This policy has been approved by the Board of Directors of NIPPON SHOKUBAI CO., LTD.
Basic Stance on Human Rights
Based on our Group Mission “TechnoAmenity: Providing prosperity and comfort to people and society, with our unique technology,” the Nippon Shokubai Group aims to realize a sustainable society by solving social issues through business activities. The people involved in Group business activities are the foundation of the sustainable growth of society and the Group. It is important to respect their human rights. In order to respect the human rights of everyone whose human rights may be directly or indirectly affected by Group business activities, the Group is promoting efforts to respect human rights by establishing this “Basic Policy on Human Rights” (hereinafter referred to as the “Policy”) to supplement our Code of Conduct and other guidelines from the perspective of respect for human rights, and to further clarify our approach to respect for human rights.
1. Commitment to Respect for Human Rights
The Nippon Shokubai Group considers respect for human rights to be important and supports the 10 Principles of the United Nations Global Compact. Within these initiatives, the Group shall respect human rights in line with human rights norms such as the Universal Declaration of Human Rights, the International Bill of Human Rights (consisting of the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights), and the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work.(*) We shall comply with the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises, and ensure compliance with the relevant laws and regulations of the countries in which we operate. If there is a discrepancy between internationally recognized human rights principles and the laws and regulations of each country in the occurrence of human rights violations, we will operate with respect for internationally recognized human rights principles to the greatest extent possible. We are also committed not to tolerate or be complicit in threats, intimidation, or attacks against human rights defenders, and to work with these defenders to create a safe and effective environment for civil action and dialog and respect for human rights at the local, national, and international levels. (*) Includes support and respect for core labor standards such as the prohibition of child labor, prohibition of forced labor, elimination of discrimination, recognition of freedom of association and the right to collective bargaining, and principles of occupational health and safety.
2. Responsibility to Respect Human Rights
The Nippon Shokubai Group will fulfill its responsibility to respect human rights by ensuring that there is no infringement on the human rights of all people involved in Group business activities, and by taking appropriate corrective measures in the case of any adverse impacts on human rights that may arise from Group business activities.
3. Scope of Application
This Policy shall apply to all business activities of the Nippon Shokubai Group, and all directors and employees shall comply with this Policy. It is also expected that our suppliers and business partners will understand and commit to respecting all human rights described in this Policy in order to more widely implement activities based on the UN Guiding Principles on Business and Human Rights. This Policy includes respect for the human rights of all business partners; when suppliers, business partners, or other related parties are associated with an adverse impact on human rights, the Group willrequire these suppliers, business partners, and/or related parties to respect and not violate human rights in accordance with this Policy.
4. Human Rights Issues
Human rights issues to be addressed by the Nippon Shokubai Group as defined by international norms and human rights issues considered to be particularly important are listed below. These human rights issues shall be appropriately reviewed from time to time based on changes in Group business and social conditions. We expect our suppliers and business partners also to make a commitment to respect human rights on all issues described herein.
5. Human Rights Due Diligence
The Nippon Shokubai Group shall establish a human rights due diligence system to be incorporated as a required process in business activities. The system shall be implemented on an ongoing basis.
6. Dialog and Consultation
In the process of implementing this Policy, the Nippon Shokubai Group will utilize independent, external human rights expertise and will engage in sincere dialog and consultation with rights holders and related stakeholders.
7. Education
The Nippon Shokubai Group will continually provide appropriate education to directors, employees and others to ensure that a correct understanding of this Policy is disseminated internally and externally, and that it is effectively implemented. We also expect our suppliers and business partners to provide their workers with appropriate education on human rights and to support their efforts when necessary.
8. Remedies
If it is found that the business activities of the Nippon Shokubai Group have directly caused an adverse impact on human rights, or if it is found that the Nippon Shokubai Group is involved, is suspected of being involved, or is contributing to such an impact through its business partners, we will make remedial efforts through dialog and appropriate procedures in accordance with international norms. In addition, we will maintain reporting desks for internal and external access to remedies required for this purpose, and continuously evaluate the effectiveness of corrective and remedial measures.
9. Management
The Nippon Shokubai Group will clearly identify the officer in charge of the implementation of this Policy and supervise its implementation.
10. Disclosure
The Nippon Shokubai Group will disclose the progress and results of its initiatives on respect for human rights on the Company website and in other media.
Enacted March 2022 Revised July 1, 2024
This Policy is prepared in Japanese and English, and shall be disclosed to all stakeholders, including all Group employees, business partners, suppliers, and local communities through publication on the Nippon Shokubai website.
Nippon Shokubai Group policies and strategies regarding respect for human rights, as well as the evaluation of performance, are determined by the TechnoAmenity Promotion Committee, which is headed by the President and consists of directors and executive officers of the Company. The results are reported to the Board of Directors as necessary. Daily operations, including the formulation and implementation of plans and measures based on policies and strategies, are carried out in cooperation with related departments and Group companies, led by the Sustainability Promotion Department of the Company.
Human Rights Due Diligence
The Nippon Shokubai Group will establish a human rights due diligence mechanism in accordance with procedures based on the United Nations Guiding Principles on Business and Human Rights to prevent and mitigate adverse human rights impacts and to implement corrective measures. If it becomes clear that the Group’s business activities are causing or encouraging human rights violations, corrective and remedial measures will be taken. In addition, if the Group’s products or services are directly involved in human rights violations due to business relationships, even if Group business activities have not caused or encouraged such violations, the Group will work to correct the situation.
Human Rights Due Diligence Process
Initiatives drawing on international human rights guidance and risk assessments commenced in FY 2021. We have identified potential adverse human rights impacts of Group business activities, primarily within the Company, and have taken measures to prevent or mitigate these impacts. From FY 2023 on, we will expand our scope to include external parties to further improve our human rights due deligence and have begun to identify rights holders who may be adversely impacted through our business activities and supply chain, salient human rights issues, and our own priority issues.
*Rights Holder: A person who is the subject of human rights and who is or may be subject to human rights violations through the activities of a company.
Identification and assesment of adverse human rights impacts
To assess human rights risks, we have identified the human rights issues that need to be considered throughout our business activities and supply chain, and the rights holders who may be adversely impacted. Based on the extracted human rights issues, we investigated and confirmed the specific human rights risks and their occurrence with relevant stakeholders. Using these results, we created a human rights risk map and identified salient human rights issues. For the salient human rights issues where we determined that sufficient measures have not been taken, we will be set as our priority issues. We will implement measures to prevent, mitigate, and remediate the adverse impacts on each human rights issue and continue to engage in ongoing human rights due diligence.
*Human Rights Risks: The potential adverse impacts on human rights caused by business activities.
Human rights issues identified as targets of human rights risk assessment
Insufficient, unpaid or living wages, Excessive and unreasonable working hours, Working environment, health and safety, right to social security, Power harassment, sexual harassment, maternity/paternity harassment, nursing care harassment, Forced labor, Freedom to move residence, Freedom of association and collective bargaining, Rights of migrant workers, Child labor, Human rights violations associated with the use of the Internet, ICT (Information and Communication Technology), AI, etc., Right to privacy, Consumer safety and right to know, Discrimination, Human rights issues related to gender, Freedom of expression, Rights of indigenous and local peoples, Human rights issues related to climate change, Intellectual property rights, Bribery and corruption, Human rights issues in the supply chain, Right of access to remedy, Access to natural resources (including water resources), Deforestation, Air and ocean pollution, Waste and hazardous substance emissions, Damage to ecosystems and biodiversity, Security, Business in conflict countries, Expansion into pre- and post-conflict countries, Relationships with countries with low human rights awareness, Money laundering and transparency (including tax avoidance)
Rights holders that could be adversely impacted by our business activities
Nippon Shokubai employees (including contract and temporary employees), employees of business partners (customers, suppliers, logistics companies, production contractors, etc.), subcontractor employees, consumers, and local community members
* The above includes particularly vulnerable to adverse impacts on their human rights, such as women, children, migrant workers, indigenous peoples, minorities, and human rights defenders, etc. *Other relevant stakeholders: labor unions/worker representatives, NPO/NGOs, experts, investors/shareholders, national and local governments
International Norms and Guidelines Referenced
Universal Declaration of Human Rights, International Bill of Human Rights, Ten Principles of the UN Global Compact, International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work, UNEP FI (United Nations Environment Programme Finance Initiative) Human Rights Guidance Tool, and various guidelines formulated by the Ministry of Economy, Trade and Industry and the Ministry of Justice, etc.
Access to Remedies (Establishment of Reporting Desks)
The Nippon Shokubai Group has established reporting desks that can be used by internal and external stakeholders to freely report and discuss facts and questions regarding human rights violations in the course of Group business activities. In addition, we respect the wishes of whistleblowers regarding the disclosure or nondisclosure of the content of the report and whistleblower names, and we protect whistleblowers. Group regulations stipulate the prohibition of any disadvantageous treatment, such as retaliation, for reports or allegations. We do not condone or tolerate human rights violations, and when a report or allegation about a failure to respect human rights is received, an appropriate investigation is conducted. If a specific problem is recognized, measures are taken to correct the situation and to encourage corrective action.
Human Rights Awareness and Education
From the “Nippon Shokubai Group Code of Conduct: 4. Respect for Human Rights,” the Nippon Shokubai Group clearly states that it supports international norms on human rights, respects the human rights of all people involved in Group business activities, prohibits discrimination and harassment, and prohibits and does not tolerate forced labor and child labor not only within the Group but also in the supply chain. In addition to initiatives disseminating the Code of Conduct to Group employees, we have incorporated compliance training on human rights-related topics as part of our level-specific and onsite training programs. We are also implementing harassment prevention training for managers in a timely manner to deepen the understanding of respect for human rights among Group employees and to foster a corporate culture of respect for human rights. In FY2023, training was conducted for managers of domestic and overseas Group companies to raise awareness of the Code of Conduct, with approximately 800 employees participating.
Initiatives toward Respecting Human Rights in the Supply Chain
Nippon Shokubai promotes sustainable procurement activities to ensure respect for human rights throughout the supply chain.
