Response to Administrative Guidance of the Agency for Natural Resources and Energy, the Ministry of Economy, Trade and Industry
2024/07/22
- JWPA News
A completion report on improvement measures in response to administrative guidance of the Agency for Natural Resources and Energy dated October 17, 2023 was submitted to and received by the Agency on July 2.
We report on the review report of the Review Committee established in response to the administrative guidance and the improvement measures taken based on the report as follows:
1. Contents of administrative guidance
a.Thoroughly review the decision-making and activities of the Association in a fair manner with the involvement of third parties, including investigations by external experts, in order to restore the trust of the public and society.
b.Take necessary measures to ensure thorough compliance with laws and regulations and transparency in organizational management.
2. Review by the Review Committee in response to the administrative guidance
In response to the above guidance, the Association (hereinafter referred to as the “JWPA”) established the Review Committee on Decision-Making and Activities of JWPA (hereinafter referred to as the “Review Committee”) in October 2023 and reviewed the facts. The Review Committee submitted the review report containing the fact-checking, identification of issues, and recommendations, which was received at the JWPA Board of Directors meeting held on April 24, 2024.
1) Review points of the Review Committee
The following three processes concerning the external announcement of its opinions by the JWPA, from the announcement of the results of the public tender for offshore wind power generation (Round 1) to August 2022, have been thoroughly reviewed as typical events of confusion in the JWPA that led to the guidance from the Agency for Natural Resources and Energy based on the related documentary evidence and the interviews and questionnaires with its members.
a. Process from the announcement of the Round 1 results of the public tender on wind power generation projects to the announcement of the JWPA recommendations
b. Process of opinion formation at interviews with business associations, etc. at the 13th Offshore Joint Working Group
c. Opinion formation process for the public comments on the Guidelines for Public Tender of Exclusive Occupancy and Use (revised draft)
The JWPA’s involvement with politics was also examined.
2) Recommendations for improvement by the Review Committee
The Review Committee pointed out that JWPA’s decision-making and announcement in the above processes were inappropriate in terms of transparency, neutrality, and fairness and recommended (1) to formulate the Activity Operation Rules (9 items) to prevent recurrence and (2) to realize the ideal state of the JWPA in terms of management and organization (3 perspectives).
(1) Formulation of the Activity Operation Rules
a. Basic rules for discussions and issues in the Association (compliance with the Antimonopoly Act and non-interference in the interests of members)
b. Basic rules for the decision-making process and how to make a statement when expressing the intention of the Association
c. Roles and responsibilities of directors, executives, and secretariat staff when collecting opinions of the Association (especially when there is a conflict of interest among members)
d. Basic rules for expressing opinions to external organizations (including mass media)
e. Ensuring the transparency of association activities to the members (e.g., detailed disclosure of meeting minutes)
f. Compliance regulations (rules) to ensure the neutrality and fairness of the Association
g. Rules for the personnel appointment of Association executives (directors, division chairs, etc.)
h. Basic rules for Association executives listening to members’ opinions
i. Others (those deemed necessary in light of social norms and the nature of the Association)
(2) Realization of the ideal state of the Association, including organizational perspective
a. Appointment of directors (including the composition of the Board of Directors)
Realization of an appointment system and organizational structure that are fairer and adaptable to changes in the industry situation for the composition of the Board of Directors that has been rigidly structured over the years
b. Member activity organizations such as divisions, etc.
Review and restructuring of the member activity organizations that are adaptable to the current industry situation, where offshore wind power is mainstream, and suit the convenience of members.
c. Governance enhancement
Formulation of the Activity Operation Rules to enhance governance as described in the previous section and development of a system to ensure its implementation to become an industrial association that guarantees transparency, fairness, and neutrality.
3. Measures in response to administrative guidance based on the recommendations
We established the Reform and Improvement Project Team (hereinafter referred to as the “Reform PT”) composed of voluntary members who wanted to participate, directors, and third-party observers in February 2024 in response to the recommendations of the Review Committee and implemented the necessary regulatory revision regarding “thorough compliance with laws and regulations” and “ensuring transparency in organizational management” required by the administrative guidance, specifically on the following items, while having discussions at the Review Committee.
1) Thorough compliance with laws and regulations
a. Enhancing a compliance system
b. Ensuring neutrality and transparency in relation to politics
c. Clarifying restricted acts as a non-profit organization
2) Ensuring transparency in organizational management
a. Realizing a fair composition of directors
b. Ensuring a fair and impartial organization that is not influenced by the interests and will of specific member companies
c. Organizing meetings of the Board of Directors and divisions in a manner that ensures neutrality, fairness, and transparency
d. Ensuring neutrality and transparency in expressing opinions externally
The JWPA will work to ensure these measures are firmly established and thoroughly taken in the organization and will work on further reforms. We will also strive to ensure compliance and improve transparency in our activities to meet the expectations of the public by working together with our members to further develop wind power.
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