Japan: significant progress made in human rights due diligence

On 13 September, Japan’s Ministry of Economy, Trade and Industry (METI) released its Guidelines on Respecting Human Rights in Responsible Supply Chains. The aim is to promote respect for human rights within companies and facilitate the implementation of human rights monitoring mechanisms in supply chains. The guidelines apply to all companies operating in Japan, regardless of nationality or size. The guidelines are consistent with existing international human rights standards, including the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises, which they reference extensively. Many observers note that these ‘Government Guidelines represent a significant evolution in public expectations applicable to businesses with activities in Japan in relation to human rights.’ However, it should be noted that, with the exception of a text currently being drafted within the European Union, these directives do not constitute any ‘legal obligation.’ In March 2021 a study group was set up within METI and a first version of the texts was submitted for consultation in the period 08 to 29 August. However, several NGOs criticised the brevity of the consultation period, with some pointing to several shortcomings, notably regarding the complaints and redress mechanisms and the lack of specific instructions for small and medium-sized enterprises.