Skills Development and Responsible Business Conduct for Transition

The ILO, in collaboration with the Ministry of Economy, Trade and Industry (METI), has initiated a project aimed at cultivating "skills development" in preparation for the shift in industrial structure towards a sustainable economy incorporating respect for human rights and promotes "Responsible Business Conduct," ultimately fostering decent work opportunities.

Challenge.1 - Structural Changes in Industry in Southeast Asia

The evolving industrial landscape and technological advancements driven by global socio-economic integration are reshaping the skillsets demanded in the labour market. In Southeast Asia, labour-intensive sectors, primarily manufacturing, face the most dynamic impact. The automation of production, the introduction of robotics, and the advent of digitalization are anticipated to elevate the risk of job displacement by over 60%. Addressing this challenge is pivotal to fostering inclusive and sustainable economic growth. This project aims to facilitate the acquisition of skills necessary to adapt to these transformations.

Challenge. 2 - Human Rights Risks in Labour-Intensive Industries, with a focus on Manufacturing

Indonesia and Thailand, among Southeast Asian nations, host numerous labour-intensive industries predominantly centred around manufacturing. Within these sectors, many Japanese corporations have established their presence, particularly in the machinery and automotive sectors. This project will engage in awareness-raising initiatives and training to introduce and implement "Human Rights Due Diligence," with the purpose of scrutinizing and responding to the risk of human rights infringements for various stakeholders.
This endeavour is not only aligned with the ESG (Environmental, Social, and Governance) framework, and meeting the expectations of ESG investors, but also contributes to the overall employment sustainability for workers.

Expected Outcomes - Promoting Responsible Corporate Behaviour for a Robust Supply Chain

The expected outcomes of this project encompass the following:

I.    Skills development to respond to changes in industrial structure toward a sustainable economy incorporating respect for human rights, and human resource development to increase employment opportunities.
The project will stimulate the development of key industries and bolster economic growth in Indonesia and Thailand. This will be achieved through support for skill development, ensuring a seamless adaptation to labour market changes, sustaining a "Just Transition" that safeguards against job losses resulting from shifts in industrial structure, and generating an increased number of higher-quality employment opportunities.

II.    Respect and promote responsible corporate behaviour and international labour standards consistent with the development priorities of the project countries.
Respecting workers' rights and other fundamental human rights within corporate operations is paramount for generating high-quality employment opportunities. This project will promote "Responsible Business Conduct," to governments and companies in the focus countries, which hold significant roles and responsibilities in advancing these principles within global supply chains.

III.    Raise awareness of the need to move to more resilient supply chains in the context of sustainable and inclusive trade and investment.
We will drive transformation by imparting knowledge to a diverse array of stakeholders, encompassing Japanese firms, institutional investors, and multinational corporations, on the principles of "Business and Human Rights." This educational effort will span the entirety of the global supply chain, covering both the upstream (industrial operation associated with procurement and transportation of raw materials and parts) and downstream (industrial operation connected to retail) aspects.

Target countries (industries, companies, etc.):

•    Indonesia (machinery and automotive industry)
•    Thailand (machinery and automotive industry)
•    Japan (institutional investors, multinational companies, etc.)

Project budget:

Approx. 2.1 million USD

Related SDGs

Contact:

Michihiro Tanabe (Project Technical Officer)
E-mail: tanabe@ilo.org