Japan's Path to Human Rights Due Diligence: The National Action Plan
Following their G20 commitment in Hamburg in 2017, where they agreed to foster human rights in line with internationally recognized frameworks, Japan developed its National Action Plan (NAP) on Business and Human Rights in October 2020. This framework aligns with the UN Guiding Principles on Business and Human Rights (UNGPs) while adapting to Japan's unique business environment. The Japanese government views the NAP as essential for maintaining Japanese companies' global competitiveness and for establishing new global standards for business conduct. The government has stated that encouraging Japanese companies to advance progressive initiatives on respecting human rights will also contribute to boosting and maintaining their competitiveness in the global market. The NAP made it clear that the government expects all Japanese enterprises to adopt human rights due diligence processes based on the UN Guiding Principles and other international standards, and to engage in dialogue with stakeholders across their supply chains. However, the NAP itself did not offer specific guidance on the practical steps companies should take. A joint survey conducted by METI and the Ministry of Foreign Affairs in 2021 — which received 760 responses from Tokyo Stock Exchange-listed companies — revealed that only approximately half of respondent companies had implemented any human rights due diligence measures, and many did not know how to implement specific measures. This gap made the need for actionable guidance unmistakable. Unlike other jurisdictions that often focus on specific human rights issues like human trafficking or child labor, Japan's approach is notably more comprehensive, encouraging companies to consider a wide range of potential human rights abuses based on their sector and geographic location. This broad scope reflects the ambition of Japan's framework to be globally relevant and applicable across industries with diverse supply chain footprints throughout Asia and beyond.
The Ministry of Economy, Trade and Industry translated Japan's high-level commitments into actionable steps for businesses operating across global supply chains.
On September 13, 2022, Japan's Ministry of Economy, Trade and Industry (METI) published the finalized Guidelines on Respecting Human Rights in Responsible Supply Chains. These guidelines build directly on the 2020 NAP by offering practical guidance on the steps that companies should take to give effect to international standards, including the UN Guiding Principles, the OECD Guidelines for Multinational Enterprises, and the ILO Tripartite Declaration. The guidelines represent the first human rights due diligence guidance of its kind in the Asia region, signaling Japan's intent to lead on corporate accountability in the Asia-Pacific. The guidelines expect businesses to conduct human rights due diligence — identifying adverse human rights risks and impacts in their operations, taking actions to prevent or mitigate those risks, and evaluating the effectiveness of those actions over time. Adverse impacts are defined as those a company's activities directly or indirectly cause or contribute to, or to which a company is linked through its business relationships. The guidelines also contemplate actions such as suspending or terminating contracts with global suppliers that do not respect human rights, and implementing grievance mechanisms open to all stakeholders. In April 2023, METI published additional practical reference materials and case studies to further support implementation. These materials include a Casebook that lists human rights risks by sector — covering areas such as agriculture and fishing, manufacturing, and services — as well as a Worksheet to help companies identify and prioritize their specific risks. The goal is to promote human rights due diligence particularly among small and medium-sized enterprises, which have lagged behind larger companies in adopting these practices. Although the guidelines and materials do not impose mandatory requirements, METI strongly recommends that Japanese companies adopt these frameworks in order to promote greater respect for human rights.
Japan's guidance provides a structured risk assessment matrix and phased implementation planning tools that companies can apply across their supply chain tiers.
The risk assessment framework embedded in Japan's human rights due diligence guidance asks companies to evaluate two primary dimensions: geographical risks and industry-specific risks. Geographical considerations include political stability, local regulatory environments, human rights track records, labor law enforcement, and cultural and social factors in the regions where suppliers operate. Industry-specific risk assessment focuses on known sector challenges, historical incidents, industry best practices, applicable regulatory requirements, and emerging risk factors unique to each business context. On the implementation side, the guidance outlines a structured planning approach that includes assembling the right team — with an executive sponsor, cross-functional steering committee, and defined roles and responsibilities — and allocating the necessary resources, including budget, staffing, technology, and external expertise. Companies are also encouraged to develop a clear timeline with key milestones, review points, and contingency buffers to ensure that human rights due diligence becomes an ongoing, periodically reassessed process rather than a one-time exercise. A gap analysis framework also helps companies assess where they currently stand relative to METI's guidelines. This involves reviewing existing human rights policies and procedures, comparing current practices against the guidelines, identifying documentation gaps, and reviewing past incident reports. Together, these tools are designed to give companies of all sizes — from large multinationals to small and medium enterprises — a clear roadmap toward aligning with Japan's human rights expectations across their supply chains.
While currently voluntary, Japan's framework is reshaping supply chain norms across the Asia-Pacific and may signal the foundation for future binding legislation.
Japan's human rights due diligence framework, though non-binding, has already demonstrated significant traction. A majority of large Japanese companies have taken meaningful steps in compliance with the guidelines, with 64.8% having implemented a human rights policy and over 70% of those conducting due diligence now requiring their global suppliers to comply with their human rights policies as well. This rapid adoption underscores the influence that well-crafted soft law guidance can have even in the absence of legal mandates. As one of the first non-Western countries to implement a business and human rights framework, Japan is likely to influence other countries in the Asia-Pacific region. Japanese companies' suppliers and business partners in countries such as Vietnam and India will feel increasing pressure from their Japanese buyers to adopt and implement human rights policies consistent with Japan's guidelines. Other APAC governments may also look to Japan's model — from its NAP to the METI guidelines — as a template for introducing business and human rights concepts into their own regulatory environments. Looking ahead, there is a real possibility that Japan's current voluntary principles could be enshrined in legislation. Mandatory human rights due diligence regimes are emerging globally, including through the EU's Corporate Sustainability Due Diligence Directive and similar laws in France and Germany. Japanese companies with global operations — particularly those exposed to EU markets — may face mandatory HRDD obligations through those foreign laws regardless of Japan's domestic stance. Businesses that begin implementing the steps proposed in Japan's guidance now will be well-positioned if and when such legislative changes take place domestically.
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