Today, implementing sustainable business practices is a crucial component of any successful organization, especially in a fast-evolving country like Japan. With the growing concerns about environmental and social changes, there’s been a significant shift towards greener consumerism over the past years. This trend presents both challenges and opportunities for business leaders, as they must adapt their practices to meet the evolving demands of conscious consumers while remaining competitive.
A Japanese philosophy of もったいない (mottainai) emphasizes the importance of making the most out of our resources to minimize waste and promote a more environmentally friendly lifestyle. Transitioning to a green economy develops business strategies that contribute to long-term success. So, what practices can your business implement to build a more sustainable future in Japan? Let’s find out!
What is sustainability in business?
In business, sustainability refers to an organization’s ability to make a positive impact in an ethical and responsible manner. Organizations that implement sustainable practices always consider various environmental, social, and economic factors when making their business decisions.
Creating a sustainable business involves strategically managing corporate resources to ensure the long-term endurance of a thriving enterprise. In exchange for making a positive impact on the world, the business receives support from its customers, employees, community, and investors.
Benefits of sustainable business practices
Incorporating sustainability into businesses enables organizations to recognize and tackle various challenges. Managing obstacles effectively is an important aspect of achieving success as a business. Here are some of the example where sustainability makes a difference for an organization:
Innovation
When faced with environmental and social issues, thinking outside the box is necessary to overcome these challenges. Going green involves constantly finding innovative solutions that reduce waste, conserve energy, and optimize production processes. This contributes to creativity and innovation within organizations.
Positive impact on communities
When prioritizing ethical practices, fair work standards, and the community’s well-being, sustainable businesses contribute to a more equitable and prosperous society. By doing so, they can inspire other organizations and individuals to adopt more environmentally and socially responsible practices.
Reduced expenses
Although businesses often view sustainability commitments as expensive practices, they enable companies to optimally allocate their resources, reducing production costs. Environmentally conscious practices can lead to long-term financial health, as businesses that implement them are often better equipped to manage risks and adapt to changing market demands.
Increased funding opportunities
Businesses with sustainable practices often have more funding opportunities because they align with the growing investor focus on Environmental, Social, and Governance (ESG) criteria. Investors are increasingly looking to support companies that demonstrate a strong commitment to long-term environmental and social responsibilities, as these businesses are seen as more resilient in the face of global challenges. Listen to our podcast with Terrie Lloyd to learn how to attract investors for your business in Japan.
Improved customer engagement
As people become more aware of environmental and social issues, they are also more likely to support businesses that are committed to sustainability. Fostering stronger relationships with mindful consumers increases customer engagement, enhances brand value, and gives your business a competitive advantage.
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5 Impactful Ways to Create a Sustainable Business in Japan
1. Hybrid Work
Hybrid work, which combines remote and in-person work, has become a widespread business practice in recent years. Beyond its flexibility and work-life balance benefits, hybrid work offers significant advantages for sustainable business practices.
Given the global trend of increased environmental pollution, Japan is no exception. The transportation sector in Japan accounts for 18.5% of carbon dioxide emissions, which may not seem like a large number, but it plays a significant role in the country’s overall environmental impact. Implementing hybrid work not only helps reduce greenhouse gas emissions but also allows for flexibility and enhanced employees’ well-being, creating a more sustainable and supportive work environment.
2. Partner with Non-Profit Organizations
Non-profit organizations (NPOs) in Japan have been playing an essential role in creating values in Japanese society by addressing social and environmental issues with people’s well-being in mind. By partnering with NPOs and charities that align with your business’s sustainability goals, you can learn how to get started on adapting sustainable practices and making more impactful contributions to your communities. In addition, working with non-profits can enhance a company’s reputation as a socially responsible and ethical organization, which customers and investors always value.
You can find a list of non-profit metropolitan-level organizations on the official website of the Japan NPO Center.
3. Supply Chain Management
Sustainable businesses strive to reduce their carbon footprint, conserve resources, and minimize pollution to protect our planet. Supply chains generally require a large amount of energy, especially if your business specializes in producing a physical product. To reduce carbon emissions from production and transportation, it’s important to analyze and manage your supply chain. This can be done by:
- Reducing consumption of natural resources and increasing the use of renewable / recycled materials
- Collaborating with other companies (horizontal collaboration)
- Investing in green technology
- Having clear, measurable supply chain sustainability goals
- Regularly reporting on performance
By implementing some of these practices early on, your business will lay a strong foundation for its sustainable practices.
4. Circular Economy Practices
A circular economy is an economic model that aims to eliminate waste and keep resources in use for as long as possible. Businesses can achieve this by having products and systems that minimize waste and pollution and by reusing, repairing, and recycling their materials.
Japan has a long-standing tradition of circular economy practices and efficient resource allocation, dating back to the Edo period (1603-1868). For businesses today, implementing circular practices means designing their products for reuse. That way, not only do you prioritize recycling, but you also extend the lifespan of your product through repair and remanufacturing, minimizing the need for constant production.
5. Technology and Innovation
Another way to achieve significant sustainability gains is by investing in technology and driving innovation. Japan’s technological developments have always been regarded as highly advanced, making it one of the most innovative economies globally. Therefore, there’s no better place for you to leverage cutting-edge technologies and foster innovation as core sustainable business practices than here! Integrating Artificial Intelligence (AI) and blockchain into your organization’s operations can significantly improve efficiency, minimize the consumption of resources, and ensure transparency. With these practices, your business can reduce its environmental impact while staying competitive in the global market.
Notable start-ups that have embraced Sustainable Business Practices in Japan
According to the 2024 report by the SDG Transformation Centre, Japan ranks 18th out of 166 countries in progress towards the Sustainable Development Goals (SDGs). Despite this relatively high ranking, the nation faces significant challenges in transitioning to a more sustainable economy.
Yet, a number of progressive start-ups in Japan are tackling these challenges head-on by adopting innovative and environmentally conscious practices. These companies aren’t only contributing to the country’s SDG efforts but are also setting new benchmarks for sustainable business models in various industries. Let’s take a look at some of the notable start-ups that have embraced sustainable business practices in Japan:
Socious
Socious is a social community app that helps find social impact jobs and recruit environmentally conscious talent. Using machine learning, Socious will match you with opportunities that best suit your aspirations and goals, helping you save time and focus on what matters to you. By bringing people together to work on socially conscious projects, Socious fosters collaboration and innovation, empowering individuals to make a meaningful impact on their communities and the world.
ListenField
ListenField is an agricultural technology start-up that uses data-driven science and machine learning to predict and suggest strategies for the crop’s quality and growth speed. With a strong focus on SDG goals, they help farmers maximize productivity and income while minimizing the environmental footprint. ListenField’s mission to provide the farming community with more nutritious and less wasteful practices that include efficient use of land and resources is essential for building a more equitable and ecologically responsible future for all.
mymizu
Founded in 2019, mymizu has been on a mission to connect people worldwide with plastic-free water by 2030. They are Japan’s first app that allows you to discover, track, and add on a map your nearest (and favorite) water refill spots that offer free refills to help you save money and reduce plastic consumption. In addition to their app, mymizu actively engages in workshops and educational programs to inspire others to create a sustainable future.
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Final Thoughts
Since 1603, Japan has been recognized for its sustainability, as it needed to make the most of its resources because of restricted trade during the Edo period. Unfortunately, in recent decades, some of these traditional practices have disappeared due to modern consumption patterns and industrial growth.
Despite this shift, Japanese businesses now have the opportunity to reestablish and elevate the country’s reputation for sustainability. The unique cultural heritage and limited natural resources make sustainable development particularly important for Japan’s long-term prosperity and global leadership in environmental stewardship.
Numerous start-ups and well-established organizations have embraced the transition to sustainable business practices in Japan. Whether you’re just thinking about starting your business in Japan or have already founded your company here, embracing green initiatives is not an option but a necessity. By doing so, you won’t only contribute to a healthier planet but also enhance your brand’s reputation, attract eco-conscious consumers, and ensure long-term success in an increasingly sustainability-driven market.
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