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 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.
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
The KITZ Group promotes ongoing transactions in accordance with the Supplier Guidelines and Green Procurement Standards by encouraging major suppliers to conduct self-assessments based on these guidelines and standards.
This effort aims to enhance understanding and raise awareness of the importance of these initiatives.
Together with our suppliers, the KITZ Group will work as one to realize a sustainable society throughout the entire supply chain.
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 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
【Survey Outline】
– Suppliers surveyed: A total of 245 significant suppliers of four domestic and overseas companies within the KITZ Group
– Surveying Company
1． KITZ Micro Filter Corporation
2． KITZ SCT Corporation
3． Perrin GmbH（Germany）
4． KITZ Corporation of Europe, S.A.(Spain)
– Questions: The questionnaire was developed based on the Supplier Guidelines and included questions about respect for human rights and compliance with laws, regulations, and social norms.
| 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 |
– Assessment method: We tabulated the responses to the questions assessing the suppliers’ compliance with the guidelines. The questions covered key issues.
– 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 in FY2023.
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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