Since 2003, Aeon has been periodically conducting audits and risk assessments to all our outsoucing factories producing of TOPVALU brands to respect for human rights, preserve of the natural environment, and find social challenges, all in accordance with the Aeon Supplier Code of Conduct.

Before embarking on human rights due-diligence of entire Aeon Group's supply chain, we first reviewed our own activities and engaged in dialogue with stakeholders in 2018. Through this process, we prioritized initiatives to address three deficiencies and clarified key issues to be addressed.

As a first step, we updated the Aeon Human Rights Policy and revised the Aeon Supplier Code of Conduct (CoC) to conform therewith. We are currently addressing corporate social responsibility issues across our supply chains in their entirety.

1. Expansion of scope (depth): Pertains to producers of raw materials. The top priority is fresh foodstuffs (agricultural products, livestock, and seafood). After evaluating fresh raw materials, we plan to evaluate deli items, processed foods, apparel, and household and recreational merchandise, in that order.
2. Expansion of scope (breadth): Dissemination of and education on the Aeon Supplier Code of Conduct for suppliers of our group companies’ private brand merchandise.
3. Monitoring of the treatment of foreign workers and foreign technical interns: Expansion of subject matter of audits and other assessments, including initiation of questionnaire surveys of outsourcing contractors.

Prioritization of efforts based on human rights risk mapping of fresh products

As our initial approach to supply chain, it was targeted at fresh food. Because unprocessed foodstuffs had not been previously a subject to Aeon Supplier CoC audits, CoC compliance of fresh foodstuff supply chains had never been verified yet. We accordingly designated audits of fresh foodstuff supply chains as our top priority. Additionally, we identified human rights of foreign workers, an increasingly serious problem in recent years, as a significant human rights risk and stepped up monitoring of the treatment them. Many foreign workers and foreign technical interns work at foodstuff production sites. We will confirm that their human rights are being respected by making sure they are, for example, properly employed, furnished with a safe working environment, and able to communicate with their employer’s management.

In August 2018, we assembled three representatives from NGOs and three academic experts to discuss the results of an internal human rights impact assessment. They shared their opinions on a wide variety of topics, including best practices for conducting assessments, the importance of addressing child labor and other human rights problems at foodstuff production sites and accountability to customers with respect to supply chain issues.

In October, we met with UNI Global Union Asia & Pacific Regional Secretary Christopher Ng while he was visiting in Japan from Singapore. He shared his ideas on conducting human rights due-diligence through cooperation between labor and management. His input helped us to clarify issues to address through our future due-diligence initiatives.

Future Plans on Respect for Human Rights