Overall Human Rights Due Diligence

Human Rights Risk Assessments

In fiscal 2021, the IHI Group underwent a human rights risk assessment to identify potential and obvious human rights issues.
Based on the results of this assessment, over the three years from fiscal 2022 until fiscal 2024, the Group conducts human rights impact assessments that focus on any identified issues, analyzing and evaluating them to understand the current situation and their degree of impact.

Approach to the 2021 Human Rights Risk Assessment

Material Human Rights Issues

Progress of Human Rights Impact Assessments

We began carrying out human rights impact assessments at IHI Group sites worldwide to understand the actual state of material human rights issues. An overview of the human rights impact assessment conducted in fiscal 2022 is as follows.

Target：59 IHI Group affiliated companies outside Japan (Group companies thought to have relatively high risk in human rights risk assessments)

Assessment details：Survey (including interview surveys conducted remotely for some companies) using the IHI Group Human Rights Due Diligence Self-Assessment Questionnaire created while referencing the IHI Group Human Rights Policy structure and the UNGP as well as the UNGP reporting framework and items verified by ESG assessment organizations in human rights and labor sections

Identified issues：In companies’ survey results, no serious human rights violations that would contravene standards required by international norms were found. However, the following three issues were observed and measures for each are being implemented.

1. General trends observed included insufficient development of grievance (remediation) mechanisms available to external stakeholders, a lack of dialogue with internal and external stakeholders, and a delay in initiatives concerning diversity, equity, and inclusion (DE&I) initiatives to ensure equal opportunity and treatment of employees. We are currently promoting Group-wide measures for these points.
2. At eight companies, we found that regulations regarding compliance with prohibitions on child labor, as well as occupational health and safety policies, were insufficient. The internal regulations and rules for this matter have been adjusted accordingly at each company.
3. Awareness of material human rights issues in the IHI Group among the employees in charge of human rights in each Group company was insufficient. To prompt this understanding by staff at IHI Group companies inside and outside Japan, we are creating guidelines for material human rights issues (in Japanese, English, and Chinese) in fiscal 2023 and will conduct education at affiliated companies.

Equal Opportunity for All

We are promoting diversity, equity, and inclusion (DE&I) based on the IHI Group Human Rights Policy, by respecting diversity and individuality and striving to ensure fair employment, fair labor practices, and equal opportunity as well as creating workplaces free of harassment.
We recognize the freedom of employees to unionize and work together as a labor union and union members. Our Group will never treat anyone involved in the union unfairly. We also engage in collective bargaining efforts in good faith, founded in mutual trust with the labor union.

No Tolerance for Discrimination and Harassment

We have conducted awareness-building and educational activities to prevent harassment and have taken steps to create conditions that facilitate employees consulting the Company when there is a problem. Based on the groundwork we have created to allow the Company to learn of incidents of harassment, we have announced an IHI Group policy to IHI Group employees on strict measures to address incidents of power harassment.

Environmental and Human Rights Evaluations in New Business Investment

When participating in new business projects, as of fiscal 2023 we conduct environmental and human rights impact evaluations, encompassing climate change countermeasures, waste, soil contamination, and biodiversity, using the ESG Checklist (Environment, Human Rights)^*. For human rights violation risks, we conduct an internal review from the standpoints of ethnic minority and indigenous people’s rights, prohibition of involuntary relocation of residents, and ensuring occupational health and safety at project sites. In investment and lending projects, we also verify the human rights promotion structure and human rights issues at the investee prior to any acquisition.

ESG Checklist: The ESG Checklist was created while referencing the International Finance Corporation Performance Standards and the Japan Bank for International Cooperation Guidelines for Confirmation of Environmental and Social Considerations.

Participation in Third-party Initiatives for Human Rights

We have endorsed the Ten Principles of the United Nations Global Compact. As part of this, we have been participating as a member of the Global Compact Network Japan since 2022. We have deepened our understanding of respect for human rights, human rights due diligence, and various types of human rights education in related workshops.
In fiscal 2022, we participated in the B+HR Academy organized by the United Nations Development Programme. Members of the Human Rights Task Team were able to systematically learn about human rights due diligence through lectures by Japanese and international experts on human rights and group work with participating companies.

Survey on Foreign Technical Intern Trainees

In fiscal 2022, we conducted surveys for three affiliated companies that had a record of directly employing foreign technical intern trainees in the fiscal 2021 survey. We confirmed that one company had received foreign technical intern trainees. We will maintain appropriate working conditions through continuing to conduct regular surveys.

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