The Shin-Etsu Chemical Group supports the Universal Declaration of Human Rights. At the same time, we respect basic human rights in accordance with the core labor standards of the International Labour Organization (ILO). We conduct our business based on the constant respect for human rights at our locations around the world. In May 2019, we compiled this policy into the “Human Rights Policy,” thoroughly implemented it within the Group, and disseminated it to public. In May 2024, in light of changes in the social environment surrounding human rights and with the approval of the Managing Directors’ Meeting attended by all directors, audit & supervisory board members and corporate officers, we reviewed and revised the Human Rights Policy based on the UN Guiding Principles on Business and Human Rights. The revised Human Rights Policy has been communicated throughout the Group and is also available on our website.

In addition, in order to confirm the status of compliance with our Human Rights Policy, we conduct an annual survey of our consolidated companies regarding items related to respecting human rights^*, labor management, and whether employment is properly implemented in accordance with the laws and regulations of each country and region. Furthermore, we consider human rights impacts on local communities when building new plants.

Shin-Etsu Chemical’s Human Rights Enlightenment Promotion Committee and the Human Rights Due Diligence Subcommittee established within the Sustainability Committee play a central role in promoting overall human rights due diligence based on the UN Guiding Principles on Business and Human Rights. The Human Rights Enlightenment Promotion Committee consists of approximately 30 members, including administrative managers at Shin Etsu Chemical plants, sales branch managers, and human rights officers of Group companies, and is chaired by the corporate officer in charge of human resources at Shin-Etsu Chemical. The committee meets every year to review the previous year's activities and to discuss and decide on the activity plan for the current year. The Human Rights Due Diligence Subcommittee formulates human rights policies, conducts human rights risk surveys for the Group, identifies priority human rights risk issues, and the establishment and maintenance of a system for consulting and reporting on human rights in cooperation with relevant departments.

Furthermore, the company is a member of both the Industrial Federation for Human Rights, Tokyo and the Corporate Federation for Dowa and Human Rights Issue, Osaka. We discover human rights developments and obtain latest information through federation activities and training sessions held by administrative organizations to promote awareness of human rights.

In December 2019, we began conducting human rights risk surveys with all Group companies to identify human rights risks in the Group's value chain. As a result, we were able to confirm that no serious violations of human rights had occurred that conflicted with our human rights policy. Furthermore, starting in May 2025, we began conducting the second human rights risk survey with all Group companies based on our revised human rights policy. The Group will continue to conduct corporate activities based on respect for human rights.

In FY2021, we evaluated the priority of human rights issues based on the risks assumed for the Group from the two axes of "severity of potential impact on human rights" and "relationship between human rights risk and the company". As a result, the Group identified potential risks related to health and safety and working hours as high. In addition, in an analysis of the responses to the human rights risk survey, approximately 40% of Group companies responded that human rights management in the supply chain is important, indicating the need to promote efforts to respect human rights throughout the supply chain. The results of the evaluation were reported to the outside directors and outside audit & supervisory board members. The received comments and the survey results were disseminated throughout the Group as the priority risks for human rights risks of the Group. We will continue to address priority issues step by step.

The Shin-Etsu Group is actively working to ensure that employees' working hours are properly and correctly recorded, for example by introducing a system to accurately track working hours based on card readers installed at plant entrances, computer logs, and other data. We are also promoting the development of systems and working environments that enable flexible and highly productive work styles, such as the flextime system, telecommuting, and the Shinkansen commuting system.