As a facility manager in Japan’s microelectronics manufacturing sector, you’re facing evolving ESG regulations and a global copper deficit. Here’s what you need to know and how to respond effectively.

Understanding the Regulatory Landscape

1. Corporate Governance Code:

This code, applied to listed companies, requires disclosure of sustainability initiatives, including environmental issues, human rights, and employee working conditions. Starting April 2022, companies listed on the Prime Market must disclose based on TCFD recommendations.

2. Climate Change Laws:

The Act on Promotion of Measures to Cope with Global Warming aims for a decarbonized society by 2050. Companies are obliged to report greenhouse gas emissions, with data compiled and published by the Minister of the Environment. The Climate Change Adaptation Act mandates climate change plans and adaptation measures.

3. Other Relevant Laws:

The Companies Act, Financial Instruments and Exchange Act, and Unfair Competition Prevention Act include provisions relevant to ESG, covering corporate governance, financial disclosures, and anti-bribery measures, respectively.

4. Soft Law and Guidelines:

Non-binding guidelines such as the Action Plan on “Business and Human Rights” (2020-2025) and the Guidelines for Human Capital Visualization promote transparency and sustainable business practices.