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 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 2025 Plan for 2026
  • The supply chain functions efficiently, stably, and appropriately through globally controlled management frameworks and systems
  • Practicing sustainable procurement in the form of responsible procurement activities based on a fair and open framework while holding high ethical standards
Toward the vision for 2030
  • Establishment of a global governance framework and management system
  • Sophistication of procurement and supply chain management methods and systems based on DX
Recent issues and problem awareness
  • Raising the level of fairness and transparency in procurement operations by fostering compliance awareness throughout the Group
  • Enhancement of communication with suppliers to step up collaboration
  • Established standards of conduct for suppliers with CSR issues and implemented improvement actions
  • Established a procurement audit framework covering Group companies in Japan and overseas and began its operation
  • Communicate and establish the foundation for advancing procurement activities linked to CSR questionnaires and CSR visits
  • Plan, conduct, and follow up on procurement audits covering Group companies in Japan and overseas

KPI Targets and Results

Resonac positions sustainability at the core of its company-wide strategy and has identified material issues for sustainability. To achieve each material issue, we have established the following KPIs in the procurement field and aim to realize our Long-Term Vision.

Material item 2025 target 2025 result 2026 target
Improvement of the quality of communication with suppliers
  • Maintain a response rate of at least 90% for CSR questionnaires
  • Increase the percentage of suppliers scoring at or above the threshold to at least 85% (2028 target: at least 90%)
  • CSR questionnaire response rate: 93% (2024: 93%)
  • Percentage of suppliers scoring at or above the threshold: 90% (2024: 91%)
  • Maintain a response rate of at least 90% for CSR questionnaires
  • Increase the percentage of suppliers scoring at or above the threshold to at least 85% (2028 target: at least 90%)
  • Sustainable procurement ratio: 70% (59% in 2025)
    * Sustainable procurement ratio = percentage of major suppliers from which consent forms for the Sustainable Procurement Guidelines have been received

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 Proper Transactions 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 2025, a total of  2,820 Group employees participated in procurement-related training.