Do you know your company's "procurement code"? Sustainability considerations and their guidelines have become essential requirements for companies.

As major international events like the Olympics, Paralympics, and World Expos (Expo) draw near, sustainability-focused "procurement codes" (※1) have become a hot topic.

Procurement codes have been established and published for the Olympics and Paralympics since the 2012 London Games, and for Expos since the 2015 Milan Expo. Procurement that disregards sustainability is increasingly unacceptable internationally. This article will discuss companies that are seriously engaging with these procurement codes and embarking on establishing their own rules, from a PR perspective.

※1=A "sustainability-conscious procurement code" defines standards and operational methods to ensure consideration for sustainability within the procurement process for goods and services.

 

Causes of Climate Change and What We Can Do

We are now being starkly confronted with how our actions contribute to various forms of environmental destruction, and how this destruction is impacting our daily lives. This summer's extreme heat is one example; the recent surge in Pacific saury prices is another. We hear terms like "endangered species" everywhere, but remember these species were once common. If news reaches us that "that Pacific saury, always on our dinner tables, has finally been designated endangered," it signifies a critical situation—and the frightening possibility that it's not impossible.

I believe everyone senses how our unconscious actions are gradually causing disruptions in our own lives. This personalization is precisely what motivates the next step of action.

We are not being asked to merely overhear discussions about global leaders' statements or environmental legislation in politics, then offer shallow agreement with a "Yeah, you're right." What is needed is the resolve to voice criticism of such a society and to confront these difficult challenges ourselves.

Now is the time for companies to establish procurement codes

Amidst this, could there be a more appropriate time to make "procurement codes" our own? The Osaka-Kansai Expo 2025 is approaching. People from around the world will gather, and the facilities visited by this enormous number of attendees must captivate with design, astonish with next-generation functionality, and leave a lasting legacy in people's memories. As a prime opportunity for global appeal, this is undoubtedly a major undertaking not only for the nation but also for participating companies. Consequently, some companies will likely begin seriously engaging with these procurement codes and embarking on establishing their own rules.

Recent trends indicate that society now demands facilities prioritizing simplicity over extravagance, mindful of cost-effectiveness within budgets, and considerate of environmental impact both before and after the event. Indeed, companies are now expected to demonstrate a philosophy focused on eliminating various factors contributing to global warming, paving the way for sustainable hosting of such large-scale events, and passing the baton to the next host. Whether this philosophy is embedded from the initial planning stage is closely scrutinized and evaluated by the public. The level of public resonance with this approach significantly contributes to the event's overall success.

It's not just about building and finishing; consistent commitment from start to finish is essential. The final evaluation occurs once the total environmental impact measurement is completed after the event ends. If environmental reduction measures prove ineffective and fail to meet numerical targets, it could result in a negative assessment at the very last moment. Therefore, establishing several checkpoints along the way to verify if the plan is progressing as intended will likely become necessary going forward.

Japan Lags in Legalizing Procurement Codes

Many people in Japan may still be unfamiliar with procurement codes. However, many countries worldwide have already enacted legislation on this matter. For example, in May 2023, the EU adopted legislation prohibiting the market circulation or export of timber, palm oil, soybeans, cocoa beans, coffee beans, beef, natural rubber, and derivative products made from these materials harvested from land where deforestation has been confirmed. This means that procuring products contributing to deforestation is explicitly deemed a "crime" in the EU. Companies are also obligated to conduct environmental due diligence to verify the status of these products beforehand. Prior investigation is mandated, meaning ignorance is no excuse.

The UK enacted similar legislation in 2021, while the US introduced a bill in 2021, currently in the public comment phase as of late 2022. Furthermore, all these countries also mention human rights due diligence, requiring consideration for the human rights of those involved in harvesting and producing these goods. Turning to Japan, however, no legislation regarding these products currently exists, nor has any bill been considered. Only in the timber sector are importers and sawmills required to verify legality, while human rights due diligence remains at an early stage, with only guidelines in place.

According to the World Wide Fund for Nature Japan (WWF Japan), while the number of global companies establishing their own procurement codes increased 3.6-fold between 2012 and 2019, Japan's current situation must be considered significantly behind.

Furthermore, WWF Japan's research indicates that many domestic companies feel compelled to take some action regarding procurement codes due to these international trends. However, only about half of these companies have actually established procurement codes.

 
Meanwhile, one housing manufacturer has adopted a "zero deforestation policy" for its timber procurement, effectively banning the sourcing of wood from suppliers who haven't established a similar zero-deforestation policy. While this policy of only sourcing raw materials from companies sharing the same goals within their own business domain may present certain business disadvantages, it is a declaration made precisely because the company believes the value of clearly demonstrating this commitment internally and externally to society and consumers outweighs any negative aspects.

Looking at leading examples from overseas companies, Nordic furniture maker IKEA publicly discloses the origin of all wood used via its timber sourcing map, highlighting that 99.9% is FSC®-certified wood or recycled wood. Major supermarket COOP (Switzerland) has switched all palm oil used in its own-brand bread and confectionery products to RSPO-certified products and discloses traceability data back to the plantations. Both companies take pride in their unambiguous, unquestionable approach, and it is this confidence that enables such an open stance.

※2= FSC® certification is an international forest certification system for responsibly managed forests and forest products sourced appropriately to ensure sustainable use of finite forest resources. The FSC® logo indicates products made with consideration for forest environments and local communities.
 

※3= RSPO certification is a system established by the international NPO "Roundtable on Sustainable Palm Oil (RSPO)", founded in 2004 with the goal of promoting the sustainable production and use of palm oil.
 

The "FSC® Certified" mark certifies wood and paper products that have passed specific audits and is found on items like furniture, paper packaging, paper cartons, tissues, and copy paper. The "RSPO Certified" mark certifies plantations and products meeting specific standards and is found on products such as potato chips, cup noodles, margarine, and soap/detergent.

You can find these certification marks on the packaging of everyday items like milk and cup noodles.

Why can't Japan make this its own problem?

How can Japan make this a personal issue? We must recognize that Japan is contributing to global environmental problems in ways beyond our immediate sight.

Looking at Japan's carbon footprint reveals significant impacts in Southeast Asia and Africa. Representative examples include Indonesian palm oil, coffee beans from Papua New Guinea and Laos, cotton and sesame from Tanzania, and soybeans from Brazil. In fact, compared to the increase in forest area within Japan itself, the area of deforestation overseas linked to Japanese involvement is larger. Globally speaking, Japan is indeed contributing to advancing deforestation. Even if this occurs on other nations' territories, Japan cannot evade responsibility. Estimates indicate that by 2015, each Japanese person was already responsible for an average of 2.22 trees being cut down, with over 90% of these—2.07 trees—coming from overseas forests (※4). This amounts to a barbaric act akin to burning down the neighbor's greener grass.

※4=Research Institute for Humanity and Nature (2021)
https://www.chikyu.ac.jp/publicity/news/2021/0330.html

In fact, 70% of global deforestation occurs during the production of agricultural, forestry, and livestock products. According to WWF Japan data, between 2004 and 2017, a total of 43 million hectares of forest—roughly 1.2 times the size of Japan—disappeared across 24 locations worldwide. Countries importing such products naturally share responsibility.

Moreover, forests that once acted as a buffer absorbing more CO2 than China emitted have now, due to deforestation, become a source of CO2 emissions. The combined loss of absorption capacity and emissions from these forests is equivalent to making them the world's third-largest emitter. And Japan is one of the main contributors to this. Looking at the import value of products linked to deforestation, Japan ranks in the top five: China (24%) is first, followed by the EU (16%), India (9%), the US (7%), and Japan (5%). This is also not about its own territory, but rather a negative contribution through imported products, which might make it harder to recognize.

Incidentally, according to WWF Japan, the top three industries needing to establish procurement codes are agriculture, forestry, and fisheries; textiles and apparel; and the food service industry. The food service industry, in particular, uses large quantities of agricultural, forestry, and fishery products, yet its countermeasures are lagging. This is likely because their business is heavily influenced by purchase prices, making it difficult to prioritize sustainability in sourcing raw materials. However, the situation will only worsen if left unaddressed.

Increasing Opportunities for Engagement by Making It Personal Through Children

One approach to personalization involves deepening engagement through children. WWF Japan, which works on forest conservation, held a summer event for parents and children at Ueno Zoo on Thursday, July 27th, right after schools started summer vacation. Ahead of World Tiger Day on July 29th, the event focused on observing endangered tigers, learning about the critical situation facing tropical forests and wildlife, and exploring ways to protect them.

Eighty percent of Earth's species inhabit natural forests. This underscores that preserving forests as habitats for biodiversity is essential for the survival of all life, including endangered species. It's also crucial to remember that forest conservation inherently reduces CO2 emissions while maintaining biodiversity – these issues are always deeply interconnected.

This parent-child event involved folding endangered tigers using origami, scanning them with a smartphone AR app, and learning about challenges and solutions on a dedicated website. Twenty-two parent-child pairs participated during the height of July's heat. The event itself is positioned as part of a campaign launched by WWF Japan to coincide with World Rainforest Day on June 22nd this year. This awareness campaign will continue throughout the year. Its purpose is to inform people about the reality of endangered wildlife species, whose numbers are increasing annually due to the rapid loss of tropical forests in recent years, and to share actions we can take in our daily lives to protect forests and animals.

On the day, after origami and AR experiences in a conference room, participants observed a real tiger in its enclosure. Zoo tiger keepers and WWF Japan staff explained the tigers' daily lives at the zoo and their actual conditions in the wild, detailing how our lifestyles relate to certification marks for protecting their habitats. Yes, these certification marks are the FSC® mark and RSPO mark introduced earlier. Surprisingly, many products purchased domestically display these marks. The goal is for participants to understand the meaning of these marks and how their consumption choices can indirectly support the tigers before them—by selecting products bearing these marks, they can personally contribute to environmental efforts.

Indeed, the children had already learned about concepts like the SDGs in school, and their understanding of these systems was remarkably high. Because they learned so thoroughly, we even heard parents say they wanted to start putting this knowledge into practice starting today. Essentially, the key theme moving forward is how we can make these issues personally relevant and integrate them into our daily lifestyles. The special website also provides opportunities to learn and think about what we can do to protect forests inhabited by endangered species and the importance of certification marks. It is this kind of ongoing opportunity that can change people's awareness, and ideally, these actions will then influence corporate decisions.

On the WWF Japan site, you can also download a free summer research sheet. This sheet helps you find products displaying these certification marks, consider what you can do for animals and environmental conservation, and make a pledge. If you have children, I encourage you to explore this set of challenges together with them. It's not uncommon for ideas vaguely considered in childhood to be realized by today's children. This challenge set could be highly effective as a starting point for such activities.

・WWF Japan Campaign Special Site:
https://www.wwf.or.jp/campaign/rainforest-animal-origami/

As such, efforts to curb climate change still lack global coordination. Despite the United Nations and NGOs/NPOs loudly calling for action, and the media sounding the alarm, the situation remains largely unchanged. However, the ones who can break this deadlock are companies with the ability to execute action in various sectors, and the consumers who can support them. As mentioned earlier, companies can demonstrate their actions in their relationship with consumers, increase empathy for those actions, and also gain business returns. This should form the basis of a modern company's survival strategy.

Following the COVID-19 pandemic, a global movement to rethink corporate social purpose has gained momentum. As one direction within this, I urge companies to consider establishing guidelines for addressing environmental issues like climate change, forest conservation, and biodiversity. After all, who could possibly dislike a company that seriously cares about the planet?