JAPAN Trends and Developments Contributed by: Hideaki Roy Umetsu, Aki Tanaka, Aritsune Miyoda and Chihiro Tsukada, Mori Hamada
Grievance mechanism As discussed above, establishing effective grievance mechanisms has become a critical challenge faced by the Japanese government and companies. Consequently, notable cross- company initiatives have been emerging within Japan’s private sector. A prominent example is the establishment of the Japan Center for Engagement and Remedy on Business and Human Rights (JaCER). Founded in 2022, JaC - ER aims to provide a non-judicial platform for grievance redress and to serve in a professional capacity to support and promote the resolu - tion of grievances by its member companies in accordance with the UNGPs. Since its inception, JaCER has garnered the support of a growing number of private enterprises, particularly large corporations, and its membership continues to expand. As a result, JaCER is increasingly play - ing a significant role in the landscape of griev - ance mechanisms in Japan, contributing to the development and implementation of effective remedies for business-related human rights As this article has discussed, Japanese com - panies have historically lagged behind their Western counterparts in addressing business and human rights issues. However, recent years have seen significant progress, and this momen - tum is expected to continue. Public awareness of business and human rights is rising rapidly in Japan, particularly in light of high-profile cases like those in the entertainment or media industry. As a result, companies are likely to face increas - ing pressure to respond proactively to these challenges. impacts. Outlook
A key issue moving forward will be extend - ing these initiatives from large corporations to SMEs, which form the backbone of Japan’s economy. While major companies have made notable progress, widespread adoption among SMEs remains limited. Collaboration between the government and large corporations will be essential to promoting the uptake of business and human rights initiatives across the broader business community. Another emerging challenge, especially from 2025 onward, is the growing divergence between European and U.S. approaches to ESG and DE&I. Differences in attitudes – and even the rise of anti-ESG and anti-DE&I sentiment – are becoming more pronounced. For Japanese companies, which often have substantial busi - ness relationships with both regions, finding an appropriate balance in their own initiatives will be a complex and significant issue.
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