The Group designated “Respect for Human Beings” as its principle of management and has practiced “people-centered management” consistently since its founding. Essentially, respect for human rights is an indispensable foundation of management and should be prioritized in all decisions and actions. We have made this the Idemitsu Group Basic Human Rights Policy, which all executives and employees comply with.
Based on this policy, we continually address global human rights issues while referencing the cultures, customs, and social norms of different countries and regions. In addition, in response to human rights issues faced by the Group’s affiliates and supply chain in Japan and overseas in recent years, we have focused our efforts on conducting human rights due diligence and identifying where human rights violation risks exist within the Group and at relevant suppliers. We are also strengthening our efforts to mitigate risks and build a rescue mechanism.
Moreover, we formulated the Compliance Code of Conduct to instill and promote a compliance mindset within each employee working around the world, including in Japan and overseas. The code clearly states that we will create a sound and appropriate workplace free from harassment that accepts diversity in such areas as race, nationality, and gender and that does not tolerate any kind of human rights violation.
We regularly disclose to stakeholders these kinds of human rights-related initiatives and actions.

Idemitsu Kosan Co.,Ltd.
President and Representative Director
Shunichi Kito

The Group formulated the Idemitsu Group Human Rights Policy in 2019 and declared its respect for internationally recognized human rights as set out in the Universal Declaration of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work, as we conduct business both in Japan and worldwide. In addition, in line with the United Nations Guiding Principles on Business and Human Rights, we codified conducting human rights due diligence in our policy and launched specific initiatives in fiscal 2020. We clarified nine human rights priority issues and promoted in-house awareness-raising activities. We established a reporting and consultation desk for executives and employees to respond to violations of the code of conduct, overt or potential, including matters related to human rights. We established a desk for stakeholders to report concerns regarding business activities. These and other human rights-related initiatives are regularly disclosed on our website.

1. Promotion of Diversity

   The Idemitsu Group has outlined a policy of continuous striving to create new value with customers and stakeholders while working to achieve harmony with the environment and society based on diversity and inclusion. We formulated the Idemitsu Group Diversity & Inclusion Policy and are instilling it in-house.

2. Prohibition of Forced Labor

   The Idemitsu Group’s policy is to not use, support, or profit from forced labor. When simply compliance with Japan’s forced labor-related regulations is insufficient, we will consider international standards.

3. Prohibition of Child Labor

   The Idemitsu Group does not employ children. In addition, we do not employ young people in hazardous work.

4. Prohibition of Discrimination

   The Idemitsu Group definitively respects the basic human rights of all people and strives to be a company where no action is taken that infringes the dignity of individuals, such as unfair discrimination.

5. Prohibition of Harassment

   The Idemitsu Group prohibits all forms of harassment, including sexual harassment, power harassment, speech that makes others degraded, and physical and mental harassment.

6. Freedom of Association and Recognition of the Right to Collective Bargaining

   The Idemitsu Group respects employees’ freedom of association, their freedom to join a labor union, and their right to collective bargaining.

7. Maintaining Our Working Environment

   The Idemitsu Group complies with the labor-related laws and regulations of countries around the world, including those concerning minimum wage and appropriate working hours. In addition, we strive to create a work environment where everyone can work easily with regard to employee health and safety.

8. Land, Water, and the Use of Natural Resources

   When dealing with the purchase, lease, and other use of land in the countries and regions where the Group conducts business, and when purchasing natural resources, the Idemitsu Group mitigates the impact of its acquisition of land on the environment and society. We pay attention to the rights of local residents who use or live on the land. In particular, we work to ensure there is no impact on the living standards of those requested to vacate a property.
   In addition, we work to prevent soil and water pollution to ensure the Group’s businesses do not inhibit the safe and hygienic use of water by local residents.

9. Respect for the Rights of Indigenous Peoples

   In the countries and regions where the Group conducts business, the Idemitsu Group respects indigenous people’s cultures, spiritual traditions, and their unique rights based on history and philosophy. In addition, if there is a possibility that the Group’s business expansion could have a negative impact, we work to avoid or reduce and minimize that negative impact.

The Group is working to promote human rights initiatives in line with its stance on the three lines of defense.
As the first line of defense, affiliates and subsidiaries and their supervising departments check risks through self-inspections. As the second line of defense, the self-inspections are supported through cooperation with corporate departments, including the Corporate Sustainability Department and Risk Management Section of General Affairs Department. As the third line of defense, human rights risk items are checked and monitored through regular audits conducted by the Internal Audit Department, which is an independent organization under the direct supervision of the President.
As reporting desks related to human rights, we established the Idemitsu Global Hotline, Compliance Consultation Center, and Harassment Consultation Center and built a system for reporting issues to the management committee through various other committees.
Regarding human rights due diligence, the Corporate Sustainability Department, main departments, and subsidiaries are all working together to steadily conduct individual surveys. The survey results will be reported to management as appropriate.

In line with the Group Human Rights Policy, the Idemitsu Group has conducted human rights due diligence since fiscal 2020. First, we scored all 241 affiliates (as of July 2020) in Japan and overseas based on a survey containing around 80 queries covering social, environmental, and occupational safety themes based on international standards. Using this data to create a human rights risk map for the entire group, we elucidated the possibility of latent human rights risks.
In fiscal 2021, we ranked our priorities based on the aforementioned risk mapping and conducted a detailed risk survey. Using questionnaires comprising around 360 questions issued to a total of 109 affiliates and subsidiaries, with a focus on companies that have manufacturing bases in high-risk countries, we conducted a survey of each company’s response to human rights risks. The questionnaire included risk evaluation items related to local labor problems to enable the swift identification of where risks are. The International Labour Organization (ILO) recognizes four especially serious matters in its core labor standards: 1) Freedom of association and effective recognition of the right to collective bargaining; 2) Elimination of forced or compulsory labor; 3) Abolition of child labor; and 4) Elimination of discrimination in respect of employment and occupation. For affiliates and subsidiaries that required assessments after completing the survey, we carried out a detailed confirmation process to verify actual conditions, drafted and implemented necessary measures, and, going forward, will conduct regular checks as we continue striving to reduce risks. As for new investment projects, we maintain a mechanism for checking investment proposals for social issue risks (unjust labor practices, human rights violations, and unfair trade) and natural environment risks (climate change, use of land, water and natural resources).

Human Rights Due Diligence Status (FY2021)

In fiscal 2021, we conducted surveys of a total of 109 affiliates and subsidiaries that have manufacturing bases in high-risk countries.

Survey Content

A questionnaire comprising around 360 questions in the three fields of society, environment, and occupational health & safety.

Survey Results

Regarding human rights risks in terms of society, the environment, and occupational health and safety, risk reduction activities are being steadily conducted and, as a result, many items have been evaluated as being 90% or more low-risk. However, there remains room for improvement in the following areas:

1. Raising awareness of human rights policies
2. Strengthening supply chain management
3. Raising awareness of grievance reporting hotlines among employees and suppliers

Response

Within the Company, we are working swiftly toward improvement in the above areas. In fiscal 2022, other affiliates and subsidiaries will conduct human rights due diligence and build mechanisms to see that through.

Training related to human rights and compliance

The Group promotes various awareness-raising activities to enhance in-house understanding of respect for human rights and the focus on compliance. In fiscal 2020, we distributed awareness-raising materials using the intranet with the purpose of facilitating Group employees’ understanding of the content of our basic human rights policy. In addition, with the aim of ensuring compliance, we conducted compliance training for the compliance managers of each department. For details, please refer to the compliance promotion activities described on pages 88 and 89.

Sustainable Procurement Guidelines

The Group has established a basic procurement policy based on the Management Philosophy and Action Mindset. We also established the Sustainable Procurement Guidelines and posted them on our official website. In these guidelines, we clarify the Group’s stance related to human rights, such as respect for basic human rights and the prohibition of forced labor, child labor, harassment, and discrimination. We revealed a policy of exchanging information on initiatives related to sustainability with business partners and working to mutually increase the level thereof.

Basic Procurement Policy

Sustainable Procurement Guidelines

The Group holds dialogues with partners to promote initiatives to respect human rights across the entire supply chain, going beyond just Group companies. For details on initiatives with suppliers, please refer to the sustainable procurement initiatives on page 72.

The Group takes advantage of various opportunities to promote communication with all stakeholders, including customers, suppliers, shareholders, local communities, and relevant organizations. We also work to ensure understanding of the Group’s stance on human rights. In addition, through dialogues with stakeholders, we continue to work to appropriately undertake initiatives necessary for the Group.

Basic Policy on Harassment in the Workplace / Basic Concept

The Idemitsu Group believes that respect for human rights must be the highest priority in all of its decisions and actions. Accordingly, we seek to maintain harmonious relationships with international society and local communities, and do not discriminate against any stakeholder group. Furthermore, we do not condone violence or words or deeds that are detrimental to human dignity, whether physically or mentally. To ensure sound, harassment-free work environments, we seek to deepen the understanding of all employees and have established a basic policy for harassment prevention measures and appropriately responding to incidents of harassment. By doing so, we aim to create and maintain work environments in which the human rights of all employees are respected and employees can utilize their abilities to the fullest. In addition, the Human Resources Department, General Affairs Department, and Corporate Sustainability Department engage in concrete cross-departmental initiatives.

Basic Policy on Harassment in the Workplace

Building Skills for Responding to Consultations about Harassment

From October to November 2020, we provided training aimed at building skills for those responding to requests for consultation about harassment, including the HR managers of company departments and affiliates and officers in charge of responding to consultations. This training taught participants the skills to appropriately respond to consultations from employees about harassment. A total of 98 participants took part, deepening their understanding of the appropriate mindset and key points to keep in mind when fielding consultations as well as the perspectives and feelings of employees making such consultations.

Anti-Harassment Training

Workplace Harassment Prevention Guide