This is a report on commissioned research regarding actual situation survey and awareness promotion of human rights due diligence in SMEs, conducted as part of the FY2023 Supplementary Global South Future Industry Human Resource Development Project by METI. The report was compiled by PwC Consulting LLC in February 2025.
Background and Purpose of the Survey
This survey aims to understand the current situation of human rights due diligence in Japanese SMEs and clarify challenges and countermeasures for its promotion, amid strengthening international efforts for corporate respect for human rights. It is conducted against the background that appropriate response to human rights risks has become essential for improving international competitiveness of SMEs, particularly as economic partnerships with Global South countries deepen.
Actual Situation of Human Rights Due Diligence in SMEs
The survey conducts large-scale questionnaire surveys and interviews targeting SMEs, analyzing recognition, implementation status, challenges, etc. of human rights due diligence both quantitatively and qualitatively. It reveals that many SMEs face challenges in identifying and assessing human rights risks and formulating countermeasures, with detailed analysis of differences in implementation status by industry and company size.
International Trends and Response to Legal Regulations
The report organizes trends in human rights due diligence-related legislation in major countries, including the EU Corporate Sustainability Due Diligence Directive, German Supply Chain Act, and French Duty of Care Law, analyzing their impact on Japanese companies. It particularly points out that compliance with these regulations has become an urgent issue for SMEs expanding overseas or incorporated into large companies' supply chains.
Recommendations for Awareness Promotion and Support Measures
Based on survey results, specific support measures for promoting human rights due diligence in SMEs are recommended. These include promoting awareness activities through cooperation with industry associations, providing practical guidelines and tools, establishing expert consultation systems, and constructing phased implementation support systems, presenting detailed support approaches tailored to SME circumstances.
Human Rights Considerations in Global South Expansion
The report particularly emphasizes the importance of appropriately understanding local human rights risks and implementing prevention and mitigation measures for Japanese companies expanding into Global South countries. It specifically demonstrates approaches to human rights considerations for sustainable business development from the perspectives of working conditions, impact on local communities, and environmental considerations.
The article evaluates this as important policy research results that support sustainable and responsible international business development and contribute to long-term competitiveness improvement of Japanese companies through promoting human rights due diligence in SMEs.