Strengthening employers' capacity on environmental, social and governance issues in Tokyo
6 February 2025
(ILO News) – An ILO (ACTEMP) workshop in Tokyo, Japan, brought together Apex and sectoral Employer and Business Membership Organizations (EBMOs) from across Asia and the Pacific to address the challenges and opportunities faced by small and medium-sized enterprises (SMEs) in adopting Responsible Business Conduct (RBC) and Environmental, Social, and Governance (ESG) frameworks.
Unlike environmental (E) challenges, which often have technical solutions, or governance (G) principles, which are clearly defined and require implementation by decision-makers, addressing social (S) issues demands continual engagement with workers and other stakeholders. The ILO, more generally, is increasingly engaged in ESG. Large enterprises use the UN’s 17 SDGs as a reference for ESG reporting. All these frameworks have a strong normative foundation based on the ILO’s International Labour Standards. Today, almost every company in the world references ILO standards in their ESG reporting.
The event fostered dialogue among EBMOs, together with sustainability experts. This promoted experience sharing and peer learning, as ESG trends as well as best practices were discussed. Participants engaged in interactive sessions to review and refine ESG training programmes and services. A strong emphasis was placed on capacity-building initiatives, equipping businesses with practical tools for implementing human rights due diligence (HRDD), conducting risk assessments, and adopting voluntary reporting frameworks aligned with global standards.
A key challenge for companies is obtaining the necessary clarity needed to guide how they implement initiatives and processes as well as the additional resources required to ensure compliance and manage risks. SMEs continue to face barriers in awareness, compliance, and resource allocation, particularly in labour-intensive industries such as electronics, mining, rubber, palm oil, and food processing. The workshop focused on the support role that EBMOs can provide to SMEs. “Trying to navigate through the alphabet soup of acronyms – ESG/RBC/SDGs/HRDD – can be baffling even for seasoned practitioners. SMEs and even larger companies are often completely lost” said Dr. Linda Lumayag (Malaysia Employers Federation).
© ILO
© ILO
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© ILO
© ILO
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The workshop highlighted the ILO’s unique position within the ESG landscape, reinforcing its role in supporting EBMOs to navigate evolving sustainability requirements. EBMOs, particularly those with labour and social mandates, are key actors in providing clarity to businesses on ESG compliance, including through offering tailored training, technical guidance, and policy support. Case studies from different countries illustrated how EBMOs are already assisting their members in adapting to new regulations, integrating due diligence processes, and improving workplace practices.
The workshop concluded with a call for proactive ESG strategies, moving beyond compliance-driven approaches to foster long-term business resilience and efficiency. ESG represents investment opportunities for businesses and governments but more awareness and capacity building is needed particularly for SMEs. Regional cooperation is increasing, which provides a strong foundation for collaboration among stakeholders and for more focused engagement by the ILO. Ultimately, by embracing ESG, EBMOs can help their members unlock new opportunities.
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