Teijin Group Slavery & Human Trafficking Statement for FY 2020

This statement is made in accordance with Section 54 of the Modern Slavery Act 2015
and covers the steps that the Teijin Group has taken during financial year from April 1,2020 to March 31, 2021 (“FY2020”) to ensure that slavery and human trafficking is nottaking place in our business and our supply chains.
The Teijin Group recognizes that any activity of our business or our supply chainsshould not prevent other people from enjoying human rights. We also recognize slavery
and human trafficking are global human rights issues of our time. The Teijin Group willcontinue to carry out actions to ensure that slavery and human trafficking is notoccurring in any part of our own business and in any of our supply chains.
1. Our business and organizational structure
The Teijin Group began with the establishment of Japan’s first rayon manufacturer in
1918. The Teijin Group now combines wide range of businesses including advanced
fibers, resin, composites, fibers and products converting, healthcare and IT. The numberof Teijin Group companies is 172 in total, including 55 in Japan and 117 overseas (as ofMarch 31, 2021). There are 21,059 employees in the Teijin Group in total, including
9,552 in Japan and 11,507 overseas (as of March 31, 2021). Teijin Group’s net sales in
FY2020 are 836.5 billions of yen, 41.41% of which is overseas net sales.
For further details of the Teijin Group and our business, please visit the Teijin’s website
at the following link:
https://www.teijin.com/
2. Our policies in relation to slavery and human trafficking
In the following policies, the Teijin Group states that the Teijin Group will prevent anyslavery and human trafficking in any part of our own business and in any of our supplychains.
Teijin Group Corporate Philosophy
Teijin Group Corporate Philosophy is “Enhancing the Quality of Life”, “In Harmonywith Society” and “Empowering Our People”. We conduct business based on thisphilosophy. The starting line of the Teijin Group’s Corporate Social Responsibility(CSR) is also this philosophy. We pursue CSR activities rooted in this CorporatePhilosophy.

1

Teijin Group Code of Conduct
The Teijin Group has established Teijin Group Code of Conduct as standard for actionthat aligns with our Corporate Philosophy.
Teijin Group Code of Conduct states “We — The Teijin Group, including its officers
and employees — act according to our conscience, with the aim of enhancing thequality of life for all stakeholders.” and “We act with integrity in compliance with laws
and regulations, and show respect for human rights and local communities in which weoperate.”
In order to better understand and practice Teijin Group Code of Conduct, we have also
formulated How We Behave for each item of Teijin Group Code of Conduct and wehave been conducting publicity activities within our group.
For further details of Teijin Group Code of Conduct and How We Behave, please visit
the Teijin’s website at the following link:
https://www.teijin.com/about/philosophy/
Teijin Group Human Rights Policy
The Teijin Group has established Teijin Group Human Rights Policy as our basic stanceto respect every human’s dignity and rights, which is crucial for realizing the Corporate
Philosophy.
Teijin Group Human Rights Policy states “Acknowledging that it is our important
corporate social responsibility to value human rights, we do our best to avoid direct
involvement, as well as indirectly influence through our relevant external parties, any
abuse of human rights.” In addition, we clearly state “"our relevant external parties" areall external organizations and people, including suppliers and partners, with whom werelate in our business” in our Human Rights Policy.
We also express in our Human Rights Policy that we follow the fundamental principles
described in the United Nation (UN) International Bill of Human Rights (the Universal
Declaration of Human Rights, the International Covenant on Civil and Political Rights,
and the International Covenant on Economic, Social and Cultural Rights), and theInternational Labor Organization (ILO) Declaration on Fundamental Principles andRights at Work and we respect the UN Guiding Principles on Businesses and HumanRights and the 10 Principles of the UN Global Compact. Teijin Limited has joined theUN Global Compact since March 2011.
Furthermore, Teijin Group Human Rights Policy states “We develop the human rights
due diligence process to identify actual or potential negative impacts on human rights
and seek to prevent or mitigate the negative impacts.”

2

The Chief Executive Officer of the Teijin Group takes responsibility for implementing
this Human Rights Policy.
For further details of Teijin Group Human Rights Policy, please visit the Teijin’s website
at the following link:
https://www.teijin.com/csr/policy/human_rights.html
Policies for purchasing and procurement- Teijin Group Basic Policy for Purchasing and Procurement
Teijin Group Basic Policy for Purchasing and Procurement states “The Teijin Group
promotes purchasing and procurement from suppliers that respect human rights and do
not commit human rights infringements such as unjust discrimination, slave labor,
forced labor, child labor, human trafficking, etc.”- Teijin Group Basic Stance of Persons in Charge of Purchasing and Procurement
We have also determined Teijin Group Basic Stance of Persons in Charge of Purchasing
and Procurement that describes in specific terms how purchasing and procurement
personnel should behave. Teijin Group Basic Stance of Persons in Charge of Purchasing
and Procurement states “Purchasing/procurement personnel do not force inappropriate
transaction terms on suppliers nor force them to accept unreasonably low prices, etc.
and promote purchasing and procurement from suppliers that respect human rights anddo not support forced labor or long working hours.”- Teijin Group CSR Procurement GuidelinesIn accordance with Teijin Group Basic Policy for Purchasing and Procurement, we haveprepared Teijin Group CSR Procurement Guidelines including items relating to humanrights, such as forced labor, child labor and young workers, foreign workers, working
hours and holidays, wages and welfare benefits, discrimination, harassment, freedom ofassociation, consideration for local communities, contact point for consultations andinternal reporting and responsible supply chain promotion. The Teijin Group isrequesting our suppliers to conduct activities in compliance with our Guidelines.
For further details of Teijin Group Basic Policy for Purchasing and Procurement, TeijinGroup Basic Stance of Persons in Charge of Purchasing and Procurement and TeijinGroup CSR Procurement Guidelines, please visit the Teijin’s website at the following
link:
https://www.teijin.com/csr/social/purchase_procurement/procurement.html
3. Our steps to ensure that slavery and human trafficking is not taking place
Human rights due diligence
In accordance with our Human Rights Policy which states the human rights due
diligence, since FY2018, the Teijin Group has begun activities to build a process for3human rights due diligence and to understand the negative impact and risks to humanrights due to the activity of our business or our supply chains.
As initiatives in the first fiscal year (FY 2018), the Teijin Group has conducted a survey
with the support of an external NGO in order to sort out the types of human rights issues
that could be considered for each our business, and to identify places where such issues
might become apparent. The businesses targeted by this survey is a total of 11
businesses: aramid fibers, carbon fibers, resin, film (*), composites, fibers and products
converting, medicines, at-home medical treatment, IT, material new business andhealthcare new business. As a specific survey method, we quantitatively analyzed thehuman rights issues risk in each of the above 11 businesses, from the two perspectivesof “country / region” and “business contents”, based on the characteristic of each of theabove 11 businesses (country / region of operation and business contents etc.) and thecharacteristic of our suppliers of each businesses (place of operation, types of theirproducts and business contents etc.). Through this survey, we have confirmed that in thebusiness of fibers and products converting, human rights issues are most likely to takeplace, particularly in the countries of Myanmar, China, Vietnam and Thailand. In thebusiness of fibers and products converting, we have been already promoting efforts torespect human rights, we will continue to promote improvement as a high prioritybusiness.
* We had been conducting the film business until the end of September 2019.

For further details of Teijin Group human rights due diligence, please visit the Teijin’s
website at the following link:
https://www.teijin.com/csr/human_rights/initiatives.html
CSR procurement
The Teijin Group conducts the following activities for CSR procurement in cooperation
with our suppliers.
- Teijin Group supplier surveys
We have developed and launched an original system for surveying and rating oursupplier’s status of efforts on CSR. The system utilizes an online questionnaire toconfirm whether or not suppliers are complying with the Teijin Group CSR
Procurement Guidelines, and the results are used to determine their place in a 5-level
ranking system. In addition, we conduct detailed interviews, etc., as necessary, based on
the contents of each supplier’s response to such survey, and request the suppliers that
we consider to be at risk to create an improvement plan and we check theirimplementation status and provide necessary support. In FY2020, we continued toconduct detailed interviews with 22 companies in Japan and overseas that did not
respond sufficiency in such survey conducted by us in FY2019 and we have confirmed,
for all of them, that slavery, human trafficking and other human rights risks do not
actually occur. We also conducted such survey in FY2020 and were concerned about theresponses of 22 companies in Japan and overseas to the questions regarding humanrights issues such as not employing children under the age of 15 years and not allowing
4

young workers to engage in late-night work or overtime work. Accordingly, weconducted detailed interviews directly with such 22 companies and have confirmed, forall of them, that slavery, human trafficking and other human rights risks do not actuallyoccur.
- Efforts in the business of fibers and products converting
In the business of fibers and products converting, we are making further efforts.
Teijin Frontier Co., Ltd. (“Teijin Frontier”), a Teijin Group company with an integrated
value chain from material development/procurement to product realization operating ona global scale, in the business of fibers and products converting, has created an originalStandards for Sustainable Procurement in Japanese, English and Chinese and sends it toits suppliers in Japan and overseas that conduct transactions on a continuous basis. InFY2020, Teijin Frontier has continued to send its Standards for Sustainable
Procurement to new suppliers and also sent to suppliers of the subsidiaries of Teijin
Frontier that it had not previously sent. In addition, based on the results of the above
Teijin Group supplier surveys, Teijin Frontier requests its suppliers to cooperate in
on-site-survey. In FY2020, Teijin Frontier could not actually visit to some factories dueto the influence of COVID-19, but in that case, Teijin Frontier conducted actualcondition surveys using a remote conference system to the extent possible.
Consequently, Teijin Frontier was able to conduct actual condition surveys of 16
processing or sewing factories etc. in Japan and overseas, including remote surveys.
In addition, since 2014, Teijin Frontier has been holding a CSR Supply Chain Seminar
every year for local processing, sewing and embroidery factories, material
manufacturers, etc. with the aim of enforcing legal compliance and the protection ofhuman rights. In FY2020, Teijin Frontier held such seminars for Vietnam, Indonesia andChina respectively and two seminars for Japan, using a remote conference system due tothe influence of COVID-19. The Teijin Group believes it is important to raise awarenessof CSR procurement locally on an ongoing basis.
- Efforts with foreign technical intern trainees in the business of fibers andproducts converting
The business of fibers and products converting, which has adopted foreign technicalintern trainees by utilizing the foreign technical intern training system for years,
conducted its internal survey and found the fact that the foreign trainees have come to
Japan by paying a large fee to the sending agency in their own country. To improve this,
Teijin Frontier has launched so called, ‘ZERO-FEE PROJECT’ which would eliminate
the foreign trainee's fee burden by having the factory that accepts the foreign trainee pay
such fee from FY2019. Subsidiaries of Teijin Frontier that accept the foreign trainee
have established a Code of Conduct regarding Foreign Workers and informed thesupervising organization, and from FY2020, such subsidiaries have born such fee
required for sending foreign trainees. In order to secure this ZERO-FEE, such
subsidiaries have decided to accept foreign trainees from the supervising organization

5

that discloses the information on fees at the sending agency. Such subsidiaries also
confirm directly with the foreign trainees that they have not paid such fees.
For further information of the Teijin Group CSR procurement activities, please visit theTeijin’s website at the following link:
https://www.teijin.com/csr/social/purchase_procurement/procurement.html
Whistle-blowing
Since 1999, the Teijin Group has established counseling and reporting center for all
Teijin Group company employees. As of FY2020, such procedures are available in 18
languages of the Teijin Group’s major bases.
We also have the reporting desk on the Teijin’s website to receive notifications fromother than the Teijin Group company employees, such as suppliers.
For further information of the Teijin Group whistle-blowing procedures, please visit theTeijin’s website at the following link:
https://www.teijin.com/csr/materiality5/compliance.html
EffectivenessIn FY 2020, continuing from the previous year, we held dialogues with the leading
experts who active in the fields of “Business and Human Rights”, as part of reviewing
the method and results of human rights due diligence in our group, confirming its
effectiveness, and considering our policy for future efforts. We received the same goodevaluation as in FY2019 for the mechanism of our supplier surveys, and we also
received an evaluation that our attitude of making improvements internally and incooperation with other parties concerned when human rights issues became clear isexcellent, such as ‘ZERO-FEE PROJECT’. On the other hand, we were pointed out thatthey would like to know our story of the management strategy as to what kind of issues
the Teijin Group will take on challenges and produce results toward the achievement of
the Sustainable Development Goals (SDGs).
In order to assess the effectiveness of the steps we are taking to ensuring that slavery
and human trafficking is not taking place in our business or supply chains, we willcontinue to (i) conduct the human rights due diligence survey periodically, (ii) review
the results of the surveys of our suppliers and (iii) monitor the number and the contentsof reports made through the whistle-blowing procedures from employee, suppliers orothers who convey concerns about slavery and human trafficking.
Training
The Teijin Group has been holding the Corporate Ethics Workshop every year during
Cooperate Ethic Month (October) targeting all executives and employees (including
contract/temporary employees) of our group. Our corporate ethics workshop includes
6