SustainabilityBuilding Good Relationships with Suppliers

The Kurita Group Approach

In order for the Kurita Group to fulfill its social responsibilities, its suppliers who provide raw materials, supplies, and perform services also need to cooperate with the Group’s initiatives related to CSR.
The Group has newly formulated the Kurita Group Procurement Policy, as a common policy on procurement for the Group, as well as the Kurita Group CSR Procurement Guidelines to set out the Group’s expectations of suppliers, such as respecting basic human rights, preserving the earth’s environment, and complying with laws, regulations, and social norms.

Policy

  • To conduct transactions in consideration of basic human rights, occupational health and safety, and preservation of the global environment in compliance with laws and regulations as well as social norms;
  • To provide fair and equal business opportunities to the suppliers, to conduct transactions in reliable quality, at competitive and reasonable prices, based on appropriate specifications and standards;
  • To procure materials and services that enables continuous and stable supply of our products and services to customers, and contribute to the sustainable development of the society; and
  • To forbid entering into any transaction that would benefit antisocial forces or terrorist groups.

Promotion System (FY2023)

The Kurita Group is undertaking appropriate procurement activities in line with the Kurita Group Procurement Policy. As our system for promoting these activities, the Group Manager of the UX Group, Engineering Division is in charge of promoting procurement activities based on the policy. The policy is promoted at Group companies in Japan and overseas through the business management divisions of their respective supervising headquarters divisions.

Main Initiatives

Formulation of Procurement Operation Regulations

Based on the Kurita Group Procurement Policy the Company has formulated Procurement Operation Regulations. These set out the implementation of appropriate procurement activities that emphasize social responsibility as a regulation related to supplies, equipment, labor and services required in the Company’s business activities.

Education of procurement personnel

The Kurita Group considers that in order to promote CSR procurement, procurement personnel must also have knowledge of laws and regulations, and social issues and a high awareness of compliance with laws and regulations. The Company provides training and e-learning training on laws and human rights common to all employees, and education for new transferees to the procurement department.We are working to introduce and promote understanding of the Kurita Group Procurement Policy and the Kurita Group CSR Procurement Guidelines.

CSR Requirements for Suppliers

The Kurita Group considers it vital to obtain cooperation from suppliers to conduct business in accordance with its CSR Policy across the entire supply chain. To this end, we have established the Kurita Group CSR Procurement Guidelines, and have asked suppliers to understand and implement the Kurita Group’s policies regarding matters such as human rights, safety, and environmental improvement, and the response we require of them, and to provide appropriate information.
In addition, since fiscal 2022, we have been using the platform* of EcoVadis for the purpose of expanding evaluation items, enhancing the reliability of evaluation results, and reducing the burden on suppliers. As of March 2023, 123 suppliers in Japan and overseas (accounting for 28% of total order amount in fiscal 2021) were registered on the platform.
Toward raising the awareness of our business partners regarding CSR and improving the system and framework, we provide information on matters that require improvement obtained from the results of our self-assessments, such as the formulation of a BCP (Business Continuity Plan) and the establishment of an emergency contact system. It is sent through the e-mail medium “KPR report (Kurita Partner Relationship report)” and the annual social gathering. In fiscal 2023, we conducted on-site audits on foreign workers’ human rights issues at five suppliers, which were selected based on the results of the EcoVadis evaluation and on the history of our business with them.

  • * A platform for rating the sustainable procurement capabilities of suppliers from a CSR perspective. The content and number of questions are customized according to industry, company size, and country or region.

Supplier Questionnaire Survey

The Company requires its suppliers and those of Group companies in Japan to understand its compliance activities, such as observing the Subcontract Act and confidential information management, and confirms the appropriateness of transactions with such suppliers by carrying out surveys of transactions with the Kurita Group. These surveys target suppliers who fall under the category of subcontractors, as provided in the Subcontract Act, and are conducted once a year by the E&S Committee, which is in charge of compliance activities. In the event that status checks or improvements are deemed necessary after responses are confirmed, the E&S Committee instructs the relevant department to respond and conducts a follow-up check on the result of the response.

Status of survey implementation

  FY2021 FY2022 FY2023
Number of companies surveyed 1,286 1,562 1,454
Number of respondents 884 1,085 936
Response rate (%) 68.7 69.5 64.4

Public-Interest Whistle-Blowing and Helpline

The Company has created Public-Interest Whistle Blower Protection Rules and strives to quickly discover misconduct. In accordance with these rules, an advising and reporting liaison that makes use of an independent organization was established, and employees of the Company and its domestic Group companies, as well as dispatch staff and suppliers, can use the liaison. A “Supplier Helpline” was also launched so that suppliers can seek advice on issues such as concerns and worries they have about business with the Kurita Group.

Status of Use of Supplier Helpline

  FY2021 FY2022 FY2023
Number of cases 0 0 0

Status of Business Dealings

The status of business dealings with the Company’s suppliers is as follows.

  FY2021 FY2022 FY2023
Number of suppliers 1,806 1,729 2,229
Transaction amount (Millions of yen) 70,198 81,632 78,985
Japan (%) 90.8 92.4 93.7
Overseas (%) 9.2 7.8 6.3

Communication with Suppliers

The Company provides opportunities for communication with suppliers and strives to strengthen its partnerships with them. The main initiatives conducted in fiscal 2023 were as follows.

Name Purpose / Details Number of participating companies
Safety events Safety lectures, and explanation of revised safety rules 202
Conflict minerals assessment Confirming whether conflict minerals are used in Kurita products delivered to electronic component manufacturers 1
Individual supplier interviews Encouraging registration on EcoVadis platform, giving feedback on evaluation results 64