.jpg)
In January 2023 we conducted the first “supply chain procurement questionnaire” as an assessment of whether or not our suppliers are engaged in suitable management and operations. The questionnaire centers on 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.
The Company has set an objective of achieving a 70% sustainable procurement rate (procurement from suppliers responding to the questionnaire / total Company procurement) by 2030. The result in fiscal 2023 was 68.8%.
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 “complete information security.” Regarding “consideration for the environment,” we learned that there are many suppliers who are facing issues in construction of an internal promotion system and information disclosure.
We will continue the supply chain procurement questionnaire in the future in order to identify issues with human rights, environment, and others in the supply chain, and discuss solutions to be carried out in cooperation with suppliers when improvements are necessary.
We will also work to improve engagement by actively establishing opportunities for dialogue with suppliers who fail to respond.
