Sustainable Procurement - Evaluation of Suppliers
Activities in 2021
Self-assessments
Each year we ask about 400 business suppliers to fill out the self-assessment questionnaires regarding the Resonac Group’s CSR 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 2021, the total response rate came to 92%.
Results of CSR self-assessments made in 2021
(average score by item)
CSR visits
Since we launched this initiative in 2010, we have visited a total of 504 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 2020, we visited 41 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.
Number of CSR visits
(Former Showa Denko (non-consolidated))
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 2021 CSR self-assessments and measures taken for improvements
Number of suppliers respondent: 327 companies, average score 65.4 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 | 239 | 73% | 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 | 78 | 24% | 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 | 10 | 3% | 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. |
