Respect for Human Rights

Basic Policy

Established Daikin Group Human Rights Policy to promote initiatives that respect human rights

In recent years, a number of human rights issues have emerged in business, including child labor or forced labor at suppliers and the leakage of personal information of customers and employees. For this reason, there is growing interest among the international community in how business activities affect human rights. Business activities that respect human rights represent one vital element of a company’s social responsibilities.
Daikin is undertaking initiatives that promote respect for human rights across its entire value chain. We have established Daikin Group Human Rights Policy based on an understanding of all international norms on human rights along with the laws and regulations of each country and region. Also, the Group Conduct Guidelines clearly stipulate the actions that must be taken by officers and employees in terms of respect for human rights.

Furthermore, Daikin endorses and participates in the United Nations Global Compact, which supports companies in abiding by universal principals on human rights and labor.

Daikin Group Human Rights Policy (190KB)

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.

Self-assessments 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 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.

In fiscal 2021, discussions were held between Compliance and Risk Management Leaders and related divisions to identify human rights risks at the Group as part of our broader efforts on human rights.

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

In terms of the supply chain, Daikin’s Supply Chain CSR Promotion Guidelines contain provisions on respect for human rights, including barring of discrimination due to race or gender and elimination of child and forced labor. Our suppliers inside and outside of Japan are urged to carefully abide by these guidelines.

Beginning in fiscal 2018, we conducted CSR questionnaires, which include items regarding respect for human rights, on 626 major suppliers in Japan. From fiscal 2019, we conducted these same questionnaires on 1,444 suppliers outside of Japan as well. In this manner, we are working to increase the level of CSR awareness at our suppliers.

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 2021, we worked to elevate our own initiatives through attending presentations by experts and learning about initiatives on respect for human rights in the supply chain based on the CSR procurement efforts of other companies.

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 2021, we worked with our subsidiaries in Europe to ensure compliance with the stricter regulations for transfers of personal data from the EU following the Schrems II ruling^* of the Court of Justice of the European Union. Additionally, we set up working groups involving Group companies to ensure compliance with China’s Personal Information Protection Law (implemented in November 2021), Japan’s revised Act on the Protection of Personal Information (implemented in April 2022), and Thailand’s Personal Data Protection Act (implemented in June 2022).

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Court case on data transfers from the EU to the US

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.

At Daikin Industries, Ltd. training is held every year for all officers, new employees including those at affiliates, and newly appointed managers. In fiscal 2021, we conducted training for officers led by an outside expert on the theme of Corporations and Human Rights-- Requirements of Multinational Corporations. 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.