ITOHAM YONEKYU Group Procurement Policy
Under its Group Philosophy, ITOHAM YONEKYU Group has established this policy with the aim of conducting responsible procurement activities based on dialogues between its executives, employees and suppliers, in order to contribute to the sustainable development of society while continuing to be a company that can deliver safe, reliable and high-quality products and always meet the trust and expectations of its customers.
１.Compliance and fair business activities
We will conduct fair and appropriate procurement activities with our suppliers while complying with laws and regulations, and respecting international rules. In addition, confidential and personal information related to procurement activities will be kept under strict control.
２.Ensuring safe and reliable quality
In accordance with our Group Quality Management Policy, we conduct procurement activities that prioritize safety and reliability.
３.Respect for human rights
In accordance with our Group Human Rights Policy, we respect and comply with international norms to promote procurement activities that eliminate all forms of discrimination, forced labor and child labor in our supply chain.
４.Consideration for the global environment
In accordance with our Group Environmental Philosophy and Environmental Code of Conduct, we promote procurement activities that take the environment into account.
５.Collaboration with suppliers
Aiming to co-exist and co-prosper with our suppliers, we promote sustainable procurement activities throughout our supply chain.
ITOHAM YONEKYU Group Supplier Procurement Guidelines
Under its Procurement Policy, ITOHAM YONEKYU Group has established ITOHAM YONEKYU Group Supplier Procurement Guidelines, in order to further fulfill its social responsibilities in collaboration with its suppliers. The Guidelines set forth specific compliance requirements for all domestic and international suppliers, in areas such as legal compliance, human rights and environment. We ask all suppliers of ITOHAM YONEKYU Group to understand and cooperate with these guidelines.
1. Compliance with laws and international regulations and development of systems
In addition to complying with the laws and regulations of each country and region, suppliers shall respect international regulations, conduct business in a fair and just manner, and strive to improve relevant internal systems.
(a) Compliance
Suppliers shall understand and respect local laws/regulations and international regulations.
(b) Proper management of information
Suppliers shall exercise appropriate control over personal information and other confidential information obtained from business partners. In addition, suppliers shall not infringe the intellectual property rights of business partners or third parties.
2. Respect for human rights
Suppliers shall adhere to international human rights principles. In addition, where there are inconsistencies between internationally recognized human rights principles and relevant laws and regulations in each country/region, suppliers shall seek ways to fully respect international human rights principles. Suppliers shall take appropriate action in the event their business activities caused or encouraged a negative impact on human rights.
(a) Elimination of child labor
Suppliers shall eliminate and shall not engage in labor by children under the legal minimum working age.
(b) Elimination of forced labor
Suppliers shall not force any work which is against the employee’s own will or work that limits their freedom to leave.
(c) Prohibition of discrimination
Suppliers shall not engage in discrimination in terms of employment or in treatment on the basis of race, ethnicity, religion, sex, gender identity, sexual orientation, age, nationality, region of origin, social status, job type, employment status, language, disability or marital status etc.
(d) Prohibition of Harassment
Suppliers shall not tolerate corporal punishment, threats of violence, sexual, mental or verbal harassment.
3. Consideration for occupational health and safety, and respect for workers' rights
Suppliers shall maintain a fair and appropriate working environment that considers employees’ health and safety.
(a) Maintaining a healthy work environment
Suppliers shall comply with all laws and regulations and strive to maintain a safe and sanitary workplace.
(b) Ensuring fair working hours
Suppliers shall comply with all relevant laws and regulations, manage working hours and holidays appropriately, and strive to prevent overwork.
4. Consideration for the global environment
Suppliers shall work to reduce negative impact on environment and establish appropriate system to do so.
(a) Responding to Climate Change
In order to use resources sustainably, suppliers shall strive to improve the efficiency of use of raw materials and water, which are necessary resources for business activities, and to reduce greenhouse gas emissions.
(b)Promote development of environmentally friendly products
In order to reduce negative impact on environment, suppliers shall work with their business partners to develop and promote environmentally friendly products.
(c) Conservation of biodiversity
Suppliers shall conduct business with respect and consideration for biodiversity.
5. Fair Business Activities
Suppliers shall promote sustainable procurement activities in order to fulfill social responsibilities throughout the supply chain.
(a) Anti-corruption
Suppliers shall maintain fair relationships with their business partners, the government, and other business operators, and shall not accept or provide improper benefits, such as bribery or fraud.
(b) Dealing with anti-social forces
Suppliers shall not have any relationship with people who engage in illegal activities such as anti-social forces.
6. Understanding and cooperating with procurement policies
We ask all suppliers of ITOHAM YONEKYU Group to understand and cooperate with these guidelines.
Initiatives for Sustainable Procurement
We understand the importance of responsible procurement activities across the entire supply chain. Based on this recognition, we work with suppliers to build a sustainable supply chain in accordance with our Procurement Policy and Supplier Procurement Guidelines.
Supplier Survey
Since fiscal year 2022, we have been conducting a “Supplier Survey” targeting our top suppliers in terms of procurement amount (cumulative total of 80% of procurement amount), asking them to understand our group's procurement policy and the items in the Supplier Procurement Guidelines, namely “Compliance with Laws and International Standards and Establishment of Systems,” “Respect for Human Rights,” and “Consideration for Occupational Safety and Health and Respect for Workers' Rights.” “Consideration for the Global Environment,” “Fair Business Practices,” and “Animal Welfare.” We are conducting this survey to confirm the status of these initiatives.
In fiscal year 2023, we expanded the survey to include additional questions on human rights and animal welfare, targeting 163 companies. Additionally, we introduced a logic that adjusts the intensity of questions based on the level of risk and analyzes suppliers’ response.
In the 2024 fiscal year, we further added questions related to human rights, targeting 162 companies, and received responses from all suppliers. The response results showed no risks requiring follow-up investigations, and there was a more positive trend in responses related to human rights and the environment compared to the previous year. The percentage of companies that have disseminated information internally regarding consideration for occupational safety and health and respect for workers' rights, as well as the percentage of companies that have implemented improvements in the efficiency of raw materials, water, and energy use, were consistently high. However, some suppliers were found to have room for improvement in terms of formalizing policies related to human rights, the environment, and information management, so we will continue to monitor progress. We will also consider expanding the scope of the survey to further enhance its effectiveness.
Supplier Visits
We visit our suppliers to ask for their understanding and support of our group‘s sustainability initiatives, and to build even better relationships through dialogue and information sharing.In fiscal year 2023, we visited two suppliers, and in fiscal year 2024, we visited two more. We worked to improve supplier engagement by sharing our company‘s views on human rights and environmental issues, and by conducting interviews and exchanging opinions on the initiatives of the visited companies.
We will continue to conduct “supplier surveys” and visits in the future. Additionally, if any significant issues or risks are identified, we will work together with our suppliers to address them. We will prioritize communication with our suppliers and promote responsible procurement activities across the entire supply chain.
