Sustainability

Respect for Human Rights

Basic Principles Regarding Respect for Human Rights

Corporate Philosophy

Fuji Electric Group's corporate philosophy is "to pledge as responsible corporate citizens in a global society to strengthen our trust with communities, customers and partners and fulfill its mission with integrity", and the missions are “to contribute to prosperity”, “to encourage creativity”, “to seek harmony with the environment” through any business activity, and thereby to contribute to the realization of a sustainable society.

Corporate Code of Conduct

Fuji Electric has established the "Code of Conduct" which sets out eight standards as the basis for decision-making and behavior for Fuji Electric and its employees to enable Fuji Electric and every single employee to understand and comply with relevant laws and regulations/international rules and their spirit both in Japan and overseas, and to act with high ethical standards in order to put the "Corporate Philosophy" into practice and fulfill their social responsibilities.

These standards apply to all officers and employees (including temporary workers) of Fuji Electric Co., Ltd. and its affiliated companies.

Code of Conduct Regarding Respect for Human Rights

The first item in this standard is "Respect and value all people," and it clearly states that we will "respect human rights in our relationships within all corporate activities."
The company has clarified its policy to "conduct human rights due diligence to recognize, prevent, and deal with adverse human rights harm based on international human rights regulations such as the Universal Declaration of Human Rights and the United Nations Guiding Principles on Business and Human Rights."

With regard to the supply chain, setting out to “Respect and value our business partners” , we have established the "Fuji Electric CSR Procurement Guidelines" to build a supply chain that supports a sustainable society, including respect for human rights, thereby clarifying our policies for promoting procurement activities, together with our business partners.

Fuji Electric understands that its business activities have an impact on human rights, and will take into consideration the views of all stakeholders involved in all business processes.
We respect human rights and strive to prevent and mitigate any negative impacts that our corporate activities may have on human rights, thereby contributing to the realization of an inclusive society.

Code of Conduct Regarding Establishing a Governance System

Fuji Electric has stated that "Top management will thoroughly practice this standard," and to put this standard into practice, Fuji Electric management will build and promote soundness, efficiency, transparency, an effective governance system, and a compliance system that ensures thorough compliance with laws and social norms. This standard will be shared with all employees and communicated to partners, etc., as well as supply chains.

These standards were established following deliberation at the Executive Committee, an advisory body to the Representative Director, Chairman and CEO and Representative Director, President and COO, and reporting to the Board of Directors.

Respect for International Norms Regarding Human Rights

In its efforts to respect human rights, Fuji Electric will comply with the laws and regulations of the countries and regions in which it conducts business, and in particular will support and respect the following global principles and norms.

Governance System Regarding Human Rights

Fuji Electric has established the "Sustainability Committee" (formerly the SDGs Promotion Committee)*1, consisting of executive officers from business, sales, and corporate divisions, to discuss, promote, manage, and evaluate policies and initiatives concerning the environment, human rights and human resources empowerment, and sustainable supply chains. Matters discussed by the Sustainability Committee are regularly reported to the Executive Committee, comprising all executive officers, as well as to the Board of Directors.

With regard to the human rights of employees within the Fuji Electric Group, the company has established the “Human Rights Promotion and Human Resources Empowerment”*2 under the Sustainability Committee, chaired by the executive officer in charge of human resources. This subcommittee discusses and evaluates policies and measures related to “embedding respect for human rights into management practices,” “promoting the active participation of diverse human resources,” and “enhancing job satisfaction.” In addition, “Human Rights Awareness Promotion Committee”*3 have been organized at each business site and consolidated subsidiary in Japan and overseas, creating a framework to ensure thorough compliance with human rights.

For respect for human rights in the supply chain, the corporate procurement division collaborates with related divisions, such as the sustainability promotion division, to plan and implement measures addressing issues related to sustainable supply chains, including human rights.

*1 Sustainability Committee:
Chaired by the Senior Managing Executive Officer, Head of Corporate Management Planning Headquarters, with the executive officers in charge of Environment, Human Resources, and each business segment serving as committee members. The committee convenes twice a year.
The Human Rights Promotion and Human Resources Empowerment is established as a standing subcommittee of the Sustainability Committee, and is responsible for discussing and evaluating various related policies and measures.

SDGs Promotion System

*2 The Human Rights Promotion and Human Resources Empowerment:
Headed by the Managing Executive Officer in charge of the Human Resources and General Affairs Office, the subcommittee shares human rights issues across Fuji Electric and plans and formulates company-wide policies and measures.
The subcommittee meets twice a year in principle to summarize activities based on the annual policy, and to consider and plan measures for individual issues.

*3 Human Rights Awareness Promotion Committee:
At each business site and subsidiary, a Human Rights Awareness Promotion Committee is organized with the business site manager, human rights officer, etc. as chairperson.

Priority Issues of Human Rights

Fuji Electric regards the following human rights issues as priority issues that should be addressed in all processes of its corporate activities, and will address them through appropriate procedures.

Specific Policies Regarding Respect for Human Rights

Policy for Human Rights of Employees

Based on the "Code of Conduct," Fuji Electric has established the "Policy for Human Rights of Employees" with the aim of respecting the basic human rights of all employees working in the Fuji Electric Group. In formulating the policy, we have referenced international standards and guidelines on human rights and have established policies on specific human rights issues.
This policy has been translated into various languages and deployed to each country's business site, and also made into posters and displayed in the workplaces of each business site.

In addition, to promote the dissemination of the "Policy for Human Rights of Employees," the Fuji Electric Group has established the "Guidelines on Employee Human Rights" and is distributing them throughout Japan and overseas.
The "Guidelines on Employee Human Rights" was formulated based on international standards such as the RBA Code of Conduct, and specifically state the matters that should be addressed with regard to each item in the "Policy for Human Rights of Employees."

Policy Regarding Supply Chain

Based on the “Fuji Electric Code of Conduct”, Fuji Electronic Group clarifies in its purchasing policy that it seeks business partners with adherence to its behavioral guideline of “fair trade” from around the world who have excellent competitiveness, and are considerate of corporate social responsibility. And our policy is to build a better partnership, deepen mutual understanding, and strive to maintain and improve cooperative relationships with every business partner through equitable/fair trade with free competition that does not discriminate between domestic and international ones.

In addition, to specifically realize this policy, we have set out the “Fuji Electric Group CSR Procurement Guideline” in compliance with the RBA Code of Conduct and requests for understanding and practice of this guideline including efforts to respect human rights, targeting at every business partner and its supply chains.

Human Rights Due Diligence

In light of the UN “Guiding Principles on Business and Human Rights”, Fuji Electric will fulfill its responsibility to respect the human rights of all stakeholders involved in our corporate activities.
To achieve this, we continually conduct "human rights due diligence" to identify, prevent, mitigate, and address potential adverse impacts on human rights.

Initiatives for Employees of Fuji Electric

We conduct a survey and evaluation of the current situation regarding human rights and labor using a self-assessment question (SAQ) that complies with the latest international standards at all domestic and overseas business sites and consolidated subsidiaries.

In fiscal 2024, based on the “Guidelines on Employee Human Rights” and the “Human Rights and Labor Assessment Sheet”, we conducted a human rights risk analysis using SAQ at all 79 domestic and overseas business sites and consolidated subsidiaries (41 in Japan and 38 overseas), including temporary staff. Compared to fiscal 2022, improvements were observed in items such as “dissemination of the human rights policy” and “prohibition of discrimination and inhuman treatment.” However, there were still many items related to “safety and health” that remained unfulfilled, and we continue to implement measures at six subsidiaries where efforts have been insufficient.

Furthermore, we conduct fair recruitment and selection processes, and have presented the “Guidelines on Employee Human Rights” to staffing and outsourcing companies that have contract relationships with Fuji Electric Group companies, requesting both their endorsement and implementation of our human rights policy. Through these efforts, we promote respect for the human rights of not only directly employed staff but also all individuals who work together with us.

Supply Chain Initiatives

To prevent human rights risks in its supply chain, Fuji Electric conducts an annual CSR self-assessment of major suppliers that account for the top 80% of its transactions, checking their compliance with the Fuji Electric CSR Procurement Guidelines and requesting improvements.

In fiscal year 2024, among approximately 6,200 suppliers across the Fuji Electric Group, we targeted the top 80% based on purchase performance over the past three years (fiscal years 2021–2023), totaling 875 key suppliers (728 in Japan and 147 overseas). We requested their cooperation in self-assessment based on the "Fuji Electric CSR Procurement Guidelines."
This self-assessment covered risk evaluations across nine items, including human rights, labor practices, and health and safety. The results confirmed high levels of implementation in human rights, labor practices, and health and safety areas.

Starting from fiscal year 2023, to better understand actual practices, on-site audits of suppliers are being conducted through visits. In fiscal year 2024, we visited 17 suppliers and confirmed that the responses in the assessments aligned with actual conditions across all companies.

Furthermore, since October 2022, Fuji Electric has made it mandatory for all new suppliers to conduct a CSR self-assessment, which includes confirmation of their efforts regarding human rights.

Statement on Modern Slavery and Human Trafficking

Fuji Electric strives to "not violate or be complicit in human rights violations" in its own business and supply chain. This statement describes our efforts to eliminate modern slavery, such as forced labor, and human trafficking. The statement can be accessed from the link below.

Human Rights Consultation, Reporting, and Remedy Desks

Fuji Electric has set up a consultation and reporting desk as a grievance mechanism for employees and external stakeholders regarding human rights.

Fuji Electric Business Ethics Whistle-Blowing Systems

Fuji Electric introduced and are operating the Fuji Electric Business Ethics Whistle-Blowing Systems. Under these systems, internal and external parties can report real or suspected violations of laws, regulations, or internal rules including matters related to bribery and corruption to Fuji Electric’s President and COO via reporting points (in-house contact points, outside lawyers, and JaCER). (Anonymous reporting is also possible.)

Business Ethics Helpline

The Business Ethics Helpline handles reporting from Fuji Electric Group executives and employees in Japan and overseas (including retirees and dispatch employees). We strive to ensure awareness of the Helpline through posts in the company magazine and intranet.

Partner Hotline

The Partner Hotline handles reporting from outside stakeholders such as business partners. We strive to build full awareness of the system through posts on our public website and at explanatory forums for business partners.

JaCER Engagement and Remedy Platform

Fuji Electric joins Japan Center for Engagement and Remedy on Business and Human Rights（JaCER）, and handles reporting of human rights-related and other issues from all stakeholders.
JaCER's platform complies with the United Nations Guiding Principles on Business and Human Rights. By accepting via a third-party contact point, we are aiming to promote fairness and transparency in the handling of grievances.

In all reporting systems, we begin by taking thorough steps to protect the whistleblower by keeping his or her information confidential and prohibiting disadvantageous treatment, retaliation, or discrimination on the basis of his or her report. We then investigate the facts, take corrective measures, prevent recurrence, impose disciplinary measures, and take other necessary actions to resolve the issue and provide feedback detailing our response to the whistleblower. (Even in cases of anonymous reporting, we strive to provide indirect feedback through the measures described above.)

The number of reports received in fiscal 2024 was 25, both in Japan and overseas. Of these, three cases were found to involve violations (two cases of harassment and one related to accounting), and corrective and recurrence prevention measures have been completed for all of them.

Human Rights Consultation Desks

We have set up consultation desks at all domestic sites of the Fuji Electric Group as a means for employees to seek advice. We strive to create an environment where employees feel comfortable seeking advice by publicizing the relevant departments and the names of the people in charge on the intranet and noticeboards at business sites, and by providing consultation not only in person but also by telephone and email.

Human Rights Education and Training

Fuji Electric provides education and training to all executives and employees to deepen their understanding of the company's responsibility to respect human rights.

Education and Training to Foster an Organizational Culture That Respects Human Rights

Harassment Education

In fiscal 2024, we conducted e-learning programs on the topic of harassment, with 11,038 employees taking the course. The aim of this program is to promote understanding of harassment and to realize a comfortable workplace where all employees treat each other with respect.

Level-Specific Training

In Japan, we provide basic human rights training for new recruits, and training for assistant managers and managers to deepen their awareness of business activities and human rights risks. We also provide human rights training to mid-career recruits and newly appointed directors of Group companies, with a total of 1,174 people participating in fiscal 2024.

Mental Health Education

We conducted mental health education and job-level interviews through e-learning at each business site and across the company, with a total of 27,948 employees taking part in fiscal 2024.

Diversity training

We are continuously implementing various measures to promote employee awareness of diversity and foster a pleasant workplace environment. In fiscal 2024, a total of 262 employees who were promoted to higher-level positions participated in training designed to deepen their understanding of the importance of diversity, Fuji Electric’s related initiatives, and the roles they are expected to fulfill at each level.

In addition, various human rights awareness education programs are provided at business sites and subsidiaries. In fiscal 2024, these programs were attended by 9,426 employees.

Education and Training for Human Rights and Recruitment Personnel

In order to deepen understanding of human rights, human rights and recruitment personnel (including those at domestic subsidiaries) regularly participate in external training sessions. In fiscal 2024, 137 employees attended workshops and seminars on issues such as discrimination (Dowa issues), harassment, and LGBTQ matters, organized by local governments and human rights organizations.

Education and Training for Procurement Personnel

To enhance the awareness of employees responsible for CSR procurement, we conduct CSR training targeted at procurement staff within Japan. The training covers key human rights issues, especially those requiring careful attention within the supply chain. In 2024, training was held at three factories, with 98 participants attending.

Preventing Harassment

Fuji Electric prohibits all forms of harassment in the "Policy for Human Rights of Employees"
In addition to disseminating the "Guidelines on Employee Human Rights" to human rights officers at each business site, we have set up " Human Rights Consultation Desks" at each company's major business sites to deal with all aspects of human rights and introduced the "Business ethics helpline" that can be reached by phone or email and is separate from the regular business lines. In fiscal 2024, we conducted e-learning programs on the topic of harassment.

Participation in Initiatives/Industry Collaborations

We actively participate in international organizations and industry initiatives addressing human rights issues.

Japan Electronics and Information Technology Industries Association (JEITA) "CSR Committee"

As a member of the JEITA CSR Committee, we address various CSR-related issues common to the industry, and also participate in activities such as research, studies, dissemination and external recommendations from a specialist standpoint on CSR.

Tokyo Human Rights Awareness Business Association

We are a member of the Tokyo Human Rights Awareness Business Association and are continually working to promote and improve human rights awareness through initiatives that involve sharing issues and holding dialogue with member companies.

Information Disclosure

Fuji Electric will deepen mutual understanding and trust by promoting honest and active information disclosure and constructive dialogue with shareholders and investors. With regard to our efforts to respect human rights, we will disclose appropriate information on the progress and results of our human rights due diligence, while taking into consideration confidentiality of commercial transactions and ensuring that affected people and employees are not exposed to risk.

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