The Group has established Our Commitment: “For people, society and the earth, circulating resources for a sustainable future.” It is employees who fulfill this commitment through our business activities, and so we believe that employees are the source of new value creation and the Group’s sustainable growth. We have formulated human resources strategies in the FY2031 Strategy to serve as the foundation for this and are investing in various measures. We will continue to view our employees as human capital and maximize their value to facilitate the growth of both individuals and the Company.

The two key pillars of the human resources strategies in the FY2031 Strategy are “Maximizing the value of human resources and creating an organization dedicated to winning” and “Building a foundation for co-creation and growth.”
In order to “win” by developing the strengths of each employee and getting the most out of them—to achieve the targets in our management strategies and do things right and with conviction—we are working on various initiatives, including next-generation leadership talent development, fulfilling hiring needs in a shorter time, rolling out job-/role-based HR systems (job-based HR system for managers and role-based HR system for non-managers), enhancing performance management and promoting autonomous career development.
We are also working on initiatives such as DE&I, improving employee engagement and strengthening talent management through multifaceted use of talent information. The purpose of these efforts is to build the foundations for growth through co-creation among employees and between employees and the Company, namely the awareness, culture and structure that form the basis supporting various measures related to human capital.
Our measures are wide-ranging but we will ensure that the results of all of our measures interconnect organically and invest in addressing labor shortages and enhancing our human capital to contribute to accomplishing the FY2031 Strategy.

We have established the position of an Executive Officer overseeing the Group’s human resources strategies (CHRO), a department in charge of human resource functions and Company human resource functions including HRBPs (HR Business Partners). These work together to strengthen our human resources functions. Through discussions on issues concerning human capital by the Human Resources Committee, whose members include all Executive Officers and the HRBPs, and measures such as selection of candidates for next-generation leadership talent development and reviews of those candidates’ development plans, we implement various measures that combine our management strategies and human resources strategies. We also hold Town Hall Meetings where we communicate with each employee about the beliefs behind our human resources strategies and various initiatives, which provides opportunities for two-way dialogue.
The Board of Directors regularly monitors these human capital initiatives and reviews Executive Officers’ succession plans, and actively works on initiatives such as meetings and dialogue between Directors and next-generation leadership talent.
The Board of Directors regularly monitors these human capital initiatives and reviews Executive Officers’ succession plans, and actively works on initiatives such as meetings and dialogue between Directors and next-generation leadership talent.

In our human resources strategy, we have established three key KPIs to assess implementation status and effectiveness.

Continuous retention and development of management leader candidates

For the Group to continue to grow over the medium to long term, we need to develop management leaders who will drive the growth of the Group. Therefore, we select and develop human resources as potential future management leaders in line with the Next-Generation Leadership Talent Development Program. We will continue to increase the number of management leader candidates developed through this program. We have set a target of increasing the percentage of candidate Executive Officers that are candidates selected for the Next-Generation Leadership Talent Development Program to 80% by the fiscal year ending March 2031. It was 51% in the fiscal year ended March 2023 and 69.7% in the fiscal year ended March 2025.

Next-Generation Leadership Talent Development Program

We established the training system: “Next-Generation Leadership Talent Development Program” in the fiscal year ended March 2006, and have developed future leaders with the aim of training qualified candidates for Executive Officer positions. Against the backdrop of four management reforms and human resource reforms, we revised the program in the fiscal year ended March 2023. Under the new program, we will select high-potential talent from younger generations, and shifting from the previous training-centered approach, formulate development plans that emphasize work experience. With this as a basis, we are developing future leadership talents with cross-divisional and Group-wide perspectives. Further, we plan to operate the program with a view toward the gradual development of future leadership talent for Group companies starting in the fiscal year ending March 2026.

Ensuring diversity at decision-making levels

We believe that the development of innovation that is not constrained to existing frameworks is needed for the sustainable growth of the Group. Fostering awareness and a corporate culture of retaining and developing a diverse range of human resources, exhibiting mutual acceptance of diverse individual qualities and creating new value from differing views is essential to achieving this. Given this understanding, we have set a target for raising the percentage of diverse attributes in management positions (women, non-Japanese, mid-career hires, people with disabilities) from the 16% achieved in the fiscal year ended March 2021 to 30% by the fiscal year ending March 2031. As a result of various measures we have implemented, 27.0% of managers met our diversity standards in the fiscal year ended March 2025, which indicates that we achieved our target for the end of March 2026 one year early.

Percentage of women in management positions

We have set the target of increasing the percentage of women in management positions to 5.0% by the end of March 2026. At the end of March 2025, 3.9% of employees in management positions were women. The change in this percentage since the fiscal year ended March 2018 is as follows.

The number and ratio of female Directors and Executive Officers in the fiscal year ending March 2026 are as follows. All four figures increased year on year.

Numbers of Female, Non-Japanese and Mid-Career Hire Managers

We have set the targets of increasing the number of female or non-Japanese managers by approximately 2.5 fold and the number of managers that were hired mid-career by approx. 1.5 fold compared with the end of March 2021 by the end of March 2026. As of the end of March 2025, the number of female managers had increased 1.7 fold, the number of non-Japanese managers had increased 1.5 fold, and the number of managers hired mid-career had increased approx. 1.6 fold.

In Japan, the working-age population is declining, and the chronic labor shortage in the manufacturing industry is becoming permanent, while in the overseas businesses in which we operate, difficulties acquiring talent are accelerating and there is a trend of turning away from manufacturing. In addition to this backdrop of external factors, internally, retirements for personal reasons are increasing along with diversification of working style.
As a result, we will continue to address labor shortages by promoting the following measures and organically linking them to the results of all other HR initiatives.

• Streamlining and elevating the recruitment process and increasing awareness
• Enhancing recruitment by diversifying contact points for candidates and starting alumni recruitment
• Establishing workplace environments that allow for a variety of work styles
  ▶For details, please refer to Support for Diverse Working Styles.
• Shifting from uniform HR management to HR management based on individuals' diverse values
• Thoroughly reform business processes by promoting efficiency, labor saving, and workload saving

To enhance retention and development of human resources who can support our business growth, we are working to assist in career development by providing employees with opportunities for self-growth.

• Activation of the Internal Job Posting System (relaxing criteria for eligibility and expansion of internal communication)
• Holding a career event so that people can learn about jobs at MMC, get to know employees and develop a vision for their career, aiming to increase employees’ awareness of self-directed career development opportunities (lectures by experts, round-table talk by employees with experience of Internal Job Posting, overseas postings, side jobs/side businesses and childcare leave, etc.) (from the fiscal year ended March 2024)
• Providing opportunities to consult outside career counselors (for managers) (from the fiscal year ended March 2024)
• On-demand online learning courses and providing correspondence education to provide support for re-skilling

In the fiscal year ending March 2025 we redesigned our training system for non-union members. Based on the recognition that improving management skills is essential for achieving the FY2031 Strategy, the new training system will shift to a curriculum more focused on management issues. We will work to enhance employees’ management skills by combining theme-specific training such as “transformational skills” and “the ability to cultivate self-directed talent” with complementary skills-based training including thinking and interpersonal skills.
We also view it as important for employees to develop their careers in a self-directed manner and develop their abilities proactively. To reflect this, we offer “Career Design Training” for employees across various age groups and provide career development support through interviews with career advisors.
At the same time we are improving support for self-development based on the provision of an online learning video service and correspondence education.
These training measures and the growth employees achieve through experiences in their day-to-day work are closely connected, and we make every effort to cultivate talent and foster an organizational culture of adapting flexibly and promptly to changes in society and the business environment while taking on challenges.

Talent Development System (non-consolidated)

Under our union shop scheme, we respect collective bargaining rights and freedom of association as the basic rights of workers, thereby striving to maintain a good labor-management relationship. The scheme also enables us to share information and exchange opinions between labor union and management on a regular basis. In particular, our biannual Labor-Management Conference, which is held within a year with the Mitsubishi Materials Federation of Labor Unions, is aimed at strengthening solidarity through active discussion, covering subjects such as recent issues, strategies and policies in each sector, and establishing a shared direction in the interests of the Company’s sustainable growth for the future.
Also, management spends substantial time on careful explanation and consultation with labor upon facing such events as proposal of measures. The current number of union members amongst those directly employed by Mitsubishi Materials (including employees on assignment) stood at 3,989. Including labor unions of Group companies that belong to Mitsubishi Materials Federation of Labor Unions, the total number of members was 6,184 (as of April 2025).

We have stipulated our basic policies regarding Diversity, Equity and Inclusion in the Basic Policy on Corporate Governance, Sustainability Policy, and Human Rights Policy. We have also established the Guidelines for Support of Women’s Development and Advancement as our policy on promotion of women's development and advancement.
We have posted these basic policies in our internal HR portal website and continue to inform and cultivate the policies for all employees through activities such as explanations during internal training programs.

Basic Policy on Corporate Governance (Excerpt)

Based on the belief that employees are the source of new values and the Group’s sustainable growth, we aim to maximize organizational performance by creating workplace environments in which team members with diversity in every respect, including race, religion, gender, sexual orientation and gender identity, age, disability, nationality, national origin, social origin, and professional background, can coexist, and recognize one another in an equitable manner, and actively demonstrate their individual abilities at their very best. (Article 10)

Sustainability Policy (Excerpt)

We embrace diversity and acknowledge its importance in creating new value. We will promote Diversity, Equity and Inclusion as a source of sustainable growth within the Group. (Article 3)

Human Rights Policy (Excerpt)

We aim to build workplaces where team members with diverse attributes, values, and experiences can coexist, and respect one another in an equitable manner, and where individuals can work confidently with a sense of growth and fulfillment as they elevate each other and demonstrate their capabilities to the full. (Article 8)

We are pushing forward with initiatives to establish an environment which enables all of our employees, who are diverse, to proactively demonstrate their capabilities.

We have set a target of 100% for male employees to take childcare leave from the fiscal year ended March 2023 onward. In the fiscal year ended March 2025, this figure was 79.5% (+2.6% year on year) and the average number of days of childcare leave taken was 73 days (+22 days year on year). In the fiscal year ending March 2026, we are implementing new measures and actively working to achieve the goal, including manager training on the management of male employees’ childcare leave, the provision of opportunities to attend fathers’ classes, and the distribution of videos.

We engage in a range of initiatives to promote the employment of people with disabilities.
An action plan regarding the employment of people with disabilities for the entire company, including plants, was formulated, and their work areas were expanded. As a result, 2.9% of employees were employees with disabilities as of the end of March 2025. This exceeds the statutorily required percentage, which will be raised in July 2026. Many employees with disabilities work at the Marunouchi Head Office and the Saitama Office, a “model workplace for disabled employees” aimed at enabling people with disabilities to learn, grow and contribute to society through their work.
At the Marunouchi Head Office, we mainly provide jobs such as cleaning and sterilization of the cafeteria and work in the mail room. At the Saitama Office, in addition to cleaning and sterilization of the cafeteria and training and accommodation facilities and work in the mail room, the jobs include maintaining greenery on company premises, and producing business cards, including for the Group companies. We assign guidance staff to each workplace to respect the individuality and potential of each employee with a disability, innovate and improve how they work, and to foster their growth in a way that promotes a sense of fulfillment and job satisfaction.
We also accept the internship of students from local schools for special needs education, actively hold events such as company tours, and support the employment of students attending schools for special needs education, such as by motivating them to work at a company through these activities.

In June, which is Pride Month, we held an event at our office jointly with two companies from other industries. This event attracted approximately 120 participants including people who participated online.
Following an introductory lecture that included basic knowledge about LGBTQ+ issues, the participants watched the short Musuko-to Yobu Hi Made (Until the Day I Call Her My Son), which depicts the daily life of a transgender individual and his relationship with his family. This was followed by a panel discussion by Ayumi Kurokawa, who directed the film, and Takayuki Goda, the lead actor. As a transgender individual himself, Mr. Goda talked about his valuable experiences, including how he interacts with his family, the anxieties and conflicts he felt when looking for a job, and how people in his workplace reacted. In the subsequent group discussion, participants had a lively exchange of opinions around the theme of the discussion, my feelings regarding a scene in the film, beyond the boundaries between companies. The event provided people with an opportunity to increase their understanding of LGBTQ+ issues from a different perspective than usual.
We will continue to promote people in the Group and in society’s understanding of LGBTQ+ issues by supporting the activities of TRAM (Together, Rainbow, Ally, MMC Group), which is the ally community within the Group, and exchanging opinions with the ally communities within other companies. This event and other activities have established new relationships between these communities.

We have received a "Gold" award in the PRIDE Index 2024^*, which is an evaluation index of corporate engagement with LGBTQ+ and other sexual minorities.

An event facilitating interactions between employees raising children and their babies was held jointly by the Mate-Tomo Community, an employee community focused on work and childcare, and the head office labor union.
At the beginning of the event, midwives gave mini-lectures on themes such as why contact with your baby is important and the involvement of society in parenting. Following this, participants interacted with babies while asking employees questions about childcare leave and working arrangements after returning to work. They also tried on maternity jackets and practiced holding babies using a baby doll while listening to stories about pregnancy experiences from midwives. The event was an opportunity for attendees to become more familiar with pregnancy, childbirth, and childcare.
We will continue to push forward with the creation of a corporate culture of mutual respect by learning about our colleagues’ lifestyles and their many different values during events like this, in addition to training sessions and seminars.

Click here to learn more about our Diversity, Equity & Inclusion.

We promote creating working environments that enable our employees to strike a balance between their work and their home life. We strive to develop and expand a variety of support systems in order to create an environment where every employee can take on the challenge of career advancement while realizing a work style that suits the events in their lives.
In the fiscal year ended March 2023, we introduced a Work-from-home System for the entire Company, including plants, to help employees work with more flexibility while improving productivity, as well as a Remote Work System for managers. We also abolished the core times from the flextime systems in place at our Head Office locations and some of our other business sites, supporting employees in adopting a more flexible way of working. In the fiscal year ended March 2024, we introduced a trial system for side jobs/side businesses and in the fiscal year ending March 2025, we began full-scale operation of this system.
To reduce long working hours, we have formulated a policy, targets for total working hours, and action plan, and are working to reduce overtime hours and encourage employees to take paid leave in accordance with the actual conditions at each business site, while holding labor-management meetings of the Shorter Working Hours Study Committee.
The Company is a signatory to the United Nations Global Compact and supports the Ten Principles of the Compact in four areas (human rights, labor, environment and anti-corruption). In the Group’s human rights policy, we state our commitment to respecting applicable international norms concerning human rights in the countries and regions where we do business, observing relevant laws and regulations, and appropriately managing employee working hours, holidays, leave and wages.

For details, please refer to "Promotion of flexible work styles" under "Diversity, Equity & Inclusion".

As of April 2021, we have extended the mandatory retirement age from 60 to 65 years old, as a measure to secure stable employment and improve the treatment of senior employees, to enable them to work with peace of mind, and to further increase their motivation. In addition, we are catering to the needs of individual employees by incorporating options such as selective retirement age and re-employment with shorter working hours, taking the state of health and life plans of each employee into account.

This "Human Rights Policy of the Mitsubishi Materials Group" (the "Policy") was established based on the Sustainability Policy and is considered to be the foundation of the business activities of the Mitsubishi Materials Group.
The Mitsubishi Materials Group understands that its business may directly or indirectly have an impact on human rights across all areas of its operations, from procurement of raw materials to the development, manufacturing, distribution, consumption, disposal, and recycling of materials and products.
This Policy applies to all executives and employees^*1 of the Mitsubishi Materials Group companies^*2.

We expect our business partners to support and practice this Policy and aim to work together towards the promotion of respect for human rights.

1. Respect for International Human Rights Norms

The Mitsubishi Materials Group respects the human rights stipulated in the International Bill of Human Rights^*1 and the Declaration on Fundamental Principles and Rights at Work^*2 of the International Labour Organization (ILO) and understands them to be the minimum standard to be observed. We also support international human rights norms such as the Guiding Principles on Business and Human Rights and the 10 principles of the UN Global Compact^*3 and conduct our business activities in line with these principles.

The Mitsubishi Materials Group complies with the laws and regulations applicable in the countries and regions where we conduct our business activities. In cases where there is a conflict between internationally recognized human rights and the laws and regulations of the country or region in which we operate, we will seek ways to honor the international principles while complying with the laws and regulations.

2. Governance and Promotion Structure

The Sustainable Management Office regularly reports on the status of compliance with this Policy and the Group‘s human rights efforts to the Executive Officers’ Meeting and the Board of Directors of the Mitsubishi Materials Corporation, and promotes the efforts under the supervision of the Board of Directors.

3. Human Rights Due Diligence

The Mitsubishi Materials Group conducts due diligence to identify, assess, prevent, and mitigate negative human rights impacts related to its business activities.
Where we identify that our business activities are causing or contributing to negative human rights impacts, we will take appropriate measures to correct and remedy the situation.
 

4. Stakeholder Engagement

The Mitsubishi Materials Group recognizes the importance of understanding human rights issues from the perspectives of stakeholders whose human rights have been or may be impacted. We further recognize that there are vulnerable or marginalized groups which require special consideration.
Therefore, we will continue to engage in constructive dialogue with relevant stakeholders to understand, improve and address human rights issues.

5. Grievance Mechanisms

The Mitsubishi Materials Group promotes a culture of free and open communication. Employees may consult with their superiors regarding human rights concerns and/or report such concerns to our internal whistleblowing system.
We have also established a "Responsible Minerals Sourcing Hotline" which is available to internal and external stakeholders for any concerns or violations of the Responsible Minerals Control Policy.

To identify and respond to the human rights concerns of our stakeholders in a timely manner, we work to establish an effective reporting and grievance handling system.

6. Training and Awareness-Raising

The Mitsubishi Materials Group provides all executives and employees of each Group company with the training and capacity building necessary to put this Policy into practice.

7. Reporting and Disclosure

The Mitsubishi Materials Group periodically discloses the progress of efforts based on this Policy.

8. Commitment to Human Rights Issues

• Prohibition of Forced Labor and Human Trafficking
  We do not permit forced labor. We also do not tolerate modern slavery in any form, including bonded labor and human trafficking.
   
• Prohibition of Child Labor
  We prohibit child labor and observe the statutory minimum working age. In addition, we do not allow young workers to engage in hazardous labor.
   
• Prohibition of Discrimination
  We do not tolerate any form of discrimination based on race, religion, gender, sexual orientation and gender identity, age, disability, nationality, national origin, social origin, or personal history.
   
• Prohibition of Harassment
  We do not tolerate behavior, whether physical or psychological, which threaten the dignity of individuals. These include power harassment, sexual harassment, harassment related to pregnancy, and other forms of harassment such as those related to childcare and nursing care leave.
   
• Promotion of Diversity, Equity and Inclusion
  We aim to build workplaces where team members with diverse attributes, values, and experiences can coexist, and respect one another in an equitable manner, and where individuals can work confidently with a sense of growth and fulfillment as they elevate each other and demonstrate their capabilities to the full.
   
• Respect for Freedom of Association and the Right to Collective Bargaining
  We engage in constructive dialogue between labor and management and respect the freedom of association and the right to collective bargaining.
   
• Working Hours and Wages
  In accordance with the laws and regulations applicable in the countries and regions in which we operate, ｗe duly manage employees' working hours, holidays, vacations, and wages.
   
• Occupational Safety and Health
  In accordance with the laws and regulations applicable in the countries and regions in which we operate, we protect the safety and health of employees and aim to create workplaces that are conducive to maintaining mental and physical wellbeing.
   
• Respect for Privacy
  We respect and protect the privacy of individuals. When handling personal information, we comply with relevant laws, regulations, and internal rules.
   
• Impact on Local Communities
  We recognize that the Group’s business activities may have an impact on local communities such as the health of local residents, land rights, access to water, and indigenous peoples’ rights. We respect local cultures and customs, engage in dialogue and consultation with local communities, and take necessary actions in accordance with relevant international norms to prevent and mitigate any negative impact on the rights of local residents.
   
• Responsible Procurement of Raw Materials and Minerals
  We work together with our suppliers to procure raw materials and minerals in a responsible manner. Specifically, we ensure that our suppliers are fully aware of our procurement guidelines and conduct supplier evaluations. We also work together with our suppliers to promote cooperation with industry associations and international initiatives.
   
• High Risk Circumstances
  In the event that we are confronted with a specific situation or environment where there is a high risk of human rights abuses, we, based on the basic principle of respect for human rights, will strive to prevent such abuses with the utmost care.

Stipulated on December 1, 2021
Last Revised on December 13, 2021

In developing our businesses globally, we believe that it is essential not only to comply with the laws and regulations of each country, but also to respect international human rights standards. For this reason, the Mitsubishi Materials Group established the Human Rights Subcommittee under the Sustainable Management Office (now known as the SCQ Promotion Office) in July 2021, and that December established a Human Rights Policy in compliance with the UN Guiding Principles on Business and Human Rights. The Human Rights Subcommittee consists of people that are in charge of human rights measures at the corporate divisions and business divisions who have expertise in different areas to ensure the Committee can perform at a high level and provide necessary advice to each site and Group company, thereby promoting effective activities. Furthermore, reports are regularly submitted to the Executive Officers’ Meeting and the Board of Directors via the SCQ Promotion Office.

To prevent or mitigate the negative impacts its business activities have on human rights initiatives, the Mitsubishi Materials Group drives human rights due diligence within Group companies in Japan and overseas as we seek to reduce human rights risks. We also drive collaborative initiatives with our business partners. We have established a PDCA cycle to identify and review assumed risks based on the results of fact-finding surveys on human rights issues, and continually implement it. We will further instill it internally through human rights awareness training and other measures.
Since the fiscal year ended March 2023, we have been working on the following three items in accordance with the United Nations Guiding Principles on Business and Human Rights in order to identify, mitigate and prevent the negative impacts our business activities have on human rights, and to take responsibility for how to address those issues.

• Dissemination of commitment to human rights policy
• Implementing human rights due diligence
• Remedial action (processes that enable remedial action for negative impact on human rights caused or promoted by businesses)

１．Commitment under the Policy
We have signed the United Nations Global Compact (UNGC), and also take part in Global Compact Network Japan (GCNJ), the local network of UNGC in Japan. We participate in GCNJ activities related to our business, gather relevant information and utilize it in the formulation of measures related to human rights.
Additionally, we implement the various training programs listed below to promote people’s understanding of these policies related to respect for human rights and various human rights issues. In particular, regarding forced labor and child labor, the content of these programs includes case studies and discussions that permit employees to proactively learn how to address human rights issues which have occurred.

• Corporate governance training for corporate officers of Group companies in Japan and other countries
• Compliance training for managers of overseas Group companies
• Compliance training for employees of the Company and Group companies in Japan
• Human rights training for employees of the Company and Group companies in Japan
• Human rights training for overseas Group companies (provided in seven languages)

In addition to the above, we have appointed an Officer and staff to be responsible for the promotion of human rights training programs, and they regularly receive external training. We also dispatch staff from the Corporate Division to GCNJ subcommittees.

２．Implementing Human Rights Due Diligence

(1) The Group began establishing a human rights due diligence system in the fiscal year ended March 2023. In the fiscal year ended March 2024, we distributed the SAQ to a total of 105 sites, including Company sites and Group companies, to identify human rights risks by analyzing SAQ responses.
Analysis of responses to the SAQ distributed from the fiscal year ended March 2023 to the fiscal year ended March 2024 revealed that there were several locations where harassment had occurred in the previous five years, and there was a lack of commitment to prohibiting discrimination in the hiring process, so we identified “harassment” and “discrimination in the hiring process” as human rights risks for the Group. 
In addition, based on the results of the analysis of the responses to the SAQ conducted in the fiscal year ended March 2023 and the fiscal year ended March 2024, we created a roadmap for initiatives regarding respect for human rights for the five years from the fiscal year ended March 2025 to the fiscal year ending March 2029. The roadmap and key measures are detailed below. To continue our efforts in human rights due diligence in the future, we have formulated the Mitsubishi Materials Group SAQ Operation Manual, which contains the knowledge we have gained from past initiatives, covering everything from human rights risk assessment and identification to follow-up procedure and how to formulate and implement improvement plans.

In the fiscal year ended March 2025, we continued to improve systems to prevent and reduce human rights risks in our supply chain and business activities led by the Executive Officer responsible for human rights risks. Regarding harassment, one of the human rights risks that the Group as a whole is exposed to, we held awareness-raising workshops to prevent harassment at sites where intensive countermeasures were necessary. We also address discrimination in the hiring process by enhancing DE&I measures.
  Further, regarding the human rights risks faced by individual Company sites and Group companies, we planned and implemented risk reduction measures regarding the human rights risks that needed to be addressed at the Company sites and within the Group companies based on results of the analysis of the responses to the SAQ conducted by the Company and Group companies in the fiscal year ended March 2023 and the fiscal year ended March 2024. In the implementation of these risk reduction measures, we considered international human rights treaties and standards and the characteristics of the Company, identified forced labor, child labor, harassment, freedom of association, occupational safety and health, environmental issues, and responsible mineral sourcing as priority risk areas, and we prioritized improvement measures in these areas.
We completed measures to address 225 of the 232 risks that we determined should be addressed by February 2025 (97.0% of the risks). We have established a system under which the status of the implementation of these risk reduction measures is reported regularly to the SCQ Promotion Office, which consists of the CEO, which is its General Manager, Executive Officers of related departments who are the office’s Deputy General Managers, General Managers of related departments, and other staff, to encourage the proactive reduction of human rights risks. Further, we proactively share information about our progress in the reduction of risk and best practices with the personnel in charge of such matters from each business division and the Corporate Division. Below are some examples of these initiatives.
(2) Human rights due diligence in the supply chain
As the roadmap shows, in the fiscal year ended March 2025, we expanded the scope of our human rights due diligence activities to include companies that provide services on the premises of our sites or in similar places and companies to which we outsource the processing of our products. 

(2)Human rights due diligence in the supply chain
As outlined in our roadmap, in the fiscal year ended March 2025 we expanded the scope of our human rights due diligence to include companies providing services on our company premises and companies to which we outsource the processing of our products. Please refer to the section “Suply Chain Management” – “Operating CSR Procurement Guidelines for the Procurement & Logistics Division” within our Sustainability Report.

３．Remedial Measures

For employees of the Group, we have established reporting and consultation offices in Japan, and also field consultations regarding human rights. Our reporting and consultation offices began to comply with the revised Whistleblower Protection Act in June 2022, developing systems to strictly guarantee confidentiality and implement remedial measures. We also raise awareness through training and other measures in an effort to improve the effectiveness of these systems.
We have set up a contact to receive inquiries regarding human rights from outside the Group on our corporate website, and we are considering enhancements to further expand the functionality of contact points in the future.

Of the forests owned by our company, eight forest areas in the prefecture have obtained SGEC forest certification. The SGEC has established guidelines for FPIC (It stands for Free, Prior and Informed Consent and consists of three elements: Free Consent, Prior Consent and Informed Consent.) implementation for the Ainu people. We understand the necessity of FPIC implementation and are implementing activities in accordance with the guidelines.
In our company-owned forests, which are located in various areas of Hokkaido, we report on our forest activities and conduct hearings with the Hokkaido Ainu Association and Ainu associations in the municipalities where our forests are located. Through these activities, we confirm opinions and requests regarding our company forests, and strive to contribute to the preservation of Ainu customs while building and maintaining good relationships.