Evaluation of Suppliers
Activities in 2022
CSR questionnaire surveys
Each year we ask about 400 business suppliers to fill out the CSR questionnaire surveys regarding the Resonac Group Sustainable Procurement Guidelines and thereby self-check their CSR activities. We ask major business suppliers to do it once every three years and all new suppliers to do it when starting business with us. In 2022, the total response rate came to 92%.
This self-assessment is positioned as an important communication tool for building close and fair cooperative relationships with suppliers, and is utilized for appropriate risk management such as identifying risks and planning countermeasures in the course of pursuing our business by ascertaining the progress made in initiatives taken by suppliers.
Responses for the following nine areas are scored in this self-assessment and suppliers with low scores in particular areas are asked to make improvements. We conduct separate discussions with suppliers who score less than 50 points in total and propose improvements to raise the level of our suppliers as a whole.
Results of CSR questionnaire surveys made in 2022
(average score by item)
CSR visits
Since we launched this initiative in 2010, we have visited a total of 600 suppliers. We engage in dialogue with the suppliers to check their CSR activities and introduce them to some examples of our excellent CSR activities. In 2022, we visited 47 suppliers and found no serious cases of human rights infringement or noncompliance for these companies.
If a noncompliance is detected concerning a supplier, we will discuss with the supplier and implement necessary measures for early improvement. We will also review our business relations with suppliers who we think do have a serious negative impact on our business continuity. According to the level of negative impact that might be caused by a supplier, we will stop requesting quotes from and placing orders with the supplier for a certain period, reduce the trade volume, or cancel the sales contracts concluded with the supplier. We will decide whether to resume transactions with the supplier or not after our Procurement personnel check how the supplier has made improvements by interviewing the supplier and confirm that our concerns about the negative impact have been mitigated or eliminated.
Follow up
We scored the CSR measures taken by the suppliers who conducted CSR self-assessments and those to whom we made CSR visits. We clearly indicated to each their CSR level against the total average and industry average. We also sent feedback reports to all the suppliers who performed CSR self-assessments to give them advice for improvements.
Total average score for the 2022 CSR questionnaire surveys and measures taken for improvements
Number of suppliers respondent: 339 companies, average score 63.0 points
(Sent a feedback report (including a comparison with the total average score and industry average score, and requests for improvements) to each of the respondent companies)
| Number of cases | Rate | Measures for improvements | |
|---|---|---|---|
| 50 and higher | 273 | 81% | Requested improvements for the items for which problems were identified while working to further increase the scores for the items with high scores. |
| From 30 to below 50 | 52 | 15% | Requested improvements for the items for which problems were identified and proposed improvement measures. *Made visits as required to exchange views about each other’s measures. Will check the status of improvements in the next round of self-assessments. |
| Below 30 | 14 | 4% | Requested improvements for the items for which problems were identified and proposed improvement measures. *Made visits as required to discuss measures for early improvements. Will check the status of improvements in the next round of self-assessments. |
