Respect for Human Rights
Basic Concept
SEKISUI CHEMICAL Group recognizes its responsibility to protect the human rights of all people who are affected by its business activities. In recent years, human rights issues have received increasing attention from society as laws and regulations regarding human rights have been enacted in Japan and overseas. In order to strengthen our sustainable management platform, we believe it is vital that we respect the human rights of not only Group employees, but also other stakeholders, including business partners.
With this in mind, SEKISUI CHEMICAL Group formulated a human rights policy based on the United Nations Guiding Principles on Business and Human Rights in May 2019 in a bid to fulfill its responsibilities to all stakeholders. In February 2024, we also clearly specified human rights issues that the Group considers particularly salient. Based on the aforementioned policy, SEKISUI CHEMICAL Group will identify, address, and correct human rights risks that may arise from its business activities by organizing human rights initiatives that are in line with the Company in the following manner: promoting human rights impact assessments, integrating into the Group’s business, making reports, and putting in place the Grievance Mechanism.
In the Medium-term Management Plan, we have identified the following as important issues: ① cultivating and instilling a culture of respect for human rights; ② implementing human rights due diligence to reduce risk; and ③ implementing the Grievance Mechanism. The Human Rights Subcommittee plays a central role in steadily advancing business and human rights initiatives. At the same time, we will work to strengthen the implementation capabilities of divisional companies and regional headquarters (RHQs).
- Out_S40
Overview of SEKISUI CHEMICAL Group’s Human Rights Initiatives
Risk Awareness
In 2018, SEKISUI CHEMICAL Group used Verisk Maplecroft's data to calculate human rights risk scores from high-risk areas and industry perspectives. As a result, we identified potential high human rights risks in Thailand, China, and India. In 2019, we became aware of the high human rights risks of foreign workers in Japan through dialogue with overseas experts. In 2021, we conducted a questionnaire survey of all areas where Group companies are located. While the survey did not reveal any issues that required immediate action, we identified issues that required further investigation and are continuing to take corrective measures.
The Group will continue to analyze latent human rights risks on a regular basis. We will also conduct surveys, questionnaires, and engage in dialogue with overseas experts as appropriate while working to recognize new human rights issues and identify risks based on global standards.
System
In fiscal 2022, SEKISUI CHEMICAL Group established the Human Rights Subcommittee under the Sustainability Committee to strengthen its response to a wide range of human rights issues in a cross-organizational manner, and is promoting initiatives accordingly.
The Human Rights Subcommittee is composed of the Director and head of the Human Resources Department as Chairman and the heads of each specialized headquarters department. The Subcommittee is responsible for formulating Group-wide policies on human rights. At the same time, four working groups linked to the Subcommittee draft and implement specific measures.
We will promote human rights initiatives throughout the Group by sharing the policies and measures established by the Human Rights Subcommittee and each working group with the relevant departments of the Company’s headquarters and divisional companies, and by applying these down to the business site level.
In fiscal 2023, the Human Rights Subcommittee met eight times.
- Out_S41
Grievance Mechanism
SEKISUI CHEMICAL Group has put in place a variety of mechanisms to listen to the voices of stakeholders, including an internal whistleblowing system, a business partner reporting desk, the Customer Consultation Office, and a sustainability inquiry desk, in order to take appropriate measures to correct any negative impact on human rights that arise from its business activities.
We established the SEKISUI Compliance Assist Network (S.C.A.N.), an intra-company whistle-blowing system for Group employees in 2002. Globally, we have put in place and are operating a whistle-blowing hotline in major overseas areas.
Beginning in fiscal 2015, we established and are operating a reporting and consultation desk that can be used by executives and employees of business partners in Japan that engage in ongoing business transactions with SEKISUI CHEMICAL Group companies.
In order to develop a mechanism that can be accessed by a wider range of stakeholders, including non-Japanese employees and overseas business partners going forward, we will work to put in place multilingual internal whistleblowing systems, increase awareness, and establish a whistle-blowing system for overseas business partners.
Risk Management
SEKISUI CHEMICAL Group conducts human rights due diligence together with specialized organizations while prioritizing potential human rights risks based on dialogue with experts and an analysis survey conducted by a specialized organization (Verisk Maplecroft*1) and the identification of high-risk sites through simultaneous surveys in all areas. The relevant sites, RHQ (regional headquarters), divisional companies, and Corporate Headquarters cooperate in planning and implementing remedial action measures for identified issues. Through these efforts, we will implement Group-wide risk management activities on a global basis with the aim of reducing risks.
- A risk analysis and research corporation with a global perspective and knowledge of human rights, economic, and environmental risks.
Human Rights Due Diligence (SEKISUI CHEMICAL Group)
SEKISUI CHEMICAL Group launched initiatives aimed at building a human rights due diligence*2 framework in November 2018. The major initiatives implemented up to fiscal 2023 are as follows.
-
・
From FY2018 to FY2019:
Employed a specialized agency (Verisk Maplecroft) to analyze potential human rights risks in major businesses and conducted internal hearings based on the results of analysis.
-
・
FY2020:
Implemented human rights interviews at domestic production sites.
-
・
FY2021:
Conducted a survey-format human rights risk assessment on a global basis for management in all areas where the Group is located and for employees (including indirect employees) at selected business locations.
-
・
FY2022:
Corrected issues identified through the above risk assessment and conducted human rights interviews at two domestic and overseas bases.
-UIEP Company SEKISUI INDUSTRIAL PIPING CO., LTD.（Taiwan）
-Housing Company Sekisui Heim Kinki Co., Ltd. -
・
FY2023:
Human rights interviews were conducted at three locations: overseas production site, domestic nursing care site, and domestic construction site.
-HPP Company PT. SEKISUI POLYMATECH INDONESIA
-Housing Company: Healthy Service Corporation
-Construction company (a business partner of the Housing Company)
-
*2Human rights due diligence is the ongoing management process of identifying and assessing any potential negative impact on human rights (human rights risks) from a company’s business activities, and if there are human rights risks, the process of creating mechanisms to prevent or mitigate the impact from such risks.
Identifying and Remediating Human Rights Risks
SEKISUI CHEMICAL Group is implementing initiatives to identify and remediate human rights risks based on global human rights risk assessments. In fiscal 2022, we confirmed the status of each situation on an individual basis for Group companies in Japan and overseas (total of six locations) at which issues were identified through the above human rights risk assessments. After formulating remediation plans to address the issues identified, steps were taken at five locations. (Remediation plan example: Draft employment agreements in workers’ native languages in order to promote an understanding of employment agreements among foreign nationality workers employed at Group companies in Japan). Regarding the remaining one location, we plan to reconfirm the status after April 2024.
Human Rights Interview at an Overseas Production Site
In fiscal 2023, as in fiscal 2022, we conducted an interview on human rights at an overseas production site (Indonesia).
As a result of the human rights risk assessment by Verisk Maplecroft conducted in 2018, the country-specific risk score was generally high in Indonesia. However, the Group did not confirm the working conditions of its employees through surveys and interviews at that time. To this end, we interviewed local employees to gain a better understanding of their actual working conditions (appropriate wages, appropriate working hours, forced labor, occupational safety and health in the workplace, etc.).
-
・
Targets
HPP Company
25 employees working at PT. SEKISUI POLYMATECH INDONESIA (including 11 women) + three managers (including one woman) -
・
Implementation method
-
1)As a preliminary survey, we conducted a survey of employees based on the Dhaka Principles, an international norm on responsible migrant worker employment.
-
2)Caux Round Table Japan*3 conducted interviews with employees divided into groups of five, each lasting about an hour based on a preliminary survey.
-
-
・
Survey content
Forced labor, freedom of association, the right to collective bargaining, equal pay, and prohibition of discrimination, etc.
-
・
Results
Although no significant negative impact on the human rights of employees was found in this survey, issues that should be prioritized were identified, such as occupational safety and health, respect for the rights of female workers, and respect for the rights of trainees under the Indonesian Intern Training (MAGANG) system. To address these issues, PT. SEKISUI POLYMATECH INDONESIA formulated a remedial action plan.
-
*3A non-profit organization with a network of various CSR initiative organizations both inside and outside of Japan and extensive experience with support programs for initiatives to reduce human rights risks within corporate supply chains.
Human Rights Interviews at Domestic Construction and Nursing Care Sites
Since fiscal 2020, SEKISUI CHEMICAL Group has conducted human rights assessments, including interviews with employees, at domestic production sites and construction companies of the Housing Company that employ foreign workers. This is in response to the high level of human rights risks related to the working environment of foreign workers in Japan identified through dialogue with overseas experts.
In addition to expanding the scope of this program to include nursing care sites within the Group and business partner construction companies of the Housing Company, we conducted foreign national employment management assessments*4, including employee interviews, for the two companies listed below in fiscal 2023.
-
・
Targets
-
1)Healthy Service Corporation (Group company that engages in nursing care) : Three female foreign nationality employees + one manager
-
2)A construction company (business partner of the Housing Company): Two foreign nationality employees (none of whom were women) + one manager
-
-
・
Implementation method
-
1)Conducted a preliminary survey consisting of 342 questions in 40 categories regarding human rights, and held interviews with personnel and labor management supervisors based on the survey results
-
2)Interviews were conducted with foreign nationality employees and managers for human resources and labor management.
-
3)Took remedial action with regard to the assessment results and matters indicated by third parties (Remedial action example: Appoint a person in charge of lifestyle and business counseling, guidance, etc. for foreign nationality employees.）
-
4)As a result of the assessment, if the company is recognized by a third-party organization as an excellent business that employs foreign nationality employees appropriately, that company can acquire a Certificate in Appropriate Employment Company of Foreign National Employees.
-
-
・
Results
Healthy Service Corporation received an overall evaluation that was significantly higher than the average, and in particular high evaluations in such categories as "hiring," "personnel systems," "human rights," and "internal agreements," and was judged to be appropriate in terms of hiring and working hours with respect to its foreign nationality employees. On the other hand, in the "labor" category, the recommendation was made to appoint a person in charge of lifestyle and business counseling, and to provide guidance to foreign employees. In response to this recommendation, remedial action was taken. In specific terms, a person in charge of employment and labor affairs for foreign workers in the company was appointed. In addition, in the human resource management category, the evaluation identified issues in the training of employees, particularly with respect to medium- to long-term employment and clarifying career paths. These issues remain an area of ongoing consideration.
A construction company (business partner of the Housing Company) was highly evaluated in each of the "hiring," "labor," "employee agreement," "human rights," and "job satisfaction" categories, exceeding the appropriateness criteria, and was recognized as a company that properly employs foreign nationals. On the other hand, feedback relating to the construction company (business partner) pointed out access to remediation, evaluation systems, and the creation of a systematic structure for career development as future issues.
-
*4This assessment is designed to confirm whether foreign national human resources are appropriately employed. Involved in foreign national human resources recruitment, foreign national employment support, and Japanese language education support, One Terrace Co., Ltd. serves as the certification organization.
Human Rights Due Diligence (Our Suppliers)
Caring About Human Rights Issues Across the Entire Supply Chain
Until now, we have conducted CSR procurement surveys of our direct suppliers. To ensure that the Group’s policies are understood throughout the entire supply chain, including secondary and tertiary suppliers, we formulated the SEKISUI CHEMICAL Group Sustainable Procurement Guidelines (Supplier Code of Conduct) in fiscal 2021. In addition to Japanese, we also prepared English and Chinese translations. Taking into account opinions of outside experts, the Supplier Code of Conduct is also intended to align with the United Nations Global Compact 10 Principles, the Guiding Principles on Business and Human Rights, and the SEKISUI CHEMICAL Group Human Rights Policy.
In addition to asking all our suppliers to extend this Code of Conduct to their secondary and tertiary suppliers, we have requested that suppliers sign on to acknowledge compliance with the guidelines. In this regard, we have obtained the agreement of approximately 61% of our key suppliers in Japan and overseas to work with us to achieve the Code of Conduct.
Details of Human Rights Due Diligence Implementation in the Supply Chain
In order to enhance sustainable procurement, in fiscal 2021 we broadly revised the survey to include content that allows us to evaluate and confirm the compliance status and achievement status of the above Supplier Code of Conduct. Moreover, we began implementing the survey across the globe at the same time from fiscal 2021 in order to more rapidly address common global initiatives. As a result, we received responses from 67% of our suppliers that were subject to the survey. In fiscal 2022, we conducted direct interviews with 13 companies with poor self-assessments on the above survey for the purpose of confirming whether there were any potential risks, and to confirm their situation. As a result, we determined that risk was low at 12 companies. We are implementing activities involving consultants in order to reduce the risk at the remaining company with its cooperation. Following a direct hearing conducted in fiscal 2022, we confirmed the follow-up status of one overseas supplier who agreed to work together to improve sustainable procurement in fiscal 2023. We confirmed that the issues that had been raised during the interview, such as the return of passports, the return of deposits, and the preparation of employment contracts in the native language, had been completed and improved. We also conducted investigations in regard to minerals that present the risk of human rights violations (child labor, etc.) at mining sites and wood that presents the risk of threatening the rights of indigenous people and the rights of workers as a result of deforestation. This move was taken as part of an effort to achieve sustainable procurement that respects human rights through revisions to the survey details and guideline formulation. The details are described in Responsible Procurement (see here).
| Current Medium-term Management Plan Targets (FY2023-2025) |
FY2023 results |
|---|---|
| Continuously implement human rights due diligence and gradually transition the operating entity to each divisional company and regional headquarters |
|
| Expand the scope of management of key risks in the supply chain, put in place management regulations, expand self-audit operations, and utilize external evaluations |
|
| Cultivate and instill a culture of respect for human rights |
|
| Complete the global introduction of multilingual whistleblowing systems（SEKISUI Global Hotline）that also function as the Grievance Mechanism | Completed introduction in China and Australia |
Human Rights Education
Human Rights Training for Group Employees
SEKISUI CHEMICAL Group conducts training and education on human rights for its employees in order to engage in management that takes human rights into consideration. In particular, we are promoting awareness toward the importance of respecting human rights and the Group’s human rights policy. Training, especially at such milestones as entry into the Company and promotion, is designed to raise awareness of human rights issues, including forced labor, child labor, and harassment.
As part of our human rights training program for domestic and overseas employees, we began deploying the Business and Human Rights e-Learning course via our intranet in North America, Europe, and Asia in fiscal 2020. Through these training and education programs, we are promoting awareness toward the importance of respecting human rights and our human rights policy.
In fiscal 2023, we conducted Compliance and Human Rights e-Learning" (a project linked to Compliance Month in October and Human Rights Month in December) to help employees understand a wide range of human rights and compliance issues, including respect for human rights, prohibition of discrimination, prevention of harassment, and protection of personal information, contained in the Compliance Manual distributed to all Group employees.
In addition, in order to help executives better understand the need to respect human rights, we invited an outside expert* to give a lecture on "Business and Human Rights, a New Management Agenda for Japanese Companies" at the Executive Officers Liaison Meeting, thereby deepening the understanding of human rights among executives.
- Owls Consulting Group, Inc.
Conducted SEKISUI CHEMICAL Group Human Rights Month
In order to provide opportunities for employees to act with respect for human rights, SEKISUI CHEMICAL Group held Human Rights Month in December of fiscal 2023. In addition to the initiatives implemented during Human Rights Week in fiscal 2022, such as the dissemination of the president's message and the display of human rights posters, a business and human rights seminar was held online in Japan on December 4. We provided a video viewing during Human Rights Month. On top of translating the president's message into 11 languages, the human rights poster was published in both Japanese and English, and distributed to all areas where SEKISUI CHEMICAL Group operates.
- Out_S42
- Out_S43
Stakeholder Engagement
In October 2023, SEKISUI CHEMICAL Group participated in individual dialogues* with overseas experts (research analysts of the World Benchmarking Alliance (WBA) and specialists on the global value chain) to explain the Group's human rights initiatives and receive advice on how to develop activities in the future.
The experts evaluated the Group's human rights due diligence, remediation planning, and monitoring cycle as effective initiatives. On the other hand, they advised that it is important to listen to the voices of employees from the rights holder's perspective and solve issues identified one by one, rather than judging whether or not to take action from management's perspective alone.
We will continue to use the opinions of these stakeholders to promote systematic human rights initiatives in accordance with the Guiding Principles on Business and Human Rights.
- Individual dialogues: Hosted by the Caux Round Table Japan
Response to the UK Modern Slavery Act
SEKISUI CHEMICAL Group discloses a statement, adopted by the Board of Directors, regarding its efforts to prevent any form of modern slavery or human trafficking in any part of the Group’s business or within its supply chains, in accordance with section 54 (1) of the UK Modern Slavery Act, which came into force in the UK in 2015.
We will also take appropriate measures to comply with laws and regulations related to human rights in countries and regions other than the UK that are relevant the Group’s operations.