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Respect for Human Rights

Promotion Framework

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.

Expectations toward respecting human rights for stakeholders

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:

Board Members and Employees The Group has zero tolerance for all forms of discrimination and harassment on the basis of gender, nationality, sexual orientation, gender identity, race, ethnicity, religion, disability, or any other grounds. We strive to create a work environment where each and every employee respects each other’s human rights and can work in comfort and peace of mind.
Customers Our Vision is to “The group that is trusted by customers and works together to create value” We will not only prevent and mitigate negative impacts on human rights related to the provision of services, but also strive to respect the human rights of all our business partners.
Partner Companies We expect partner companies providing services with our Group to understand the Fuyo Lease Group Human Rights Policy, and respect human rights in the same way as Group employees.

Initiatives Related to Due Diligence

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

Fuyo Lease's Business Management 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.

Human Rights Due Diligence Process

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.

The Human Rights Due Diligence Process and Initiatives in FY2024 1.Human rights impact evaluation Referencing the human rights areas that companies should respect as outlined by the ILO and UN Guiding Principles, the Fuyo Lease Group identifies adverse human rights impacts (human rights risks) associated with its business activities and selects targets for human rights due diligence implementation using a risk-based approach. In fiscal 2024, we accordingly selected IT vendors (hereinafter “contractors”), which serve as business outsourcers for major systems used by the Company as part of our supply chain. We confirmed the occurrence of human rights risks through inquiries made to the Company’s systems divisions that handle orders and negotiations with contractors, as well as questionnaire surveys and interviews of the contractors, based on this, we evaluated the degree of impact, which included the potential for future risk materialization. 2.Prevention and mitigation measures 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. When placing orders with our contractors, we enter into agreements that ensure reasonable delivery schedules and appropriate consideration taking into account workloads and other such factors, while also giving due attention to both their emergency procedures and work environments of on-site personnel. We have also confirmed that the contractors prevent and mitigate human rights risks by implementing both structural and systemic measures to address risks such as excessive working hours. 3.Monitoring We will conduct follow-up surveys using questionnaires in fiscal 2025 regarding the status of our contractors 4.Information disclosure We disclose the status of our initiatives to address human rights risks through the corporate website and other channels.

Board Members and Employees

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 2024, there were 17 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.

Customers

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.

Human Rights Education and Awareness Raising Activities

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.

Description of Training Held in Fiscal 2024

Participants

Description

Overview

Fuyo Lease Group’s officers and employees

Human rights awareness training on breaking away from high-context communication and developing mindfulness of a low-context approach

E-learning course on communication that fosters diversity, taking into account diversity of employees and working styles

Fuyo Lease Group’s employees

Workplace training on business and human rights as well as customer harassment

Training conducted at the workplace level to share knowledge about corporate responsibilities regarding human rights initiatives and illustrative case studies

Fuyo Lease employees
(New hires, newly appointed assistant managers and section chiefs)

Anti-harassment training

Grade-specific training enabling participants to gain awareness on preventing power harassment, sexual harassment and other forms of harassment, as well as appropriate responses when incidents occur

Fuyo Lease Group’s officers and employees (voluntary)

Addressing unconscious bias

Study of unconscious bias, its tendencies, and coping strategies through lectures by external experts (available in-person and online)

Building Positive Employer-Labor Relations

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, as at the end of March 2025, the percentage of employees who belong to a labor union is 73%.

Promoting Appropriate Labor Standards

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 2024, there were no infringements of labor-related laws and regulations.