Sustainability / Social Report - Human Rights Respect for Human Rights

Daicel Group Human Rights Policy

At the Daicel Group, we recognize that, in order to progress and grow in tandem with society, it is imperative that we respect the human rights of anyone and everyone involved in or connected to us through our business activities. To fulfill this responsibility, the Daicel Group hereby establishes the Daicel Group Human Rights Policy (“the Policy”).

Basic Position
We, the Daicel Group, are strong believers that “People are the foundation for our success.” The Daicel Group Conduct Policy and each Group company’s Code of Conduct declare our determination to comply with all laws and regulations; act with high ethical standards and sound judgment; respect the diversity, personality and individuality of every member connected to the Daicel Group and contribute to realizing a healthy and sound society that is free from discrimination and harassment.

Moreover, as a signatory of the United Nations Global Compact, we fully support international standards for human rights. We acknowledge the standards listed in the United Nations International Bill of Human Rights (Universal Declaration of Human Rights and both International Covenants), the core conventions set forth by the International Labour Organization (ILO) in their Declaration on Fundamental Principles and Rights at Work, and the United Nations Guiding Principles on Business and Human Rights. Accordingly, we promise to continue and promote efforts to respect and address the human rights in line with the above standards.

Scope of Application
The Policy applies to all executives and employees of the Daicel Group. The Daicel Group will also encourage its business partners and suppliers to support the Policy, and in concert with them, will promote activities to fulfill its responsibilities relating to human rights.

Human Rights Due Diligence
The Daicel Group will establish a system of human rights due diligence which will be continuously implemented. Human rights due diligence is a series of processes that includes identifying any adverse human rights impact connected to the Daicel Group and preventing or mitigating potential risks to human rights.

Correction and Remedy
When the Daicel Group identifies that it has caused or contributed to an adverse impact on human rights contrary to the Policy, it will promptly take corrective and remedial actions through appropriate procedures.

Education and Training
The Daicel Group will provide appropriate education and training to ensure that the Policy is integrated into all business activities and that human rights due diligence is effectively implemented.

Applicable Laws and Regulations
The Daicel Group will observe laws and regulations of countries and regions where it conducts business. However, if a conflict occurs between internationally recognized standards of human rights and the standards stipulated by laws and regulations of an individual country or region, the Daicel Group will pursue a direction that respects international principles of human rights.

Dialogue and Consultation
In implementing the Policy, the Daicel Group will seek expert advice on human rights both from within the company and external independent experts, and engage in dialogue and consultation with our Group stakeholders.

Information Disclosure
The Daicel Group will publicly disclose the progress and results of its human rights activities based on the Policy.

Efforts to Instill Respect for Human Rights in Practice

Human Rights Due Diligence

Under its Human Rights Policy, the Daicel Group has stated a commitment to support the United Nations Guiding Principles on Business and Human Rights and consistently implement human rights due diligence in accordance with the Guiding Principles. Human rights due diligence is a series of processes that include identifying any adverse human rights impact associated with the Daicel Group and preventing or mitigating potential risks to human rights.

Initiatives for Group Companies

Daicel has been conducting risk assessments on human rights for Group companies both in and outside of Japan since FY2020/3.

In FY2020/3, we sent a questionnaire on human rights and labor practices to 12 Group companies in Japan and 10 overseas and conducted interviews based on their responses.

In FY2021/3, we sent a questionnaire to these 12 companies in Japan again and requested them to submit their responses along with substantiating documents. We implemented a more detailed risk assessment through reviewing the submitted documents and conducting interviews based on a checklist. We also sent the questionnaire to eight additional Group companies overseas that had not been covered in the risk assessment in FY2020/3, and we conducted interviews based on their responses.

The results of the survey revealed no human rights violations by Daicel Group companies or cases requiring correction.
However, through the risk assessment, we found detailed human resource issues relating to revisions in laws and regulations in each country, the statutory employment rate of persons with disabilities etc. We are continuously addressing these issues.

Daicel is committed to pursuing initiatives for ensuring human rights due diligence at 100% of our major Group companies.

Initiatives for the Supply Chain

The Daicel Group promotes initiatives that ensure respect for human rights across its supply chain by addressing issues concerning human rights and labor practices in the Daicel Group CSR Purchasing Guidelines, in addition to its Human Rights Policy.

In FY2021/3, we requested 797 of our major suppliers to sign a Certificate of Confirmation to check that they follow the Daicel Group CSR Purchasing Guidelines. These major suppliers account for over 85% of all purchasing by the Group, and 664 companies signed the Certificate of Confirmation. We also ask major suppliers to complete a Self-Assessment-Questionnaire (SAQ) on CSR procurement, which includes assessment of human rights and labor practices, to identify human rights risks in our supply chain.

Sustainable Procurement

Human Rights Education and Training

The Daicel Group provides employees with human rights education and training based on the Daicel Group Human Rights Policy to deepen understanding of human rights.

In FY2021/3, we implemented an e-learning program on human rights along with other topics for Daicel Corporation and Group companies in Japan. We also distributed educational materials on corporate ethics each month throughout the Daicel Group. These materials include content related to human rights, such as harassment based on sexual orientation and gender identity (SOGI) and working with persons from different backgrounds.

Moreover, we invited a lecturer who identifies as LGBT and held human rights education on LGBT specific issues for Directors of Daicel Corporation and Group companies in Japan. The video of this lecture was shared with all Group companies in Japan, and each division implemented human rights education accordingly.

In July 2021, we implemented new e-learning dedicated to human rights, with the participation of 5,813 employees from Daicel Corporation and Group companies in Japan (participation rate 95.0%). This program began by explaining the basic idea of respecting human rights and provided information on the key global issues of forced labor, child labor and human trafficking. The program also provided an opportunity for learning about the Human Rights Policy and about specific human rights issues arising from the COVID-19 pandemic.

We will continue providing employees with human rights education and training going forward.

Reporting and Consultation

The Daicel Group operates the Compliance Help Line System (internal whistleblower system) to receive reports and provide consultation on issues that include human rights. Issues can be raised anonymously to protect the identity and privacy of whistleblowers. Rules are also in place to prohibit any adverse treatment of whistleblowers. In addition, an online consultant contact has been set up on our website, which can be used by stakeholders outside the Daicel Group to report or consult on human rights issues as well as other issues.

Compliance Help Line System (Internal Whistleblower System)