Human Rights and Labor Standards

Human Rights Policy

Heiwa Real Estate Group considers respect for human rights to be a basic requirement for business continuity, and we comply with laws and ordinances on human rights for workers in all countries where we operate. We also support and respect international treaties on human rights, including the International Bill of Human Rights, which includes the Universal Declaration of Human Rights and other covenants; the International Labor Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work; and the UN Guiding Principles on Business and Human Rights.
We formulated the Heiwa Real Estate Group Human Rights Policy in December 2021 and will work to implement human rights initiatives in line with this Policy.

Major Initiatives

Disseminating the Company Policy on Labor Standards

We are working to disseminate the Heiwa Real Estate Human Rights Policy by translating the Policy into English, sharing the contents within the Company, and making the Policy available for external audiences on our company website.
In FY2022, there were no violations of applicable laws, regulations, or Company rules and policies in the Company's business, services, or transaction methods.

Offering traineeships or internships and implementing initiatives to improve youth unemployment rates and to employ people who lack opportunities, including those without formal training or qualifications or of low social status

Heiwa Real Estate runs an internship program to give students opportunities that allow them to make better career choices. The program is open to university undergraduate and postgraduate students.

Risk Assessment for Labor Issues

Heiwa Real Estate recognizes that working conditions in the real estate industry are an important human rights issue, particularly measures put in place to prevent workplace accidents during contract work. We work to prevent all sorts of risks that we have identified as priority concerns, through dialog with our suppliers and other business partners.

Equal Opportunities for Work
(Action to reduce discrimination, improve equal opportunities, and ensure a diverse workforce that does not discriminate on the basis of race, religion, gender, age, sexual orientation, disability, or nationality)

Through our human rights initiatives that are based on our Corporate Code of Conduct, Standards for Behavior for the Heiwa Real Estate Group, and Heiwa Real Estate Group Human Rights Policy, we actively and voluntarily fulfill our social responsibilities and educate all our employees to have a correct understanding and awareness of human rights issues.
Specific initiatives include ongoing training and e-learning sessions covering the various types of harassment and discrimination, including sexual harassment and power harassment. We have also established a compliance hotline and external reporting desk to allow internal and external parties to report and discuss issues like harassment.

Human Rights Impacts and Risk Assessments

We work to ensure the human rights are respected for all stakeholders involved in our business activities, including those involved in actual projects as well as local communities. We achieve this through ongoing risk assessments of human rights compliance in both new project proposals and existing businesses, following the procedures set out in our company's risk management processes.

Human Rights Policy

Support for International Initiatives

The Heiwa Real Estate Group supports and respects the OECD Guidelines for Multinational Enterprises, International Labor Standards, and the UN Guiding Principles on Business and Human Rights.
In December 2021, the Group also announced its support for the United Nations Global Compact. Based on the 10 Principles derived from the UN Global Compact focus on human rights, labor, environment and anti-corruption, the Group will promote responsible management and contribute to the realization of a sustainable society.

The 10 Principles of the UN Global Compact

Human Rights	Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and Principle 2: make sure that they are not complicit in human rights abuses.
Labour	Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; Principle 4: the elimination of all forms of forced and compulsory labour; Principle 5: the effective abolition of child labour; and Principle 6: the elimination of discrimination in respect of employment and occupation.
Environment	Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: undertake initiatives to promote greater environmental responsibility; and Principle 9: encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption	Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

United Nations Global Compact

Human Rights Training

We use e-learning programs and other methods to educate all officers and employees on human rights, in order to further understanding of respect for human rights and elimination of discrimination.
In fiscal 2022, we ran e-learning training programs and seminars by legal experts on preventing power harassment.
We also uploaded compliance-related regulations, such as the Standards for Behavior for the Heiwa Real Estate Group, on the Company intranet to spread awareness of how to eliminate discrimination and harassment.

Due Diligence on Human Rights

We are considering the introduction of due diligence processes for human rights and are engaging with ongoing initiatives.
As set out in our Sustainable Procurement Policy that was formulated in March 2021, we require our business partners to comply with various sustainability matters, including human rights.

Discussing and Reporting Human Rights Issues

Based on our Internal Reporting Regulations, we have set up a compliance hotline within the Group to ensure that, as a company, we are quickly made aware of instances of organizational or individual misconduct or violations of laws and ordinances and implement corrective measures. This system also promotes compliance with Group ethics and laws and ordinances. An internal or an external reporting desk can be selected when reporting any issue, in order to protect those using the compliance hotline and ensure users understand they can contact the Hotline at any time without negative consequences.
To ensure fair dealings with our corporate business partners, we have established an external reporting desk where people can report issues relating to non-compliance or suspect behavior by Group officers and employees. By setting up multiple points of contact in this way, we are working to create an environment that promotes discussion, where issues can be identified at an early stage and quickly resolved, and where measures can be put into place to prevent recurrence.

Initiatives to Reduce Overtime Work

• Established “No Overtime Day”
• Pre-approval system for overtime
• Understanding of work hours, and raising employee awareness regarding overtime

Prevention of Child Labor and Forced Labor

There have been no incidents of child labor or forced labor as of this writing.
To prevent any future incidents, we are thorough in maintaining compliance with laws and regulations and conduct monitoring of our operations.

Wage Management

We comply with minimum wage regulations in each country and pay wages that exceed these levels. An employee's age or gender makes no difference to the wages that we pay. We continue to keep abreast of our compliance with laws and ordinances and manage our wages to accurately reflect the hours worked and overtime completed.
Our average annual salary for fiscal 2022 was ¥10.87 million.

Efforts to Ensure Diversity

In order to increase corporate value over the medium and long term, we strive to provide workplace environments where a diverse pool of talent, including both new graduates and mid-career recruits, can maximize their abilities and actively participate regardless of their race, religion, nationality, gender, or sexual orientation. We evaluate employees according to their individual abilities, not personal attributes, when deciding promotions to managerial roles and our basic policy is to be inclusive of diversity. Under this basic policy, we employ both new graduates and mid-career recruits

Building Positive Relationships between Labor and Management

Our Code of Conduct and Heiwa Real Estate Group Human Rights Policy specify our respect for human rights in terms of freedom of association and guaranteed collective bargaining rights, as well as equal employment opportunities for all employees.
We also work to build positive relationships between labor and management, for example through compliance questionnaires and interviews with those in managerial positions as appropriate.

Data

Number of workplace accidents

To ensure the safety of our employees, each fiscal year we set a target of zero deaths from workplace accidents.

Data marked with ✓ are guaranteed by a third party.

Note: Accidents logged for all employees, including contract workers