Measure (1) Execution of Human Rights Due Diligence in Accordance with the UNGPs

To address the seven “priority human rights issues (salient human rights issues): Tier 1” identified in the human rights impact assessments conducted in 2022, as well as reduce the associated risks, we have been creating the conditions for implementing a cycle of human rights due diligence. In fiscal 2024, our business companies established a structure where human rights due diligence can be executed, under the responsible departments for each of the seven priority issues and using the standards of the Responsible Business Alliance (RBA)*1 as the management standards.

*1 A coalition of companies that pursue corporate social responsibility across the global supply chain

To improve working conditions and occupational health and safety at OMRON sites, we conducted the RBA Self-Assessment Questionnaire (SAQ) at 22 OMRON Group production sites in Japan, China, the Asia-Pacific, Europe, and the Americas. At one production site in Malaysia, third-party audits based on the RBA standards were conducted. The audit uncovered recruitment fees paid by foreign nationals employed through temporary staffing agencies as well as employment contracts that included disparities with local laws and regulations. To deal with the non-compliant matters, corrective measures were taken, including return of recruitment fees to the foreign national workers concerned as well as changing their employment status to full-time employees, providing an environment for them to engage in the same work as previously done. At five sites in Japan, an employment environment survey of foreign technical intern trainees working for on-site subcontractors was conducted, and all sites were confirmed to have no risk of forced labor.

In the supply chain, 60 critical suppliers and the other 389 suppliers completed self-assessments. Meeting RBA requirements is a shared goal for critical suppliers. In addition, for suppliers which have production sites in areas where the risk of human rights abuses is considered high (China: 151 suppliers, Malaysia: 5 suppliers), measures such as detailed self-checks, confirmation of disclosure information, and individual interviews were implemented. An on-site visit to assess the situation was conducted for a high-risk supplier identified as a result of the survey (China: 1 supplier). The visit revealed a case where personnel who are trained to offer first aid to injured or sick workers were unavailable. OMRON pointed out this issue to the supplier, and improvements were made based on a corrective action plan (See Figure 1).

For products and services, in June 2024, we published the OMRON AI Policy. Based on this policy, we started operating the AI Governance Committee in cooperation with the existing risk management system, and we are working to address the risks of accidents, human rights abuses, etc. caused by the use of AI through products and services provided by OMRON.

Measure (2) Establishment of a Human Rights Remediation and Grievance Mechanism Appropriate to Each Country and Region

We have been establishing a human rights remediation and grievance mechanism appropriate to each country and region so that we can implement remedies through due process if we cause or recognize factors contributing to adverse human rights impacts.

By fiscal 2023, we established consultation desks for employees (including temporary workers) and suppliers in five areas in which OMRON operates its business (Japan, China, the Asia-Pacific, Europe, and the Americas). In addition, we established consultation desks to receive grievances from all stakeholders, including local communities, customers, and secondary and subsequent suppliers with whom we have no direct business relationship. In fiscal 2024, we made operational improvements to increase convenience and reliability of the remediation and grievance mechanism that has been established.

For further details, please refer here to the Structure for Executing Human Rights Due Diligence.