The GS Yuasa Group, together with the supply chain, will contribute to creating a sustainable society.

Basic Procurement Policy

Major Procurement Programs

The GS Yuasa Group provides education and guidance on compliance and CSR (corporate social responsibility) to business partners, checks the way they manage harmful substances in products, responds to conflict minerals via surveys and encourages green procurement. We also conduct activities to help our business partners improve results and hold study sessions and presentations on how to boost quality.

Through better partnerships in the supply chain, we are improving the results of both our business partners and the GS Yuasa Group, while decreasing business risk.

Basic Procurement Policy
We intend to boost the results of our business partners and the GS Yuasa Group by working
to create better partnerships based on mutual understanding and relationships of trust.

Briefing Sessions on Production

The GS Yuasa Group holds briefing sessions on production run by management as well as social gatherings every year to increase our major business partners' understanding of the GS Yuasa Group's management policies, annual business policy and basic procurement policy. This also deepens mutual understanding and strengthens relationships of trust with these business partners. In addition, we give awards to business partners who have made outstanding contributions to quality, price and the supply system in terms of transactions in the previous fiscal year.

Promotion of CSR Procurement

Ensuring Quality and Health/Safety

To promote activities that raise quality and enhance health and safety, including for business partners who supply parts and raw materials, the GS Yuasa Group provides guidance on quality reflecting the needs of our business partners as well as health and safety patrols, if required. In programs that raise quality, we share with business partners the target values and the results of quality defect analysis of products supplied to the Group and work to improve the quality of these items along with our partners. We have set target values for fiscal 2018 at 24 cases (quality defects) for products to be delivered to GS Yuasa International Ltd. and 0.80% (rate of quality defects) for those to GS Yuasa Technology Ltd.

We believe that these activities create strong partnerships in the supply chain and are important to ensure the quality of products used by customers as well as the health and safety of our business partners.

Incidence of Quality Defects among Products Delivered from Suppliers

Incidence of Quality Defects

Guidance on Quality for Business Partners

Guidance on Quality for Business Partners

Response to Conflict Minerals

Conflict minerals mean mineral resources mined in some conflict areas in the world.

In these conflict areas, social problems such as inhumane acts including massacres, abductions, violence and recruitment of child soldiers by armed groups have occurred, and minerals mined in such areas are used as a source of substantial funds by armed groups.

The GS Yuasa Group recognizes that it is important to tackle the conflict mineral problem for the global supply chain, and is promoting activities not to be complicit in any form of human rights abuses, in cooperation with various stakeholders including our business partners.

Therefore, we have formulated a policy to deal with the problem of conflict minerals and are promoting responsible minerals procurement without using conflict minerals in accordance with operational management based on this policy.

Policy on Conflict Minerals

GS YUASA promotes the following commitments to avoid assisting such anti-social activities as armed conflict waged by armed groups and human rights violations associated with the armed conflict in the Democratic Republic of the Congo and neighboring countries (hereinafter "Congo & Neighboring Countries") and to achieve the responsible procurement of minerals.

  1. We work to avoid direct or indirect procurement of conflict minerals (gold, tin, tantalum and tungsten which lead to the assistance mentioned above) from the Congo & Neighboring Countries and the use the conflict minerals, in accordance with GS YUASA CSR Policy.
  2. If it is discovered that conflict minerals have been procured or used by our group company and its supplier, we will cooperate with related companies and take action to avoid such procurement and use.
  3. We will continually investigate the use of conflict minerals voluntarily or upon a request from our customers. When information on the purchasing source (such as the name of a smelter) has not been disclosed in good faith and we have concerns about the possible procurement and use of conflict minerals, we will work to clarify information on the purchasing source.

Green Procurement

The GS Yuasa Group companies in Japan makes the following requests of business partners based on our Green Procurement Criteria.

Requirements for Business Partners
  1. Operation of an environmental management system
  2. Examination of chemical substances contained in items being supplied
  3. Checking the legality of cutting down certain trees (logging)
  4. Programs to identify and reduce CO2 emissions

For 2. above, we ask our business partners to examine substances using Chemical Substance Management Guidelines, which comply with international laws and regulations including EU directives (REACH, RoHS, etc.), and to test individual chemical substances as specified by customer needs.

GS Yuasa evaluates the appropriateness of stipulations to business partners concerning green procurement by checking and auditing the status of their response. By prioritizing those business partners that supply goods that conform to green procurement standards, we are reducing the environmental burden, including the burden within the supply chain.

Introduction of Environmental Management System by Business Partners (FY 2017, transaction amount base)

Introduction of Environmental Management System by Business Partners (FY 2016, transaction amount base)

Promotion of CSR Procurement

The GS Yuasa Group assesses business partners using a QCDE approach (quality, cost, delivery and environment). Going forward, we will add elements of CSR to these assessments to ensure that our social responsibility is being met throughout the supply chain. To achieve this goal, we will share the GS Yuasa Group's CSR Procurement Guidelines with our business partners and work to promote CSR procurement based on mutual cooperation.

In briefing sessions on production in fiscal 2018, we are asking our business partners to strengthen their CSR initiatives and to cooperate with us on CSR procurement. Currently, we are conducting a survey on the status of our business partners' CSR initiatives. Going forward, we plan to identify CSR risk in the supply chain by analyzing and evaluating the survey results and implement initiatives to reduce risk.