Respect for Human Rights

Basic Policy

Advocating Human Rights in Our Group Conduct Guidelines in Order to Promote Respect for Individuals

Human rights are enshrined in our Group Conduct Guidelines, which detail how Daikin Group officers and employees should act. Based on the laws of countries and regions around the world, we respect basic human rights by understanding and abiding by various international norms related to human rights throughout our entire value chain.

In addition to taking part in the United Nations Global Compact for aligning operations to universally accepted principles on issues such as human rights and labor standards, the Daikin Group also stipulates in its Group Conduct Guidelines to never discriminate on the basis of race, ethnicity, gender, etc. as well as never permit child labor and forced labor.

Group Conduct Guidelines

Managing Human Rights Matters and Assessing Impact

Identifying and Reducing Human Rights Risks

Daikin identifies human rights issues in its business, assesses risk throughout the value chain, and lists risks that should be prioritized. In our operational risk management system, we identify human rights risks and create countermeasures.

Our CSR Action Plan 2020 stipulates respect for human rights. The quantitative index of respect for human rights is the execution rate of self-assessments, which are performed annually to check the status of compliance with the Group Conduct Guidelines. Since respect for human rights is one of the criteria of the self-assessments, they confirm how well Daikin is respecting the rights of individuals, and we implement necessary countermeasures. The self-assessment implementation rate in fiscal 2020 was 99%.
In addition, the results of deliberations by the Corporate Ethics and Risk Management Committee are reported to the Internal Control Committee chaired by the president twice a year, while the results of these reports are then reported to the Board of Directors.
The results of self-assessments, as well as issues that come up and proposals for their solution, are reported to the Corporate Ethics and Risk Management Committee, or regional compliance committee meetings, thus ensuring this information is shared throughout the Daikin Group in an effort to mitigate the risks.

Human Rights Risks in the Daikin Group Value Chain and Relation to Major Stakeholders

Dealing with Human Rights Risks

Respecting Human Rights in the Supply Chain

Formulated in April 2017, Daikin's Supply Chain CSR Promotion Guidelines stipulate mechanisms and rules for protecting human rights; for example, a system for monitoring human rights and the prohibition of child labor and forced labor. Our suppliers inside and outside of Japan are urged to firmly abide by these guidelines.

Beginning in fiscal 2018 in the air conditioning divisions, we conducted CSR questionnaires, which include items regarding respect for human rights, on 449 major suppliers in Japan. From fiscal 2019, we conducted these same questionnaires on 487 suppliers outside of Japan as well. In this manner, we are working to increase the level of CSR awareness at our suppliers.

In our chemicals divisions, every year in April as part of ongoing assessments, we have suppliers fill out questionnaires to diagnose their own compliance and that of their external providers. These questionnaires contain items on human rights and thus tell us what suppliers are doing in this respect.

In addition, we take part in subcommittees on supply chains and human rights education of the Global Compact Network Japan, the local body of the UN Global Compact. These subcommittees are made up of UN Global Compact member companies and organizations.
In fiscal 2020, we worked to elevate our own initiatives through attending presentations by experts on topics such as UN Guiding Principles on Business and Human Rights and National Action Plan on Business and Human Rights and learning about the global supply chain and human rights from other companies' CSR procurement practices.

Response to Personal Data Regulations

Daikin has its own Group guidelines for the protection of personal information that it strictly enforces. These guidelines are the basis for promotion systems and rule systems of each Daikin Group company. In addition, we have formulated rules regarding the handling of personal data in the EU. These rules cover the requirements under the General Data Protection Regulation (GDPR), a regulation on the personal data of EU citizens. The Daikin rules cover protection measures for when personal data is taken out of the EU, the recording and control of how personal data is handled, and measures to ensure safe management of personal information. We have also set up a hotline for inquiries from residents of the EU. Every employee in the Daikin Group is familiarized with these rules.

In fiscal 2020, we conducted in-depth GDPR training for key staff members at each European Group company.

Response to the U.K.'s Modern Slavery Act

Our Group companies in the U.K. have released the following statement based on the Modern Slavery Act 2015, which was instituted by the U.K.

Statement

• Daikin Airconditioning U.K., Ltd.
• J&E Hall International
• AAF Ltd.

Human Rights Education

Raising Human Rights Awareness through Periodic Education Sessions and Assessments

Daikin strives to raise awareness of human rights among officers and employees through periodic education sessions and assessments.

Through annual self-assessments to confirm how well the Group Conduct Guidelines are being followed, employees assess themselves and thus contribute to their improved understanding of the guidelines.
Human rights education for each level of employees helps them improve their human rights awareness.

For example, at Daikin Industries, Ltd. training is held every year for all officers, new employees including those at affiliates, and newly appointed managers. In fiscal 2020, we conducted training for officers led by an outside expert on the theme of Corporations and Human Rights--A CSR Perspective. In addition, we implemented e-learning on the prevention of harassment among all employees to enhance awareness.

Whistle-blower System

At Daikin Industries, Ltd., employees can contact the internal or external Help-Line for Corporate Ethics to get advice and give opinions on all matters of corporate ethics including human rights, workplace bullying, and sexual harassment.