Supplier Management

Sustainable Procurement Policy

Based on our Corporate Motto, “Our motto is to contribute to society through our business activities,” we, as a group of professionals in machinery and technology, will continue to innovate and evolve in order to provide value to society. In line with the policy set out below, we will proactively work toward the realization of a sustainable society alongside all of our stakeholders across the value chain as a whole to find solutions for environmental issues and other issues faced by society.

1. Compliance with the law, and fair and equitable transactions

   In commercial transactions, we shall comply with the laws and regulations of the relevant country or territory and act with a high ethical standard to achieve fair and equitable competition, the elimination of antisocial forces, and the prevention of corrupt practices.

2. Maintenance of confidentiality and information management

   We shall appropriately store personal information and confidential sales and technology information obtained in the course of commercial transactions and prevent leaks to third parties while taking all other steps necessary to ensure proper management of information security.

3. Ensuring quality and safety

   We conduct procurement activities that take into account reasonable delivery timelines and competitive pricing, while ensuring that the products and services meet the quality and safety standards required by the Group.

4. Consideration for human rights and occupational health and safety

   Along with our business partners, we will undertake procurement activities that respect human rights and take into account occupational health and safety.

5. Environmental conservation

   We undertake environmentally conscious procurement practices that address climate change, and support the recycling, regeneration, and efficient use of resources and energy, as well as the prevention of environmental pollution.

6. Crisis management

   To ensure the stable provision of products and services, we shall establish an organizational crisis management system to respond to events such as natural disasters and the spread of infectious diseases.

Supplier Engagement

Under the concept of fulfilling our corporate social responsibility by maintaining social fairness in our dealings and actively endeavoring to meet the demands of society, including the demand for environmental protection, the Group places emphasis on supplier engagement. Our business is built on relationships with a wide range of stakeholders, and in order to continue our operations while maintaining their trust, we believe that open, bilateral communication with suppliers will become increasingly essential. In fiscal 2024, we implemented the following measures on the 143 main suppliers with whom we have a business connection.

• Education on and confirmation of endorsement of our sustainable procurement policy and human rights policy (endorsement rate of 67%)
• Sustainability questionnaire (response rate of 70%)

As well as ensuring our suppliers know about the Group’s sustainable procurement initiatives, we also regularly implement a questionnaire survey regarding ESG matters (human rights, the environment, health and safety, BCP, compliance, supplier management) to minimize risks to the Group and suppliers and bring sustainable growth.