Respect for Human Rights

Basic Approach to Human Rights

In June 2022, we formulated the human rights policy of the Hanwa Group, which includes Hanwa and its subsidiaries.
Under this policy, we will promote human rights initiatives and disclosure in the supply chain.

Hanwa Group Human Rights Policy

Hanwa and its subsidiaries (“the Group”) have a corporate philosophy of responding to the diverse needs of customers and contributing to society as a “distribution specialist.” Based on this philosophy, we aim to realize a sustainable international community and local community through our business.
The Group, which operates in various countries around the world, believes that respect for human rights is the foundation of our business, and we will clarify this concept in this policy and strive to fulfill this responsibility.

1.Scope of application

This policy applies to all officers and employees of the Group.
We also expect our suppliers and other business partners and other related parties to respect this policy.

2.Support for international norms and principles regarding human rights

The Group supports and respects international norms on human rights including the International Bill of Human Rights (Universal Declaration of Human Rights and International Covenants on Human Rights), which stipulates the basic human rights for all people around the world, and the ILO Declaration on Fundamental Principles and Rights at Work by the International Labour Organization (ILO), which stipulates the fundamental rights regarding labor (freedom of association and collective bargaining rights, the elimination of forced or compulsory labor, the abolition of child labor, and the elimination of discrimination in respect of employment and occupation). Also, the group supports and respects the Guiding Principles on Business and Human Rights endorsed by the UN Human Rights Council in 2011.

3.Human rights due diligence

The Group will endeavor to understand, prevent or mitigate the negative human rights impacts that may be caused through its business.

4.Remedy

If the Group's business activities cause or reveal a negative impact on human rights, we will work to correct them through appropriate procedures and dialogue.

5.Dialogue and discussion

The Group will hold dialogues and discussions with related stakeholders as appropriate in efforts in line with this policy.

6.Education and enlightenment

The Group will provide appropriate education to officers and employees and strive to prevent negative impacts on human rights.

7.Report

The Group will appropriately report on its efforts to respect human rights in this policy through various reports and websites.

June 24, 2022
Yoichi Nakagawa, President and Representative Director

Structure

The Group considers respect for human rights to be a material issue. Based on the Hanwa Group Human Rights Policy, Sustainability Promotion Office acts as the secretariat and driving force, under the Sustainability Promotion Committee and the Committee Chairperson (Supervising Executive Director of Administrative Divisions). In collaboration with the sales and corporate divisions, the office promotes respect for human rights and works toward continuous improvement across the entire Group. Significant human rights matters deliberated by the committee are reported to the Board of Directors as appropriate, which provides instructions when necessary. The Board of Directors receives reports on significant human rights issues reviewed by the committee and oversees their implementation.

Initiatives

Overview of the Group's Human Rights Initiatives

The Group supports international human rights standards, including the International Bill of Human Rights (Universal Declaration of Human Rights and International Covenants on Human Rights), the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work, and the United Nations Guiding Principles on Business and Human Rights. We have established the Hanwa Group Human Rights Policy to identify and address adverse human rights impacts across our value chain. Through these initiatives, we work to reduce risks and contribute to the sustainable enhancement of corporate value. The Group is developing a human rights due diligence framework to identify, assess, and address adverse human rights impacts on stakeholders involved in its business activities, and is committed to implementing it on an ongoing basis. As a new initiative in this fiscal year, we conducted a supply chain survey with select suppliers. Looking ahead, we plan to strengthen our human rights due diligence framework in stages, including expanding the scope of our surveys.

Overview of the Group's Human Rights Initiatives

Human rights due diligence

2-b Specific Identification　　Identify high-risk areas of our business

In FY2023, we analyzed human rights issues and business areas requiring close attention in order to identify potential human rights risks in our operations.

(1) Analysis of businesses to monitor The number of campaigns on human rights issues identified by human rights groups and NGOs worldwide has been mapped by level of human rights risk, as shown below. Forced labor, child labor, and insufficient and unpaid wages, living wages were identified as key issues to monitor.

(2) Analysis of businesses to monitor The number of human rights campaigns containing product-specific information to the corresponding businesses of our Group has been mapped by level of human rights risk, as shown below. The analysis revealed that businesses requiring particular attention are Primary Metal, Food Products, and Housing Materials (lumber).

Approach from product-specific information

Results of Supply Chain Questionnaire

2-c Survey

We conducted a supply chain questionnaire on ESG initiatives among select suppliers, with a primary focus on those with substantial procurement volumes, and received responses from 252 companies in FY2024. As a result of reviewing the questionnaire responses and the suppliers' initiatives regarding ESG, for business partners deemed to require improvement, we are committed to implementing corrective measures, such as requesting improvements through written means and confirming the status of improvements. Going forward, we will continue to proactively communicate our core principles, such as our Supply Chain Action Guidelines and Human Rights Policy, to our business partners, and will implement corrective measures as necessary, including requesting improvements or conducting status checks.

Toward the Prevention of Child Labor and Forced Labor

Based on the Hanwa Group Human Rights Policy, we are committed to preventing labor issues including child labor and forced labor.
In recruitment and employment management, we ensure appropriate personnel operations in compliance with relevant laws and regulations. In addition, employment is premised on the free will of the individual, and we do not impose unreasonable restrictions on resignation or keep custody of identification documents.
Regarding assignment and personnel transfers, we provide opportunities to confirm the employee's intentions through interviews and self-declaration forms. Furthermore, we do not require employees to bear unreasonable costs necessary for recruitment or work, and wages are paid regularly and appropriately, addressing issues such as insufficient and unpaid wages. We are committed to ensuring appropriate labor management in compliance with relevant laws and regulations, regardless of employment status.