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
Leading the Tokuyama Group, Tokuyama shares the CSR Procurement Guidelines with suppliers and asks them to understand the policies and activities related to CSR procurement and to comply with the guidelines.
In the second Supplier Survey in fiscal 2022, which followed the first Supplier Survey in fiscal 2019, we asked for responses from 182 suppliers companies with single transaction amounts of 100 million yen or more (representing 87% of the Group's procurement of raw materials, fuel, packaging and containers, materials, and construction), and received responses from 94% of the suppliers as of November 2023.
For suppliers whose activities are considered to be lacking according to their SAQ responses, we are promoting requests to improve their CSR-rerated activities through dialogue.
We will continue to conduct regular Supplier Survey by SAQ basis to check the status of supplier's CSR-rerated activities then to request and support improvements of their CSR-rerated activities.
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.