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Respect for human rights

Human Rights Policy

As the Group has global procurement and sales networks, we recognize that respecting human rights throughout the entire supply chain is a natural corporate responsibility. Based on this recognition, the "Human Rights Policy" formulated in fiscal 2020 applies to all Group executives and employees, as well as business partners including suppliers, and we encourage them to strive to respect the human rights of stakeholders in the business operations related to the Group, and we are promoting initiatives.

2. Scope of application

This policy applies to all officers and employees of J-OIL MILLS Group. We also require our business partners, including suppliers, to respect human rights and comply with this policy in their business dealings with J-OIL MILLS Group.

Promotion system

initiatives to respect human rights are promoted by the Human Rights Subcommittee under the Sustainability Committee, and activities are regularly reported to Executive Committee and Board of Directors, with both meetings providing Supervise and direction. In addition, taking into consideration growing societal demands, the importance of human rights risks, and the impact they could have if they were to materialize, we have clarified human rights risks as management risks and are focusing our management efforts on Risk Management Committee.

Overall picture of initiatives to respect human rights

Overall picture of initiatives to respect human rights

Roadmap

~FY2024 Fiscal Year 2025-2026 From fiscal year 2027
Policy
  • Formulation and partial revision of human rights policy
  • Penetration among employees, including those of overseas Group companies
  • Continue to spread understanding of human rights policies among internal and external stakeholders
  • Continue to spread understanding of human rights policies among internal and external stakeholders
Human Rights DD *1
  • Direct approach to rights holders
  • Strengthening raw material traceability
  • Expanding the scope of Supplier SAQ*2 and holding dialogue based on analysis results
  • Improving human rights literacy among employees
  • Enhancement of information disclosure
  • Analyzing and identifying human rights risks
  • Direct approach to rights holders
  • Establishing a system for human rights due diligence*1 targeting suppliers
  • Implementing responses to identified issues
  • Developing a system for human rights due diligence*1 targeting suppliers
Relief
  • Establishment and improvement of a grievance mechanism for employees, including those of overseas Group companies
  • Organizing policies for establishing a consultation system for external stakeholders
  • Expansion to external stakeholders
  • Operate and continuously improve grievance mechanisms for internal and external stakeholders

*1 Due diligence
*2 The "CSR Procurement Self-Assessment Questionnaire" is a common industry-wide questionnaire created by the Global Compact Network Japan (GCNJ). Based on international standards, it consists of questions that reflect 10 principles in four areas: protection of human rights, elimination of unfair labor practices, environmental response, and anti-corruption. The results of the SAQ survey are Supply Chain Management Published in.

Conducting human rights due diligence

We conduct human rights due diligence to ensure the effectiveness of our Human Rights Policy. Based on the Guidelines for Respecting Human Rights in Responsible Supply Chains, we identify and assess the risk of human rights violations, take preventative, corrective, and mitigation measures, and then verify and publicize the results. Going forward, we will consider establishing a consultation desk where external stakeholders can receive advice, in order to strengthen our remedy system.

Item Stakeholders Main issues recognition Direction of measures to address issues Results up to fiscal 2024
Human Rights DD*1 Impact and Evaluation Employee The impact of direct approaches to employees has not been assessed Dialogue with rights holders Conducting employee human rights impact assessments
Overseas Group companies Investigation of Malaysian corporations not yet conducted Understanding the actual situation of overseas corporations Conducting a survey to grasp the actual situation of Malaysian corporations
Supplier Responses such as requests for improvement and monitoring based on the analysis results of the SAQ*2 conducted in fiscal 2022 Creating a mechanism for continuous impact and evaluation Expanded the scope of SAQ*2 and conducted dialogue with some suppliers based on the analysis results
Foreign technical intern trainee Lack of direct dialogue with foreign technical intern trainees Be in a vulnerable position Understanding the actual situation through direct dialogue regarding working conditions and the working environment
Prevention and Mitigation Supplier ESG perspectives are not included in the decision-making process for new transactions Impact assessment when entering into new business activities or business relationships Consideration of impact and evaluation practices including ESG perspectives in new transactions
Information disclosure and literacy improvement All stakeholders Build a monitoring function to check the progress of issues Evaluation of the effectiveness of human rights due diligence*1 Monitoring the implementation and progress of each issues identified through gap analysis
Enhancement of disclosure regarding human rights Continuous information disclosure Disclosure in the integrated report and on our website
Remedy Overseas Group companies Confirmation of whether consultation desks at overseas Group companies are sufficiently publicized Thoroughly publicize the consultation desk Provide English helpline information
External stakeholders Establishment of a consultation desk and system development that external stakeholders can access Establishment of a grievance mechanism Organizing policies for establishing a consultation system for external stakeholders

Mechanism for dialogue between employees and the company

We respect the right of employees to join labor unions, freedom of association, and collective bargaining. Based on the labor agreement concluded between our company and J-OIL MILLS Labor Union, labor and management discuss various working conditions and cooperate to create a comfortable working environment. Our company has 649 labor union members, and the labor union membership rate is 99.2% (FY2024).

Interviews with foreign technical intern trainees

Given that foreign technical intern trainees are in a vulnerable position, we explained our human rights policy to two of our Group companies' contractors and conducted interviews, focusing on the employment contracts and other acceptance practices, as well as support systems. We also held direct dialogue with the trainees themselves regarding their working and living environments. As a result, we found no serious human rights violations, but we will continue to hold regular interviews and dialogues in an effort to identify human rights issues in our supply chain.

Initiatives to respect human rights in the supply chain

Our Group has established a Sustainable Procurement Policy and Standards and is working with our suppliers to promote sustainable procurement that takes human rights and the environment into consideration. To ensure responsible procurement of palm oil, one of the raw materials that supports our business activities, we joined the Roundtable on Sustainable Palm Oil (RSPO) in 2011 and formulated our Palm Oil Procurement Policy in 2020. Similarly, for soybean, we joined the Roundtable on Responsible soybean (RTRS) in August 2022 and formulated our Soybean Procurement Policy, striving for transparent and responsible procurement. In addition to sharing these policies with our business partners, we are working to conclude contracts with sustainability clauses as a mechanism for ensuring their effectiveness and conducting ongoing human rights impact assessments. We have already concluded these contracts with almost all of our raw material suppliers. Starting in fiscal 2022, we will begin human rights impact assessments using SAQ*2 for suppliers that account for approximately 80% of our raw material and material procurement value, and we will gradually expand the scope of these contracts. We provided feedback to suppliers where issues were identified and engaged in dialogue to make improvements.
In fiscal 2023, we visited and held dialogue with local palm oil refineries and loading ports as part of an assessment of the human rights impact of palm oil in Malaysia, and confirmed that no serious human rights violations were found within the scope of this inspection.
In addition, in fiscal 2024, we visited farmers and exporters to assess the human rights impact of soybean in Brazil and held dialogues. As a result, we confirmed that mechanization has progressed, human rights risks such as occupational safety and health caused by manual labor have been reduced, and that appropriate management is being promoted through initiatives of local companies. However, issues specific to Brazil still remain, and we confirmed the importance of working to improve supply chain transparency and foster mutual understanding regarding human rights.

Establishment of a grievance mechanism and remedies

Aiming to create a workplace environment where all employees can work with peace of mind, we are implementing a variety of measures to prevent harassment. Our internal reporting system (helpline) allows for consultation either anonymously or under a name, and we aim to respond and correct any issues as soon as possible.

Education and awareness activities

We provide training to our employees to explain the meaning of corporate commitment to human rights, including case studies of business impact caused by human rights violations, to raise their awareness of human rights, and to promote a corporate culture of respect for human rights.Since FY2023, we have conducted annual human rights e-learning for all our Group employees (including directors, temporary, contract and part-time employees) in Japan and overseas. issues initiatives In fiscal 2024, the focus was on understanding the human rights policy and specific initiatives topics related to our human rights risks, with a participation rate of more than 95%. In fiscal year 2024, we focused on understanding our human rights policy and specific information on our human rights risks, and achieved a participation rate of more than 95%. We also conduct an annual sustainability e-learning program to incorporate this into our daily operations and to foster an awareness of the parties involved.

We have also incorporated harassment prevention education into our training for newly appointed managers as a mandatory program, and through case studies using actual examples, we aim to help managers recognize risks and acquire the skills to respond appropriately. Furthermore, in fiscal 2025, we implemented harassment prevention education for all employees, including managers, with a participation rate of approximately 90%. We will continue to strengthen these initiatives, and by ensuring that all employees have correct knowledge about harassment and appropriate countermeasures, we aim to create a work environment where each individual is respected.

Wage management

We comply with the Labor Standards Act and other relevant laws and regulations, and properly conclude and implement labor agreements and labor-management agreements to ensure the legal minimum wage. Furthermore, based on the principle of "equal pay for equal work," we provide fair and appropriate wages to employees regardless of employment status. Furthermore, for employees with the same qualifications and job level, we apply a unified compensation system regardless of gender, striving to achieve equal treatment. Based on these policies, we are continually promoting the creation and operation of a wage system that enhances employee job satisfaction and satisfaction.

Participating in external programs on business and human rights

As a member of the Global Compact Network Japan (hereinafter referred to as GCNJ), we have been participating in subcommittees hosted by GCNJ since fiscal year 2025. In these subcommittees, we come into contact with the latest information through lectures by experts and exchanges of opinions among members, reexamining human rights policies and issues from an international perspective and further deepening our knowledge.

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