NYK Group - Respect for Human Rights in Automotive Logistics
In a human rights risk assessment of the NYK Group, the working environment of workers in the automotivelogistics business was identified as a salient human rights issue. In 2022, interviews of workers (includingsupplier partners' workers) of NYK India Private Limited (NYK India), which is expanding its car logistics
business across India, were conducted to verify the status of respect for human rights.
Interviews of the workers were conducted in Hindi, which is understood by all workers, by a local thirdparty partner of CRT Japan.
Workers in the automotive logistics business are involved in a wide range of operations, and work is mainlyclassified into four types: plant compound management, terminal services, value-added services, and inlandtransportation. The interviews on this occasion targeted 25 workers (all male) engaged in plant compound
management (drivers) and value-added services (vehicle cleaners) in Mumbai and Delhi. The workers, whowere divided into teams of five, were asked to answer questions concerning 13 human rights issues.
All of the over 2,000 workers employed by NYK India through supplier partners are male. The majority of
the workers are from within the state, and very few qualify as migrant workers. The recruitment and hiring,
the signing of contracts, and the payment of wages of workers are all left to the supplier partners. NYK
India, together with supplier partners, is responsible for determining working conditions and the wage
structure of workers, managing workers' working hours, implementing occupational health and safety
procedures, and conducting worker training.
The interviews confirmed that there were cases where no employment contract existed between supplierpartners and their workers and that some workers did not know the details of their employment contract
and pay slips. In light of these findings, as of September 2023, dual language (English with local language)appointment letters had been concluded for all workers in accordance with Indian law, and briefing sessions
on the appointment terms and conditions had already been held at supplier partners together with NYK
India for 100% of the workers at all locations.
NYK India has its own mechanism known as Samvaad (which means "dialogue" in Hindi) that allows
workers to voice their opinions and concerns (a form of grievance desk). Management at each NYK India
location regularly holds Samvaad (dialogue) sessions where they listen to what employees, including
supplier partners' workers, have to say. This mechanism aims to identify issues perceived by workers andtheir expectations of the company and to create a comfortable work environment, bearing in mind theiropinions and concerns. Interviews with workers revealed that while all interviewees were familiar withSamvaad, ⅰ) the company's and supplier partners procedures for responding to requests made by workers
and the status of their handling were unclear, and ⅱ) there were expectations for improvement in issues

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such as the lack of communication between workers and management. In efforts to ensure the effectivenessof Samvaad considering these findings, NYK India decided to centrally manage the content of requests andother matters raised at all business locations across pan India and clarify the status of responses between
complainants and the company's management. In addition, important matters are also to be reported toNYK headquarters. These arrangements have been effective since April 2023. As of August 2023, 90% ofcomplaints that had been filed are resolved to the satisfaction of the workers. The remaining complaints arein the process of being addressed. Promoting the visibility of conditions and improving the effectiveness ofthe company's responses are future issues to be addressed.
NYK India intends to continue to address issues identified in interviews and conduct third-party follow-up
surveys to determine whether improvements in measures and procedures have resulted in workers'
perceptions of these. Furthermore, NYK India plans to examine and implement remedial measures withcustomers, depending on the content. In the first half of FY2023, NYK India was recognized by one of ourcustomers for its strong commitment to ESG and was awarded a compliance-related award at the annual
conference held by the customer for its suppliers and partners. We believe that the activities for respecting
human rights NYK India promotes together with customers can also contribute to other areas including
maintaining product quality for customers.
In November 2022, the NYK Group established its the NYK Group Human Rights Policy. The NYK Grouprequires NYK India and its supplier partners, who are its business partners, as well as customers to takemeasures in line with the NYK Group Human Rights Policy and work to ensure that this policy is applied
to all workers (including supplier partners' workers) who engage in work at NYK Group.

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