Compliance

• Basic Policy
• Promotion System
• Initiatives
• Internal Reporting and Establishment of Consultation Hotlines
• Anti-Corruption and Anti-Bribery Initiatives
• Respect for Human Rights

Basic Policy

Viewing compliance as an important management issue, we implement various initiatives to ensure compliance among all directors and employees not only with all applicable laws and regulations, but also with business and social ethics. We aim to improve our compliance activities by thoroughly implementing the ESG Charter and the Code of Ethical Conduct, which serve as the guidelines for the behavior of each director and employee, enabling us to build relationships of trust with our stakeholders.

Promotion System

We have established, under the Engine of Sustainability Management, a Compliance Committee, an organization that supervises the corporate ethics and compliance of the Kaneka Group. The Compliance Committee meets twice a year to set compliance policies and targets for the Kaneka Group and to check on progress.
We also work to oversee and direct the entire Group on compliance matters, to check the status of awareness and compliance, and to establish and maintain the appropriate consultation and reporting hotlines.

Initiatives

Kaneka Group carries out business activities globally and as various rules are strengthened around the world, it faces a need for even greater legal compliance. Improving compliance is important for building trust with stakeholders and vital for our business activities.

ESG Evaluation Audits: Reinforcing Legal Compliance

There were no serious violations of laws, regulations, or rules in fiscal 2022.
We conducted ESG evaluation audits at all Kaneka business divisions, 28 Group companies in Japan, and 20 Group companies overseas in the area of competition laws like the Antimonopoly Act in Japan. Executives of Kaneka and of certain Group companies in Japan who are involved in sales, purchasing, and business development are required to undergo antitrust law compliance training and submit a written oath. At Group companies in Japan, we confirmed the preparation status for issues related to the Labor Standards Act Revision.

Compliance Education and Internal Awareness Raising — In-house Training

The “Ethical Code of Conduct” and “Compliance Guidebook” that all of our directors and employees should follow are posted on the company’s intranet.

Excerpts from the Compliance Guidebook

We will continue to conduct various training programs to strengthen legal compliance and raise awareness.

Human Rights/Compliance Education

In fiscal 2022, we issued a compliance newsletter, which we circulated to employees of Kaneka and our Group companies in Japan to deepen their understanding of compliance.
Going forward, we will carry out initiatives to strengthen legal compliance and raise awareness of compliance, striving to ensure that we conduct our business activities in a fair, appropriate, and transparent manner.

Internal Reporting and Establishment of Consultation Hotlines

To prevent compliance violations and ensure early detection and prevention, we have established whistleblowing (internal reporting) services within the Company and at outside law firms. The services are available to Kaneka Group directors and employees and their families, former employees who have resigned within the past year, and businesses with which the Company has relationships, including partner companies and suppliers.
We have also established a consultation hotline for harassment and assigned several counselors to each workplace, who are made up of Health Consultation Office and Human Resources Department staff as well as labor union representatives.
In fiscal 2022, there was one case of reporting and consultation. Fact-finding investigations and hearings were conducted, and the cases were handled in accordance with internal rules. The details of the case are reported regularly to the Compliance Committee.
In addition, we have established rules on whistleblowing and employee employment regulations to ensure that whistleblowers and consultants are not subject to any discrimination.

Anti-Corruption and Anti-Bribery Initiatives

As a signatory to the United Nations Global Compact, Kaneka Group has declared its commitment to “work against corruption in all its forms, including extortion and bribery,” as stated in the Ten Principles.
Our Code of Ethical Conduct stipulates that we shall strive to maintain lawful and sound relationships with political and government entities and with all our business partners. The Compliance Guidebook also provides an easy-to-understand explanation of corruption and bribery prevention.

Respect for Human Rights

Human rights are the rights that anyone can feel, the right to live like a human being, which each and every one of us is born with. Since its foundation, Kaneka has practiced respect for humanity in its management. We have a fine tradition of maintaining a culture and climate that tries to make the most of the good qualities of each individual. We see respect for human rights as a fundamental principle that should be upheld by the Company and each of its employees. Throughout our business activities, we strive to raise awareness of respect for individuality and human rights.
To maintain a workplace environment where all employees feel healthy and fulfilled in their work and where there is no harassment, we will deepen awareness and understanding among employees and make the workplace environment a more comfortable place for them to work.