Respect for Human Rights

Under the Fuyo Lease Group's framework for initiatives to respect human rights, activities are promoted by the Group Legal & Compliance Division, which has responsibility for this area. Plans and results are reported to the Executive Committee and the Board of Directors, which oversees the initiatives.

The Fuyo Lease Group has established a Human Rights Policy, and engages in initiatives related to respect for human rights of stakeholders in its business activities (officers and employees, customers, partner companies in each business and communities, etc.). Moreover, we are actively working to promote understand of the Group's Human Rights Policy across the Group.

Specifically, the Fuyo Lease Group's Human Resources Division provides instruction and support to all departments and offices as well as group companies on planning, proposal and promotion of basic human resource policies and procedures, including education and awareness raising regarding human rights, and also reports to the Executive Committee on the results of implementation.

Expectations for key stakeholders are as follows:

The Fuyo Lease Group evaluates the negative impacts of its businesses and takes steps to prevent them.

Fuyo Lease's Corporate Planning Division regularly assesses the Group's risk management status, including human rights issues, and reports it to the directors. If significant risks occur these are reported to the Risk Management Officer and to the Executive Committee.

As one initiative for human rights due diligence based on the Group's Human Rights Policy, we make inquiries to business units and interview partner companies to identify issues that have a negative impact on human rights in our business, and implement countermeasures according to the degree of risk severity. By continually implementing this kind of process every term, we will work to prevent and mitigate human rights risks.

We identified negative impacts on human rights in the Fuyo Lease Group' s business operations (human rights risks) while referring to the areas of human rights that companies must respect, as outlined by the International Labour Organization (ILO) and the UN Guiding Principles (UNGPs) on Business and Human Rights. Building lease transactions in the Real Estate business and property disposal at the Hachioji Technical Center in the Circular Economy business were selected as areas subject to human rights risks in fiscal 2023 using a risk-based approach. We confirmed the status of the materialization of human rights risks through inquiries made to each business department, as well as questionnaire surveys and interviews of stakeholders such as customers, partner companies, and outsourced contractors. Based on this, we evaluated the degree of impact, which included the potential for future risk materialization.

In cases where negative impacts on human rights are identified as a result of the impact evaluation, the impacts will be prioritized based on the risk's significance and the severity of the risk's impact. We will strive to remedy the negative impacts on human rights, while also taking steps to prevent and mitigate human rights risks. The Group has so far been implementing periodic inspections and evaluations of the status of building management in building leasing transactions and following a process for selecting outsourcing partners in property disposals. These measures have been functioning effectively in preventing and mitigating human rights risks. We will continue to carry out these efforts while exploring even more effective measures.

In the Group, the Audit Office and Human Resources Division conduct regular employee interviews in order to prevent violations of human rights. In the event any human rights issue arises, a team lead by the Human Resources Division will act in accordance with company policy to promptly resolve the issue.

We have set up internal and external whistleblower hotlines that allow anonymous reporting and guarantee that all reports will be treated as confidential in order to promptly detect any infringements of compliance or Fuyo Lease Group's Basic Compliance Policy in the area of human rights, including bullying and harassment.

In fiscal 2023, there were 10 reported incidents related to actual or suspected violations of the Fuyo Lease Group's Basic Compliance Policy pertaining to human rights, including bullying and harassment. In each report, investigations are promptly conducted, such as confirming the facts with the parties concerned with due care to protect whistleblowers against detrimental treatment and taking appropriate measures.
All cases have been resolved, and measures put in place to prevent recurrences.

Recognizing that it is possible that the Group could contribute to a negative impact on human rights in providing services, we strive to take appropriate measures to prevent or mitigate any negative impacts on human rights that may occur through our business activities. In particular, we are making a focused effort to protect the privacy of our customers, creating information management systems suited to each business operation and rigorously managing customer information.

The Fuyo Lease Group continually provides human rights awareness training in its grade-specific training, which includes that for new employees and newly appointed assistant managers / section chiefs with the aim of creating workplaces with a fundamental respect for human rights. Through the publication of "Compliance News" and inhouse digital signage to all group employees, we raise awareness of the Fuyo Lease Group's approach to human rights and labor and the importance of respecting them. In fiscal 2018, the Group introduced a new training program for all employees, in which the participants view videos to improve their human rights awareness.

Furthermore, we provide training upon promotion for employees appointed at or above a certain level of management position to enable them to respond appropriately when there are reports of incidents and consultations involving human rights, including bullying and harassment.

The Fuyo Lease Group recognizes freedom of association and collective bargaining rights as the rights of its employees. While complying with laws and regulations and promoting these rights, we strive for appropriate communication between employers and employees. In Fuyo Lease, the percentage of employees who belong to a labor union is 69.3%.

The Fuyo Lease Group strives to comply with domestic and foreign laws and regulations on labor standards where its offices are located, such as working hours and pay but also to make the working environment even better in order to ensure consideration for human rights. Not only do we strive to limit long working hours and guarantee a living wage in our offices in Japan, but we also carry out checks at our overseas sites as necessary, in addition to paying living wages that exceed the minimum stipulated by local laws and regulations, to maintain high standards to ensure the retention of excellent employees. Each month, we report the company's overall status of working hours and any workers who are working long hours to the director in charge of the Human Resources Division and the President & CEO and deliberate on countermeasures when necessary. Fuyo Lease and certain domestic Group companies have taken steps to reduce long work hours by actively implementing measures to prevent overwork through the introduction of "Refresh Day (no overtime day)", "+ Friday (leave-work-early system)", and the "interval system" for employees to use freely.

In Fuyo Lease in fiscal 2023, there were no infringements of labor-related laws and regulations.