Governance
Basic Approach
Based on the idea that respect for human rights is the foundation of our business activities, the MITSUBISHI MOTORS Group supports and respect international standards and norms such as “the International Bill of Human Rights,” “the United Nations Guiding Principles on Business and Human Rights,” “the ILO’s Declaration on Fundamental Principles and Rights at Work,” and “the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises on Responsible Business Conduct.”
We established our “Human Rights Policy” after consultation with experts and approval by the Executive Committee, with the aim of conducting our business activities in a manner that respects the human rights of our stakeholders. This policy outlines fundamental matters such as support and respect for international standards and norms regarding human rights, and matters for compliance. The policy also stipulates specific measures to prevent and reduce negative impacts on human rights, to provide remedial measures, and to provide education for officers and employees. This policy has been translated into English and made available on our website to all our stakeholders in Japan and overseas.
In article 8 of the MITSUBISHI MOTORS Group Global Code of Conduct, “Respect Human Rights and Diversity, Provide Equal Opportunity,” stipulates that discrimination, retaliation and harassment are not permitted in any form or to any extent, and that the diversity of suppliers, customers, executives, employees and local communities shall be respected in addition to respecting human rights.
In addition, taking into account domestic and international laws and requirements related to environmental and human rights risks, we are reviewing revisions to existing standards such as the “Human Rights Policy” and “Supplier CSR Guidelines,” and considering the establishment of due diligence policies related to the environment and human rights, with input from outside experts.
Consideration for Human Rights in Work and Investment
The Company believes that building positive relationships based on mutual understanding between employees and everyone in the community is essential to the sustainability of our business, when establishing business sites or related facilities, we give consideration to the cultural values of the country and region, including customs and religions.
Initiatives at Dealers
At dealers, we carry out initiatives to provide a work environment with consideration for the health and safety of employees and we prohibit acts that infringe on human rights.
Management Structure
The Group’s efforts in addressing respect for human rights are mainly focused on the sustainability, human resources, procurement and administration divisions, while also incorporating advice from external experts. In addition, in November 2024, the Company established the Human Rights Committee chaired by the Representative Executive Officer, President & CEO. The Committee is held approximately three times a year to discuss major human rights-related matters, and important matters are reported to and deliberated by the Board of Directors. Matters reported to and deliberated by the Board of Directors are shared by the Human Rights Committee members with relevant divisions and are used to improve efforts to respect human rights both internally and externally.
In addition, we have positioned the risk related to business and human rights as a priority risk with high potential impact and urgency and have integrated it into the Company-wide risk overseen by the Internal Control Committee to ensure appropriate management.
Disclosing Information
To appropriately respond to human rights due diligence reporting requirements in various countries and regions, as well as international standards for sustainability reporting, we are considering enhancing information disclosure, including disclosure of prevention and mitigation measures, to ensure transparency.
Strategy
The Group promotes respect for human rights as a companywide initiative by integrating it into each materiality. The KPIs and progress related to each materiality are monitored by the Sustainability Committee and the Human Rights Committee, both chaired by the Representative Executive Officer, President & CEO.
Specifically, through the medium- to long-term targets and KPIs set for materiality themes such as “Contribution to Local Economy through Business Activities,” “Promoting Diversity and Inclusion, and Enhancement of Employee Engagement,” and “Achieving a Sustainable Supply Chain,” we are working together with employees and business partners to raise sensitivity to human rights risks and enhance practical responses. Through these efforts, the awareness of respect for human rights is becoming embedded throughout our corporate activities, serving as a foundation for fulfilling our social responsibilities.
Risks and Opportunities
Across various jurisdictions, legislation mandating corporate respect for human rights is being introduced, particularly with regard to supply chain due diligence. The urgency to address human rights risks throughout the value chain is increasing rapidly. We recognize that failure to respond to or disclose information in a timely and appropriate manner with respect to these laws and regulations could not only constitute legal violations but also result in damage to our brand image due to a decline in public trust, potentially affecting business activities such as production, development, procurement, and sales.
In addition, with the growing momentum-especially in Europe- toward mandatory human rights and environmental due diligence (mHREDD) in the battery manufacturing process, the Group has identified salient human rights risks that require prioritized action. for the Group’s business and stakeholders. In the automotive industry as well, companies are increasingly required to address broader and more complex issues.
Salient Human Rights Risks
- Forced Labor: Risk of labor performed under coercion, threat, or deception, infringing upon the right to freely chosen work.
- Conflict-Affected and High-Risk Minerals: Risk of child labor and forced labor associated with the sourcing of minerals such as tin, tantalum, tungsten, gold (3TG), cobalt, and mica: Risks of child labor and forced labor related to conflict minerals and responsible mineral sourcing.
- Occupational health and safety: Risk of injury and illness caused by poor working environments or hazardous work.
- Consumer safety and right to inform: Risk of adverse impacts on consumers’ physical or mental health due to unsafe products or misleading labeling, undermining their right to accurate information.
- Access to Remedy: Risk that affected stakeholders are unable to access effective grievance mechanisms or obtain appropriate remediation for human rights harms.
- Harassment: Risk of deterioration of the work environment due to power harassment or sexual harassment.
- Human rights issues related to the environment and climate change: Risk of environmental destruction and infringement of the rights of local residents caused by corporate activities.
- Child labor: Risk of labor by children below the legal minimum working age.
- Rights of Indigenous Peoples and Local Communities: Risk of adverse impacts on the rights of Indigenous Peoples and local communities, including land rights, cultural heritage, and free, prior and informed consent (FPIC) caused by corporate activities.
Risk Management
Environmental and Human Rights Due Diligence Process
The Group has committed to identifying, preventing, or mitigating the negative impacts of its business activities on the environment and human rights through a system of human rights due diligence. In addition, due diligence has already been initiated with a limited number of suppliers while the development of this system is being advanced with the involvement of external experts.
Identification and Assessment of Salient Risk in the Value Chain
To identify and assess salient human rights risks across our
value chain, we collaborate with external experts and apply
internationally recognized frameworks. For the identification
and assessment of human rights risks, we created a risk map
using the guidelines published by the Global Compact Network
Japan and evaluated and prioritized each risk category based
on its severity and likelihood of occurrence.
In addition, the Group recognizes that employees are
essential stakeholders in sustainably growing the Group and
enhancing business value. Any infringement of employee dignity
or fundamental rights not only undermines our human resources
strategy but also leads to decreased engagement. Furthermore,
such violations could have a significant adverse impact on the
Group’s products and quality, potentially posing risks to customers.
Therefore, the Group recognizes that human rights violations
related to working conditions, health, and safety of employees as
salient risks for our business activities and stakeholders.
Human Rights Risk Management in the Supply Chain
The Group is committed to fair and responsible business
practices that prevent human rights violations within our
supply chain. We determine transaction terms, including pricing
and delivery schedules, through thorough consultation with
suppliers. In addition, we promote two-way communication
with our business partners through management based on the
Supplier CSR Guidelines. We are also considering revisions to the
Guidelines, with input from external experts, to incorporate due
diligence in the supply chain.
Since FY2024, we have begun analyzing human rights
risks including those related to conflict minerals in the supply
chain using AI-based analytical tools. At the same time, we
are working to prevent and remediate human rights risks
associated with raw material minerals for EV batteries.
We recognize the importance of audits and on-site
inspections of suppliers identified as high-risk for human rights
issues and are examining initiatives targeting Tier-N suppliers,
including those at the material, raw material, and smelter levels.
Furthermore, we plan to conduct monitoring of these
preventive and mitigation measures going forward.
Corrective Measures and Remediation for All Stakeholders
If it becomes clear that the Group has caused or been involved
in adverse human rights impacts, we will work to provide
remedies through appropriate internal and external procedures.
We are promoting the establishment of multiple contact
points for corrective measures and remediation. Confidentiality
and user anonymity is guaranteed at all of these consultation
offices. We ensure that whistleblowers and people who
seek consultation do not suffer retaliation or discrimination.
Additionally, if it is determined that an investigation is necessary
not only within the Company but also within the supplier, we
will share and control information with the compliance staff
of the supplier, and work with them to respond collaboratively,
agreeing in advance on prohibited actions, such as finding the
informant or retaliating against the informant.
Details of responses and remedial measures for human
rights violations or suspected violations will be disclosed in a
timely manner on the Company’s website and included in the
Sustainability Report.
Grievance Mechanism
In order to ensure access to an effective grievance mechanism for all stakeholders across our value chain, the Company has joined the Japan Center for Engagement and Remedy on Business and Human Rights (JaCER), a general incorporated association. JaCER provides a non-judicial grievance platform called the “Engagement and Remedy Platform,” in alignment with the United Nations Guiding Principles on Business and Human Rights, and endeavors to reinforce the effectiveness of the grievance mechanism by acting in a professional capacity to support and promote companies to redress grievance to respect the responsibility to respect human rights.
Employee Whistleblowing and Consultation Offices (Global)
We have established internal and external consultation offices (helplines) for employees, along with the MITSUBISHI MOTORS Global Hotline, which offers assistance in multiple languages.
Customer Service Centers
The Customer Contact Center serves as a direct point of contact
to receive inquiries, comments, and requests from customers
nationwide regarding vehicle purchases and handling. We
strive to provide sincere and attentive responses that exceed
customer expectations, aiming to build long-term relationships
with our customers.
The Center also accepts reports and consultations related
to human rights. In addition, based on the idea of protecting
employees engaged in customer service from customer
harassment and providing a safe working environment, we have
formulated our “Approach to Customer Harassment.”
Metrics and Targets
| Medium-Term Targets |
|
|---|---|
| FY2024 Results |
|
FY2024 Initiatives
Human Rights Assessments
As part of our human rights due diligence, we have been conducting human rights assessments*1 in Japan and overseas
since FY2021, and in FY2024, we conducted the assessment
at Mitsubishi Motors Philippines Corporation (MMPC). In order
to evaluate the impact of employee participation, one-on-one
interviews were conducted between the assessment
organization and employees with diverse attributes. To ensure
objectivity and consistency with international standards,
the assessment was carried out by an external assessment
organization.
Although no issues were identified in the assessments
conducted to date that would have a significant impact
on human rights related to our business or employees, we
are formulating and implementing countermeasures and
conducting monitoring in response to the issues pointed out by
the evaluating organizations.
Additionally, starting from FY2024, we have begun analyzing
risks related to human rights and conflict minerals in the supply
chain using AI. We have identified and assessed human rights risks throughout the value chain and have started due diligence
efforts upstream in the supply chain.
- Items such as wages (payroll records, overtime, unfair wage deductions), child labor (employment under 15), forced labor (freedom of movement and retirement), discrimination (harassment), health and safety (training and education, evacuation disaster prevention), and remedies (consultation services) are evaluated in consultation with an external evaluation organization, using ILO standards and industry initiatives as reference.
Implementation of Preventive and Mitigative Measures
Based on the results of past human rights assessments, we have been working to reduce human rights risks through the following process.
- Summarize assessment results
- Identify matters requiring improvement and determining the department in charge and action plans
- Monitor implementation status
- Report to the Human Rights Committee
We are also considering deploying findings from the assessments horizontally across the Group to reduce human rights risks Group-wide. Going forward, we plan to conduct broader human rights assessments and, based on the identified critical risks, advance the examination of preventive and mitigative measures, as well as promote the monitoring of those measures and information disclosure.
Employee Education and Training
At MITSUBISHI MOTORS, the Corporate Officer in charge of
the Human Resources Division takes the lead in working
with regional Human Resources Divisions to raise employee
awareness of human rights. In order to encourage all executives
and employees to cultivate their respect for human rights, the
Company is offering courses toward understanding human
rights within its various training programs, including each job
rank and entry-level employee training.
In FY2024, we conducted a total of 730 hours of human
rights training for 760 employees, including entry-level
employees, mid-career employees and newly promoted
managers (department general managers and section
managers). Trainings for executives were also conducted. In
addition, we launched an e-learning program on “Business and
Human Rights.”
Education and Training Record (FY2024 MITSUBISHI MOTORS)
| Targets | Training content | Number of Participants | Attendance Rate |
|---|---|---|---|
| Executives | Sharing of the latest trends on “Business and Human Rights” by outside lecturers | 49 | ― |
| Newly promoted general managers | Raising awareness of social human rights issues required for workplace management, sharing information on respect for human rights, prevention of harassment, and response in the event of occurrence, etc. | 70 | 100% |
| Newly promoted managers | Recent topics related to human rights, harassment revention, responding to incidents when they occur, and the role of manager | 174 | 100% |
| Mid-career employees (Newly promoted employees) |
Recent topics regarding human rights. The relation between our business and human rights, etc. | 307 | 100% |
| Entry-level employees | The significance of corporate initiatives regarding human rights. Fundamental knowledge regarding human rights, etc. | 208 | 100% |
| Those who wish to participate | Promote LGBTQ awareness | 485 | ― |
| All employees | Promote LGBTQ awareness (e-Learning) | 9,259 | ― |
| Business and human rights (e-Learning) | 8,665 | ― | |
| Compliance Officer / Code Leader |
Input of information related to business and human rights | 156 | ― |
Message from the President on Human Rights Day
Coinciding with “Human Rights Day” on December 10, to raise awareness, each year MITSUBISHI MOTORS’ Representative Executive Officer, President & CEO disseminates a message to all executives and employees regarding respect for human rights, emphasizing the importance of sincere words and actions, as well as enhancing awareness of our human rights policy and explaining the importance of our human rights initiatives.
Participating in External Initiatives
- Industrial Federation for Human Rights, Tokyo
- Mitsubishi Group Human Rights Enlightenment Committee