Ensuring Social Responsibility within Our Supply Chain

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

Collaboration with Business Partners

Building Better Partnerships

The GS Yuasa Group believes that all suppliers are important business partners. By providing support for improving mutual development with suppliers, support for quality control and health and safety management, as well as working on education and guidance on compliance and CSR, we aim to strengthen our business foundation together with our suppliers.

We also hold annual procurement policy briefings to raise understanding of our management policies, annual business policies, and basic procurement policy and to deepen mutual understanding and trust. We also created a system for granting awards to business partners that have made outstanding contributions to quality, price, delivery deadlines, and social contribution.

In fiscal 2021, we aim to focus on key themes such as enhancing competitiveness throughout the supply chain and formulating responsible procurement guiding principle to respond to stakeholder requests.

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Procurement policy
briefing for suppliers
(Held online in April 2021)

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Awards to suppliers

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.

Concept of Responsible 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 responsible procurement 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.

Promotion of Responsible Procurement

In fiscal 2018, the GS Yuasa Group published Responsible Procurement Guidelines and issued it to suppliers to better clarify the practices of responsible procurement. The 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. In addition, we are working to further deepen our awareness of the results of Responsible procurement by obtaining the consent of suppliers to cooperate with the content of these guidelines.

In the case of new transactions, we select business partners that conform to the Guidelines.

Overview of requirements for business partners

ClassificationSummary of requirements
Labor
  • Prohibition of forced labor and child labor, and of long working hours
  • Payment of appropriate wages
  • Elimination of discrimination and inhumane treatment
  • Freedom of association
  • Avoid complicity in human rights violations
Health and Safety
  • Appropriate safety management, management of industrial health, and response to occupational accidents and diseases
  • Reduction of physically heavy work, safety measures for appropriate machinery, and provision of hygienic equipment, meals, and housing
  • Mitigate impact in an emergency situation
  • Promoting health and safety communication
Environment
  • Appropriate response to environmental laws and regulations concerning permits, approvals, and notifications
  • Appropriate management of hazardous substances, waste, atmospheric emissions, and water
  • Efficient use of natural resources and energy
  • Reduction of greenhouse gas emissions
  • Restrictions on use of substances
Corporate Ethics
  • Elimination of inappropriate profits
  • Fair Business Transactions
  • Respect for intellectual property
  • Appropriate management of confidential information
  • Appropriate export controls
  • Promoting responsible mineral procurement
  • Establishment of whistleblowing system
  • Transparent information disclosure
Product Safety
  • Ensuring product safety
  • Providing safety information concerning products and services
Responsible Procurement Guidelines (557KB,14page)

Investigation of CSR Response Status in the Supply Chain

In order to realize a sustainable supply chain, the Group surveys suppliers’ compliance with requirements listed in Responsible Procurement Guidelines.

In fiscal 2020, we conducted questionnaire surveys with 449 suppliers (298 domestic and 151 overseas) to identify CSR issues in the supply chain. In fiscal 2021, we aim to continue implementing improvement activities for CSR issues.

Overview of the supplier CSR survey process

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PlanDoCheckAct
  • Selection of suppliers targeted for surveys
  • Creating questionnaires
  • Formulating survey schedules
  • Request to suppliers for surveys
  • Distribution of questionnaires
  • Collection of questionnaire response results
  • Analysis and evaluation of response results (identifying CSR issues)
  • Feedback of evaluation results to suppliers
  • Audits (including site inspections, as required)
  • Request for improvements to suppliers for whom CSR issues have been identified
  • Review of the survey plan

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 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.

Health and safety patrols that perform safety inspections at business partner plants point out potential hazards and propose measures to mitigate those hazards depending on the scale of the risks. We provide support for business partners to identify workplace risks that pose hazards to workers and take appropriate action including monitoring of hazards and formulation of safe working procedures. Since fiscal 2019, we have been holding experience-based training, so business partner personnel can experience first-hand and gain an understanding of the hazards in their workplaces.

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.

image:Business partner plant tour

Business partner plant tour

image:Quality improvement lectures

Quality improvement lectures

image:Experience-based training

Experience-based training

Responsible Mineral Procurement

The GS Yuasa Group believes that addressing social issues (armed conflict, human rights violations, etc.) that may arise during the extraction, transport, and trading of minerals used in our products is crucial in the global mineral supply chain, and we strive to conduct responsible mineral procurement with an emphasis on internationally certified frameworks.

Therefore, we have formulated a policy on responsible mineral procurement and we undertake comprehensive operations and management in accordance with that policy so that we can collaborate with business partners and various other stakeholders to undertake activities without being complicit in armed conflict or human rights abuses.

GS YUASA Responsible Mineral Procurement Policy

GS YUASA shall, recognizing the risks of significant adverse impacts which may arise in the supply chain of the minerals used in the products, parts, and materials handled by our company, promote responsible mineral procurement while respecting the internationally recognized framework through the following initiatives, to fulfill the responsibilities to respect human rights and avoid contributing to conflicts.

  1. GS YUASA will investigate whether its group companies or their suppliers procure or use the minerals that may contribute to human rights violations or armed conflicts.
  2. GS YUASA will, if it was revealed that anyone of its group companies or their suppliers has procured or used minerals that have a high risk of contributing to human rights violations or armed conflicts, work on activities to avoid the procurement or use of such minerals, in collaboration with related companies.
Refer here for the full text of the policy on responsible mineral procurement.

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. When selecting new business partners, we apply business partner selection criteria relating to environmental management. In fiscal 2020, 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

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.

To address global warming and water resource issues in particular, we request that business partners cooperate with our measures for achieving CO2 emissions 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.

Managing Business Continuity Risks in the Supply Chain

The GS Yuasa Group conducts periodic surveys to determine the status of business continuity of business partners so that we can ensure stable supplies of purchased parts and materials even in the event of unexpected circumstances including the occurrence of a natural disaster or accident.

If a disaster or other incident occurs, we use the information gathered from earlier surveys to respond promptly. After assessing the status of damage to business partners, we investigate appropriate response measures and so on.

Going forward, we will collaborate with business partners and take measures to ensure business continuity even in the face of unexpected circumstances.

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