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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.

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

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

Based on its Basic Procurement Policy, the Sakai Chemical Group promotes sustainable and responsible procurement throughout its entire supply chain. Regarding conflict minerals, the Group verifies that its business partners are not involved in conflicts through written audits and other measures, in accordance with its Responsible Mineral Procurement Policy. In addition, the Group considers risks such as child labor and environmental destruction and requires its business partners to comply with its CSR Procurement Guidelines.

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 FY2025, we conducted comprehensive training on business and human rights for all employees of Group companies in Japan.

*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.