Respect for Human Rights in Supply Chains
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
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.
Create human rights risk map and identify issues (create based on the UN Guiding Principles Reporting Framework)
In fiscal 2022, we conducted desktop studies for EPC Business in Japan and abroad to shed light on all stakeholders throughout the supply chain, so as to identify human rights issues that present risks to the JGC Group's businesses.
Each detected issue was categorized on the basis of severity and likelihood of occurrence, to create a human rights risk map. Response policies and plans are developed in accordance with the "Guidelines on Respect for Human Rights in Responsible Supply Chains" released by the Japanese government, with initiatives slated to be rolled out from fiscal 2024 to address the detected issues in order of severity and likelihood of occurrence.
Ahead of implementing the above plan, we have started screening by sending questionnaires to suppliers of our overseas businesses that use certain construction materials deemed to have extremely high human rights risks, in order to verify their attitudes toward human rights and their supply chains.
Future issues to be addressed and direction
Specific initiatives for risk reduction measures will be implemented going forward, based on the created human rights due diligence process and proposed measures. Furthermore, the human rights due diligence process currently being implemented for the EPC Business will be applied to functional materials manufacturing companies from fiscal 2024.
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.