• Approach and Initiatives for Respecting Human Rights in the Supply Chain
• Addressing identified human rights issues

Epson has declared in its Human Rights Policy that human rights should be respected not only by Epson but also by its suppliers. As stated in the Human Rights Policy, Epson is not only committed to complying with the UN Guiding Principles on Business and Human Rights and respecting internationally recognized human rights as stated in the Universal Declaration of Human Rights and others but is also committed, as a member and supporter of the RBA's (the Responsible Business Alliance) objectives, to ensuring that suppliers comply with the RBA Code of Conduct. (Guiding Principle 16(c)) Through these efforts, we aim to ensure that human rights are respected throughout the supply chain of Epson products.

１．Establish and Commit to a Policy (Process of respect for human rights described above ① ) [Guiding Principle 16]

Epson believes that respecting human rights in its corporate process is an important corporate responsibility, with Management Philosophy and Principles of Corporate Behavior at the core of its management. In 2005, Epson established Epson Group the Policies regarding Human Rights and Labor Standards based on the United Nations Global Compact and had been practicing actions in accordance with this policy.
In April 2019, we also joined the Responsible Business Alliance (RBA), a non-profit organization that supports the rights and well-being of workers and communities affected by the global supply chain and are working with our suppliers to promote business activities in accordance with the RBA Code of Conduct.
Furthermore, Epson is strengthening its human rights initiatives to respond to new challenges in the ever-changing global business environment. Epson revised the "Epson Group the Policies regarding Human Rights and Labor Standards" as of April 1, 2022, in compliance with the UN Guiding Principles on Business and Human Rights, through a resolution of the Board of Directors as the "Epson Group Human Rights Policy.

In addition, Epson has established the Epson Group Supplier Guidelines, consisting of the RBA Code of Conduct and Epson's policies. Epson requests suppliers to comply with them and obtain written consent.

２．Human Rights Due Diligence (Process of respect for human rights described above ② ) [Guiding Principle 17-21]

Among all stakeholders involved in business activities (customers, shareholders and investors, local communities, business partners, NGOs and NPOs, employees, etc.), Epson has identified the supply chain as a high priority from the perspective of human rights.
Under the requirements for a Regular Member of the Responsible Business Alliance (RBA) on supplier management*¹, Epson confirms compliance with each item of the RBA Code of Conduct (labor and human rights, health and safety, environment, ethics, and management systems), and works to remedy and redress, as well as to affirm status of respecting human rights of indigenous people and foreign migrant workers.  For over 10 years, we have been conducting annual human rights impact assessments using CSR assessments and other measures for our major suppliers, including not only direct material suppliers such as parts and manufacturing contractors but also other business partners (on-site service providers, human resources agencies such as recruitment agencies and staffing agencies, logistics companies, etc.). In addition to the self-assessment in which suppliers respond to the designated forms, included in the human rights impact assessment is confirmation by on-site verification and audits. The identified adverse impacts are remedied, corrective action plans are formulated, and recurrence prevention measures are taken.
In addition to identifying adverse impacts through assessments, Epson recognizes the importance of reporting through grievance mechanisms and other means as measures for human rights impact assessment.

3. Evaluation Results, Prevention/Remediation (Process of respect for human rights described above ③)

Through the above assessment activities, we identify adverse human rights impacts at suppliers and implement prevention and mitigation measures for them.

4. Monitoring (Process of respect for human rights described above　④)

Epson continues to conduct annual CSR self-assessments and similar to confirm supplier compliance with the RBA Code of Conduct. In addition, Epson has received confirmation of compliance with the RBA Code of Conduct E12 (Supplier Responsibility) and D7 (Responsible Mineral Sourcing), among others, during ongoing VAP audits at Epson manufacturing sites. Indirect workers (employees of on-site service vendors and dispatch workers,) are included in the scope of the audits and are used as a means to identify adverse human rights impacts and we redress any non-conformities or deficiencies when detected.
In addition, information reported through grievance mechanisms and similar is used as a means of measuring the effectiveness of addressing adverse human rights impacts.

5. Communication and Reporting (Process of respect for human rights described above ⑤)

Epson discloses its progress and achievements in respecting human rights in its supply chain, as well as the status of its own group companies, in its Sustainability Report on the Web after an annual review by the responsible person. With regard to modern slavery and human trafficking, Epson publishes an annual statement on the Modern Slavery Act of each country, including the United Kingdom, and reports on the Epson Group's efforts to address this issue.

６．Remediation　[Guiding Principle 22，29，30 and 31]

All group companies in Japan and overseas have set up a contact point for suppliers to receive consultations and reports. Anonymous reporting and reporting in local languages are allowed, and we strictly prohibit any retaliation for reporting. We are also a member of the Japan Center for Engagement and Remedy on Business and Human Rights (JaCER), a complaint-handling platform that complies with the UN Guiding Principles on Business and Human Rights, to promote dialogues and remedies.

Epson has developed a program for suppliers who are high-priority targets for addressing adverse human rights impacts and is promoting activities worldwide.

1. Informing Suppliers of the Code of Conduct through Supplier Guidelines and Obtaining Their Consent

The Epson Group Supplier Guidelines are available in seven languages (English, Japanese, Simplified Chinese, Spanish, Portuguese, Thai, and Indonesian) to ensure that they are understood by many suppliers. We publicize the guidelines on the web and each Group company in Japan and overseas has made this information known to all suppliers. In 2024, when the guidelines were revised, we held a briefing session to explain the revision to our suppliers and earned their understanding of the details of the Supplier Code of Conduct (the RBA Code of Conduct). In addition, we have obtained written consent from over 2000 suppliers to comply with the above Supplier Guidelines.

2. Education through Human Rights Seminars

Every year, Epson conducts a human rights seminar for suppliers, inviting outside experts as guest speakers.
At the seminar, in addition to the policy and status of Epson's initiatives, we provide information on Epson's approach to respect for human rights and the latest information on the global and Japanese situations surrounding human rights.
More than 300 suppliers participate in the seminar every year, and in FY2024 approximately 300 companies/500 people attended.

< Seminar program >
Seminar 2024
Theme: Business and Human Rights and International Labor Standards 
Guest speaker: 
Mr. Ryusuke Tanaka, Program Officer, External Relations and Labor Standards Specialist, International Labour Organization (ILO) Office in Japan
Ms. Mami Kamoshita, Program and Operations Officer, International Labour Organization (ILO) Office in Japan
Seminar 2021, 2022, 2023
Theme:  Business and Human Rights
Guest speaker: 
Mr. Keisuke Hanyuda, CEO, OWLS Consulting Group

3. Due Diligence through SAQ, Remediation, etc.

Epson has conducted annual supplier due diligence for over 10 years.
We use the Self-assessment questionnaire (SAQ), which checks compliance with the RBA Code of Conduct, to understand the status of our suppliers' efforts to respect human rights. In addition to implementing human rights remedies, we provide feedback to each supplier on matters that require action at that supplier's base, request that they take action, and confirm whether any corrections have been made. The RBA Code of Conduct alone covers a wide range of human rights issues, particularly in section A: Labor. However, we have identified and evaluated particularly salient human rights issues also in consideration of the ILO Core Labor Standards, the principles of the United Nations Global Compact, and so forth.

• Reimbursement of Recruitment Fees to Foreign Workers
  Through the self-assessment, we identified a case that foreign workers who hired by on-site manufacturing contractors at our manufacturing sites, had paid recruitment-related fees in their home countries of foreign workers. (such as commissions, language training fees, and visa acquisition fees).
  →(Remedies and Corrective Actions) We held discussions with the manufacturing contractor and confirmed through evidence that the reimbursement had been completed. Furthermore, we have agreed with the manufacturing contractor in question to ensure that there will be no payment by workers for recruitment fees in the future.
• Employment Contracts
  Through self-assessment, we identified that employment contracts at multiple suppliers were lacked certain items of terms and condition, and were not written in a language that workers could understand.
  →(Remedies and Corrective Actions) We have provided detailed explanations to the relevant suppliers regarding the items that should be included in their employment contracts, requested them to change the format, and have confirmed that they have completed remedial and corrective measures. 
• Holidays
  During a VAP audit conducted at our manufacturing sites, it was identified that on-site security company was not paying overtime wages and holiday allowances and that holidays were not being granted.
  →(Remedies and Corrective Actions) We have requested the relevant security company to pay the wages and allowances in question and to grant holidays, and have confirmed the completion of the remedial corrective measures.

4. Remedies through Reporting Channels for Business Partners  [Guiding Principle 22, 29 and 31]

The mechanisms allow reporting in the local languages and are operated in strict compliance with the prohibition of retaliation for reporting. In addition to the Epson Group Supplier Guidelines and the recommendation to inform and use the mechanisms at briefing sessions, reporting can be made via the website, and we are working to operate reporting mechanisms that are easy for stakeholders to use. We assist in reaching remedies for adverse human rights impacts that are identified as a result of reports from supplier employees or their legitimate representatives as well as audits.
(Examples of remedies and corrective actions)
A case in which overtime wages were not paid due to damage to recording equipment at an on-site manufacturing contractors at our manufacturing sites
→(Remedies and Corrective Actions) We identified the case through the reporting channel, made the manufacturer pay for the wage shortage, and confirmed that corrective measures had been taken to prevent a recurrence.