February 2024

Joint Statement by
the European Business Council in Japan (EBC)& the Japan Business Council in Europe (JBCE)
On Sustainable and Responsible Supply Chains
Following the first EBC/JBCE joint event held on November 21, 2023, the EBC’s Sustainability
Committee and the JBCE’s Corporate Sustainability committee would like to share a joint statement on
their recommendations to shift towards sustainable and responsible supply chains.
1. In the context of a global shift towards more responsible and sustainable business conduct,
including respect of human rights and preservation of the environment, the EBC and the JBCE
reiterate their determination to tackle such issues across their activities, supporting theefforts of their member companies and promoting policy dialogues with public authorities of
the EU and Japan.
2. Achieving sustainable and responsible supply chains requires a holistic and cooperative
approach where economic actors, policymakers and all relevant stakeholders work together
toward the same objective. As part of this joint effort, we are pleading for a strong andrenewed commitment from the business community at large as well as from policymakers tocreate a favourable business environment.
3. We see the role of businesses as dual: they can both take responsibility in their own supply
chains with initiatives within their reach, and advocate towards policymakers for regulations
aiming at levelling the playing field between all companies. We recognize that social andenvironmental awareness within companies, including at top management level, is key tounlock progress.
4. Both Japan and the EU should support the development and promotion of international
standards and definitions, considering the inherently global dimension of today’s supply
chains.
5. Policies and regulations adopted domestically, while encouraging businesses to transition tomore responsible and sustainable supply chains, should also consider the global
competitiveness of in-scope companies reflect this objective and be aligned and harmonisedwith broader international discussions. The governments of Japan and the EU should jointly
work with businesses, without transferring State responsibilities to businesses for theprotection of human rights, to develop public-private synergies to protect human rights andthe environment in supply chain operations.
6. More support is needed from public authorities to help businesses navigate the new andoftentimes complex regulatory environment and eventually achieve its full potential. In

Europe, the CSRD1 and CSDDD2 are examples of pieces of legislation being implemented orfinalised at this moment. We strongly recommend the timely issuing of guidelines, theextension of implementation timelines and the development of capacity-building, tofacilitate data gathering across supply chains, mapping exercises and efficient reporting.
7. On the other hand, the limited coverage of supply chain regulations in Japan exposes
businesses to future risks of misalignment with increasing global expectations fromconsumers, investors, regulators in other regions – including the EU, and society at large. We
recommend Japan to strengthen its policy dialogue with advanced regions including Europe,
to identify best practices on responsible and sustainable supply chains policies.
8. We strongly believe that the framework provided by the EU-Japan Economic Partnership
Agreement (EPA) and its Trade and Sustainable Development (TSD) Chapter should contributeto these collaborative and multi-stakeholder efforts towards sustainable supply chains.
9. Notably, as recently highlighted in a report 3 of the European Commission on theimplementation of its trade policy, the EU-Japan Joint Dialogue with Civil Society has beenable to identify key cooperation topics regarding due diligence and responsible businessconduct. We call on both the European and Japanese authorities to continue promoting andfurther invest in such cooperation.

Contact：■

Japan business Council in Europe
Website: https://www.jbce.org/ , E-mail: info@jbce.org■

European Business Council in Japan
Website: https://ebc-jp.com/ , Email: ebc@ebc-jp.com

1

Corporate Sustainability Reporting Directive

2

Corporate Sustainability Due Diligence Directive3

https://ec.europa.eu/transparency/documents-register/api/files/COM(2023)740_0/090166e504567b20?rendition=false