Respect for Human Rights within Supply Chains
Sojitz Group is taking action based on the United Nations Guiding Principles on Business and Human Rights.
Policies
<Set Policies>
General trading companies developing businesses around the world can impact the human rights of various stakeholders, both directly and indirectly, through their myriad supply chains.
In the event that a supply chain impinges on the human rights of its stakeholders through environmental pollution, land expropriation, or other means, Sojitz considers such impacts to pose an environmental and human rights risk that greatly impacts the sustainability of the supply chain overall.
For this reason, Sojitz has chosen “respecting the human rights of people involved in its businesses ” as one of its Key Sustainability Issue (materiality), and has made respect for human rights within supply chains a part of its “Sustainability Challenge.” Through making efforts to mitigate environmental and human rights risks, Sojitz seeks to build sustainable supply chains.
Sojitz Group CSR Action Guidelines for Supply Chains |
Sojitz Group Human Rights Policy |
Sustainability Challenge |
<Spreading Awareness of Sojitz’s Human Rights Policy>
In Medium-term Management Plan 2023 (FY2021 through FY2023), Sojitz will implement the following measures and awareness-raising initiatives at all Sojitz Group operating companies (183 consolidated subsidiaries, excluding special purpose companies).
(1) Collecting written documents confirming understanding of Sojitz’s human rights policy and relevant issues (currently, 179 documents have been collected from 183 companies for a collection rate of 98%)
(2) Direct dialogue with Group companies
■9 affiliates in high-risk regions | Dialogues completed in June 2021 |
■19 affiliates in high-risk industries | Dialogues completed in August 2021 |
■129 other affiliates | Dialogues completed in March 2022 |
■7 other affiliates | Dialogues completed in June 2022 |
In addition, we have informed business partners in high-risk industries about Sojitz Group’s aforementioned policies.
Risk Surveys and Assessments
In high-risk business areas, we are working to strengthen risk management by analyzing structures that tend to cause problems in countries where risk is present and conducting surveys and assessments specific to those risks.
As there are a variety of human rights issues that exist in supply chains, we believe it is important to prioritize our efforts on addressing human rights issues in business sectors where our analysis has revealed that urgent action is needed.
To this end, we positioned our previous Medium-term Management Plan 2020 (FY2018–FY2020) as a preparation period for building a framework for our human rights initiatives. We began by conducting a review of our approach to risk evaluation and identifying high-risk business areas. We then confirmed that ongoing risk management measures were being implemented throughout the Group and established a PDCA system to ensure continuous improvement. Under the current plan—Medium-term Management Plan 2023—we will deepen our PDCA efforts and build upon our existing initiatives to further disseminate Sojitz Group policies and raise awareness regarding human rights issues.
<Approach to Risk Surveys and Assessments>
We surveyed and confirmed the status of actions taken to address specific risks throughout Sojitz Group and our supply chains in business areas with high environmental and human rights risk, which we identified by referencing an NGO database.
●External Analysis:Analysis of Business Sectors Which Require Strong Human Rights Mitigation Efforts
We use Business & Human Rights Resource Centre’s database to collect examples of manifest environmental and human rights risks in countries worldwide, starting from the year 2000. In this way, we are analyzing which business areas generally carry a high risk.
Risk Evaluation Method based on our analysis, we have prioritized actions for each of our Group companies and business partners.
■Sojitz Group companies (consolidated subsidiaries/affiliates)
As the primary business operator, Sojitz Group assesses risk at all project companies,
regardless of country. High-risk businesses are prioritized for assessment.
■Business partners
We assume that even those trading businesses where transactions comprise small
amounts or which carry a small profit margin can belong to supply chains where
upstream development/production carries a significant impact on the environment and
human rights. For this reason, we must assess risk throughout the supply chain, to
ensure that Sojitz is not indirectly implicated in any environmental or human rights
violations.
Regardless of the size of the business dealings or revenue, we prioritize risk assessment of business partners that fall into high-risk business industries.
●Internal Analysis:Identifying High-Risk Business Areas from among Sojitz Group’s Businesses
We identify high-risk business areas from among Sojitz Group's businesses, and analyze where environmental and social issues are generally prone to occur throughout entire supply chains from upstream to downstream. We then investigate the supply chains of Sojitz Group’s businesses to confirm where those points exist.
Even if Sojitz Group is not directly involved, procurement may indirectly worsen issues upstream where environmental and social problems are likely to occur. We assume that these issues pose a risk and that they are likely to have a significant impact on the sustainability of Sojitz Group’s businesses.
Under Medium-Term Management Plan 2020, we are focusing on conducting risk surveys and developing systematic management methods specific to Sojitz Group’s business areas. Of Sojitz’s approximately 300 consolidated subsidiaries, 59 (including 23 equity-method associates) were in high-risk business fields, so we confirmed the status of their actions taken to address environmental and social issues.
※Locations of environmental and social issues in each business sector
Improvements/Remedial Action
<Improvements>
We are continuously making improvements based on our awareness-raising efforts as part of our human rights policy, issues brought to our attention through our dialogue and communication with Group companies and business partners as part of actions taken to evaluate risk in high-risk industries, and the opinions of third-party experts.
●Examples of Initiatives
●Initiatives for Business Partners
Sojitz Group conducts on-site inspections of suppliers and business partners to ascertain the status of specific risk reduction initiatives in the workplace and to communicates with those partners regarding necessary improvements.
In FY2019, Sojitz carried out an on-site survey with an appointed third-party organization to confirm the forest management situation at a wood supplier. In general, it was confirmed that appropriate forest management was being implemented. However, as deficiencies in some biodiversity conservation measures and labor safety measures at logging sites were pointed out, Sojitz requested the supplier to improve them and has been monitoring the progress.
Due to the impact of the COVID-19 pandemic in FY2020, our planned due diligence visits to lumber suppliers have been postponed. However, we continue to exchange information with each supplier. Through questionnaires and other means, we are confirming the status of our suppliers’ measures to address risks and make improvements. For details, refer to our Wood Procurement Policy page.
Honoring the “Supply Chain CSR Action Guidelines” in our Lumber Business 〜Sojitz Wood Procurement Policy〜 |
<Remedy>
Sojitz Group will focus its efforts on the following initiatives:
- ・External hotline (Japanese and English available)
- ・Internal hotline (25 languages available)
In addition to the aforementioned hotlines, Sojitz Group is making efforts to raise awareness regarding the importance of improvements and remedial actions taken during Medium-Term Management Plan 2023 throughout the Group and for suppliers in high-risk industries.
Disclosure Results
Sojitz Group will continue to disclose the results of the aforementioned initiatives and information regarding future measures with a high degree of transparency.