Japan Productivity Center
Japanese
HOME Site Map Contact Us
Our Mission
About JPC-SED
History & Achievements
Special Committees
Policy Proposals
Research and Reports
International Cooperation
Operational Units
Links
   
Research & Reports
2004
Study on Strategic Management and Environmental Strength in the 21st Century
(June 10, 2004)
 
On June 10, the JPC-SED presented a report entitled “Environmental Strength: Expectations of Companies as the Leaders of Culture and Civilization.” The report contains the results of the Study on Strategic Management and Environmental Strength in the 21st Century in addition to general discussions and proposals concerning environmental strength.

The Study on Strategic Management and Environmental Strength in the 21st Century examined listed companies maintaining a scale of more than 1,000 employees. These companies disclose their capital and management information to individuals and to the market, and because they employ a large number of people, their business activities have great influence on various business partners. With a focus on such leading companies in Japan, the study aimed to verify how management visions and environmental visions that serve as codes of conduct govern corporate behavior.

The study clarified specific concepts and principles underlying the activities of companies that respect the environment and strive to create new values, companies that actively advocate “environmental conservation processes” in their management policies as a part of their social responsibility, and companies that even go further to define corporate behavior according to new concepts. This report presents an analysis of the findings and proposals for strategic management and environmental strength in the 21st century.
 
• Summary of the Study
 
1. Overview
The study targeted 1,000 (943) major listed companies in Japan. Valid responses were obtained from 183 companies (19.4%). Of this number, 148 companies (80.9%) agreed to the disclosure of their participation in the questionnaire.
 
2. Major issues covered in the study
(1) Priority order of aspects that responding companies consider to be their social responsibility (top five replies)
 
(i) Compliance with laws and regulations (261 points)
(ii) Securing of profits and dividends (239)
(iii) Product and service safety (186)
(vi) Environmental protection and reduction of waste materials (108)
(v) Sustainable growth (87)
   
(2) 80.3% of companies have an accurate grasp of their energy consumption volume.
   
(3) 70.5% of companies have an accurate grasp of their total CO2 emission.
   
(4) 32.6% of companies have established indicators for “environmental productivity” and regularly examine them.
   
(5) Environmental productivity indicators utilized by companies (top five replies)
 
(i) Rate of change in reduction of industrial waste (67.8%)
(ii) Ratio of quarterly sales to total CO2 emission (55.1%)
(iii) Rate of change in total purchase volume of paper resources (47.5%)
(vi) Ratio of quarterly sales to total energy consumption (44.1%)
(v) Rate of change in green procurement (37.3%)
   
(6) Environmental productivity indicators are disclosed in an environmental report (79.7%) or through the company’s Web site (78.0%).
   
(7) 60.7% of companies have experience in eco-conscious product planning and developing, and 94.6% of those companies have actually produced eco-conscious products that are commercially viable.
   
(8) 89.6% of companies have established an “environmental vision or policy” aside from their management vision or basic management principles.
   
(9) 97.6% of environmental visions were established after 1991.
   
(10) 77.4% of companies have established an environment vision as “a manifestation of their social responsibility,” 64.0% to “define their corporate values also in the realm of the environment,” and 57.3% to “raise environmental awareness in their employees.”
   
(11) In addition to disclosing their environmental visions on their Web site in Japanese, 49% of companies publicize their environmental visions in one other language, 47% in two other languages, and 4% in three or more other languages.
   
(12) As external effects of having established an environmental vision, 45.1% gave “better corporate image” and 38.4% answered that “it became easier to fulfill their accountability.” Internally, they saw “increased concern about environmental issues (89.0%),” “increased awareness of segregated garbage disposal (65.2%),” “increased awareness in the conservation of resources and energy when developing products and services (64.6%),” “increased awareness of green procurement (56.7%),” and “increased awareness of simplifying and recycling packaging materials (51.8%).”
   
(13) 80.5% of companies that have established an environmental vision took the opportunity of its establishment to acquire ISO14001 certification.
   
(14) More than 57% of companies have promoted departments that carry out environmental efforts.
   
(15) 60.2% of companies began to consider environmental issues as an area deeply related to management strategies instead of as an area requiring the formulation of countermeasures.
   
(16) In more than 44.1% of companies, dedicated executives above the level of managing director are assigned to supervise departments specializing in the environment.
   
(17) Specific environmental promotion efforts are mainly undertaken as company-wide activities (top five and bottom five replies).
 
<Top five efforts> (i) Energy conservation efforts (91.3%)
  (ii) Resource conservation and paper re-use (90.2%)
  (iii) Segregated disposal and reduction of general refuse (88.5%)
  (vi) Reduction of conference handouts (83.1%)
  (v) Recycling and reduction of industrial waste (75.4%)
<Least-made efforts> (i) Regional contribution projects related to the environment (41.5%)
  (ii) Joint distribution or other efforts to reduce distribution energy (42.6%)
  (iii) Recovery of unusable products (43.2%)
  (vi) Efforts to reduce mobility cost (introduction of e-conferences) (47%)
  (v) Introduction of environmental productivity indicators (47%)
   
(18) 29.7% of companies actively disclose environmental technology they themselves discovered or developed. 20.3%, in principle, do not.
   
(19) 55.7% of companies are “currently considering” emissions trading, 40.4% are “not particularly interested,” and 3.8% are already participating in emissions trading.
   
(20) What are expected of the central government or local governments regarding environmental creation and other environmental issues (top three replies)
 
(i) Consideration of environmental tax based on an accurate understanding of industrial characteristics (65.0%)
(ii) Assistance and aid for environment-related efforts (59.6%)
(iii) Preferential taxation for companies showing improved environmental productivity (53.6%)
   
(21) What are expected of industrial organizations (top three replies)
 
(i) Positive viewpoints toward environmental regulations (55.7%)
(ii) Collection and disclosure of environment-related information from the administration (54.1%)
(iii) Active disclosure of information on environment-related technology (48.6%)
   
(22) What are expected of NPOs and NGOs (top three replies)
 
(i) Cooperation in issues that cannot be solved by corporate efforts alone (52.5%)
(ii) Good understanding of environmental efforts made by companies (47.5%)
(iii) Active participation in mutual information exchanges with companies (21.9%)
   
(23) What are expected of consumers (top three replies)
 
(i) Reflect corporate environmental efforts in consumer purchasing activities (55.7%)
(ii) Active cooperation in the collection and recycling of waste articles (47.0%)
(iii) Reflect corporate environmental efforts in consumer investment activities (37.2%)
   
• Overview of General Discussions and Proposals
   
1. General discussion: Conditions for building corporate environmental strength derived from the study results
—Environmental strength will determine the true value and survival of companies in the 21st century—
   
(i) Environmental efforts are an integral part of management strategies. Specifically, an environmental vision, an environmental management vision, or environmental management policies have been established, and the code of values that govern corporate behavior are easily understood and shared by all employees and business partners.
   
(ii) The environmental vision and various other environmental efforts, including those involving proprietary technology, are widely publicized not only internally, but also externally to the society at large.
   
(iii) All aspects in the value chain of products and services offered by the company—from their planning to materials procurement, production, distribution, marketing, accounting, and financial matters—reflect a coherent idea based on the environmental vision.
   
(iv) In conjunction with its outlook for business expansion and the provision of products and services, the company has an accurate grasp of its total consumption of resources and energy, total CO2 emission, as well as the emission of toxic substances. Its specific goals and priority regarding global environmental conservation are clear, and it makes systematic efforts toward achieving those goals.
   
(v) The president or an authorized management executive is assigned to supervise environmental efforts made by the company, and a comprehensive framework for company-wide undertakings is established.
   
(vi) Methods for indexing and evaluating the effectiveness and results of environmental efforts are established and presented in an “environmental report,” “environmental accounting,” or other similar formats.
   
(vii) In regard to consumers, NPOs, and other such stakeholders, the company aggressively works to build a relationship of trust and cooperation with people outside the company by endeavoring to promote their understanding of its efforts to protect and maintain the environment in the context of its business activities and provision of products and services.
   
2. Proposal: 23 Specific Suggestions for Realizing “Strategic Management and Environmental Strength” in the 21st Century
   
(1) Use comprehensive indicators to evaluate corporate growth potential.
   
(2) Publish the results of environmental productivity enhancement activities in business reports or financial reports.
   
(3) Think from the perspective of end users: provide functions (effects) that will satisfy end users (= customers).
   
(4) Switch from SCM (supply-chain management) to “resource circulation management.”
   
(5) Pursue “green” recovery in addition to “green” procurement.
   
(6) Develop effective and positive applications of information technology to improve resource productivity.
   
(7) Make active efforts to break away from energy-consuming technologies and pursue new models of R&D (technology development).
   
(8) Make active efforts to introduce a common system of joint utilization and distribution.
   
(9) Reduce mobility costs between “residence,” “workplace,” “shopping,” and “recreation,” and seek new energy-saving alternatives.
   
(10) Explore the potentials of green procurement (green commute) in the work force.
   
(11) Send out corporate messages that express strong environmental strength.
   
(12) Consider consumers as business partners in raising environmental strength.
   
(13) Actively develop business that “utilize” rather than “own” resources.
   
(14) Create a leading tourism country from the standpoint of a leading environmental country.
   
(15) Aim for increased labor productivity from a comfortable environment and an appreciation of the four seasons.
   
(16) Actively provide new environmental technologies to developing countries and newly growing countries.
   
(17) Create new brand values.
   
(18) Reexamine and redefine the role of each player in the social system who bears a major role in enhancing environmental productivity.
   
(19) Solve the dilemma between investors and beneficiaries.
   
(20) Aim to achieve a synchronized synergy between “personal advantages and disadvantages (ego)” and “environmental efforts (ecology).”
   
(21) Utilize new technologies (IC tags) and expand the market.
   
(22) Break away from energy-consuming agriculture, forestry, and fishery industries.
   
(23) Make active efforts to break free from a “throwaway” economy.
   
2006
2005
2004
2003
2002
2001
2000
Statistical Report

Copyright (C) 2009 JAPAN PRODUCTIVITY CENTER All rights reserved.