Basic Stance

Tokuyama has established the Basic Procurement Policy and the CSR Procurement Guidelines covering areas such as legal compliance, environmental protection, and respect for human rights. We implement Sustainable procurement efforts throughout the supply chain. We also ensure that our business partners understand the "Basic Procurement Policy" and the "Sustainable Procurement Guidelines."

• Tokuyama Group Sustainable Procurement Guidebook

Systems・Person in charge

The Complience Committee (Chair: Director responsible for Sustainability) discusses Group-wide Sustainable procurement.
Tokuyama formulates and implements plans related to procurement based on the Basic Procurement Policy and the Sustainable 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.

Sustainable procurement initiatives

Evaluation of Suppliers

We have requested suppliers with transaction values of 30 million yen or more (representing over 90% of the procurement of raw materials, fuel, packaging containers, materials, and construction) to submit written commitments to comply with our guidelines, and obtained commitments from 341 of 354 suppliers.
We have also asked suppliers with transaction values of 100 million yen or more (representing about 90% of the procurement of raw materials, fuel, packaging containers, materials, and construction) to conduct self-assessments using SAQs published by GCNJ, and received responses from 173 of 181 suppliers.
In FY2024, based on these evaluations, we conducted engagements with four suppliers considered to have higher risk and confirmed the situation through on-site visits. Going forward, we will work toward implementing SAQs that contribute to appropriate evaluation and improved quality of engagement, for example by revising question text and enhancing explanations.

Initiatives for Responsible Procurement of Minerals

Our Sustainable 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.