2nd November 2018

Report on 2018 Business and Human Rights Conference in Tokyo“Bipolarization on UN Business and Human Right”
The 2018 Business and Human Rights Conference in Tokyo, hosted by Caux Round Table Japan (CRT
Japan), co-hosted by the Business and Human Rights Resource Centre, and the Institute for Human
Rights and Business, was held on the 13th and 14th September, 2018.
There were 126 participants in total (51 companies, 19 organizations: NGO/NPO/University).
The conference had the three pillars, focusing on (1) enhancing awareness and understanding on thelatest trends in business and human rights, (2) facilitating collaborative work to promote a respect ofhuman rights and (3) facilitating the implementation of United Nations Guiding Principles on Businessand Human Rights. The global experts and attendees discussed how to address a wide range ofbusiness risks related to CSR on supply chain and build a responsible supply chain.
On the first day at the conference, the foreign rights experts introduced the latest global trends on
business and human rights including trends on business and human rights in Asia, labour issues atfactories in Thailand, trends on responsible supply chain, business and human rights legal risks, humanrights impact assessment, and migrant workers in supply chains and Japan. Then, Japanese companies
introduced their business cases of business and human rights initiatives and responsible supply chain
initiatives. At the end of the first day, the workshop was provided for the foreign experts andparticipants to exchange views on what companies should focus on and how they should do to advancea respect of human rights.
On the second day of the conference, CRT Japan reported on the outcomes of the Stakeholder
Engagement Programme. Also, foreign organizations introduced human rights due diligence tools
towards realizing a responsible supply chain. Then, the business cases were introduced including theworkshop for preventing human trafficking in Airline industry in Japan, the dialogue between theJapanese companies and ESG investors, and the emerging human rights issues in Japan.
Prior to the conference, the sponsoring companies had an exclusive dialogue with overseas humanrights experts from the leading initiatives in this field. They introduced their human rights and CSR
efforts, and exchanged the views with the experts on how to enhance their management. The
companies found the dialogue very useful in gaining new perspectives and improving their humanrights due diligence.

Caux Round Table Japan
Shibuya Sanshin Mansion 505, 29-33 Sakuragaoka-cho Shibuya-ku Tokyo 150-0031 JAPANhttp://crt-japan.jp/en/

Overview of 2018 Business and Human Rights Conference in Tokyo
Host
Caux Round Table Japan (CRT Japan)
Co-HostInstitute for Human Rights and BusinessBusiness & Human Rights Resource Centre
Sponsor*ANA HOLDINGS INC.
*FUJI OIL HOLDINGS INC.
*Shiseido Company, Limited
Cooperation*CHUGAI PHARMACEUTICAL CO., LTD.
*FUJIFILM Holdings Corporation*MORINAGA MILK INDUSTRY CO., LTD.
QUICK Corp.
(* are the companies that had an exclusive dialogue with overseas human rights experts)
Support
E-Square Inc.
Sustainability Communication Hub Co., Ltd.
TOPPAN PRINTING CO., LTD.
YUIDEA Inc.
Japan NGO Center for International Cooperation
Social Design Lab., Rikkyo University
Foreign Organization
Institute for Human Rights and Business (IHRB)Business and Human Rights Resource Centre (BHRRC)
Bluenumber Foundation
The Danish Institute for Human Rights
Sedex
Verisk Maplecroft
UNDP Bangkok Regional Hub

Caux Round Table Japan
Shibuya Sanshin Mansion 505, 29-33 Sakuragaoka-cho Shibuya-ku Tokyo 150-0031 JAPANhttp://crt-japan.jp/en/

The First day of the Conference
Opening Remarks
Hiroshi Ishida, Executive Director of CRT Japan, introduced the role of CRT Japan as a bridgeconnecting Japan and the World, connecting businesses and stakeholders, and its activities in line withthe three principles of fairness, integrity, and honesty in order to define “what is right rather than who
is right.” He shared his expectation that this conference would be a learning place for the foreign
experts and attendees, and would be beneficial to the attendees in facilitating their human rights
initiatives. In addition, as human rights issues became more complicated and serious during a time of
rapid globalization, there were increasing calls from various stakeholders for companies to takeconcrete action to address human rights issues. He shared that it was important to respond to such calls
so as to continue to conduct a business smoothly, and this would lead to the gain of trust from theirstakeholders and sustainable operations of business. Lastly, he shared that as institutional investors
appeared to be more interested in looking at ESG performance of companies, Japanese companies
should enhance their ESG performance and disclose information more fully in the future.
Introduction to Global Trends of Business and Human Rights
In this session, an extensive panel of human rights experts gathered to share global trends of businessand human rights, and expectation for Japanese companies. The experts were from UNDP Bangkok
Regional Hub, Labour Rights Promotion Network, Bluenumber Foundation, Sedex, DLA Piper, theDanish Institute for Human Rights, Verisk Maplecroft and Institute for Business and Human Rights.
Livio Sarandrea from UNDP Bangkok Regional Hub noted that ASEAN countries were developing
National Actin Plans based on the UNGPs and policies that demanded Human Rights Due Diligence
to companies that were taking into consideration for investing and selling products in the region.
Sompong Srakaew from Labour Rights Promotion Network shared the reality of human trafficking in
Thailand, and mentioned the importance for companies to address the issue of human trafficking withhigh transparency and provide them with access to remedy. Hiroshi Ishida from CRT Japan expressed
concern that labour disputes occurred frequently in Japanese companies in Thailand, and unfortunately
the reputation for Japanese companies was declining. Puvan Selvanathan from Bluenumber
Foundation stated that in this digitised era, each person became an information sender, and Japan
should leverage its geographical advantage to manage Asia`s supply chain with the use of IT.
Dan Murray from Sedex stated that in the run up to the 2020 Tokyo Olympic Games, there wereincreasing demands from stakeholders for companies to conduct a responsible procurement practiceand disclose information. And, he mentioned that it was important for buyers to gain understanding
and cooperation from their suppliers towards the development of responsible supply chains. Daniel
D'Ambrosio from DLA Piper Global Law firm noted that there were emerging transnational legal risks
to companies as legislation proceeded in the western countries, active engagement with stakeholders
around the world to understand business and human rights risks and opportunities was important.
Tulika Bansal from the Danish Institute for Human Rights stated that it was important that as part ofhuman rights due diligence, companies should assess and address negative impacts through humanrights impact assessment, engage with rights-holders, and publish their findings and action planaddressing impacts. James Allan from Verisk Maplecroft mentioned that as expectations werebroadening from civil society to regulators and investors, companies should establish due diligenceprocesses with human rights impact assessment at centre, and move to provide access to remedy.
William Rook from the Institute for Human Rights and Business noted that as risks of forced labour
and trafficking in supply chains were increasing, companies were required more to develop specificpolicies, identify and mitigate modern slavery risks, and report on modern slavery risk.

Caux Round Table Japan
Shibuya Sanshin Mansion 505, 29-33 Sakuragaoka-cho Shibuya-ku Tokyo 150-0031 JAPANhttp://crt-japan.jp/en/Introduction to Business Cases on Business and Human Rights by Japanese Companies
The afternoon session at the conference introduced business cases by Japanese companies on how they
fulfil their responsibility to respect human rights required by the UN Guiding Principles on Businessand Human Rights. The Japanese companies illustrated their business cases on how they strived tobuild a responsible supply chain.
Takashi Matsuse from Kao Corporation, shared their human rights due diligence process toward theachievement of a sustainable and responsible procurement practice. He noted that Kao utilized thecurrent monitoring and Sedex to identify potential risk points in their supply chain, facilitated further adialogue with farmers at sites, and planned to utilize Bluenumber as a tool to develop traceability of
raw materials.
Tamaki Shimamoto from Shiseido Company, Limited, shared that Shiseido received high evaluationin Japan in the fields of women`s empowerment and diversity promotion, as it enhanced its supporting
programs such as female researcher science grant and child-nursing room. To further facilitate, henoted that Shiseido would strengthen human rights efforts and improve transparency and traceabilityof supplier information.
Shigeru Sugimoto from ANA HOLDINGS INC., introduced human rights impact assessments that
ANA conducted in 2016 as a part of their human rights due diligence. With the use of social andenvironmental data provided by Verisk Maplecroft and interviews across ANA Group conducted withCRT Japan, ANA Group analyzed the likelihood of any negative impacts, and developed measures tomitigate and prevent these negative impacts. And, he announced that ANA Group published its humanrights report.
Maki Kojima from FUJIFILM Holdings Corporation shared its Sustainable Value Plan 2030 as the
CSR Plain of the Fujifilm Group, and introduced their initiatives to maximize positive impacts andminimize negative impacts across its value chain. Also, in the facing of the expanding regulatory
control on human rights issues and through dialogue with international human rights NGOs, theyplaced top priority on identifying and addressing potential human rights issues in the supply chain andwith employees in the Group. She also introduced their CSR procurement activities in Japan, China
and the United States and internal audits for the production sites of the Group.
Workshop with the foreign experts and attendees
This workshop was conducted for the foreign experts and domestic participants to discuss how
companies could facilitate their human rights activities. According to the result of the pre-survey
conducted to the participants, they had the most concerns on how ESG investors considered humanrights issues and how companies could conduct human rights impact assessment. Also, when
conducting human rights impact assessment and addressing supply chain issues, they shared that they
faced various obstacles such as failure to gain understanding and cooperation from management,
absence of the department in charge of addressing human rights issues, and lack of cooperation
between the relevant departments, which made it difficult for them to facilitate their activities. In
response to these problems, the experts and participants learned that it was important to take time toprepare for internal education/training to raise awareness on human rights issues among management
and employees.

Caux Round Table Japan
Shibuya Sanshin Mansion 505, 29-33 Sakuragaoka-cho Shibuya-ku Tokyo 150-0031 JAPANhttp://crt-japan.jp/en/

The Second day of the Conference
Report on Stakeholder Engagement Programme
Since 2012, Nippon CSR Consortium, whose secretariat is CRT Japan, conducted the Stakeholder
Engagement Programme to facilitate understanding and implementation of the UN Guiding Principles
on Business and Human Rights by companies. The programme in 2018 was held in Japan, Thailand,
Malaysia and Indonesia. This session introduced domestic and Asian human rights issues identified
through the programmes and ideas how to develop the programmes further. Minoru Matsuzaki fromCRT Japan reported on the Stakeholder Engagement Programme in Japan. He shared that theparticipants learned human rights issues in supply chain in Asia, human rights issues in Japan, andexpectations from institutional investors in Japan, and then identified sector specific human rights
issues. Akiko Sato from CRT Japan reported on the Stakeholder Engagement Programme in Thailand,
Malaysia and Indonesia. She shared that the programme in Thailand focused on human trafficking
while the programme in Malaysia and Indonesia focused on palm oil. She shared the human rights
issues that the participants learned from the programme.
Report on Stakeholder Engagement ProgrammeThis session introduced tools that enabled companies to evaluate human rights risks including supply
chain, identify and mitigate negative impacts on human rights, and disclose outcomes by corrective
actions towards improvement and transparency of supply chain. James Allan from Verisk Maplecroft
introduced their human rights risk assessment tool and human rights impact assessment tool as parts of
their services which helped companies to conduct human rights due diligence required by the UN
Guiding Principles on Business and Human Rights and legislation on human rights in the westerncountries. Also, he shared the collaborative service with CRT Japan. Dan Murray from Sedex statedthat in the run up to the 2020 Tokyo Olympic Games, there were increasing demands fromstakeholders such as buyers, investors and consumers for companies to conduct a responsible
procurement practice and disclose information. Sedex offered services enabling companies to identify
risks on their supply chains and report on a progress status of their corrective action. Dan emphasizedthat in order to conduct a continuous improvement, it was important to communicate policies andexpectations to suppliers clearly and collaborate with suppliers to work on the issues that should be
addressed. Puvan Selvanathan from Bluenumber Foundation, stated that as current certification
processes to measure the probability of slavery in supply chain were expensive and prone tocorruption, it was important to develop a system available to workers or farmers who were vulnerable
to human rights violations, and enhance transparency on supply chain for elimination of modern
slavery. The tool that Bluenumber Foundation offers used the latest technology, and could help
companies to recognize all the people involved in supply chain, improve traceability and gain greater
visibility of their supply chains.
Case Study: Workshop for Preventing Human Trafficking in Airline Industry
There was raising concern that risks of human trafficking would increase more. ANA Holdings Co.,
Ltd., Japan Airlines Corporation, CRT Japan, government officials, international organizations werecooperatively taking the initiative to address this human rights issue as an aviation industry. Thissession introduced this initiative. Noriko Kiyotani from International Organization for Migration madepresentation on IOM Victim Assistance. She shared that trafficking methods had become more
complex. There was a need to address gaps in capacity and referral mechanisms in handling trafficking
cases among stakeholders. Chikako Miyata from ANA Holdings INC shared that it would be very
difficult for one company to address the issue of human trafficking. So, maintaining and enhancing
coordination and cooperation among helping agencies and competitive companies was critical to workon this issue. Also, she shared that this initiative should be continued with understanding andcooperation from a wide range of the stakeholders.

Caux Round Table Japan
Shibuya Sanshin Mansion 505, 29-33 Sakuragaoka-cho Shibuya-ku Tokyo 150-0031 JAPANhttp://crt-japan.jp/en/Relationship between Business and Human rights and ESG investors – Evaluation on Social
Elements of Companies
In this session, Hiroshi Ishida from CRT Japan shared the latest information on CHRB (Corporate
Human Rights Benchmark), an international initiative to evaluate corporate human rights efforts. He
stressed that ESG institutional investors began to recognize that human rights risks were risk factorsthat had a negative impact on corporate value, and they were assessing not only financial information
but also non-financial information. In addition, although CHRB evaluated the efforts of companies
belonging to apparel, mining and agricultural industries, from next year CHRB would add ICT
industry as a scope of their evaluation. Kenji Honda from Nomura Research Institute Co., Ltd. sharedthat through dialogue with the related organizations of ESG investment for several years, he received
impression that a way of their thinking was different in universal thinking and business thinking. He
emphasized that Nomura would continue to create social value based on the corporate philosophy of"Dream up the future". Nobuo Taguchi from ANA Holdings Co., Ltd. noted that salient human issues
for the company were already identified, so it was considering how to address and disclose theirefforts for ESG investors. He also stated that KPI would be created in cooperation with third parties tomanage the progress of their countermeasures.
Addressing New Human Rights Issues in Japan
This session introduced emerging human rights in Japan and business cases to address them. Hiroshi
Ishida from CRT Japan discussed with the theme of child poverty in Japan what kinds of issues Japanwas facing and the potential impacts given on the next generation. Hisayuki Katori from NPO Rare
Disease net TSUNAGARU mentioned that though patients with rare disease had desire and ability towork, it would make it difficult for them to find jobs due to prejudice and misunderstanding facingfrom their surroundings and various other factors. Also, based on his experience to support persons
with rare disease, he also shared the current problems and the feelings that patients with rare diseases
had while introducing the intractable disease law and the employment system for persons withdisabilities in Japan. Kei Yamana from Teijin Group posed questions on how to address human rights
issues for the elderly and the role that companies should play in terms of the nursing care businesstoward the future of an aging society. Inoue Yasuhiro from Kyushu Dust Service noted that waste
would be effectively reduced by performing waste management across the supply chain. He also statedthat the effect of waste reduction would lead to reduction of waste disposal cost, improvement ofcorporate activities, and improvement of corporate value. Finally, Masaaki Mabuchi fromInternational Student Conference 64th shared that persecution acts against Rohingya ethnic groups andthe mass refugees resulting from them must not be ignored in the international community andadvocated a new framework of how to protect and accept the refugees by the society.
Closing Remarks
Hiroshi Ishida shared that CRT Japan held a workshop on the Olympic Games on 10th September, andsaid that monitoring Japanese companies' efforts in their supply chains was now becoming severe
globally. In addition, in order to respond to the demands from the rapidly changing society, he notedthat companies should strengthen efforts in cooperation with the foreign experts who came to Japan
this time. Finally, he announced that the conference in 2019 would be held in October.

Caux Round Table Japan
Shibuya Sanshin Mansion 505, 29-33 Sakuragaoka-cho Shibuya-ku Tokyo 150-0031 JAPANhttp://crt-japan.jp/en/

A list of Speakers
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Livio Sarandrea
Manager and Chief Adviser of Regional Program on Business and Rights
United Nations Development Programme (UNDP) Bangkok Regional Hub
Sompong Strakaew
Founder/Executive Director, Labour Rights Promotion Network
Puvan J Selvanathan
CEO, Bluenumber Foundation
Dan Murray
Director of Client Development, Sedex
Daniel D'Ambrosio
Associate, DLA Piper
Tulika Bansal
Senior Adviser, Human Rights and Development, The Danish Institute for Human Rights
Dr. James Allan
Head of Consulting, EMEA & APAC, Verisk Maplecroft
William Rook
Regional Manager, Middle East, Institute for Human Rights and BusinessTakashi Matsuse
Vice President, Procurement – Planning, Global, Vice President SCM Strategy and Planning –Procurement, Global, Kao Corporation
Tamaki Shimamoto
Department Director, Sustainability Strategy Department, Shiseido Company, Limited
Shigeru Sugimoto
Manager, CSR Promotion, ANA HOLDINGS INC.
Mari Kojima
Manager, CSR Group, Corporate Planning Division
FUJIFILM Holdings Corporation
Minoru Matsuzaki
Secretariat, Nippon CSR Consortium, CRT Japan
Akiko Sato
Coordinator, CRT Japan
Noriko Kiyotani
Programme Manager, International Organization for Migration (IOM)
Chikako Miyata
Vice President, CSR Promotion, ANA HOLDINGS INC
Kenji Honda
Manager, Sustainability & Responsibility Group, Nomura Research Institute, Ltd.
Nobuo Taguchi
Senior Director, CSR Promotion, ANA HOLDINGS INC
Hisayuki Katori
Chairman, NPO Rare Disease net TSUNAGARUKei Yamana, Ph.D
Teijin Group Senior Researcher, Management Coordinator for the President
Healthcare Business of Teijin Group (for Technology Strategy)
Yasuhiro Inoue
President, Kyushu Dust Service Co.,Ltd.
Masaaki Mabuchi
President, International Student Conference 64th
Hiroshi Ishida
Executive Director, Caux Round Table Japan

Caux Round Table Japan
Shibuya Sanshin Mansion 505, 29-33 Sakuragaoka-cho Shibuya-ku Tokyo 150-0031 JAPANhttp://crt-japan.jp/en/