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Human Rights and Working Environments in Our Supply Chain

Last Updated: 2021.12.24
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As our business expands across the globe, Fast Retailing communicates and asks our production partners to comply with our policies regarding supply chain labor conditions and respect for human rights. To this end, we are building stronger partnerships with our factories.

Human Rights and Working Environments in Our Supply Chain

Our Policy

We respect the basic human rights of all people who work in our supply chain. One of our most important duties is to protect the physical and mental health, as well as the security and safety, of these people. Our production partners know that we will not tolerate any violation of human rights (child labor, forced labor, harassment, discrimination, physical abuse, etc.). In addition, mechanisms are in place to ensure strict compliance. Fast Retailing asks all production partners to comply with our Code of Conduct for Production Partners, which is based on the core labor standards of the International Labour Organization. We will fulfill our responsibilities in this area, aligned with the UN Guiding Principles on Business and Human Rights and other international human rights principles and declarations.

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Our Approach

Fast Retailing actively works to ensure our policy is effective, confirming that human rights and good working environments are upheld across our supply chain.

• Human Rights Due Diligence throughout the Supply Chain
We conduct human rights due diligence to confirm our products are manufactured ethically across the supply chain. We are also working to strengthen traceability and to confirm good working environments are maintained throughout the entire supply chain, down to raw materials level, in accordance with international guidelines.

• Monitoring Production Partner Labor Conditions
In 2004, we formulated the Code of Conduct for Production Partners, requesting all production partners comply with labor condition standards. To ensure compliance with our code of conduct, we regularly monitor supply chain labor conditions. We regularly engage in workplace monitoring in the supply chain and provide results and feedback to our production partners. We ask factory management to resolve any identified issues, also providing support for improvement. If any extremely serious issues are uncovered, such as child labor or forced labor, we take appropriate action. Such action may include reducing our business volume or ceasing our relationship with the partner in question.

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• Responsible Ordering Through Consistent Procurement Policy Compliance
We protect the labor conditions and human rights of workers at production partners by establishing procurement policies and placing orders via proper procedures. For example, we maintain appropriate order schedules and volumes to avoid sudden increases in production volume that would result in excessive overtime hours at our production partner factories. Our Production and Sustainability departments are responsible for staying up to date on factory labor hours, revising orders when necessary.

• Improving Labor Conditions Through Collaboration With External Organizations
Fast Retailing collaborates with external organizations, taking an active role in addressing human rights and environmental issues in the apparel industry. We are a member of the Better Work program, a labor environment improvement initiative managed jointly by the Fair Labor Association, the International Labor Organization, and the International Finance Corporation. Through this program, we seek to improve our monitoring of labor conditions and introducing more effective internal management processes through responsible procurement policies.

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• Supply Chain Information Disclosure
We provide appropriate information about the labor conditions throughout our supply chain to our stakeholders, including customers, NGOs, media, and investors. Fast Retailing will continue to be proactive in production partner disclosures as well, raising the transparency of our supply chain.

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