Yokogawa Group Slavery and Human Trafficking Statement

INTRODUCTION

Yokogawa Electric Corporation and its Group companies (hereinafter referred to as the Yokogawa Group) respect the basic human rights and personal dignity of all individuals. Pursuant to our commitment to respect human rights, we are releasing this statement in accordance with the requirements of the United Kingdom (UK) Modern Slavery Act 2015.
This statement sets out the steps taken by the Yokogawa Group to prevent slavery and human trafficking throughout our business and supply chain.

BUSINESS AND SUPPLY CHAIN

Founded in 1915, the Yokogawa Group has been engaged in the business segments of Industrial Automation and Control, Test and Measurement, and Aviation and Other Businesses. We contribute to the development of society by providing relevant industries with leading-edge products and solutions based on measurement, control, and information technologies. Across the entire Yokogawa Group, we have as of March 31, 2019 a total of 17,848 employees serving our customers worldwide. We have 113 subsidiaries in 60 countries that manage 230 service offices, and 18 manufacturing sites in 13 countries.
We source raw materials and electronic parts as well as software development and engineering services for the development and delivery of products and solutions in the aforementioned business segments.

HUMAN RIGHTS COMMITMENT

The Yokogawa Group commits to respecting human rights as set out in the Universal Declaration of Human Rights (UDHR) and the United Nations Guiding Principles of Business and Human Rights (UNGPs). We also abide by the 10 principles on human rights, labor, the environment, and anti-corruption of the UN Global Compact, which we became a signatory to in 2009. We seek to ensure that every person we are involved with is not subject to any form of slavery or human trafficking.
Respecting human rights is also a critical component of Yokogawa’s overall sustainability goals. Our approach to addressing slavery and human trafficking lies within our wider human rights commitment. Our agenda is supported by the company's Standards of Business Conduct and The Yokogawa Group Compliance Guidelines, which apply to every person working for the Yokogawa Group.
For our suppliers, we have created the Yokogawa Group Sustainable Procurement Guidelines, which set out our human rights policies and the requirements that we expect them to follow.

HUMAN RIGHTS RISKS AND DUE DILIGENCE

We address slavery and human trafficking risks not only with our own operations, but also throughout our supply chains. To protect human rights, we are enhancing our efforts to exercise due diligence by conducting research and analysis to identify risks in our activities and supply chains, prioritizing areas of response, and making changes wherever there is a need for improvement. Our focus with these activities is on preventing slavery, forced and compulsory labor, and inhumane treatment of workers throughout our operations and our supply chains.
The Yokogawa Group's supply chains are managed with the oversight of its headquarters’ governance functions in a manner that is consistent with the characteristics of each Yokogawa Group company. Our standard contracts with Japanese suppliers include language whose intent is to ensure that the suppliers will meet the expectations set out in the Yokogawa Group Sustainable Procurement Guidelines. The Group audits its suppliers to identify any human rights violations, requests corrections when violations occur, and suspends dealings with them if action is not taken. We also request the suppliers for all contracts made by Group companies based outside Japan to comply with the Yokogawa Group Sustainable Procurement Guidelines. In the future, we plan to introduce the use of a self-assessment questionnaire (SAQ), based on which we will conduct audits as necessary.
We also strive to ensure that the raw materials (tin, tantalum, tungsten, and gold) we source are not directly or indirectly used to generate funds for conflicts. We have been working together with our suppliers to investigate the use of conflict minerals in certain products, in accordance with our customers’ requests. We request suppliers to trace their use of conflict minerals and identify the potential risks of becoming a source of funds for armed groups in the Democratic Republic of Congo or its adjoining countries. If any minerals are found to be a source of funds for armed groups, we will seek for alternative ways to source such minerals.

HUMAN RIGHTS TRAINING

Through annual compliance training and various other relevant training activities, the Yokogawa Group educates its employees on human rights. As part of our initiatives to raise awareness and improve our understanding of risks inherent in our supply chains, we regularly feature human rights and related topics in the newsletter that is distributed throughout the Yokogawa Group. All our employees are encouraged to report any concerns related to our business and supply chains.
On a regular basis, we have also been actively organizing events and training sessions with our suppliers to increase awareness of human rights issues and communicate our expectation that they will comply with our policies on human rights.

Yokogawa also provides compliance helplines for its suppliers and business partners, and has sought through a range of activities to ensure that they are made aware of their availability for their use.

This statement was approved by the Board of Directors of Yokogawa Electric Corporation.

 

Sign of Hitoshi Nara
Hitoshi Nara
President and Chief Executive Officer
Yokogawa Electric Corporation
Date: October 1, 2019

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