Supply Chain Management
To remain a company that is trusted and chosen by all stakeholders, including its customers and suppliers, the Group also fulfills its corporate social responsibility (CSR) in its procurement activities. We will also share the Procurement Basic Policy with our suppliers and work on responsible procurement activities and continuous improvement in accordance with the Hirata CSR Procurement Guidelines.
Procurement Basic Policy
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In compliance with laws and ethics
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In a fair and just manner as an equal partner with our suppliers
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That give due consideration to human rights concerns and the reduction of environmental impact in the selection of suppliers and procured items
CSR Procurement Initiatives
In addition to conventional items, such as quality, performance, price and delivery, when procuring products, materials, and raw materials, the Company adds requirements from the viewpoints of the status of the supplier’s response to the environment, labor environment, human rights and other matters. In this way, we are working to improve while promoting CSR throughout the supply chain.
We conducted a CSR procurement questionnaire targeting the suppliers in the top 70% in terms of transaction value (top 100 companies in domestic transaction value; response rate: 100%).
We also obtained confirmation from 98 companies that they were in agreement with our CSR Procurement Guidelines.
The results of the questionnaire revealed that the average score for the Business Continuity Plan (BCP), which is regarded as an important item in the supply chain, was 2.9 points, which was lower than the other items. We also recognized understanding the calculation of Scope 3 as an issue for the future in reducing GHG emissions into the environment.
First of all, we would like to ascertain the current situation and work together with our suppliers to improve the level. We have set a goal of reducing to zero the number of suppliers with evaluation points of 2.5 points or less out of a maximum of 4.0 by 2024.
When promoting CSR procurement questionnaires in the years to come, we will conduct regular evaluations of the top 80% of domestic suppliers in terms of transaction value.
Business Continuity Plans
As a result of conducting a self-assessment of BCPs in the supplier CSR procurement questionnaire, their implementation status was found to be an issue. Going forward, we will promote improvements designed to raise the level of implementation.
In recent years, when serious natural disasters such as earthquakes and floods have been occurring frequently, we have been promptly confirming the damage situation with our suppliers to minimize the impact on our production activities.
Establishment of supplier whistleblowing contact point (supplier helpline)
In response to the Revised Whistleblower Protection Act and in accordance with the strengthening of governance, the Company set up a supplier helpline on April 1, 2022, and posted the point of contact on its website. Based on the information provided, the helpline secretariat (the Company’s Compliance Department) will conduct an internal investigation and take corrective and preventive measures. Strictly protecting the confidentiality of reports, the Company will not take any retaliatory action with regard to them.
| Reporting method | We have set up a dedicated point of contact on our external website Establishment of supplier whistleblowing contact point：https://www.hirata.co.jp/en/contact/ |
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| Those subject to reporting | Suppliers (purchasers of goods, software, utilities, equipment, etc. necessary for our production activities) |
| Post-report handling | Promptly conducting a factual investigation of the reported case, necessary measures, such as an order to cease and desist or recurrence prevention, to be taken if non-compliance proven |
Contact Window Information
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Response to Conflict Minerals*
With regard to conflict minerals, which are illegally exploited and mined and are a factor causing human rights violations as well as labor and other problems, the Company is aware of and actively cooperates with international efforts to investigate and monitor their use. In response to inquiries from customers relating to conflict minerals, we provide any information that we know in good faith.
* Conflict minerals: The term refers to minerals, among them tantalum (Ta), tungsten (W), tin (Sn), gold (Au) and cobalt, produced in the Democratic Republic of the Congo and neighboring countries, which are regarded as a source of funding for armed groups that are committing serious human rights violations.