Respect for Human Rights
Mission to create value
Respecting human rights and creating an environment with high psychological safety are prerequisites for employees to work autonomously and creatively.
In order to realize a society in which everyone is respected equally, we will cooperate with all stakeholders, including suppliers, and conduct business activities in consideration of human rights on a global scale.
Policies
In 2021, we published a human rights policy that places respect for human rights at the core of our business activities in all countries and regions where we operate. This policy was formulated not only for all of our employees, but also for our business partners, including our suppliers, to understand and adopt. The Human Rights Policy is also reflected in the "Our Code of Conduct", newly formulated for the launch of Resonac, and we are working to disseminate it in all workplaces.
We are steadily continuing and deepening its human rights due diligence in line with this Human Rights Policy.
Processes for human rights initiatives
The Resonac Group Human Rights Policy
The Resonac Group aims to contribute to the sustainable development of a global society based on its significance of existence (purpose) of "Change society through the power of chemistry".
The Resonac Group has human rights as the basis of its business activities in all countries and regions where it operates in order to realize a society in which the dignity of all people is ensured and everyone is equally respected without being left behind. We have clarified these ideas and attitudes, and have formulated a human rights policy (hereinafter referred to as this policy) here as a promise to our stakeholders.
This policy applies to all officers and employees (including contract employees) working in the Resonac Group (Resonac Holdings Corporation and its consolidated subsidiaries). We also expect all business partners, including our suppliers, to understand and support the content of this policy, and will continue to work to ensure that this policy is respected by them.
We are aware that the businesses of the Resonac Group and all business partners including suppliers, directly or indirectly affect human rights in each process of the value chain from product development to procurement, manufacturing, distribution, use, final consumption, and disposal.
The Resonac Group is committed to prohibiting all discrimination and harassment, providing a safe working environment and reducing excessive working hours, ensuring minimum wages, and respecting freedom of association and the right to collective bargaining. We also do not allow child labor, forced labor or human trafficking for the purpose of labor exploitation, especially in the field of supply chain management.
- Support for international human rights principles
The Resonac Group supports internationally recognized human rights principles (“International Bill of Human Rights”, the International Labour Organization’s (ILO’s) “Declaration on Fundamental Principles and Rights at work”, “the Children's Rights and Business Principles”, etc.) and make them our own standards.
In addition, as a UN Global Compact signatory company, we will respect human rights in all aspects of our business activities and strive to prevent and mitigate adverse impacts by operating our business in accordance with "the Ten Principles of the UN Global Compact" and "the UN Guiding Principles on Business and Human Rights." - Remediation
In the unlikely event that the operations, products and services of the Resonac Group and its business partners including suppliers, have an adverse impact on the human rights of our customers, local communities and other stakeholders, we will endeavor to provide for remediation through appropriate procedures. - Compliance with applicable laws and regulations
In making business decisions, the Resonac Group will comply with all applicable laws and regulations in each country and region in which it operates. In the unlikely event that the laws and regulations of the country or region differ or conflict with the internationally recognized human rights principles, or when faced with conflicting requirements, we will pursue ways to respect the internationally recognized human rights principles. In the context of stakeholders and circumstances where the Resonac Group cannot control decision-making, we will strive to exert influence so that this policy will be respected, and will continue to work to avoid complicity in human rights violations.
In order to fulfill our responsibility to respect human rights, the Resonac Group will maintain an internal system to steadily implement human rights due diligence initiatives based on this policy.
In addition, we will reflect this policy in relevant policies, procedures and operations so that it can be properly incorporated into our business activities.
In accordance with the UN Guiding Principles on Business and Human Rights, the Resonac Group will establish a process to properly assess the impact of business decision-making and execution on human rights, identify, prevent and mitigate risks that cause or contribute to serious human rights violations, and strive to provide for remediation.
In addition, in order to verify whether the adverse impact on human rights is being dealt with, we will continuously track and evaluate the effectiveness of the response.
The Resonac Group will establish grievance mechanisms both internally and externally with the aim of early detection of concerns, including adverse impacts on human rights, and the resolution of problems. The grievance mechanisms are available to all stakeholders such as employees, business partners including suppliers, and local communities. We will ensure the anonymity of the person making the report and the confidentiality of the content of the report. In addition, we will prohibit unfavorable treatment and retaliation against the whistleblowers, and will thoroughly protect them.
The Resonac Group recognizes that it is important to understand the adverse impacts on human rights from the perspective of those affected. Therefore, we will endeavor to utilize it in our efforts to respect human rights by continuously conducting dialogues and discussions with our stakeholders.
The Resonac Group regularly discloses information on initiatives on respecting human rights and human rights due diligence taken based on this policy through its website and other means.
The Resonac Group will not only continue to provide appropriate education and training to all officers and employees (including contract employees) but also work on capability building necessary to put this policy into practice so that this policy will permeate the company.
In addition, we will strive to respect human rights throughout the value chain by thoroughly communicating the contents of this policy to our business partners, including suppliers.
This policy is informed by the advice of external experts who have expertise and practical experience in human rights and has been formulated based on internationally recognized human rights principles, "the Ten Principles of the UN Global Compact", and "the UN Guiding Principles on Business and Human Rights" with the approval of the Board of Directors.
We will review this policy on a regular basis in light of changes in the social environment and dialogues and discussions with stakeholders, and strive to enhance efforts to respect human rights.
Resonac Holdings Corporation
Group CEO
Hidehito Takahashi
October 1, 2021
Promotion system
With regard to respect for human rights, the Chief Sustainability Officer (CSuO) is the executive responsible for these efforts, which are advanced through a human rights project centered on a secretariat comprising the Sustainability, Human Resources,and Compliance departments. Matters are regularly discussed at the Sustainability Promotion Council attended by Group CXOs, including the CEO, and Business Unit heads, and important matters are deliberated and decided upon at the Management Committee and then reported to the Board of Directors. By strengthening governance, we aim to mitigate management risks.
Framework for Promoting Human Rights Initiatives
KPI Targets and Results
Resonac positions sustainability at the core of its Company-wide strategy and has identified its Material Issues. To achieve each material issue, we have established the KPI shown below in the field of human rights and are striving to realize our Long-Term Vision.
Human Rights Due Diligence
Resonac, which emphasizes the development and success of co-creative talent, fundamentally believes that the human rights of every individual, as well as the human rights of all people affected by our business activities, must be respected. From 2022 to 2023, just before the integration, a desktop survey was conducted covering the business areas of both companies regarding human rights risks in the Resonac Group and its supply chain, examining human rights issues in high-risk regions and chemical companies. Based on those results, we are currently identifying and addressing the risks specific to Resonac's business. In 2023, a survey was conducted among employees with the purpose of understanding latent human rights issues within the company group, employees' level of understanding of human rights, and awareness of the internal reporting system. Based on the survey results, mitigation and corrective measures are considered and implemented, and company-wide education such as e-learning is conducted annually to raise employees' awareness of human rights.In 2025, we redefined our framework for advancing human rights initiatives and commenced a more in-depth assessment of salient human rights issues.
We will continue to engage in dialogue and consultations with stakeholders so that we can understand and address the negative impacts on human rights from the perspective of those affected.
Awareness Survey on Human Rights
In 2023, we conducted our first global human rights awareness survey for employees. As a result, it was found that overall awareness of human rights initiatives and employee positivity are generally high; however, the following human rights issues were identified.
Issues and Measures Extracted from the 2023 Human Rights Awareness Survey
| Overview of Human Rights Issues | Mitigation and Corrective Measures |
|---|---|
| 1.There is still room to further raise awareness about the content of the human rights policy and the necessity of respecting human rights. | Repeatedly raise awareness of the key points of the human rights policy through e-learning. |
| 2. Although awareness of internal whistleblowing has progressed, there is room for improvement in dispelling concerns about anonymity and unfavorable treatment resulting from reporting. | If it is confirmed that the whistleblower or others have been dismissed or otherwise treated unfairly as a result of reporting, the company will take appropriate measures for remedy and recovery, inform this through the intranet and regular meetings for compliance managers of each department, and promote a corporate culture that protects whistleblowers and others. |
| 3. Identifying potential and actual risks of harassment as human rights issues | Conduct annual training for all employees on harassment prevention and how to respond when harassment occurs. We are rolling out harassment training conducted by external instructors starting from top management, targeting 1,760 managers in 2024. From 2025 onwards, we plan to conduct training for general employees in charge of onsite leadership. |
Human rights due diligence process for harassment
Identified Human Rights Issues and Responses
We respect the UN Guiding Principles on Business and Human Rights and have formulated a human rights policy and comply with it. We have established a process to properly assess the impact of our business decisions and operations on human rights, and strive to identify, prevent, and mitigate risks that could cause or contribute to serious human rights violations and to provide remedy. In 2025, we identified the human rights risks to be addressed as priorities within our company and across our entire value chain using the following process.
The priority issues determined through the process of identifying salient human rights issues are as follows. We are currently working to identify where potential human rights risks exist, including assessing how they are currently managed, in preparation for conducting human rights due diligence with respect to each group of rights-holder.
Resonac accords the top priority to the dignity and safety of its employees and is working both in Japan and overseas to prevent and address human rights risks related to harassment, occupational health and safety, and overwork. We have established consultation channels accessible to all employees. In Japan, we continue to provide training primarily for managers, rigorously manage working hours, and conduct safety initiatives. At our overseas sites, we are assessing actual conditions and working to raise management standards. We will continue to improve the environment so that everyone can work with peace of mind and promote the mitigation of human rights risks.
We also view ensuring a work environment where third-party contract workers can complete their tasks safely as a critical responsibility, just as we do for our
own employees. Based on this belief, we clarify safety requirements from the contracting stage and establish systems for risk management, safety training, and supervision and support during work. Furthermore, by clarifying the roles and scope of responsibility of both parties in company-wide rules, we provide a safe work environment and promote initiatives to respect human rights.
Human Rights in the Supply Chain
To promote business activities that consider human rights throughout the entire supply chain, we have reflected our human rights policy in the "Resonac Group Sustainable Procurement Guidelines," which clearly states the matters that our company and suppliers will work on collaboratively, and have shared this with our suppliers. We also verify suppliers' efforts on human rights through CSR surveys and CSR visits.
Response to the European Batteries Regulation
In August 2023, the European Batteries Regulation* was established.- * In August 2023, comprehensive regulations covering the entire battery life cycle were enforced for all batteries sold within the EU, including those for automotive, industrial, and portable uses. These regulations, based on the EU's circular economy principles, introduce obligations such as carbon footprint declaration, setting of maximum limits, implementation of due diligence, and recycling of raw materials.
Under the European Batteries Regulation, operators are required to conduct due diligence for assessing environmental and social (human rights) risks. This applies to suppliers handling cobalt, natural graphite, nickel, lithium, and their compounds, and mandates that risk assessments be conducted on environmental and social risk factors (a total of 15 items). At Resonac, the business involving anode materials for lithium-ion batteries is subject to this regulation.
Furthermore, progress and new measures will be disclosed to institutions and business partners in accordance with the provisions of the due diligence guidelines under the European Batteries Regulation. Our company will collaborate with all stakeholders, including suppliers, to aim for responsible procurement.