＜INTERVIEW＞ Major Revision of "Corporate Conduct Charter" Centered on SDGs What Keidanren Demands of Japanese Companies

In 2017, the Japan Business Federation (Keidanren) adopted "Society 5.0 for SDGs" as its slogan and fundamentally revised its "Corporate Conduct Charter." It urged corporate leaders to heighten their awareness of the SDGs. What were the reasons behind this, and what has been the response? We asked Tomoko Hasegawa, Head of Keidanren's SDGs Headquarters.

Tomoko Hasegawa, Head of the Keidanren SDGs Headquarters

Why Companies Should Engage with the SDGs

The world is currently undergoing a period of profound transformation, with rapid technological innovation in areas like AI, IoT, robotics, and big data. Geopolitically, the rise of China and India is shifting the global economic center of gravity from Europe and America to Asia. Climate change and extreme weather events are occurring worldwide, placing us in the midst of significant global change.

Amid this heightened uncertainty, the world is focusing its attention with a sense of urgency on achieving a "sustainable" global environment. The SDGs represent the United Nations' organized framework for addressing these challenges.

Meanwhile, the Japanese government has declared its entry into "Society 5.0" (a new society following the progression of "Hunting Society," "Agricultural Society," "Industrial Society," and "Information Society"). Keidanren (Japan Business Federation) has also proposed that Society 5.0 is "a society that solves social challenges and creates value through the fusion of digital innovation and the imagination and creativity of diverse people." The SDGs and Society 5.0 share a remarkably similar direction. Keidanren concluded that achieving the SDGs through Society 5.0 represents the vision Japan should present to the world. Consequently, it placed the concept of "Society 5.0 for SDGs" at the core of its activities.

The fundamental revision of the Corporate Conduct Charter was undertaken to instill this philosophy within Japanese companies. Previously, the role of companies was defined as "providing socially useful and value-added employment, products, and services." This revision, however, clearly states that promoting a sustainable society is a crucial role for companies.

SDGs × The Potential of Japanese Companies

Japan is often called a "pioneer nation in facing challenges," grappling with a mountain of problems to solve: population decline, low birth rates and aging, healthcare, mobility, natural disasters, and more. However, this can also be rephrased as meaning there are many opportunities to generate solutions. Leveraging corporate "imagination" and "creativity" to tackle the SDGs through business activities should become an opportunity for corporate growth and enhanced competitiveness.

"SDGs = Good Business." While initial investment is certainly required, the SDGs represent an international consensus and a common language. From a medium- to long-term perspective, the significant appeal lies in the heightened global recognition from consumers and investors. Indeed, numerous examples exist where companies have enhanced their global reputation, attracted investor attention, and achieved global partnerships by publishing their ongoing SDG initiatives in English.

At the B20 summit (gathering business leaders from G20 nations) held by Keidanren in March, we successfully compiled a joint statement titled "Society 5.0 for SDGs." What struck me there was how far ahead Japan is in terms of SDGs. While companies in Europe and the US also make significant individual contributions to SDGs, Japan stands alone in realizing collaborative SDG initiatives involving industry, government, and academia. I hope Japan continues to leverage this unique strength.

Furthermore, what we now expect from companies is not just communicating their SDG efforts, but demonstrating the "impact" (contribution to the goals) achieved through their own business activities. Simultaneously, we want them to tackle the issues where they can most effectively reduce "negative impact" (harmful effects on the environment and society) and clearly show these efforts. How much progress will have been made toward achieving the SDGs adopted in 2015 by 2030? That is now drawing increasing attention.

With increased global attention focused on Japan through events like the G20, Tokyo Olympics and Paralympics, and the Osaka-Kansai Expo, Keidanren is also preparing to effectively showcase Japanese companies' SDGs initiatives.