We revised the personnel system in 2021 and reviewed the operation of the target management system. With the concepts of “promotion of a culture to take on challenge,” “simplicity & openness,” and “human resource development”, aiming to align the achievement of individual goals with the achievement of higher-level policies and performance improvement, we reinforce the alignment between departmental and divisional policies and individual goal management.

Specifically, members attend meetings when setting organizational goals, “degree of importance” and “qualification requirement levels” are set based on the expected roles for each qualification, and coordination meetings are held to calibrate criteria for goal ranking within departments. According to the survey conducted in FY2023 on the FY2022 initial target-setting meeting, more than 90% of employees responded positively, saying that they were able to "understand" or "almost understand" the goal levels required to achieve.

Regarding risks associated with “human rights and labor practices,” to fulfill the company’s responsibility to respect human rights, we promote business activities that respect human rights based on FEG Human Rights Policy and conducts human rights due diligence. In addition, we analyze the results of whistleblowing and compliance awareness surveys to take remediation measures when necessary.

To reduce risks in the area of labor, we prepared checklists to assess the labor compliance undertaken in accordance with the laws and regulations of the countries where our group operates, establishing a system to periodically check the labor risks across the Group. Also, individuals responsible for human resources at group companies in Japan meet twice a year to share information on policies and issues related to human resources and labor within our Group and strive to strengthen the Group’s cooperation on various issues.

Regarding labor-management dialogue, we maintain the basic position that both labor and management should endeavor to engage in sincere discussions. As such, we focus on issue resolution and the deepening of mutual understanding based on that position. We have held our Central Management Briefings twice annually for formal exchanges of opinions between labor and management for 70 years since FY1952. Representatives from labor and management actively exchange opinions and share information about a broad spectrum of items at these briefings, such as business environment, management, and topical matters. We also have in place various committees which are designed to improve the working environment, such as the Personnel System Exploratory Committee and the Committee for Studying Shorter Hours. Management and labor discuss things on a daily basis at these committees. Through these discussions, we are working to resolve various issues, such as improving the system and strengthening the monitoring function for compliance response.