Supply Chain Management
Policy on Procurement
The Toyo Ink Group has been developing its business globally, with about 70 companies in over 20 countries around the world. This global expansion has made the Group’s supply chains more complex. Companies has required to fulfill their social responsibilities covering their supply chains. The Toyo Ink Group therefore focuses on initiatives in consideration of human rights, labor, the environment, and other factors by including our supply chains in the scope of our social responsibilities.
To follow the rules, we have established the Rules for the Purchasing of Raw Materials and promote CSR procurement, which conforms to the Procurement Principles and the Standard for Selecting Suppliers. “Observance of laws and international norms” and “CSR management” that are set out in these principles and criteria involve compliance with local laws, including the prohibiting discrimination, freedom of association, the right to collective bargaining, minimum wage guarantee, compliance with working hours prescribed by laws and regulations, the occupational safety and health of employees, and providing an appropriate working environment.
Updating of Procurement Principles and Formulation of Guidelines
In October 2022, we updated our Procurement Principles and Standard for Selecting Suppliers in response to the increasing social demand for corporate procurement activities. The updated Procurement Principles expressly state the Toyo Ink Group’s fundamental stance in respect of suppliers, namely that they are not merely “suppliers of raw materials located upstream in its supply chain,” but rather “essential partners in the same supply chain who support the supply chain together with us.”
To supplement the Procurement Principles, we have also established a detailed CSR Code of Conduct called the “Toyo Ink Group Sustainable Supply Chain Guidelines” that both the Toyo Ink Group and its suppliers should comply with.
Contents of Sustainable Supply Chain Guidelines
| 1. Respecting the Laws and Internationally Recognized Standards | |
|---|---|
| 2. Human Rights and Labor | Prohibiting Forced Labor and Freely Chosen Employment / Prohibiting Child Labor and Respecting the Rights of Young Workers / Working Hours Management / Adequate Wages and Allowances / Prohibiting Inhumane Treatment / Prohibiting Discrimination / Freedom of Association and Right to Collective Bargaining |
| 3. Health and Safety | Occupational Safety / Emergency Preparedness / Occupational Injury and Illness / Industrial Hygiene / Physically Demanding Work / Machine Safeguarding / Health and Safety at Facilities / Health and Safety Communication / Worker Health Management |
| 4. Environment | Environmental Permits and Reports / Effective Utilization of Resources / Chemical Substance Management / Solid Waste / Air Emissions / Managing the Chemical Substances Contained in Products / Water Management / Reducing Energy Consumption and Greenhouse Gas Emissions / Conserving Biodiversity |
| 5. Ethics | Preventing Corruption / Prohibiting Inappropriate Provision and Improper Benefit / Prohibiting Involvement with Antisocial Forces / Information Disclosure / Respecting Intellectual Property Rights / Fair Business Activities / Prohibiting Abuse of Superior Bargaining Position / Establishing a Whistleblowing System and Protecting Whistleblowers / Responsible Minerals Procurement / Prohibiting Infringement of rights of local residents |
| 6. Quality and Safety | Ensuring Product Safety / Quality Management / Providing Accurate Information on Products and Services / Responding to Quality and Safety Problems |
| 7. Information Security | Defense from Cyber Attacks / Protecting Personal Information / Preventing Leak of Confidential Information |
| 8. Business Continuity Planning | |
| 9. Coexistence with Local Communities | |
| 10. Management System | Establishing a Management System / Supplier Management / Proper Import / Export Control |
Promotion of CSR procurement
Through CSR procurement, we aim to contribute to ensuring legal compliance in the supply chain and improving both the working environment and the global environment. To do this, we have implemented measures to 1) make the Procurement Principles well-known, 2) conduct examinations and audits for our suppliers, and 3) deepen employee understanding about CSR procurement. In addition, we are promoting activities to disseminate the Procurement Principles to overseas sites.
We also confirm our efforts to respect human rights in procurement activities, and respond to surveys conducted using third-party platforms, such as EcoVadis and other CSR questionnaire, thereby promoting the development of a supply chain management system together with our customers.
Dealing with new suppliers
We evaluate potential suppliers based on the Standard for Selecting Suppliers and do not deal with any suppliers that do not meet a certain standard. We start to deal with suppliers that meet a certain standard on the assumption that they accept the Procurement Principles of the Toyo Ink Group. We reassess suppliers every five years to reduce procurement risk.
Measures against conflict minerals and cobalt procurement
The Toyo Ink Group is taking action to avoid the use of minerals (gold, tin, tantalum, and tungsten) that can lead to conflict. Minerals such as these are produced in the Democratic Republic of the Congo and neighboring countries, and serve as sources of funding for local armed groups.
We have checked whether each raw material that we have procured directly or indirectly included any conflict minerals or not and have taken appropriate steps when we found any use of conflict minerals. We will continue to investigate and check newly adopted raw materials, and also strengthen our measures to prevent the use of minerals from regions of conflict. We will also continue investigations and confirmations to ensure responsible cobalt procurement.
Participation in the White Logistics Movement
Toyo Ink SC Holdings Co., Ltd. announced its voluntary action declaration in support for the White Logistics Movement launched by the Ministry of Land, Infrastructure, Transport and Tourism, the Ministry of Economy, Trade and Industry, and the Ministry of Agriculture, Forestry and Fisheries. In collaboration with raw material suppliers, business partners and logistical operators, we will push ahead with efficient logistical operations based on proper freight transport contracts and joint logistics to establish sustainable logistical operations.