CSR Procurement

Policy

The Asahi Kasei Group Procurement Principles
The Asahi Kasei Group Procurement Principles

The Asahi Kasei Group considers suppliers to be important partners in the pursuit of our Group Philosophy, and works to treat them with sincerity.
Our Mission and Vision for procurement are an expression of our ideals to apply in daily activities as we work to uphold our Procurement Policy and promote procurement practices with an emphasis on CSR.
Accordingly, we consider suppliers from environmental aspects including energy use, climate change, biodiversity, pollution, waste, and resource use, and social aspects including discrimination, equal opportunity, freedom of association, and compliance with local laws concerning working hours and wages.
A relationship of mutual trust with our suppliers is fostered through fair and transparent purchasing practices based on regulatory compliance and respect for the environment and human rights.

Management framework

Corporate Procurement & Logistics is responsible for the Asahi Kasei Group Purchasing and Procurement Policy.

Evaluation of CSR at suppliers

We conduct supplier surveys as part of our CSR procurement from two perspectives, which are evaluation at the commencement of new transactions and ongoing evaluation of suppliers.
Before commencing transactions with a new company, we conduct an evaluation which includes CSR through preliminary screening based on our Purchasing and Procurement Policy.
We also conduct a CSR survey of continuing suppliers every year so that they engage in business activities with an awareness of CSR and strive to foster awareness of CSR in transactions.
In 2018, we further enhanced the content of the survey questions and asked 185 major suppliers (including distributors and agents) to participate in the CSR survey, all of whom responded. We provided suppliers with feedback on their scores for each category of questions and requests for improvements.

Question categories

  1. 1. Corporate governance related to CSR
  2. 2. Ethics and compliance
  3. 3. Information security
  4. 4. Intellectual property rights
  5. 5. Human rights and labor
  6. 6. Workplace safety and hygiene
  7. 7. Product safety and quality assurance
  8. 8. Security (export control)
  9. 9. Environmental conservation
  10. 10. Timely and appropriate provision of information and communication to stakeholders
  11. 11. Harmony with the local community
  12. 12. Supply chain

FY 2018 CSR Procurement Questionnaire Results

In FY 2018, we asked 181 of our major equipment material and construction customers to take a questionnaire and received responses from all of them. We added and expanded the number of existing questions (8⇒12 items, 52⇒85 questions), and particularly increased social questions in order to monitor the ESG management status at each company in the future. By item, "Security (export control)" and "Human rights and labor" scores were high, while scores for "Information disclosure to stakeholders" and "Coexistence with the local community" were relatively low.

A Rank 60 33% B Rank 55 31% C Rank 35 19% D Rank 31 17%
FY 2018 CSR Procurement Questionnaire (Comprehensive Evaluation)
1. Corporate governance 6.4  2. Ethics and compliance 7.4  3. Information security 7.6  4. Intellectual property rights 5.4  5. Human rights and labor 7.9  6. Workplace safety and hygiene 7.4  7. Product safety and quality assurance 7.6  8. Security (export control) 8.7  9. Environmental preservation  5.2  10. Information disclosure and communication to stakeholders 4.3  11. Harmony with the local community 3.9  12. Supply chain 6.3
Average scores by item

We will meet directly with customers ranked C and D before the next questionnaire is conducted, and deepen their understanding of improvement activities as necessary.

Communication with stakeholders

Safety seminars are periodically held at our principal production sites to discuss accident prevention and exchange information with suppliers.
The Asahi Kasei Group compliance hotline also accepts reports and inquiries from suppliers.

Response to conflict minerals

It is a global trend that more and more countries are banning the procurement of minerals from inhumane armed groups, particularly in the Democratic Republic of the Congo and neighboring countries. In the US, this is required by the Dodd-Frank Act of 2010.
Asahi Kasei considers conflict minerals to be a serious issue, and our policy is to ensure transparency in our supply chains and to procure minerals responsibly. We do not obtain, procure, or utilize minerals from armed groups, and avoid supporting conflict and inhumane activities.