Implementing Human Rights Due Diligence
Human Rights Promotion Structure
As an organization responsible for implementing activities related to human rights issues, the Sakai Chemical Group has established a Human Rights Subcommittee.
It operates under the Sustainability Committee, which oversees the Group’s ESG management, and collaborates closely with our overall sustainability promotion framework.
Organizational Structure
Human Rights Due Diligence
The Sakai Chemical Group strives to identify negative human rights impacts, prevent their occurrence, and reduce associated risks.
In FY2023, we identified and assessed potential human rights risks, determining high priority human rights risks.
In FY2024, we formulated individual human rights due diligence (DD) action plans at each Group company in Japan and overseas to address the identified high priority human rights risks.
During implementation, the Human Rights Subcommittee conducted monitoring at interim and final terms, with progress reported to the subcommittee.
High Priority Human Rights Risks
横スクロールで表全体をご確認いただけます。
| Theme | High Priority Human Rights Risks | Key Stakeholders | Initiatives |
|---|---|---|---|
| Human Rights in the Supply Chain | (1) Human rights issues throughout the supply chain | Workers in the supply chain, customers, employees, local communities |
・Conduct CSR surveys for raw material suppliers ・Inform suppliers about the external reporting hotline (JaCER) |
| (2) Responsible mineral procurement | Workers in the supply chain, local communities | ・Conduct supplier audit checklists | |
| (3) Responsible palm oil procurement | Workers in the supply chain, local communities | ・Acquire RSPO certification for cosmetic material products | |
| Occupational Health and Safety | (4) Health and safety | Employees, workers in the supply chain, customers, local communities |
・Formally establish safety consideration requirements for on-site contractors ・Conduct disaster prevention trainings |
| (5) Proper storage and management of chemical substances | Employees | ・Identify and verify risks related to poisons and deleterious substances and formulate response policies | |
| Diversity and Human Rights in Workplace | (6) Mental health | Employees, workers in the supply chain |
・Provide mental health education ・Provide follow-up by industrial health staff and mental health specialists ・Conduct stress checkups |
| (7) Promotion of diversity | Employees |
・Establish the Human Capital Subcommittee as an organization responsible for promoting human capital management ・Hold seminars and workshops ・Promote women’s advancement |
Third-party Review on the Progress of Human Rights Due Diligence
A third-party review of the FY2024 human rights due diligence (DD) plans developed by Group companies in Japan and overseas was conducted by attorney Emi Omura.
Emi Omura
Attorney-at-law (Japan and New York State)
Operating Committee Member, Business and Human Rights Lawyers Network Japan
View Full Review Comments
Attorney Emi Omura
Based on the Group-wide progress management sheet for human rights due diligence, I conducted an independent review in September 2025 regarding the Group’s initiatives in FY2024.
In dialogues with the Procurement Divisions and Group companies handling materials considered to present higher human rights risks, we discussed the communication of information about the remedy desk (established at the Japan Center for Engagement and Remedy on Business and Human Rights [JaCER], of which Sakai Chemical Industry is a member company) for victims of human rights violations.
At other Group companies, I confirmed daily initiatives practicing the principle of respect for human rights through on-site visits and interviews. These initiatives include support frameworks among employees to create comfortable working environments for workers with disabilities.
Regarding supply chain initiatives, I confirmed progress on introducing a sustainability clause (requiring business partners to engage in initiatives related to human rights respect and environmental consideration) into the basic transaction agreement. While the distribution and collection of questionnaires to suppliers are progressing, we discussed measures for conducting more effective human rights due diligence, such as revising questionnaire items to obtain more specific information on human rights risks and providing training for staff responsible for distributing the questionnaires.
As a summary of the third-party review, I had an interview with President Yagura and other management members, exchanging views on the necessity of prioritizing confirmation of occupational health and safety at overseas production sites. In the discussion, the management also explained the importance of incorporating a human rights perspective from the product research and development phase. I was particularly impressed by the management’s strong commitment and continued efforts to advance human rights initiatives not only within the Human Rights Divisions but the entire Group.
Promoting Responsible Procurement
The Sakai Chemical Group strives to achieve responsible and sustainable procurement practices in accordance with its Basic Procurement Policy.
To realize this, we work to ensure our suppliers understand this policy while building good relationships and mutual understanding.
Initiatives on Responsible Mineral Procurement
Under the Sakai Chemical Group Policy on Responsible Mineral Procurement, we confirm that our suppliers are not involved in any activities related to conflict minerals that may serve as a funding source for inhumane armed groups. To carry out this confirmation, we request suppliers to complete purchasing audit checklists or equivalent documentation (document-based audits) as necessary.
In recent years, the importance of responsible mineral procurement, including the prevention of risks such as child labor and environmental degradation, has been growing.
The Sakai Chemical Group will continue to raise awareness and promote understanding among its suppliers.
Implementation of Human Rights Education
The Sakai Chemical Group provides necessary training to ensure that all officers and employees correctly understand human rights and effectively apply this knowledge in their business activities.
In FY2023, we conducted comprehensive training on business and human rights for all employees of Group companies in Japan.
| No. of Participants | No. of Eligible Employees | Attendance Rate | |
|---|---|---|---|
| Group Total | 1,624 | 1,692 | 96.0% |
| Administrative Divisions | 96.1% | ||
| Sales Divisions | 96.1% | ||
| Procurement Divisions | 96.2% | ||
| Manufacturing Divisions | 95.8% | ||
| Research Divisions | 96.0% | ||
*The number of untrained employees includes those on childcare leave or other leaves.
Joining the Grievance Handling Organization JaCER
To establish the remedy system outlined in the Sakai Chemical Group’s Human Rights Policy, we have become a full member of the Japan Center for Engagement and Remedy on Business and Human Rights (JaCER).
JaCER is an organization working to establish a non-judicial grievance handling platform based on the United Nations Guiding Principles on Business and Human Rights and to support and promote grievance handling for participating companies from an expert perspective.
The Sakai Chemical Group is working to establish a more effective remedy system, starting with the use of the JaCER remedy reporting desk.
