Alliance Maker
As US Ambassador to Japan Rahm Emanuel prepares to hand over the reins to a new envoy, he talks to The ACCJ Journal about the experience, the importance of the alliance, and the future.
ACCJ Person of the Year Rahm Emanuel reflects on three years as the US ambassador to Japan
After being tapped by US President Joe Biden to serve as the nation’s ambassador to Japan, Rahm Emanuel arrived in Tokyo in January 2022 at a pivotal moment for the world. The Covid-19 pandemic was raging, Japan’s border closures were wreaking havoc on the business community, and the ripple effects were exposing vulnerabilities across the region.
Strengthening the bilateral relationship was essential. During his time as chief of mission, Emanuel has tirelessly worked to build bonds that foster a prosperous future not only for the United States and Japan, but for the entire Indo–Pacific.
In recognition of his strong support, the American Chamber of Commerce in Japan named Emanuel its 2024 Person of the Year and honored him with a special event on October 23 at Tokyo American Club.
As he prepares to hand over the reins to a new envoy, the 31st US ambassador to Japan talks to The ACCJ Journal about the experience, the importance of the alliance, and the future.
How can the business community strengthen the US–Japan alliance?
The US–Japan alliance is far from limited to our far-reaching security cooperation and the alliance’s place at the heart of a new latticework of security partnerships across the Indo–Pacific. That, of course, is fundamental to our relationship and to our collective deterrence in the region, but the United States and Japan have made strides on every front over the past three years.
As the largest foreign direct investor in each other’s economies, our two nations are persistently pursuing opportunities to forge closer links in business and research. In the fast-evolving environment of emerging technologies, our tech firms and academic institutions have the opportunity to lead the way in the research and development of artificial intelligence (AI), quantum computing, semiconductors, and other cutting-edge scientific fields.
But just as important as technological advances are our measures to protect them. This means tightening our export controls to ensure that technologies such as advanced AI chips don’t end up in the hands of adversaries with malign intentions. Ultimately, this is about securing our intellectual property, our economies, and the jobs of tomorrow.
“As the largest foreign direct investor in each other’s economies, our two nations are persistently pursuing opportunities to forge closer links in business and research.”
Of course, we need to ensure we have the relevant education programs in place to train the workers who will be shaping these 21st-century technologies. The United States and Japan have made real progress in this area through partnerships between tech companies and universities. We now need to keep up the momentum by continuing to expand and enhance these talent pipelines.
Investment is the fuel of great business ideas and ambitious thinking. Since the United States has a flourishing venture capital ecosystem, there are boundless opportunities for cooperation in this area between US and Japanese companies. Japan has long been a source of innovation and invention. It’s just a matter of finding the funding to ensure those ideas can take flight.
One area with huge potential is Japan’s biotechnology sector. An increasing number of start-ups are drawing interest from investors here. With greater collaboration and support from US biotech enterprises, and investors with expertise in the sector, Japan can become a leading biotech hub, not just in Asia but globally.
How do talent hurdles and gaps in DEI and marriage equality impact the alliance’s economic strength?
Japan faces the dual challenges of a rapidly aging society and a declining birthrate, which means that the country doesn’t have a person or a talent to lose when it comes to winning the 21st century.
Every country, including the United States and Japan, has a long way to go in fully implementing the principles of diversity, equity, inclusion, and accessibility. But if we are to build well-functioning societies and thriving economies, we need to leverage all our assets. It’s about properly and fairly employing the people we have and embracing an ethos of lifelong learning, upskilling, and retraining.
How can we best collaborate on AI?
Looking at the speed at which AI is being developed and adopted, there is no time to lose in ensuring the United States, Japan, and our allies remain at the forefront of this technology. It is imperative that we set the pace in its continuing evolution and in establishing a fully functioning, well-regulated ecosystem that is aligned with our laws and interests. The sector is already seeing a lot of research and development cooperation and cross-border investment between the United States and Japan. Having talked to many major players in the field, I am confident that this trend will only grow.
During former Prime Minister [Fumio] Kishida’s state visit to Washington in April, we saw the launch of an initiative between US and Japanese universities and private sector partners in both countries to boost AI-focused research and workforce development.
The partnerships between Carnegie Mellon and Keio Universities, and between the Universities of Washington and Tsukuba, are supported by $110 million in investment from Microsoft and other US concerns as well as a consortium of nine Japanese companies.
Similar partnerships between Japanese and US universities and leading tech companies were launched in the fields of semiconductors and quantum computing last year. Both programs are about making groundbreaking advances that will have global benefits while educating the workforce of tomorrow.
Empowering our best and brightest in these critical fields will pay dividends both for our two nations and the world.
How can cooperation on climate change and clean energy be strengthened?
Two of the greatest challenges facing us all are climate change and energy security. Just as in so many other sectors, the United States and Japan are well placed to combine their respective scientific expertise in the development of new and cleaner energy technologies.
Earlier this year, Japan became the first international collaborator in America’s Floating Offshore Wind Shot initiative, which aims to reduce costs associated with the energy source. Having committed ¥120 billion to the development of wind technology and launching the Floating Offshore Wind Technology Research Association (FLOWRA) this year, Japan clearly recognizes the enormous potential of offshore wind.
Our two countries are also partnering on advanced small nuclear reactor technology, for which demand is only set to increase as we build more data centers to power generative AI. Meanwhile, Japan’s largely untapped geothermal energy resources hold tremendous opportunities for further collaboration between Japanese and US energy corporations.
These areas of private sector cooperation and investment not only reinforce our energy security but also offer us opportunities for growth in other markets, as we join forces to help developing countries devise their own clean energy solutions and infrastructures.
How important has the US–Japan Year of Tourism been following the border closures?
While the news in Japan is dominated by the record-breaking numbers of inbound tourists, the number of Japanese tourists visiting the United States continues to rise following the pandemic. Destinations such as Hawaii and New York City remain extremely popular, and, thanks to a certain Japanese baseball player by the name of Shohei Ohtani, Los Angeles—and Dodger Stadium, in particular—welcomed thousands of fans over the course of the MLB season this year. With Shohei recently named the National League’s MVP, we can expect to see even more Japanese travelers heading to California and elsewhere in the States when the 2025 season kicks off.
There are few places in the world with the sheer diversity of natural wonders and cultural and culinary experiences. Next year’s Expo 2025 in Osaka will be a chance to truly showcase all that the United States has to offer. Our interactive pavilion is designed to inspire visitors to learn more about the United States, explore the country in person, and even consider studying there. We expect the expo to help boost visitor numbers to the United States in 2025 and in the years ahead.
The recent agreement to establish Japan as our 18th Global Entry partner country couldn’t come at a better time, and is sure to enhance the travel experience of Japanese visitors to the United States. Since Japan is our largest foreign direct investor, and Japanese companies employ nearly a million Americans, it makes good business sense to make entry as straightforward and as stress-free as possible for pre-approved visitors. This latest agreement is another reflection of the strength of our bilateral ties.
How important was the Biden–Kishida summit?
[Former] Prime Minister Kishida’s state visit in April ushered in a new era for the alliance. It cemented the work we had been doing for the previous two years to deepen our cooperation in a multitude of areas. Security might be a key pillar of our partnership, but we are leveraging our strengths to drive innovation and growth on every front, from energy and education to science and space exploration. The United States and Japan, as President Biden reiterated during the state visit, are global partners whose endeavors and achievements are being felt across the Indo–Pacific and beyond.
The alliance is now at the heart of a new latticework of multilateral partnerships across the Indo–Pacific. By replacing our “hub-and-spoke” architecture of regional bilateral relationships with multilateral cooperation and consensus, we have built an energized environment of trust and dynamism in the region.
The historic trilateral partnerships we forged with Japan and South Korea and with Japan and the Philippines—as well as the work of the Quad strategic grouping of the United States, Japan, India, and Australia—boost our deterrence in the Indo–Pacific while providing renewed momentum for greater cooperation and integration between countries and economies. One thing is for certain: There is much more to come in the years ahead.
“What we do over the next three years will determine our presence and our vision over the next 30 in the region.” That line from my confirmation hearing in 2021 turned out to be my guiding principle during my time here.
How might Japan’s new political landscape impact bilateral cooperation?
Our efforts over the past three years to strengthen the US–Japan alliance, and to reassure allies and partners that the United States is a permanent Pacific power and presence, have received universal support from across the political spectrum on both sides of the Pacific.
There is a clear understanding in Japan and in the United States that the alliance forms the bedrock of our collective deterrence in the region, and that continued cooperation with other regional partners and allies is critical to confronting a China that seems intent on dominating its neighbors and forcing the region to play by its rules.
How has Japan changed your view of America?
Distance has given me perspective on both America’s strengths and challenges. My first few weeks in Tokyo were certainly eye-opening. Seeing people leave valuables on tables or benches while they went to get coffee or jog around the Imperial Palace revealed a level of social trust I had never witnessed before.
Equally bewildering—but beautiful—was the sight of young schoolchildren walking alone to and from school each day, with cars coming to a complete stop when children raised their hands in the air before crossing the road. Those scenes highlight to me how much kids in the United States have been robbed of their innocence. We make so many compromises and concessions for our safety in America. It’s been liberating to be free of that constant and nagging concern.
What I have been repeatedly reminded of while here is the dynamism of America’s entrepreneurial ecosystem. Our unique and unrivaled environment of venture capital firms and angel investors is what drives innovation and invention.
Our university research programs and private-sector tie-ups are unmatched, too. It’s no surprise that so many entrepreneurs, start-ups, and scientists gravitate to the United States—a place that embraces risk, encourages expression, and champions big thinking.
What is your message to the next ambassador?
The past three years have been about shoring up alliances, building multilateral partnerships, and strengthening our security commitments. With a firm framework now in place, the years and decades ahead will be about developing those strategic relationships and initiatives further while ensuring that the stability of the Indo–Pacific is protected and its economic vibrancy preserved.
Strengthening Cyber Risk Management
ACCJ member Ted Sato shares how his new cybersecurity book, written in collaboration with Keidanren, came about and discusses the issues it addresses.
Keidanren collaboration delivers book with practical advice to corporate leaders
As concern about cyber risk grows in Japan, a new book by veteran American Chamber of Commerce in Japan member and Marsh Japan, Inc. Senior Vice President Ted Sato aims to help corporate management find the most effective approach to mitigating risk and effectively responding to events.
Sato authored the book with Toshinori Kajiura, a member of Keidanren (the Japan Business Federation) and a senior researcher for information and communications technology policy at Hitachi. Kajiura was previously chair of Keidanren’s Working Group on Cybersecurity Enhancement.
🔼 Watch the video above for more insights from Sato himself.
Published in February by the Nikkan Kogyo Shimbun, a Japanese industry newspaper, Strengthening Cyber Risk Management: A Keidanren Handbook to Cyber Risk Management is designed to provide corporate managers with practical guidance for dealing with cyber risk.
Not to be confused with cybersecurity, cyber risk is defined by the US Department of Commerce’s National Institute of Standards and Technology as the “risk of financial loss, operational disruption, or damage from the failure of the digital technologies employed for informational and/or operational functions introduced to a manufacturing system via electronic means from the unauthorized access, use, disclosure, disruption, modification, or destruction of the manufacturing system.”
Sato told The ACCJ Journal that the book, which spans more than 200 pages, was written by professionals from the battlefield in easy-to-understand language. “We wanted corporate managers to be able to ask effective questions at the earliest stages of any cyber risk event. That is very important.”
“We wanted corporate managers to be able to ask effective questions at the earliest stages of any cyber risk event. That is very important.”
The idea came after a series of events last May which Sato conceived with Nikkan Kogyo Shimbun. The well-received sessions showed corporate managers how to deal with cyber risk, not solely as a technical issue but to emphasize management and factors related to organizational culture.
Keidanren had been hosting its own events since 2014, working to change the mind-set of corporate management on this critical issue. The organization built on Sato’s efforts to bring together professionals with similar motivation to create the Cyber Risk Management Japan Study Group, which was a supporting contributor to the book.
These efforts were also supported by the late Hiroaki Nakanishi, who was chair of Hitachi and Keidanren and contributed the foreword.
The book’s core advice draws on a 2014 report by the Internet Security Alliance and the National Association of Corporate Directors’ handbook on cyber risk, which recommends a one-team approach to corporate management. Beginning with the importance of expert advice from outside the company, the book advises an “art of science” approach that balances technology, human factor management, and operational excellence to ensure an organization’s readiness, response and recovery, and recurrence prevention.
The book has been well received by reviewers for its practical guidance.
“It is very meaningful to promote cooperation with experienced US firms at this early stage for Japanese companies,” Sato said. “If all goes well, next we plan to make an English version to share in Asia.”
Bridge the Gap
Tamao Sasada, Japan country executive for Bank of America and president of BofA Securities Japan, sits down with The ACCJ Journal to share her thoughts on a number of topics, including how Japan can push the DEI and ESG agendas forward.
Bank of America’s Tamao Sasada shares her thoughts on DEI, ESG, and sustainable finance
Tamao Sasada says that her grandmother was her mentor. “When I was a kid, she always told me that I would need to have a career with a professional skill set,” Sasada shared. Her advice was based on experience gained as a woman doctor during World War II—something rarely seen during those days—that gave her this wisdom to share with the granddaughter who, one day, would lead Bank of America in Japan.
Sasada was already a career-minded student when she attended university in Japan in the early 1990s, but those words from her grandmother helped her find her path. She chose to study law.
But what should be her next step? Where should she work?
“Back then, some Japanese women who aspired to advance their careers chose to work for US or non-Japanese companies, as these were perceived to be more performance driven and gave women more opportunities to advance their careers,” Sasada explained. “So, after graduation, I chose to become a lawyer in New York.”
From there, her path took her into the world of banking and back to Japan. Today, as Japan country executive for Bank of America and president of BofA Securities Japan, she focuses on business growth for the bank and also devotes considerable effort to promote environmental, social, and corporate governance (ESG); diversity, equity, and inclusion (DEI); and sustainable finance at Bank of America.
Sasada spoke at a fireside chat hosted by the American Chamber of Commerce in Japan (ACCJ) Alternative Investment Committee on September 7, and she later sat down with The ACCJ Journal to share her thoughts on a number of topics, including how Japan can push the DEI and ESG agendas forward.
What are your memories of that first job in New York?
I made the decision to go there knowing that it would be a tough and competitive environment. And it was. I remember walking into meeting rooms and being the only woman—and a young Asian woman—there. That was not uncommon. There were a number of women lawyers at the junior level, but far fewer at the senior and partner levels.
But one thing that was quite eye-opening was the law firm provided a lot of training and development programs, which was something not so common in Japan back in the 1990s. They took time to really invest in junior people, which certainly gave me a solid training and allowed me to excel in my career.
How did you start to grow your career in finance?
The opportunity arose to work for Merrill Lynch, now BofA Securities, the brokerage and investment banking arm of Bank of America. I took a position in Japan.
I’ve been with the company for 24 years. Looking back, it was quite interesting to find that, even in a US organization, the work environment in Japan back then was quite male dominated. Of course, it is very different now. I found myself trying extra hard to make sure that I could deliver, and that people would not judge me on the basis of being a woman.
As an investment banker in Japan, part of the job is to bridge the gap between Japan and our global franchise, identifying clients’ needs and offering our full capabilities.
“Diversity matters because it brings different perspectives. At Bank of America, we believe that the more diverse we are, the stronger and better we are.”
BofA employees join the firm in driving DEI and environmental efforts, such as the Arakawa River Cleanup.
Also, one of the key challenges working for a US company in Japan is that you need to make sure that the Japan franchise is visible and has strong presence, not only in the eyes of clients but also in the eyes of the headquarters in the United States. I believe this is a challenge for everyone who works in a gaishikei (multinational organization) in Japan, regardless of gender.
So, even today, I still think about how best we can serve our clients in Japan and connect the dots between what our Japanese clients need and what we can offer globally. On top of that, navigating the organization and connecting people through business and social relationships have always been important aspects of how I built my career.
Why does diversity matter when building teams?
Diversity matters because it brings different perspectives. At Bank of America, we believe that the more diverse we are, the stronger and better we are. When we connect our diverse backgrounds and perspectives, we can better meet the needs of our colleagues, clients, and communities.
For us, DEI is action oriented. Our chief executive officer, Brian Moynihan, and all members of the management team are very focused on building an inclusive culture where our employees feel comfortable being who they are and bringing their whole selves to work, knowing they have equal access to opportunities regardless of their differences such as gender, ethnic background, or other such factors.
Such a culture has allowed us to attract and retain more diverse talent, and I find this to be true when we recruit in Japan as well as other parts of the world.
Are there aspects of DEI unique to the financial sector?
In banking, it’s important to bring in different perspectives and skill sets. Our clients are diverse, so we need to be diverse. Also, much of our business is cross-border in nature. For example, in mergers and acquisitions (M&A), our Japanese clients are buying and selling not just in the domestic market but also abroad.
Due to this, we need to work with a lot of colleagues outside Japan. Building connectivity—that’s the term we use—around the organization is important to growing trusting relationships.
So, for a global bank, DEI becomes very important because we need to understand that our clients and colleagues come from different backgrounds with different thought processes. Embracing these differences and removing any unconscious bias is critical for successful outcomes.
That’s why I feel that our company is stronger when we are more diverse in thinking and mindset, and creative in how we bring the business together and leverage the people and platform we have. Clients appreciate this because this allows us to better meet their needs.
How can companies strengthen their DEI?
Our commitment to DEI starts at the top. Our management team sets the diversity and inclusion goals of the company. Each management team member has action-oriented diversity goals, and they are reviewed by the board every quarter.
Our Global Diversity and Inclusion Council, consisting of senior executives from every line of business, meets quarterly to discuss DEI objectives and the progress we are making at each level of the company.
I have been a part of this council as one of the two representatives from Asia, having worked very closely with this leadership team. Over the years, I have witnessed how passionate our leaders are and how hard our company works to narrow the gap in any diversity spectrum.
From a gender perspective, 50 percent of our workforce and more than 30 percent of our management team are women, and we have a very ethnically diverse board. At the end of 2021, our company was one of only nine S&P 100 companies with six or more women on the board.
So, the statistics are strong, but what is equally important is to create a culture where people are given equal access to opportunities regardless of backgrounds, and to put people into their roles because of their capability.
What unique DEI challenges do Japan-based companies face? How can they overcome them?
I think Japan has come a long way. Particularly since former Prime Minister Shinzo Abe’s three arrows and empowerment of women initiatives, there has been progress, such as more women being put into managerial positions. But certainly, more needs to be done. The increasing pressure from investors on broader ESG goals, and the latest update to the corporate governance codes that requires companies to disclose their DEI progress, are all encouraging to me.
In addition, building an inclusive culture is really key to driving DEI. There are a few things that might be helpful in achieving better results. One is male advocacy. The terminology might not be familiar to some. It means men, or male managers, taking ownership of ensuring women are given equal access to opportunities and are supported, including through various programs. Say you have a very capable female manager who is a working mother. It is not uncommon for companies in Japan to offer benefits to support working mothers. What is important is how the male manager supports these colleagues’ career development and encourages colleagues to be understanding. If a company can follow this approach for a period of time, that will result in a robust pipeline of middle-level to senior women managers.
“As the country executive for Japan, driving business growth is one of my principal missions, but creating an inclusive workplace where people feel they can bring their whole selves to work is equally important.”
Tamao Sasada
The second is a strong mentorship and sponsorship program. Different companies might have different mentor programs, but sponsorship is something that may not be so common in Japan. A sponsor is usually someone influential and powerful in the organization who helps a rising talent succeed. They help the individual increase visibility within the company, speak up for them, and assist them through advancement opportunities.
Also important is building a meritocracy culture. Put people into the role because of what they can do, regardless of their backgrounds.
How did you overcome career obstacles?
Fortunately, at Bank of America, the culture has always been supportive. My motto is, when you are given the opportunity, always try to go out of your comfort zone and give it try.
When I was a junior banker, I was given the chance to become a coverage banker for one of our biggest clients in Japan at the time. It was unusual for a junior banker to be given such a big responsibility, but I believe my manager trusted that I could do the job and took a chance on me.
I worked extra hard to ensure I delivered for that client, who had a lot of doubts about me at the start.
This client aspired to expand the business globally. To help them, even though I was still junior, I fearlessly reached out to colleagues around the world to get help. That was a great opportunity to get to know people in the organization, understand what we could do globally, and deliver what the client needed.
This client was happy with the outcome and became one of my advocates.
So, the lesson learned was to go out of your comfort zone. There are always learning experiences that come out of doing so. And once you have experienced that, you can pay it forward.
Why is stakeholder capitalism important?
Stakeholder capitalism is a term defined by the World Economic Forum half a century ago, which has gained renewed focus in recent years. It essentially means companies must deliver not only for shareholders, but also for all stakeholders including clients, employees, and the wider community.
This is something our company really believes in, and it has been reflected in our corporate philosophy for many years. We have a corporate strategy called Responsible Growth, which states that we are here to serve wider stakeholders. DEI is always part of that strategic focus, and ESG as well.
How does DEI tie into ESG and sustainability?
DEI is part of ESG, which has been a long-term focus for us, even before the term became so prevalent.
This goes back to our Responsible Growth Strategy, delivering for all stakeholders. And that is really the core essence of the stakeholder capitalism that we talked about.
As mentioned, there has been a renewed focus on stakeholder capitalism in the global business community. Our CEO, who is a passionate advocate of ESG, has been chairing the International Business Council at the World Economic Forum, leading global companies in pushing ESG standardization forward.
In recent years, more focus has been put on the E, the environment, with more than 130 countries and many companies having pledged their net-zero goals.
At Bank of America, we announced our goal of achieving net-zero by 2050. The urgency is felt in both the private and public sectors globally. Just like our role in helping accelerate ESG in the global business community, Bank of America is taking a leadership role in the net-zero transition through sustainable finance.
About a year ago, we announced a $1.5 trillion pledge to mobilize capital to support clients’ ESG efforts. That’s $1 trillion for climate transition and another $500 billion to promote social inclusion, such as racial and gender equality, healthcare, and education.
What is sustainable finance? Why is it important?
We believe that the finance sector has a key role to play in providing and mobilizing the capital needed to drive the transition to a low-carbon, sustainable economy. A lot of our clients are making net-zero pledges, and they are working hard to come up with a roadmap to carbon neutrality. Our mission is to support them through sustainable finance, such as providing green loans, helping clients issue sustainability or green bonds, or advising on M&A transactions in the renewables space.
We do it ourselves as well. Bank of America was one of the first financial institutions to issue green bonds and sustainable bonds. During the past two years, we issued one of the first Covid bonds and sustainability equality bonds to help advance many of the social issues we saw in the past few years.
How do you see the future of DEI in Japan?
Certainly, progress has been made. We must keep driving that culture of change. Within each organization, it’s important to follow up on initial efforts. Much has been done, but focusing on some of the things I mentioned earlier—meritocracy culture and initiatives such as a sponsorship and mentorship program—are definitely key steps. It’s great to have maternity and paternity programs as well as a support system for working mothers, but building a supportive and inclusive culture is equally important.
As the country executive for Japan, driving business growth is one of my principal missions, but creating an inclusive workplace where people feel they can bring their whole selves to work is equally important.
I look forward to seeing companies in Japan continue to drive these efforts forward and create inclusive cultures that will promote further acceleration of DEI.