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Respect for Human Rights

Initiatives

The Mitsui Chemicals Group lists “respect for human rights” as one of the “prerequisites for business continuity” as part of the Group’s material topics and is working to put this into company-wide practice.

Human rights due diligence

The Mitsui Chemicals Group will establish a system of human rights due diligence in accordance with the “UN Guiding Principles on Business and Human Rights” to prevent and mitigate any adverse human rights impacts that our business activities may have on the rights holders.

Initiatives for Human Rights Due Diligence

Initiatives toward the Human Rights Due Diligence

Assessment of actual and potential human rights impacts

In the countries in which the Mitsui Chemicals Group maintains a business presence, there are a number of challenges pertaining to human rights, reflecting the conditions of local politics, the economy, and society. The Mitsui Chemicals Group conducts human rights risk assessments to identify challenges concerning human rights that we should consider in various regions. While collaborating with external experts, we started confirming the situation and organizing the business status in fiscal 2021 while taking into account the impact of climate change, waste, etc., on human rights as a new point of investigation, in addition to the conventional viewpoints on human rights challenges. We did desk research on these matters and identified human rights challenges in our business sites that we should consider and their rights holders based on the results. Since the circumstances surrounding human rights are constantly changing, we will continue to review human rights challenges as needed.

Examples of research references for our human rights risk assessments
Country Reports on Human Rights Practices, Trafficking in Persons Report, and other data provided by the United States Department of State, Human Rights Watch World Report, Transparency Corruption Perceptions Index, and other research materials provided by NGOs and other organizations related to human rights, etc.
Examples of human rights indexes assessed in the human rights risk assessment
Child labor, fair wage, working time, discrimination at workplaces, education, forced labor, freedom of association and collective bargaining, freedom of expression, rights of indigenous people, human trafficking, land ownership and rights of migration, rights of migrant workers, modern slavery, occupational safety and health, susceptibility to pandemics, poverty, privacy rights, rights of sexual minorities, rights of women and girls, rights of young workers, impact on climate change, deforestation, impact on water resources, air and marine pollution, production of waste and harmful substances, utilization of natural resources, impact on ecosystems and biodiversity, product safety, responsible marketing, customer remediation process, responsible tax payment, corruption prevention, relationship with the government, etc.
Examples of potential human rights risks in our business activitiesExamples of rights holders that our business activities may affectExamples of human rights indices to consider
Human rights risks pertaining to workersWorkers of our suppliers, business partners, the Group, etc.Fair wage, working time, discrimination at workplaces, forced labor, freedom of association and right to collective bargaining, rights of migrant workers, modern slavery, occupational safety and health, susceptibility to pandemics, privacy rights, rights of sexual minorities, etc.

In FY2022, we started by conducting the following human rights impact assessment focused on those working in our manufacturing sites, which are the foundations of our business, with cooperation from Caux Round Table Japan (CRT Japan)* to confirm the situation of human rights risks pertaining to workers identified in the desk research.

*Caux Round Table Japan:

CRT Japan. A global network of business leaders on a mission to make the society more free, fair, and transparent through business activities. Help companies with their initiatives to respect human rights.

Overview of Mitsui Chemicals human rights impact assessment (FY2022)

Background

In 2021, we identified and assessed the potential human rights risks in the Mitsui Chemicals Group (human rights risk assessment) in collaboration with CRT Japan. One of the findings was that the indirect employees (dispatch workers and contractors) of our Works may be in a vulnerable position, and they require particular attention.

Considering that the working environment for non-Japanese workers is one of the most prominent human rights challenges in Japan, we decided to conduct a survey on the actual condition at our domestic Works located in areas with a large number of non-Japanese workers* to confirm the situation of indirect employees in FY2022.

Objective

To identify and assess our evident negative impact on the human rights of rights holders (human rights impact assessment) with the aim of preventing and mitigating it.

Procedure

  1. Select interviewees.
    We selected and grouped dispatch workers and contractors while taking the shift schedule of each workplace into consideration.
  2. Conduct a preliminary survey.
    We conducted a paper-based survey for the interviewees on their working environment.
  3. Conduct interviews.
    We followed the steps below.
  1. We created interview questions by referring to the preliminary survey responses, the Dhaka Principles for Migration with Dignity* and other international guidelines.
  2. CRT Japan conducted the interview as a third party to ensure objectivity and neutrality.
  3. We made sure to protect the interviewees’ privacy and that they would not suffer negative consequences for their remarks.
  4. After interviewing the workers, we conducted management interviews for their managers (business partners).

*The Dhaka Principles: Created by the Institute for Human Rights and Business (IHRB) in the U.K., it has been endorsed by businesses, governments, trade unions, and civil societies as an important principle that serves as a roadmap for the entire journey of workers, from recruitment to employment and contract termination. They consist of ten principles around the two core principles of “equal treatment no discrimination” and “all workers enjoy the protection of employment law.”

Results

① Based on these interviews, we did not identify evident negative impact on the human rights of our dispatch workers and contractors. However, we were able to identify the following potential human rights risks* requiring our attention.

*Human rights risks: Potentially negative impacts that a company may have on human rights and risks for rights holders. (Refer to 17 of the Guiding Principles on Business and Human Rights)

Fair wage

  • Some of those working in harsh working environments have requested additional pay.

Occupational safety and health

  • Education other than on safety is not prevalent enough, especially among contractors.
  • Although evacuation drills are conducted periodically, there was none for night shifts.

Right to collective bargaining

  • It is suspected that the right to collective bargaining of contractors and dispatched workers do not enjoy sufficient consideration.

Access to remedies

  • We need to establish a functional grievance mechanism for contractors and dispatched workers.

Other

  • We identified many instances where contractors, in particular, did not have a full understanding of the situation. Example: Concerns about insufficient handover of tasks, dissatisfaction with workload.
  • Some contractors reported negative impact on their work and stress caused by an increase in the workload of small-group activities.
  • Many said that it is impossible to maintain their living wages due to the decrease in overtime and work.

② The survey showed that the surveyed Works had very few non-Japanese employees. In addition, they were very proficient in the Japanese language, and we did not identify human rights risks specific to non-Japanese workers, such as language barriers for work.

Although the results of the human rights impact assessment are limited in scope and subject coverage, we acknowledge the identified human rights risks as challenges that the entire Group should recognize and we will work to prevent and correct them on a Group-wide basis. Specifically, we aim to fulfill our responsibility to respect human rights throughout our supply chain by expanding measures to further promote understanding of the Group's human rights policies and creating opportunities for communication with business partners on the subject of human rights.

We have reported the results of the impact assessment to the Corporate Sustainability Committee.

Grievance mechanism (correction)

The Group not only continues to directly maintain dialogue with rights holders in human rights due diligence, but also aims to build a system to receive concerns and complaints from rights holders.

Whistleblowing system

The Group has a whistleblowing system for the prevention and early detection of compliance violations. It enables any Group employee who has obtained information related to risks, including acts in violation of a law or regulation that have been or about to be committed within the Company, to directly report the matter to and consult the Corporate Administration & Legal Division, which is our Risk & Compliance Committee, or an outside attorney. The system is open not only to officers, corporate auditors, and employees, but also to all parties with an interest in the Group’s business activities, including the families of officers, corporate auditors, employees, retired employees, contractors at our Works or other sites, and suppliers. Any and all information related to risks received through the whistleblowing system is immediately and periodically reported to the Company’s corporate auditors, and important information is reported to the Company’s Board of Directors if necessary. Our "Whistleblower Management Regulations" clearly stipulate that whistleblowers will not be subject to penalty and retaliation because of whistleblowing. We also have established disciplinary measures and strictly enforce them for those who violate the regulations.

Appointment of harassment counselor

The Group has appointed several harassment counselors at each business site to fairly ascertain the facts in the event of an occurrence and to take prompt action to solve the issue. We have both male and female counselors. This hotline is available for everyone working for the Company (including employees, contract employees, part-timers, and dispatch employees), our customers, and employees of our business partners.

Engagement of stakeholders related to human rights

Employees of the Mitsui Chemicals Group

Based on the Mitsui Chemicals Group Action Guidelines and Mitsui Chemicals Group Human Rights Guidelines, we educate our employees on issues on discrimination and harassment through various trainings. To facilitate a deeper understanding of the basic principles of business and human rights, in FY2019, we introduced the "Business and Human Rights e-Learning" series published by the Asia-Pacific Human Rights Information Center and Amnesty International Japan (compulsory participation once every three years). A total of 13,538 employees, including those from domestic affiliates, participated in this program between FY2020 and FY2022. We plan to expand the scope of this program across the entire Group. In FY2022, as we updated our human rights policy, in order to help our officers better understand human rights, we invited a lawyer specializing in business and human rights to teach a workshop titled "International Trends in Business and Human Rights and the Responses Required of Japanese Companies.” We distributed the video of this lecture to the Group’s division heads and others.

The Group’s employee rules stipulate that if an employee is found to have engaged in harassment (sexual harassment, abuse of authority, pregnancy discrimination, etc.) or discrimination that offends the dignity or character of an individual, the employee may be reprimanded, suspended from work, placed on disciplinary leave, or dismissed on disciplinary grounds, depending on the circumstances of the case.

Supply chain

The Mitsui Chemicals Group conducts business activities with emphasis on respecting human rights of all stakeholders in the entire supply chain. For example, we have clearly set out our expectations of suppliers in the Mitsui Chemicals Group Sustainable Procurement Guidelines. Under these policies, we place considerable importance on respect for human rights, fair working conditions and a good work environment, reduction in environmental impact, compliance with laws and regulations and social norms, and considerations for those in the supply chain. When we begin a business arrangement with new or ongoing suppliers, depending on the nature of the business, we conduct regular checks on the supplier's efforts through our sustainable procurement self-assessment questionnaires (SAQ). We use the questionnaire results to provide feedback to suppliers and to support their efforts to improve. In addition, we are also expanding our whistleblower system so that it will be available to our suppliers.

Participation in external programs