JAPAN Law and Practice Contributed by: Koichi Saito, Wataru Shimizu, Suguru Yokoi, Ai Tanaka and Mai Kurano, Anderson Mori & Tomotsune
industrial fields with labour shortages rather than international cooperation through skills transfer. Also, a basic policy for the ESD pro - gramme and field-specific operation policies for each ESD industrial field will be established. The field-specific operation policies will set out the expected number of acceptances for each field. An accreditation system by the Employment-for- Skill-Development Organisation (ESDO) for the ESD Plan prepared for each foreign national will also be established. Children and Families Agency With regard to human rights violations against children, the Children and Families Agency (CFA) was established in April 2023. The basic prin - ciple of this Agency includes the protection of children’s basic human rights and equal edu - cation for all children. In June 2024, the Child Sexual Abuse Prevention Law (the Japan DBS Law) was enacted and promulgated to prevent sexual violence against children, with the CFA playing a central role. This Act requires private sectors, such as schools and licensed nursery schools, as well as cram schools and swimming schools, to confirm the history of sexual crimes of their employees and prospective employees. 2.2.4 Transparency and Reporting Requirements Due to an amendment to the Cabinet Office Order on Disclosure of Corporate Affairs (Minis - try of Finance Order No 5 of 1973), it has become mandatory for listed companies to disclose sustainability information in their annual secu - rities report. Specifically, a new section titled “Approach and Initiatives Relating to Sustainabil- ity” has been added to the “Business Overview” section of the annual securities report, requir - ing listed companies to report on four items: “governance” , “strategy” , “risk management” and “metrics and targets” . Companies obliged
to submit an annual securities report under the Financial Instruments and Exchange Act (Act No 25 of 1948) (FIEA) must include such informa - tion. Companies that disclose information based on the Act on Promotion of Women’s Active Engagement in Professional Life (Act No 64 of 2015) and the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members (Act No 76 of 1991), are required to disclose the ratio of female managers, the ratio of male employees taking childcare leave, and the gender wage gap between men and wom - en in the annual securities report as part of the “Status of Employees.” For other items, compa - nies will disclose relevant information when they determine it is important. If false statements are made or material facts are not stated in the annual securities report, the company will incur civil liability under the FIEA and may additionally be subject to criminal pen - alties and the payment of surcharges. In September 2023, the Financial Services Agen - cy (FSA) highlighted changes to the Corporate Governance Code, emphasising the importance of understanding the relationship between finan - cial and non-financial information and its contri - bution to enhancing corporate value. Regarding diversity, the FSA indicated that it was neces - sary to consider investments in human capital in accordance with the company’s characteris - tics and growth stage. It also emphasised the importance of considering resilience in relation to various risks that companies face, including those within their supply chains. 2.2.5 Indigenous Rights Legislation In April 2019, the Act on Promoting Measures to Achieve a Society in which the Pride of Ainu People is Respected (Act No 16 of 2019) was
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