Human Rights

1. Our Commitment To Respect Human Rights

The Sojitz Group strives to create value and prosperity by connecting the world with a spirit of integrity. We believe that respect for human rights is an integral foundation for creating what we call “Two Types of Value” —value for both our company and society — and for meeting the expectations of our stakeholders.

As a general trading company, the Sojitz Group buys, sells, and trades goods from all over the world, provides manufacturing and sales services for a wide range of products, plans and coordinates various projects, invests in a multitude of business fields and conducts financial activities. In undertaking these business activities, we recognize our responsibility to avoid causing or contributing to adverse human rights impacts and to seek to prevent or mitigate adverse impacts to which we are directly linked.

We commit to respecting human rights as set out in the International Bill of Human Rights and the International Labour Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work, and to carry out our business in accordance with the United Nations Guiding Principles on Business and Human Rights.

2. Our People

The Sojitz Group - in accordance with international human rights standards as well as its Group Statement - is committed to promoting, among the executives, staff and employees of Sojitz Group, the prohibition of discrimination, respect for diversity (including with respect to race, nationality, ethnic origin, beliefs, gender, social status, religion, age, mental and physical disability, and sexual orientation), as well as responsible labor practices including prohibition of child or forced labor, prevention of corruption, provision of a safe labor environment, payment of minimum wage and ensuring appropriate working hours. The Group supports freedom of association and the right to collective bargaining.

3. Conducting Human Rights Due Diligence

The Sojitz Group is committed to assessing actual and potential adverse impacts on the human rights of our stakeholders in accordance with the United Nations Guiding Principles on Business and Human Rights. We will strive to prevent, mitigate and account for adverse impacts. Where it is necessary to prioritize our actions, we will prioritize action to address the most salient potential risks to our stakeholders.

The Sojitz Group shall comply with local laws and regulations in conducting its business activities. Where laws or regulations in a country conflict with international human rights norms, the Group will seek ways to honor international human rights standards. In making decisions on responses to be taken, we will seek opinions from credible third parties.

The Sojitz Group recognizes the importance of dialogue with our employees, workers and external stakeholders who are or could potentially be affected by our actions, and we are committed to engaging in such dialogue with stakeholders on human rights issues related to our business.

4. Specific Issues

Indigenous Peoples: When undertaking business activities in areas in which indigenous peoples reside, the Sojitz Group will acknowledge the unique culture and history of indigenous peoples and show consideration for their rights as set out in both local and national laws as well as in international standards such as the United Nations Declaration on the Rights of Indigenous Peoples and ILO Convention No. 169.

Employment of Security Companies: To avoid complicity in human rights abuses committed by security providers, the Sojitz Group supports the Voluntary Principles on Security and Human Rights (VPSHR), which guide companies in how to operate within a framework that ensures respect for human rights and fundamental freedoms.

5. Our Business Partners

The business activities of the Sojitz Group are possible due to the cooperation of various stakeholders including suppliers and other business partners. For the Group to meet our responsibility to respect human rights, their understanding and cooperation are indispensable. The Sojitz Group is committed to working with and encouraging our business partners to uphold the principles in this Policy.

In the event that we identify an alleged human rights abuse outside of the Sojitz Group but linked to our business activities, including in our suppliers and other business partners, upon confirming the situation the Group will ask relevant parties such as suppliers and other business partners to take measures to address the human rights issues.

• For further information on our expectations of our suppliers and other business partners, including our policy concerning cases of material breach, see our Sojitz Group CSR Action Guidelines for Supply Chains.

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Theme	Details	SDGs
Respect the human rights of people involvedin out businesses	Sojitz respects the human rights of people involved in its businesses. This applies not only to Sojitz employees, but also to everyone affected by its businesses throughout its supply chains. Should there be any instances of child labor or forced labor, Sojitz will rectify them.

Theme	Respect the human rights of people involvedin out businesses
Details	Sojitz respects the human rights of people involved in its businesses. This applies not only to Sojitz employees, but also to everyone affected by its businesses throughout its supply chains. Should there be any instances of child labor or forced labor, Sojitz will rectify them.
SDGs

International Bill of Human Rights
International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work
UN Guiding Principles on Business and Human Rights

The Sojitz Group Human Rights Policy detailed above recognizes all human rights set out in the International Bill of Human Rights and the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work, and Sojitz is committed to conducting its business activities in accordance with the UN Guiding Principles on Business and Human Rights.

The Ten Principles of the UN Global Compact

The United Nations Global Compact was advocated by former UN Secretary General Kofi Annan at the World Economic Forum in Davos on January 31, 1999. Sojitz and other companies that sign the UN Global Compact endorse ten principles in four areas (Human Rights, Labour, Environment, and Anti-Corruption) and continually work to promote them. The Sojitz Group CSR Action Guidelines for Supply Chains is based on these principles and other international standards.

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Modern Slavery Act (Australia)

Sojitz Development Pty Ltd discloses information in accordance with local Australian laws and regulations.

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Raising Employee Awareness

Dialogue with Sojitz Group Companies

Dialogue with the management of consolidated subsidiaries
In an effort to raise awareness of Sojitz Group policies and of relevant issues facing Sojitz Group, Sojitz holds dialogues with the management teams of its consolidated subsidiaries on an ongoing bassis.

In FY2021, Sojitz President and CEO sent a message to the presidents of all Sojitz Group consolidated subsidiaries emphasizing the importance of consideration for human rights and requesting their compliance with Sojitz Group policies. The presidents of the onsolidated subsidiaries endorsed the message and pledged to uphold Sojitz Group policies. Sojitz held one-on-one meetings with the management teams at 28 conslidated subsidiaries identified as operating in high-risk business areas* to discuss human rights risk-related trends and incidents. Sojitz used each meeting as an opportunity to share knowledge on the relevant risks found in each business area. Sojitz also had seminar-style dialogues with management teams at consolidated subsidiaries not identified to be operating in high-risk business areas. The seminars were an opportunity for consolidated subsidiaries leaders to review Sojitz Group’s policies, share information regarding risk-related trends and incidents, and raise awareness throughout Sojitz Group.

In FY2023, Sojitz held one-on-one meetings with the management tems of 36 companies, including large-scale and newly added Group consolidated subsidiaries and their associated companies. Sojitz also facilitated seminar-style dialogues with the management teams of other consolidated subsidiaries to share the latest trends and cases of human rights risks, and to exchange information on each companies issues and responsess.
(* Refer to the Risk Evaluation section to learn about high-risk business areas)

Confirming the status of Group companies' on-site initiatives through inspection
Sojitz Group conducts on-site inspections of its 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 June 2018, Sojitz’s Corporate Sustainability Office visited Kyodo Sojitz Feed Co., Ltd. ("KSF") in Vietnam, together with an outside specialist. KSF is a consolidated subsidiary which mainly produces and sells feed for raising pigs and chickens. Demand for meat in Vietnam is expected to continue to rise, and KSF is one of the companies contributing to the stable supply of reliable and safe food resources in the country.

The two-day, on-site inspection included discussions on sustainability with the company's management, and regarding the six focus areas* put forth in the Sojitz Group CSR Action Guidelines for Supply Chains, we were able to confirm the availability of various documentation, as well as initiatives at factories and facilities on company grounds.

KSF received an overall high rating from the outside specialist, including for its good labor management and preparation of documentation, and management quality improvement initiatives through acquisition of the GLOBALG.A.P. Certification, which certifies the environmental, social, and economic sustainability of an agricultural production business. However, the inspection resulted in the finding of a potential human rights risk in the category of "Safety and Sanitation in the Workplace" in one area of the factory. We shared this feedback in the post-inspection summary with management and prioritized making improvements in this area.

　

Sojitz Group Practices regarding Foreign Technical Interns

(Basic approach)
We uphold the International Bill of Human Rights and the International Labour Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work, and the company carries out its business with initiatives to promote respect for human rights in accordance with the United Nations Guiding Principles on Business and Human Rights.

In Japan, there have been cases in which Foreign Technical Interns face labor and human rights issues, such as low pay, non-payment of wages, lengthy working hours, as well as physical and verbal abuse. The U.S. State Department’s 2023 anti-human trafficking report stated that cases of labor trafficking continue within Japan’s Technical Intern Training Program. As technical interns hail from different nationalities and are linguistically and culturally different to Japanese employees, these workers are often in socially vulnerable positions where they can easily be exploited. Sojitz Group is therefore committed to paying special attention to ensure that technical interns’ rights are protected.

(Initiatives)
In order to ascertain the working conditions of Foreign Technical Interns at Sojitz Group, all Group companies accepting technical interns have been required since 2022 to carry out annual fact-finding surveys to verify that there are no discrepancies between Group practices and relevant labor laws and regulations, while implementing advice from third-party consultants.

Sojitz’s Tokyo HQ also visits Group companies to check technical interns’ workplaces, hold discussions with management and technical interns at Group companies, assess living and working conditions for technical interns, and confirm that technical interns are not struggling with any issues.

In addition to protecting the rights of technical interns, Group companies accepting technical interns also promote seamless communication with technical interns through activities such as providing opportunities for technical interns to study Japanese and holding trips or recreational events.

To increase awareness of Japan’s Technical Intern Training Program at Sojitz, we hold Group-wide information sessions, seminars with external experts on human rights, and open discussions on the topic of accepting technical interns.

Sojitz Group operates with the belief that understanding and implementing appropriate human rights practices at each of its business sites is vital to uphold respect for human rights across our supply chains. Across all Group companies, we consistently hold in-person dialogues with Group company management, provide e-learnings to employees, and host interviews with business divisions and Group companies active in business areas posing high human rights-related risks. Sojitz Group leverages these opportunities to spread Group-wide understanding of society’s most vulnerable populations whose rights require special attention, including foreign residents (technical interns), women, people with disabilities, and Indigenous people. As Japan’s Technical Intern Training Program will be reformed, we will continue to host dialogues and check in with Group companies and verify responses that need to be made in line with the new system.

e-Learning

In order to foster understanding of sustainability within Sojitz Group, we regularly conduct e-learning on changes in social trends related to sustainability and the response to environmental and human rights issues required of companies today.

In light of the Australian Modern Slavery Act which was put into law in January 2019 and the UK Modern Slavery Act which was amended in March 2020, we conducted an e-learning at target Australian and European operating companies in FY2020 about the Sojitz Group CSR Action Guidelines for Supply Chains in order to promote understanding and familiarity with local laws and regulations at overseas bases. The CSR Action Guidelines for Supply Chains define Sojitz Group’s approach to environmental and social issues within our supply chains and human rights issues such as modern slavery.

In FY2022, we conducted an e-learning on "Managing Human Rights Risks in Supply Chains" for employees (including seconded employees) at Sojitz Corporation to foster an understanding of the external environment and the Group’s policies and initiatives. In FY2023, we conducted an e-learning with the same content for employees of all Sojitz Group companies, as well as overseas subsidiaries and overseas branches.

Sojitz will continue to conduct e-learnings on addressing environmental and human rights issues for further advance understanding.

Seminar on Human Rights Risk

Sojitz Group Sustainable Supply Chain Handbook

Identifying Sojitz Group’s High-risk Business Areas

As there are a variety of human rights issues that exist in supply chains, we believe it is important to prioritize our efforts to address human rights issues in business sectors where our analysis has revealed that urgent action is needed.

To this end, we have analyzed NGO data bases on high-risk business areas in order to identify high-risk business areas to prioritize and conducted surveys and evaluations of the status of measures taken to address risk throughout Sojitz Group and our supply chains, including those of our suppliers. In September 2023, we analyzed the previous five years of risk data from these data bases and simultaneously reviewed our high-risk business areas based on the advice of external specialists and Sojitz Group’s business environment and circumstances.

Risk Assessment PDCA Cycle

Under the supervision of external consultants, we inspect our internal initiatives and confirm new issues to ensure that the actions taken throughout the Sojitz Group to address risks are sufficient.
In addition, dialogue is practiced with Group companies to spread awareness and promotion of initiatives targeting our wide-ranging supply chains.

As part of its human rights risk initiatives, Sojitz implements the following PDCA (plan–do–check–act) cycle in order to review the measures in place for addressing new issues that arise each year.

• Identify new issues
• Conduct survey
• Based on survey results, add new issues to list of previously identified high-risk business areas
• Hold dialogues regarding new issues with departments conducting businesses in relevant high-risk business areas
• Establish framework for human rights due diligence (including on-site surveys) in preparation for a potential major incident

We implement this PDCA cycle while incorporating insights gained through dialogues with Group companies and external consultants, and we strive to maintain a high level of awareness of human rights issues throughout the Group, identify new risks, and deepen our PDCA efforts each year.

Sojitz implements the following initiatives for educating Group companies on Sojitz Group policies and raising awareness for the issues that arise throughout our risk management activities.

• Each consolidated subsidiary submits a written document confirming that they are effectively promoting understanding regarding human rights and raising awareness among frontline employees
• The Corporate Sustainability Dept. conducts direct dialogues with each consolidated subsidiary
• Employees complete e-Learning courses (in Japanese, English, Portuguese, Spanish, Vietnamese, etc.)

For new investment and loan projects, we require the department applying for investment and loan approval to complete an “Environmental and Social Risk Checklist.” Using the checklist, the department confirms that they have conducted the required due diligence and taken the all necessary measures to deal with all risks including potential environmental and human rights issues.

Sojitz conducts human rights due diligence, including on-site surveys, for wood procurement business, and will expand the scope of these efforts moving forward.

Formulation of Individual Policies

To complement the Sojitz Group CSR Action Guidelines for Supply Chains, Sojitz has formulated policies related to high-risk areas where social standards are being developed, particularly lumber, minerals, and palm oil. Sojitz organizes its policies in regard to these areas, and action is being taken based on the established policies.

Risk Assessment (Wood Procurement)
From among Sojitz Group’s approximately 1,500 wood-related suppliers, we narrowed our scope to wood from countries with high country risk or from suppliers from whom Sojitz Group has purchased the most wood in terms of monetary value. This wood was then checked under the supervision of WWF Japan for 1) whether it could be traced back to its place of origin and 2) suitability of forest management (whether the forest is subject to environmentally/socially-conscious forest management).

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On-Site Due Diligence
Sojitz understands the importance of due diligence activities conducted at the sites of individual transactions and businesses when investigating and confirming human rights risks. For example, we have implemented the Sojitz Wood Procurement Policy, which contains provisions regarding legality, environmental consideration, and social consideration as they pertain to the procurement of imported wood products. One way we enact this policy is by directly visiting suppliers to conduct surveys that include meetings with managers, local NGOs, government agencies, and community representatives.

Risk assessments of high-risk areas performed in FY2023 found no issues with the measures taken at Sojitz Group companies or across the Group’s supply chains. Ongoing improvements through a PDCA cycle as well as timely and appropriate disclosure will be pursued in relation to these areas while incorporating input from external specialists.

Monitoring Methods
Sojitz uses ISO14001 as its standard for environmental management. The ISO14001 standard is generally applied to a company’s environmental activities. However, Sojitz uses the same systems for management to monitor its human rights-related efforts and makes regular reports to the Sustainability Committee.

Addressing Grievances Mechanisms
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 throughout the Group and for suppliers in high-risk industries.

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We properly manage personal information provided to the compliance hotlines in accordance with our Privacy Policy. If human rights issues related to the Group's business are recognized, we will engage in dialogues with stakeholders and strive to eliminate the issues.

Responsibility to Our Clients

Sojitz’s approach for maintaining food safety and security
Our company was the first general trading company to establish a Quality Assurance Office(*1) within our business division in April 2008 to handle increased consumer concern for food safety and to manage increasing food logistics risks resulting from the acceleration of globalization. We will continue to undertake effective initiatives to maintain the safety and security of food.

Please refer to the following website for more details.

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Efforts within Our Supply Chains

Participation in Sedex, an Ethical Business Practices Platform
Sojitz is a member of Sedex and reports corporate information regarding labor standards, health and safety, the environment, and business ethics in accordance with international standards. Sojitz participates in Sedex as part of its efforts to build socially responsible supply chains.

Sedex is an information sharing platform run by Sedex Information Exchange Limited, an NPO with headquarters in London. The organization conducts an internationally standardized survey of suppliers around the world on the environment, society, and human rights. Through an online system, members are able to share answers to these surveys and the results of audits, reducing the burden on both suppliers and contractors. Sedex is striving for the implementation of ethical and responsible business practices in supply chains on a global level.