Respect for Human Rights

Materiality
Related ESG :
S
Human rights (entire 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 have also positioned relevant items as materiality (key issues) and are advancing initiatives accordingly. As a statement of this intent, in January 2020, the group became a signatory to the UN Global Compact. The UN Global Compact is a voluntary initiative in which companies participate creating a global framework for solving global issues as responsible corporate citizens and realizing sustainable growth. Signatory companies are required to constantly strive to realize these goals based on a leadership commitment to complying with 10 principles in the four areas of human rights, labor, environment, and anti-corruption. 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, and the Children's Rights and Business Principles. The TOYOBO Group Human Rights Policy, which was drawn up in October 2020, conforms to the UN Guiding Principles on Business and Human Rights. Additionally, the group complies with laws and regulations in the countries and regions in which we do business and provide employees with appropriate compensation that exceeds stipulated minimum wages.

< TOYOBO Group Human Rights Policy >

Over a history of almost 140 years, the 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

    The 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

    The 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

    The 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 the 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

    The 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

    The 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

    The 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, the 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

In April 2023, Toyobo group established the Diversity & Inclusion Group, a unit responsible for human rights within the Human Resources 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 Executive Officer who is the Controlling supervisor of the HR Division has overall responsibility for matters relating to human rights.

Targets and KPIs

< Targets >

< KPIs and Results >

Initiatives KPI Target (FY2026) Result (FY2022)
  • 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. 27.6％

Initiatives

Establishment of complaint handling and internal reporting systems

The Complaint Handling Committee and the compliance consultation centers within the internal reporting system provide consultations and handle reports regarding human rights. 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.

Respecting workers' rights

Respecting freedom of association and collective bargaining rights

The Toyobo group respects freedom of association and collective bargaining rights based on its participation in the UN Global Compact.

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 79.0% of all employees are union members (as of FY2022).

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.

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 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. Going forward, we will continue to identify human rights related issues that we need to consider at each of the Toyobo group's business sites.

Respecting human rights in the supply chain

In September 2022, we reviewed the "CSR Procurement Guidelines". To achieve the SDGs in the supply chain, we will carry out a review that strengthens respect for human rights and environmental consciousness.

The guidelines clearly state that human rights matters (such as child labor, forced labor, and prohibiting discrimination against people of all attributes that include LGBTQ) should be taken into consideration selecting a business partner.

We conduct a survey among key business partners, based on the "CSR Procurement Guidelines". There are human rights items in the survey, and through these items, we can confirm the status of our business partners' efforts regarding human rights.

We ask new business partners at the start of business and ask existing partners regularly to cooperate with the survey, and familiarize them with respect for human rights.

Based on the responses to the questionnaire, we conduct an evaluation taking into account the country/region, industry, and personnel composition as well and follow up with partners who may be at high risk by conducting dialogues.

Participation in initiatives related to labor standards

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).

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.

Handling of Non-Compliance with Labor Standards
Unit Scope FY2018 FY2019 FY2020 FY2021 FY2022
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

Enhancing diversity and equal opportunities

The 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.

Internal education initiatives

The 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 inform employees of rules and examples regarding respect for human rights, the prohibition of discrimination, the prohibition of child labor and forced labor, and the protection of personal information through the TOYOBO Group Compliance Manual.

Furthermore, we held training sessions, which include the familiarization and understanding of the "Human Rights Policy", on respect for human rights alongside other initiatives aimed at improving awareness of human rights among employees. In fiscal 2022, 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 396 personnel participating in such activities.

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.

Engagement with local communities

In order to protect the human rights of local stakeholders while living in harmony with the local community, we conduct engagement on issues affecting human rights in the community through information exchange and steady public relations activities with neighborhood residents, local community associations and cooperative unions, etc., in cooperation with the local government. The results of the engagement are used for measures against noise, odor, and wastewater.