS

Hitachi published its first “SDGs Report” this spring, describing
the connection between the company’s businesses, including
health-care equipment and financial systems, and 17 SDGs.
(Published on 22 August, 2018)36

Annex 2. 2030 Transform through SDGs - interview with 10 top executives of companies -Koji Fujiwara

Chairman of Japanese Bankers Association,
President and CEO, Mizuho Bankⓒ朝日新聞社

Banks seeking to help resolve social issues
Japanese managers are growing increasingly aware of theimportance of achieving the sustainable development goals. I
meet top executives of our business partners almost daily, andthe topic of the SDGs has come up regularly at our meetings forthe past six months or so.
The role that banks are expected to play in today’s society is
to help resolve social issues, including environmental issues
and human rights issues, through their core operations: making
investments and providing loans.
In March, the Japanese Bankers Association, the banking
industry group, revised the Code of Conduct to reflect thephilosophy of the SDGs. The revision is intended to spur bank
employees to reform their consciousness and actions so thatthe banking industry will contribute to efforts to achieve asustainable society.
In the past, banks tended to pay attention to environmental
or social issues only when they were directly linked to theirbusinesses. But we are living in an age where banks will beheld accountable for problems that our business partners orrecipients of our loans might cause.
One example is that the question has been raised about how
the banking industry should approach investment in and loans
to coal-fired power generation facilities, which emit a large
amount of carbon dioxide.
Leading financial institutions in Europe set their guidelines forinvesting in and lending to coal-fired thermal power facilities.
The guidelines spell out how much they will invest in and lend
to renewable energy projects in the future, declaring theircommitment to steer discussions in renewables. Their approach
can be described as a pioneering endeavor.
In Japan, the three mega-banks--Sumitomo Mitsui Financial
Group, Mitsubishi UFJ Financial Group and Mizuho Financial
Group--announced their own policies toward coal-fired power
generation facilities during the current fiscal year. That amounts
to a testimony to increasing momentum for and interest in theSDGs, exceeding the level it was initially anticipated, as calls are37

growing for specific steps to cope with climate change.
In Japan, however, we face a challenge of how to protect
the environment and contribute to conservation efforts while
ensuring a stable energy supply. There has been persistentopposition to the restart of nuclear reactors.
Mizuho Bank is set to review its investment and loan policy
annually.
Trying to raise earnings and contribute to the solution of social
issues at the same time will not be an either-or situation. If abusiness can build trust in society as a company heeding humanrights and environmental issues, that will lead to its successful
branding and open the door to future business opportunities.
This positive cycle will prove essential for businesses to achievesustainable growth. In the current network society where
information is disseminated instantly and globally, businesses
are expected to demonstrate a high degree of transparency intheir management. That has prompted businesses to operate
while giving consideration to human rights and environmental
issues. The SDGs are a trend that cannot be reversed and are
becoming a new business rule.
(This article is based on an interview by Asahi Shimbun Staff Writer Ken Sakakibara.)

TASK FORCE SET UP AT JBA TO PROMOTE SDGs
The Japanese Bankers Association (JBA), a group of about 190
banks in Japan, specified the role they are expected to play increating a sustainable society and resolving social issues under
the Code of Conduct revised in March.
It also set up a task force inside the JBA to promote the SDGs.
The task force will study financial institutions in Japan andoverseas to collect examples illustrating excellent investment
and loan policies with respect to environmental and humanrights issues and share the findings among member banks.
(Published on 23 August, 2018)

Annex 2. 2030 Transform through SDGs - interview with 10 top executives of companies -Hiroshi Shimizu

President and CEO, Fuji Oil Holdings Inc.

ⓒ朝日新聞社

How palm oil can be ethical and sustainable
My company was founded in Osaka in 1950, soon after the endof World War II. As many of the plant-based oil makers were
founded in the Meiji Era (1868-1912) or the Taisho Era (19121926), my firm was one of the latest starters. It didn’t haveparticular companies from which it could buy raw materials. At
the time of its founding, raw materials were placed under quota
systems, so I hear that the company had difficulties in securing
them.

Soybeans may be able to contribute to the population issues ofthe future. It is predicted that the world’s population of around2050 will be 2.5 billion larger than that of today. How will they
secure food or water? In order to produce one kilogram ofsoybeans, 2.5 tons of water are necessary. In the case of beef,
however, 20.6 tons of water is said to be necessary. The energy
efficiency of soybeans is higher, and they are attracting attention
as a precious protein source.

Our senior colleagues sought raw materials overseas. They had
no other way except to use raw materials other companies
were not using, such as coconut oil and palm oil. As a result, mycompany established technologies other firms didn’t have, andwas able to develop its own goods.

Oil palm trees grow in tropical regions, such as Southeast Asia.
As the raw material is easily processed, palm is widely usedfrom food to chemical products. The production volume of palm
has become the largest among raw materials for oils and fats inthe world.

After I assumed the role of president, my company worked
out the “Fuji Oil Group Management Philosophy.” It reads,“The Fuji Oil Group seeks to develop the potential of foodingredients. We will contribute to the happiness and wellbeing of the people by offering delicious and healthy food.” Italso reads, “We work for people.” These are ideas that lead
to SDGs. My company’s own technologies and goods are also
playing important roles to realize what are described in the
management philosophy.

However, palm production is associated with environmental
problems, resulting from plantation development, as well as
child labor. In 2016, my company stipulated a “Responsible
Palm Oil Sourcing Policy” in which we promised that we willprocure only palm oil that was produced with consideration for
nature and the working environment.

For example, soybeans. The soybean business was in the red
for many years, but the second company president, Masataro
Nishimura, said, “We won’t know the value of this business
until our grandchildren’s generation.” I don’t know whether
there was a basis for that prediction. But my company has acorporate culture that thinks about businesses from a long-term
perspective. Therefore, we didn’t withdraw from the soybean
business.
Of the soybean, oil accounts for about 20 percent. The
remaining is strained lees, which was disposed of as industrial
waste in old times. In fact, protein accounts for as much as
30 percent of “okara,” or strained lees produced when tofu
(soybean curd) is made from soybeans. My company focusedon the protein, and developed a functional agent that made it
possible to produce cooking noodles and rice that do not stick
together and are easily raveled. The agent is used widely inprocessed food products sold in convenience stores and other
outlets.

Also in 2016, we started a project with a nongovernmentalorganization (NGO) to support local oil mills and small-scale
farmers. We’re supporting them to heighten productivity
and improve labor conditions. Palm oil has been referred toas “invisible oil” because its production process is opaque.
Clarifying that process leads to us making my company’s
management philosophy of “We work for people” a reality.
(This article is based on an interview by Asahi Shimbun Senior Staff Writer Katsuhiko Tagaya.)

SUPPORTING AFRICA WITH SOYBEANS
Fuji Oil Holdings is aiming to develop and manufacture soybean
food, such as soybean "meat," in Burkina Faso, West Africa. The
project is intended to improve the nutritional conditions of local
people and increase the incomes of soybean farming families, inwhich many women are working.In that country, the production
volume of soybeans for chicken feed is increasing sharply.
As the processing technologies are immature, however, thesoybeans are exported to neighboring countries with low added
value.The project was adopted by the Japan International
Cooperation Agency (JICA) as a business for SDGs in July. As aresult, its research costs are funded by the agency.
(Published on 24 August, 2018)38

Annex 2. 2030 Transform through SDGs - interview with 10 top executives of companies -Yoshihiro Hidaka

President, CEO and Representative Director,
Yamaha Motor Co., Ltd.

ⓒ朝日新聞社

Helping new markets through fishery support
Yamaha Motor Co. is selling outboard engines throughout theword. It is also making efforts in developing countries, such as
those in Africa, to exploit new markets.
We developed highly durable outboard engines for fishermen
who were rowing their boats by hand to go to the offing. As
the engines do not easily break down even with poor-quality
fuel, fishermen’s fishing areas expand. Therefore, the engines
contribute to heightening the economic levels of fishing villages.
However, our business does not end with the sale of theengines. Our company’s employees remain in the villages forthe time being for maintenance. In addition, we have introduced
fishing methods, such as longline fishing and dragnet fishing, tofisherman. During the period from 1977 to 1995, we publisheda newspaper-style “Fishery Journal,” which introduced Japanesefishing methods and fish storage methods with illustrations.
The next step is boats. My company is also manufacturing boats
made of fiber-reinforced plastics (FRP). If fishermen use wooden
boats, the quality of fish they caught may deteriorate by thetime they return to port. If boats are equipped with facilities tostore fish in cold conditions, they can keep the fish fresh. As aresult, fishermen can sell high-quality fish in distant places. The
productivity of fishermen drastically improves.
By manufacturing boats in those countries and raising
engineers, we can also generate new employment. As thesefishery-support activities have gained high praise in developing
countries, we’re also going to spread these activities positively
from now on.
What I’m feeling now is that young employees’ awarenesstoward social contribution is heightening. I think that if society
is filled with goods and education is sufficiently implemented
there, a desire to make the entire society better will spread.
Making it clear that what they’re doing is leading to solutions
for social problems is useful to maximizing the motivation ofyoung employees.
Activities for social contributions will not continue for a long
period if they are conducted on a voluntary basis. The activities
must come into existence as a business while solving social
problems. The coexistence of the two factors is a condition to
be able to continue the activities.

39

Motivation and a sense of mission are important for young
people. In addition to these, corporate managers are required
to judge whether the activities can come into existence asbusiness opportunities. If they can make the judgment, they cantackle projects while predicting circumstances of five years or
10 years later.
I think that activities for SDGs will also contribute to companies’
brand strategies.
My company is also engaged in installing small water
purification systems for providing safe water in countries, mainly
those in Africa. It installed a total of 24 systems in 12 countries
by the end of 2017. The business has produced few profits.
But we’re continuing to do the installations, thinking that wewant people in those countries to have good impressions of the
Yamaha brand in places close to their daily lives and become
familiar with it.
(This article is based on an interview by Asahi Shimbun Staff Writer Satoshi Kimura.)

ENGAGED IN ENVIRONMENTAL PROTECTION
ACTIVITIESYamaha Motor is Japan’s largest company in the marine
business, such as the production of outboard engines andboats. It is also manufacturing motorbikes and helicopters for
agricultural purposes. The company is advocating a “Kandocreating company” as its corporate purpose. (Kando means
simultaneous feeling of deep satisfaction and intense excitementthat people experience when they encounter something of
exceptional value.) In December 2017, the firm expressed its
participation in the United Nations Global Compact as part ofits efforts for SDGs.
In Japan, Yamaha Motor is engaged in activities to protect
loggerhead sea turtles, an endangered species, along the
Enshunada sea area's coast in Shizuoka Prefecture, where
its head office is located. It is also tackling activities to clean
Hamanako lake in the prefecture and to conserve coral reefs in
Okinawa Prefecture.
(Published on 25 August, 2018)

Annex 2. 2030 Transform through SDGs - interview with 10 top executives of companies -Ayako Sonoda
President, Cre-en Inc.

ⓒ朝日新聞社

Women in the workplace help companies grow
It is well known that when people do their shopping, women
hold the right to decide in many instances. That’s why it isindispensable for companies to be aware of women in thedevelopment of products. Existence of women who play activeroles in this field is not special anymore.
I’m also feeling that companies are placing growing importanceon perspectives for gender equality in various divisions. WhenI founded a marketing company centering on women 30 years
ago, I was looked at curiously only on the grounds that its
operator was a woman. But now the circumstances have greatlychanged.
However, the reality that the overwhelming majority of people
in the decision-making positions of big companies are men isunchanged. It’s like a bedrock. Scene where men, who are “elite,”
can’t express objections to top executives who set exorbitantgoals and take the executives’ intentions into accountexcessively are not rare. Such a trend was especially strong in acompany that was hit by a series of scandals. I couldn’t bear tosee scenes where employees who had rich personalities were
not able to display their abilities and were crushed under heavypressure.
For companies to continue to grow, it is necessary toreview systems that are not suitable for the times. To reset
wrong customs, the existence of women who have had little
involvement in them is indispensable. There will be firms that
revive themselves by promoting several women to management
positions.
The Law on Promotion of Women’s Participation andAdvancement in the Workplace, which took effect in 2016,
made it a duty for companies to work out action plans for thepromotion of women. Mainly because of that, the creation ofsystems for that purpose has made progress. In an IT service
company that I’m working for as an outside director, threeof the 14 directors and auditors are women. The number ofcompanies that have female directors will also increase in the
future.

What we must not forget is innovative changes in awareness.
In Japan, the ratio of women in managerial positions is low.
In addition, the ratio of women who say that they want to
aim for those positions is also low. It is partly attributable tothe fact that many mothers are facing difficulties in enrolling
their children in nursery centers due to the shortage of thosefacilities. However, we can’t ignore the existence of unconscious
bias concerning training and evaluation methods.
A preconceived notion that it is difficult to assign important jobs
to women whose working hours are shortened due to childrearing is strong. Though I’m engaged in SDGs, I was thinking,“I feel guilty if I have women who have just married go to a
graduate school to obtain an MBA.” When I realized that, I wasstartled. Do I have the same way of thinking toward men? I
realize the difficulties and importance of awareness reform.
Investors are also looking at efforts for gender equality. The
Government Pension Investment Fund (GPIF), which is a public
pension fund investor, is selecting companies in which womenare playing active roles and making investments in them. The
investment shows the fund’s assessment that organizations
that have women’s participation and diversity can produce
innovations and achieve good business results.
(This article is based on an interview by Asahi Shimbun Staff Writer Hiroyuki Komuro.)

FEMALE DIRECTORS’ RATIO AT 3.7 PERCENTThe Fourth Basic Plan for Gender Equality, compiled by thegovernment in 2015, set a goal of raising the ratio of female
directors at listed companies to 10 percent by 2020. The ratio
is rising year by year but still stood at only 3.7 percent as of2017. In June this year, the Tokyo Stock Exchange and the
Financial Services Agency revised the Corporate Governance
Code for listed companies. As for the makeup of directors, theyadded a description that they are seeking diversity, including
the fields of gender and internationality. They also urged listedcompanies to tackle the issue on their own initiatives.
(Published on 29 August, 2018)40

Annex 2. 2030 Transform through SDGs - interview with 10 top executives of companies -Michitaka Sawada
President and CEO, Kao Corp.

ⓒ朝日新聞社

Beauty care firm focuses along supply line to meet SDGs
At Kao Corp., we are involved in 11 of the 17 sustainable
development goals set out by the United Nations, including
measures to deal with climate change and conserve andsustainably use the oceans, seas and marine resources.
In 2009, Kao became the first Japanese company to join the
supply chain program established by the British nonprofit
organization CDP, which was once known as the Carbon
Disclosure Project. One aim of the program is to seek
information disclosure from suppliers about the environmental
effects of their corporate activities. At the root of our thinking
in joining the program was the feeling that unless we know
how raw materials used in our products were procured, we
will never be able to take action that leads to cutting carbon
dioxide emissions in a true sense.
Since last year, we have also begun an assessment of the
carbon dioxide emission reduction measures provided by our
suppliers through their information disclosure. Along with theassessment, we are also thinking together with our suppliers
about how to reduce the burden on the environment by,for example, deciding on the most appropriate volume andshipping frequency of raw materials as well as thinking about
how to reduce such emissions during transport of the materials.
Another step we have taken in promoting recycling of resources
with local communities is what we have called "recycreation,"
which is a combination of the words recycle and creation.
In Kamakura, Kanagawa Prefecture, we have produced recycledplastic by processing used containers for detergents, shampoos
and other products we have collected from local residents. The
plastic was used to create with those residents models of the
train cars used by Enoshima Electric Railway, a local rail line.
While returning resources into new products might be a good
idea, we also feel that children will become more interested
in the environment if they are involved more enthusiastically inreusing projects.
We have emphasized various activities to contribute to asustainable society because we feel that becoming a company

41

that is supported by consumers and local residents will leadto long-term growth as well. There has been an increase in
the number of consumers who choose products that are ecofriendly. Institutional investors have also begun focusing on "nonfinancial" factors that may not pop out of financial statements
to determine the long-term potential growth of a company.
To further strengthen our efforts in such non-financial areas, weestablished a new in-house section in July that we call ESG. The
three letters are the first ones in the words environment, socialand governance. We feel this new section will closely tie inwith our SDG efforts. We have placed an American to head thesection in the hope that its activities can be expanded aroundthe world.
Kao is a manufacturer of daily consumer goods, such as
shampoos, beauty care products, detergents and cosmetics.
As a company that manufactures products that are among theclosest to consumers, we feel there are many messages that
we can pass on to them. I intend to play a leading role in an
aggressive management style to establish Kao as one of the top
companies in SDGs.
(This article is based on an interview by Asahi Shimbun Staff Writer Shinji Hakotani.)'ECO TOGETHER' MARK ON CERTAIN
PRODUCTS
In 2009, Kao released its Environmental Statement todemonstrate its intent to reduce the burden on theenvironment at every stage, from procurement of raw materials,
manufacturing and delivery of those products to the consumer.
It has created an index to determine the environmental effectwhen it comes up with a new product to assess and analyze
the process of introducing a new item. It has also included an"eco together" mark on labeling for products that have met
certain criteria established by the company.
(Published on 30 August, 2018)

Annex 2. 2030 Transform through SDGs - interview with 10 top executives of companies -Kohzo Takaoka

President and CEO, Nestlé Japan Ltd.

ⓒ朝日新聞社

Cafe coffee pots keep elderly connected
The 17 sectors covered by the SDGs are all major issues facing
society. There has been a rapid spread in recognition among
companies that they had to think about how to engage in thoseissues.

and converse with others there can prevent the need for elderly
care and will also lead to a reduction in medical costs. This is
in line with the SDGs that calls for ensuring healthy lives andpromoting the well-being for all at all ages.

What are the reasons that make it necessary for companies
to become involved in such issues? One is because suchsocial issues will never be resolved unless there is long-term
engagement, while another is that no project can be maintained
for long unless there is some profitability in it. Continuingwith charitable activities will not be possible if corporate
performance worsens and that would limit the number ofpeople who benefit from such activities.

We have also marketed a barista coffee machine that has acommunication function installed. Whenever a cup of coffee
is consumed, that information is transmitted to friends andchildren who may reside at a distance. That helps friends
and family know the senior citizen is well. Some families havepurchased two such machines and in the first two months after
the machine went on sale, we were able to sell about 100,000
units. By also connecting a specialized tablet computer,messages can also be sent by talking to the machine.

Even before the SDGs were adopted by the U.N., the thinking of"creating shared value" (CSV) spread among companies in theWest from about 2011.
We have made the concept of resolving social issues throughbusiness activities as our corporate mission and responsibility.
But it also provides us with business opportunity. Responding
to social issues can lead to the development of groundbreaking
products and services. The concept is also quite compatible
with the thinking on the part of companies of including SDGs
within their own company management.
One proponent of CSV was Peter Brabeck-Letmathe, chairman
emeritus of Nestle. It became more widely known after thenoted business management scholar Michael Porter wrote anarticle about the concept. The concept is often confused with
CSR (corporate social responsibility), but the two concepts aretotally different.
Among the CSV themes that Nestle has focused on globallyare nutrition, protecting water resources and improving life infarming villages. In Japan, which boasts the top longevity rates
in the world, the CSV theme we are emphasizing is the healthof senior citizens.
For example, in 2013, Nestle Japan cooperated with the city
government of Kobe, where our company headquarters arelocated, to begin a project involving cafes designed to preventthe need for elderly care. We now have 76 such cafes in various
locations around Japan. We have donated Nescafe Barista
coffee machines so that senior citizens can gather together
periodically for a cup of coffee. Having them walk to the cafes

There are many companies that have become interested in
SDGs. But simply staring at the 17 themes will not lead toany sense of what each individual company should do. The
Japanese have been educated to solve problems they arepresented with, but they are less skilled at discovering what the
problem is or where problems may exist. I believe they should
first start by trying to find specific problems that need to beresolved.
(This article is based on an interview by Asahi Shimbun Senior Staff Writer Katsuhiko Tagaya)

NESTLE FOUNDER DEVELOPED POWDERED
MILKWith its global headquarters in Switzerland, the Nestle group is
the world's largest food products company. Since its founding
in the 19th century, the company has always dealt with issues
facing society. At that time, Switzerland had a high infantmortality rate due to malnutrition. Henri Nestle, one of thecompany founders, developed powdered milk as a substitutefor mother's milk. Even today, Nestle continues to provide
technical instruction as well as saplings to farmers of cacao
used to produce chocolate. As one way to protect water
resources, Nestle has reduced the amount of water used forevery ton of its manufactured products by about 40 percent
in comparison to fiscal 2007 levels. In terms of nutrition, thecompany is working on cutting down on the sugar and saltcontent of its products.
(Published on 31 August, 2018)42

Annex 2. 2030 Transform through SDGs - interview with 10 top executives of companies -Shinya Katanozaka

President and CEO, ANA Holdings Inc.

ⓒ朝日新聞社

Airlines can help thwart human trafficking
A big challenge we are faced with at ANA Holdings Inc. is how
to improve fuel economy and cut the emissions of carbon
dioxide as an airline group. The perspective of sustainable
development goals (SDGs) is integral to the airline industry,
given the diversity of customers whose backgrounds vary.

company attend those meetings. As SDGs encompass 17 goals
spanning to broader areas, we should look at them not in anarrow framing just as part of a contribution to society, but asquestions on a global scale that businesses are expected to finda solution to.

We stated the need for having the viewpoint of SDGs in ourbusiness operations when we released our group’s annual
report in 2016. In the 2017 annual report, we sorted out
challenges that could affect our management in the areas of theenvironment, human rights and local revitalization and showed
those challenges’ relevance to 17 SDGs on a chart. In the 2018
annual report, we carry a discussion with a university professor
who has an expertise in SDGs.

What is indispensable to businesses are sustainability andgrowth, which are exactly what SDGs are calling for. We needto make profits in order to contribute to achieving the SDGs. In
other words, striving to achieve SDGs is managing our company
itself.

Since ANA Holdings’ businesses are globally operated, ourtasks includes a response to human trafficking. Many aircraft
have been used to transport victims of child labor, forcedlabor, sexually oriented businesses and other forms of humantrafficking. Our cabin crews can thwart human trafficking
attempts if they detect something suspicious among passengers
and alert authorities to it. In the United States, there was a casein which flight attendants trained in the field saved passengers
from falling victim to human trafficking. Such training was given
by private groups well versed in the issue.
In our human rights issue policy released in April 2016, ANA
Holdings pledged to fulfill its corporate responsibility by paying
respects to human rights issues in our business activities.
Some of our directors were initially cautious about making thecommitment, but they subsequently agreed on it after a seriesof discussions held within the company to take a clear positionon the human rights issue. This year, we published an annual
report on the human rights issue in which we discussed ourapproach to the question. Part of the report is dedicated to thesubject of foreign workers.
Around 2004, when I assumed the post as chief of thecompany’s human resources department, the concept ofcorporate social responsibility was spreading among Japanesebusinesses. In the new post, I began attending gatherings
organized by the Japanese arm of the U.N. Global Compact,which advocates the protection of the environment and humanrights, to learn about biodiversity and child labor. ANA Holdings
is still involved in the effort by having senior officials from ourAnother area we have been endeavoring is revitalizing local
regions. It is because we cannot maintain local lines unlessa regional economy is robust. The Onsen & Gastronomy
Tourism Association, set up two years ago with its secretariat
established within the ANA Strategic Research Institute, anaffiliate, is part of the efforts in this direction. The purpose of
the association is to offer chances to vacationers to enjoy local
cuisines and culture while visiting onsen hot spring resorts invarious regions. Walking and other events are offered in eachregion so that visitors can help the cause of SDGs while having
fun.
(This article is based on an interview by Asahi Shimbun Staff Writer Hironori Kato.)

STEPPING UP FIGHT AGAINST NATURALDISASTERS
After western Japan was hit hard by torrential rains in July, ANA
Holdings offered free seats on its flights to volunteers heading
to affected areas to help victims. A similar effort was made lastyear in the aftermath of a series of strong earthquakes that had
shaken Kumamoto Prefecture. The airline offered free tickets topeople who led efforts to rebuild local regions devastated by
the 2011 Great East Japan Earthquake and tsunami as well as
the 2004 Niigata Chuetsu Earthquake so that they will also beof service to the affected people in Kumamoto. The company isstill involved in efforts to rebuild the Tohoku region stricken by
the Great East Japan Earthquake. For example, ANA Holdings
sends some of its employees to Minami-Sanriku, Miyagi
Prefecture, every year to have them join the operation to thin
forests there.
(Published on 1 September, 2018)43

Annex 2. 2030 Transform through SDGs - interview with 10 top executives of companies -Kengo Sakurada

President and CEO, Sompo Holdings, Inc.

ⓒ朝日新聞社

Farm insurance cuts risks in drought regions
We are now in the process of moving away from being acompany involved only in insurance. For a long time, insurancecompanies have been selling policies with the basic questionof "What would you do if something should happen?" That
covered everything from becoming ill or being involved in an
accident. However, we began thinking if the company should
continue with just that mindset.
Moreover, the market will shrink with the declining populationin Japan. While there are some who feel the trend can be dealt
with by developing new products that cover new risks, I truly
feel such a path will be filled with difficulties.
With that as background, we changed the way our company
was structured. We moved to a thinking of creating a "themepark" that could provide services for the security, health andwell-being of our customers by working to resolve social issues
through our business operations.
That is nothing less than the sustainable development goals(SDGs) that call for eradicating poverty, eliminating disparityand protecting the environment.
Within the framework of an insurance company, we have, forexample, been selling a "climate index insurance" in developing
nations. Developing nations, where agriculture is the mainindustry, quickly feel the effects of climate change. In Southeast
Asia and India, the damage to rice farmers from drought is very
severe. To deal with the issue, we have begun selling a productin Thailand that pays out insurance benefits when the amountof rainfall is low.
There were some regions in Thailand that suffered from droughtfor two straight years so there has been a growing recognitionof the need for such insurance. We want to continue expanding
insurance products related to farm products in various regions
by also combining the farm insurance that had been handled by
the U.S. insurance company that we acquired in 2017.
In Japan, we are placing greater emphasis on care services
targeting senior citizens. When we entered the field five years
ago, there were some within our company opposed to the plan,but I made the decision to proceed because I felt that unlesssomething was done about elderly care, Japan would face a
difficult future.
Before we entered the field, I never imagined there was such a
serious shortage of personnel for elderly care services. Japan's
elderly care service will not be sustainable unless we also

promote a reduction of the burden on workers and increasing
efficiency while at the same time also upgrading the quality ofthe service that we provide.
As one way to deal with that issue, we have mobilized every
aspect of digital technology that we could find. For example,
at some of our facilities, we have installed sensors to help
determine if a resident wants to urinate. That leads to a
reduction in the burden on facility workers. Another project
covers the compilation of care plans. We are seeking toestablish a system using artificial intelligence that would provide
effective advice from the data that has been accumulated.
Another important element will be the introduction of robots to
reduce some of the heavy labor tasks involved at care facilities.
While investment for such projects will extend from several
billions of yen to several tens of billions of yen, we feel it ispossible for a company with a certain capital level. We wantto create a standard for the industry in Japan so that we canresolve the various issues now found in the elderly care sector.
While there are many specific programs that we areundertaking, the important factor will be to incorporate suchprojects into the company's organizational culture. A key point
will be whether we can conduct management oriented toward
the providing of security. I believe we can make progress in the
SDGs if we conduct our operations as a result of such efforts.
(This article is based on an interview by Asahi Shimbun Staff Writer Shuhei Shibata.)

OTHER PROJECTS DESIGNED TO REDUCE
RISKS
The property and casualty insurance industry has long been
involved in efforts to deal with climate change and disasterprevention as well as activities to reduce accidents because thefrequency of natural disasters and accidents has a direct impact
on its profits. In recent years, property and casualty insurancecompanies have moved beyond selling only insurance policies
and started various projects designed to reduce risks, suchas the cybersecurity of companies. From 2018, the General
Insurance Association of Japan has named as an important
issue contributing to the achievement of the SDGs. It plans to
consider what issues are involved in relation to the SDGs andrelease the results of that study after revising the association's
code of conduct to reflect those results.
(Published on 5 September, 2018)44

Annex 2. 2030 Transform through SDGs - interview with 10 top executives of companies -Yoshimitsu Kobayashi

Chairman, Keizai Doyukai (Japan Association of
Corporate Executives),
Director of the Board, Chairperson, MCHCⓒ朝日新聞社

Strong possibility exists for SDGs, profits
I have always said there are three core factors needed inbusiness management--heart, technique and physical condition.
Physical condition refers to the soundness of company
management as displayed by various financial indices.
Technique refers to technological innovation that allows acompany to move into new frontiers.
Heart refers to social aspects, meaning corporate executives
must think about people, society as well as the global
environment. That is nothing less than what is involved in thesustainable development goals (SDGs).
There was a period in the past when company management
could only be concerned with making a profit. In the 1960s and1970s, chemical manufacturers were one of the main sources ofpollution. I joined Mitsubishi Chemical Industries Ltd. (now partof Mitsubishi Chemical Holdings Corp.) in 1974 and I remember
thinking, "Why did I ever join this company?" when I saw thebright yellow waters of Dokai Bay (in Kita-Kyushu) where thecompany had a plant.
In 2005, when I became the managing corporate executive
officer in charge of research and development, I thought about
where the company should be in 10 years' time. At that time,
I decided to use "sustainability" in terms of resources and theenvironment as well as "health" and "comfort" as the standards
for choosing research themes.
After becoming president of Mitsubishi Chemical Holdings, I
placed an index for sustainability as a core element of company
management.
We are now in the process of developing lightweight parts forautomobiles as one way to contribute to energy conservation.
We are also engaged in developing materials for the batteries
that are indispensable for electric cars as well as biodegradable
plastics derived from plants. We believe these efforts are
related to seven of the 17 SDGs, including goal three about
ensuring healthy lives and promoting the well-being of all aswell as goal 12, which calls for responsible production andconsumption.
At Keizai Doyukai, where I serve as chairman, we have also
placed in the forefront the concept of "Japan 2.0" to deal with
globalization, digitalization and socialization. We named it 2.0
with the intention of breaking out of the mold of "1.0," which
can be considered the economic and social system createdthrough the successful experience in the postwar era, because
we feel there is no future by simply following the same course
as the past.
In autumn 2017, we established a committee within Keizai
Doyukai to think about how we should deal with the SDGs. We
are also operating a number of other committees while seeking
out compatibility with the 17 SDGs.
One issue we have to deal with is profitability. That involves
trying to think about how to turn a profit in the various
projects related to promoting the SDGs. Even if a technology
is revolutionary, no company can continue with it as long as
it only produces losses. We have accumulated data for close
to 10 years after pushing sustainability to the front of ourmanagement principles and we have reached the conclusionthat there is a positive correlative relationship between properly
dealing with the SDGs and increasing profitability.
One poem I remember reading as a college student was by the
French writer Arthur Rimbaud. One passage from his "A Season
in Hell" raised a question about whether the times could truly
be considered modern since so many toxic products were being
manufactured. We do not currently have the luxury of stopping
what we are doing. The industrial sector as a whole must cometogether and push forward the SDGs.
(This article is based on an interview by Asahi Shimbun Staff Writer Hironori Kato)

PURSUING SUSTAINABILITY AT HIS MAIN JOB
Kobayashi also serves as chairman of Mitsubishi Chemical
Holdings, Japan's largest chemicals manufacturer. It has raised
the Japanese term "kaiteki," which means comfortable orpleasant, as the banner for management. Behind the slogan isthe desire to maintain a situation that is comfortable to people,
society and the globe. It has pursued sustainability in society by
manufacturing lightweight, durable materials as well as water
purifying technology. One company under the group, Mitsubishi
Tanabe Pharma Corp., is actively engaged in regenerative
medicine.
At a July Keizai Doyukai seminar, an appeal was approvedthat includes wording urging members to resolve global social
issues symbolized in the SDGs through their individual company
operations.
(Published on 6 September, 2018)45

Annex 3. Example initiatives by businesses on the SDGs, “Promotion of Gender Equality as a Focus of Diversity Management”

ANA Holdings Inc.
ANA promotes diversity, inclusion and work-style reform basedon the idea that its people are both its greatest asset and thekey differentiator to succeed in the global environment. Womenaccount for more than half of our employees. The following
initiatives in both corporate culture and environment combine
to serve as a boost to women’s advancement.
【Diverse career paths】ANA has set up the “manager trackchallenge system” in which employees can work to become
managers. In addition to the submission of an application
form, applicants are evaluated by a written test, interviews andpresentations. It has in-house certified career consultants thatare always available to counsel employees on career paths.
【Flexible work styles】Employees can utilise the systems for
shorter working hours and fewer working days until the end of
the fiscal year in which the employee’s child turns nine yearsof age. Based on the belief that shorter working hours do
not imply any difference in ability, even employees with shortworking hours can obtain managerial positions, and duties are
premised on this way of thinking. Employees with fewer working
days can choose to work at a 50% or 70% rate. Since adopting
these systems, the number of flight attendants with children
has increased and the turnover rate for flight attendants has
dropped to the 5% range.

managers would like to see aim for management positionsin the future to participate together with current managerial
staff. When employees get a chance to hear first-hand frommanagers, it instills in them the awareness and ambition to takesatisfaction in their work and aim for managerial positions.
【Employee proposal system】ANA has a system whereby
employees can volunteer proposals. This system creates newvalue, contributes to developing human resources that make themost of diversity among employees, and boosts job satisfaction.
The in-house childcare centres it established at Haneda Airport
and Okinawa Airport, which are open 365 days a year, wereborn out of this proposal system. The ability to easily entrust
their children any day of the week, every day of the year, hasmade it easier for its employees to do their jobs.

【Fostering women managers】Since 2014, ANA has held the
ANA Women's Innovative Network for Diversity (ANA-WINDS)
to support networking among management-level womenacross companies and divisions. It encourages employees that

ANA WINDS group photo

Koei Research & Consulting, Inc.
Koei Research & Consulting (KRC) is a development consultancy
firm that contributes to Japan’s international cooperation. It
is involved in numerous projects in developing countries in
the areas of economic and human development. It employs
enthusiastic and highly-motivated specialists with expertiseand experience related to education, health, medical care,and peace-building, regardless of gender. Currently, 70 of its
149 employees (47%) are women, with some departments
comprising almost all women. KRC has a free and open
corporate culture in which it is easy to voice opinions. It has
put in place shorter working hours and a telecommuting system
based on views expressed by women employees.

developing countries diversify, more and more areas require
the participation of women. KRC will continue to engage inwork-style reforms, both within the company and in the entire
industry, in order to secure high-performing human resources
and promote the advancement of all people throughout thecompany.

Based on the philosophy of Japan’s foreign aid hinged on
concern for the environment and societies within international
cooperation, the gender perspective is incorporated into
many JICA projects. Each and every one of the employees
has gained a wealth of experience and insight on gender anddevelopment through JICA’s projects, and these have fostered
their awareness on gender equality. KRC sees the SDGs as anopportunity to share these values within the company.
KRC has concrete initiatives in eight areas of the SDGs
Action Plan of the Japanese government, outlined in its midterm management plan. Balancing home and work life is anunavoidable topic of concern for its development consultants
with frequent overseas business trips. At first glance, one
might think that field development consulting in developing
countries is a job dominated by men, but as the needs of

KRC employees with its “Eruboshi” certification46

Annex 3. Example initiatives by businesses on the SDGs, “Promotion of Gender Equality as a Focus of Diversity Management”

Konica Minolta, Inc.
Konica Minolta believes that in order to stimulate innovation,
it must create work environments where diverse employees
can fully manifest their potential and creativity regardlessof nationality, gender or age. To this end, it is reforming its
organisational culture and practices to promote diversity, workstyle reform and support for career development. Its main
initiatives are as follows.
【Leadership and enhancing genuine understanding】Konica
Minolta promotes diversity and inclusion based on the viewthat diverse human resources generate new and innovativeideas and contribute to solving the problems of customers
and society at large. Women’s advancement is an aspect ofdiversity. It has worked to promote genuine understanding
among employees, sending out a message from its leaders
encouraging each employee to “shine their own light”. It holds
workshops for employees at the department chief rank andabove focused on encouraging employees to view diversity
as a personal issue of importance and to make the necessarychanges to their daily behaviors.

leave or periods of shorter work hours. In 2011, it eliminatedhousing allowances and switched only to family allowances
especially focused on fostering the next generation. It has madeimprovements to work environments to promote innovationand provide diverse options for work styles, including remote
working irrespective of working hours and location.
【Collection, analysis and disclosure of gender disaggregateddata】Since 2004 Konica Minolta has disclosed information
corresponding to ESG surveys. It has been successively selected
as an index component of the MSCI Japan Empowering Women
Index (WIN) since its establishment in 2017. At present, aside
from the gender-specific data it is obligated to release, it alsocollects and analyses data on the salaries of men and women
doing jobs of a similar nature and utilise results to promote
diversity in the company.
The know-how on business solutions that it has accumulated
within the company through these initiatives is linked toproposals to its customers on work styles.

【Changing to systems that emphasise ability and outcomes】Thebasis of Konica Minolta’s evaluation system is “manifestation ofability through results and processes”. Along these lines, age
is not a factor in its salary determination schemes. Based onrequirements made available to all employees, it has adopted asystem to fairly evaluate the abilities employees exhibit throughtheir work and the results they achieve. In fact, employees canbe promoted even prior to or immediately following childcare

Workshop for upper management

Sumitomo Chemical Co., Ltd.
Sumitomo Chemical believes in “the need to create work
environments where all employees can maximise their potential
while in differing situations”. Toward this end, it has focused on
promoting women’s advancement and made enhancements to its
environment to facilitate the advancement of women. In 2013, it
signed the WEPs based on leadership from the top. Likewise, it has
utilised the WEPs gender gap analysis tool to identify challenges
within the company and has worked to make improvements.
One area where Sumitomo Chemical has taken a lead over othercompanies is the establishment of in-house childcare centres.
Between 2008 and 2014, it opened a total of six childcare centres
at different locations. At present, approximately 170 people areusing these facilities. In addition, it has set up various programmes tosupport work-life balance, such as childcare leave, elderly-care leaveof absences and time off, maternity support leave and special leave
when a spouse is transferred overseas. More and more employees
use these programmes every year. Moreover, it has continued to
implement “Women’s Leadership Development Academy” aimed
at raising awareness among women employees at the sub-section
chief rank, and trainings for managers aimed at raising awarenessand promoting understanding on women’s advancement.
Sumitomo Chemical has used grass-roots information sharing
to boost use of these programmes. For instance, at one of its
locations, a few women employees who have experience utilising
the programmes have shared easy-to-understand informationon the programmes via its intranet. At another location, working
mothers periodically lead luncheons. Open information and47

opinion exchange takes places at these gatherings, regardlessof gender, whether one has a family, job title or job description.
Anyone can participate and even executives attend.
Sumitomo Chemical also engages in activities to contributeto women’s advancement outside the company, including
participation in programmes that foster the development of
women human resources in science, technology, engineeringand mathematics targeted at female students. It actively
communicates information on these initiatives both inside andoutside the company to enhance the value of the company andboost the motivation of its employees.
It aims to continue to implement measures to promote diversity
and inclusion to accelerate innovation and link it to thecontinued growth of its group and contributions to the SDGs.

An in-house childcare centre
continues to operate at Tokyo
headquarters.

Annex 3. Example initiatives by businesses on the SDGs, “Promotion of Gender Equality as a Focus of Diversity Management”

Nabtesco Corporation
Nabtesco is a BtoB machinery component manufacturer that
operates a wide range of businesses centred on “motion
control technology”, which moves and stops objects in a
precise manner. It is promoting initiatives in diversity basedon the belief that it needs to incorporate differing skills andviewpoints in order to expand its business and products moreglobally and in new areas. It is focusing particular effort in theacquisition of new human resources, with a goal of including
30% non-Japanese nationals and 20% women in its hiring of
new university graduates. To this end, it has traveled to Hong
Kong, Korea and Viet Nam to secure high-performing humanresources. It has learned that human resources from a variety ofbackgrounds have positive impacts on the company.
Due to the nature of its business, the number of women
employees in Nabtesco has been few to date. However,that number has increased in recent years and changes areevident in ways of working. From the start, it has
a supportive corporate culture and programmes
to respond to the needs of employees regarding
personnel transfer and other areas of concern. For
instance, with the leadership of its human resources
department, it realised equal pay for work of equalvalue in 1998. Moreover, based on appeals from its
labour union, programmes for both shorter working
hours and flexible working hours were madepossible in 2011. A system for telecommuting waslaunched in June 2018, and payment of a limitedtime smart work bonus began at the timing of

52018 year-end lump-sum bonuses. This system calculates andpays bonuses and lump sums to those in departments thathave improved productivity and also raised the rate of taking
paid annual leave, with the amounts depending on levels of
improvement. Nabtesco expects that its corporate culture that
attaches greater weight to results as opposed to the length ofworking hours will contribute to improved work-life balance.
Additionally, from January 2019, it adopted a system of inhouse recruitment. Departments that are recruiting and job
descriptions are posted within the company. Employees canapply at will, and decisions on job transfers are made basedon interviews. It expects this system to promote the selfdirected career development of employees and also prevent
5
women employees from falling into the “mommy track” due tochildbirth and childcare.

Four types of reform for work-style reforms‌A style of working mothers: while a balance between work and childcare is achieved, careers are far-removed from salary increases and promotions.

48