These\u00a0days,\u00a0the popular\u00a0phrases and\u00a0framework\u00a0of\u00a0\u201cSDGs\u201d,\u00a0\u201csustainability\u201d, and\u00a0\u201cESG\u201d have permeated the\u00a0global consciousness\u00a0to the point that there is not a\u00a0day\u00a0you will go without seeing these\u00a0words.\u00a0Interest\u00a0in\u00a0these fields\u00a0is rapidly growing all over the world\u00a0as\u00a0pushed by various\u00a0driving forces\u00a0including\u00a0the\u00a0growing demand from institutional investors\u00a0and\u00a0activists, the development of disclosure standards for corporate information (especially non-financial information),\u00a0the development of\u00a0voluntary\u00a0regulation through industry initiatives,\u00a0more robust\u00a0regulations through new legislation in each country\/region, and changes\u00a0in individual attitudes and preferences in the\u00a0consumer\u00a0markets\u00a0and labor markets.\u00a0Japanese companies are\u00a0also\u00a0facing\u00a0a\u00a0staunch realization\u00a0that\u00a0this global trend is too strong to ignore.\u00a0As\u00a0the\u00a0subject matter\u00a0of\u00a0SDGs and ESG is broad enough to be relevant to all corporate activities,\u00a0companies are required to\u00a0prioritize and\u00a0address\u00a0critical\u00a0issues while analyzing the impact of their own business activities on their stakeholders.\u00a0Moreover, it is not uncommon for cross-departmental efforts to be required.<\/p>\n\n\n\n
In September 2022, the\u00a0Government of\u00a0Japan\u00a0formally compiled\u00a0and\u00a0announced\u00a0\u201cthe Guidelines\u00a0on\u00a0Respecting Human Rights in Responsible Supply Chains\u201d,\u00a0which has highlighted\u00a0the importance\u00a0of\u00a0the\u00a0endeavour\u00a0of pursuing\u00a0\u201cbusiness and human rights\u201d and\u00a0conducting \u201chuman rights due diligence\u201d\u00a0for suppliers\u00a0and\u00a0other\u00a0business partners.\u00a0In\u00a0these\u00a0fields, so-called soft law, which does not entail legal obligations, plays an extremely important role, and many companies seem to be struggling to\u00a0deal with\u00a0such issues as\u00a0to\u00a0what\u00a0new policies\u00a0they should\u00a0implement\u00a0and to\u00a0what extent.\u00a0However, as mentioned above,\u00a0responding\u00a0to\u00a0requests from investors and\u00a0the increasing need\u00a0of disclosure standards,\u00a0it cannot be\u00a0denied\u00a0that\u00a0insufficient efforts to respect human rights, not limited to listed companies, may cause a default under a contract with\u00a0a company\u2019s business partners\u00a0or constitute serious reputational risks\u00a0which\u00a0may\u00a0lead to\u00a0a product boycott.\u00a0Furthermore,\u00a0it is necessary to\u00a0pay attention to the so-called\u00a0\u201cpositive risk management\u201d,\u00a0in which efforts to address environmental issues,\u00a0respecting\u00a0human rights, and social issues\u00a0will\u00a0create new business opportunities\u00a0or\u00a0innovations,\u00a0and\u00a0improve\u00a0a\u00a0company\u2019s\u00a0reputation.<\/p>\n\n\n\n
At\u00a0Kitahama\u00a0Partners,\u00a0we\u00a0provide advice on decision making and\u00a0actions of companies based not only on domestic and foreign laws, but also on\u00a0soft law\u00a0such as\u00a0global norms\u00a0and\u00a0various\u00a0guidelines\u00a0related to business and human rights.\u00a0In\u00a0this connection,\u00a0regarding\u00a0business\u00a0transactions\u00a0in\u00a0foreign\u00a0jurisdictions, particularly in Europe, there is an\u00a0important\u00a0need\u00a0to give proper counsel and\u00a0advice\u00a0which\u00a0take these issues into account, and\u00a0therefore,\u00a0our attorneys,\u00a0who have experience in such\u00a0types\u00a0of\u00a0cases overseas, are able to handle and navigate this evolving area of law and environmental and societal norms.<\/p>\n","protected":false},"author":232,"featured_media":0,"parent":0,"menu_order":127,"template":"","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":"","_links_to":"","_links_to_target":""},"practice-category":[6],"class_list":["post-4523","practice","type-practice","status-publish","hentry","practice-category-industry"],"acf":[],"yoast_head":"\n