We respect our business partners, build strong partnerships on an equal and fair basis, and aim for coexistence and co-prosperity based on mutual trust.
Basic Procurement Policy
For Fair Business Practices
In April 2022, we announced a Declaration of Partnership-Building in support of the purpose of the Council on Promoting Partnership-Building for Cultivating the Future in which government, economic organizations, labor organizations, etc. participate. In accordance with this declaration, we aim to realize long-term co-existence and co-prosperity based on good partnerships with our suppliers. Our views are set out in our Basic Procurement Policies, which are available in the Procurement section of our website.
We also hold company policy briefings with our major suppliers twice a year to share and discuss our policies and business issues and have introduced an evaluation system to strengthen such partnerships, such as by giving awards to outstanding suppliers once a year.
Sustainability Procurement
We have established Supplier Sustainability Guidelines to promote sustainability throughout the supply chain. We ask our suppliers to promote activities addressing issues such as compliance and anti-corruption, human rights and labor, the environment, quality and safety, information security, business continuity, and social contribution.
In addition, to further raise awareness of the guidelines and verify compliance, we have conducted a questionnaire survey (self-check) for the suppliers who account for more than 80% of our total procurement value. At the same time, suppliers are asked to sign a commitment letter pledging their adherence to our Supplier Sustainability Guidelines. The average compliance rate domestically was about 93% (FY2024 figure), and at our overseas subsidiaries (8 out of 11), the average compliance rate was 92% (FY2024 figure).
Regarding environmental substances, we conduct material surveys of suppliers using the JAPIA Standard Material Datasheet. We have also issued Green Procurement Guidelines to promote the procurement of environmentally-conscious technologies and products.
As for conflict minerals, we investigate using the Conflict Minerals Reporting Template(CMRT) and Extended Minerals Reporting Template (EMRT) published by the Responsible Minerals Initiative (RMI) as research tools.
Regarding compliance with the Subcontract Act, continuing from the previous fiscal year, 567 managers and related staff throughout the company, including procurement departments, have completed the Proper Trade Training: Subcontract Act Basics online course run by METI.
To maintain thorough corporate ethics and ensure stakeholder trust, we have established an Ethics and Compliance Hotline to accept reports and inquiries from both inside and outside the company, which is clearly indicated on our website.
Going forward, we will continue to deepen communication with suppliers, ask them to improve on any issues that have emerged, and provide support to help them resolve such issues as part of our commitment to responsible and sustainable procurement.
Various Initiatives with Suppliers
The Pacific Glocal Association consists of 33 of our major suppliers to strengthen our management base and improve our manufacturing capabilities. We jointly conduct plant tours, safety and quality improvement activities, and study sessions. In FY2024, we worked to level up each company by way of online safety and quality workshops.
Through the Sustainability Study Group and other forums, we conducted online study sessions on the SDGs (human rights, etc.), carbon neutrality, and biodiversity and health management. In addition, we share and discuss information concerning management issues and countermeasures with our major suppliers through visits and online interviews, and endeavor to inform them about support regarding public subsidies. We also provide cybersecurity consultation and promote security measures with our suppliers.
