26th November, 2021
Nippon CSR Consortium

Version for Public Consultation
2021 Human Rights Due Diligence Workshop (Tokyo, Japan)
Invitation to Comment on “Human Rights Issues by Sector (draft)”
Since September 2012, the Nippon CSR Consortium has been working to provide a forum in which toidentify and discuss negative human rights impacts that may arise as a result of corporate activities. This
work has been conducted in collaboration with companies from various industrial sectors, as well as NPOs,
NGOs and human rights experts in academia.
The ninth Human Rights Due Diligence Workshop for 2020 continued to use the Human Rights GuidanceTool developed by the United Nations Environment Programme Finance Initiative (UNEP FI) to identify
sector specific human rights issues. However, in the year 2021, society has been under tremendous impact
due to the impact of Covid-19, which became a pandemic. A total of eight workshops were held during theperiod from August 8 to September 30, and this document has been compiled. To facilitate the free anddeep discussion, this workshop adopts Chatham House Rule. Remarks in the discussion express views ofindividual participants, not views of representative that belong to companies or organizations. The sole
responsibility for the content of this document lies with CRT Japan, as an organizer of Nippon CSR
Consortium.
This paper is the result of a series of discussions in the workshop. The Consortium hereby releases “Human
Rights Issues by Sector (draft)”1.

Subject
Human Rights Issues by Sector (draft)2.

Application(1) Consultation Period
26th November 2021 – 26th December 2022 (Japan Time)(2) Submission Address
Please send your comments to CRT Japan’s Nippon CSR Consortium secretariat, by e-mail(info@crt-japan.jp) as an attached document in Word format. Please kindly be advised that we areunable to accept comments through other methods (such as by telephone, fax, or post), nor are weable to accept anonymous submissions.
(3) Application Procedure
Address to: Secretariat of the Nippon CSR Consortium (in CRT Japan)
Subject: Comment on “Human Rights Issues”

1Organization/Affiliation and Name: (Department, Name)
Email and Telephone :(4) Comments:
We invite public comments on the following questions. In the description of your comments,
please specify the industry sector, page number, and concrete issue that your comment addresses.
Depending on your needs, please enter your comments on the Public Comments sheet (Appendix
2).
1.

Please share any comments on the concept and procedure of this workshop

2.

Please freely respond with any comments on “Human Rights Issues by Sector (draft)”

3.

The final report is scheduled for publication in Febrary 2022. What kind of format and/or
procedure do you consider would be most appropriate for finalizing the report?

(5) Submission and Inquiry
Secretariat of Nippon CSR Consortium (in CRT Japan Office)E-mail: info@crt-japan.jp
3.

Management and Handling of Comments
The comments on the draft submitted to the Nippon CSR Consortium will be used for the futurereference of participants in the discussions. Please note that we are unable to respond to individualcomments. All the comments, personal names and/or corporate and organizational names submitted
may be disclosed on the CRT Japan website, however addresses, telephone and fax numbers, andaddresses of the commenter’s will not be published. If the comments include private information, bywhich a particular individual can be identified, or any information deemed to damage a property rightof an individual person or a corporation, pertinent sections of the text will be deleted at the time of
publication.

Hiroshi Ishida
Executive Director, Caux Round Table Japan2

Table of Content

1.

Preface ............................................................................................................................................................. 4

1-1.

Purpose of the Human Rights Due Diligence Workshop .....................................................................4

1-2.

Programme for Identifying Human Rights Issues ................................................................................5

1-3.

Procedure of the Workshop in 2021 .....................................................................................................8

1-4.

Points for Consideration ....................................................................................................................... 92.

Points for collecting Public Comments ...........................................................................................................93.

CRT Japan's viewpoint as the Secretariat of Nippon CSR Consortium ......................................................... 10

4.

Human Rights Issues by Sector (draft)

4-1.

Manufacturing……………………………….. …………………….…………...……………..….12

4-2.

Chemical and Building Materials…………….…………………………………………...……….15

4-3.

Consumer Goods (Cosmetics and Daily Goods)…………………………………………………18

4-4.

Food………………………………...…………………………………………………………… 21

4-5.

Pharmaceuticals…………...…………………..…………………………………………………...25

4-6.

Logistics and Transport …………………………………………………………………...………28

4-7.

Appeal………………..…………………………………………………………………...………31

Appendix 1: Public Comments Sheet3

1

Preface

1-1.

Purpose of the Human Rights Due Diligence Workshop

The Nippon CSR Consortium was established in September 2012 to raise awareness and promote activities
in the fields of business and human rights by offering a forum in which companies can discuss humanrights issues with NGOs/NPOs and human rights experts. Since 2012, the Consortium has held the Human
Rights Due Diligence Workshop. In 2012 the 68 participants consisted of 39 companies and 11
organizations, in 2013 the 35 participants were from 15 companies and 12 organizations, and in 2014 the68 participants were from 34 companies, 17 organizations and others, in 2015 the 98 participants in the firstsection of the workshop were from 48 companies and 17 organizations. In 2016, the 73 participants werefrom 40 companies and 14 organizations. In 2017, the 67 participants were from 23 companies and 17
organizations. In 2018, the 60 participants were from 17 companies and 14 organizations. In 2019, the 79
participants were from 25 companies and 13 organizations. In 2020, the 60 participants were from 20
companies and 10 organizations. In 2021, the 71 participants were from 26 companies and 10
organizations.
There are some underlying factors that contributed to the establishment of the consortium. Companies facedifficulty in responding to various demands and expectations from a broad range of their stakeholders.
Therefore, it is effective and useful for companies to join this consortium, discuss and identify what humanrights issues they need to address with NGOs/NPOs, and plan to carry out their human rights activities intheir companies. The consortium also emphasizes sustainability of activities. It is important for companies
to be committed to continuous efforts for incremental improvement. In order to respond dynamically to adiverse range of issues, it is also important for companies to stay abreast of changes and issues in thesociety that potentially link their activities to human rights impacts.
The Nippon CSR Consortium positions the workshop as an activity that aims to assist companies in (1)identifying and assessing any actual or potentially adverse human rights impacts as defined in the UN
Guiding Principles1, which are connected to their activities, and (2) integrating and acting upon the findings,(3) reporting, and (4) tracking improvement continuously. We hope participants’ companies can use theknowledge acquired at this programme to support their human rights due diligence activities at theircompanies.
The “Human Rights Issue by Sector (draft)” represents the outcome of the discussions started in August,and is hereby opened for public consultation. We would appreciate candid comments on the drafts fromstakeholders. The final document will be issued in February 2021.

Refer to: Human Rights Council, 2011, Report of the Special Representative of the Secretary-General on theissue of human rights and transnational corporations and other business enterprises, Available at:
http://www.ohchr.org/documents/issues/business/A.HRC.17.31.pdf#search='report+of+the+special+representativ
e+of+the+secretarygeneral+on+the+issue+of+human+rights+and+transnational (Accessed Nov 10th, 2014).

4

1-2.

Programme for Identifying Human Rights Issues

In order to assist companies in implementing human rights due diligence, the Consortium conducts
discussions on relationships between business activities and human rights. An overview of the past
Workshops is explained below.
In the 2012 Workshop, sector specific human rights issues were identified based on UNEP FI Human
Rights Guidance Tool2. The final report “Human Rights Issues by Sector (2013)” was released.
In 2013, the Workshop further explored “Human Rights Issues by Sector (2013)” from the perspective of
the value chain. It was very useful to identify human rights issues throughout the value chain, in order tounderstand what human rights issue may be arisen by the activities of different departments. The final
report “Human Rights Issues by Sector (v.2)” was released in 2013.
In 2014, the Workshop was planned and conducted in order to respond to public comments received in2013 indicating that “companies need to understand the particular context in which human rights issues
arise”. First, the participants examined 31 Global Risks outlined in the World Economic Forum Report3
and they then identified 16 Global Risks which were considered to give the greatest influence on the sectors
they belonged to. Then, they explored and identified the interconnectivities between global risks andhuman rights. This identification was useful for them to understand how social and environmental issues
were dynamically interconnected, and to understand the particular contexts in which human rights issues
arose. The final report “Human Rights Issues by Sector (v.3)” was issued.
In 2015, the participants examined the points which should be either added, removed or modified in“Human Rights Issues by Sector (v.2)” using the Human Rights Guidance Tool4 (2014 revision) developed
by UNEP FI. As the main feature of the 2015 Workshop, NGOs/NPOs and subject experts addressed
emerging human rights issues in Japan, covering sexual minorities, the empowerment of womenand technical intern trainees. In addition, the Workshop was scaled up from 9 sectors in 2014 to 11 sectors
in 2015, examining and identifying sector specific human rights issues. The final report “Human Rights
Issues by Sector (v.4)” was issued.
The other workshop was held to discuss how to facilitate food procurement in consideration forsustainability at the Tokyo Olympic and Plaralympic Games, and issued a draft “Food Vision” 5for the2020 Tokyo Olympics and Paralympics.
The 2016 Workshop addressed the relevance between the SDGs and human rights issues. The year of 20152

http://www.unepfi.org/humanrightstoolkit/fundamentals.php (Accessed on Nov 10th, 2014).
http://www3.weforum.org/docs/WEF_GlobalRisks_Report_2014.pdf (Accessed on August, 08, 2014)
4 http://www.unepfi.org/humanrightstoolkit/ (Accessed on July 10th, 2015)5http://crt-japan.jp/files2014/2-4-0-olympic2020/pdf/Food%20Vision%20for%20the%20Tokyo%202020%20Olympic%20Ga
mes.pdf (Accessed on August 8th, 2017)3

5

marked the following four significant events: Firstly, at the G7 Summit in Schloss Elmau Germany, G7
leaders pledged to promote responsible supply chains, and strongly supported the UN Guiding Principles
on Business and Human Rights. They also stressed the need to develop substantive National Action Plans
and strengthen grievance mechanisms. Secondly, at a Session of the United Nations General Assembly in
September, the SDGs were adopted. Thirdly, In the UK, the Modern Slavery Act was adopted. And finally,at the UN Climate Conference in Paris COP 21 in December, the Paris Agreement was adopted which will
come into effect in 2020. Considering all of these events, the participants identified sector specific humanrights issues with the use of Human Rights Guidance Tool developed by UNEP FI, and they identified
priorities on the SDGs by sector with the use of the SDG Compass6 whilst considering the SDGs and the
proposals for the SDGs submitted by NGOs/NPOs at the G7 Ise-Shima Summit. The final report “Human
Rights Issues by Sector (v.5)” and “Priorities on the SDGs by sector” was issued.
In 2017, given the raised concerns from NGOs/NPOs, the participants reviewed the sector specific humanrightsissuesformulated

by

the

CSR

Consortiumastowhether

there

were

any

additions/deletions/correction points. This year's workshop was implemented to help companies recognize
human rights issues particular to Japan, human rights issues in supply chains in Asia, and trends ofinstitutional investors in Japan. Compared to the composition of corporate participants last year, there weremore corporate participants from the consumer goods sector and food sector, whereas there were lesscorporate participants from the manufacturing sector and infrastructure sector. Also, there were moreparticipants from the human resource department and procurement department. Lastly, over 70% of theparticipants were new to the workshop.
In 2018, given the raised concerns from NGOs/NPOs, the participants reviewed the sector specific humanrights issues formulated by the CSR Consortium last year as to whether there were any
additions/deletions/correction points. As a feature of the working of 2018, NGOs/NPOs raised globally
increasing concerns such as on marine plastic pollution, SOGI (sexual orientation/gender identification),and the Technical Intern Training Program in Japan. Also, the subject experts shared the trends of Japaneseinstitutional investors. In regard to the composition of the corporate participants, the participation from thechemical and building materials sector, consumer goods sector, and food sector increased significantly fromthe previous year. In addition, the companies in the pharmaceutical, printing and consulting sectors, which
did not identify sector specific human rights issues in the previous year, participated in the workshop. On
the other hand, the companies from the manufacturing and transport sectors did not participant in theworkshop this year.
In 2019, given the raised concerns from NGOs/NPOs, the participants reviewed the sector specific humanrights issues formulated by the CSR Consortium last year as to whether there were any
additions/deletions/correction points. As a feature of the working of 2019, NGOs/NPOs raised globally
increasing concerns such as AI and human rights, AI and privacy, relationships between climate change and6

http://sdgcompass.org/ (Accessed on August 15th, 2016)6human rights, foreign workers in Japan, grievance mechanism, and SDGs and human rights. In regard to
the composition of the corporate participants, the participation from the chemical and building materials
sector, consumer goods sector, and food sector increased significantly from the previous year.
In 2020, given the raised concerns from NGOs/NPOs, the participants reviewed the sector specific humanrights issues formulated by the CSR Consortium last year as to whether there were any
additions/deletions/correction points. Due to the impact of Covid-19, this workshop, which was originallyheld from May to July, was postponed twice. In the end, we planned and implemented an online workshop
using the Zoom system from August to November. At the beginning of the workshop, the secretariat andparticipants made some mistakes and were confused about how to operate the Zoom system. However, they
accumulated know-how on Zoom methods as they experienced the workshop. In the half of the workshop,
face-to-face meetings with adequate infection control measures were also incorporated, and the workshop
was conducted in a hybrid format combining both online and face-to-face meetings. Many of theparticipants were working from home for infection control measures, and the workshop truly reflected thecurrent work style.
In 2021, as was the case last year, NGOs/NPOs and experts raised issues and, referring to the human rights
guidance tool developed by the United Nations Environment Programme's Financial Initiative (developedin 2011 and revised in 2014), the Nippon CSR Consortium conducted a review of each sector to see if there
were any additions, deletions or amendments to the "Human Rights Issues by Sector" formulated last year.
Due to the impact of the Covid-19 since last year, the program was conducted in an online format using theZoom system. Due to the state of emergency declared during the period (June to October), most of theparticipants were teleworking, and the programme reflected the work style of the Covid-19. Due to theteleworking environment, some participants came from Chubu, Kansai, Kyushu, Tohoku and the UnitedStates, broadening the scope of the programme.
This year's program covered ten themes, including human rights and environmental issues that need to betaken into account as the shift to renewable energy continues, the issue of forced labour in Xinjiang andUyghur Autonomous Region, which is having a major impact on global supply chains, proposals from
Generation Z who have risen to the occasion of climate change, and the hidden challenges of resource
recycling.
As the outcomes of the workshop this year, "Human Rights Issues (Draft) by Sector" was formulated.

7

1-3.

Procedure of the Workshop in 2021

The workshop consists of the following four steps.

Step1: Understanding the context in which human rights issues arise⚫

Corporate participants were given a lecture on the particular context in which human rights issues
arise by members of NGOs/NPOs and subject experts. After the lecture, the participants from thecompany, NGO/NPO, and subject experts were separated by the given topics and discussed further.

Step2: Reviewing and identifying adverse human rights impacts arising from corporate activities⚫

The participants reviewed the sector specific human rights issues formulated by the CSR Consortium
last year as to whether there were any additions/deletions/correction points, using the Human Rights
Guidance Tool (2014 revision).

Step3: Integrating perspectives from both corporations and stakeholders⚫

The corporate participants summarised discussion contents and exchanged their views with
NGOs/NPOs and subject experts. After receiving feedback from the NGOs/NPOs and subject experts,
the corporate participants finalized their discussion contents by sector. The Secretariat then compiled
their work and developed “Human Rights Issues by Sector (draft)”.

Step4: Collecting Public Comments and finalizing our report
The Secretariat invites public comments on this paper from 26th November 2021 – 26th December
2022.

8

1-4.

Points for Consideration

1-4.a

Relevance between business operations and human rights

In the beginning of this workshop in 2012, NGOs/NPOs did not have full understanding on how their socialand environmental concerns were relevant to business and human rights. Also, corporate participants did
not understand how their business operations and human rights were relevant. However, through thisworkshop, they started recognizing that social and environmental issues are business and human rights, andbusiness operations and human rights are relevant.
1-4.b

Scope of Study and Analysis

The workshop does not include the following study and analysis.
The interconnection map of WEF Global Risks illustrated in “Human Rights Issues by Sector (v.3)” is
not discussed or in the scope of analysis.

“Priorities on the SDGs by Sector” is not discussed or in the scope of analysis.

2

Points for collecting Public Comments

We invite public comments on the following three points, 1-3. In the description of your comments, please
specify the industry sector, page number, and concrete issue that your comment addresses, and thebackground and reason for your comments. You may use the Public Comments Sheet (Appendix 1) tosubmit your comments, if you prefer.

1.

Please share any comments on the concept and procedure of this workshop.

2.

Please freely respond with any comments on “Human Rights Issues by Sector (draft)”.

3.

Comments on the format and procedure of the final report

9

3

CRT Japan's viewpoint as the Secretariat of Nippon CSR Consortium

The period 2020-2021 marks a major turning point for business and human rights.
Global trends
In March, the European Parliament adopted human rights and environmental due diligence legislation forcompanies in their own value chains. On 8 October, the UN Human Rights Council (48th session) adopted
a resolution recognising the "right to live in a clean, healthy and sustainable environment" as a fundamental
human right, and discussions on climate change as a human right continued at COP26 in November.
In the meantime, civil society has launched lawsuits against CO2 emitting companies in many parts of theworld, and the oil giant Shell has been ordered by a Dutch district court to drastically reduce its CO2
emissions. The ruling, which made climate change a human rights issue, is forcing companies toincorporate the environment into their human rights due diligence. The ruling symbolises a global trend
towards greater corporate due diligence. From the outset of this programme, we have highlighted
environmental issues as relevant to human rights issues, and this year's case highlights this trend.
In addition, Generation Z has emerged as a new movement in civil society. The generation that has
benefited from the current economic development, but has been left behind by the challenges of the past, isbeginning to speak out and create a major movement with global links. We were joined by student
representatives from Friday for The Future to listen to their concerns.
In Myanmar, where the military regime continues to rule after the February coup, civil society isquestioning companies about indirect human rights abuses (promotion and involvement) by corporate
activities linked to the state military. The issue of state-sponsored forced labour in China's Xinjiang andUygur autonomous regions and the global supply chains linked to it (agriculture, solar panels, clothing)came to the fore. As a result, it has led to the G7 Foreign Ministers' Meeting's "Forced Labour Elimination
Statement" in October. In fact, a major Japanese apparel company had its imports stopped in the US in
January for insufficient proof that its suppliers were not involved in forced labour.
Domestic Developments
In Japan, efforts on the Action Plan on Business and Human Rights (NAP) (October 2020) led to a movefrom the Ministry of Foreign Affairs to the Ministry of Justice and then to the Ministry of Economy, Tradeand Industry. In July, the Ministry of Economy, Trade and Industry (METI) established the Business andHuman Rights Policy Coordination Office. In August, the government conducted a large-scale survey oflisted companies and other organizations on human rights issues in the supply chain, and in September, it
published a collection of examples of corporate initiatives as an interim summary of the survey results.
Based on the results of the survey, the government will now consider whether it is necessary to establish
rules and laws requiring companies to take action. The second Kishida cabinet has stated that it willencourage the promotion of "human rights due diligence" to identify and prevent the risk of human rights

10abuses by companies in their supply chains. Legislation requiring companies in Europe and the US to takesuch action is now in place, and there are concerns that if Japanese companies fail to take appropriate
action, they could lose their international competitiveness.
In the context of this government trend, this initiative is based on the "Human Rights Due Diligence"
initiative, which should be referred to, in the guidance on "Business and Human Rights: What Companies
Need to Do Now" published by the Human Rights Protection Bureau of the Ministry of Justice in 2021, andthe "Important Human Rights Issues by Sector (Draft)" published by the Nippon CSR Consortium. We arepleased to report that the Nippon CSR Consortium's "Important Human Rights Issues for Each Industry(Draft) in Japanese" (public comments to be made at the end of 2020) was cited as a case study that should
be referred to, and has become a focus of attention.
Covid-19.
Vaccination has started in many countries and the worst is beginning to be over. However, challenges
continue to mount, such as the loss of production capacity in global supply chains, the availability of labour
for transport, the rise in resources since the economic recovery from Covid-19, and the new life withCorona. Severe working conditions have been identified under Covid-19, including new issues such as
mental health due to teleworking, and the working conditions of those who cannot stop, represented by
Essential Workers. These are directly linked to human rights issues.
The companies participating in this programme are continuously and sincerely addressing "Business andHuman Rights". In the business environment surrounding the aforementioned corporate activities,
companies have also begun to engage in human rights due diligence. However, the scope of investigation ofhuman rights respecting entities (rights holders) is often limited to their own full-time employees. Although
an increasing number of companies are carrying out human rights due diligence, including in the supply
chain, the methods used to do so are mainly questionnaires confirming the CSR initiatives of their business
partners, and do not approach the employees (frontline workers) who are the subjects of respect for humanrights. Some companies were also considering conducting human rights due diligence using various
certification schemes and social audits, but these do not guarantee meaningful engagement with rights
holders and are not a substitute for human rights due diligence. Rather than ticking off human rights
checkboxes in questionnaires, audits and the like, companies need to dynamically identify where, for whom
and what human rights and environmental issues are occurring across their business relationships.
Few companies are able to visualise their supply chains and identify and engage with specific vulnerable
rights holders.
As a result, there is a noticeable lag in the implementation of the Grievance Mechanism, which reaches
rights holders directly. We see a continuing failure to change the paradigm, as companies seek answers totheir problems by extending the whistleblowing systems already in operation. The Secretariat feels that
there is a need to be aware of the difference in scope and stakeholders between whistleblowing systems,

11which focus on compliance violations, and human rights issues that extend throughout the supply chain.
Finally, it should be noted that dialogue is the essence of human rights initiatives. In this Programme,
human rights issues of concern are made visible from both civil society and business. As a next step, an
important part of corporate efforts to address human rights issues is to engage in dialogue with thoseaffected by human rights violations and the NGOs/NPOs that support them in order to raise awareness of
the issues. The Programme's approach is to help companies take the first step towards carrying out humanrights due diligence, and is a gateway to doing so. When there is a problem, companies should work with
their stakeholders to use their expertise and strategy to address the issue and ensure legitimacy throughaccountability and transparency. By doing so, they will be able to obtain a license to operate from society
and ensure the sustainability of their business. The question is how the corporate participants in thisprogramme can integrate this approach into their corporate management and link it to their own humanrights initiatives.
While the global economy aims for open markets, the reality is that its expanding supply chain creates aseries of obvious and significant challenges to be solved. We are now faced with the challenge of shifting toa New Normal way of life, not "after Corona", but "with Corona". The answer lies not in extending
conventional economic activity.
Caux Round Table Japan
Nippon CSR Consortium
Minoru Matsuzaki
Hiroki Wada

12

4. “Human Rights Issues by Sector”
4.1 Manufacturing Sector
Key value chains in manufacturing sector
Create: research, development, design Buy: capital investment, procurement Manufacture: production, manufacturing
Transport: storage, logistics Sell: sales and marketing Use: consumption, utilization, maintenance Disposal: disposal, recycling
Value Chain

Use

DisposeSell

Transport

Buy・Risk that the minimum wage does not match the local standard of living, leading to long working hours.
・Compensation for leave and wages in the event that a child is forced to take an extended leave of absence due to a sudden closure of preschool or schoo l(Not guarantee aproper place to stay if the guardian cannot take leave.)
・Risk of overwork due to production adjustments (priority on delivery)*While there is a request to increase production of daily necessities due to COVID-19, there is also a plan to drastically reduce production due to decreased demand.
・Proper working hour management is not carried out. Separation of work and private life (self-reporting).
・Appropriate compensation (wages) for labor is not paid.
Not keeping track of hours worked → unable to pay
・Wage disparity may affect the future education of children.

Manufacture

Working hours and wage

Concrete issues

CreateKey human rights issues in the manufacturing sector

レ レ レ レ レ レ レ・Overtime and long working hours, especially in Japan. Excessive working hours for managers (middle management).
・Inappropriate use of discretionary labor system and deemed management positions
・Disparity in working conditions and wages among group companies. Equal pay for equal work.
・ Possibility of long working hours due to old production facilities.

Workplaceconditions

Core operation/
Supply chain

Health and safety
1: Physical, hard
2: Mental side
3: Health
4: Education

Discrimination During employment and work

1) Workplace accidents resulting in death or serious injury, especially in research, manufacturing, and factory settings [creation/construction].
2) Risk of health care problems, especially mental health problemsd ue to long working hours.
4) Loss of educational opportunities for employees due to long working hours.
4) Risk of disparity in educational opportunities due to differences in employment status, nationality, race, gender, age, educational background, length of service.
2) Lack of communication due to remote work may lead to isolation and exclusion from the workplace.
1) Risk of workplace accidents while working from home
(Risk of health hazards due to lack of safety considerations, different working environment, and disruption of daily rhythm)
3) Progression of illness due to lack of health checkups
レ レ レ レ レレ

レ レ レ レ レ

レ1) Living environment where minimum space is not secured, such as living in a dormitory with several people per room, and lack of sanitary facilities (showers, toilets, etc.)
1) Living environments that do not provide the minimum amount of space, such as dormitory living with only a few people per room, inadequate sanitary facilities (showers,
toilets, etc.), dormitories located on factory grounds. Management with locks from the outside may adversely affect the health of employees.
3) Progression of occupational diseases due to lack of or non-use of protective equipment such as finger sacks, gloves, masks, ear plugs, etc.
1) Health and safety standards do not meet global standards (emergency exits, evacuation drills, etc.)
4) Treatment to foreign workers (especially in terms of safety and health guidance and awareness, language issues)
1) Ensuring the safety of employees and accompanying family members in COVID-19 endemic countries
1) Ensuring the safety of employees engaged in work (manufacturing sites) where telework is not allowed under COVID-19(1) - (4) Possibility of infringement of children's healthy life due to parents' long working hours

・Risk of unequal treatment in terms of working conditions, training, and promotion
・Discrimination against women and sexual minorities
・Harassment (sexual harassment, power harassment, and remote work harassment)・Response to SOGI (sexual orientation and gender identity) (renovation of restrooms and changing rooms, some companies have stopped including gender on resumes)
・Discrimination based on nationality, race, religion, etc.
・Discrimination against non-vaccinated people (forced vaccination)
・Discrimination against infected people
・Discrimination against workers may lead to discrimination against their children

Child labour

Forced orcompulsory
labourCore operation/
Supply chain

1: Minimum age
2: Addressing young workers

1) Children may be employed in supply chains (subcontracting work, etc.) in developing countries, and that brokers may be using them as intermediaries.
1) Asian workers may apply for employment by falsifying their age.
2) Asian workers may be forced to engage in night work or dangerous work.

Employment

・Migrant workers (including foreign nationals and domestic migrants) may be required to pay excessive recruitment fees and keep identification documents (e.g., passports)
when hired.

Forced overtime

・Long working hours due to excessive quotas may lead to de facto forced labor.
・Negative impact on stakeholders may be given in the material production process.

レ

レ レ

レ

レ レ レ レ レ

Freedom of
association

・There may be a lack of dialogue and communication with worker representatives and labor unions.
・There is a risk that labor-management consultations and collective bargaining are not sufficiently institutionalized and managed. In addition, although the right to collective
bargaining is recognized, there is a risk that negotiations are not actually conducted.
・There is a risk that the rights of workers are not sufficiently secured in the union store system.
レ レ レ レ レ・In countries and regions where the formation and activities of labor unions are prohibited (including cases where they are prohibited in substance), there is a risk thatworkers' rights are not sufficiently secured.
(In some cases, labor unions are not protecting employees and are not fulfilling their roles as they should be.)Resources/local
Use of natural resources
community・There is a risk of over-extraction of resources (upstream supply chain) due to development, design, distribution and sales of products with high environmental impact (highpower consumption, low recyclability).
・In addition, there is a risk of damaging the lives and health of local residents in the vicinity of production sites, as well as overuse and pollution of water and land atfactories and local construction sites, and depletion of resources [buy/create/dispose].
・The use of energy and resources that are assumed to have a low environmental impact when in fact they have a high environmental impact, which may lead toenvironmental destruction and human rights violations.
・Risks of adversely affecting local communities through the use of renewable energy and biomass resources (environmental impact from power plants, promotion ofレ レ レ レ レ レ レ
deforestation through the use of palm oil)・Risk of inappropriate use or disposal by suppliers or final consumers(e.g., ocean plastic problems, increased processes at waste treatment facilities)
・Circulation and use of virtual currencies may generate huge amounts of power consumption
・Risk of destruction of forest and ocean ecosystems due to procurement of raw materials
・Construction and operation of business sites may destroy local ecosystems.
・Risk of continued adverse effects on the global environment due to failure to review the environmental impact of businessCommunity

Security

Payments to anti-socialorganizations

Access to Land Land ownership

Society andgovernment

レ レ レ レ・Funds, products, or services may flow to non-governmental or armed groups in the procurement of raw materials or disposal of products.
(e.g. conflict minerals)
・In the procurement of labor, part of the wages may flow to anti-social organizations or armed forces (e.g., technical trainees).

レ・Risk of forced displacement of indigenous and local residents when acquiring land for business purposes.
・Risk of damaging the value of the land through construction and operation of the project site

レ レ

レ

レ

Bribery and corruption

・ Potential risk of being involved in bribery and corruption, such as facility payments, especially at the time of obtaining licenses and authorizations.
・ Possible risk of bribery at the time of contract, customs in the industry, collusion (in the form of transactions / operations), risk of conspiracy to fraud at the time ofgovernment-related business orders

レ レ レ レ レ レ レ

Relations to states with highhuman rights risks

・ Risk of being involved in human rights abuses when doing business in the country or region where there is a gap between local laws/customs and international standards

レ レ レ レ レ レ レ

Relations withgovernments

Relations withcustomers

Complicity

Health and safety andprotection of personal
information

・The risk of harm to the life, health, or property of consumers due to defects in products or services provided to customers, inappropriate marketing activities, or failure toproperly disclose information
・Risk of infringement of individual human rights due to inappropriate management of personal information obtained in the business process
・Inappropriate advertising and information dissemination may cause consumers to feel uncomfortable or have false perceptions, promote discrimination or prejudice, orcause health problems due to false perceptions.
・Product services that do not take diversity into consideration may make it difficult for vulnerable groups to access them.

Unintended use or misuse

・Surveillance cameras may be used for forced labor facilities or for sexual damage such as voyeurism.
・There is a risk of criminal use of social networking services.
・There is a risk of illegal modification for conversion into weapons such as cars and drones, or for misuse.
・Possibility of stalking by using IC tags.

Development of Access toRemedy・Human rights violations may not be corrected if the remedy contact points and processes are inadequate.
・Inadequate monitoring by a third party may prevent the remedy process from being effective.
・Reports may not be connected to the remedy process.
・The whistleblower may not be protected.
・Current functions may become ineffective
・It is necessary to consider a remediation process that includes the supply chain, but this has not been done yet.
・Lack of information dissemination (absolute lack of information, lack of multilingual support, business practice factors) may prevent recognition as a target of remedy.

OthersRemedy©Caux Round Table Japan

レ

レ

レ レ レ

レ

レ レ レ レ レ レ レ

13

4.2 Chemical and Building Materials Sector

This table summarizes the value chains that are considered common in the industry.
Incidents related to specific products and services at an individual company need to be reviewed by individual company.

*A subcontractor/ onsite Subcontractor refers to an outsourcing company that provides various services such as manufacturing and logistics at each stage of the value chain (including staff who visits office/ plant on a regular basis)

Value Chain

DisposeSubcontractor
Onsite Subcontractor*

Reuse and recycling

Sell

Use

Transport

ProcureProduceResearchCore
Workplace
operation/
condition
Supply chain

Concrete issues

Development

Key human rights issues in chemical and building
materials sectors

Working hours

・Overtime is likely to occur due to orders received without consideration of resources and short delivery times associated with COVID19.
・Insufficient understanding of the degree of thoroughness of working hour management in accordance with the different working
レ レ
レ
レ レ
レ
レ レ
レ
conditions in different countries and regions
・If there is a gap between international norms and the laws of each country, there is a concern that following the laws of countries thatallow longer working hours than international norms may lead to health hazards for workers.

Health and safety

・As a manufacturing company that uses hazardous substances (e.g., chemical substances) and large-scale equipment, there are relatively
many sources of danger in the work environment.
・Concerns that accidents during the transportation of hazardous substances may cause health hazards to those involved and to people
living near the site.
・Concerns about health hazards to the company's own employees and end consumers when suppliers do not provide sufficient
レ レ
information on chemical substances
レ レ レ
レ レ レ レ レレ
レ レ
・In the case of outsourced safety and functionality testing, if the outsourced company does not have a strong sense of ethics, it could
lead to human rights issues.
・In the manufacturing industry (especially in plant operation), it is difficult to introduce telecommuting, and since many construction
workers come and go, such as during regular maintenance, there is concern that inadequate measures against COVID-19 may affect safe
and stable operations.

Disciplinary measures

・Concerns that national/regional practices for disciplinary actions vary widely and that disciplinary action policies have been developedthat are not consistent with local practices (company)
・Concerns that grievance mechanisms are not sufficiently in place to deal with disciplinary actions (company)
レ レ レ レ レ レ・Country/regional practices for disciplinary actions differ greatly, making it difficult to ascertain the actual status of disciplinary actions
at suppliers

レ レ

Wage

Concerns at suppliers, contractors, etc.
(1) Concerns that appropriate wages are not paid in line with working hours(2) Concerns that wages paid to foreign technical interns are not understood.

レ レ

レ

レ

レ
レ

レ

15

During work・In recent years, for example, discrimination against sexual minorities and power harassment have become major issues, and it cannot
be said that discrimination at work has been eradicated on a global scale.
・Concerns about human rights issues due to inability to keep up with improvements in the working environment for foreign workers
who do not understand Japanese and workers with disabilities.
・Concerns that regulations based on Europe's ・General Data Protection Regulation are being strengthened in Japan, but there are
レ レ レ レ レ レ
concerns that the privacy of employees is not respected and personal information is not reliably protected.
・Concerns about a mixture of consideration and reverse discrimination due to unconscious bias (loss of opportunities to work in desiredjobs)
・Concerns about discrimination on whether vaccination for the COVID-19 is done or not.

Redundancy anddismissal

・ Illness and pregnancy may be a judgment factor without specifying objective standards, and implementation based on sufficient
communication may not be made.
・Non-regular employees and on-site work contractors may be dismissed due to the economic downturn caused by COVID-19 and it
may be difficult to have a true figure of the situation.
・ Employees are likely to experience unexpected dismissal due to the progress of digital transformation in the time of COVID-19.
レ レ レ レ レ レ・Concerns about the unexpected loss of employment of employment types (non-regular workers, contractors, etc.) that are considered tobe particularly vulnerable in the value chain(1) Rapid economic downturn(2) Rapid changes in the business environment due to COVID-19

レ レ

レ

DiscriminationCore
operation/
Supply chain

Child Labour

Dangerous work andemployment
Minimum age
Working hours andworking conditions

・ Concerns in suppliers and contractors

レ

レ レ

レ

・ Concerns in suppliers and contractors

レ

レ レ

レ

・ Concerns in suppliers and contractors

レ

レ レ

レ

Employment of young
workers

・ Concerns in suppliers and contractors

レ

レ レ

レ

Deposits and papers

・ Concerns about the existence of migrant workers on a global scale and the inability to comprehensively grasp the reality of foreigntechnical interns. At time of ocurrence, companies may face great reputational risks.

レ

レ

レ

Forced overtime

・ Forced overwork is demanded to workers when companies receive orders without due consideration of resources (volunteer overtime
work is regarded as overtime work).

レ レ
レ
レ
レ レ
レ

レ

レレ

Human trafficking

・ Concerns about the existence of migrant workers on a global scale and the inability to comprehensively grasp the reality of foreigntechnical interns. At time of ocurrence, companies may face great reputational risks.

レレ

Forced LabourCore
operation/
Supply chain
Freedom of
association

レ レ

レ

レ レ

・ Labour-management negotiations may not be properly conducted (one's company and supply chain).
Freedom of association
・ Employees may not have a means to discuss issues related to labour without interference of companies (one`s company and supply
and collective bargaining
chain).

レ レ レ レ レ レ

レ レ

レ

Measures to be taken
when not permitted bynational law

レ レ レ レ レ レ

レ レ

レ・Labor-management negotiations may not be normal.
・Concerns that employees do not have the means to discuss labor-related matters without interference from the company.

Relationships with suppliers in countries ・Concerns about indirectly contributing to the occurance of negative impacts on human rights through procurement from suppliers inand regions with high human rights risks countries or regions with high human rights risks.

レ
レ

レレ

Community Resources

As a chemical company, we are working to reduce environmental impact and properly manage chemical substances, but we haveidentified the following as potential human rights issues.
・Concerns about inappropriate use and disposal by suppliers (customers) (e.g., marine plastics)
・Because the industry uses a relatively large amount of resources and is likely to cause local pollution damage due to spills or exposure
Use of natural resources to pollutants, the impact on local communities is significant.
(water and land)
・There is a risk of water depletion due to deforestation caused by factory construction and excessive consumption.
・The promotion of conversion from fossil resources to non-fossil resources may lead to violation of indigenous peoples' rights such as
forced incarceration of land and adverse effects on biodiversity due to deforestation, etc. Specifically, there are the following concerns
1) Concerns that the use of edible plants (corn, soybeans, etc.) as resources will indirectly cause price hikes and food shortages.
(2) Concerns that the use of biodegradable plastics and biomass fuels made from oil palm will contribute to environmental destruction.

レ レ
レ レ

Bribery and corruption

・In cases where land acquisition is necessary for the establishment of a factory or the acquisition of a sales license, bribes may be
demanded, and the land acquisition may force the original residents to change their living environment.
・If the company is involved in corruption, it may be ordered to pay a surcharge or suspend operations, or its reputation may be damaged,
which may indirectly affect the employment of its employees (the company).

レ レ
レ レ

Relationship withcountries with highhuman rights risks

Concerns about indirectly contributing to the occurrence of negative human rights impacts(1) Obtaining permits, licenses, etc. and operating in countries with high human rights risks(2) Procurement from such state-sponsored enterprises (conflict minerals, timber, polysilicon, etc.)

Society and Relations withgovernment governments

レ

レ

レ
レ

レ レ

レ
レ レ レ レ レ レ レレ
レ(1) Concerns that negative impacts on human rights cannot be ascertained due to the lack of establishment, maintenance, anddissemination of a grievance mechanism to a wide range of stakeholders related to the business.

Remedy(2) Concerns about the inability to respond to the following issues in a timely and appropriate manner due to the wide range of value
chains・Concerns that consultation systems and points of contact are not set up in consideration of local languages, reception hours, legal
systems, cultures, etc.
・Concerns about not being informed in advance of how to access the grievance mechanism and of the expected action and time frame・Concerns about the lack of visibility of the value chain
・Concerns that information is not communicated and appropriate responses are not taken from the perspective of respect for humanrights・Concerns about lack of dialogue and disclosure of inquiries

レ レ レ レ レ レ レ レ レ

レ(3) In consideration of the impact of COVID-19, consideration and response are also required for the following matters
・Review of grievance mechanism methods (establishment of a grievance mechanism that can be handled remotely is required inaddition to the establishment of a grievance mechanism that requires attendance at work (e.g., a suggestion box)
©Caux Round Table Japan

A double-check status (レレ) shows greater risks. 17

4.3 Consumer Goods (Cosmetics and daily goods) Sector
Value Chain

Dispose

ProcureUse
SellAdvertiseTransport
Produce

Working hours• Long working hours may be caused by (a) production schedules that presuppose overtime work, as well as attempts to catch up to delays in production schedules
in upstream supply chain, (b) low wages that do not match local standards of living, (c) piece-rate work, and (d) repair work of a large volume of defective products
or products which need adjustments.
• Long hours of work may occur due to excessive response for customers and increase of man-power by ambiguous targets.
レ• There is a possibility that labor management may be inadequate, or rest days required by law may not be intentionally given, and limits of overtime hours may not
be upheld.
・ Overtime and long working hours, especially in Japan. Overwork of managers.

レ レ レ レ レ

レ

Wages

• Pressure of cost reduction from buyers may lead to non-compliance with minimum wages and living wages at supplires.
• Frequent revisions of minimum wages in some countries may lead to non-compliance with minimum wages.
• Proper rewards for overtime hours may not be paid due to poor compliance with laws/regulations and inadequate labour management.
• Equal pay for work of equal value may not be practiced.
• Fair compensation according to productivity may not be paid.

レ

レ レ レ レ レ

レ

Health and safety• Education on health and safety, disaster drills, first-aid drills, and handling instructions on toxic chemical substances may not be thoroughly conducted.
• Health hazard may occur due to insufficient efforts to improve a harmful working environment to workers’ health (loud noise, vibrations, illuminance, room
temperature, ventilation and exhaust).
• Risks of having pregnant women and young people engage in dangerous or injurious work.
• Workers may be exposed to danger due to aging buildings, illegal constructions, insufficient emergency exits and evacuation passages.
[Emerging concerns due to COVID-19]• Being forced to work remotely and loosing a work-life balance may lead to long-hour work and overwork.
• Employees in occupation that would be difficult to work from home have to commute to work or store, which may increase stress against infection risk andpsychological stress.

レ

レ レ レ レ レ

レ

Harassment• Workers may be exposed to physical, sexual, mental or verbal harassment and abuse.

レ

レ レ レ レ レレ

Disciplinary measures• Improper content of employment rules may cause improper disciplinary measures and treatments.
• Sufficient explanations, including language, may no be provided to foreign workers and foreign technical intern trainees.

レ

レ レ レ レ レレ

• Unequal recruitment/recruitment may be conducted based on disability, LGBTQ, BLM, religion, race, age and gender.
Recruitment, training,• Unequal treatment in opportunities for promotion, training and working conditions may be practiced based on disability, LGBTQ, BLM, religion, race, age andDiscrimination promotion, andgender.
employment• Unequal treatment in use may be practiced based on disability, LGBTQ, BLM, religion, race, age and gender.

レ

レ レ レ レ レ レ レ

Freedom of
association, right tocollective bargaining• The formation of labour unions and collective bargaining may be refused without any legitimate reason. Poor treatment or dismissal to union members may bepracticed.
• Workers may get fired due to participation in strikes.

レ

レ レ レ レ レレ

Effectiveness of thereporting point for
employees

・There is a risk that the grievance mechanism is not in place, or that it is in place but is not functioning (there is a risk that the reporting desk will become a mere
formality due to insufficient protection of whistleblowers, lack of awareness of the scope of the target group and the content of the report).
・ Inadequate multilingual support and inability to identify human rights abuses among vulnerable groups.
・ Lack of expertise in dealing with LGBTQ issues, which could lead to human rights abuses being left unattended or could cause secondary damage.

レ

レ レ レ レ レ

レWorking
Conditions
Own
employees/s
uppliers

Working
Conditions

Freedom of
association
Own
employees/s
uppliers

Concrete issues

Research
Developmen

Key human rights issues in consumer goods sector

Grievance
Mechanism

18Child labour

Minimum age• Children under the minimum age may be working without verification of their identify, or based on counterfeit identification.
• Children under the minimum age may be exposed to child labour due to poverty.
• Children may be exposed to child labour at raw material suppliers (plantations, quarries, etc.)• Children may be exposed to child labour including temporary staff and contract employees.

レ レ レ

レ

Forced orcompulsory
labourForced overtime
Human trafficking• Workers may be forced to work by violence, the threat of violence, financial issues, possession of passport, or any other form of coercion.
• Labor contracts (employment contracts) are not explicitly stated in the document, and workers may be forced to work under unfavorable working conditions.
• Vulnerable immigrants, refugees, technical interns may be exposed to forced labour.

レ レ レ

レ

• The risk of reputational damage due to human rights violations at upstream suppliers that have not been fully investigated, such as secondary suppliers andHuman rights
production contractors (residual risk of not grasping the actual situation)
violations at suppliers • There is a risk that human rights violations may be left unattended due to a lack of understanding of the actual situation by visiting and interviewing foreign
employees of suppliers, foreign technical interns, and training implementers (companies where interns work), which are socially vulnerable groups.

レ レ レ

レ

・There is a risk that the grievance mechanism is not in place, or that it is in place but is not functioning (there is a risk that the reporting desk will become a mere
formality due to insufficient protection of whistleblowers, lack of awareness of the scope of the target group and the content of the report).
・ Inadequate multilingual support and inability to identify human rights abuses among vulnerable groups.
・ Lack of expertise in dealing with LGBTQ issues, which could lead to human rights abuses being left unattended or could cause secondary damage.

レ レ レ

レ

・ Inadequate information sharing systems with primary and secondary suppliers may lead to human rights issues among supplier employees.

レ レ レ

レ

Suppliers Assessment

Grievance
Mechanism

Effectiveness of thereporting point for
employees

Mutualinformation
management
systemBusiness
partners

M&A
Business
partners
Local
residents

Human Rights
Assessment inAcquisition Audits
Human rights issues
at business partners
Health hazards indaily life
Infringement of living
space and time

Water stress

Planet /Society・Reputational risk due to inadequate human rights assessment of potential M&A targets during acquisition auditsレレ レ レ レ レ レ レ・Reputational risk when human rights issues become apparent within a business partner, whether upstream or downstream.

レ

レ レ レ レ レ レ レ・Air pollution, emissions of chemical substances, and wastewater caused by business operations that may be harmful to the health of local residents

ㇾ

レ レ レ

レ

ㇾ

レ レ レ

レ

レ

レ レ

レ

レ

レ レ レ

レ

・Risk of impact on land rights of indigenous peoples and local communities due to construction of new sites.
・Risk of impact on the daily lives of indigenous peoples and local communities through noise, air pollution, and traffic safety due to business operations• The risk of drought in the area due to the use of large amounts of water.
• Risk of health hazards to nearby residents and adverse effects on the local environment due to pollution of rivers by toxic chemicals.

Natural• Manufacturing products may cause an adverse impact on the protection of forest eco-systems.
Environment Terrestrial resources • Abandoning waste or illegally dumping it because of not selecting an appropriate contractor.
Marine resources• Manufacturing plastic products may cause an adverse impact on the protection of marine eco-systems.

レ

Bribery andCorruption

・Bribes may be demanded when obtaining permits and licenses.

レ

Relations with Relationship withgovernments countries with low
awareness of highhuman rights risks

・Reputational risk due to inadequate human rights assessment of potential M&A targets during acquisition audits

レ レ
レ レ レ レ レレ

レ レ レ レ レㇾInvestors

Disclosure of nonRelationshipfinancial information
with investors(human rights)

・Lack of adequate human rights due diligence and disclosure may lead to reputational riskレ

レ レ レ レ レ・The risk of inadequate measures to improve the quality and safety of products and to reduce risks to consumers.

レ

レ レ レ レ レ レ レ・Inadequate communication of correct information may lead to inappropriate use of products, to the detriment of both consumers and manufacturers.

レ

レ レ レ レ・Insufficient traceability of materials and products may cause disadvantages to both consumers and manufacturers.

レ

レ レ レ レ レ レ レ・The risk of insufficient resolution of consumer issues through innovation.

レレ

Privacy・There is a risk that personal information such as customer records, monitor data, surveillance cameras, purchasing behavior, privacy information
contained in cookies, and shipping addresses may be leaked, mismanaged, processed, transferred, or used inappropriately.

レ

レ レ レ レRespect for theindividual

・Advertising and sales activities may promote stereotypes of uniform beauty, gender, generation, etc.
・There is a risk that the use of AI, etc. may cause the provision of algorithms and information that may promote consumer misperceptions andstereotypes.

レ

レ レ レ

Health and safety

Relationship
Consumers with
Consumers

Children's health and ・Possibility of violating children's rights, interfering with their healthy development, or threatening their safety and health.
safety・There is a risk of not ensuring equal access to products that meet the needs of children according to their growth characteristics.
Harassment anddiscrimination

・Risk of evoking discrimination or bullying, and giving the impression that it is condoned or encouraged.
・Possibility of causing disadvantages in use due to differences in gender, age, race, religion, LGBTQ, disability, BLM, etc.

Sustainable society

・Risk of environmental impact due to disposal of plastic products, containers, and packaging.

Ethical advertisingand marketing
Monitoring andassessment
Assessment, redress, and grievance mechanisms©Caux Round Table Japan

レ レ レ
レ レ レ
レ

・Risk of human rights violations without prior confirmation that advertising marketing does not induce discrimination and harassment.
・Risk of recurrence of human rights violations due to advertising and marketing without applying the lessons learned to future business activities whensuch violations occur
・Failure to actively identify human rights violations through advertising and marketing (e.g., through SNS monitoring) and neglect/recurrence of humanrights violations
・Inadequate human rights assessment may lead to neglect of human rights risks in the supply chain, etc.
・Grievance mechanisms may not be in place, or may be in place but not functioning.

レ

レ レ レ

レ レ レ
レ レ レ
レ レ レ

レ

レ レ レ レ レ レ レ

20

4.4 Food Sector
Value Chain

Dispose

Sell

Consume

Produce

Transport

Concrete issues

Area of risk occurrence

ProcureResearch
Developme

Key human rights issues in food sector

・Long working hours may occur in all operations, including the company's own and subcontractor's manufacturing plants (business partners) andlogistics drivers.
・Restrictive labor may occur in order to meet deadlines during periods of concentrated production, such as seasonal products.

Working hours

global・Excessive work may occur due to the pressure to increase production under the influence of special temporary demand, and while telework has
increased due to changes in work styles, there is a risk of problems with working hour management (service overtime).
・The impact of COVID-19 may lead to a significant reduction in working hours and a decrease in wages.

レ レ レ レ レレ

レ レ レ レ レレ

レ レ レ レ レレ

レ レ レ レ レレ

レ レ レ レ レ

レ・Long working hours may affect employees' families.
・Shortage of personnel and increased workload due to spread of infection
・Chronic overtime due to staffing based on the assumption of overtime work
・The psychological burden on employees who have no choice but to come to work is so great that it may cause mental illness.
・Wage levels may not in line with local living standards.
・Wage levels may not match local living standards.
global・By effectively communicating corporate efforts globally in consideration of fair trade and other factors, companies can increase consumer confidence
and the value of the company, and pay workers a fair wage.
・The wages of foreign workers may not meet the minimum standard of living or that they do not have adequate housing.
・Ensure that wages are commensurate with working hours (compliance with laws and regulations in each country)

Wages

・Wages may not guaranteed due to factory shutdowns and lockdowns caused by COVID-19.
・Wage differences by employment status despite equal work content (due to COVID-19)
Workplaceconditions

・Wages are below the standard of living.
Japan・Unfairly low wages, suspension of employment, and other disadvantageous treatment of foreign workers and technical interns
・Unfavorable treatment such as unfairly low wages and suspension of employment is given to dispatched workers even among Japanese.
・Unreasonable deductions from wages (e.g., bathroom usage fees) that are not specified in advance and are not stated in payslip
・The health and safety of employees/workers may be threatened by hazardous work in product manufacturing (including procurement of raw materials)
and research and development processes, handling of chemical substances including agricultural chemicals, inadequate response to occupational
accidents, and overwork (also from the perspective of employees = physically challenged persons).

Core
operation /Supply chain

・In order to reduce risks, it is necessary to respond to various cultures and diversity, such as color barrier-free (consideration of color use), door
opening/closing direction, language indication for foreign workers, and use of assistive devices to cope with heavy muscle work.
・There is a need to respond to various cultural and diversity issues.
・Insufficient support for foreign workers to receive medical care.
Health and safety

global・Inadequate support for foreign workers in terms of food, clothing, and housing
・Inadequate support for foreign workers in terms of mental health・Insufficient prevention of infection in the workplace (not only COVID-19, but also other diseases and infectious diseases)
・Inadequate infection prevention measures for children, fear of parents abusing or neglecting their children due to COVID-19
・Failure to ensure that all employees receive a thorough medical checkup, and lack of corporate action based on the results・Insufficient physical space for employees to relax.
・Inadequate physical space to provide mental relaxation
・The method complianceof relieving withthe physicalburden peculiar
to remote work
is left up tooffenders
the individual
・Insufficientthe implementationof punishments
for harassment

Disciplinary action

Discrimination

Employment

globalglobal・Inadequate awareness of laws, regulations and employment rules within the company, and inadequate implementation of appropriate punishment
・There is a risk of discrimination in hiring based on race, gender, religion, region, LGBTQ, SOGI, disability, ethnicity, creed, medical history (HIV,etc.), caregiving, fertility, childcare, etc.
・There is a risk that debts to sending institutions, such as recruitment fees and payments to foreign language institutions, put workers in effect debt
work. There is also the problem of domestic companies hiring without being aware of the background.
・The risk of working under inappropriate conditions, because working conditions are not presented in a language that the foreign worker understands at
the time of hiring.

21

・Workers (including foreign employees, people with disabilities, and temporary employees) may receive inadequate safety training and unequal
treatment.
・Workers may be forced into precarious forms of employment.
・Discrimination based on employment status (ex,lack of training opportunities, not being allowed to participate in meetings)
Discrimination

During work

globalレ レ レ レ レ

レ・Discrimination, invasion of privacy, and restrictions on work due to the presence or absence of COVID-19 vaccination history
・There is a need for multilingual and multi-religious manuals and consideration for the working environment, and there is a risk of discrimination due todifferences in nationality and religion.
レ レ レ レ レ・Discrimination and harassment against foreign technical interns by host companies.

レ・Harassment (sexual harassment/power harassment/maternal harassment/SOGI harassment, etc.) from/to business partners
・Insufficient working environment for people with disabilities
・Lack of LGBTQ-friendly facilities (toilets, changing rooms, etc.)
・Incidence of invisible harassment due to increased telework

During work

Japan・Risk of discrimination in evaluation and treatment based on race, gender, religion, region, LGBTQ, SOGI, disability, ethnicity, creed, medical history(HIV, etc.), nursing care, fertility treatment, childcare.
・It is necessary to support foreign workers and their families in their daily lives and prevent them from being isolated in local communities.
・Appropriate promotion and salary increases for foreign workers according to their evaluations, equally and fairly including Japanese workers.
Discrimination

global・The decrease in demand for COVID-19 has led to unfair dismissal of those in vulnerable positions under labor contracts, such as non-regular
employees.
・Forced high-risk work to those in weaker labor positions.
・Wages are not guaranteed in the event of factory shutdown due to COVID-19 disasters.

Assessment, Treatment,
Dismissal

・Discrepancies between the content of contracts and the treatment of employees (including technical interns)
・The number of female managers is low. Barrier-free accessibility is lagging. The job satisfaction of people with disabilities may be undermining.

Japanレ レ レ レ レレ

レ レ レ レ レレ

レ レ レ レ レレ

レ レ レ レレ・Appropriate implementation of promotion and salary increase for foreign technical interns according to their evaluation. Lack of communication
creates isolation, and there is no evaluation or treatment that makes work worthwhile.
・Appropriate evaluation is not conducted due to seniority-based evaluation.
・There is a difference in the treatment of new graduates and mid-career hires.
・Lack of consideration for male employees when expanding the system for female employees.

Core
operation /Supply chain

・Lack of consideration for male employees and others when expanding the system for female employees
・Unfair evaluation and treatment (evaluation based on personal likes/dislikes, regardless of results)
・The risk of child labor under the minimum working age, and the risk of identity theft
・Children may lose their right to education and suffer physical and mental damage.
Child labour(elementary
students)

global・Increase in child labor due to the increase in the number of poor people caused by the widening gap in the COVID-19
・Need for check whether there is child labor in upstream suppliers (secondary and tertiary), especially in developing countries.
・Child labor in family business environment

Employment
under 18 years ofage

・Late night work for child celebrities in commercial shoots in Japan
・Working at night, engaging in hazardous labor, and forging IDs
global・The possibility of forced labor for migrant workers
・The risk of inhumane treatment of illegal immigrants.
globalForced orcompulsory
labour・Slave labor in agriculture, forestry, and fishery procurement processes (working environment at fishery operation sites)
・The possibility of being forced to work long hours due to excessive demands from business partners.
・The presence or absence of a labor contract and preparation of the contract in the native language
・Check whether there is overwork at upstream suppliers (secondary and tertiary), especially in developing countries.
・Exploitation of technical trainees (e.g., taking away their passports), engaging in hazardous labor, etc.

Japan・Slave labor in agriculture, forestry, and fisheries procurement processes (working environment at domestic livestock farming sites)
・Forced savings at the time of contracting (the employer keeps the bank book and seal)・Support for technical intern trainees who have difficulty returning home in COVID-19

Freedom of
association andcollective

Conflict with local law

global・Freedom of association and the right to collective bargaining (in accordance with international law) may not be ensured in countries where unions are
not permitted, or where they are permitted but not applied in practice.
・It is necessary to have a customer service center that can be used as a point of remedy in the value chain. It is also necessary to have a customer service

レ

レ レ レ レレレ

レ レ レ レ レ レ

Access to
RemedyglobalProtection ofPrivacyJapan・Appropriate management of personal information

レ レ レ レ レ レ

globalLarge-scale agriculture, fishing, and forestry industries from which raw materials are sourced may cause communities to face declines in production andfish catches.
Impacts on the livelihoods and traditions of local and indigenous peoples, local ecosystems (e.g., air and soil pollution, pollution from waste and plastic
debris), and access to water・Loss of food self-sufficiency due to monoculture (conversion to cash crops)レレ レ レ レ レ レ

レ

レ レ レ レ レ レ

center for consumers, and multilingual and 24-hour support for printing.
・Itis necessary
a grievancemechanism
thatofisdata
openfromto theoutside, notjust anforinternal
reporting system.
・Thereis a risk toof establish
invasion ofprivacy, suchas the use
surveillancecamerasfood defense.

Use of natural resources

・Development, design, distribution, and marketing of products with high environmental impact (high electricity consumption, difficult to recycle)
Resources

・The development, design, distribution, and marketing of products with a high environmental impact (high electricity consumption, difficulty inrecycling) may lead to excessive extraction of resources (upstream supply chain).
・The generation of plastic waste due to containers and packaging that are difficult for consumers to sort and recycle.
・Decrease in crop yields due to global warming
Climate change

globalCommunity・Natural disasters caused by climate change affects the living area.
・Business shutdown due to drought may affect employment
・Negative impact on local community lifelines due to pollution (noise, vibration, odor, waste, etc.) caused by construction and operation

Impact oncommunity

global・Violation of access to shelter in case of disasteroversea

・The rights of local residents and indigenous groups arising from the enclosure of land may be ignored when constructing fields and other arable land,aquaculture ponds, factories and manufacturing facilities, waste disposal sites, etc.

Investment tocommunity

global・Withdrawal or cessation of business by local factories or projects may lead to a decline in employment in the surrounding areas and a decline in thelocal economy.

Access to
remedyglobalAccess to land

レ レ レ レ レ レ・Poverty triggered by price hikes
Title to land

・It is necessary to consider not only the employee's time, but also the worker's home environment and family life.

レ レレ

レ レ レ レ レ レ レ
レ レ レ レ レ レ レ

Relations withsociety andgovernments

・ In establishing factories and gaining marketing rights (marketing license), companies may be demanded for bribes to acquire lands and permissions.
Bribery and corruption

global

レ レ

レ

レ レ

レ

レ レ

レ レ

レ

・Human rights abuses such as human trafficking due to collusion between the sending organization and the government of the country
・Entering, operating, or procuring goods and services in countries where laws and regulations concerning occupational safety are not in place

Society and Relations withgovernment governments andcompanies withlow awareness ofhuman rights

global・Risk of complicity in human rights abuses when conducting business in countries or regions where there is a gap between local laws and customs andinternational standards.
・In countries with good control over information management, even third-party audits may be influenced by the authorities and may be far from theactual situation. Binding by contract may also be meaningless.
・Inappropriate labeling (e.g., ingredients, misidentification of good quality, etc.) may cause health problems or religious problems for consumers.

Provision ofproper information

globalHealth andsafetyglobalQuality control

・Inappropriate marketing may lead consumers (especially minors and the elderly) to misguided eating behavior (occurrence of health problems due toexcessive intake of specific ingredients)
・Possibility of health hazards due to failure to warn
・Inadequate quality control (storage conditions, hygiene control, process control, transportation control, etc.) and hygiene education and training for
employees, which may be harmful to the health of consumers
・Inadequate countermeasures (food defense) against intentional quality problems

レ

レ レ レ レ レ レ

・Insufficient measures to prevent intentional quality problems (food defense)
Jpan

・Excessive quality control (e.g., zero shortages) may result in a large amount of food loss.

レ

レ レ レ レ レレ

レ レ レ レ レ レ・Failure to properly dispose of waste (food residues, waste plastics, etc.) may result in environmental degradation.
ConsumerPrivacy
Protection

・Occurrence of child labor and forced labor in waste treatment operations
Responsible disposal

global・Food loss due to lack of awareness among consumers
・Possibility of expired food being exported to third countries and causing health hazards

Appropriate provision of
information

Appropriate collection of
information

Global・Inappropriate advertising (TV, newspapers, magazines, Internet, billboards, etc.), campaigns (title, selection of prizes, target audience, etc.), productpackaging, etc. that may encourage discrimination
・Possibility of violating children's rights, instilling stereotypes, or reproducing bias

レ レ レ

レ レ

global・Lack of consideration for human rights when collecting marketing information, such as questionnaires, gives the impression of discrimination against
minorities.

レ レ レ

レ レ

Global・Leakage, storage management, information processing management, and information transfer management of personal information obtained throughconsumer campaigns, mail-order sales, and membership registration (also considering contractors)

Discrimination

Protection ofPrivacyレ レ レ24

4.5 Pharmaceutical Sector
Value Chain

Health and safety

Disciplinary actions
Excessive monitoring
Employment

Discrimination

During work

Redundancy and dismissal©Caux Round Table Japan

・Long working hours may occur due to concentration of clinical trial on developed products,
concentration of production due to approval of new products, increased production due to pandemic
occurrence, and product recall.
レ レ レ レ レ レ・Long working hours may occur due to excessive customer support.
・Long working hours may occur due to insufficient labor management based on labor laws of eachcountry / region.
・Wage standards may not conform to living standards in the local area.
・Proper wages for overtime work may not be paid due to non-compliance with labor laws of eachcountry / region.
レ レ レ レ レ レ・There may be unfair treatment (assessment, low wages) for non-permanent employees (including
foreign workers) and foreign technical intern trainees
・Employees' health and safety may be harmed due to dangerous work at research and development
sites, handling of animals, cells, compounds or pharmaceuticals, and insufficient occupational safety
and health (defective protective equipment, insufficient education, etc.)
・ Incomplete SDS may jeopardize health and safety of employees and transport workers.
レ レ レ レ レ レ・ Description of instructions, signs and others may not be correctly understood by all the workers,
which may jeopardize health and safety.
・Health and mental damage may occur due to long working hours and social isolation.
・During the clinical development stage of pharmaceutical production, the health and safety ofsubjects may not be managed properly due to poor ethics of contract research organizations.
レ
Moreover, improper involvement in clinical data may occur.
・Unfair disciplinary actions may be executed by companies.
・Unfair disciplinary actions may be executed due to the fact that no whistle-blower system has been レ レ レ レ レ レ
established.
・Excessive monitoring of employees and control of their working conditions.
レ レ レ レ レ レ・Discrimination may occur based on characteristic or attribute such as birthplace, nationality, sex,
レ レ レ レ レ レ
SOGI, age, race, belief, religion, and presence of disease.
・Harassment (sexual harassment, power harassment, maternity harassment, SOGI harassment)
・Discrimination in employment form may occur based on gender, birthplace, nationality, age, race,
レ レ レ レ レ レ
religion, SOGI, presence of disease.
・Unstable employment form may be forced.
・Organized dismissal may occur based on race, sex, SOGI, age, belief, religion, presence of disease.
レ レ レ レ レ レ・Unfair pressure may be given based on differences in employment form.

DisposeHealth and safetyCore
operation/
Supply chain

ProcureWorking
conditions

ConsumeSell
Transport
Produce

Wage

Develop

Working hours

Concrete Issues

Research

Key human rights issues in pharmaceutical sector

レ

レ

レ

レ

レ

レ

レ
25

Value Chain

Dispose

ProcureConsumeSell
Transport
Produce

DevelopCore
operation/
Supply chain

Concrete Issues

Research

Key human rights issues in pharmaceutical sector

Child labour

Legal compliance toemployment age
Employment anddangerous work under 18
years of age

・Child labor under the minimum age of each country may occur.
・The following problems may arise if young workers under the age of 18 are hired.
- Loss of educational opportunities- Exploitation- Mental and physical damage

レ レ レ レ レ レ

レForced orcompulsory
labourForced or compulsory
labour・Immigrants, refugees, non-permanent workers including foreign workers, foreign technical interntrainees may be exposed to forced labour by being taken disadvantage of their vulnerable positions.

レ レ レ レ レ レ

レ

レ レ レ レ レ レ

レ

レ レ レ レ レ レ

レ

レ レ レ レ レ レ

レ・ Participation in labor unions and similar organizations may be obstructed due to retaliation,
Freedom of association andintimidation or harassment from business people. The opportunity for labor-management consultationcollective bargaining
is not substantially secured.
・ Freedom of association and collective bargaining rights (in accordance with international law) may
Measures not permitted by
not be ensured in countries where trade unions and similar organizations are not recognized ornot
domestic law
applied in practice even if recognized.
Resources
Use of natural resources
・Bio-piracy may occur in sourcing natural compounds that are essential for drug development.
・The environment may be polluted by a leakage of animals, cells, pharmaceutical products andEnvironmental
chemical compounds to nature.
impact of
Health and safety
・The health of residents may be harmed due to the environmental pollution. And, the environmental
Community pharmaceuticalpollution may spread to animals and plants that residents live on.
products
・ Abuse of water and land in factories and local construction sites.
・ Forced eviction due to new construction of factories, etc.
Local residence Right of residence
・ Effects on local communities due to inadequate disaster prevention measures at factories, offices,
etc.
Operations in pre・Products may not be provided to people in needed due to unstable social situations.
and post conflict Product supply risk
countries
Entry post
Product supply risk
・Products may not be provided to people in needed due to unstable social situations.
conflict・Illegal acts may be conducted for authorities (central governments and local governments) to make
Relations with authorities
Relations witha smooth approval for manufacturing and selling.
Bribery and
Relations with medical
governments
corruption
・Falsified data on research, clinical trials and prescription. Illegal acts may be conducted to request
persons (including
to create data that gives advantage in sales and promotion.
researchers)・Company’s support for national / local public health measures may be used for propaganda by
Governments
Relations with publicauthorities with poor human rights awareness, and for individuals with political beliefs.
with poor humanpolicies
・Improper treatments may be given due to insufficient governmental counter measures againstrights awarenesscounterfeit medicines.
©Caux Round Table Japan
Freedom of
association andcollective
bargaining

レ

レ レ

レ レ

レ レ

レ レ レ

レ

レ レ レ レ レ レ レ レ
レ レ レ レ レ レ レ レ
レ

レ レ

レ レ レ

レ

レ レ レ レ レ レValue Chain

Health and safety

Response to rare diseases

Public health

Actions to pandemic

Others

Personal
information©Caux Round Table Japan

Management of healthinformation of individuals

レ

DisposeRelations withpatients

・Appropriate remedy may not be provided due to insufficient or undeveloped systems.

ProcureConsumers

Relationship with patientsand study subjects
Employee and Supply

ConsumeSell
Transport
Produce

Grievance

Develop

Access to
RemedyConcrete Issues

Research

Key human rights issues in pharmaceutical sector

レ・Appropriate remedy may not be provided due to insufficient or undeveloped systems.
レ レ レ レ レ レ
レ・Inadequate efforts to combat counterfeit medicines.
レ レ
レ レ
・Risk of health hazards due to abuse and misuse.
レレ・Risk of health hazards due to delayed reporting of adverse drug reactions.
レ レ・Injuries due to product defects or accidents during handling (including doctors, nurses,
レ レ・Risk of using investigational or therapeutic drugs on patients without sufficient prior explanation.
レ
レ レ
・Risk of health damage to patients due to side effects of medication or incorrect medication.
レ・Damage to the environment and human health due to inappropriate disposal of unused medicines
and used medicines by patients (in the U.S. and other countries, flushing medicines down the toilet isレ レ
considered a problem).
・ Risk of taking inappropriate prescription and treatment due to exaggerated PR of productレ レ・Risk of not being able to provide medicines in a timely and appropriate manner due to depopulationレレ
レ レ
of the region and reduced access to healthcare caused by changes in the supply-demand balance.
・ Risk that the drug are not approved and marketed in the country in question, despite clinical trials,
レ レ
and are not reach patients.
・ Risk of being forced to take vaccinations, and the risk of human rights violations by not taking
レ レ レ レ レ レ レ レ
vaccinations.
・Medicines may not be approved and sold to patients in a certain country despite conducting clinicalレレ
trials.
・New pandemic virus may endanger lives of people and deteriorate the public health ofレ レ レ レ レ レ レ・Social unrest and security deterioration caused by pandemic may hinder business activities andレ レ レ レmake it difficult for drugs to be supplied.
・Production of therapeutic products may be delayed due to manufacturing efficiency when
レ レ レ レpandemics occur.
・Inappropriate use of antimicrobial agents may lead to an increase in infections caused by AMR(Antimicrobial Resistance) bacteria that are ineffective against existing antimicrobial agents, leading
レ レ
to deterioration of public health and endangering human life.
・The risk that personal information, including personal health records (including genetic
information), may be leaked or misused to identify individuals or violate their privacy.
レ レ レ レ レ レ
レ・There is a risk that personal information obtained in the course of business by healthcare
professionals, patients, and employees may be leaked to a scope beyond the permission of the27

4.6 Logistics and Transport Sector
Key value chains in logistics
Create: research, development Buy: capital investment, procurement of ships, vehicles, aircrafts, and fuel Sell: promotion, sales
Transport: operation (storage, logistics, transportation) Dispose: disposal, recycle
Value Chain
DisposeSell

Transport

Workplaceconditions

Buy

Core
operation/
Supplychain

Concrete issues

CreateKey human rights issues in logistics and transport
sectorWorking hours

Logistics and transport industries are a labour-intensive industry. Though it is anticipated that mechanization will be further advanced in the future, laborious work ofhuman beings will still remain.
・ Due to the volume of orders, long-term employment can not be made and employees may be exposed to unstable employment forms.
・ Long working hours at sites and subcontracting companies may occur, especially in busy seasons.
・ Long working hours may occur due to work at late night and early morning to cope with time difference with other countries.
・ Because this industry has a high public nature, unexpected long working hours may occur when disasters occur.
・ Working remotely may make it difficult to maintain work-life balance・ From the aspect of having a certain public interest, overwork and long working hours may occur due to the demand for nesting in the Covid-19 and traffic
restrictions during the Olympics.

レ レ レ レ レ

Low wages

・ Low wages maynot meet the living standard for workers and their families.
・ Working hours may get longer due to expansion of mail-order markets, wages per unit of time may decrease.
・ The pandemic affected distribution volume and overal business volume, resulting in failure to obtain stable income.
・ If performance increases under Covid-19, employees may lose motivation because their wages are not commensurate with their efforts and they are not rewarded
with special compensation, etc.

レ レ レ レ レ

At the site of the logistics and transport industry, there is always dangerous work such as loading and unloading heavy objects, transportation, the use of large
machinery/vehicles, and working in proximity to trains, aircrafts and ships. It is important to make daily efforts to prevent risks from occurring, in order to keep
workplaces safe.
・ Occupational accidents may occur when handling heavy machinery or heavy cargoes at shipping vessels, terminals, airplanes and airports.
・ Securing workers' safety in areas of piracy occurrence and regions with geopolitical risks, such as the Straits of Holmes.

[shipping business]
・ Due to the highly public nature of the business, there is a risk of secondary damage from industrial accidents in the event of a disaster.
Health and safety ・ Risk of mental health problems due to long working hours

レ レ レ レ・ Threats to health and safety, child labor and forced labor in the company's supply chain (in addition to employees)
・ Risk of increased mental health problems due to telecommuting (signs are not easily visible to others)
・ The risk of infection due to inadequate countermeasures against infectious diseases, including Covid-19, in workplaces where telecommuting is difficult.
・ There is a risk of health hazards due to a shortage of fresh food stock if the ship is unexpectedly delayed for a long time due to the Covid-19 or if the voyage
continues.
・ As passenger demand slows due to the corona disaster and the number of employees being transferred outside the company expands as a measure to maintainemployment, changes in the working environment could lead to mental health problems among employees and a decline in their motivation.
28

Employment
Environment andRequirement

In anticipation of the shortage of human resources due to the declining population, in recent years, human resources and forms of employment have been diversified
such as employment of temporary staff, senior employees, foreign employees, the disabled, full employment of contract employees, and implementation of short workand teleworking.
・ There may be unequal treatment in working conditions, training and promotion as various types of human resources are employed under various types of
employment.
・ Foreigners may be treated unfairly in employment and treatment. (They are more likely to experience such unequal treatments under these uncertain times)
・ There may be uniform treatment to workers without due concern for diversity (SOGI).
・ Discrimination against people who tested positive for COVID-19.
・ Employment environment and treatment of senior workers (through employment extension and retirement age extension systems)(problems with senior drivers)
・ Prejudice and discrimination against unvaccinated employees may occur.

Employment
Foreign Workers Environment andConditions(Domestic)
・There is a risk that foreign nationals employed under the technical internship system will be subjected to unfair treatment (forced long working hours, unpaid wages,
unfair deductions from salaries, etc.).
・Discrimination in hiring foreign technical interns based on whether or not they have been vaccinated (e.g., forcing them to be vaccinated in the workplace, giving
priority to those who have been vaccinated).
(Overseas)
・There is a risk of human rights abuses such as child labor and forced labor occurring at business partners in overseas supply chains.
・There is a risk of non-payment of wages for work performed prior to regular employment.

レレ

Use of natural
resources

In addition to fossil fuels, diversification of energy sources makes a progress including non-conventional natural gas resources and power generation by naturalenergy.
・ There may be environmental pollution such as air pollution, water quality deterioration and destruction of habitats at suppliers of fuel oils.[B]・ Air pollution may be caused by gas discharged from many transportation vehicles passing through the transportation route. [T]・ Oil spill accidents may cause marine environmental destruction.
・ Environmental destruction such as soil contamination, water quality degradation and air pollution may occur due to construction and use of transportation
infrastructure such as a factory, distribution center, road, railway, port and airport.
・ The procurement and use of fossil fuels, and an inefficient use of resources may cause climate change and give a negative impact on people’s lives.
・ Potential for contributing to sustainable development by efficient use of natural resources (positive impact)・ In the procurement stage of ingredients necessary for operations, human rights may be threatened in water and sanitation in the area of procurement. [Aircraft]
・ The use of SAF fuel (aviation biofuel), which is positioned as a renewable alternative aviation fuel, may result in passengers having to bear the relatively high costof such fuel.
・ Measures to reduce emissions of sulfur oxides, nitrogen oxides, etc. by switching fuels or installing scrubbers on ships in operation in accordance with Sox and Nox
regulations [Shipping].

レレ

Use ofinfrastructure

・ Vehicles, ships, and aircrafts operated by companies may cause damage to the roads, harbors and airports where they operate.
・ Disasters may damage infrastructure and disrupt logistics.
・ Efforts to promptly recover infrastructure such as roads and logistic centers after disasters, and maintain basic infrastructure for local daily life (positive impact).
・ In addition to the shortage of human resources in the domestic labor market, there is a risk that cargo stopped due to the dockers' strike may affect customers or the
supply chain.
・ Airport handling operations for foreign flights, which are expected to increase further in the future, will have to be handled in a short period of time due to thedemand from the government. In addition to the shortage of human resources in the domestic labor market, if it becomes difficult to hire foreign workers, it may
become difficult to maintain air traffic operations [Aviation industry].

レ レレ・ Accidents may cause an adverse effect on health and safety of customers, citizens, and other stakeholders.
・ There may be exercise of excessive use of force by national navies dispatched to the pirate occurrence area and regions with geopolitical risks or by armed guards
hired by a company to protect logistic centers with poor security.
・ Armed security guards on board may exercise excessive force against seafarers, crewmembers, and pirates (Shipping industry).
・ Navy and pirates may violate the rights of local residents such as fishermen (Shipping industry).
・ Risk of contamination of foreign substances in foods and products passed on to general consumers at food factories and food warehouses (Food Defense [Food
Warehousing and Food Logistics])

レ

レ

DiscriminationCore
operation/
Supplychain

Resources

Community

Security

レ レ レ レ レ

・ Possibility to contribute to neighbors by cooperating in the operation of emergency relief supplies sites and transportation of emergency relief supplies and support
supplies to evacuation centers during occurrence of disasters. (positive impact)
・ Possibility to contribute to industrial revitalization, tourism promotion, job creation, culture promotion and maintenance of the local livelihood base by connecting
people and goods and by long-term commitment. (positive impact)

Community
Community
Investment

Customers

Society and Relations withgovernment governments

Illegal dealing,
Trafficking
OthersTransportation

・ Unnecessary stresses may be caused when various customers use public transportation [Airline]
・ Risk of leakage of personal information / privacy customers provide to us
・ Customers' risk of getting infected with the coronavirus
・ The introduction of the Vaccine Passport may restrict services.

Bribery andcorruption

・ Potential risk of being involved in bribery and corruption for example by way of a facilitation payment. [T]・ Potential risk of being involved in collusion, bribery and corruption when negotiating capital investment and route development with governments andadministrations. [C/B]

・ Potential risk of being directly involved in transportation of victims of human trafficking.
Human trafficking ・ Potential risk of transporting banned goods.
・ Risk of unintentional and indirect involvement in transport of persons involved in child prostitution and organ sales. [Airline]

レ

レ レ

レ レ

レ レ

レ

レ レ レ

・ Technological evolution (AI, IoT, etc.) may cause unforeseen privacy / human rights issues, and cyber terrorism.
Digitization

・ Digital divide (Who can and can not benefit from digitalization)

レ レ レ レ レ・ Introduction of AI in the transportation flow, elimination of manpower shortage and human error by IT, and possible reduction of crew.
Access to
remedy©Caux Round Table Japan・ Remedy may not be provided if human rights issues in general occur

レ レ レ レ レ
30

Apparel (clothing)
Creation: Research, development, design, and design
Purchase: Construction of facilities, procurement (fabrics, sub-materials)
Manufacturing: Production, manufacturing (sewing)Transportation: Storage, logistics
Sales: Sales, marketing, retailing
Use: Consumption, utilization, maintenance, packaging (wrapping)
Disposal: Disposal, recycling, waste plastic
Value chain

Wages
Business / Treatment in
Supply Chain the workplace

Health and Safety

Creation

Working hours

Concrete issues

DiscardUse
Sales
Transport
Manufact
uring
Purchase

Key human rights issues in apparel sector

・There is a risk of long working hours due to (a) a production plan that incorporates overtime work or a situation where thesewing site absorbs delays in the upstream plan, (b) a wage level that does not match the local standard of living, (c) a piece-ratewage system, or (d) factory reasons such as a large volume of defective or reworked products.
・Due to inappropriate work management, there is a risk that the legally stipulated days off will not be granted or that overtime
limits will not be observed.
レ レ レ レ レ・Labor standards violations may be occurring due to lack of understanding of technical intern trainees' actual work conditions(Japan)・The possibility of insufficient support for technical intern trainees due to lack of support in the local language (Japan)
・Overtime work, overwork by managers, and overwork by deemed managers (Japan)
・Overwork due to telework (Japan)
・Pressure from buyers to reduce costs may result in non-compliance with the minimum wage.
・ In some countries, the minimum wage is revised frequently, and there is a risk that the minimum wage will not be complied
with.
・Inadequate compliance with laws and regulations or inadequate work management that may result in inappropriate
レ レ レ レ レ
compensation for overtime work
・Risk of not being paid fair remuneration based on productivity
・The issue of equal pay for equal work by regular and irregular workers (salesperson)
・There is a risk that safety and health training, including disaster prevention training, first aid training, and handling of
hazardous chemicals, will not be thoroughly implemented.
・ There is a risk that health hazards may occur due to lack of measures to deal with work environments that are harmful to health(noise, vibration, illumination, room temperature, ventilation, local exhaust, etc.).
・Risk of causing pregnant women, young women, and others to engage in dangerous or harmful work
・Personal protective equipment (PPE) is not provided in dangerous or hazardous workplaces, and appropriate education andtraining is not provided, which may cause harm to workers.
・Machinery and equipment that are required to be inspected are not inspected, and there is a risk of harm to workers.
レ レ レ レ レ・Risk of harm to workers due to inadequate safety and protective devices in machinery and equipment.
・Aging buildings, illegal construction, emergency exits, evacuation routes, etc. are in illegal conditions and may cause harm toworkers.
・Risk of accidents or health hazards due to improper storage of chemical substances
・Risk of mental health problems (risk of mental health problems) such as anxiety and stress about infection among production
workers who cannot telework (Japan)
・ Leakage of personal information may cause psychological problems due to invasion of privacy.

31

・Risk of unfair discipline or treatment due to inappropriate work rules
・The risk of unfair contracts being entered into with non-regular employees without proper explanation (e.g. unfair dismissal)

レ レ レ レ レ

When hired
Discrimination At Work
Diversity・Possibility of unequal recruitment and hiring with restrictions on nationality, race, religion, gender and age.
・Possibility of unequal treatment in terms of working conditions, training and promotion opportunities because of gender andage (disrespect for women).
・Possibility of harassment with disregard for diversity
・ Possibility of unequal treatment for LGBTQ people
・Risk of discrimination in recruitment due to disability or illness
・ Risk of privacy breaches and discrimination in recruitment due to personal data leaks

レ レ レ レ レChild Labour

Minimum age

・The risk of child labour being carried out under the minimum age without checking identification or on the basis of forged
identification.
・There is a risk that children may be working in supply chains (e.g. subcontracting) in developing countries and that brokers
may be recruiting children.

レ レ レ レ レ

Forced overtime
Human trafficking

・There is a risk of being forced to engage in compulsory overtime work.
・Workers may be forced to work under working conditions that they have not agreed to because the labour contract(employment contract) is not clearly stated in writing.
・In Japan, there is a risk of restricting the free movement of technical intern trainees by depositing their passports, alien
レ レ レ レregistration cards and residence cards and by compulsory savings.
・There is a risk that migrants and refugees are forced into forced labour overseas, taking advantage of their vulnerable position(especially in Tier 2 and above, where the reality of forced labour may be hidden).

Disciplinary measures

Business /Supply Chain

ForcedLabourBusiness /Freedom ofSupply Chain association

・Refusal to form a trade union, refusal to bargain collectively without just cause, detrimental treatment of union members or
threat of dismissal
Freedom of association
・The threat of dismissal on the grounds of strike action.
and collective
・ There is a risk that labour-management consultations and collective bargaining are not sufficiently institutionalised andbargaining
managed (i.e. have become a formality). In addition, although the right to collective bargaining is recognised, there is a risk thatnegotiations are not actually taking place (particularly at overseas production plants).
・Efficient use of energy and removal of CO2 (climate change)
・ CO2 emissions due to excessive electricity consumption in production plants and sales outlets
・ The problem of CO2 emissions from unaccountable (unplanned) mass production and mass disposal

レ レ レ レ レ レ レ・The use of large quantities of water and the pollution of rivers by toxic chemicals in tanneries, dyeing and plating plants, etc.,
may have a negative impact on the health of nearby residents and on the local environment.

レ レ レ・Large amounts of water used in the production of raw materials (cotton, cattle, natural rubber) leading to water depletion andpossible water pollution.

レ レ

Biodiversity
conservation

・The production of wooden products (paper materials) may have a negative impact on the conservation of forest ecosystems.
・Microplastics generated by washing synthetic fabric products may lead to marine pollution.
・Materials sourced through untraceable routes may lead to environmental and soil pollution (e.g. organic cotton, wool).

レ レ レ レ レ レ レ

Depletion of natural
resources

・Depletion of natural resources with limits, such as oil and gas
・Innovative and efficient product design

レ レ レ レ レ レ レ・Wasteful product design can lead to the generation of large amounts of waste during fabric cutting, which can lead to thedepletion of limited resources.

レ レ レ・Risk of illegal dumping of waste due to neglect or failure to use appropriate contractors.
・Failure to reduce waste could have a negative impact on the environment.

レ レ レ レ レ レ レ

Global warming

Water stressCommunity

Resources

レ レ レ レ レ

Waste management

Indigenous rights
Community
Discrimination Diversity

ConsumerissuesRelationships
Health and Safetywithconsumers

・Threats to the livelihoods of people living in countries where pulp is sourced (e.g. evictions, violence)・In developing countries where laws and regulations are not yet in place, though there is compliance with local laws, there is arisk of causing local environmental pollution and health hazards to the population.

レ レ レ レ・The risk of discrimination (unconscious bias/LGBTQ etc.) through inappropriate expressions in advertising and other media.

レ レ レ レ・Changing consumer attitudes and fostering the Ethical Market, a positive way to promote Fairtrade
・ The system of circular economy (e.g. recyclable materials) has not been established due to insufficient efforts to raise
consumer awareness of recycling.

レ レ レ レ レ レ レ・Improving the quality of products and their safety and reducing the risks to consumers
・Health hazards due to inclusion of hazardous substances in final products
・Health risks to consumers due to battery failure, wearable devices, fires in the use of new materials, etc.

レ レ レ レ レ レ レ・Improved traceability of materials and products

レ レ レ レ レ レ・Lack of exercise and its effects

レ レ レ レ レ レ・Risk of invasion of privacy and discrimination due to personal data leakage

レ レ レ レ レ

Consideration with diversity
・Insufficient consideration of diverse (LGBTQ) consumers©Caux Round Table Japanレ レ
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