Sustainability in Supply Chains

In its current regulatory landscape, Japan addresses human rights in supply chains but lacks regulations addressing critical environmental challenges such as GHG emissions, biodiversity impact, and deforestation.


Japan should expedite the formulation and enforcement of guidelines and regulations addressing the environmental impacts of Japanese companies' supply chains. Drawing inspiration from advanced frameworks like the EU's CSDDD and CSRD, which define robust business disclosures and due diligence obligations on ESG matters, including supply chains, would provide valuable guidance for Japan's regulatory development in this domain.