Supply chain management

KITZ places sustainability management at the core of its management strategy. In order to realize a sustainable society, we are working to resolve social issues through our business and strive to improve both our corporate value and social value. At the same time, we aim to become a company that is trusted by society by realizing efficient, fair and transparent corporate management. As part of these efforts, in 2021 we signed the United Nations Global Compact, which consists of 10 principles on human rights, labor, the environment, and anti-corruption advocated by the United Nations. In addition, we conduct procurement activities based on our procurement policy. We have established Supplier Guidelines that we expect our suppliers to comply with and Standards on Green Procurement that summarize the concept of procurement activities reflecting consideration for the global environment.

Policy on Procurement

The KITZ Group contributes to enriching people’s lives by delivering improved products, technologies, and services to people around the world. To realize this goal, we implement procurement activities based on the following policies.

1. In our relationships with suppliers, we aim for joint growth and progress, as well as building relations of mutual trust, through fair and equitable transactions as equal business partners based on principles of coexistence and co-prosperity.

2. Based on a high sense of ethics and social consciousness, we comply with the laws, regulations, and social norms of each country, fulfilling our social responsibilities in areas that include respect for human rights, ensuring occupational health and safety, environmental protection, and information management and protection.

3. We deploy procurement activities with consideration not only for stable and appropriate quality, prices, and delivery times but also for reducing the environmental impact.

Supplier Guidelines

The KITZ Group hopes to contribute to the realization of a sustainable society through procurement activities based on above mentioned procurement policy. However, it is difficult to realize it on our own. It is essential that our suppliers, business partners, to understand our principles/values and work together as a member of the supply chain.

Based on this principles, we has established the requirements that we expect suppliers to comply with as Supplier Guidelines. We hope our suppliers to understand the contents of these guidelines and make efforts to comply with and respect them.

Supplier Guidelines (PDF 952KB)

Green Procurement

The KITZ Group has established the following Standards on Green Procurement based on the KITZ Group Principle of Environmental Activities. We aim to help realize a sustainable society by cooperating with our suppliers in procurement activities reflecting consideration for the environment based on these Standards on Green Procurement.

KITZ Group Principle of Environmental Activities

KITZ Group companies aspire to become operations worthy of society’s confidence through the supply of environmentally friendly products and services and promotion of environment-responsive corporate activities.

Standards on Green Procurement

1. Basic concept

The KITZ Group proactively uses and purchases raw materials, other materials and supplies, parts, products, equipment, and services with low environmental impacts, and we prioritize purchasing from suppliers that make proactive efforts in such areas as consideration for the environment. We also promote green procurement through striving to choose raw materials and other supplies with consideration for environmental impact starting from the planning, development, and design stages of our products.

2. Matters considered priorities in procurement activities
<Priorities in selection and purchase of raw materials, other materials and supplies, parts, products, equipment, and services>

(1) Conformity to environmental laws and regulations
(2) Exclusion of harmful chemical substances, or reducing their volumes as much as possible even if they already are below legal and regulatory limits based on consideration for the natural environment and ecosystems
(3) Usability over the long term through repair and parts replacement
(4) Employment of recyclable designs with consideration for environmental impact, and ease of segregation and disassembly, waste processing and disposal, and recycling
(5) Use of recycled resources
(6) Reduced use of energy and other resources through miniaturization

Priorities in selection of suppliers

(1) Vendors that proactively supply technologies, as well as raw materials, other materials and supplies, products, parts, equipment, and services, that contribute to lessening environmental impact
(2) Vendors that proactively disclose information on subjects such as environmental impact and chemical substances contained
(3) Vendors that strive to reduce CO₂ emissions
(4) Vendors that proactively utilize renewable energy
(5) Vendors that proactively strive to protect the environment, through such means as earning environmental certifications

Supplier due diligence

In promoting continuous transactions in accordance with Supplier Guidelines and Standards on Green Procurement, we regularly ask our major suppliers to conduct self-evaluations to help understanding of the importance & to enhance the awareness of them. KITZ and our suppliers will work together to realize a sustainable society as supply chain members.

Fiscal 2022 Results

The progress of 2022 is as follows.

[Summary of questionary survey]

・Target Suppliers
Among the suppliers involved in our production processes, 214 key domestic and overseas suppliers were selected based on our criteria.
・Content of the Survey
We asked the target suppliers to answer 21 questions in total with respect to the following items in accordance with our Supplier Guidelines.

Item	Examples of Questions (Examples)
Compliance with Laws and Social Norms	Bribery, involvement with anti-social forces, and infringement of intellectual property rights
Respect for Human Rights	Forced labor, child labor and working conditions
Occupational Health and Safety	Safety assurance and occupational accidents
Building up the management	Stable Supply System (BCP)
Environmental Conservation	To control and reduce CO ₂ emissions and properly dispose of industrial waste
Quality Assurance	Appropriate quality assurance system
Protecting confidential information	Information security and personal information protection
Implementation of responsible procurement	Prevention of Abuse of Superior Bargaining Position

・Method of Assessment
We confirmed whether the questions specified by our company have been satisfied or not, and conducted an assessment of the answers to the questions set as priority issues for fiscal year 2022.

[Results of Survey]

In fiscal 2022, we received responses from 203 out of our 214 suppliers (response rate: 95%).
With regard to answers to the questions set as priority issues for fiscal year 2022, all the suppliers that provided responses answered they have satisfied the issues.

We will continue to implement similar survey throughout entire KITZ Group in order to build a robust global environment and sustainable future as stated in our corporate mission.

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