Sustainable Procurement

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.

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.

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.

4. Consideration for the global environment

Suppliers shall work to reduce negative impact on environment and establish appropriate system to do so.

5. Fair Business Activities

Suppliers shall promote sustainable procurement activities in order to fulfill social responsibilities throughout the supply chain.

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

Beginning in FY2022, we ask our top suppliers (80% of our total procurement value) to understand our Group Procurement Policy and matters under the Supplier Procurement Guidelines: Compliance and systems related to laws, regulations, and international norms, respect for human rights, consideration for occupational health and safety and respect for worker rights, consideration for the global environment, fair business practices, and animal welfare. We also conduct a supplier survey in which we ask suppliers to answer a self-check questionnaire to confirm the status of their efforts.

In FY2023, we added questions on human rights and animal welfare. We also weighted the questions according to risk and analyzed the results using new logic.
We sent the FY2023 supplier survey to 163 top suppliers (80% of total procurement value), and 98% of suppliers responded.
The results of the responses did not identify any level of risk requiring follow-up.
The results indicated a high percentage of internal awareness of occupational health and safety considerations and respect for worker rights, as well as improvements in the efficiency of raw materials, water, energy, and other usage.
At the same time, we identified certain suppliers that have room for improvement in establishing policy on human rights, environmental, and information management. We will continue to monitor the progress of these suppliers.

Supplier Visits

We visit suppliers to ask for their understanding and support of Group sustainability initiatives and to share their initiatives with us. These dialogues help strengthen our relationships with suppliers.

In FY2023, we visited two suppliers.
We endeavored to improve supplier engagement by sharing our company's approach to human rights and environmental issues and by listening to and exchanging opinions on the initiatives of the suppliers we visited.
We will continue to conduct supplier surveys and visit suppliers.
If we discover any significant issues or risks, we will work together with the supplier in question toward a resolution.
We value communication with our suppliers and pursue responsible procurement activities throughout the supply chain.