The GS Yuasa Group, together with the supply chain, will contribute to creating a sustainable society.
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.
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.
Stance on CSR Procurement
The GS Yuasa Group advances materials procurement based on awareness of such international social issues as forced labor, child labor and environmental destruction. Along with quality, performance, pricing, delivery deadlines and other conventional supply demands, it is also vital to base procurement in CSR championing human rights, working conditions and the global environment. Toward that end, the Group does not simply tackle CSR on its own, but also, in cooperation with suppliers, promotes CSR procurement (responsible procurement activities taking sustainability into consideration) in response to social issues.
By tackling CSR, we believe we can raise the mutual corporate value of our Group and suppliers and realize a mutually prosperous supply chain overall.
In fiscal 2018, the GS Yuasa Group published CSR Procurement Guidelines and issued it to suppliers to better clarify the practices of responsible procurement. These Guidelines seek to support a sustainable society through the partnership linking the Group to all suppliers. The key goal is to reduce business risks capable of negatively impacting improvements in mutual performance and sustainability, with supplier briefings held to raise awareness of the spirit and key points of these new parameters throughout the supply chain.
To pinpoint important CSR issues in its supply chain, the Group surveys our suppliers' grasp of proper CSR measures. Questionnaires track corporate ethics, human rights, work environments, environmental protection, product safety, information and other themes. We also follow up on responses that pose doubts or are unclear. In fiscal 2018, we conducted questionnaires targeting 367 suppliers (125 in Japan, 242 overseas). Based on analysis and assessment of the responses, we will determine pivotal supply chain CSR issues and implement appropriate measures.
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 also provide support for the quality enhancement measures of business partners such as by conducting quality improvement lectures and holding quality improvement events where business partners conduct plant tours for one another.
Through these activities, we are supporting the creation of strong partnerships in the supply chain and measures 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
GY : GS Yuasa International Ltd.
GYT : GS Yuasa Technology Ltd.
A quality improvement meeting
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.
- 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.
- 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.
- 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.
The GS Yuasa Group companies in Japan makes the following requests of business partners based on our Green Procurement Criteria.
- Requirements for Business Partners
- Operation of an environmental management system
- Examination of chemical substances contained in items being supplied
- Checking the legality of cutting down certain trees (logging)
- 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. When selecting new business partners, we apply business partner selection criteria relating to environmental management. In fiscal 2018, all business partners that entered into new agreements satisfied those criteria.
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.
Business partner selection criteria relating to environmental management
- Acquired third-party certification of environmental management systems
- Has not acquired third-party certification of environmental management systems but has submitted a plan for acquisition
Introduction of Environmental Management System by Business Partners (FY 2018, transaction amount base)
Reduction of CO2 Emissions and Water Consumption in Supply Chains
The GS Yuasa Group is working to reduce environmental impact not just from its own business activities, but throughout the entire supply chain to address environmental issues including climate change and resource depletion.
In fiscal 2018, we conducted a survey of our main domestic suppliers concerning greenhouse gas emissions and water consumption in conjunction with production of products supplied to our Group and ascertained the status of environmental impact in supply chains. Starting in fiscal 2019, we will request that suppliers cooperate with our measures for achieving CO2 emission and water consumption reduction targets (down by 1% or more compared with the previous fiscal year) in conjunction with production of products supplied to our Group.
The Group is working to conserve natural environments in all its business activities by efficiently using resources including energy and water throughout the entire supply chain.