Accelerating initiatives for human rights respect

Companies are expected to commit to sustainability-related activities and stakeholders are becoming more interested in their environmental, social and governance initiatives. Human rights is a crucial issue that falls into the social category of ESG.

In a recent materiality analysis, Nissan defined human rights as one of the most important items to be addressed. For Nissan, human rights simply mean treating people with respect. As a global automaker, we collaborate with various stakeholders, including many suppliers. We conduct business while respecting our business partners' human rights.

We have published the "Nissan Human Rights Policy Statement" and drawn up specific action points to respect employees' human rights, which are included in the "Nissan Global Guideline on Human Rights." These policies have been disclosed internally and externally.

We also established a cross-functional team on human rights last year. Its initiatives are ongoing across many areas, including human rights due diligence training, a grievance mechanism for potential human rights violations, and internal and external communication.

As part of these efforts, the team recently held a session on business and human rights with external experts. The session - Nissan's first stakeholder engagement on the theme of human rights - was held in September at the Nissan Global Headquarters in Yokohama, Japan.

It was attended by four leading human rights experts: Ryusuke Tanaka (International Labor Organization), Emi Sugawara (Osaka University of Economics and Law), Daisuke Takahashi (Japan Federation of Bar Associations) and Keiichi Ujiie (Global Compact Network Japan). Several members of Nissan's HR division and Sustainability Development team also participated and a broad range of opinions were exchanged.

Nissan's participants spoke of specific actions the company has taken to strengthen its initiatives, including defining a roadmap toward 2030 and an aspirational statement" for human rights. They also discussed the establishment of a governance structure to increase internal stakeholders' commitment and efforts to improve information disclosure.

In response, the external experts provided the following valuable feedback:

Tanaka: "In considering how to fulfill your social responsibility as a company, it's vital to first understand the role Nissan is expected to play in society. The first step toward this goal is to try to have a viewpoint on what society will look like in 2030, how the automotive industry will evolve and what Nissan wants to be in that context."

Sugawara: "You must examine how you position your commitment to human rights in the context of sustainability efforts, and how you link human rights to your overall business. Then determine what kind of rights for whom exist in what parts of your supply chain."

Takahashi: "The firm integration of human rights policies into the management system with proactive participation from management teams is a prerequisite for promoting business and human rights activities. In that respect, Nissan's efforts to establish a cross-functional team and working groups under its top management and chief sustainability officer are highly commendable."

Ujiie: "I often find that while many companies are pleased to disclose what they have accomplished, they're reluctant to disclose what they're now working on or planning to do, much less what they're undecided on or whether they should work on something. This information has value and should be disclosed both internally and externally." The external experts also provided Nissan with opinions and suggestions on identifying and evaluating salient human rights issues.

Takahashi: "We see potential human rights issues in the automotive industry, especially in two areas: migrant workers and workers in emerging countries. Migrant workers are generally in a vulnerable position and are at high risk of forced labor due in part to the exploitation of commissions by brokers during the recruitment process. Also, emerging countries generally have governance gaps1, so it is essential to comply with local laws and be aware of international standards. In addition, mineral procurement and environmental protections are important themes in the automotive industry as supply chain issues. I'd like to see the industry tackle these issues by setting decent priorities in a balanced manner."

Tanaka: "Regarding migrant workers, they are highly vulnerable due to the accumulation of all factors such as social, economic and cultural backgrounds, including poverty in their home countries, debt to travel and obtain jobs, living in a different culture and weak bargaining power to improve working conditions. Another human rights issue that society is paying attention to is gender equality in employment. Some people can't work or must quit their jobs because of their gender or sexual minority status. This is a violation of the right to work."

Nissan will incorporate the feedback from this session into its human rights due diligence cycle - which includes identifying human rights issues and assessing human rights impacts when launching new businesses - and implement appropriate measures. In addition, it will promote initiatives to address human rights risks through dialogue internally as well as with all its stakeholders, including suppliers.

Opportunities to engage in dialogue with external experts on business and human rights result in valuable feedback. They also improve stakeholders' understanding of Nissan's activities in this area. Therefore, we will continue to promote them.