The Mitsui Chemicals Group considers "respect for human rights" as one of our material topics and has positioned it as one of the prerequisites for business continuity, actively promoting initiatives in this area.
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Respect for Human Rights
Initiatives
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 avoid, mitigate, and prevent any adverse human rights impacts that our business activities may have on the rights holders.
Initiatives for Human Rights Due Diligence
Assessment of actual and potential human rights impacts
Countries where the Mitsui Chemicals Group maintains a business presence have 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 (desktop survey) to identify challenges concerning human rights that we should consider in various regions.
*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)
In FY2021, with the cooperation of external experts, including the specified non-profit corporation Caux Round Table Japan (CRT Japan Committee), we reviewed and organized our business conditions. In addition to the standard human rights issues, we also included the impact of climate change and waste on human rights for a new perspective. These assessments were conducted as desk research and identified human rights challenges in our business sites that we should consider and their rights holders based on the results.
| 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 human rights risks in the Mitsui Chemicals Group business activities | Examples of rights holders that our business activities may affect | Examples of human rights indices to consider |
| Human rights risks pertaining to workers | Workers employed by suppliers, workers of business partners, and workers employed by 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. |
To verify the actual human rights risk situation pertaining to workers identified through human rights risk assessments, we have been conducting human rights impact assessments (field investigations) since FY2022, focusing first on workers at the manufacturing sites that form the foundation of the Mitsui Chemicals Group's operations.
Overview of Human Rights Impact Assessments Conducted by Mitsui Chemicals Group in FY2023
Background
In 2021, we conducted a human rights risk assessment with the cooperation of the CRT Japan Committee. Through this assessment, we confirmed that the indirect employees of our manufacturing sites (dispatch workers and contractors) may be in a vulnerable position and require particular attention, and that of the 32 countries in which the Group operates, eight countries are considered to have high human rights risks.
In FY2023, with the cooperation of the Global Alliance for Sustainable Supply Chain (hereinafter the ASSC), we chose Indonesia and India out of those eight countries, taking into consideration their priorities for our business, the number of manufacturing sites, and the number of workers indirectly employed. We then conducted human rights impact assessments of our manufacturing sites in the two countries.
Objectives of Human Rights Impact Assessments
- Identifying Human Rights Risks
By visiting sites and conducting interviews and inspections, we aim to identify and evaluate the negative human rights impacts the Group may have on rights holders through human rights impact assessments. - Addressing Actual Negative Human Rights Impacts/Human Rights Risks
We aim to prevent and mitigate actual negative human rights impacts identified through this assessment by evaluating them in accordance with Mitsui Chemicals Group's Human Rights Policy, which includes relevant policies, international standards, and the laws of the countries or regions where our business activities take place.
Implementation Details
In October 2023, we visited two manufacturing plants in Indonesia and India. We conducted interviews with management, reviewed documents, inspected plant premises, interviewed dispatch companies/subcontractors, and interviewed workers, including those employed indirectly (eight workers at each site). Please note that this assessment did not include surveys of suppliers or local residents.
Key Points for Review
Based on the results of the human rights risk assessment, we examined the human rights risks of workers, particularly those in vulnerable positions, from the following perspectives:
- Working conditions
- Occupational health and safety
- Workers' rights (including non-regular employees)
- Rights of migrant workers (including domestic migrants)
- Access to remediation
Implementation Results
As far as we could ascertain through the interviews conducted, this survey did not find any human rights violations or evident negative impact on the human rights of indirectly employed workers.
Prevention of Human Rights Risks
Each company, employment agency, and subcontracting company is reviewing, discussing, and implementing the following measures to address the potential human rights risks that have been identified as requiring our attention.
Indonesia
- Provide comprehensive written information about employment conditions, including salary, during recruitment and employment of dispatch workers.
(Completed) - Update employees about procedures for dealing with hazardous material leaks and the function of internal reporting opinion boxes, and confirm their understanding.
(Completed)
India
- Establish a grievance committee as mandated by Indian law.
(Completed) - Reaffirm the importance of occupational health and safety measures, including the use of protective gear and the effectiveness of evacuation route maps, and implement any necessary actions.
(Completed) - Further enhance communication between labor and management.
(Ongoing, utilizing internal events, etc.) - Propose to dispatch companies/subcontractors (employers) the creation of opportunities for dispatch/subcontractors employees to properly understand their working conditions, such as the use of welfare benefits and opportunities for promotion.
The human rights impact assessments conducted in FY2022 and FY2023 were both trial efforts with limited scope and targets, but we will treat the identified issues as human rights risks that should be recognized across the Group as a whole, and will continue to work towards preventing their occurrence. Specifically, as part of efforts to deepen understanding of our Human Rights Policy, we will enhance education for the Group's senior management and create opportunities for communication with dispatch companies/subcontractors on the theme of respect for human rights, with the aim of building a responsible supply chain.
Since the circumstances surrounding human rights are constantly changing, we believe that a review of human rights challenges must be conducted on an ongoing basis. In FY2024, we will once again identify human rights challenges that the Group should consider, taking into account that three years have passed since the last human rights risk assessment was conducted. We will further enhance the effectiveness of our human rights due diligence by reviewing business and value chains, assessing human rights risks, and conducting self-assessments in the form of questionnaires for domestic and overseas consolidated group companies.
The results of the human rights impact assessments have been reported to the Corporate Sustainability Committee and the Board of Directors.
Grievance mechanism (prevention and correction)
Through our human rights due diligence, the Group aims to build a system for receiving concerns and grievances from rights holders while engaging in dialogue with them.
Whistleblowing system
The Group has a whistleblowing system for the prevention and early detection of compliance violations. This system enables any Group employee who has obtained information related to risks, including acts in violation of a law or regulation that have been or are about to be committed within the Company, to directly report the matter to and consult the Corporate Administration & Legal Division and the Human Resources Division, which are the divisions in charge of compliance, or an outside attorney. The system also receives human rights-related inquiries. This system also handles inquiries related to human rights. 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, dispatch workers/subcontractors at our plants 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 workers/subcontractor employees), our customers, and employees of our business partners.
Stakeholder Engagement
Supply Chain Initiatives
The Group conducts procurement activities based on the Mitsui Chemicals Group Procurement Policy, focusing on "sustainable procurement." We have shared the Mitsui Chemicals Group Sustainable Procurement Guidelines with our clients, asking them to work with us on respecting human rights, ensuring fair working conditions and environments, reducing environmental impacts, and complying with laws and social norms.
We regularly check the status of these efforts using the CSR/Sustainable Procurement Self-assessment Questionnaire and provide feedback and support for improvement based on the responses. Additionally, we check for the use of raw materials free from conflict or criminal involvement (including conflict minerals) through this questionnaire.
Participation in external programs
The Group actively participates in programs that involve dialogue with various stakeholders to deepen our understanding of the context in which human rights issues arise and their relationship to our business activities. We apply this understanding to our efforts to respect human rights within the Group. Since FY2015 we have continuously participated in the Stakeholder Engagement Program, hosted by the CRT Japan Committee, where we receive annual presentations on human rights issues of domestic and international concern from NGOs/NPOs and experts, and engage in discussions with peers in the industry to identify key human rights issues by industry.
In FY2023, we also participated in a program co-hosted by the ILO Tokyo Office and the Global Compact Network Japan to develop corporate expert talent on international human rights and labor standards. In this program, we discussed with experts and participating companies how to integrate and promote respect for human rights initiatives within our business activities and examined specific measures.