NAGASE Group Basic Human Rights Policy
Basic Principles
The aim of the management philosophy of the NAGASE Group is to contribute to society by maintaining the highest standards of integrity. To embody this philosophy today and in the future, we are committed to meeting our fundamental responsibility to respect the human rights of everyone who is affected by our business activities.
Based on this Policy, all the employees and directors of the NAGASE Group (defined as Nagase & Co., Ltd. (“Nagase”) as well as each entity in which Nagase has more than 50% of the voting rights, and any other entity wherein Nagase has approved the application of this Policy) are committed to fulfilling their responsibility to respect human rights. In addition, we will disclose this Policy to the customers and suppliers in our supply chain, business partners, and other concerned parties, who may be directly linked to the NAGASE Group’s business, products, and services, and expect them to gain a clear understanding of the Policy and comply with it.
This Policy was developed on the basis of the UN Guiding Principles on Business and Human Rights.
Responsibility to respect human rights
The NAGASE Group signed the UN Global Compact in December 2021. In addition, we support and respect the international rules on human rights, such as the UN Guiding Principles on Business and Human Rights and the UN’s International Bill of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, the Children’s Rights and Business Principles, the principles of the Convention on the Elimination of All Forms of Discrimination against Women, and the National Action Plans (NAPs) on business and human rights of each country. If the laws, regulations, and other rules of countries and regions conflict with each other, we will endeavor to find a way that allows the international principles on human rights to be respected.
We not only prohibit human trafficking, forced labor, and child labor but also respect the history, culture, and customs of each country and region and the personality and individuality of each person and promote initiatives to respect human rights, such as prohibiting discrimination and physical and psychological harassment on the basis of race, beliefs, gender, sexual orientation and gender identity, age, religion, nationality, language, physical features, disabilities, property, and birthplace. Our aim is the creation of a safe and pleasant working environment, protection of the rights to freedom of association and collective bargaining, and the provision of fair compensation.
We strive to improve our business, products, and services by strengthening mutual understanding of the potential impact of our business activities with the relevant stakeholders, such as customers and members of local communities, through dialogues and discussions with them. We aim to contribute to and operate in harmony with society.
Human Rights Due Diligence
We will establish a system for human rights due diligence based on the UN Guiding Principles on Business and Human Rights to identify any adverse impacts on human rights caused by our activities in society at large and to prevent and reduce such impacts.
Contact Center
We have established a contact center and hotline that can be used by the employees and directors and employees of the NAGASE Group. We also provide an inquiry form on the website so that all the stakeholders, including the customers and suppliers in our supply chain, business partners, and other concerned parties, who are directly linked to the NAGASE Group’s business, products, and services, can make inquiries or report on issues related to human rights. When we receive inquiries or reports, we immediately conduct the necessary investigations.
Remedy and Remediation
When we identify any adverse impacts to human rights that Nagase caused or contributed to, we make every effort to remedy and/or remediate such impacts by immediately implementing appropriate countermeasures.
Education
The NAGASE Group endeavors to raise awareness among all employees and directors through effective educational initiatives so that this Policy can be appropriately implemented and incorporated into all business activities.
Information Disclosure
The NAGASE Group monitors the initiative to respect human rights based on this Policy on a continuous basis and discloses the progress and results on the website and in other places.
Governance
The board member in charge of Corporate Administration Division is responsible for managing and supervising the implementation of this Policy. In addition, Corporate Administration Division shall collaborates with the relevant departments at each affiliate in the Nagase Group, and promote daily initiatives designed to reinforce respect for human rights.
System
The NAGASE Group has established the Risk Management and Compliance Committee as an executive body under the direct control of the President ＆ CEO and Representative Director, and the Risk Management and Compliance Committee (chaired by the director in charge) is responsible for promoting initiatives related to "Respect for Human Rights." The Risk Management and Compliance Committee reports to the on the execution of business operations, and also provides opinions and reports to the Board of Directors, the supervisory body, as well as to the Audit & Supervisory Board Members on a regular basis.
The Risk Management and Compliance Committee has established a "Code of Conduct for Risk Management & Compliance" that covers not only compliance with laws and regulations but also corporate ethics, and is working to establish, disseminate, and firmly establish a risk management and compliance system based on this code. The NAGASE Group's "Code of Conduct for Risk Management & Compliance" was revised on April 1, 2024, by changing the content of the section on respect for human rights. (The scope of the Code of Conduct was expanded from "only directors and employees of the NAGASE Group" to "the human rights of people involved in the Group's business activities.)
The Risk Management Department, which serves as the secretariat of the Risk Management and Compliance Committee, and the Sustainability Promotion Department work together with the Human Resources Department and other divisions to execute operations related to "Respect for Human Rights."
Human Rights Due Diligence
The NAGASE Group supports the UN Guiding Principles on Business and Human Rights and conducts human rights due diligence in line with the Guiding Principles.
Human Rights due diligence in line with the UN Guiding Principles on Business and Human Rights
[1] Human Rights Due Diligence for Employees
Following the results of the compliance survey conducted in FY2023 (821 respondents), we proceeded to conduct a detailed analysis of the survey in FY2024. Of all survey respondents, 13.7% indicated that they had seen or heard of compliance violations, including those related to harassment, a human rights issue. Harassment is recognized as one of the most serious human rights issues that can reduce employee motivation, hinder work ethic, and create a corporate culture of poor communication that hinders reporting and communication. In addition, in the free response section of the questionnaire, many employees expressed their opinions on compliance, including those related to human rights and harassment. The opinions received in the "Compliance survey" are utilized in the design of human rights due diligence, human rights-related training, and internal penetration measures as well as in measures to prevent recurrence of incidents that are found to be true as a result of fact-finding investigations.
Each NAGASE Group company conducts an engagement survey of its employees. Questions include those related to employees' human rights, such as organizational climate, human resources, facility environment, and institutional treatment, to confirm compliance with respect for human rights as stipulated in the NAGASE Group Basic Human Rights Policy.
[2] Human Rights Due Diligence in Business Activities and Supply Chain
Nagase has multiple business divisions and does business in multiple countries and regions. In conducting human rights due diligence, we use external data on human rights to identify "products" and "countries and regions" with high human rights risks. Interviews with sales representatives in each business unit and desktop surveys are conducted to identify risks by business unit. In FY2025, we will target multiple business units. In FY2025, we plan to identify business areas with significant risks, identify the process of negative impacts, and evaluate and identify corporate involvement with negative impacts.
Human Rights Due Diligence in the NAGASE Group
Nagase Vita Co.
Nagase Vita Corporation, a NAGASE Group company, has established a human rights due diligence mechanism in accordance with the United Nations Guiding Principles on Business and Human Rights, and is working to identify, prevent, and mitigate any negative human rights impacts our business activities may have. As Nagase Vita's key human rights issues, the company identifies and discloses its response policies for the following issues: consumer safety and the right to know, discrimination and harassment, child labor and forced labor, respect for basic labor rights, and promotion and support of working hour management and health and safety. In addition, the company conducted an implementation audit (management system, transparency and business strategy, labor, health and safety, and environment) of a manufacturer of tapioca, a raw material (base: Thailand), in FY2023.
Prinova
Prinova, a NAGASE Group company, supports, promotes and assesses compliance in all areas of its business activities in accordance with the nine principles of the ETI (The Ethical Trading Initiative) Code of Practice. Prinova is an AB member of Sedex (Supplier Ethical Data Exchange) (primarily for manufacturers and service providers) and uses the Sedex audit protocol to monitor and improve the sustainability practices of its business units and suppliers. Prinova also conducts SMETA (Sedex Members Ethical Trade Audit) audits every two years, and audits are completed at more than 50% of its suppliers. prinova is committed to all four pillars of Sedex (labor, health and safety, environment, and business ethics) Prinova promotes transparency in its supply chain and places particular emphasis on human rights and health and safety practices in its manufacturing facilities.
Training and internal penetration measures
To promote respect for human rights, the NAGASE Group conducts training for all employees, internal penetration measures, position-specific training, and specialized practical training.
E-Learning "NAGASE Group Step Up⤴Compliance"
Nagase conducts an e-learning program, "NAGASE Group Step Up⤴Compliance" as part of its human rights enlightenment activities for employees. 6 of the 12 sessions in fiscal 2024 were on human rights-related themes to promote employee understanding.
Themes: Definition of Power Harassment/ Excessive Guidance/ One Guidance Leads to... / Corporate Value Chain and Human Rights/ Respect for Human Rights and Promotion of D&I in Companies (1) / Respect for Human Rights and Promotion of D&I in Companies (2)
Compliance Newsletters
We publish a monthly "Compliance Newsletter" that reflects major internal and social issues related to compliance as well as feedback from employees. We also handle themes related to human rights, and in FY2024 we published "Let's Think about Power Harassment or Not Power Harassment" (November) on the theme of power harassment.
Harassment and Compliance Training by Level
Since FY2022, Nagase has conducted human rights and compliance training for directors and departmental managers. in FY2024 was conducted for all departmental managers in a face-to-face format with an attendance rate of 97.5% . In FY2025, face-to-face human rights and compliance training has begun for all employees .
Whistleblower training
The NAGASE Group provides in-person and role-play training for employees in charge of whistleblowing. in FY2024, 44 participants (from 20 domestic group companies) received training on "Psychological tendencies of consultants and whistleblowers," "Improving the ability to identify compliance violations and make decisions exercises," "Reporting and consultation Role-playing to learn interviewing techniques," etc., to improve the level of employees who perform whistle-blowing duties.
Rates and number of participants in major human rights-related courses in FY2024
| Training Title | Subject (of taxation, etc.) |
Attendance rate |
|---|---|---|
|
E-learning NAGASE Group Step Up⤴Compliance |
All employees (Nagase & Co., Ltd.) |
87.7% May 2024 Average of all 10 sessions from February 2024 to 2025 |
| Harassment and Compliance Training by Level | Section manager |
97.5% (attendance rate for in-person training) Number of participants: 114 |
Inquiry counter
The NAGASE Group has established a "Compliance Hotline" as a human rights hotline and a harassment hotline. This "Compliance Hotline" is a system that allows directors and employees, including those of group companies, to consult and report to internal and external contact points under strict confidentiality and anonymity.
| Subject (of taxation, etc.) |
Name | Scope | Counter |
|---|---|---|---|
| In-house | Compliance Hotline |
・Directors and employees of the NAGASE Group (Including contract employees, part-timers and part-time employees. Employees include those who have been retired for less than one year) ・Dispatched workers working under a dispatch contract (Including those who have been dispatched within one year of the end of their dispatch contract at the client company.) ・Other similar persons |
In-house Risk Management and Compliance Committee Secretariat |
|
Outside the Company Outside Law Firms |
|||
| Outside the company | Contact Us | ・All stakeholders, including business partners and local residents | Website |
Establishment of a Compliance Hotline staffed by women
The NAGASE Group "Compliance Hotline" is a system that allows employees to consult and report directly to a specialized desk when they discover a problem related to human rights within the company, such as harassment. The “Compliance Hotline staffed by Women” was established based on the concept of creating a workplace environment where women can work actively by having only women respond to initial consultations and reports, thereby lowering the psychological barriers to reporting.
Compliance Hotline at Overseas Subsidiaries
Overseas subsidiaries have contracted with law firms that can handle local languages, and have set up a contact point for consultation and reporting by phone or e-mail in their native language.
Number of reports on human rights
For information on the number of whistleblowing cases involving human rights issues, please click here.
