Japan’s 2022 amendment to the Act on Promotion of Transparency in Public Procurement marked a significant shift toward ensuring accountability and sustainability in the construction sector. Effective from April 2023, the amendment introduced new requirements for the disclosure of sources of construction materials in all public works projects. This reform was driven by increasing public demand for transparency in government spending and growing environmental concerns surrounding the extraction, production, and use of critical building materials such as steel, cement, and timber. The policy aims to prevent the use of materials linked to illegal logging, forced labor, or environmentally destructive practices, and to promote the responsible sourcing of inputs in line with global sustainability standards.
Under this revised legal framework, Japanese contractors participating in public procurement tenders are now obligated to provide traceability data for key construction materials used in government-funded projects. This requirement extends beyond immediate suppliers and compels contractors to map their entire upstream supply chain for designated materials. Contractors must specify the origin of raw materials, identify key processing and manufacturing stages, and disclose the identity of smelters, mills, or sawmills involved. These measures are designed to create a verifiable chain of custody for critical materials, ensuring that public funds support ethical and sustainable supply chains.
A key enabler of this traceability effort is the open building-materials database maintained by Japan’s Ministry of Economy, Trade and Industry (METI). This database consolidates supplier certifications, environmental compliance records, and chain-of-custody documentation for domestic and international suppliers of construction materials. The database is publicly accessible and updated regularly, offering contractors a reliable source for verifying supplier claims and compiling compliance documentation. By leveraging this resource, contractors can validate that their steel is sourced from mills that meet decarbonization standards, that their cement comes from producers adhering to environmental permitting requirements, and that their timber is harvested in accordance with legal and sustainable forestry practices.
Integrating the METI database into procurement workflows requires a systematic approach. Contractors should begin by mapping their current supplier networks for steel, cement, and timber. This involves cataloging the names, locations, and certification statuses of all direct and indirect material providers. Once the supplier map is complete, contractors can cross-reference each supplier with entries in the METI database to verify compliance credentials. In cases where a supplier is absent from the database or where data gaps exist, contractors should engage directly with the supplier to obtain supporting documentation or consider alternative sources that meet transparency and sustainability criteria. This integration not only supports compliance but also strengthens supplier relationships by fostering a shared commitment to ethical sourcing.
To support public accountability and regulatory compliance, contractors are encouraged to create project-level procurement dashboards that consolidate and display building-material traceability data. These dashboards can be published on corporate websites or submitted alongside tender documentation as part of transparency reporting requirements. An effective dashboard should present key information in an accessible format, including supplier names, material origins, certification numbers, and sustainability ratings where available. The dashboard can also include data visualizations, such as supply-chain maps or charts showing the proportion of materials sourced from certified suppliers. This level of transparency helps reassure government agencies, stakeholders, and the public that construction projects are contributing to national sustainability goals.
A basic template for such a procurement dashboard might begin with a project overview section, summarizing the project name, location, contractor, and procurement scope. This can be followed by a table listing all critical materials, their quantities, and associated suppliers, alongside certification details such as FSC numbers for timber or JIS certification for steel. A separate section could highlight any challenges encountered in sourcing compliant materials and the steps taken to resolve them. Finally, the dashboard could provide links to supporting documentation, such as supplier certifications, chain-of-custody statements, or METI database search results, enabling third parties to verify the data independently.
Contractors should also ensure that procurement dashboards are updated regularly, particularly for multi-year projects where supplier networks or material sources may evolve. Establishing internal controls for data collection, verification, and publication will help maintain accuracy and consistency. It is advisable for contractors to assign dedicated compliance officers or sustainability managers to oversee these activities, ensuring alignment with both legal requirements and corporate social responsibility commitments.
In practice, early adopters of these transparency measures have reported additional benefits beyond regulatory compliance. Enhanced traceability has improved risk management by making it easier to identify and address supply chain disruptions or reputational risks linked to unethical suppliers. Contractors have also found that demonstrating leadership in responsible sourcing has strengthened their competitive positioning in public tenders, where sustainability credentials increasingly influence award decisions.
Japan’s revised Act on Promotion of Transparency in Public Procurement reflects a broader global trend toward supply-chain accountability in government spending. By proactively integrating open data resources such as the METI building-materials database and by adopting project-level dashboards, Japanese contractors can not only meet regulatory obligations but also set new benchmarks for transparency, sustainability, and public trust in the construction sector.