Sustainable Procurement - Management System
Mission
In order to realize a sustainable society with consideration for the environment and society, we will build long-term relationships of trust with our suppliers and conduct fair, impartial, and stable procurement activities in a responsible manner.
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, we have been striving to contribute to the solution of these social problems and to the creation of a global sustainable society.
We conduct business activities in a range of fields and as such have an extensive supply chain. In addition to making our own efforts, we therefore need to gain the understanding and cooperation of suppliers and other stakeholders for the implementation of the aforementioned initiatives.
Based on this recognition, we established the Resonac Group Sustainable Procurement Guidelines, which we share with our suppliers. By helping them to comply with the guidelines as a precondition for co-creation, we will increase corporate value on both sides while also contributing to the creation of a sustainable society.
Promotion system
Our sustainable procurement measures are managed and promoted by the Supplu Chain Management (SCM) Division under the supervision of the Chief Manufacturing and Engineering Officer (CMEO) / Chief Quality Officer (CQO) with a focus on the following three items.
- Corporate social responsibility (CSR): Better fulfill our social responsibilities in all our business activities from development/manufacturing to final consumption
- Fair procurement activities: Select optimal suppliers and conduct fair procurement after comprehensively considering not only quality, safety, and economy, but also CSR
- Partnerships: Build equitable collaborative relationships with suppliers based on mutual understanding and trust
To make these activities more robust, we have established a dedicated team within our SCM Division to conduct internal monitoring of procurement, subcontracting, and legal/regulatory compliance, provide compliance-related education in-house, and conduct CSR surveys and provide feedback to suppliers, thereby playing a leading role in sustainable procurement.
Co-creation with suppliers
Our company's SCM headquarters and the procurement departments of each Business Unit (BU) are examining and implementing effective measures from the following viewpoint.
- Ensure penetration of the Sustainable Procurement Guidelines by distributing them to suppliers and obtaining from the suppliers written confirmation that they have received them
We require all suppliers to comply with our Sustainable Procurement Guidelines and, upon being provided with copies of these Guidelines, suppliers are asked to submit written confirmation of their agreement with the Guidelines’ provisions.
- Build a foundation for high-quality communication by CSR questionnaire surveys and CSR visits, and help strengthen the businesses of both Resonac and its suppliers through open exchanges of opinions with suppliers
We ask new suppliers to fill out a CSR questionnaire when they start doing business with us and major existing suppliers to fill out a CSR questionnaire once every three years in order to raise awareness. We also conduct "CSR visits" to about 40 suppliers each year to communicate with them about their efforts with regard to the environment, human rights, compliance, and other issues.
For further details, please refer to Promotion of Sustainable Procurement.
Strategy for Realizing the Long-Term Vision
Roadmap for 2030
| Vision for the future (2030) | Issues to Be Addressed | Results in 2024 | Plan for 2025 |
|---|---|---|---|
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Issues to Be Addressed (long term)
Recent issues and problem awareness
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Enhanced communication with suppliers through CSR questionnaire surveys
Implementation of Procurement Audits at Group Companies (Domestic and Greater China Region) |
Establishment of action standards for suppliers with CSR issues and implementation of
improvement actions Establishment and operational launch of a group-wide domestic and international audit system for procurement operations
|
Non-financial KPI Results and Targets
Resonac regards sustainability as the basis for its companywide strategies and has set three material issues for sustainability. Accordingly, for sustainable procurement, we will work on the non-financial KPIs and measures that were set to “Gain credibility through responsible business management” toward the achievement of our long-term vision.
| KPIs on material issues | 2025 targets | Results in 2024 |
|---|---|---|
| Improvement of quality of communication with suppliers |
|
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Training of Procurement personnel
In practicing sustainable procurement, we believe it is important to improve the skills of those in charge of procurement through continuous education and awareness-raising activities and to encourage a sense of professionalism, and we conduct educational activities through various training and study sessions.
The wide range of topics covered include the concept of compliance, laws and regulations such as the Anti-Monopoly Act, the Subcontract Act, the Customs Act, the Foreign Exchange and Foreign Trade Act, and the Civil Code, as well as internal regulations such as procurement procedures and approval authority, with the aim being to improve the knowledge of procurement personnel at business units and plants. In 2024, a total of 2,743 Group employees participated in procurement-related training.