With 10 years left until 2030, corporate SDGs are entering the implementation phase.

Launched in November 2020, "SDGs Business Solutions" ( release here) is a program where seven companies, led by the Dentsu Group, collaborate to support corporate initiatives for building a circular economy (*). We have established a comprehensive support system covering everything from overall design, business launch, and product development to building relationships with partners and PR both internally and externally.

Why are SDGs and the circular economy essential for companies now? What can the Dentsu Group offer? Rie Takeshima, leader of " Dentsu Team SDGs " (the point of contact for this solution), and Mineko Hotta, a member of the team and founder of "DENTSU DESIGN FIRM," discussed the current landscape surrounding SDGs, the background behind launching this project, and its future outlook.

*Circular Economy: A new economic framework that aims to eliminate waste by designing products and processes with recovery and recycling in mind from the development stage. This evolves beyond the linear economy (production → consumption → disposal) and the reuse economy (which still generates waste). It is gaining global attention as a future economic growth policy, requiring comprehensive corporate efforts from material sourcing to recovery for its realization.

 

Ms. Mineko Hotta, Director of DENTSU DESIGN FIRM; Ms. Rie Takeshima, Leader of Dentsu Inc. Team SDGs

Why Circular Economy is Now Essential for Businesses

Takushima: The environment surrounding the SDGs has changed dramatically over the past year. The biggest influence, without a doubt, was COVID-19. Challenges in pandemic response, work styles, healthcare, and the economy were brought into sharp focus, accelerating action across the board. People at all levels—nations, local governments, companies, and individuals—are thinking, "We must pool our ideas and cooperate to overcome this crisis." Many are crossing boundaries to tackle challenges for the sustainability of the planet and society. It feels like "the response to COVID itself is precisely the embodiment of SDG initiatives."

Hotta: I also feel that the momentum building before COVID for initiatives like reducing plastic use and interest in the circular economy has only intensified. The EU's 2019 "Single-Use Plastics Ban" act became a game-changer, and since then, momentum for plastic reduction has been steadily growing worldwide. France has even proposed standardizing the circular economy internationally through ISO. Following Europe's lead, I sense very active movements in countries around the world.
 

Adapted from the Ministry of Economy, Trade and Industry's "Current Status and Challenges of Resource Circulation Policy" ( https://www.meti.go.jp/shingikai/energy_environment/junkai_keizai/pdf/001_03_00.pdf )　

Takashima: At this year's Davos meeting, world leaders and corporate executives all unanimously stated, "Now is the time to put the SDGs into practice." Prime Minister Suga's recent policy address also included a declaration on decarbonization. It seems momentum is building not only in Europe but also in Japan—the phase of study and planning is over. We must now seriously commit to building the SDGs and the circular economy.

The SDGs are targets to be achieved by 2030. With just 10 years left until 2030, the UN has designated this period as the "Decade of Action." Many companies and individuals are now seriously considering "what can be accomplished in the next 10 years" and beginning to take concrete steps.

Growing empathy for SDG-like thinking. The market will change in a few years!

Takashima: We at Dentsu Inc. Team SDGs conduct the "Dentsu SDGs Consumer Survey" annually. The 2020 survey showed awareness of the term "SDGs" rose to 29.1%, a 13.1-point increase from the previous year. Furthermore, awareness and resonance with concepts like "plastic reduction," "sharing economy," and "circular economy" scored even higher than awareness of the term SDGs itself, with more people expressing a desire to incorporate these into their lives.

Young people, in particular, show a high level of awareness about the SDGs. Having received education on environmental issues and the SDGs in school, they feel it's only natural to do what's good for the planet and society. Many young people look at adults with a questioning eye, wondering, "Why don't you do what's good for the Earth when you know it?"

Hotta: On a more personal level, young people also show higher awareness of waste sorting and higher rates of owning reusable water bottles. While they likely do it because it's good for the planet, I think they also see it as a natural choice – carrying their own bottle instead of buying bottled drinks is simply part of their personal style.

Recently, it's striking to see fast fashion apparel brands actively promoting "sustainable fashion," seemingly responding to these signs of change among young people. Previously, fast fashion conjured images of "cheap clothes replaced quickly." Now, however, they're emphasizing sustainability and circularity as key concepts—covering everything from materials and manufacturing methods to recycling techniques and handling of scraps. Fashion is a reflection of individuality and a means of expressing personal style, and now choosing sustainable fashion is also an option.

This isn't just a trend; it shows how SDGs have become embedded in young people's lives. Including the awareness that "we seriously need to act for the planet," it seems SDGs are firmly taking root, not just a passing fad.
 

Takashima: Definitely. More people are buying products not just because they're cute or pretty, but because they resonate with the brand's philosophy, stance, or aspirations.

Hotta: Yes. When this SDG-native younger generation becomes the main purchasing demographic, I have a feeling the market will change significantly.

Takashima: Even in official settings like international conferences, SDG-conscious initiatives are advancing. For example, water servers are provided instead of plastic bottles, clear files for documents use plastic alternatives, and unnecessary press kits are eliminated. In the coming era, it's essential for companies to have sensitivity to the global standards of SDGs when developing their businesses and communications.

The Osaka Expo 2025 will be held with the SDGs as its theme, and the Japanese government's efforts should accelerate towards 2030. I believe the environment surrounding SDGs in Japan will undergo dramatic changes within this decade. Companies will likely be required to develop services, products, and business models that are even more SDG-focused. Adapting to these changes will undoubtedly become a crucial factor for survival within the market.

Materials, procurement methods, recycling... The Circular Economy Requires Holistic Design

Takushima: It's often said that "Japanese companies are lagging in their SDG efforts." I feel one reason for this is the failure to establish the circular economy as a whole. From your perspective as a product designer, how do you view this issue?

Hotta: I also feel that before designing the product itself, we must first thoroughly design the entire circular economy. Simply changing the design of an object doesn't hold much significance within the context of a circular economy. We must think through every step: what materials are used in that product, how they are sourced and manufactured, how the product is used, and how it will ultimately be recycled. This requires knowledge of materials and recycling, as well as the ability to coordinate the entire process. I believe that adopting a different, "bird's-eye view" approach to manufacturing will become necessary for everyone involved in making things, starting with product designers.

Additionally, it's crucial to constantly monitor "factors that change over time," such as shifts in consumer values, global trends and social/environmental changes, relevant laws and regulations, and the evolution of sustainable materials and technologies.

Takashima: I think Japanese companies are very skilled at creating the so-called "arterial" parts, like product development and manufacturing. On the other hand, they haven't yet built the "venous" systems for collecting and reusing what they've made – or rather, they haven't considered that far in the past.

I think what Mr. Hotta refers to as manufacturing with a bird's-eye view is still very much a work in progress. Building the veins costs money, and sometimes it can't be done solely by one company. While Europe and the US already have examples of established infrastructure and systems in place, in Japan, each process is often handled separately. We need to build the system from the ground up. That's why it's difficult for a single company to just charge ahead and make it happen.
 

SDGs Business Solutions: Designing, Implementing, and Operating the Circular Economy

Takushima: For many Japanese companies, building and continuously operating a circular system on their own is difficult. That's precisely why we believe "SDGs Business Solutions" are necessary. "If tackling it alone is hard, let's collaborate and share the 'vein' part. Let's all innovate together!" That's the stance of us at Dentsu Inc. Team SDGs.

Hotta: For us, it's also a challenge to collaborate more extensively across boundaries within the Dentsu Group and with partners. "SDGs Business Solutions" involves Dentsu Tech, which excels in material and product development; Dentsu Live Inc., responsible for creating new spaces and opportunities including how products are delivered; Dentsu Digital Inc. and Dentsu International Information Services (ISID), handling the DX essential for innovation; Dentsu Inc. communicates our philosophy and initiatives internally and externally. Dentsu Inc. produces these solutions, customizing them to individual corporate needs and connecting diverse companies. Material Connection Tokyo, with the world's largest material library and material consulting division, also participates. We have established a system that enables us to design solutions with a comprehensive view of the entire value chain and thoroughly implement measures and PR.
 

"SDGs Business Solutions" provides three core capabilities: "the power to create," "the power to connect," and "the power to communicate." We aim to connect companies undertaking diverse initiatives through coordination unique to the Dentsu Group, create products, businesses, and systems, and then communicate the underlying vision in the most effective way to spark a movement that engages many people.

Takeshima: Building a circular economy is crucial for the planet and the environment, of course. But for companies, it means reducing costs and waste, creating customer engagement, and potentially generating new revenue by turning production waste into resources. It truly is a sustainable initiative that connects directly to business.

What we want to convey to everyone is our attitude: "We want you to join us," "Let's do this together." Building a circular economy system alone is no easy task. We don't want a relationship where we just consult or take on everything. Instead, we want to evolve this initiative together as partners. We aim to continuously update knowledge and information, invite new players, build the best team for each moment, and flexibly evolve our solutions.

We'd be delighted if not just companies, but also local governments, universities, research institutions, educational organizations, and various other groups would join us. Let's discover together a new way of approaching the SDGs that doesn't yet exist here. Our solutions can be applied to large-scale initiatives as a whole, or you can consult us on specific parts within a limited scope. For example, a company might have improved its packaging but not yet reached the stage of collection or recycling. We propose the optimal solution tailored to each company.

If you're interested in the circular economy, have specific challenges, or possess applicable technologies or initiatives, please feel free to reach out!

For "SDGs Business Solutions," Dentsu Inc. TeamSDGs serves as the point of contact. Our website provides detailed information about this solution. Please use this channel for inquiries as well.