Sustainable procurement - Management system

Basic ideas and policies

We are currently facing a range of social issues, including environmental problems such as the depletion of resources and energy issues as well as problems related to human rights, corporate ethics and compliance.

Through its business activities and the provision of products and services, the Resonac Group has been striving to contribute to the solution of these social problems and to the creation of a global sustainable society.

In recent years, a number of arrangements have been made for the international community to deal with global issues under the framework of the United Nations, including the adoption in June 2011 of the Guiding Principles on Business and Human Rights (dubbed the “Ruggie Principles”) and the adoption in September 2015 of the Sustainable Development Goals. Accordingly, across the globe, companies are strongly expected to play proactive roles to ensure adherence to these agreements and contribute to the solution of the issues. This trend will become more conspicuous going forward.

However, the Resonac Group cannot fulfill its role for sustainable development on its own and absolutely needs the understanding and cooperation of all its stakeholders.

Based on this recognition, we established the Resonac Group’s Sustainable Procurement Guidelines, which we share with our business suppliers so that we can contribute to the creation of a sustainable society.

Promotion system

The Resonac Group is fostering sustainable procurement under the leadership of the director in charge of procurement, with the Procurement & SCM Department supervising procurement operations.

The Resonac Group requests all suppliers to comply with the Sustainable Procurement Guidelines. Specifically, we ask all new suppliers to fill out the related CSR self-assessment questionnaire before starting business with us and also ask major existing suppliers to do so every three years, thereby raising suppliers’ awareness about sustainable procurement. We also visit around 40 suppliers each year to check their activities from the perspectives of the environment, human rights and compliance.
We score the measures taken by the suppliers who conducted CSR self-assessments and those to whom we made CSR visits, and send feedback reports to each of the former. In the reports we clearly indicate their CSR level against the total average and industry average and give them advice for improvements. We conduct this in a cycle of three years as a means to evaluate the supplier-related risks for all the products and services that we purchase from them. For details, please refer to “ Promotion of sustainable procurement.”

Training of Procurement personnel

For sustainable procurement, we deem it important to increase the awareness and improve the skills of our staff in charge of Procurement. Accordingly, we provide them with a range of training and study opportunities. For the educational activities, we provide learning on various themes, including the concept of compliance; laws such as those related to antimonopoly, subcontractors, customs and foreign exchange; the civil code and other regulations; and also our internal Procurement procedures and rules on approval authority. We thus help the Procurement personnel at our plants and divisions to improve their performance. In 2021, a total of 1,236 Group employees received training on Procurement.