Supply Chain Procurement Questionnaire Results and Objectives

We conduct a procurement questionnaire as an assessment of whether or not our suppliers are engaged in the Ten Principles of the UN Global Compact that is the foundation of our Human Rights Policy, Procurement Policy, Anticorruption Policy, Environmental Policy, and other policies, including protection of human rights, elimination of unfair labor, and addressing environmental problems.

 

In conducting the survey, we require all participants to watch a video explaining our Group’s ESG initiatives as well as the purpose of our Procurement Policy and Procurement Guidelines, and we also exchange opinions through the questionnaire system.In addition, the Group holds briefings and individual explanatory sessions for relevant departments including the Merchandise Department, which handles procurement. Through this series of training sessions, we deepen understanding of sustainable procurement within the Company.

In terms of KPIs, we have set a target to raise the sustainable procurement rate (defined as procurement from suppliers responding to the questionnaire divided by total company procurement) to 80% by 2030. The result in FY2024 was 78.7%.

The results of the questionnaire showed that many suppliers have constructed internal systems for implementing sustainable initiatives and enacted measures for “ensuring safety and quality,” “fair and equitable trade as well as full compliance with laws and regulations,” and “proper information management.” On the other hand, a significant number of suppliers are still facing challenges in calculating GHG emissions and setting reduction targets. We are engaging in dialogue with suppliers to support them in addressing these issues collaboratively.

 

In addition, in FY2024 we also conducted an assessment of downstream supply chain partners (delivery service partners) (See p. 65 “Respect for Human Rights” for more information). By expanding the scope of assessments beyond upstream suppliers to include downstream partners as well, we aim to reduce risk across the entire supply chain and contribute to resolving broader social issues.