The Teijin Group has made respect for the rights and dignity of all human beings its fundamental stance for achieving enhancement of the quality life, our corporate philosophy. We are committed to working in accordance with the United Nations Guiding Principles on Business and Human Rights (hereafter, "UNGPs") established by the United Nations in 2011 and the International Labour Organization (ILO) standards*.
- *It includes endorsement and respect for "the abolition of child labour" "the elimination of forced or compulsory" "the elimination of discrimination" and "freedom of association and the effective recognition of the right to collective bargaining in respect of employment and occupation," as ILO Core Labour Standards.
As our corporate philosophy represents, "the Teijin Group's purpose is to enhance the quality of life through a deep insight into human nature and needs, together with the application of our creative abilities." In achieving this goal, respect for the rights and dignity of all human beings is of the essence.
In June 2018, the Teijin Group reformulated its Corporate Code of Conduct into five items, clearly expressing our commitment to human rights in the section on "Integrity."
Integrity: We act with integrity in compliance with laws and regulations, and show respect for human rights and local communities in which we operate.
- We respect human rights and do not tolerate any discrimination and harassment in any part of our business and supply chain. We also maintain accountability by ensuring that our business is conducted in a way that helps to win the trust of local communities.
- We comply with applicable laws and regulations in every country and region where we do business, including multilateral laws and regulations, and respect internationally-accepted principles.
With the aim of sharing this Code of Conduct with the entire Teijin Group, in August 2020 we created a video message featuring our CEO which was sent to all our group companies with subtitles in local languages of all regions and countries in which the Teijin Group operates.
Additionally, in March 2019, the Teijin Group Human Rights Policy was resolved at the Board of Directors of Teijin Limited. Under this policy, we pledge to endeavor neither to be involved directly nor to be complicit indirectly by way of external affiliates or business relation, in any kind of human rights violations in our business activities, in recognition of the fact that respect for human rights is an important social responsibility to be fulfilled by company.
With regard to the United Kingdom's Modern Slavery Act 2015, our "Teijin Group Modern Slavery and Human Trafficking Statement" is posted on our website.
Human Rights Due Diligence Initiatives
Regarding the human rights due diligence mentioned in our Human Rights Policy, the Teijin Group in FY2018 began activities to build a relevant mechanism and is committed to working on human rights risk assessments by business and region.
We commissioned an external organization, the Global Alliance for Sustainable Supply Chain, and its subcontractor, the UK-based research institute RIGHTS DD Limited, to conduct a survey on "complicity in modern slavery".
Branch-equivalent companies of a certain minimum size among the 153 Group companies in Japan and overseas, including the head office, belonging to the Group's 11 business units*1
- *1: 11 business units: (1) Aramid, (2) Carbon fibers, (3) Resin and Plastic Processing, (4) Film, (5) Composites, (6) Fibers & Products Converting, (7) Pharmaceutical, (8) Home Healthcare, (9) IT, (10) Material New Business, (11) Healthcare New Business.
The suppliers selected by the survey organization from among the suppliers with which the Teijin Group does business in the above 11 business units.
From qualitative information concerning the business characteristics and operating regions of the above-mentioned branch-equivalent companies and 18 suppliers, scores were given for human rights violation risks* in each of the 11 surveyed businesses.
The results of the FY2018 human rights due diligence survey revealed that the Teijin Group's policy of respect for human rights is generally in conformity with principal international best practices. Furthermore, by comparing the business characteristics and operating regions of the Teijin Group's businesses, we were able to determine that human rights violations are relatively more likely to occur in the labor-intensive fibers and products business. In addition, in businesses identified as having a relatively high potential risk of human rights violations in the light of labor health and safety conditions and the situation in operating regions, as well as already implemented measures to prevent human rights violations, we are implementing inspections to detect whether human rights violations are occurring and continuing monitoring to prevent such violations.
- *Definition of "human rights violation risk" covered by this survey
1. This survey focused on "modern slavery," a term used to describe all human rights abuses including slavery, servitude, forced or compulsory labor, and human trafficking.
2. In this survey, the following factors were analyzed to gauge modern slavery risk:
- Highly competitive industries, with low barriers to entry and operations in jurisdictions with weak labor laws and ineffective union representation;
- Prevalence of low-skilled workers;
- High number of female workers;
- Documented cases of child labor;
- High proportion of migrant labor in the workforce;
- Documented cases of human trafficking;
- Documented cases of harmful employment practice;
- Documented cases of debt bondage;
- Operation in fragile or conflict affected areas;
- High proportions of refugees in the workforce;
- Operation in countries with highly repressive regimes;
- Industries in which low-skilled labor is used to carry out so-called "three D" jobs (dirty, dangerous, and difficult), such as work involving dangerous or physically arduous manual labor, work involving prolonged periods of repetitive motion, and work that is stigmatized or socially devalued. These jobs are typically carried out by migrants, minorities, or socially marginalized groups that are highly vulnerable to exploitation.
3. In this survey, the characteristics of "forced labor" are as follows:
- The illegal withholding and deduction of wages;
- The illegal confiscation of identity documents, such as passports;
- Debt bondage (Forced labor as security for debt repayment. It is said that more than 51% of workers engaged in forced labor are bonded by debts.);
- Forced overtime
- Various forms of coercion by employers or recruiters, such as verbal, physical, or sexual harassment;
- Labor patterns involving intensive work, long working hours, or the repetition of simple tasks that give rise to serious labor health and safety risks
Dialogues were held with international NGOs and other organizations, in collaboration with the Caux Round Table (CRT Japan), a third-party organization, and potential risks in human rights due diligence were assessed in accordance with the United Nations Guiding Principles on Business and Human Rights (November 2019-March 2020).
We explained to CRT Japan the flow of CSR procurement questionnaire surveys conducted by the Teijin Group since FY2014 and the process for improvement based on the survey results, all of which are conducted as measures to prevent and reduce human rights violations, such as human trafficking, forced labor, child labor, and discrimination.
CRT Japan confirmed the appropriateness of the territories and number of companies covered by the CSR procurement questionnaire surveys and the effectiveness of the post-survey process by which Teijin Limited calls on business partners to make improvements.
We identified potential human rights risks from business domains of the Teijin Group that significantly cause negative social impact and formulated measures to be implemented in FY2020 and beyond.
Measures addressing potential human rights violations
- 1.Education and guidance for improvement for business partners
- 2.Interviews with domestic processing consignees
- 3.Review CSR Procurement Guidelines and survey items in response to the social conditions related to matters of human rights violations in the supply chain
- 4.Promoting the CSR Procurement Guidelines among business partners
- 5.Review of grievance handling mechanisms
Please see here for the specific CSR procurement initiatives of the Teijin Group
To follow up on the previous year, we conducted dialogues with international NGOs and other organizations with cooperation from Caux Round Table Japan (CRT Japan), a third-party organization. We also evaluated risks as part of our human rights due diligence in accordance with the UNGPs and took the following measures to address the risk of potential human rights violations.
- 1.Education and guidance for improvement for business partners
We conducted online seminars for the business partners of Teijin Frontier Co., Ltd., both in Japan and overseas (China, Vietnam, and Indonesia), which is active in the Fibers & Products Converting Business, which was identified in the FY2018 human rights risk assessment as posing the greatest risks.
- 2.Interviews with business partners
Interviews were conducted with processing consignees both in Japan and overseas for whom it was considered necessary to check on efforts with regard to human rights.
- 3.Review CSR Procurement Guidelines and questionnaire items in accordance with the social conditions related to matters of human rights violations in the supply chain
As a result of the FY2020 review, no material changes were made.
- 4.Circulating the CSR Procurement Guidelines among business partners
A CSR procurement questionnaire survey was again conducted in FY2020 for business partners both in Japan and overseas. In the result, the situation of human rights violations at our business partners has not confirmed.
- 5.Review of grievance handling mechanisms
Whistle-blowing reports filed in our existing whistle-blowing system are handled appropriately. Issues have started to be systematized on the assumption that a new reporting system aimed at employees of business partners will be introduced in the future.
The background and results of the above measures will be disclosed on the Teijin Group Modern Slavery and Human Trafficking Statement. Even amid the restrictions on activities due to COVID-19, we are promoting various online initiatives, including seminars in Japan and overseas and domestic auditing.
To follow up on the previous year, we conducted dialogues with international NGOs and other organizations in cooperation with cooperation from Caux Round Table Japan (CRT Japan), a third-party organization, and received the following comments.
- 1.Confirm whether there are any problems (such as problems concerning the freedom of association, forced labor, child labor, and discrimination) in human rights areas that are of concern to the WBA and in particular the CHRB within the TFR supply chain management system.
- 2.Determine the working conditions of foreign laborers who work for suppliers in domestic business and confirm whether any human rights issues have arisen (human rights due diligence and impact assessments).
- 3.Take measures to introduce complaint processing mechanisms that are not limited to the Teijin Group but also include suppliers.
- 4.Please make visible the management business-making process within initiatives based on the UNGPs.
- 5.Look into more optimal forms of active information disclosure.
In response to these comments, we evaluated risks as part of our human rights due diligence process in accordance with the UNGPs and took the following measures to address the risk of potential human rights violations.
- 1.With regard to human rights issues in the TFR supply chain management system, we confirmed responses to the questions concerning human rights in the results to the CSR procurement questionnaire survey, and in cases where responses were of concern, we confirmed the details. We then interviewed business partners, such as processing consignees in Japan and overseas, believed to require confirmation with regard to human rights initiatives and implemented practical improvement activities as necessary.
- 2.We determined the working conditions of foreign laborers who work for suppliers in domestic business, and to confirm human rights issues relating to those workers, we conducted a survey of domestic and overseas business partners in accordance with the CSR Procurement Guidelines, as we did in the previous year. The results did not identify any human rights violations.
- 3.Grievance handling mechanisms We are promoting the design of a reporting system for business partners and preparing for its specific introduction.
We are currently looking into making visible the management business-making process within initiatives based on the UNGPs and more optimal forms of active information disclosure, issues that were pointed out in the dialogues.
Summary of Human Rights Due Diligence
|Human rights due diligence coverage rate||Ratio of human rights issues of concern||Human rights issue measures implementation rate|
|Approach||Since FY2018, human rights due diligence have covered the entire Teijin Group||Ratio of the Teijin Group's sales accounted for by the Fibers & Products Converting Business, which performs sewing and processing and is a business domain in which human rights issues have been recognized||Monitoring of all 28 business partners for which human rights risks were identified through CSR procurement questionnaire survey and other means
Plans for FY2022
To follow up on the previous year, we are proceeding with the development of human rights due diligence mechanisms in accordance with the UN Guiding Principles on Business and Human Rights and set our human rights due diligence policy as indicated below, reflecting the results of dialogue with external experts.
- 1.We will undertake human rights due diligence initiatives throughout the entire Teijin Group from perspectives that include the environment.
- 2.We will set human rights due diligence targets, make a commitment to human right that includes the Board of Directors, and conduct management and monitoring on a practical level.
- 3.We will make appropriate disclosures concerning the status of human rights due diligence.
The specific details of the plan are as follows.
- 1.We will examine whether our policies, regulations, supply chain guidelines, and other rules relating to human rights including the Teijin Group Human Rights Policy and Code of Conduct are consistent with social requirements and we will make revisions as necessary.
- 2.We will use various means including CSR procurement questionnaire surveys, on-site inspections, and interviews by individual Teijin Group companies to confirm conditions at business partners. In cases where there are concerns regarding conditions at business partners, such as low evaluation results in survey responses, we will provide guidance on making improvements as necessary.
- 3.We will implement the following measures in the Fibers & Products Converting Business, which was identified as having the greatest risk in the FY2018 human rights violation risk assessment:
- a)As one aspect of the measures described in (2) above, Teijin Frontier Co., Ltd, will conduct interviews of domestic and overseas processing consignees and other business partners to confirm whether there are any human rights issues;
- b)Teijin Frontier Co., Ltd will hold seminars addressing primarily compliance with local laws and regulations and respect for human rights for domestic and overseas business partners;
- c)At Group companies that accept foreign technical interns, we will implement the Zero Fee Project, under which Group companies pay the fee is necessary for interns to come to Japan.
- 4.Grievance handling mechanism
We will proceed with designing reporting systems for business partners and introduce concrete systems.
Dialogue with External Experts
On October 20, 2021, the Teijin Group participated in "2021 Business and Human Rights Conference" organized by the Caux Round Table (CRT Japan). Our chief social responsibility officer held a dialogue with overseas experts on the issue of human rights and the Teijin Group's initiatives, and the following feedback was received. Regarding matters pointed out, we are committed to conducting dialogues with leading global external experts and to making improvements while receiving suggestions and assessments.
- The Teijin Group's CEO and Board of Directors have a clear commitment to respecting human rights and are demonstrating strong leadership to that end. In addition, I think it is wonderful that the Group is working to identify potential new issues, such as human rights issues that are linked to the impact of the COVID-19 pandemic, and is constantly adapting to change.
- The Teijin Group places the focus of its human rights efforts on its workers, which is obviously the correct thing to do. However, understanding how environmental issues tie into human rights concerns is an extremely important task, and I therefore hope that the Group can identify issues from that perspective and enact appropriate response measures.
- It is desirable that the Group continuously engage in dialogue with workers, who are in a vulnerable position within supply chains, and strive to solve problems in cooperation with other companies that are facing the same issues.
- There are various standards concerning disclosure of information, but the fundamental standard is the UN Guiding Principles on Business and Human Rights. It is recommended that the Group make reference to the benchmarks and frameworks proposed by the World Benchmarking Alliance.
- Social evaluation can be raised by enhancing disclosures regarding the involvement of the Board of Directors in human rights issues.
Dialogue on human rights held with external experts (October 20, 2021)
Regular Dialogues with External Experts in Japan
To implement initiatives relating to respect for human rights in accordance with international trends and standards regarding business and human rights measures, we conduct regular dialogues between CRT Japan, an external expert organization with a deep understanding of the formation of domestic and overseas trends, and Chief Social Responsibility Officers. During these dialogues, the participants engage in repeated discussions concerning the direction that the Group should take in light of the real-time status of the Teijin Group's business and its impact on human rights.
Initiatives to Promote Respect for Human Rights among Employees
Human rights education for employees
To raise awareness for human rights, the Teijin Group holds training sessions for all employees (including contract and dispatch employees) at each workplace during Corporate Ethics Month every October. In FY2020, we use the Corporate Ethics Handbook to hold discussions at each worksite on respect for human rights. Training participation rates in FY2020 were 91% in Japan and 98.5% overseas.
Response and use of comments received by counseling and reporting center
The Teijin Group has established a center for counseling and reporting and promotes its use. In FY2021, 125 consultations were received, of which 49 cases related to human rights (dissatisfaction with treatment, discrimination because of gender, etc., and sexual harassment). We investigated the facts in all of these cases. In those cases where specific issues were confirmed, we issued cautions and training for improvement and conducted monitoring so that there were no reprisals against whistle-blowers.
Identifying and analyzing potential risks based on comments received by our counseling and reporting center, we determine educational activities befitting the current situation and raise awareness of the importance of respecting human rights among all employees.
Initiatives to Promote Respect for Human Rights among Suppliers
In order to ensure respect for human rights throughout the entire supply chain, the Teijin Group has incorporated a section on human rights and labor in our CSR Procurement Guidelines and urges our suppliers to make efforts to respect human rights.
In FY2017, with reference to ISO 20400, an international standard relating to sustainable procurement, as well as other international standards, we clearly stipulated detailed initiatives on the following items relating to human rights and labor, etc.:
- <Human Rights and Labor>
- Forced labor
- Child and youth labor
- Foreign workers
- Working hours and paid leave
- Wages and welfare
- Freedom of association
The Teijin Group conducts CSR procurement questionnaire surveys of our major suppliers with the aim of assessing their efforts to respect human rights. For companies that provided doubtful answers regarding human rights, we inquire and confirm whether there are any concerns. In the FY2021 CSR procurement questionnaire survey, it was confirmed that no problems had occurred.
In addition, regarding the Fibers & Products Converting Business Group, which was identified as having a relatively high risk of human rights violations in the risk assessment of human rights due diligence, Teijin Frontier Co., Ltd, a representative group company, has conducted seminars and on-site audits on an ongoing basis for business partners in Asia and Japan with the aim of ensuring local business partners' legal compliance and protection of human rights. We will continue to conduct management and awareness-raising activities for businesses with high risks of human rights violations upon confirmation with third-party organizations and external experts.
Furthermore, for many years the Fibers & Products Converting Business has made use of Japan's technical intern training program to recruit technical interns from overseas. However, an internal survey indicated that such trainees were obligated to pay a large amount of recruitment expenses* in their home countries before coming to Japan. To address this issue, we commenced the Zero Fee Project in 2019, which aims to remove the burden of payment from overseas trainees by having the plant that accepts them cover the recruitment expenses.
- *There are some instances where foreign trainees are forced to pay to local recruitment firm before they come to Japan, their recruitment costs that was incurred the local recruitment processes. In some cases, trainees are forced to pay such amounts as is even equivalent of the incomes for years. Since they want to earn as much as possible, they tend to lead to problems such as long working hours at their own request and disappearance just before returning to Japan, which is a social problem.
Declaration of Support for UNICEF’s Children’s Rights in Sport Principles
In February 2019, the Teijin Group officially endorsed the Children’s Rights in Sport Principles put forward by UNICEF and the Japan Committee for UNICEF.
In the context of worldwide problems, that sports have a negative impact on children, such as violent coaching and excessive training that do not take account of children’s mental and physical development, these principles were established on November 20, 2018, to build a society that supports the healthy growth and development of children and contributes to promoting the rights of children.
The Teijin Group has developed materials and products for the field of sports, sponsored the All Japan High School Soccer Tournament as part of our CSR activities, and supported soccer clinics at Teijin Polyester (Thailand) Limited. In ways such as these, we are working to aid in the development of young people through sports, and to protect children’s rights to ensure that they are not negatively impacted by sports.