To ESG Investors and Experts
Human Rights and Local Communities
Human Rights Policy, Human Rights Framework, Human Rights Training
The unchanging basic philosophy of AEON is pursuing peace, respecting humanity, and contributing to local communities, always with the customer’s point of view. We to remain faithful to all people by complying with laws and regulations, as well as by practicing correct behavior. Guided by on these values, AEON established the AEON in April 2003. In September 2014, AEON MALL established the AEON MALL Human Rights Policy as an extension of the AEON Code of Conduct, clearly stating our position on human rights and the labor environment.
We follow this philosophy and policy, aiming to be an organization that respects human rights and allows employees to participate in the development of the company, regardless of gender or nationality. We also strive to foster workplaces in which all employees develop their skills to the fullest.
AEON MALL employees receive annual human rights training, and we distribute a pamphlet describing internal and external consultation services. We also clearly state our position on respect for human rights, the prohibition of discrimination, and other matters in our employee rules.
AEON human rights policy
In accordance with this policy, all of AEON executives and employees (AEON People) deepen further their understanding of human rights and help achieve a society that respects these rights. This policy applies to all AEON People, and we share this policy with all business partners.
1. Our approach to human rights
AEON has established the AEON Basic Principles and the AEON Code of Conduct. We also ascribe to the United Nations Global Compact, which we joined in 2004. In accordance with these principles and in compliance with domestic laws on human rights and labor, the International Bill of Human Rights, and the rules on human rights set forth in the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work, we respect the rights of all individuals who are impacted by our businesses. In addition, we support and follow the United Nations Guiding Principles on Business and Human Rights.
2. Respect for human rights in business activities
AEON respects the privacy of individuals as well as their diverse values and personalities and never discriminate against anyone for any reasons, including discriminatory treatment based on race, nationality, ethnicity, gender, age, place of birth, religion, educational background, physical or mental disability, sexual orientation, or gender identity. In addition, we remain mindful of the positions of others and respect them as our equals.
- AEON treats all customers in a fair and impartial manner and provide them with safe, reliable products and services, as well as related information.
- AEON actively communicates with local community members to ensure that we respect their human rights.
- AEON complies with sound corporate ethics and workplace environment-related laws, regulations, and international standards in our business activities by dealing with business partners fairly. Moreover, we improve our performance in this regard continually.
- AEON listens to our coworkers, respect the human rights of each coworker, and create workplace environments that are free of harassment, safe, and employee-friendly. At the same time, we train and educate all AEON People to further their knowledge and understanding of human rights.
3. Implementation of human rights due diligence
AEON conducts due diligence regarding the human rights impacted by our business activities to contribute to achieving a society in which human rights are respected.
Policy statement on children’s rights other than child labor
AEON MALL respects children’s rights and pursues a variety of initiatives.
AEON MALL KIDSDREAM, LLC
Our work experience theme park for children, Kandu, exposes kids to inspiration and the concept of value through “on-the-job” experiences.
Provide children--the next generation of leaders--with valuable experiences that inspire them to dream and hope, moving forward with confidence into the world.
Help children understand the significance of work, the importance of wages, and what it means to live through work experiences that lead to a valuable first step toward the future.
Formulation of Guidelines for Sustainable Transactions
To prevent situations with potential human rights violations and build a sustainable value chain, AEON MALL established our own Guidelines on Sustainable Transactions (“Guidelines”), based on the AEON Human Rights Policy and AEON Supplier Transaction Code of Conduct. Our Guidelines ensure a comprehensive inclusion of international norms and industry human rights matters related to human rights and labor. At the same time, these guidelines identify matters that should be included in our own guidelines based on an assessment of importance. We contribute to sustainable societies by sharing our values with our business partners and using these values as a guide to fulfill our social responsibilities.
We worked with external experts and engaged in the following process to formulate our Guidelines.
- Confirm human rights matters based on international norms, etc.
We referenced the International Bill of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and other international norms on human rights and labor when considering the elements to include in our Guidelines. - Confirm human rights matters in our industry
In addition to international norms, we confirmed the matters related to human rights and labor that are emphasized in our industry when considering the elements to include in our Guidelines. - Assess importance
We assessed the importance of human rights elements identified in steps 1 and 2, defining important matters to reflect in our own guidelines, including child labor, forced labor, working hours, discrimination, and health and safety. - Prepare guidelines and requirements for each human rights matter
We prepared guidelines and detailed requirements for each matter.
Index:
I. Preface
- Purpose
- Scope of Application
II. Guidelines for Sustainable Transactions
I. Preface
1. Purpose
Each year there is increasing demand for businesses not just to make own profit but also to fulfill their corporate social responsibility as a part of their business activities. At the same time, as the international society’s social and environmental issues are becoming more complex, across countries, no one company or organization can tackle these alone.
In response, AEON MALL and each organization involved in AEON MALL's business (business partners) must fulfill its own responsibilities. Each organization should also request that suppliers, subcontractors, and contractors upstream of each organization take action, thereby completing the chain of social responsibility.
These guidelines clarify the issues that AEON MALL would like each organization involved in AEON MALL's business to share. By addressing these issues, each organization will earn the trust and confidence of its stakeholders.
Business activities and organizational management shall be based on the approach to these social issues. Based on these partnerships, we hope to develop mutual and sustainable growth while conducting fair trade.
2. Scope of Application
These guidelines are designed to share the values of AEON MALL with organizations involved in our businesses, and they apply to all companies that do business with us.
II. Guidelines for Sustainable Transactions
1. Laws and Regulations
Shall comply with all applicable laws, regulations, ordinances, and international codes of conduct in countries and regions where business activities are conducted. We request that suppliers, subcontractors, and contractors comply with such laws and regulations and the contents of these guidelines.
2. Child Labor
There shall be no employment or assistance in the employment of children who have not reached the age of 15 or the age at which employment is permitted under the laws of the country, whichever is higher. For individuals who have not yet reached the age of 18 or who are at or above the age at which it is legally permitted to work or employ them, education shall be given priority where there are compulsory education laws, and they shall not be placed in a situation where they would be subjected to physical or mental health risks, harm or danger.
3. Forced Labor
The recruitment and hiring process shall not force and complicit employees to work against their will by means assault, intimidation, confinement, or other unreasonable restrictions on mental or physical well-being or freedom.
4. Working Hours
Shall comply with legislation relating to working hours, breaks and holidays and other industry standards. Overtime work must be voluntary, and should not be demanded regularly. In terms of work exceeding statutory working hours, a determinate overtime allowance shall be paid.
5. Wages and Benefits Package
Shall comply with legislation on national wages and benefits. Wages and various benefits shall be paid and deducted in accordance with the relevant legislation and records shall be kept. Wages shall be above the standard required to meet employees’ basic needs. The paid wages shall include overtime allowances and shall be described in a manner comprehensible to employees.
6. Abuse and Harassment
Shall not engage in any punishment of employees, use of force causing mental or physical pain or use of abusive language. Shall not permit any acts of harassment including gestures, language or physical contact in any workplace within the business activity. Shall not tolerate harassment, not only by any of our employees or staff, but also by our customers and business partners.
7. Discrimination
Shall not discriminate or be complicit in employment discrimination relating to recruitment, wages, promotion, training, termination or retirement on the grounds of race, nationality, ethnicity, gender, age, origin, religion, academic background, physical or mental disability, sexual orientation or gender identity. All decisions pertaining to employment shall be based on criteria relating to the ability to accomplish the required task and free from discrimination or bias.
8. Freedom of Association and the Right to Collective Bargaining
Shall respect employees’ right to organize, join and manage a labor union chosen by the employees themselves, and for the employees’ representative to enter into collective bargaining with the company. Where there are legal and regulatory restrictions imposed on the right to freedom of association and collective bargaining, shall establish as an alternative measure, a contact point as well as a complaint handling system where management and employee representatives can take their concerns and to respond in good faith.
9. Health and Safety
Shall provide employees with a safe and healthy working environment compliant with applicable legislation, in addition to providing effective steps to prevent disease including accidents, injuries and emotional issues relating to potential health and safety. Shall apply similar health and safety standards to dormitories and cafeterias provided to employees.
10. Environment
It shall not be sufficient to only comply with all legislation relating to the environment of the nation and the region in which manufacturing is being undertaken, instead maximum consideration shall be given to the environment. There shall be confirmation that the raw materials and the supplies used conform to the legislation of the nation and region from which they are obtained, that international treaties and protocols are being applied and that the environmental policies specified by AEON MALL are satisfied.
11. Business Transactions
Shall comply with the laws relating to the country of origin of final product and its components and of business transactions of the exporting country and region.
We respect free competition, prevent abuse based on preferential status, and respect intellectual property rights.
12. Local Communities
Shall engage with local communities, respecting the traditions, culture, customs, and rights of communities in the region and country, and respecting laws and regulations.
13. Integrity and Transparency
Shall never be involved in unethical actions such as bribery, kickbacks or profiteering, falsification, manipulation or concealment of records, evidence or testimony in any business activity. Information relating to business activities shall be correctly disclosed in accordance with the applicable regulations and standard business practices.
14. Engagement
Shall integrate the requested content of these guidelines into their own company and their own organization’s management system, and work to resolve social issues occurring throughout the organizations involved./p>
In the future, we intend to share our guidelines with group companies and business partners, asking them to comply with these guidelines. We will also strive to understand the status of implementation, aiming to manage and reduce human rights risks in our supply chain.
Implementation of Human Rights Due Diligence
At AEON, all AEON People (executives and employees) gain a deeper understanding of human rights, and, based on the AEON Human Rights Policy, strive to create a society that respects human rights. The AEON Human Rights Policy* clearly describes a human rights due diligence process. In accordance with the AEON guidelines, AEON MALL began implementing this initiative in 2020. As described in the United Nations Guiding Principles on Business and Human Rights, we will continue our efforts to build a sustainable value chain in our role as a leader in ensuring human rights.
The Human Rights Policy for AEON Co., Ltd.Identify actual conditions and conduct gap analysis
We took inventory of our existing human rights-related activities in Japan and overseas, striving to understand the actual situation. Next, we conducted a gap analysis comparing external demands and our actual situation with respect to policy disclosures on child labor, forced labor, and other human rights risks, as well as systems and operational structures, including access to emergency relief. Based on the results of our gap analysis, we confirmed the key points for further disclosure and initiatives in the future.
Identify human rights issues
We then referenced international norms and guidelines, including the International Bill of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work. In addition, we identified industry-specific issues and identified human rights risks from a larger number of issues related to our company and value chain. These risks included the prohibition of discrimination, equality before the law, and procurement practices.
Conduct risk assessment and identify impact
Based on the United Nations Guiding Principles on Business and Human Rights, we plan to assess the risks of the human rights issues identified in terms of severity and likelihood of occurrence. To reflect our real-world situation more accurately, we will conduct interviews and a written survey on the status of human rights initiatives, including the status at overseas group companies. During the process of risk assessment, we will identify the negative impacts of human rights issues.
Consider mitigation measures
We will identify matters of particularly high impact as priority issues, considering mitigation measures that include responses, preventive and corrective measures, and operating systems.
Implemented
Implementation planned
Implementation Scope Related to Human Rights Due Diligence
During the current fiscal year, we are conducting human rights due diligence, mainly focusing on the upstream portion of our value chain. In the future, we intend to expand the scope of implementation to include downstream contractors and tenants. Here, we plan to confirm the status of compliance with our Guidelines for Sustainable Transactions throughout the value chain, as well as examine measures to address and mitigate negative impacts.
Human Rights Due Diligence Post-Implementation Roadmap
After implementing the human rights due diligence process fully, we will establish a PDCA cycle for corrective action plans. In this way, we will secure a structure for engaging in human rights risk reduction on a regular basis and disclose identified risks in our integrated report cover the next fiscal year.
Responding to Violations of Human Rights
Number of violations and responses
We receive reports on human rights through the Number 110 Code of Conduct hotline. 2In fiscal 2019, we received 19 reports of harassment in Japan and conducted appropriate responses. We have also formulated and implement Harassment Prevention Rules. In June 2020, President Iwamura sent a message to the company about eradicating harassment.
Investment in Local Communities
AEON MALL designs malls to reflect the particular community to be served and local market characteristics. To the greatest extent possible, we create design concepts that incorporate what makes an area unique and attractive. We will continue to operate and manage uniquely appealing facilities by embodying these concepts in exterior and interior designs, leasing, and daily operations.
In addition, we focus on the social issues faced by each region, including rural and urban areas, to solve these social problems by building connections between our business strategies and investments in communities.
Furthermore, we create concept zones in each of our malls that encourage vis-itors to rediscover the attraction of their community's culture, industry, tourism resources, and more. By reflecting the unique features of each community in the design of each fa-cility, AEON MALL aims to instill a sense of community pride that results in residents taking personal ownership of the mall.
To embody the concept of giving back to the community, on the 11th of each month, we ask customers to drop receipts from their purchases into special collection boxes bearing the name of a local volunteer or other organization. AEON MALL donates the equivalent of 1% of the total receipt amount to the organization through AEON gift cards. During fiscal 2020, we donated a total of ¥22.3 million.
Since the opening of our first mall outside of Japan in Beijing in 2008, we have opened 22 shopping malls in China, 11 shopping malls in Indonesia, Vietnam and Cambodia, a total of 33 shopping malls (as of August 2021). In our shopping malls located outside of Japan, our basic policy is to operate them with local staff who fully understand our Company’s philosophy, and we are also making effort to personnel training in every country, and are actively promoting local staff up to managing and executive positions. There are 11 shopping malls outside of Japan with local staff as the general manager (GM), a position that is in charge of the entire shopping mall
Commitment to Local Employment and Procurement
We create thousands of jobs when opening a new mall in a region. These jobs include not only employment at specialty store retail tenants, but also security, guides, cleaning, maintenance, in-building logistics. We are also committed to local employment and procurement. Creating jobs leads to an increase in population and tax revenue, which has an indirect effect on the entire region.
Risk Assessment
Number of violations and responses
We receive reports on human rights through the Number 110 Code of Conduct hotline. In fiscal 2020, we received eight reports of harassment in Japan and conducted appropriate responses. We have also formulated and implement Harassment Prevention Rules. In June 2020, our president and chief executive officer sent a message to the compa-ny about eradicating harassment.
Engagement
Systems to Engage and Become Involved With Non-Profit Organizations
AEON MALL entered into an agreement with the social welfare organization Saiseikai Imperial Gift Foundation, which embodies social inclusion through the comprehensive provision of medical, health, and welfare activities. Through this support, we contribute to local town development where AEON MALL and Saiseikai have operations. As the first step in our contribution activities in June 2019, we sponsored a health-themes AEON MALL Walking event and medical field career experience for children at AEON MALL Takaoka (Toyama Prefecture).
Discussions with stakeholders regarding economic, environmental, and social matters
Under the guidance of the Institute for Global Environmental Strategies Japanese Center for International Studies in Ecology, we created the AEON Hometown Forest Project, which contributes to biodiversity.
Collaboration with human rights organizations
The Japan for UNHCR is a certified NPO established in 2000 to serve as the UNHCR's official point of support in Japan. This organization engages in public relations and fundraising activities to support refugee support and other activities. AEON MALL has been provided physical space to support the Refugee Support Campaign since 2009, this year marking the 10th of our participation. To date, the campaign has raised general awareness of refugees around the world, with the total number of registered members reaching more than 13,000 people. Approximately ¥1.0 billion has been donated in support.
Since 2010, AEON MALL has continued to support the Japan Committee for UNICEF, which has entered into a cooperative agreement with the United Nations Children’s Fund (UNICEF). The United Nations Children’s Fund is an organization that works around the world to protect the lives and rights of children. In fiscal 2019, a total of 77 malls provided space to support the committee’s fundraising program. In addition, AEON MALL Funabashi (Chiba Prefecture) sponsored a walking event to encourage customers to tour museums and other locations to experience local culture. The mall donated the participation fees collected.
Reporting Systems to Ensure Human Rights
AEON MALL complies with the Large-Scale Retail Stores Location Law.
The Number 110 AEON Code of Conduct Hotline is a consultation and whistleblower hotline established for cases where it is difficult to resolve workplace problems within the workplace or inconvenient to consult with a supervisor.
To take outside comments and requests into account when improving services, etc., we have set up a customer feedback system in our stores and online.
Community Investment
Detailed Results, Achievements, and Benefits Related to Community Investments
AEON has been engaged in this campaign since 2001. In fiscal 2020, the total amount donated through AEON MALL facilities nationwide amounted to ¥22,255,091.
To reinvest profits received from customers back into society, the major AEON Group companies donate 1% of pre-tax profits to the club, which engages in activities centered on three main themes: Sound Development of the Next Generation, Promotion of Friendship with Foreign Countries, and Sustainable Development of Regional Communities.
Through the AEON Welfare Fund, labor and management set aside ¥100 per employee on a monthly basis to fund employee volunteer activities for people with disabilities, welfare vehicles for use in special facilities for disabled persons, etc.
The AEON Cheers Club supports children’s environmental activities, helping kids learn rules and etiquette through group activities, while sparking interest and curiosity in the environment, as well as the ability to think independently.
On the 11th of each month, AEON employees volunteer to clean the areas around AEON offices and facilities.
As part of the AEON group’s social contribution activities, we receive a lot of support every year from customers for our fundraising activities held at our malls.
|
JPY 1,370,327 |
|---|---|
|
JPY 451,440 |
|
JPY 1,766,825 |
|
JPY 18,442,969 |
|
JPY 3,068,746 |
|
JPY 3,418,392 |
|
JPY 2,799,710 |
|
JPY 6,955,092 |
|
Feb. 6 - Mar. 7, 2021 |
Total JPY 42,034,201 |
Policies and Guidelines to Ensure Stakeholder Human Rights
The AEON MALL Human Rights Policy (link) stipulates appropriate working conditions for stakeholders, including equal pay for equal work.
Guidelines for Sustainable Trade are also in place and provide rules to ensure stakeholders are not subject to discrimination, as described below.
AEON MALL does not discriminate or engage in discrimination on the basis of race, nationality, ethnicity, gender, age, place of birth, religion, educational background, physical or mental disability, sexual orientation, or gender identity with respect to employment, including hiring, wages, promotions, training, separation from employment, or retirement. The company makes appropriate judgments in all employment-related decisions based on the ability to perform the required functions, without discrimination or prejudice.
Rights of indigenous persons
Violations of rights of indigenous persons
No instances of violations were recorded for FY2020.