The Company established the KJR Management Human Rights Policy in December 2022. This Policy was established with the approval of the Board of Directors, after receiving advice from an external specialist agency on human rights, followed by deliberation at the Sustainability Committee.
Under this Policy, the Company supports international human rights norms such as the Universal Declaration of Human Rights, the International Bill of Human Rights, the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work, the UNGC and the UNGP, and applies this Policy to the Company’s officers, employees, dispatched employees, and all other persons who engage in work for the Company. At the same time, the Company expects its business partners to support this Policy and cooperate with the implementation of measures regarding respect for human rights by complying with this Policy.
KJR Management Human Rights Policy
The Company recognizes the importance of measures throughout the supply chain to realize a sustainable society. We have established the Sustainable Procurement Policy which sets out our procurement policies for all products, raw materials, other materials, and services that we procure, as well as policies on respect for human rights. Expecting our business partners to also implement procurement in accordance with the Policy, we strive to realize sustainable procurement throughout the supply chain.
Sustainable Procurement Policy
The Company has developed a mechanism of human rights due diligence, as described below, as set forth in the Human Rights Policy, with reference to the UNGP.
We have also identified, assessed, and ranked by priority level, human rights risks that may impact stakeholders related to the Company, investment corporations which entrust the Company with asset management, and various funds which entrust the Company with discretionary investment management or investment advice (the “Funds”).
We have identified the following four types of stakeholders who may be impacted:
For each type of stakeholder, we identified human rights risk items relevant to the Company and the Funds, with reference to human rights risks listed in major international rules and frameworks, including UNGP and international guidance on human rights (UNEP FI: United Nations Environment Programme Finance Initiative Human Rights Guidance Tool).
In order to assess the impact and severity of human rights risks, we conducted an analysis of human rights risks from two perspectives: “impact on human rights” and “connection with the Company.” For the impact on human rights, we considered the severity of the risk (severity of human rights violations). For the connection with the Company, we considered whether the Company is a direct source of impact or whether the impact occurs in its supply chain. We then prepared human rights risk mapping based on the selected risk items. In the assessment process, we also took into account the opinions of an external specialist agency.
<List of Priority Issues>
We have identified those issues that have a greater impact on human rights and connection to the Company as high priority issues. We assess and analyze risks identified as priority human rights issues within the Company or in our supply chain through interviews with relevant persons and stakeholders who may be affected, and examine preventive measures and monitoring responses.
Human rights risk assessments are reviewed as appropriate when there are changes in the environment.
We conduct compliance training for all officers and employees, including seconded employees and dispatched employees, four times a year. With this compliance training as a base, we provide in-house education on matters related to human rights and various types of harassment. In addition, we will continue to raise awareness of priority matters, including the basic matters for responses related to respect for human rights, through email newsletters and other means.
Also, management and the Human Resources Department communicate messages regarding the importance of diversity, equity and inclusion, and various systems to support balancing work and child rearing, including parental leave.
More information can be found in the Diversity, Equity & Inclusion section.
When appointing a new supplier, we conduct preliminary research and examinations based on our selection criteria. Also, for suppliers who are continuously appointed, we carry out annual evaluations, and if any issue requiring attention is found, we check the relevant supplier’s systems and other matters to make sure that they have no negative impact on human rights and other issues.
The Company operates the Risk Management Committee, in which senior management personnel serve as members. The Committee understands and investigates matters related to major human rights risks and formulates countermeasures and management policies. Regarding business risks, including priority issues related to human rights risks, it checks the risk status of each division once every three months using a Risk Control Matrix (RCM), and reports the results at the Committee, thereby implementing evaluation and management.
In addition, we conduct monitoring to prevent any negative impact on human rights and to understand the current situation.
Based on indicators related to priority issues, monitoring of overtime work and stress checks, we urge relevant divisions to improve the situation where necessary.
More information on indicators and results can be found in the Diversity, Equity and Inclusion section.
We conduct regular supplier evaluations once a year to check whether suppliers meet our selection standards and whether there are any special issues requiring attention.
In addition, the property management company carries out annual supplier evaluations, including evaluations of their organizational systems and sustainability initiatives, and asks them for consultations and improvements, as necessary. Furthermore, annual audits of a number of companies are implemented, including interviews regarding details of their business policies, compliance systems, and status of sustainability initiatives.
We will disclose information on the status of our response to human rights issues on this website as appropriate.
We have established an internal inquiry counter for all executives and employees as well as our business partners in order to receive consultations and reports regarding violations of laws and regulations, information management violations, various types of harassment, human rights, and the working environment. In addition, we have designated the internal inquiry counter of KKR & CO. INC., and an external law firm as an external point of contact for these matters, for consultation and reporting, and have secured a route for external consultation and reporting.
When the internal inquiry counter receives a whistle-blowing report, the Head of the Compliance Office assumes responsibility and the Compliance Office investigates the facts.
All contact points are available at any time, and reports can be allowing anonymous reporting at all inquiry counters. It is considered that the system will protect whistle-blowers from disadvantageous treatment in accordance with the Whistleblower Protection Act and our Whistle-Blowing Rules.
If, as a result of the investigation, corrective measures and measures to prevent recurrence are needed, we will take appropriate actions accordingly. Also, at the end of the investigation, the Company shares with the whistle-blower the conclusion as to whether the reported event is regarded as a fact or not and the details of necessary corrective measures, as well as notifying the whistle-blower of the progress of the investigation as necessary during its course.
Compliance Reporting Desk for Business Partners
We accept consultations and reports concerning legal violations, information management violations, various types of harassment, human rights, and the working environment in our business.
Basic Policy
KJR Management (the “Company”) has adopted “practicing responsible property investment and contributing to solve global issues” as its strategy for sustainability in accordance with its mission of “Always create new values, for people, the community and the world.” Recognizing that the pursuit of improvements in the areas of human rights, labor, the environment, and the prevention of corruption is a social responsibility that is expected and required of us, we are moving forward with such initiatives. In 2016, we signed the United Nations Global Compact (UNGC), and have carried out initiatives to put its 10 principles into practice. With the aim of continuously improving our commitment to human rights, we have established the Human Rights Policy and take action in accordance with the United Nations Guiding Principles on Business and Human Rights (UNGP).