Basic Approach to Respecting Human Rights

For human rights issues, we have formulated the “SCB Group Human Rights Policy” and commit to meeting the responsibility of a business enterprise to respect human rights. We conduct our business operations bearing in mind the impacts of our business activities on human rights. In addition, we also expect our customers and suppliers to respect human rights in accordance with this Policy.

Human Rights Due Diligence

The SCB engages in human rights due diligence by adhering to the United Nations Guiding Principles on Business and Human Rights to prevent and mitigate adverse human rights impacts. In view of the SCB’s business environment, we identified the human rights issues and assessed them based on the severity of impact and likelihood of occurrence, then created a map of these human rights issues. Based on the results, we are deliberating with relevant divisions on future policies to address these human rights issues. The human rights issue map will be revised on an ongoing basis in view of changes to the business environment, etc.

Specific Actions to Enforce Respect for Human Rights

The Group Sustainability Promotion Committee, comprised of executive officers from the SCB Group companies, invited an expert on “Business and Human Rights” to discuss respecting human rights as a financial institution. We also conducted training on our initiatives to promote respect for human rights for all officers and employees. In addition, through dialogues with stakeholders, we will continue to seek understanding on the SCB’s approach to human rights.

In addition to the above, we undertake the following initiatives.

The SCB’s Initiatives for Employees

In order to prevent harassment, we have raised awareness through training and other means, as well as conducting regular interviews between employees in each division and Personnel Division staff to understand the workplace environment and resolve issues.

For health of employees, we introduced a system to control long working hours by establishing “no-overtime days” and prohibiting work after 9 p.m. In addition, we have various measures to promote the use of paid leave, and in fiscal 2024, we established a new “premium leave” (a system for taking paid leave for three consecutive business days).

In addition, in order to prevent health problems caused by overwork, we take measures to provide medical examinations, etc. to employees who work long hours.

The SCB’s Initiatives for Customers, Etc.

To prevent violation of privacy, we published “Declaration of Personal Information Protection” on the handling of personal information and established specific management methods in our personal information management rules and bylaws, thereby establishing a system required of businesses handling personal information and process related to individual numbers.

We recognize a risk that the products and services we provide could be used for money laundering and other activities that could lead to adverse human rights impacts, and we are committed to preventing money laundering, financing of terrorism, and counter proliferation financing.

Initiatives Related to Customers

In the framework of credit screening, the impact of ESG factors on the creditworthiness of the customer is qualitatively evaluated, and credit decisions are also made based on the evaluation results. Based on the Equator Principles, we assess the environmental and social impacts of projects in the decision-making process on project finance, etc., and continuously monitor the status of environmental and social considerations even after the project has been put into operation.

While the national technical intern training system and specified skilled worker system are under review, we held seminars on topics such as the technical intern training system and human rights issues. We also collaborate with organizations sending workers from abroad to support shinkin banks’ customers in utilizing foreign human resources in a way that respects human rights.

Initiatives Related to Suppliers

In selecting outside contractors, we evaluate their commitment to the SDGs including human rights.

In addition, when investing in funds, we evaluate the ESG investment stance of the entrusted asset management company and make investment decisions based on the evaluation results. When outsourcing the handling of personal data, etc. to outside vendors, etc., we check their personal data management system, etc. to prevent any violation of privacy, and provide appropriate supervision on the security management of the entrusted personal data, etc.

Grievance Mechanism

The SCB Group is committed to establishing a system to respond appropriately to comments and complaints on human rights.

[Internal reporting & consultation systems]

We have a “compliance hotline system” to enable officers and employees who detect compliance violations to report directly to the compliance supervisory division or a corporate lawyer. Moreover, we are making employees aware of the system through various training programs, etc. and working to detect compliance violations at an early stage by encouraging active uses of the system. In addition to having a person in charge of receiving complaints and consultation regarding harassment, we also provide employees the opportunity to consult with a full-time outside counselor.

[Contact for consultation and requests]

We actively collect customer requests on products and services received at sales branches and at our headquarters, and respond to them promptly and courteously, while striving to utilize the collected requests and other information in our business operations.