Respect for Human Rights
Basic Stance
Recognizing that a respect for the human rights of all people affected by our business is a fundamental principle of our business, the JGC Group abides by internationally recognized human rights principles, such as the International Bill of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work of the International Labor Organization (ILO). In addition to the Group executives and employees, we ask all stakeholders throughout our supply chains to respect human rights, in line with the "JGC Group Code of Business Conduct" and our "Basic Policy for Human Rights & Development." (Basic Policy for Human Rights & Development)
Framework for promoting human rights
Under the Sustainability Committee chaired by the chairman and CEO of JGC Holdings, the JGC Group has established the Human Rights & Development Subcommittee as part of our human rights framework. To promote a unified, group-wide approach to human rights, the subcommittee consists of senior executives of main Group companies and works with the I&D* Subcommittee led by a human resources department. This ensures that respect for human rights is part of our corporate culture. (Sustainability Management)
- *I&D stands for Inclusion and Diversity
Promotion of Human rights due diligence
In accordance with the UN's Guiding Principles on Business and Human Rights, we conduct human rights risk assessment on all EPC business stakeholders, including JGC Group employees, subcontractors, suppliers, business partners, and clients, to determine any potential human rights issues that may arise over the course of business. These issues are evaluated from standpoints such as likelihood and severity in order to identify priority risk issues.
Study risk reduction measures based on the human rights risk map
Based on the Basic Policy for Human Rights & Development, the Group is also committed to putting together a human rights due diligence process. In fiscal 2022, the Group identified stakeholders in the supply chain for our domestic and international EPC businesses, and created a human rights risk map that classified human rights issues that may arise in the Group by severity and likelihood. In fiscal 2023, the Group considered the risk mitigation measures required based on issues identified in the human rights risk map. In addition to drafting the Group’s Human Rights Regulations, which are foundational in promoting respect for human rights, the Group worked on drafting clauses to add human rights provisions to procurement contract terms for domestic orders, as well as revising the human rights clauses in procurement contract terms for overseas vendors and subcontractors.
Future issues to be addressed and direction
The Group will continue promoting our human rights due diligence initiatives, as well as aiming to further develop the process. Initially, the Group will draft implementation plans and guidelines for implementing risk reduction measures targeting our overseas EPC businesses, and will work on executing measures by sending human rights-related questionnaires to vendors and subcontractors, and requesting improvements based on interviews. In compliance pre-screening for business partners, the Group has already started initiatives that include sending some of them questionnaires containing items on human rights, and requesting from them the submission of declarations.
Furthermore, the Group plans to start from creating a human rights risk map in order to expand the human rights due diligence process to include functional materials manufacturing companies.
Raising awareness of human rights through internal training
We held "business and human rights training" for executives and employees in fiscal 2022 with the aim of increasing understanding of the social responsibility required of companies to ensure that each and every employee respects human rights. while we also recognized the importance of management expressing their own attitudes toward human rights during discussions between external human rights experts and management during training. This higher level of awareness toward human rights within the company increases the effectiveness of human rights due diligence to be conducted in the future.
Main initiatives
JGC Vendor and Contractor Expectations
Potential subcontractors receive and are asked to understand a JGC Vendor and Contractor Expectations document that includes rules on respecting human rights. Respecting human rights is also stipulated in contracts concluded with partner companies, who are requested to understand and respect internationally recognized human rights.
Member of Building Responsibly
Established: 2017
Board members: 13 companies
Overseas operating company JGC Corporation is a board member of Building Responsibly (BR), an organization committed to protecting construction workers' rights and respecting their welfare. BR promotes respect of human rights for construction workers by establishing international standards and guidelines on work environments and conditions for occupational health and safety and housing.
Presenting the importance of addressing human rights at construction sites, at an APEC conference
A member of the JGC Corporation Construction Department participated in APEC's Human Resource Development Working Group held in the U.S. in May 2023, and gave a presentation about IIF activities* in place at our current LNG Canada Project, and took part in the discussion session. The presentation covered on-site IIF activities, and was praised highly by BR. IIF activities at construction sites are a way of creating a working culture of ensuring care for construction workers, and help to improve Worker Welfare.
- *IIF activities: Incident & Injury Free. This is a method of creating a culture of safety on worksites, developed by safety consultant JMJ to ensure that everyone is able to return home without any injuries.
Report for Canada’s Modern Slavery Act
This Modern Slavery Report (“Report”) is published by JGC Constructors BC Ltd. (“JGC BC”) pursuant to Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act (“Modern Slavery Act”). JGC BC is a company under the responsibility of JGC Group operating in Canada in a joint venture with Fluor Canada Ltd. for the engineering, procurement and construction of the LNG Canada Plant in Kitimat, British Columbia, Canada. This Report discusses JGC BC’s efforts to identify, prevent and reduce the risks of forced labour and child labour in its activities and supply chains within the relevant reporting period.