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Driving Inclusive Growth: Diversity, Equity & Inclusion (DEI) in Japan’s Business Landscape

  • romagorman0511max
  • Apr 27
  • 6 min read

Image of people in various colors, highlighting the value of diversity


There is a huge pullback on DEI (Diversity, Equity & Inclusion) lately among US companies since President Donald Trump’s election. In fact, 90% of the top 400 companies in the S&P 500 index have cut some references to DEI, while many of those have ditched the term completely*1. Despite the backlash, DEI remains to be a crucial topic to achieve a more equitable society across the world. 


In Japan, “DEI” has shifted from a fringe HR slogan to a board‑level KPI in just a few years. From the Cabinet Office’s women‑empowerment targets to the Tokyo Stock Exchange’s new 30% female‑director rule, corporate Japan is racing to embed diversity, equity, and inclusion into strategy, governance, and human‑capital disclosure*2. This article is perfect for students and early‑career professionals who want to understand the policies, metrics, and corporate initiatives propelling Japan’s DEI surge—and where they might fit in.



1. Overview of DEI Momentum in Japan


1.1 Definition & Background


DEI refers to diversity (the mix of attributes such as gender, age, nationality, disability, LGBTQ+ status, experience), equity (fair systems that remove structural barriers), and inclusion (cultures where every employee can contribute fully). Japan’s push gained speed when the Corporate Governance Code (revised 2021, 2024) tied board diversity to long‑term value creation*3, and when the Financial Services Agency mandated disclosure of three core indicators—female‑manager ratio, male childcare‑leave uptake, and gender pay gap—in securities reports from FY 2023 *4. 



1.2 Current Situation & Latest Trends in Japan


Female leadership: The share of women on prime‑market boards climbed to 13.4 % in 2023, on track for the JPX’s ≥30 % by 2030 target*5. 


Disability inclusion: From April 2024 the statutory employment rate rose to 2.5 %, and part‑time disabled staff (10–20 h/week) now count as 0.5 persons toward the quota*6. 


Human‑capital disclosure: 890 listed companies reported the new DEI metrics in their first compulsory filing; investors are already demanding multi‑year trend charts*7. 


LGBTQ+ equality: A record 375 firms won “Gold” in the 2024 PRIDE Index, signalling rapid diffusion of LGBTQ+ workplace policies*8. 


Gen Z preference: 95 % of students say they are more willing to join a company that is proactive on DEI—even at a pay cut*9. 



1.3 Representative Policy & Industry Initiatives


Initiative

Summary

Lead Actors

JPX Female‑Director Rule

≥1 female director by 2025; ≥30 % by 2030.

Tokyo Stock Exchange, Cabinet Office*5

FSA Human‑Capital Disclosure

Mandatory publication of three DEI KPIs in annual reports.

Financial Services Agency*4

Disability Quota Revision

Statutory rate up to 2.5 %; “0.5 count” for 10‑h contracts.

Ministry of Health, Labour & Welfare*6

PRIDE Index

Annual benchmarking & awards for LGBTQ+ policies.

NGO work with Pride *8

Keidanren DEI Charter

Industry federation urges members to link diversity to competitiveness.

Japan Business Federation*10



2. Examples of DEI targets and initiative in Japanese businesses


To be inline with the above changes occurring at a national level, businesses in Japan are increasingly setting a higher DEI targets, and are following through with their goals. The section below highlights some examples of these DEI targets and initiative among different industries: Telecommunications & IT, Finance, Manufacturing & Mobility, and Professional Services. While some focus on the female-to-male ratio in leadership and management, others focus more on bridging the gender pay-gap.



2.1 Telecommunications & IT


2.1.1 Fujitsu Ltd. *11


Overview & Role: Aims for 50 % female managerial hires by 2030; public dashboard tracks gender pay and promotion gaps.


Specific Initiatives: Global DNI Council, unconscious‑bias training for all 120 000 staff, disability‑friendly UI design competitions.


Collaboration Framework: Partnering with Tokyo University for STEM‑women scholarships and with start‑ups on neurodiversity tech.



2.2 Finance


2.2.1 Mitsubishi UFJ Financial Group (MUFG)*12

Overview & Role: First megabank to set a 30 % female‑manager target (FY 2028) and to issue a “DEI Progress Bond”.


Specific Initiatives: Gender‑agnostic parental leave of 20 weeks; PRIDE‑Index “Gold” since 2020.


Collaboration Framework: Works with local governments to run financial‑literacy courses for teenage girls and LGBTQ+ youth.



2.3 Manufacturing & Mobility


2.3.1 Toyota Motor Corporation*13

Overview & Role: Links DEI metrics to executive bonuses; targets 1 000 women in STEM leadership by 2030.


Specific Initiatives: Inclusive design labs for wheelchair users; “Universal Skills Academy” retrains mid‑career technicians.


Collaboration Framework: Joins Keidanren’s regional DEI consortiums; sponsors para‑sports engineering programs.



2.4 Professional Services


2.4.1 PwC Japan Group*14


Overview & Role: Publishes annual Human‑Capital Pulse report; gender‑pay gap < 2 %.


Specific Initiatives: Mandatory DEI metrics in client ESG audits; neuro inclusive workplace certification pilot.


Collaboration Framework: Advises SMEs on meeting new disclosure rules; hosts cross‑industry DEI analytics hackathons.



3. Desired Talent & Skills for DEI‑Related Roles


As highlighted above, DEI momentum in Japan has picked up its pace in just a few years. This means more companies are searching for talents who could accelerate their DEI initiatives to make their workplace a more inclusive and inline with the national guidelines. Here, we have listed some skills companies might look for in DEI-related positions for those wanting to pursue a career in this field.



3.1 Deepening Technical & Analytical Expertise


  • People‑analytics & ESG reporting: Skill in Python/R or BI tools to model pay‑gap scenarios and report Scope‑3 social impacts.

  • Inclusive‑design engineering: UX/UI that meets WCAG 2.2 and Kansei design principles for diverse users.



3.2 Soft‑Skill & Cross‑Disciplinary Competence


  • Change‑management storytelling: Communicate the business ROI of DEI to skeptical stakeholders.

  • Psychological safety facilitation: Lead workshops that surface minority voices.



3.3 Career Paths & Credentials



Entry Route

Typical Roles

Credentials

New‑grad HR/ESG track

DEI analyst, people‑data scientist

Certified Diversity Professional (CDP)

Mid‑career specialist

Inclusive‑design lead, accessibility engineer

IAAP CPACC/CPWA

Cross‑functional leader

DEI program manager, ESG investor‑relations lead

PMP, CFA ESG, HR Analytics



4. Appeal & Future Potential of Working in DEI


Now that you have seen the skills you may need in DEI-related positions, we will now highlight some of the appeals and future potentials of working in DEI. DEI is not simply a slogan, but rather a social movement with real impacts - promoting DEI in the workplace not only improves the lives of the 'minority', but it also improves everyone's experience at work. If you want to be the leading force in achieving a better workplace, you might want to consider working in DEI as it can bring practical benefits to your career!



4.1 Front‑Row Seat to Societal Change


Implementing data‑driven pay‑gap fixes or launching LGBTQ+ benefits has immediate human impact and builds rare change‑management muscle.



4.2 Market Growth & Job Security


Mandatory disclosure plus investor scrutiny means DEI expertise is migrating from “nice‑to‑have” to “licence to operate”. It is no longer a "slogan" for a social change, but rather a real "commitment" to tackling an deeply-rooted issue in our world.



4.3 Cross‑Sector Collaboration


DEI roles liaise with NGOs, regulators, and academia—broadening networks and sparking innovation. This can bring a huge benefit to your career as it shows you are able to work alongside different teams and agency to achieve a collective goal.



4.4 Purpose & Fulfilment


Driving equitable workplaces aligns personal values with organizational goals, a key motivator for Gen Z talent.



5. Conclusion & Future Outlook


Japan’s DEI momentum is accelerating via regulatory pressure, investor demand, and shifting workforce expectations. Regardless of the changes in DEI momentum across the world, it is crucial for students and job-seekers in Japan to understand the local context. The future outlook may vary depending on the below timeframe:


Short‑term: companies will scramble to meet 2025 female‑director and 2.5 % disability quotas.


Medium‑term: human‑capital dashboards and AI bias‑detection tools will professionalize DEI analytics.


Long‑term: as inclusion embeds into supply‑chain audits and product design, DEI specialists will become integral to strategy, not staff overhead—creating rich, purpose‑driven career paths for today’s students and job‑seekers.


(Editor：Jelper Club Editorial Team）



Sources


  1. Financial Times “US companies drop DEI from annual reports as Trump targets corporate values”: https://www.ft.com/content/c2320415-dcf6-4b69-acd4-3187507d762c


  2. 内閣府男女共同参画局「共同参画 2024年2月号」​: https://www.gender.go.jp/public/kyodosankaku/2023/202402/202402_02.html


  3. JPX「コーポレート・ガバナンスに関する報告書 記載要領（2024年4月改訂）」​: https://www.jpx.co.jp/equities/listing/cg/tvdivq0000008j85-att/nlsgeu0000064zec.pdf


  4. 金融庁「人的資本・多様性等の開示例 2023」​: https://www.fsa.go.jp/news/r5/singi/20231227/06.pdf


  5. JPX「女性活躍・男女共同参画の重点方針 2023」: ​https://www.jpx.co.jp/rules-participants/public-comment/detail/d1/aocfb4000000379g-att/aocfb400000037bl.pdf


  6. 厚生労働省「障害者の法定雇用率引上げと支援策の強化について」: ​https://www.mhlw.go.jp/content/001064502.pdf


  7. PwC Japan「人的資本開示状況の分析（2023年3月期）」: https://www.pwc.com/jp/ja/knowledge/column/sustainability-disclosure/human-capital-analysis02.html


  8. work with Pride「PRIDE指標2024 レポート」: ​https://workwithpride.jp/wp/wp-content/uploads/2024/11/prideindex2024_report.pdf


  9. PR TIMES「Z世代のD&I意識調査 2024」​: https://prtimes.jp/main/html/rd/p/000000007.000038292.html


  10. 経団連『Annual Report 2024』DEI章 : https://www.keidanren.or.jp/profile/Keidanren_Annual_Report2024.pdf


  11. Fujitsu “Non-Financial Indicators”: https://www.fujitsu.com/global/about/csr/indicator/


  12. MUFG “MUFG Investors Day 2024”: https://www.mufg.jp/dam/ir/presentation/2024/pdf/slides240710_en.pdf


  13. Toyota “TOYOTA INTEGRATED REPORT 2024”: https://global.toyota/pages/global_toyota/ir/library/annual/2024_001_integrated_en.pdf


  14. PwC “Facts & Figures / 数字で見るPwC Japan” : https://www.pwc.com/jp/ja/about-us/annual-review/facts-and-figures.html


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