Japan s CSR Policy. February 2017 Economic and Industrial Policy Bureau Ministry of Economy, Trade and Industry

Transcription

1 Japan s CSR Policy February 2017 Economic and Industrial Policy Bureau Ministry of Economy, Trade and Industry

2 Overview of Japan s CSR policy Global Business & Human Rights in Emerging Economy Conflict Minerals Supply Chain Issues Water Risk Indigenous people Bribery etc. Social Challenges/ Issues Local Aging Society Shrinking Population and labor force Medical/Health Education etc. Contributing to Solving Social Challenges Transforming Social Challenges to Management Challenges Companies Sustainable Growth/ Value Creation Solutions Management Challenges Addressing and Tackling Social Issues as Business Management Challenges NGO/NPO Researchers Direct Involvement to Societal Challenges Labor regulations, Human Rights Protection, Social Security, ODA, etc. Strategic CSR/CSV Policy Policies for Encouraging Companies Transforming Social Challenges to Management Challenges (Traditional) Economic/Industrial Policy Corporate Tax Reform, Promoting Entrepreneurship Venture Business etc. Int. Organizations Media Government of Japan 1

3 Major Issues/ Policy initiatives Stakeholder Engagement and Value Creation 1. Sustainable Value Creation and Investment Chain The Study Group on Long-term Investment (Investment evaluating ESG Factors and Intangible Assets) toward Sustainable Growth 2. Realization of Work Style Reform 3. Diversity/ Promoting Women s Empowerment Nadeshiko Brand, Diversity Management Selection 100, etc. The Study Group for Ideal Approaches to Diversity Management as a Competitive Strategy 4. Enhancing Health and Productivity Management Health & Productivity Stock Selection, etc. Responsible Business/ Social Challenges 5. The Sustainable Development Goals (SDGs) The Sustainable Development Goals (SDGs) Promotion Headquarters Business and Human Rights The Research Project by IDE-JETRO Business/ Public Platform International Cooperation 6. CSR Forum Japan, etc. UN/ OECD WGs & NCP, EU-Japan CSR WG, APEC, etc. 2

4 1. Sustainable Value Creation and Investment Chain (Overview) METI established a Study Group on Long-term Investment (Investment evaluating ESG Factors and Intangible Assets) toward Sustainable Growth on August 24, Stewardship Code JPX Nikkei Index 400 Corporate Governance Code Amendment of Companies Act NISA/ Defined contribution pension Institutional Investors (Fund providers) Financial Market (Market Participants) Companies Governance Asset Management (Asset Managers) Stock Exchanges Sell-side Analysts Financial Pension Funds (Asset Owners) Pension system & operation Dialogue/Engagement Companies & Institutional Investors Disclosure Dialogue/ Engagement (incl. Exercise of voting rights) Intellectual Human Manufactured Natural allocation Distribution Recomposition Combination Creation of Earning Power Board of Directors Management Product/Service Markets Beneficiaries Private Investors Consumers GPIF flow Social Creation of Sustainable Corporate Value (Source) 3

5 1. Sustainable Value Creation and Investment Chain (Discussion Points) METI established a Study Group on Long-term Investment (Investment evaluating ESG Factors and Intangible Assets) toward Sustainable Growth. The Study Group consists of over 20 members: companies, investors such as GPIF which is the world s largest pension fund in Japan, academics and international organization. METI will publicize recommendations by the end of March, Discussion Points Companies Focal Points Investors Market participants Desirable management form of decision-makings in longtem investment (investment evaluating ESG/intangible factors) Desirable governance for optimal utilization of capitals (Human capitals, intellectual capitals, manufactured capitals, etc) Companies Ideal approaches of evaluation and decision-making for the long-term investment Investors Perspectives on mid to long term corporate value of companies and ideal approaches of evaluation Desirable form of evaluation and decision-makings in longtem investment (investment evaluating ESG/intangible factors) Stewardship & Fiduciary duty Expected roles s of market participants and analysts Desirable form of information provision to investors and stakeholders Companies & Investors Ideal behaviors, dialogue & mutual communications Desirable disclosure Desirable dialogue and engagement (incl. exercise of voting rights) 4

6 2. Realization of Work Style Reform Prime Minister Mr. Shinzo Abe held the first meeting of the Council for the Realization of Work Style Reform on September 27. The Council will consider what the necessary legislation and policies for work style reform are, compile a concrete action plan within this financial year, and submit the relevant legislation to the Diet, with a sense of urgency. The Council will focus on 9 areas below: Providing equal pay for equal work An increase in wages/ improvement in productivity Support for career change /re-employment Improvement of long work hours Promoting employment among the elderly Creating an environment where it is easy for women and young people to work Facilitating a work-life balance The issue of the acceptance of foreign personnel 5

7 3. Diversity / Promoting Women s Empowerment In order to promote the empowerment of women as a growth strategy, it is necessary for diverse human resources including women to fully exhibit their capabilities in the corporate and economic society, and thereby boost competitiveness. For this purpose, the empowerment of women will be promoted as a corporate management strategy. Disseminating best practices Approach to capital markets Diversity Management Selection 100 Enterprises that are achieving management results through utilizing the abilities of diverse human resources including women, senior citizens, foreign nationals, etc. are awarded. Selected enterprises: 174 (fiscal 2012~2015) Nadeshiko Brand Listed enterprises that are outstanding record in terms of promoting the empowerment of women are introduced to investors as "medium- to long-term growth brands." This is jointly implemented by the Ministry of Economy, Trade and Industry and Tokyo Stock Exchange. Selected brands: 45 companies (fiscal 2015) 6

8 3. Diversity / Promoting Women s Empowerment It is significant for Japanese companies to clarify better approaches to diversity management, which will contribute to improving their growth and profitability, and to further attract the attention of companies or investors to their diversity management. To discuss measures to achieve the goal, METI established a Study Group on Diversity Management (Diversity 2.0) as a Competitive Strategy. Corporate Management Reform Potential policy measures: Provide guidance on diversity management toward corporate management reform Support companies in carrying out reform ex. Enhancing B-to-B cooperation Feedback from Stakeholders Global long-term investors Investment evaluating ESG Factors, Nadeshiko Brand, The Act on Promotion of Women's Participation and Advancement in the Workplace The labor market (Source) 7

9 4. Enhancing Health and Productivity Management Since FY 2014, METI and the Tokyo Stock Exchange (TSE) have been conducting the Health & Productivity Stock Selection. 25 companies are selected as 2016 Health & Productivity Stock Selection Evaluation Framework [i] the positioning of health and productivity management in management philosophy and policies [ii] organized frameworks established for tackling health and productivity management [iii] specific systems established for ensuring health-conscious management as well as measures introduced for implementing them [iv] measures established for assessing and improving health and productivity management [v] adherence to laws and regulations and risk management (Source) 8

10 5. The Sustainable Development Goals (SDGs) Prime Minister Mr. Shinzo Abe held the 1st meeting of the SDGs Promotion Headquarters on May 20. All Ministers of State served as the members. The Headquarters will establish guidelines for Japan s implementation of SDGs. The stakeholders meeting was also held on September 12. 9

11 6. CSR Forum Japan The CSR Forum Japan is a business initiative advocating corporate social responsibility founded in 2004 with METI support. Consisting of highly motivated, leading multinational corporations, the forum is regarded as one of the most outstanding networks in Japan. The forum annually conducts a variety of studies and has been establishing productive affiliations with relevant national and international organisations since being established. Mission Support companies in sharing their experiences, insights and latest information on CSR. Conduct research projects on CSR policies and business activities. Foster close communication and cooperation between companies and relevant organisations. Contribute to the international/national policy debate on CSR. Recent Research Subjects <FY2016> Cooperation between companies and stakeholders including NGO/NPO and governments for achieving the SDGs <FY2015> Global Strategy on CSR for Competitiveness of Companies <FY2014> CSR Management of Companies <FY2013> ISO and Other CSR Standards in Businesses <FY2012> Business and Human Rights in Emerging Economies <FY2011> Non Financial Disclosure 10

12 6. CSR Forum Japan As the main research subject for FY2016, the Forum focused on the cooperation between companies and stakeholders including NGO/NPO and governments for achieving the SDGs. Research Framework Global framework and major issues - Identify social issues pertaining to key companies on a global level, with particular focus on SDGs trends and correlation with corporate activities will be researched and analyzed. Case study - Measures taken in Japan and internationally on cooperative efforts between international institutions, governments, and industry will be researched and analyzed. Challenges/Proposals FY 2016 Members Chair: Tetsuyuki Kagaya ( Hitotsubashi University) Adviser: Yoshihiro Fujii (Sophia University) Committee: Panasonic Corporation Bridgestone Corporation Global Compact Network Japan Ernst & Young Institute Co., Ltd. ITOCHU Corporation AEON Co.,Ltd ANA HOLDINGS INC. CSO Network Japan Hitachi, Ltd. Toray industries, Inc. Toshiba Corporation Sony Corporation Toshiba Corporation Sony Corporation SHISEIDO CO.,LTD Institute for International Socio-Economic Studies Sompo Japan Nipponkoa Insurance Inc. Lloyd s Register Quality Assurance Limited AJINOMOTO CO.,INC Honda Motor Co., Ltd. Fujitsu limited DAIKIN INDUSTRIES,LTD Observer: METI, Development Bank of Japan Inc., Mitsubishi UFJ Financial Group, Inc. 11