Respect of Human Rights

Human Rights Policy

Toyota Boshoku Group Human Rights Policy was formulated with the approval of the Board of Directors in November 2021.
In accordance with international norms including the Universal Declaration of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work, and with the United Nations Guiding Principles on Business and Human Rights serving as an implementation framework, we have been promoting activities to respect human rights.
We expect that this policy not only applies to all company members including officers, but also expect that all stakeholders, including suppliers involved with the Toyota Boshoku group’s products and services, to understand and uphold this policy.
We have emphasized the following matters as priority themes in human rights compliance.
●Diversity ● Discrimination and Harassment ● Forced Labor and Child Labor ● Occupational Health and Safety

Using this as a guideline, we are promoting efforts to respect human rights, report on the progress and results at the CSV Promotion Meeting and the Board of Directors, and disclose information on the Toyota Boshoku group such as website.

Toyota Boshoku group Human Rights Policy

Basic Stance

Respect for humanity

The Toyota Boshoku group strives to ensure that the individuality and humanity of our members is respected in accordance with our Corporate Philosophy to be shared by each member and the TB Way, which express our values and behavioral principles. We prohibit discrimination, defamation, sexual harassment, power harassment, maternity harassment, and any other form of harassment or other such improper conduct based on race, gender, sexual orientation, age, nationality, religion, disability, sickness or injury. At the same time, we strictly respect the laws and social regulations of every country and region we operate in, regarding working hours, holidays, wages, and other basic conditions, as well as forbid the use of child or forced labor.

Promotion Structure

The Human Rights Working Group is conducting activities, with the CSO (Chief Strategy Officer) in charge of Corporate Planning Segment as the leader. The Corporate Planning Division serves as the secretariat, and members are elected from the HR, purchasing, general administration, legal, and safety-related divisions.
The Human Rights Working Group organizes the approach to human rights, identifies risks, and discusses initiatives. To ensure management is fully informed about human rights initiatives, the group reports its activity plans, progress, and results to the CSV Promotion Meeting, which is attended by members of the Board of Directors, including the President, and also to the Board of Directors, chaired by the Chairman, to be supervised for the group’s activities.
In addition, based on the Toyota Boshoku Group Human Rights Policy, we have established a system, together with our suppliers, to promote initiatives for respecting human rights throughout the supply chain, in collaboration with group companies both in and outside Japan.

Promotion structure for human rights initiatives

Discussions on human rights

• Self-Assessment Questionnaire
  Self-assessment based on the Toyota Boshoku Group Supplier Sustainability Guidelines

Human Rights Due Diligence

The Toyota Boshoku group aims to deepen each and every company member including officer’s understanding of human rights, and to build on the Toyota Boshoku Group Human Rights Policy to contribute to the realization of a free and fair society that respects human rights. As well as this, our approach to implementation of due diligence is clearly outlined in the Toyota Boshoku Group Human Rights Policy.
We are committed to respecting the human rights of all stakeholders (local communities, customers, company members, suppliers, business partners, etc.) related to the products and services of the Toyota Boshoku group through ongoing education and training on human rights, as well as dialogue and consultation with each stakeholder.
The Toyota Boshoku group is continuing to carry out these initiatives aimed at building a sustainable value chain, as laid out by the UN Guiding Principles on Business and Human Rights.

Process of human rights due diligence

Human rights due diligence implementation status

The Toyota Boshoku group has been conducting human rights due diligence based on the Toyota Boshoku Group Human Rights Policy since fiscal 2023 in an effort to reduce human rights risks. Each year, we expand the regions where due diligence is conducted and the number of companies subject to due diligence, aiming to foster a culture of respect for human rights and non-infringement of human rights throughout the group.
Human Rights Working Groups have been established in each region in order to accurately assess the impact on people and ensure that mitigation measures are taken after risk identification. Based on 19 human rights issues related to the Toyota Boshoku group and its value chain, regional characteristics and circumstances are factored in, and written and interview surveys are conducted.

• In light of international norms and guidelines on human rights, we have identified the following human rights issues that are relevant to the Toyota Boshoku group and its value chain.

Results of human rights due diligence implementation

In fiscal 2026, we plan to promote human rights due diligence by expanding the scope to include the Americas RM & CH and group companies in Asia.

• Including Toyota Boshoku

Future initiatives

We will implement preventive and mitigation measures for the identified human rights risks (material risks) and also expand the scope of human rights due diligence.
Going forward, we plan to implement human rights due diligence at group companies in and outside Japan in a phased manner, after considering which companies will be included, the priorities, and the assessment methods, in light of the situation in the regions for deployment.

Human rights assessment post-implementation process

Based on the results of the human rights impact assessments, we are building a system that works to reduce human rights risks, by formulating plans to prevent and mitigate risks and by establishing a PDCA (Plan, Do, Check, Action) cycle. We will also further expand the scope of our human rights due diligence, and are promoting initiatives aimed at addressing or mitigating any negative impacts relating to human rights across the entire value chain.

Preventive and mitigation measures

The results of the human rights impact assessments are fed back to relevant parties for improvement, and are also incorporated into training and education for company members. For each group company, specific mitigation measures and schedules for these activities are clearly defined, and activities for prevention and mitigation are promoted in cooperation with the Human Rights Working Group.
As a result of the human rights impact assessment of each Toyota Boshoku group company, we identified working hours as a human rights risk in addition to harassment and occupational health and safety, which are positioned as priority themes in the Toyota Boshoku Group Human Rights Policy. While strengthening existing efforts, we are promoting new initiatives to mitigate risks.

Monitoring

We confirm whether measures to reduce and prevent specially identified human rights risks are functioning, and whether risk is mitigated. Specifically, we monitor the results of company members surveys and stress checks, as well as the number of cases taken to the consultation and reporting desk, and the effectiveness of the management system, etc., and get a periodic overview of the current state of affairs.
The results of the assessment are discussed by the Human Rights Subcommittee and reported to the CSV Promotion Meeting and the Board of Directors, and the conclusions and findings are fed back to each group company. When necessary, mitigation measures are reviewed and risk mitigation initiatives are strengthened.

Initiatives for Important Themes in the Toyota Boshoku Group Human Rights Policy

Diversity

In order to respect diversity and improve the ease of working for company members, in fiscal 2023 we established the Employee Network Resources Group (ENRG), a company member networking group to hear direct feedback from company members and pass this on to management to resolve issues. It is split into five groups, “Women,” “Young People,” “Non-Japanese Members,” “Seniors,” and “People with Disabilities,” and promotes activities based on respect for everyone’s individuality and culture, recognizing each other’s diversity.

Diversity and Inclusion

Discrimination and harassment

We foster an open workplace culture and promote the creation of a workplace where harassment is unlikely to occur. In addition to educational activities such as anti-harassment training and lectures, we also incorporate measures to revitalize communication, as we believe the occurrence of harassment is correlated with a lack of communication between supervisors and subordinates.
For more information, please see our specific prevention and mitigation initiatives.
Striving to harness the potential of our diverse human resources, we publish a Human Capital Report that describes our efforts to create a culture in which people around the world say, "I like Toyota Boshoku." For each of the seven HR strategy themes aimed at realizing our business strategy, the report includes the target, specific initiatives, and KPIs tied to the initiatives. Specifically, we have established KPIs, etc. related to raising awareness and improving practices associated with compliance and human rights.

Adherence to compliance and ethics: Human Capital Report

Forced labor and child labor

In order to prevent forced labor, the Toyota Boshoku group is committed to proper time management for company members, in compliance with the labor standards laws of each country and region in which we operate. In addition, we do not engage in the practice of taking custody of identification documents (such as passports) that would facilitate forced labor.
Furthermore, to prevent the occurrence of child labor, we verify the age of newly hired members from official documents, make donations to organizations working to reduce child labor, and actively engage in volunteer activities at care homes.

Occupational safety and health

To establish a corporate culture that places priority on safety and health at work, we strive to identify potential risks in the workplace on a daily basis, and labor and management cooperate in developing and implementing health and safety activities. Specifically, meetings are regularly held with the participation of those responsible for operations to report on accidents and near-misses, compile accident prevention measures for each work scenario, analyze trends in occupational accidents and near-misses, and implement corresponding countermeasures. Moreover, we are conducting health and safety activities globally in line with the Occupational Safety and Health Management System (OSHMS).

Safety

Initiatives to Raise Company Members’ Awareness

Internal training and education

We promote training and education to raise company members’ awareness of human rights and to create a corporate culture of respect for human rights.
We hold lectures and training sessions on human rights for officers, division general managers and above, as well as presidents of subsidiaries, including those at sites outside Japan, to enable them to understand human rights initiatives as “their own business” and to be able to lead initiatives on their own. In addition, we provide training on human rights to promoted and new company members based on our Corporate Philosophy, the TB Way and the Toyota Boshoku Group Guiding Principles. Furthermore, we ensure that all company members (including officers and managers) take part in training concerning harassment, which can become a material risk. We distribute a handbook entitled “Handbook for Creating a Harassment-Free, Open Workplace” to managers in particular, and provide training on methods of mutual communication between supervisors and subordinates so that they can consult with their supervisors before harassment develops, as well as training to gain knowledge for preventing harassment.

Content and target participants for internal training and education

Initiatives for Respect of Human Rights in the Supply Chain

We have established the Toyota Boshoku Group Supplier Sustainability Guidelines in May 2022, based around the Toyota Boshoku Group Human Rights Policy, in order to prevent violations of human rights from occurring, and to build a sustainable supply chain. In addition, we hold briefings once a year to deepen understanding and disseminate the content. Together with all parties in our supply chain, we are working towards the realization of a sustainable society.

Protecting human rights and maintaining fair working conditions

In our basic trade agreements and Supplier Sustainability Guidelines, we request all our suppliers to respect human rights.
Initiatives related to the following items, which are based on the Toyota Boshoku Group Human Rights Policy, are being spread and adopted not only within the company itself, but also throughout the entire supply chain:
1. Non-discrimination, respect for diversity and inclusion
2. Prohibition of harassment
3. Prohibition of child labor
4. Prohibition of illegal migrant labor, forced labor
5. Wages
6. Appropriate management of working hours
7. Freedom of association
8. Creating a safe and healthy working environment
Also, using an annual self-check sheet, we confirm the extent to which the guidelines are being adhered to, and how guidelines are being adopted and implemented.

Toyota Boshoku group Supplier Sustainability Guidelines

About the SAQ

The Toyota Boshoku group recognizes the importance of identifying environmental, social, and governance risks throughout the supply chain and working with suppliers to correct and mitigate any risks that exist.
To prevent human rights risks also in our supply chain, we have been asking our suppliers in Japan (since fiscal 2023) and tier one suppliers in the Americas and Europe (since fiscal 2024) to conduct self-assessments to ascertain their compliance with the Toyota Boshoku Group Supplier Sustainability Guidelines.

Status of SAQ implementation

Using the SAQ, each year we identify and extract risks, including the status of protection of human rights and working conditions at our suppliers. After carefully reviewing the SAQ responses, in fiscal 2025 there continue to be no suppliers that pose a high risk. In future surveys, where a supplier is found to entail risk, we will conduct individual dialogue with the specific company and provide support for the prevention and improvement of human rights risks.
Furthermore, we ask that respect for human rights is implemented and promoted throughout the supply chain, and aim to minimize human rights risk throughout the value chain.

Grievance Redress Mechanism

The Toyota Boshoku group has established a “grievance redress mechanism” to properly handle complaints about human rights violations and unfair treatment. We properly respond to grievances we receive, which includes checking and investigating facts, providing those lodging complaints with investigation results, and taking corrective measures as necessary.

Toyota Boshoku group’s Anything Goes Counselling Window

We have set up the Anything Goes Counselling Window as an internal consultation and reporting desk on harassment, etc., which is also available to group companies in Japan, and a consultation and reporting desk at a law office. This creates an environment in which it is easy for whistleblowers to consult on issues. We have also established contact points in regions outside Japan, and therefore have a global system in place.

Compliance

Consultation and reporting desk for business partners

We have established a contact point for consultation and reporting of potential or apparent human rights risks from the Toyota Boshoku group’s business partners, and reporting of compliance issues. Consultations and reports are received by external lawyers.

Consultation and reporting desk