A Diagnostic System That Accelerates the Achievement of SDGs for SMEs (Small and Medium-Sized Enterprises), Which is the Source of Energy in Japan Visualize your company’s efforts and management policies on the SDGs in just 30 minutes
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INTRODUCTION
Countries around the world are aiming to achieve the SDGs by 2030. As a member of the international community, Japan must accelerate its movement. According to the 2016 Economic Census, the ratio of small and medium-sized enterprises in Japan is 99.7% based on the number of enterprises. In other words, the action of SMEs, which are the industrial bases of Japan and the region, on the SDGs is indispensable. Therefore, Nippon Koei has developed "KIBOH 2030™", a diagnostic tool that can visualize the achievement level of SDGs and business potential. We will take action for a better future throughout the country and start a business that will help make Japan more energetic.
PROFILE
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Manager, International Environment Dept., Global Environment
DivisionHeadquarters., Consulting Operations Headquarters., Nippon Koei.Junko Kikuchi(Sustainability Consultant)
Ms. Kikuchi has been engaged in advisory services on natural resource management, ecosystem conservation, and environmental, social, and human rights due diligence for ODA projects in Asia, Africa, and South America. Currently, as head of the Sustainability Strategy Unit, Ms. Kikuchi is promoting the acceleration of initiatives that contribute to the achievement of the SDGs in the private sector, local governments, and public projects. Ms. Kikuchi is also a team leader of the Sustainability Promotion Team of the Overseas Consultants Association of Japan (ECFA), and has served as a researcher for the Asia-Pacific Institute for Research on the Implementation of the SDGs in Asian Business (APIR).
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International Environment Dept., Global Environment DivisionHeadquarters.,
Consulting Operations Headquarters., Nippon Koei.Sayaka Ito(Sustainability Consultant)
After being assigned to the Environmental Technology Department of the Global Environment Division, Ms. Ito was engaged in the development of KIBOH 2030™. In her previous position, she worked for an investment support service company, where she provided corporate research reports on stock markets and corporate management strategies, viability verification, and growth analysis to financial information vendors (Reuters, Bloomberg, QUICK, etc.), online securities companies, and individual investors. Ms. Ito has also been engaged in online information distribution and corporate research support for financial information vendors. Utilizing her previous experience, she has been working on visualization of corporate sustainability initiatives and support for information disclosure in the Sustainability Strategy Unit.
- *The department name, job title, and interview content were at the time of the interview.
STORY
SMEs that support the region are the key to increasing SDGs / ESG investment and financing needs.
−−−Awareness of achieving the SDGs has increased in Japan as well. In fact, when Nippon Koei researched about small and medium-sized enterprises, many companies wanted to take action for the future. However, they were worried that they do not know the strengths of their companies in the SDGs, and what work is needed to achieve it."KIBOH 2030™" was developed targeting such small and medium-sized enterprises. We talked to the team leader, Ms. Kikuchi about how the project was carried out.
As a result of research, several companies have taken some action against the SDGs. However, most of them tell you about what the number of the 17 goals of SDGs their business can be linked. Certainly, that is necessary as a first step. However, what is really required by society is to take an action based on that recognition. Since SMEs are the very foundation of the local economy, the goal is to take an action on a business basis and make them sustainable.
"KIBOH 2030™" has been developed to be a compass that visualizes what is contributing to the SDGs in existing businesses, what can be contributed to the SDGs in future efforts, and what is necessary to aim for ESG management.
The SDGs diagnostic tools we have seen so far have too many items and place too much emphasis on the goals of the SDGs 17. Therefore, we categorize our corporate environmental, social, and governance initiatives into four categories: business management, environmental management, labor human rights, and climate behavior. This enables self-assessment of SDGs.
In addition, the number of questions has been narrowed down to 50 so that you can answer with four choices. One of our strengths is that we can make a diagnosis in just 30 minutes. SMEs that have failed to showcase their efforts and achievements that contribute to their SDGs can have a source of information that can be evaluated by others without spending time and effort. For regional financial institutions and local governments, it is a system that can be linked to the spread and understanding of SDGs in the region starting from the SDGs, the discovery of business opportunities, and consulting for lenders.
From sustainability consulting, aim to achieve SDGs in Japan as a whole.
−−−"KIBOH 2030™" was conceived in 2018, and has been jointly developed with TREE Co., Ltd. since 2019. The knowledge of TREE, which has been developing its business focusing on the sustainability of society for more than 15 years, and the knowledge of Nippon Koei, which has been consulting for solving problems in the local community for more than 75 years, are fully incorporated. In the beta demonstration, we obtained various opinions and data, and improved the accuracy of the questions, which helped us to release the official version in December 2021. Where is the motivation and driving force involved in this project?
Actually, I can't really feel it from the perspective of accomplishment. This is because system development is not the goal. The goal is to enliven local SMEs from the perspective of SDGs and achieve the achievement of SDGs in Japan. Of course, there are a lot of hardships, but I am studying every day and discovering a lot because I am aiming for a better future.
Until about 10 years ago, it was an era of economic supremacy. However, human beings have noticed that the global environment will become strange as it is, and their values are beginning to change. In the midst of this trend, the United Nations declared the SDGs, and due to the spread of the new coronavirus infectious disease, the earth and its own country could not stand as it is.
As the value standards of society change, of course, what society demands from companies also changes. The significance of a company's existence is to meet the demands of society. In other words, it is becoming the mission of modern companies to transform the business itself so that it can meet the demands of society.
Of course, as I meet various business owners, I sometimes get the topic of "whether it is profitable or not". However, I have said, “Social demands can be said to be demand itself. Let’s think together!”. Although it has been verified overseas, in recent years, the correlation between SDGs efforts and business performance has begun to be confirmed. As a sustainability consultant, we will accelerate our steps toward the future together with the managers who will be diagnosed.
It's a personal feeling, and the employees around me share the same feelings, but I want the company to be a company that society needs 100 years from now. Today's employees have that baton, and by accelerating our own sustainable business, we want to be a bridge to the next generation. I am still involved in sustainability work today; with the words of the founder, Mr.Yutaka Kubota, " Act with integrity and contribute to society through technology and engineering.".
−−−The official version of "KIBOH 2030™" was completed with the participation of many stakeholders. Its contents have been brushed up many times so that it is easy to understand in a short time and easy to connect to action. From the release of "KIBOH 2030™" in December 2021, Nippon Koei will take Japan's SDGs to the next stage.
