Japan – Environment & climate change

By Daniel Morris | 3. June 2021

Chapter 1. Towards the Formulation of the National Action Plan (NAP) (Background and Working Process)

 3. Objectives to be Achieved through the Launch and Implementation of the NAP

（1） …It is noted that for the purpose of this NAP, “human rights” should include consideration of the impact of environmental degradation and respect for human rights in supply chains. (…) where Japanese business enterprises implementing such measures are fairly evaluated.

 

Chapter 2. Action Plan

1. Fundamental principles of the NAP

(5) Remedial procedures (judicial and non-judicial remedies) have been established to address human rights violations in business activities. The Government intends to continue to assure access to judicial remedies and make improvements where necessary. It also utilizes multiple efforts regarding non-judicial remedies, including consulting services based on specific laws and regulations (e.g., workers, persons with disabilities, and consumers) as well as remedial procedures. These include the Japan Bank for International Cooperation (JBIC) Guidelines for Confirmation of Environmental and Social Considerations, the Japan International Cooperation Agency (JICA) Guidelines for Environmental and Social Considerations, the Nippon Export and Investment Insurance (NEXI) Guidelines on Environmental and Social Considerations in Trade Insurance, and the Japanese National Contact Point (NCP) under the OECD Guidelines for Multinational Enterprises (the Japanese NCP). The Government intends to secure access to these nonjudicial remedies and make improvements where necessary.

 

2. Areas of the NAP

(2) Measures of the Government as an Actor regarding State Duty to Protect Human Rights

A. Public Procurement

(Existing framework/Measures taken）

In particular, the Government has promoted enhanced awareness by companies for respecting human rights and the environment in accordance with the Act on Promotion of Procurement of Goods and Services from Disability Employment Facilities by the State and Other Entities (Act No. 50 of 2012, hereinafter referred to as the “Act on Priority Procurement Promotion for Persons with Disabilities”), … and the Act on Promotion of Procurement of Eco-Friendly Goods and Services by the State and Other Entities (Act No. 100 of 2000, hereinafter referred to as the “Act on Promoting Green Procurement”).

 

B. Development Cooperation and Development Finance

(Existing Framework/Measures taken)

(…)

JICA (Japan International Cooperation Agency), JBIC (Japan Bank for International Cooperation) and NEXI (Nippon Export and Investment Insurance) have introduced guidelines for environmental and social considerations. Along with them, necessary information disclosure procedures and related grievance procedures have been introduced to consider the impact of projects on human rights, the environment, and society. (…)

The JBIC Guidelines for Confirmation of Environmental and Social Considerations examine not only the impact of JBIC projects on human health, safety, and the natural environment but also social concerns, including respect for human rights as environmental and social considerations required for the projects. JBIC has been encouraging borrowers and related parties to take into account environmental and social considerations through loan agreements as necessary.

 

(Future measures planned)

Implement effective measures regarding environmental and social consideration in the fields of development cooperation and development financing

  • JICA (Japan International Cooperation Agency) has established the Guidelines for Environmental and Social Considerations. It intends to continue to respect internationally recognized human rights and environmental and social considerations when engaging in development cooperation projects. This is to be done by not only complying with the laws, regulations and standards of the recipient countries but also confirming that they do not differ significantly with the World Bank’s Environmental and Social Safeguard Policies and other initiatives. In particular, JICA (Japan International Cooperation Agency) intends to engage in considerable discussions with stakeholders such as local communities after disclosing information to ensure that an agreement can be reached on the projects through methods that are socially appropriate. When doing so, it will continue to pay attention to ensuring that due consideration is given for the socially vulnerable. [Ministry of Foreign Affairs]
  • JBIC (Japan Bank for International Cooperation) has established the Guidelines for Confirmation of Environmental and Social Considerations on the basis of, among others, following discussions:

– discussions within the international frameworks on environmental and social considerations and human rights; and

– discussions at the OECD, such as the Recommendation of the Council on Common Approaches  for Officially Supported Export Credits and Environmental and Social Due Diligence, which  requires consistency between public export credit policies and environmental conservation  policies. [Ministry of Finance]

  • The review of the aforementioned JBIC (Japan Bank for International Cooperation) Guidelines is conducted by taking the progress of the above discussions into consideration and seeking opinions from the Japanese government and the governments of developing countries, Japanese companies, experts, and NGOs, while maintaining transparency in the process. [Ministry of Finance]
  • In light of the clear inclusion of respect for human rights in the scope of environmental and social considerations in the revised version of the Guidelines on Environmental and Social Considerations in Trade Insurance in 2015, NEXI (Nippon Export and Investment Insurance) continuously endeavors to confirm appropriate environmental and social considerations in accordance with the Guidelines and review the Guidelines where necessary. [Ministry of Economy, Trade and Industry]

 

 

C. Promotion and Expansion of the Business and Human Rights Agenda in the International Community

(Existing framework/Measures taken）

In the areas directly related to business activities, the Government has incorporated clauses concerning social issues, including labour and the environment in some of the EPAs and investment treaties that Japan has signed or ratified in a manner consistent with trade rules such as those of the World Trade Organization (WTO), and promoted shared understanding between signatories on values to be respected, such as securing appropriate labour standards and conditions and protection of the environment. For example, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (TPP11 Agreement) includes an independent Labour Chapter and Environment Chapter as well as provisions on women’s participation, and the Japan-EU Economic Partnership Agreement (EPA) includes a Trade and Sustainable Development Chapter. On top of this, the Japan-EU EPA also stipulates that the parties shall convene joint dialogue with civil society, establishing that civil society shall play a certain role through exchange of opinions on themes such as trade and sustainable development, the environment, and labour. 

 

(3) Measures of the Government Promoting Corporate Responsibility to Respect Human Rights

A. Measures Related to Domestic and Global Supply Chains and Promotion of Human Rights Due Diligence Based on the UNGPs

(Existing framework/Measures taken）

Japan’s Stewardship Code and Corporate Governance Code refer to grasping the status of investee companies and corporate information disclosure to promote sustainability initiatives, including elements of ESG issues. In addition, the Stewardship Code, which was revised again in March 2020 also includes reference to consideration on sustainability when holding dialogue between institutional investors and investee companies. Furthermore, the Guidance for Collaborative Value Creation was published as a guideline for dialogue and disclosure on voluntary and proactive initiatives of companies on non-financial information, including ESG factors.

(…)

With respect to the environment, corporate initiatives are being promoted with the establishment of the Environmental Reporting Guidelines. In August 2020, the “Introductory Guide on Environmental Due Diligence along the Value Chains: Referencing the OECD Guidance” was issued as a manual, including points to note in conducting environmental due diligence in relation to risk management and value chain management stated in the Environmental Reporting Guidelines. The Guidelines state that human rights are integral to address some measures regarding environmental issues, and explains that environmental due diligence is required as part of responsible business conduct and integrated with human rights.

(Future measures planned)

(…)

(g) Promote information disclosure by business enterprises in accordance with the Environmental Reporting Guidelines

  • Promote understanding of environmental due diligence and information disclosure by publicizing the Introductory Guide on Environmental Due Diligence issued in August 2020. [Ministry of the Environment]

 

(4) Measures regarding Access to Remedy

Judicial and Non-Judicial Remedy

(Existing framework/Measures taken）

(…)

Non-judicial remedies such as the following have been established: consulting services based on individual legislation (e.g., workers, persons with disabilities, consumers); remedial procedures such as Objection Procedures Based on JBIC Guidelines for Confirmation of Environmental and Social Considerations, JICA Objection Procedures Based on Guidelines for Environmental and Social Considerations, and NEXI Objection Procedures on Guidelines on Environmental and Social Considerations in Trade Insurance; …

 

(Future measures planned)

(…)

(h) Continue the provision of grievance redress services in development cooperation and development financing

  • To ensure compliance with the Guidelines for Environmental and Social Considerations, JICA (Japan International Cooperation Agency) has established and continues to provide a system where affected residents can file objections to non-compliance with the guidelines. In case an objection is filed, Examiners for the Guidelines, who are independent of departments responsible for specific projects, will investigate the facts concerning compliance/non-compliance, encourage dialogues between the parties concerned for resolution of disputes, report the results directly to the President of JICA, and disclose the result on JICA’s website. [Ministry of Foreign Affairs]
  • To ensure compliance with the Guidelines for Confirmation of Environmental and Social Considerations, JBIC (Japan Bank for International Cooperation) has established and continues to provide a procedure for raising objections to non-compliance with the guidelines. The request to raise objections can be submitted by the country’s residents to be affected by the project, and an Examiner for Environmental Guidelines as an organ independent of departments responsible for lending or investment operations will make a determination, with the result to be disclosed publicly. [Ministry of Finance]