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.
We also conduct questionnaire surveys (self-checks) with suppliers who in total account for at least 80% of our total domestic procurement quantity, to further inform them of the Supplier Sustainability Guidelines and confirm their compliance.
The average compliance rate domestically was about 94% (FY2023 figure), and at our overseas subsidiaries (7 out of 11), the average compliance rate was 93% (FY2022 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, since August 2022, 611 managers and related staff throughout the company, including procurement departments, have taken part in Proper Trade Training: Subcontract Act Basics, an online training course run by METI.
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 35 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 FY2023, we worked to level up each company by way of online safety and quality workshops.
In addition to conducting online study sessions in the Sustainability Study Group on SDGs, carbon neutrality, and cybersecurity, we asked for confirmation of respect for human rights and proper employment regarding technical interns. 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.
