- Sustainability TOP
- Social
- Human Rights
Isuzu Group Human Rights Policy
On February, 2022, the Board of Directors approved and established the Isuzu Group Human Rights Policy (hereinafter referred to as the Policy).
In December 2023, this policy was revised based on the new corporate philosophy system 'ISUZU ID' announced in May of the same year.
This policy complies with the United Nations Guiding Principles on Business and Human Rights and reiterates Isuzu's commitment to contribute to the realization of a sustainable society by promoting business activities that respect human rights as part of its corporate social responsibility amid expectations that the international community will foster a corporate culture of respect for human rights and make efforts across all business activities.
In accordance with this policy, Isuzu will comply with international norms, laws and regulations, group norms, etc., develop a Group human rights promotion system, engage in human rights due diligence, and provide appropriate education to officers and employees. Additionally, based on the importance of respect for human rights in business, we will engage in dialogue with our stakeholders and strive to promote understanding among our business partners.
The policy is currently available in nine languages to ensure greater understanding among a broader range of stakeholders. For details, please refer to the Isuzu Group Human Rights Policy.
Management Structure
Amid expectations that the Company fosters a corporate culture of respect for human rights in all aspects of its business activities, the Isuzu Group is promoting business activities that respect human rights as part of its corporate social responsibility. Human rights issues are deliberated upon by the Sustainability Committee, which is chaired by director and composed of other members of management, including the officers in charge of each division. Important matters are then reported to the Management Meeting and the Board of Directors. The Sustainability Department, a dedicated department, is mainly responsible for the implementation of human rights safeguarding measures together with related divisions. Under the Sustainability Committee, the Social Promotion Subcommittee, a working group that addresses social issues, brings together representatives from all divisions to discuss human rights issues.
Additionally, in the Isuzu Group Sustainability Liaison Conference, information is shared with sustainability managers from both domestic and overseas Group companies. Human rights officers are appointed in each company, and together as a Group, we are promoting initiatives to respect human rights.
Number of Reports and Discussions on Human Rights Issues in Each Committee
| Baseline | Sustainability Committee | Isuzu Group Sustainability Liaison Conference | Social Promotion Subcommittee | |||
|---|---|---|---|---|---|---|
| Reports | Deliberations | Reports | Deliberations | Reports | Deliberations | |
| 2023 | 4 | 0 | 1 | 0 | 1 | 0 |
| 2024 | 5 | 3 | 1 | 0 | 4 | 0 |
Education and Awareness for Respecting Human Rights
For employees: To deepen understanding of human rights respect in corporate activities and recognize its importance, we regularly conduct basic human rights education for employees of both domestic and international Group companies. Additionally, to promote human rights due diligence, we regularly provide practical human rights due diligence training for human rights officers at domestic and international Group companies.
For executives: In FY2024, we invited external experts to give a presentation on business and human rights to members of the Sustainability Committee. This session included a dialogue between executives and external experts.
For business partners: To promote human rights-respecting business practices throughout the supply chain, Isuzu has been holding annual human rights seminars for business partners since FY2022. In FY2024, we held a seminar led by external experts on responsible mineral procurement to raise awareness of the Isuzu Group Responsible Minerals Sourcing Policy.
Human Rights Due Diligence
The Isuzu Group, under the Isuzu Group Human Rights Policy, is advancing the development of human rights due diligence processes by referring to guidelines such as the OECD Due Diligence Guidance for Responsible Business Conduct and the Japanese Government's Guidelines for Respecting Human Rights in Responsible Supply Chains. We are committed to the practice of respecting human rights.
Identification and Evaluation of Negative Impacts
Process 1: Identifying Human Rights Issues
STEP 1: Conducted a desktop review to investigate potential issues international companies might face, and carried out a sustainability self assessment questionnaire for Group companies and business partners.
STEP 2: Identified potential human rights risks in Isuzu's value chain and held workshops with the support of an NPO. Organized human rights issues based on interviews with relevant departments.
Process 2: Impact Assessment of Human Rights Risks
STEP 1: Organized human rights issues by quantifying their severity and likelihood, considering Isuzu's perspective as well as stakeholder concerns. This assessment was based on publicly available external materials.
STEP 2: Risk Mapping of Quantified Human Rights Issues to Identify Prominent Human Rights Challenges
Process 3: Determining Priority Human Rights Themes
Linking identified significant human rights issues to short- to medium-term priority human rights themes.
Prevention and Mitigation of Negative Impacts
Formulation of an Action Plan
Human Rights Due Diligence Medium-to Long-Term Plan
FY2023–2024: Establishment of a human rights due diligence framework at Isuzu
FY2025–2027: Development of a PDCA cycle at the Group level
FY2028–2030: Implementation and evolution of the PDCA cycle
Priority Theme Directions
- Issues of Foreign Workers within the Group, Including Sales Companies and the Broad Supply Chain
Focus on labor environment improvement programs, including interviews with foreign workers. Specifically, expand the scope of initiatives to subsidiaries and business partners with higher priority due to business or country risks. - Management of Human Rights Issues and Initiatives in the Value Chain, Including Logistics and Downstream Value Chain
While communication and investigations have previously focused on primary suppliers, future activities will expand to include dialogue and investigation in logistics and sales to better understand and address human rights issues.
Isuzu Group Supplier Sustainability Guidelines
Isuzu has been conducting socially responsible procurement activities in collaboration with our trading partners based on the 'Supplier CSR Guidelines' up until now. However, considering the changing trends in sustainability and the expectations of our stakeholders, we revised and updated the guidelines to the 'Isuzu Supplier Sustainability Guidelines' (hereinafter referred to as the 'Guideline') in December 2022. In April 2024, the guidelines will be retitled as the Isuzu Group Supplier Sustainability Guidelines, and efforts to expand their implementation to all Isuzu Group business partners are underway.
The guidelines reference various Isuzu Group policies, including the Isuzu Group Human Rights Policy, the Isuzu Group Responsible Minerals Sourcing Policy, and other relevant Isuzu Group policies, as well as internationally recognized standards and frameworks. In the request items for business partners, the guidelines aim to enhance the content to share values related to sustainability, such as environmental and human rights issues, across the entire Isuzu Group supply chain. We encourage business partners to utilize these guidelines to advance their own initiatives and to actively promote and understand these practices not only within their own operations but also throughout their supply chain.
We kindly request our business partners to agree with Isuzu's principles and confirm their commitment to comply with the requirements of this Guideline for all products and services supplied to Isuzu, by signing an agreement. As of May 2024, we have received signatures from business partners representing approximately 95% of our annual purchasing amount.
Responsible Mineral and Raw Material Sourcing
Isuzu considers the use of conflict minerals to be a serious problem in the supply chain as these minerals cause human rights infringements, environmental destruction, and illegal mining in conflict zones, and are used to finance militant forces. Therefore, we request confirmation of non-involvement in conflicts upstream in the supply chain through the Isuzu Group Supplier Sustainability Guidelines. In FY2022, we launched a survey on the use of conflict minerals in our business partners' supply chains and the status of their initiatives for responsible mineral sourcing. Since FY2023, we have been conducting surveys using the CMRT and EMRT, which are standardized formats provided by Responsible Minerals Initiative* (RMI). In FY2024, we established the Isuzu Group Responsible Mineral Sourcing Policy. We will continue to ask our business partners to promote responsible mineral sourcing.
- *Responsible Minerals Initiative: An organization based in the United States that addresses conflict minerals issues
Initiatives for Labor Issues
Prevention of Child Labor and Forced Labor
At Isuzu, the employment of children is strictly prohibited by the employment rules, and there were no instances of hiring individuals under the age of 18 in FY2024.
Employees directly employed by Isuzu are not compelled or restricted in their employment except as specifically agreed upon in accordance with employment rules and with the consent of the Isuzu Motors Labor Unions, organized by a majority of the employees. Furthermore, they will not be subject to discriminatory treatment based on nationality, creed, or social status in relation to the working conditions stipulated in the employment rules.
In the supply chain as well, Isuzu prohibits child labor and forced labor in accordance with the Isuzu Group Supplier Sustainability Guidelines.
Living Wage Support
We have concluded an age-based minimum wage agreement with the Isuzu Motors Labor Association, the labor union of the majority of our employees, to provide a safety net for the living standards of our employees. We discuss and revise wage levels as necessary at annual labor-management negotiations. Additionally, we have established standards for bonuses and other benefits during leaves of absence to help safeguard employees' livelihoods.
This agreement is reported to the National Federation of Isuzu Motors Workers' Unions, the highest-level union, to encourage increasing minimum wages across the entire Group.
Risk Assessment for Labor Issues
Risks are identified in areas such as labor problems, discrimination, harassment, mental health, and management failures caused by differences in values. They are evaluated quarterly to determine whether they have arisen and assess countermeasures to prevent risks and minimize their impact when they do arise.
Furthermore, there have been no confirmed violations related to labor laws that could impact Isuzu's business activities in FY2024.
Initiatives to Respect the Human Rights of Foreign Workers
Japan's automotive industry currently engages many foreign workers, including technical interns. We have confirmed that Isuzu Group and our business partners are accepting overseas technical intern trainees in numerous companies. As a result, addressing issues related to foreign workers has become a significant human rights issue in Isuzu's supply chain, and we are implementing various measures in response to this.
Dialogue with Foreign Workers
As part of our human rights due diligence initiatives, we have been conducting interviews with overseas technical intern trainees since FY2023. The interviews were conducted in person with the assistance of a third-party organization, the Caux Round Table Japan (CRT), to ensure objectivity and impartiality. Based on the results of these interviews, Mr. Ishida, the Secretary-General of CRT, provided an evaluation comment stating that, overall, the relationship between foreign workers and the Company is sound, and although there is room for some improvement, there are no particular human rights issues of concern at this point. In the future, we will continue to expand and sustain our human rights activities with the cooperation of all our business partners, and we will respond sincerely to improvement suggestions and other feedback.
Interview Records
| Date | Company | Nationality / Number of Participants |
|---|---|---|
| January 2023 | Company A (Group Company) | Indonesia / 3 people |
| February 2023 | Company B (Business Partner) | China / 4 people |
| February 2023 | Company C (Business Partner) | Indonesia / 3 people Thailand / 1 person |
| December 2023 | Company D (Group Company) | Cambodia / 10 people |
| December 2023 | Company E (Business Partner) | Indonesia / 2 people |
| December 2023 | Company F (Business Partner) | Vietnam / 3 people |
Examples of Improvements Tracked After Interviews
Company A (Group Company): Following the feedback that documents related to workers' rights, such as safety and health signage, disaster response rules, payslips, and employment contracts, should ideally be provided in the local language, it was confirmed that quality-related documents were translated into Indonesian and released. Additionally, it was verified that all technical intern trainees were registered in the safety confirmation system, enhancing preparedness for emergencies.
Company C (Business Partner): Concerning the issue that some company-provided housing for foreign workers lacked locked safes, it was confirmed that, one year later, all workers had been provided with locked safes.
Implementation of Unique Program (Plant Tour)
Additionally, as part of our unique program, we held a plant tour in October 2023 for overseas technical intern trainees from our business partners, inviting them to our Fujisawa plant. The goal of this initiative is to deepen their understanding of how the parts they manufacture are ultimately incorporated into the final products and to enhance their motivation for their work.
Participants shared feedback such as, 'Seeing our products installed in the display vehicles at Isuzu Plaza made me feel a closer connection to Isuzu than ever before,' and 'The plant tour allowed me to reappreciate the importance of maintaining and improving quality and ensuring stable supply, and I would like to apply the insights gained from the tour within our own company.'
Ethical Practices in the Recruitment of Foreign Workers
Isuzu has been recruiting overseas technical intern trainees for many years. Initially, the aim was to enhance and strengthen technical skills within our overseas Group companies. However, by widely sharing manufacturing know-how, we believe we can achieve international contribution through human resource development more effectively. In recent years, we have increasingly accepted many overseas technical intern trainees through Group management schemes.
We are committed to creating an environment where interns can focus on their training by implementing unique measures throughout the entire process, from recruitment and entry preparation, including financial support during the entry preparation phase, to job support after their return.
Example of Initiatives: Language Support System
At our Fujisawa and Tochigi plants, we have deployed multiple interpreters to provide 24/7 support for interns' health management and daily life in Japan. Additionally, to promote communication, retain talent, and ensure a safe working environment, we have introduced AI interpretation apps for field supervisors.
Black Economic Empowerment Policy Initiatives at Isuzu Motors South Africa
The Isuzu Group believes in employing local workers and actively recruits locally in the countries and regions in which it operates. Isuzu Motors South Africa (IMSAf), which produces and sells commercial vehicles, buses, and LCVs for South Africa and neighboring countries, does not only promote employment in the region but is also actively working to support South Africa's Broad-Based Black Economic Empowerment (B-BBEE) policy.
In FY2024, the percentage of management considered as HDSA* was 37.8%, while the percentage of employees was 84%.
Additionally, IMSAf has achieved Level 1 certification on the B-BBEE scorecard for four consecutive years, establishing its position as an industry leader.
- *Historically Disadvantaged South Africans: South Africans who have been historically disadvantaged due to discrimination against Black people, women, etc. during the apartheid era.
Women's Rights
On March 8, 2024, UD Trucks, a consolidated subsidiary of our Company, conducted a workshop aimed at promoting women's empowerment. The workshop included discussions on training for female drivers, support activities for female leaders, and the development of trucks designed to be more accessible for women drivers.
This discussion enabled UD Trucks employees to understand the importance of women's empowerment and the activation of such initiatives. We will continue to advance our efforts to respect and promote women's rights.
Evaluation and Information Disclosure
Investigation Through Self-Assessment Questionnaire
Since FY2022, we have begun conducting surveys using the CSR Procurement Self-Assessment Questionnaire issued by the Global Compact Network Japan to confirm the status of sustainability initiatives, including human rights issues, of our business partners and Group companies.
Starting from FY2024, we have begun using a new self-assessment questionnaire aligned with the content of the Isuzu Supplier Sustainability Guidelines.
For business partners where risks are identified through these surveys, we conduct either on-site or remote interviews and work on improvement initiatives.
| Value Chain | FY2024 | |
|---|---|---|
| Number of Requests | Responses Received (Response Rate) | |
| In-House Group*1 | 62 companies | 62 companies (100%) |
| Business Partners*2 | 284 companies | 284 companies (100%) |
- *1In-House Group refers to 62 consolidated subsidiaries both in Japan and overseas.
- *2Business Partners accounts for 96% of the previous year's payment amount.
Remediation and Complaint Handling Mechanism
Establishment of an Employee Consultation Service
Isuzu has established three consultation counters for internal reporting and consultation on compliance issues, including comprehensive corruption practices such as discrimination, harassment, hospitality, gift-giving, and insider trading. These counters are:
1. Workplace Counter (Supervised by the immediate supervisor)
2. Intra-Division Counter (Supervised by the division manager)
3. Company-Wide Counter (Supervised by the Risk Management Dept. Compliance Management Group)
These contact points act as impartial receivers of information and serve not only in cases of clear violations of laws and regulations or internal rules but also for consultation on matters that appear suspicious and as a contact point for inquiries regarding internal rules and laws and regulations related to business operations. In addition to handling compliance-related matters, these counters also serve as points of contact for human rights-related inquiries and reports.
A suggestion box (External Point of Contact) has also been set up at an external law firm.
The internal and external consultation offices accept consultations and inquiries by e-mail, fax, telephone, and letter. In accordance with the Whistleblower Protection Act, the names of individuals who provide information and the content of such information are treated as confidential information and are protected to ensure that individuals will not be treated unfairly within the Company.
To promote awareness of these consultation services, we distribute a Compliance Guidebook and Compliance Consultation Counter Card to all employees, which include contact information for each consultation service and the suggestion box. Additionally, Isuzu regularly informs employees of their contact point through Isuzu Quality and Compliance Promotion Meetings, posters, and other means. The Compliance Management Group of the Risk Management Dept. serves as the secretariat for matters reported or discussed at each contact point and works to confirm the facts and make improvements.
If any compliance concerns arise from the reports or consultations received at each counter, the Risk Management Dept., under the supervision of the Board of Directors, conducts a thorough investigation and resolution in collaboration with the Legal Dept. and other relevant divisions. To maintain the highest standards of compliance, Isuzu will continue to regularly assess and verify the effectiveness of its compliance measures and make improvements as necessary.
In FY2024, there were 42 cases (8 cases related to the Company and 34 cases related to Group companies) that were reported to or consulted on by the external consultation service.
Moreover, the total number of reported violations was 11 (1 case related to the Company and 10 cases related to Group companies). Those requests received through the internal and external consultation services were handled appropriately, and we confirm that there have been no serious compliance violations. The status of compliance efforts and the number of consultations and serious violations are reported to the Board of Directors.
Business Partner Consultation Service
As a neutral consultation point for our business partners, we have established the Business Partner Consultation Service within the Risk Management Dept. Compliance Management Group. This service handles consultations from business partners on compliance and human rights matters. Additionally, personal information of informants and consultation details are treated as confidential in accordance with the Whistleblower Protection Act.
Establishment of Consultation Service for Foreign Workers in the Supply Chain
In October 2022, Isuzu participated in the consultation and remedy desk project of the Japan Platform for Migrant Workers towards Responsible and Inclusive Society (JP-MIRAI) as a way to build a relief mechanism for foreign workers. JP-MIRAI is a platform aimed at contributing to the creation of a prosperous and sustainable society by responsibly and stably accepting foreign workers and improving their working and living conditions, with a vision of becoming 'a country of choice and trusted by migrant workers around the world' by the target year of 2030, in line with the SDGs. This project uses the JP-MIRAI web portal to disseminate necessary information to foreign workers, provide anonymous and multilingual external consultation services, and provide feedback to participating companies. Foreign workers at Isuzu and two Group companies are currently participating in the project. Additionally, through participation in this initiative, we will engage in discussions with the JP-MIRAI Secretariat and participating companies.
Dialogue with Stakeholders
At Isuzu, we believe that it is important to proactively convey our thoughts to various stakeholders and actively listen to their voices. We recognize the importance of respecting human rights when conducting business, and we will continue to engage in dialogue with stakeholders while seeking the assistance of external experts on human rights. Through these efforts, we aim to make progress in addressing human rights issues.
Participation in Stakeholder Engagement Program
Isuzu believes that it is important to understand the negative impacts on human rights resulting from its business activities from the perspective of stakeholders. Therefore, starting in FY2024, Isuzu has been participating in the Stakeholder Engagement Program organized by the Caux Round Table Japan. Through this platform, participating companies, experts, NGOs/NPOs, and others engage in dialogues on a wide range of human rights issues and, in so doing, gain an understanding of the perspectives of rights-holders and acquire the knowledge required to implement human rights due diligence as called for by the United Nations Guiding Principles on Business and Human Rights.
Dialogue Between Executives and External Experts
In February 2024, we hosted a stakeholder dialogue on business and human rights with Mr. Yosuke Sakurai from Mitsubishi UFJ Research and Consulting Co., Ltd. In the first half of the session, Mr. Sakurai delivered a lecture to the members of our Sustainability Committee, including executives. In the latter half, a dialogue took place between Mr. Sakurai and our executives. During the dialogue, we exchanged opinions on our Isuzu's approach to human rights issues and received advice from Mr. Sakurai.
To further advance human rights initiatives across the entire Group, we will continue to conduct various human rights education programs for executives and employees, and engage in ongoing dialogue with various stakeholders.
