Supply chain management
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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 “KITZ Group Green Procurement Guidelines” that summarize the concept of procurement activities reflecting consideration for the global environment.
CSR Procurement Guidelines
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.
The KITZ Group hopes to contribute to the realization of a sustainable society through procurement activities based on the above-mentioned procurement policy. However, it is difficult to achieve this on our own. It is essential that our suppliers and business partners understand our principles and values and work together as members of the supply chain.
Based on these principles, we have established the requirements we expect our suppliers to comply with in the “Supplier Guidelines” and the “KITZ Group Green Procurement Guidelines.” We respectfully request that our suppliers understand the contents of these guidelines and make efforts to comply with and respect them.
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 Group and our suppliers will work together to realize a sustainable society as supply chain members.
Past Achievements
■Results for FY2022
– Suppliers surveyed: A total of 214 significant suppliers of KITZ were surveyed.
– Number of respondents: 203 companies (response rate of 95%)
– Results: No suppliers that responded to the survey indicated non-compliance with the guidelines regarding the key issues.
■Results for FY2023
– Suppliers surveyed: A total of 245 significant suppliers of four KITZ Group companies in Japan and overseas were surveyed.
– Number of respondents: 227 companies (response rate of 93%)
– Results: No suppliers that responded to the survey indicated non-compliance with the guidelines regarding the key issues.
Results for FY2024
【Survey Outline】
– Suppliers surveyed: A total of 117 significant suppliers of four KITZ Group companies in Japan and overseas were surveyed.
– Surveying Company
1． KITZ SGS Corporation
2． KITZ Metal Works Corporation
3． KITZ Corporation of Jiangsu Kunshan
4． KITZ (Thailand) Ltd.
– Survey content: Questions concerning compliance with laws, regulations, and social norms, as well as respect for human rights, etc., based on 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 |
– Evaluation method: Status of responses to the questions set by KITZ and status of responses to the key.
[Survey Results]
115 companies (response rate of 98%)
All the suppliers who responded to this survey indicated that they have addressed the issues designated as key priorities for FY2024. We are conducting hearings of suppliers with some unmet requirements and continuing to work on improvements to reduce risks.
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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