Policies for coping with population aging:
Potential of Health and Productivity Management

TANAKA Kazushige
Deputy Director-General
Commerce and Service Industry Policy Group

Ministry of Economy, Trade and Industry, Japan１2020 Edition
Annual Health,Labour and Welfare
Report

1

２

2

３3

What is Health and Productivity Management (H&PM) ?
An approach to focus on health management of employees in theircorporate strategy.
 Benefits of H&PM
1. Improving employees’ health.
2. Enhancing corporate performances through employee’s productivity improvement.
3. Boosting investment in prevention and health promotion market.
(As of November, 2021)

Large corporations

SMEs
12,849
2,869

9,403

2,328 2,523
1,800
1,239493

573726

235

539

6,095

1,801
1,473813

397318 816

2,899

775

2,501

7,934

4,811

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
Number of survey resposes

Number of certified corporations

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
Number of applications
Number of certified corporations

4Overview of H&PM Application
Evaluation Framework of H&PM Survey
Four Criteria
1. Managementphilosophy

Main contents <Examples><Examples of measures>
Financial support forgym use

 Commitment of top management
Provision of wearabledevices

2. Organizationalframeworks

3. Systems andmeasures

4. Evaluations andimprovements

 Participation in the study of health measures byindustrial physicians and public health nurses Identify employee health issues
 Conduct training to improve health literacy
 Measures: improve diet habit, promote exercise
opportunities, respond to mental health disorders,and measures against passive smoking, etc.
 Verification of the effects of the measures
 Improvement of measures based on the results

Health promotion
seminars

Subsidies for medicalcheckups

5

H&PM Award 2021

 Currently, 85% of companies composing Nikkei 225 Stock Index are
the applicants for H&PM Certificate.

6

Disclosing the grade report of H&PM certificates METI started to disclose the grade report for top 500 companies H&PMcertificate.
 Total market capitalization of 448 companies, which disclosed their grade
report information, is 249 trillion yen (1/3 of the whole value of Japan’slisted companies).

https://www.meti.go.jp/english/press/2021/0617_001.html

7

Employee turnover rates are lower
in companies engaged in efforts to advance H&PM
Turnover rates of certification & qualification systems related to H&PM%

1211.6108643.82.720
2018健康経営銘柄2018
Health & Productivity
Award Companies(selected in FY2017)

The
2018 Certified H&PM
健康経営優良法人2018
Organization
Recognition Program(selected in FY2017)

Theaverage in 2017（参考）全国平均in Japan※離職率の全国平均は「厚生労働省 平成29 年雇用動向調査結果の概況」に基づく。（ただし健康経営度調査の回答範囲と異なる可能性がある）※離職率=正社員における離職者数の設問/正社員数を各社ごと算出し、それぞれの企業群で平均値を算出※ なお、離職率に関する設問は健康経営度調査の評価には含まれていない。

8Greater performance by companies engaged in H&PM The average stock price of the companies selected for the Health & Productivity Award Companies
was compared against TOPIX over the ten years from September 2011 to September 2021.
6TOPIXHealth & Productivity Stock 2021

54321

* The index was created from these companies’ closing prices as of the first day of each month until September 1, 2021, making the prices on
September 1, 2011, the baseline (1.000).
* Four companies with no baseline data, such as newly listed companies, are excluded.

2021/9/1

2021/6/1

2021/3/1

2020/12/1

2020/9/1

2020/6/12020/3/1

2019/12/1

2019/9/1

2019/6/1

2019/3/1

2018/12/1

2018/9/1

2018/6/1

2018/3/1

2017/12/1

2017/9/1

2017/6/1

2017/3/1

2016/12/1

2016/9/1

2016/6/1

2016/3/1

2015/12/1

2015/9/1

2015/6/1

2015/3/1

2014/12/1

2014/9/1

2014/6/1

2014/3/1

2013/12/1

2013/9/1

2013/6/1

2013/3/1

2012/12/1

2012/9/1

2012/6/1

2012/3/1

2011/12/1

2011/9/1

09

Benefits of Health and Productivity Managementfor Multiple Stakeholders
Business Partner
Workers

Security and trust ofemployees and job
seekers

Consumers

Trust frombusiness partners

Preference for its
products and services

Financial Institutions
and Investors

Community andSociety

Credibility andreputation withfinancial institutions
and investors

Evaluation bymunicipalities, etc.

Health and Productivity
Management implementationcompanies

10

Health Investment as ESG investing
Environmental (E)•climate change•greenhouse gas (GHG) emissions•resource depletion, including water•waste and pollution•deforestation（出所）UNPRI Webサイト

Social (S)•working conditions, including slavery andchild labour•local communities, including indigenouscommunities•conflict•health and safety•employee relations and diversity

403: OCCUPATIONAL HEALTH AND SAFETY

Governance (G)•executive pay•bribery and corruption•political lobbying and donations•board diversity and structure•tax strategy

GRI : Global Reporting Initiative11

Preferential treatment for companies engaged inhealth management
Preferential treatment provided: By Local Governments (number: about 20 )・ Special points given for public works and bid review.
・ Loans with low interest rates and guarantee rates

 By Banks (number: about 80 )・ Provide loans at low interest rates

・ Reduction or exemption of guarantee fees・ Premium discount for worker’s accident insurance

12OECD’s research on workplace-based health interventions
OECD will collect information about workplace-based health interventions and analyze
governments’ policies and incentives to promote them in OECD countries. Also,
information on disclosure programs on workplace health will be collected.

◆Outline of the project The OECD Directorate for Employment, Labour and Social Affairs, Health Division willproduce a report.
 Methodology


Desktop review and interview with experts from OECD countries.
International comparison data produced by the private sector such as Workforce Disclosure Initiative will be used.

 Analysis subjectThe burden of disease in the workforce and reduced productivity due to NCDs and mental health issues
The potential of workplace-based interventions and evidences on the link healthier workforce-more productive
workforce
Policies in place in Japan and a subset of other OECD countries that are commonly referred to as employers’ healthand wellbeing programs
Information on disclosure programs on workplace health by governments and ESG advocacy groups
Interventions that are most commonly implemented by large and medium-large employers

 TimelineThe report will be planned for release towards the end of Q3 of 2022, or early within Q4 of 2022.

13

4 th Well Aging Society Summit (16 th November)

Date: Tuesday 16 th November①②Opening Remarks
Parliamentary Vice-Minister, METI
Keynote Speech" Recent Medical Situations and the Challenges “President, Japan Medical Association③ New Health Promotion with Personal Health
Record (PHR)④

Health and Productivity
Management: From the Perspectiveof ESG Investors⑤

Special Panel Discussion for India andJapan supported Digitalization in Hospitaland Nursing Home⑥

Risk Reduction of Dementia ＆ Social
Implementation⑦Closing Session
Lessons for Japan toward Global Healthy Aging

Opening speech
Investor’s perspective on human capitalmanagement（Video Messages)
 by Priti SHOKEEN (Vice President & Director, TD
Asset Management, ESG Research & Engagement)
 by James Coldwell (Head of Workforce Disclosure
Initiative, ShareAction)

Panel discussion
 moderated by Mr. Masaru Arai （Chairman, Japan
Sustainable Investment Forum）“Health and Productivity Management” policy by
the Japanese Government
 by Takuma INAMURA( METI, Healthcare Industry
Division, Director)
Health and productivity management from aperspective of ESG investment
 by Wakaba KAWAI (Nomura Asset Management,Senior ESG Specialist)
A quantitative analysis on the outcome of Healthand Productivity Management
 by Akemi HATANO (SBI Securities, Quantitativeanalyst)
Free discussion

14

Tokyo Nutrition for Growth (N4G) Summit 2021 7th December (Tue.)Roundtable on Workplace Health Investment, METI“Workplace Health Investment as a Corporate Strategy -Potential of Health and Productivity Management”
 Opening speech by Minister of Economy, Trade and Industry, HAGIUDA Koichi, By strengthening the disclosure of such information, we're working to improve the environment so that all
stakeholders, including local communities and investors, can evaluate health management initiatives ofcompanies.
 Health and Productivity Management (H&PM) regards people as a source for a competitive advantage ofbusiness to promote health of the employees. Japan has been a pioneer in this field, and will continue topromote the benefits of health management to the world.

 NISHII Takaaki / Ajinomoto Co., Inc, Representative Executive Officer, President & CEO
 Propose to contribute in the supply chain. Spread H&PM upstream in the food supply chain in emerging countries.

 Boris Moutier / AXA, Japan and Asia Chief Investment Officer
 H&PM fits in with AXA's investment philosophy. We use "health" when selecting companies to invest in orexclude from investment. Workplace health investment is becoming more and more important in the “S”
of ESG investment.

 Ulrik Vestergaard Knudsen / OECD, Deputy Secretary-General Working to improve the health of employees is a win-win-win, as it increases the productivity of thecompany and makes the employees happier and healthier.

High Level Sessions
 Opening speech by Prime Minister, KISHIDA Fumio Japan is also determined to further improve the nutritional status of its people by promoting nutritional andenvironment-friendly dietary life, balanced diets, and health and productivity management, while also taking
advantage of innovation, digitalization, and science and technology.
15