Respect for Human Rights

Materiality
Related ESG :
S
Human rights in the supply chain
Good Health and Well-Being Quality Education Gender Equality Decent Work and Economic Growth

Management approach

Policy and approach

Respecting human rights is essential for Toyobo group to fulfill its responsibilities as a member of society and continue as a trusted company. In this regard, respecting the rights of employees and trading partners, who are important stakeholders for the group, is crucial to enabling them to demonstrate their abilities, and to work with vigor and energy. In recognition of this, we have included “4. Respect for Human Rights” and “6. Active Employee Participation” within the 10 principles of the Toyobo Group Charter of Corporate Behavior. We also support and respect other international agreements relating to human rights, such as the International Bill of Human Rights, the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work, the Children’s Rights and Business Principles, and the UN Guiding Principles on Business and Human Rights.

< TOYOBO Group Human Rights Policy >

Over a history of almost 140 years, Toyobo group has developed business that addresses the needs and challenges of the times through technology, based on the spirit of Jun-Ri-Soku-Yu (adhering to reason leads to prosperity), which is the cornerstone of the PVVs corporate philosophy system.

At present, under our vision of "we will continue to create the solutions needed by people and the earth with materials and science," we are working to evolve into a company that can "help society flourish and our company grow" by actively contributing to solving social issues and continuously creating value for society.

We believe that respecting human rights is crucial to achieving the group's vision, and in the TOYOBO Group Charter of Corporate Behavior ("Charter") and the TOYOBO Group Employee Conduct Standards ("Code") we have stated that we respect human rights and maximize the value that can be generated from diversity under the slogan "respect for human rights and diversity."

The TOYOBO Group Human Rights Policy ("this policy") outlines our policy for handling human rights based on the Charter and Code and it applies to all of the group's directors, corporate auditors, executive officers, and employees.

Also, as a good corporate citizen, the group recognizes the importance of respecting human rights and will strive to respect the basic human rights of all stakeholders, including officers and employees.

  1. Compliance with laws, regulations, and norms concerning respect for human rights

    Toyobo group supports and respects international norms concerning human rights including the International Bill of Human Rights, which stipulates the basic human rights that should be enjoyed by everyone in the world, and the ILO Declaration on Fundamental Principles and Rights at Work by the International Labour Organization (ILO) which stipulates the fundamental rights regarding labor (freedom of association and collective bargaining rights, the elimination of forced or compulsory labor, the abolition of child labor, and the elimination of discrimination in respect of employment and occupation).
    Also, this policy was formulated in accordance with the UN's Guiding Principles on Business and Human Rights.
    The group complies with the laws and regulations in every country and region in which it does business. Furthermore, in cases where internationally recognized human rights and the laws and regulations of a country or region are in conflict, we will pursue a course of action that has maximum respect for international human rights principles.

  2. Duty to respect human rights in all business activities

    Toyobo group will not infringe on the human rights of another individual, will minimize the adverse effects on human rights that might occur through its business activities, and will actively expand the practice of respect for human rights in its business activities.

  3. Practicing human rights due diligence

    Toyobo group recognizes the importance of practicing human rights due diligence to minimize any adverse effects of our business activities on human rights. Based on this recognition, we will build a human rights due diligence framework.
    Additionally, while this framework has yet to be designed, it will include identifying, preventing, and reducing actual and potential adverse effects on human rights in our business activities and value chains, integrating internal processes for measures related to the above, and publicizing our efforts.

  4. Correction and relief

    In cases where it is revealed that Toyobo group has had an adverse effect on human rights or furthered such an adverse effect, it will take appropriate steps to correct this and provide relief. Also, even in cases where the group has not directly furthered an adverse effect on human rights, if a business partner of the group or other related party has a direct connection to an adverse effect on human rights through their business, we will strive to cooperate with stakeholders to make improvements, and ensure that human rights are respected and not infringed upon.

  5. Cooperation and dialogue with stakeholders

    Toyobo group promotes respect for human rights through actions stipulated in its Charter, Code, and other policies and guidelines. Furthermore, we will respond to any actualized or potential adverse effects on human rights through dialogue and cooperation with the relevant stakeholders.

  6. Education for officers and employees

    Toyobo group will reflect this policy in the procedures required to ensure it is applied in all business activities and will provide appropriate education and training for officers and employees to ensure implementation based on a correct understanding of this policy.

  7. Information disclosure

    Toyobo group will report on various initiatives concerning respect for human rights based on this policy in a timely manner through its website and various reports.

  8. Selection of priority human rights issues

    As changes in society and other situations can change the specific human rights issues that should be addressed, Toyobo group will revise its priority issues through dialogue and cooperation with stakeholders and external experts.

Seiji Narahara
Representative Director, President and CEO, Co-COO
TOYOBO CO., LTD.
October 26, 2020

Related Policies

Structure

The persons in charge of the group's employees are assigned to the Human Resources Department, and those in charge of the supply chain are assigned to the Procurement and Logistics Department, with the aim of emphasizing respect for human rights in Toyobo group in a proactive, systematic manner. We are deepening our understanding of international human rights related issues that companies need to be aware of, and preparing for initiatives on human rights due diligence.

The Managing Executive Officer who is the Controlling supervisor of the Corporate Sustainability Division, Procurement and Logistics Department has overall responsibility for matters relating to human rights.

Targets and KPIs

< Targets >

< KPIs and results >

Initiatives KPI Target (FY2026) Result (FY2023)
  • Avoid human rights violations
  • Eliminate forced and child labor
  • Respond to human rights laws and regulations (Modern Slavery Act, etc.)
  • Ensure equality in recruitment and treatment of employees
  1. Implementation status of human rights education and training
  1. Once a year for 20% of non-consolidated employees*
  1. 48.0%

Initiatives

Respect for human rights from a global perspective

In the countries and regions, where Toyobo group has business sites, there are various human rights related issues that reflect the specific political, economic and social circumstances. Such issues may include discrimination in regard to employment and work roles, unfair labor practices, forced labor and child labor, infringement of the human rights of foreign workers, and involvement in corruption. For each Toyobo group business site, it is vitally important to give due consideration to these human rights related issues.

In order to identify the issues that Toyobo group needs to take into consideration, we are participating in the relevant sub committes of Global Compact Network Japan, alongside other participant companies. We are aiming to deepen our understanding of human rights by gathering information on international human rights issues and other issues that corporations need to pay attention to. Going forward, we will continue to identify human rights related issues that we need to consider at each of Toyobo group's business sites.

Theme Details of initiatives
Prevention of child labor We prohibit the employment of persons under the age of 15 years, or the age for completing compulsory education, or the minimum age for employment in the country or region, whichever is the highest in our business activities.
Prevention of forced labor Our recruitment of talent is always premised on applications from persons responding to calls for applicants. We notify successful applicants after one or more recruitment screenings. We present information on working conditions when an applicant joins the company, and begin employment with the consent of the applicant.
Support for living wages We pay wages in compliance with laws and ordinances that stipulate minimum wages in the countries and regions in which we operate.

Labor and human rights survey

At our domestic (non-consolidated) business sites in FY2023, we conducted a Labor and Human Rights survey addressing matters including child labor, employment equality, and occupational safety and health. Through the survey, we were able to confirm the absence of any violations of human rights laws and ordinances.

For technical intern trainees from overseas, we surveyed implementation and management of technical internships and compliance with labor-related laws and ordinances at relevant business sites. Through the survey, we confirmed implementation and compliance in all cases.

Enhancing diversity and equal opportunities

Toyobo group believes that personal and organizational growth is achieved through a process of mutual respect among our employees, with their differing work styles, careers, gender, nationality, race, and beliefs, and through cooperation to achieve our shared objectives. We respect different opinions and a wide range of values, and cooperate to achieve ambitious goals together.

Respecting workers' rights

Respecting freedom of association and collective bargaining rights

Toyobo group respects freedom of association and collective bargaining rights.

We have set shared targets for labor and management to realize TOYOBO PVVs and we strive to build constructive and stable relationships between management and workers. Labor union activity at Toyobo is based on the union shop system,* and all employees that are eligible to join a labor union under the labor-management agreement reached between labor and management join the labor union. Our unions represent all their members and the results of negotiations between management and labor are applied to all members without conditions. Additionally, based on an agreement between management and labor, employees at management level or above are not eligible to join, and 85.1% of all employees are union members (as of FY2023).

Dialogue between management and labor

We arrange repeated opportunities for frank discussion between labor and management aimed at realizing the TOYOBO PVVs, and we promote the building of the foundations needed for every single employee to be able to work with energy and enthusiasm.

Meetings of the Central Management Council, attended by representatives of the labor union headquarters and of company management, are held once a year, and meetings of the Branch Management Councils are held once a year at each of the nine branches in Japan.

The labor union is represented at meetings of the Central Management Council by staff from the union headquarters, and is represented at Branch Management Council meetings by staff from the relevant union branch, while the company is represented by the President at meetings of the Central Management Council, and by the business site manager or plant manager at Branch Management Council meetings. Topics addressed during discussions between labor and management include the operational status of the company, changes in the amount of pay rises, and the working environment.

Reducing excessive working hours

We are engaged in workstyle reform, so that our employees can work with renewed efficiency and achieve a good balance between work and personal life. We aim to ensure that our employees will take at least one day off every seven days in the future.

Handling of non-compliance with labor standards
Unit Scope FY2019 FY2020 FY2021 FY2022 FY2023
Major violations of laws, regulations, or rules Incidents Global 0 0 0 0 0
Serious non-compliance with labor standards Incidents Total in Japan 0 0 0 0 0
Number of incidents of serious human rights violations Incidents Total in Japan 0 0 0 0 0
Compliance-related incidents that resulted in a criminal complaint Incidents Total in Japan 0 0 0 0 0

Establishment of complaint handling and internal reporting systems

The Complaint Handling Committee, the Compliance Consultation Service, which is an internal reporting system, and the recently opened the LGBTQ+ Consultation Service accept human rights-related consultations and reports. At each business site, members representing both the company and labor are elected to the Complaint Handling Committee that handles requests for consultation from employees concerning issues related to the Equal Employment Opportunity Law.

In order to ensure that employees can use these systems without concern, the name and other details of employees making reports or receiving consultations are kept private and we guarantee that these individuals will not be negatively affected by their action. We also strive to detect and solve human rights issues at an early stage through compliance surveys.

Internal education initiatives

Internal communication of our Code of Conduct and Compliance Manual

Toyobo group has created English and Chinese versions of the TOYOBO Group Charter of Corporate Behavior in order to implement internal education that enables employees around the world to share the same vision.

We use our TOYOBO Group Compliance Manual to familiarize employees with rules and case studies concerning respect for human rights, prohibition of discrimination, prohibition of child labor and forced labor, and protection of personal information.

We also familiarize and educate hiring recruiters on human rights-related cautions to be observed in interviews.

Human rights-related training

We are making efforts to raise awareness of human rights among our employees through training that includes the communication and understanding of our Human Rights Policy. In FY2020, we conducted education and awareness-raising for group company employees concerning the human rights of foreign workers, and affirmed our intent to request that business partners take action as well. In fiscal 2023, as in the previous fiscal year, in each business site, we implemented training for new hires, grade-specific education, lectures, and training sessions for personnel appointed as promoters of human rights, with a total of 515 personnel participating in such activities.

In FY2024, the following seminars on the topic of "business and human rights " were held for officers and employees.

Business and human rights study session in FY2024
Months Instructor Participant
Jun. 2023 Mr. Shuichi Osaki, General Manager, Sustainability Development and Engagement Department, TEIJIN LIMITED Officers
Oct. 2023 Ms. Mikiko Morimoto, Representative Director, karna ltd. Persons in charge of labor affairs at the business sites
Dec. 2023 Ms. Emi Sugawara, Professor, Osaka University of Economics and Law Officers
Feb. and Mar. 2024 Sustainability, persons in charge of the human resources and labor affairs, and procurement and logistics Officers and employees

Study session for persons in charge of labor affairs at the business sitein Oct. 2023

Study session for persons in charge of labor affairs at the business sites in Oct. 2023

Study session for officers in Dec. 2023

Study session for officers in Dec. 2023

Study session for officers and employees in Feb. 2024

Study session for officers and employees in Feb. 2024

In October 2023, we began distributing 14 videos on "business and human rights" to all officers and employees including those of three major group companies, making them available to view on demand.

We have added "business and human rights" to the theme of our compliance study sessions for managers since FY2024, and have held a total of 14 sessions. We plan to hold these sessions at 12 group companies, which hold them by the end of the fiscal year.

Participation in the Global Compact Network Japan Subcommittee

In order to identify the issues that Toyobo group needs to take into consideration from among the human rights related issues existing in each region, we are participating in the relevant sub committes of Global Compact Network Japan, alongside human rights NGOs and other participant companies. We are aiming to deepen our understanding of human rights by gathering information on international human rights issues and other issues that corporations need to pay attention to and apply it to our awareness-raising activities.

Respecting human rights in the supply chain

Revision and communication of the CSR Procurement Guidelines

To achieve the SDGs throughout our supply chain, in September 2022 we conducted a review with strengthened consideration of respect for human rights and the environment, and revised our CSR Procurement Guidelines.
We clearly state in the guidelines that we take matters involving human rights (including the prohibition of child labor, forced labor, and discrimination against people of any attributes, including LGBTQ) into account in our selection of business partners, and we communicate these guidelines to them.

Human rights risk assessment based on the CSR procurement survey

Our company also conducts a CSR procurement survey based on our CSR Procurement Guidelines, directed at our major business partners. From the human rights items in the survey, we evaluate partners' initiatives aimed at human rights. Using the results of the questionnaire, we conduct evaluations that take into consideration country and region, industry, personnel composition, and other factors, and perform appropriate follow-up through interviews and other means to address business partners that are judged to be at high risk.

Dealing with new and existing business partners

We ask new business partners to cooperate with our questionnaires when commencing new dealings with these, and periodically make the same request to existing business partners.

Engagement with stakeholders

Engagement with local communities

To protect the human rights of stakeholders in local areas, in cooperation with government bodies we engage with issues that affect human rights in communities through information exchanges with neighboring residents, community associations, cooperatives, and other parties, as well as steadfast public relations activities. The results of this engagement are of aid in measures to combat noise, odors, wastewater, and other issues.

As an example, our Tsuruga Research and Production Center conducts information exchanges with local community associations and cooperatives once a year. We also provide neighboring areas with advance notice when performing periodic inspections.

Engagement with overseas technical intern trainees

In our engagement with overseas technical intern trainees, the support we provide at relevant business sites includes the preparation of materials in trainees' native languages, support for official procedures, and accompaniment on hospital visits. We have also set up venues for listening to trainees' everyday troubles related to differences in lifestyles, addressing these as needed.

Participation in initiatives

We participate in the labor subcommittee meetings of the industry associations, Spinners' Association of Japan and Chemical Fibers Association of Japan.The subcommittee discusses work-related issues (working hours, leave systems, personnel systems, retirement benefits, etc.), including labor standards, and labor issues (e.g., measures against COVID-19 , teleworking and other work styles).

In September 2023, we partcipated in the declaration for Responsible Bbusiness Conduct for the Textile and Clothing industry of Japan by the Japan Textile Federation. This declaration indicates that the company understands the purpose of the Guideline for Responsible Business Conduct for the Textile and Clothing Industry of Japan released by the Federation in 2022, and agrees to promote respect for human rights in accordance with the Guidelines (As of November 2023, 731 companies have declared).

In November 2023, the Chemical Fibers Association of Japan established the "Human Rights DD Response Committee" consisting of the regular members of the association, in which we are also participating. The committee members share information and exchange opinions on human rights issues in the supply chain, including trends of government policy and the Japan Textile Federation, as well as the status of responses at each company, and hold seminars and other events.