Business and Human Rights 2025

JAPAN Trends and Developments Contributed by: Hideaki Roy Umetsu, Aki Tanaka, Aritsune Miyoda and Chihiro Tsukada, Mori Hamada

agement information is mandatory, while disclo - sure of strategy and indicators/targets is subject to materiality considerations. Companies must also disclose workforce diversity data, including the ratio of female managers, male employees taking parental leave, and the gender pay gap. Forced labour issues in overseas supply chains Japanese companies with supply chains in Southeast Asia face significant human rights challenges, particularly regarding the forced labour of migrant workers. Many migrant work - ers incur substantial debts to pay recruitment fees and are vulnerable due to their precarious status and cultural or linguistic differences, lead - ing to situations of debt bondage and forced labour. To address these issues, more companies are adopting responsible recruitment guidelines and requiring suppliers to use ethical recruitment agencies. JP-MIRAI, a Japanese organization promoting corporate respect for human rights, launched the Fair and Ethical Recruitment Initia - tive (FERI) and established the “Fair and Ethical Recruitment Guidelines for Migrant Workers” in 2024. Under this system, companies that ensure migrant workers do not pay recruitment fees – or pay no more than the maximum allowed – can be certified by JP-MIRAI. While the costs associ - ated with fair recruitment can deter companies from addressing these issues, certification may help build trust with stakeholders and encour - age greater investment in ethical recruitment practices. Similar issues exist domestically in Japan, prompting government efforts to revise relevant laws and regulations. JP-MIRAI is also working with large companies to address migrant worker issues. However, adverse impacts in developing

countries are often more severe due to weaker legal protections and limited economic resourc - es, making forced labour risks a priority for Japa - nese companies. UN Working Group report In 2023, the UN Working Group on Business and Human Rights visited Japan to assess the country’s implementation of the UNGPs. In May 2024, it issued a report summarising its findings and recommendations. The report is a valuable resource for understanding how Japan’s human rights situation is viewed internationally. The report acknowledges positive develop - ments, such as adopting the National Action Plan and the Guidelines, as well as initiatives by businesses and industry associations. How - ever, it also highlights ongoing concerns, includ - ing discrimination and harassment of vulnerable groups (women, LGBTQI+ individuals, persons with disabilities, indigenous peoples, minorities, migrant workers, and technical interns), the lack of effective remedies for victims of busi - ness-related abuses (notably in the contexts of the Fukushima Daiichi nuclear disaster, PFAS contamination, and the media and entertain - ment industries), limited awareness and capac - ity among businesses – especially SMEs – to conduct HRDD, and the need for greater policy coherence and government guidance. Key recommendations include adopting man - datory HRDD legislation, establishing an inde - pendent national human rights institution, strengthening the OECD National Contact Point, addressing structural discrimination, providing comprehensive training on the UNGPs and the National Action Plan, ensuring human rights considerations in a just transition, and provid - ing effective remedies for affected individuals and communities.

CHAMBERS.COM