Basic Stance

Tokuyama has established the Basic Purchasing Policy and the CSR Procurement Guidelines covering areas such as legal compliance, environmental protection, and respect for human rights. We implement CSR procurement efforts throughout the supply chain. We also inform new suppliers that the Basic Purchasing Policy and the CSR Procurement Guidelines are available on the Tokuyama website.

Systems・Person in charge

The Sustainability Committee (Chair: Director responsible for CSR) discusses Group-wide CSR procurement.
Tokuyama formulates and implements plans related to procurement based on the Basic Purchasing Policy and the CSR Procurement Guidelines.
Procurement activities are implemented in collaboration with sites and relevant departments in line with the formulated plans. The Purchasing Group and the units that implement departmental purchasing carry out CSR surveys (self-assessment questionnaires) and audits of suppliers to periodically verify the status of suppliers.

CSR procurement initiatives

Evaluation of Suppliers

We heve requested suppliers with transaction value of 30 million yen or more (representing over 90% of the procurement of raw materials, fuel, packaging and containers, materials, and construction) to submit written pledges of compliance with CSR procurement guidelines, and obtained pledges from 310 of 323 suppliers. Also we have Asked suppliers with transaction value of 100 million yen or more (representing about 90% of the procurement of raw materials, fuel, packaging and containers, materials, and construction) to conduct self-assessments using SAQs published by GCNJ and obtained responses from 173 of 181 suppliers.
In FY2023 We conducted engagements with four suppliers whose self-assessments were not favorable, and confirmed that the risk was not high because many of the responses were in fact erroneous due to a lack of understanding of the questions. And we also deepened our knowledge through dialogue with one business partner that employs foreign technical interns and is a leader in their management.
We will work toward implementing SAQs that contribute to appropriate evaluation and quality of engagement, for example revising the SAQs question text or enhancing the explanations.

Initiatives for Responsible Procurement of Minerals

Our CSR Procurement Guidelines stipulate the responsible procurement of minerals. Tokuyama responds promptly and appropriately to requests for investigations into minerals with clear involvement in conflict or human rights violations in conflict-affected and high-risk areas and confirms with suppliers that there is no involvement with such minerals.
When an issue is determined as a result of confirmation with suppliers, Tokuyama takes the appropriate measures, including requesting improvement or discontinuing procurement.

ESG information platform ＆ Verification

Participation in ESG Information Sharing Platforms and Acquisition of Supply Chain Certification

Tokuyama participates in platforms (Sedex and EcoVadis) that aim to improve the environmental and social practices of companies in supply chains by promoting information sharing among them. In addition, the Company has acquired Green Gold Label (GGL) certification for the palm kernel shells (PKS) it uses.
Tokuyama procures tantalum from a list of smelters that have obtained RMI certification.