Initiatives for Human Capital Management – From "human resources and management" to "human capital and value creation"-
The value of people as capital is attracting attention
As the Japanese expression "A company is its people" shows, a company is supported by its people. A company can achieve good performance and reputation by encouraging its employees to improve their skills and abilities.
From this perspective, a view of people as "capital" (human capital) has recently been attracting attention. It is considered important to invest in human capital, such as by identifying the knowledge, skills, and abilities of each employee and improving them through education, training and their the work environment, and implementing measures to enhance engagement. According to the definition by the Ministry of Economy, Trade and Industry, human capital management is a management method to improve medium- to long-term company values by enhancing the values of human capital to the maximum.
An era in which human capital information is given in financial statements
With growing interest in ESG (Environmental, Social, and Governance) management, the objective of human resource management has recently shifted from the traditional "management" of human resources to the "value creation" of human capital. In actual business settings, among companies' management resources of "people, assets, and funds," innovation is occurring and new markets are being created based on people's ideas and capabilities.
In accordance with these trends, the U.S. Securities and Exchange Commission (SEC) made "human capital information disclosure" mandatory for listed companies. The necessity for human capital management and information disclosure is growing in Japan as well. Companies will be obliged to disclose information about human capital in financial statements from the fiscal year ending March 31, 2023.
Tackling the development of people who will play active roles in the world
In terms of initiatives related to human capital, TTC Group sets the idea of "Respect human rights, and actively develop people who will contribute to society by nurturing them and giving them opportunities to apply their skills," as one of its six Key Sustainability Issues (Materiality).
As an example of these initiatives, we are making active efforts to develop useful people who will contribute to society by focusing on nurturing human resources who can create business from global viewpoints or actively work in the global market. It also highlights the importance of Diversity, Equity and Inclusion (DE&I), with the aim that diverse employees show their originality as "strong individuals" to establish "strong organizations" affecting each other and evolving together.
A frontrunner in acquiring ISO certification on human capital
Toyota Tsusho Corporation ("Toyota Tsusho") acquired ISO30414 certification on October 31, 2022. While ISO9001 (quality management) and ISO14001 (environmental management) are well known, ISO30414 is an international guideline for human capital information disclosure. Toyota Tsusho is the second company to acquire this certification in Asia including Japan (as of October 31, 2022). Along with this acquisition, Toyota Tsusho has also issued Human Capital Report 2022, which summarizes quantitative information on human capital for the first time in our history. Human Capital Report 2022 introduces measures, efforts, and quantitative information for human capital management based on "strong individuals" and "strong organizations" announced as a message from the management.
Development of worldwide training projects
The following are some examples of specific measures for human capital management.
Global Advanced Leadership Program (GALP)
In cooperation with world leading business schools, and with full mobilization of management officers, this is a six-month program to "learn about the world, the Company, and oneself." It cultivates global leaders with high ambitions who can work actively amongst diverse cultures.
Overseas Language Intern Program
This is a language learning program at an overseas university or language education institution to develop human resources who can deal with the overseas postings of a trading company. After the language program, employees participate in practical training at an overseas subsidiary to study languages, local customs and cultures, and business practices.
Overseas Dispatch of Junior Employees
This system offers employees an opportunity to work overseas within eight years of being hired to equip them with practical overseas experiences and a global perspective.
Toyotsu Inno-Ventures Project (TIVP)
In this project, the seeds of new business are identified by an in-house business competition. Ideas for new business are examined within the company, and the persons in charge receive various guidance and support from external partners and carry out business verification and development to create new business.
Locally-oriented education and training initiatives
TTC Group takes the following initiatives to nurture employees of group companies and local human resources.
Toyota Tsusho NTTF Training Center
This training center was opened in 2018 in the Mandal Industrial Park for dedicated use by Japanese companies in India. The program aims to develop leaders who can take action on-site. Participants learn ways of thinking about Japanese-style manufacturing practices such as manufacturing techniques, safety, and kaizen (continuous improvement) for three years.
Toyota Kenya Academy (2014), Toyota de Angola Academy (2020)
These academies were established to develop vehicle mechanics, aiming to improve the quality of automobile maintenance and to develop human resources who can contribute to realizing a local safe and comfortable automobile society in cooperation with JICA and local government authorities.
Training of Vehicle Mechanics
Toyota Tsusho provides refugees in Uganda, one of the largest host countries for refugees in Africa, with training on vehicle mechanics in cooperation with Group companies and related UN organizations. The program is expected to improve the refugee trainees' livelihood opportunities and thus contribute to self-reliance of refugee communities.
Evaluation of human capital management
Our reputation is growing based on the various initiatives related to human capital both in Japan and overseas. The following are such examples.
Health and Productivity Management (Ministry of Economy, Trade and Industry, Tokyo Stock Exchange)
Toyota Tsusho was selected as a Health & Productivity Stock for the third consecutive year from 2021. Health & Productivity Stock evaluates and selects companies among the companies listed on the Tokyo Stock Exchange for strategic efforts on handling of employees' health from a management perspective.
"Platinum Kurumin" certification (Ministry of Health, Labour and Welfare)
Toyota Tsusho has achieved the action plans it formed and submitted based on the Act on Advancement of Measures to Support Raising Next-Generation Children. It has been certified as "Kurumin" since 2007 and was certified as "Platinum Kurumin" in 2020 as a company supporting child-rearing.
"Eruboshi" Certification (Ministry of Health, Labour and Welfare)
Toyota Tsusho was certified as "Eruboshi (certification stage 2)" in July 2016 as a company that satisfies certain standards based on the Act on the Promotion of Women's Active Engagement in Professional Life and offers excellent circumstances regarding the promotion of women's active engagement.
"Semi Nadeshiko Brand 2022" selection (Ministry of Economy, Trade and Industry, Tokyo Stock Exchange)
Toyota Tsusho was selected as a "Semi Nadeshiko Brand 2022" as an excellent listed company regarding the promotion of women's active engagement.
We will realize various work-life balances for all the employees and promote a work environment in which employees can show their full abilities toward achievement of action plans based on the Act on the Promotion of Women's Active Engagement in Professional Life by the end of fiscal 2025.
Career Select Ability (CSA) Award (en Foundation for HR development)
Toyota Tsusho Africa Division was awarded the 3rd CSA Award (for companies recommended to people in their 20s for creating the human capital of the next generation) in recognition of its provision of an environment in which employees in their 20s are given major roles and projects. CSA stands for Career, Select, and Ability. The CSA Award was established to recognize companies that are addressing social issues through their core business and are developing and producing businesspersons that society needs for the future.
Human resources strategy proceeding to the "next new stage"
The world is continuing to change with unprecedented scope and speed as it moves toward a decarbonized society and develops digital transformation. TTC Group has set its Global Vision to "Be the Right ONE": to become an irreplaceable and one and only presence for its partners and stakeholders. We are stepping forward to the challenge of the next new stage.
As the next new stage in our human resources area, each of our employees shall develop their own unique "tag" expertise and strength that are second to none to become attractive human resources so that we can evolve into a team of organically connected professionals. We will make active efforts in the implementation of human capital management in order to promote "value creation" of human capital.