PwC Japan and sustainability management leaders to hold an Executive Sustainability Forum meeting on the circular economy

Forum aims to achieve sustainable growth based on a circular model in Japan and throughout Asia

PwC Japan Group
April 12, 2023

The PwC Japan Group (Chair: Koichiro Kimura; hereinafter PwC Japan), together with business leaders of Japanese corporations engaged in sustainability management, will hold the second meeting of the Executive Sustainability Forum (hereinafter, the Forum) on 2 June. At this meeting, representatives from the Forum’s member corporations will discuss the topic of a circular economy* with the aim of reporting on the Forum’s related initiatives at an international conference in 2024.

*Circular economy: An economic and business model that decouples economic activity from the consumption of materials and energy by creating closed-loop cycles in which waste is minimised or even eliminated, and in which resources, including carbon, are reused, as opposed to a conventional linear ‘take, make, dispose’ approach.

Introduction to the Forum and a look back at the first meeting

The Forum was established in November 2022 by corporate leaders actively engaged in balancing the need to solve environmental and social issues with business. It is one of only a few examples of private companies taking the initiative in creating a venue for business leaders to exchange views on sustainability management in Japan.

The topic of discussion at the first meeting was the role and mission of Japanese corporations toward decarbonisation in Asia. At this meeting, after a report on the results of a PwC survey, participants engaged in enthusiastic discussion on their companies’ decarbonisation initiatives and their outlook for Asian markets. (You can read a report on the first meeting here.) Based on the need for a solid vision and plans in order to simultaneously realise corporate sustainability and growth and on the rapid growth that is anticipated in the sustainability field in Asia, this first Forum meeting resulted in an agreement among the participants on the following:

• To enhance their global competitiveness while also achieving sustainability management, Japanese companies will need to have an ambitious vision to contribute to the world, formulate specific plans based on that vision and supported by technology, and make collaborative efforts to implement those plans.
• The financial sector, which supports such activities, will need to consider diverse means of investment to generate a virtuous cycle of funds, assets and capital.
• Among the many sustainability-related issues we face, environmental and social issues, including decarbonisation, natural resources, and human rights, are of particular importance for achieving a circular economy, and will therefore need to be continually addressed going forward.
• The aim of Japanese companies to take the lead in achieving sustainability and growth simultaneously, together with companies in the rest of Asia.
• Global communications regarding these specific initiatives will also be essential to promote a global understanding of how sustainability is being realised in Japan and the rest of Asia.

Plans for the second meeting

The discussion topic for the second meeting is the grand design of a circular model, with a focus on business models for realising a circular economy in the ASEAN region. The participants will consider concrete approaches and platforms for achieving growth and a decarbonised society, as well as building greater resilience to geopolitical risks.

A circular model is a business model aimed at achieving an economy that recycles not only finite mineral resources but also carbon and natural resources, requiring optimisation across the entire value chain. Because the commercialisation of such models requires the cooperation of business partners, Forum participants will also discuss the possibilities of new platforms.

Expectations are high for Japan, as host country of the G7 Summit to be held in Hiroshima this May, to exercise leadership in taking on the important challenges faced by the international community. Amidst a rising focus on important issues related to climate change and the environment and heightened efforts to devise rules for a sustainable society, the G7 Ministers’ Meeting on Climate, Energy and Environment will be held in Sapporo on 15 and 16 April. Because addressing sustainability issues while also achieving economic growth will be difficult without concerted initiatives by corporations, the Forum brings together corporations that are striving to simultaneously grow and to solve important problems in line with the global situation to make concrete proposals and work toward their implementation.

The second meeting of the Executive Sustainability Forum

Forum participants

The Forum’s 11 member corporations and their representatives (in Japanese alphabetical order; honorifics omitted)

Planned activities

As a venue for ongoing studies of how to eliminate the trade-offs between growth and sustainability in Asia, achieving both, and of the kind of growth to be pursued in a new era, the Forum has now resolved to further discussions on the topic of building circular models. The circular economy is an area where Japanese corporations in particular are called upon to exercise leadership, drawing on their strengths to create new markets. In addition, for studies on the building of circular models, the Forum also aims to collaborate in this field with various enterprises and organisations. The Forum also aims to present an initial proposed framework at an international conference in 2024.