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Basic Approach

The Takasago Group is committed to respecting human rights in its business activities. To further clarify our stance in this area, we developed The Takasago Group Human Rights Policy in 2019. In addition, we established a procedure for human rights due diligence* referring to guidance published by the Japan Business Federation. In 2021, we summarized a wide range of human rights issues as Priority Human Rights Issues and added them to the Policy. We also incorporated them into The Takasago Group 
Supplier Code of Conduct in order to strengthen human rights initiatives throughout our supply chain. We explain the Code of Conduct to our suppliers from whom we procure not only raw materials but also all goods and services and ask them to comply with the Code of Conduct in order to promote human rights protection throughout the entire supply chain.

*Human rights due diligence: a process starting with identifying human rights risks, responding to issues, and disclosing information.

Regularly Conducting Human Rights Due Diligence

In 2019, we established a procedure for conducting human rights due diligence referring to a guideline published by the Japan Business Federation. We made a checklist following the guideline, and it is updated annually taking our business activities and global trends into account. At this point, we focuse on procurement, EHS and Human Resources & General Affairs. Regarding procurement, we check our raw materials using the List of Goods Produced by Child Labor or Forced Labor made by the US Department of Labor.


Looking again at the procedure for the due diligence, the next step is to conduct interviews with the relevant divisions at all sites (per company unit) using the checklist every year. After the interviews are conducted, the results are summarized and verified at Headquarters. The results are then reported to the Board of Directors and are disclosed on the Sustainability Report. 

ProcessContents
1. Identify scope and develop due diligence scheme

We identified five stakeholders: Shareholders, society, suppliers, customers, and employees as areas where risks might be present in our business processes.

We developed a questionnaire referring to the Human Rights Due Diligence Implementation Guideline issued by Japan Federation of Bar Associations to identify risks.

2. Identify risks

Conduct a survey using questionnaire at all  sites.  

After the survey, all sites submit the questionnaire with answers and a confirmation letter to  Global Integration HQ.

3. Make an action planMake an action plan for identified risks
4. Implement action plan and report results

Implement the action plan made in 3.

Report the results to the Board of Directors.

Process of Human Rights Due Diligence

 

Identify risks

  1. Conduct a survey with each department following a questionnaire.
  2. Report the results to your affiliate manager and ask their signature on the confirmation letter.
  3. Send the check list with results and the confirmation letter to GIHQ

Identify risks

Make an action plan

  1. Review the results of the survey, and conduct additional survey if necessary. Make an action plan to identified risks 
  2. Implement action plan and report results
  3. Report the results of this Due Diligence and actions to be taken (if any) to Board of Directors.

Development of a Scheme to Review Human Rights and Labor Standards in our Business Flows

The Takasago Group uses Sedex, an online platform that enables companies to manage and improve working conditions in their supply chains. Companies are audited and respond to the questionnaires, and the results can be viewed by their own company and their customers. To review our own work environment regularly, our manufacturing sites are audited once every three years, and we proactively make improvements based on the results of the audits in cooperation with the relevant departments. As a buyer company, we also check the results of the audits of and questionnaires filled out by our 
suppliers who are linked to Sedex. This enables us to use Sedex for the management of human rights and labor environments within our supply chain and communicate with suppliers when necessary. Through this scheme, we regularly monitor and evaluate the human rights and labor environments in the supply chain.

Establishment of a Reporting and Consulting Hotline

We established a compliance hotline at each site which also handles human rights matters as well and we have regularly reviewed the hotline system since 2020 to standardize and improve the hotline system. We will continue to monitor and verify the system to ensure improvements are implemented.

Embodying the policy, we established a system for human rights due diligence which identify, prevent, mitigate, and review relevant risks.