Human Rights Policy & Internal Framework

Introduction

The Ryohin Keikaku Group recognizes that safeguarding and respecting the human rights of all individuals is integral to achieving its corporate purpose of promoting “a truthful and sustainable life for all.” We promote human rights initiatives based on the Ryohin Keikaku Group Compliance Code of Conduct and the Code of Conduct for Production Partners. We developed the Ryohin Keikaku Human Rights Policy in December 2022, with the approval of the Board of Directors and through the dedication of our management team, including top leadership.

Ryohin Keikaku Human Rights Policy

1. Approach to Human Rights
Ryohin Keikaku understands that the entire supply chain for its business activities can have a direct or indirect negative impact on human rights, and recognizes the importance of its responsibility to respect human rights. Ryohin Keikaku complies with the United Nations Guiding Principles on Business and Human Rights and other international standards for respecting human rights.
Human rights under this policy include the core labor standards set forth in the International Bill of Human Rights and the International Labor Organization (ILO) Conventions.

2. Scope of Application
The Human Rights Policy applies to all officers and employees of Ryohin Keikaku. In addition, Ryohin Keikaku expects and requests the understanding and observance of this Human Rights Policy from all related parties, including suppliers of its various businesses, products and services. In particular, we promote efforts to respect human rights among business partners that have direct contract with Ryohin Keikaku and factories to which we outsource manufacturing (hereafter collectively referred to as “production partners”) by requesting their understanding of and compliance with our Code of Conduct for Production Partners, which includes standards for respecting human rights, and by placing value on our relationship with production partners.

3. Communications with Stakeholders
In the course of implementing this Human Rights Policy, we will seek advice from independent external experts and emphasize communications with stakeholders, including employees and their families, consumers who use Ryohin Keikaku products and services, producers, and members of local communities, as we work to enhance our efforts to respect human rights.

4. Conducting Human Rights Due Diligence
Ryohin Keikaku has established a framework for human rights due diligence in accordance with the United Nations Guiding Principles on Business and Human Rights, and strives to identify, assess and prevent or minimize any negative impact on human rights in its business activities or supply chain.

5. Compliance Hotline
If in our business activities we identify a matter that is causing or contributing to a negative impact on human rights, we will work to correct and remedy the matter through appropriate procedures. Even if this is found not to be the case, if a business, product or service is directly linked to a negative impact on human rights due to a business relationship, we will strive to correct and remedy the situation.
Ryohin Keikaku works to maintain an effective grievance mechanism to help identify and address any negative impact on human rights related to its business activities and supply chain in a timely manner, and to facilitate access to a remedy for those affected.

6. Workplace Training
Ryohin Keikaku will provide appropriate training to its officers, employees and other relevant parties to ensure the effective implementation of our Human Rights Policy.

7. Monitoring and Disclosure
Ryohin Keikaku will continue to monitor the implementation status of initiatives and make improvements as necessary. In addition, we will appropriately disclose information on our initiatives related to respecting human rights based on the policy.

8. Implementation System
Ryohin Keikaku appoints a senior executive officer, who is in charge of the management department, as the person responsible for the Human Rights Policy to ensure a system for effectively establishing and implementing the policy throughout the Company and the supply chain (under the supervision of the Board of Directors). All Group companies and departments conduct their business activities based on the Human Rights Policy.

Internal Framework for Respecting Human Rights

At the monthly meeting of the ESG Management Committee chaired by the president & representative director, we formulate policies on human rights-related initiatives, develop and review the management structure, and monitor progress toward targets. In addition, we have established the ESG Sub-Committee under the ESG Management Committee to promote respect for human rights. The subcommittee has created a roadmap for human rights initiatives and is building a framework for preventing human rights violations. Initiatives are implemented mainly by the Risk Management Division, the ESG Management Division, divisions involved in product procurement and the Human Resources Division, all working in collaboration.

Initiatives for Respecting Human Rights

Since the establishment of MUJI, Ryohin Keikaku has conducted its business with consideration for the global environment and producers, based on the three perspectives of product development, and through visits to material production areas and manufacturing sites.
Based on this fundamental stance, and in accordance with the Ryohin Keikaku Human Rights Policy established in 2022, we are committed to fulfilling our responsibility to respect the human rights of all stakeholders in the value chain of our business. In line with the United Nations Guiding Principles on Business and Human Rights and the six-step framework of the OECD Due Diligence Guidance for Responsible Business Conduct, we have established a human rights due diligence system. Through this system, we are working to identify and assess the environmental impact of our business activities and supply chain, in addition to preventing or mitigating such impact.

Stakeholder Engagement

To realize “a truthful and sustainable life for all,” we believe that it is important to accurately understand the demands and expectations of stakeholders regarding society and the Group. As such, we engage in constructive dialogue with customers, local communities and society, shareholders and investors, business partners and employees, and respond to them accordingly.
We engage in dialogue with stakeholders and reflect their opinions and requests in our business activities. We also participate in various initiatives to deepen our understanding of global social issues and to continuously improve our business activities.