Compliance

• Basic Policy
• Promotion System
• Initiatives for Corporate Ethics and Legal Compliance
• Internal Reporting and Establishment of Consultation Hotlines
• Compliance Education and Training
• Respect for Human Rights

Basic Policy

Viewing compliance as an important management issue, we implement various initiatives to ensure compliance among all directors and employees not only with all applicable laws and regulations, but also with business and social ethics. We aim to improve our compliance activities by thoroughly implementing the ESG Charter and the Code of Ethical Conduct, which serve as the guidelines for the behavior of each director and employee, enabling us to build relationships of trust with our stakeholders.

Promotion System

We have established, under the Engine of Sustainability Management, a Compliance Committee, an organization that supervises the corporate ethics and compliance of the Kaneka Group. The Compliance Committee meets twice a year to set compliance policies and targets for the Kaneka Group and to check on progress. We also work to oversee and direct the entire Group on compliance matters, to check the status of awareness and compliance, and to establish and maintain the appropriate consultation and reporting hotlines.

Initiatives for Corporate Ethics and Legal Compliance

Kaneka Group carries out business activities globally and as various rules are strengthened around the world, we must ensure even greater legal compliance. Improving compliance is important for building trust with stakeholders and vital for our business activities. Our Fair Trade Management Regulations require directors and employees to engage in fair transactions not only in sales and purchasing but also in all business operations; and prohibit anti-competitive conduct related to antitrust laws and other fair trade laws in Japan and overseas.

Strengthening Legal Compliance – ESG Evaluation Audits

There were no serious violations of laws, regulations, or rules in FY2024.
We conduct ESG evaluation audits to ensure that our business activities and labor-related matters comply with laws and regulations. In FY2024, we conducted audits across all Kaneka business divisions, 31 Group companies in Japan, and 20 Group companies overseas to evaluate compliance with competition laws, such as Japan’s Antimonopoly Act. Managers of Kaneka and certain Group companies in Japan involved in sales, purchasing, and business development are required to undergo antitrust compliance training and submit a written pledge. In labor-related matters, at Group companies in Japan, we confirmed the status of issues related to the April 2024 revision of the Labor Standards Act, ensured employees took at least five days of paid leave annually, and checked overall leave usage.

Anti-Corruption and Anti-Bribery Initiatives

As a signatory to the United Nations Global Compact, Kaneka Group has declared its commitment to “work against corruption in all its forms, including extortion and bribery,” as stated in the Ten Principles.
Our Code of Ethical Conduct stipulates that we shall strive to maintain lawful and sound relationships with political and government entities and with all our business partners. The Compliance Guidebook also provides an easy-to-understand explanation of corruption and bribery prevention.

Internal Reporting and Establishment of Consultation Hotlines

To prevent compliance violations and ensure early detection and remediation, we have established whistleblowing (internal reporting) services within the Company and at outside law firms.
The whistleblowing services accept reports and consultations regarding misconduct (violations of laws and regulations, internal rules, and corporate ethics by directors and employees). The services are available to Kaneka Group directors and employees and their families, former employees who have resigned within the past year, and businesses with which the Company has relationships, including partner companies and suppliers. The services can be used anonymously.
Our Whistleblower Protection Regulations define the reporting framework, response procedures for consultations, and responsibilities of those involved, to ensure that whistleblowers and those seeking consultation are not subject to adverse treatment in violation of the Whistleblower Protection Act. These rules also strictly maintain the confidentiality of whistleblowers, those seeking consultation, and the content of reports and consultations.
We have also established consultation hotlines for harassment at each workplace. Each one is staffed with several counselors, including Health Consultation Office and Human Resources Department staff as well as labor union representatives.
Kaneka’s internal rules stipulate that members who receive consultations through the whistleblowing services or various other forms of consultation must maintain rigorous confidentiality and protect personal information, and prohibit the leaking of information.
In FY2024, there were three cases of reporting and consultation. Fact-finding investigations and hearings were conducted, and the cases were handled in accordance with rules on whistleblowing and other criteria. Details of the cases are reported to the Compliance Committee chair.

Compliance Education and Training

On the company’s intranet, we provide a Compliance Guidebook that explains in easy-to-understand terms matters directors and employees should be mindful of in their work, incorporating relevant laws, policies, and regulations.

Excerpts from the Compliance Guidebook

We publish a Compliance Newsletter for employees of Kaneka and Group companies in Japan to deepen their understanding of compliance. In FY2024, we covered three topics, including “Points to Note in Transactions with Subcontractors,” using manga illustrations to provide easy-to-understand explanations of laws and internal rules.

We will continue to conduct various training programs to strengthen legal compliance and raise awareness.
We also conduct annual harassment prevention training to maintain a healthy and harassment-free workplace and to promote employee awareness and understanding, while striving to create a more comfortable work environment.

Human Rights/Compliance Education

Going forward, we will carry out initiatives to strengthen legal compliance and raise awareness of compliance, striving to ensure that we conduct our business activities in a fair, appropriate, and transparent manner.

Respect for Human Rights

Human rights are inherent rights that enable all people to live with dignity, and they are rights that each and every one of us is born with.
Ever since our establishment in 1949, we, the Kaneka Group, have practiced respect for human rights in our management. We see respect for human rights as a fundamental principle that should be upheld by each company of the Kaneka Group and each of its employees. We have always kept an awareness of respect for individuality and consideration for human rights in our corporate activities.
To further pursue a world where the human rights of every person are respected and materialize our philosophy of KANEKA thinks “Wellness First,” we established the Kaneka Group Human Rights Policy in October 2025 following a Board of Directors resolution. The Kaneka Group continues to fulfill its responsibility to respect human rights by having the Engine of Sustainability Management at the center of such efforts, which works together with relevant departments.

Kaneka Group Human Rights Policy [Japanese] (274KB)