Management System Supplier Evaluation and Guidance for Improvement Participating in Initiatives

Supplier Evaluation and Guidance for Improvement

The Mitsui Chemicals Group Purchasing Policy states criteria that it emphasizes when selecting suppliers from the viewpoint of “sustainable procurement.” When commencing transactions with new suppliers, as well as periodically with current suppliers, depending on the transaction details, the Mitsui Chemicals Group verifies their efforts towards realizing a sustainable society. This involves confirming a wide range of specific items that include environmental protection, occupational safety, quality assurance, corporate governance, fair transactions, human rights, and information security. In addition, we evaluate supplier companies based on the results of these surveys and offer guidance on making improvements, as needed. When such surveys and audits identify any significant discrepancies, a penalty, such as suspension of transactions, is imposed according to the penalty criteria.

Transaction Procedures

Transaction Procedures
Transaction Procedures

Survey on sustainable procurement

In order to achieve sustainable procurement, the Mitsui Chemicals Group performs supplier survey activities with the use of the CSR/Sustainable Procurement Self-assessment Questionnaire (SAQ) published by the Global Compact Network Japan (GCNJ) Supply Chain Working Group. This SAQ was drafted to conform with the UN Global Compact’s 10 principles and international regulations such as ISO 26000 and GRI. The sustainable procurement ratio derived from the response results is set and monitored as one of the KPIs in VISION 2030.

The activities started in 2017 first with a survey of the Mitsui Chemicals Purchasing Division and business division suppliers. Today, the SAQ survey has been expanded to cover the suppliers of the Group's main affiliates in Japan, and the sustainable procurement ratio in fiscal 2021 was 61% for Mitsui Chemicals and 70% for its affiliates in Japan (12 main domestic affiliated companies). The Purchasing Division analyzes responses to the SAQ survey and provides improvement support to suppliers with low scores by directly visiting them and confirming their situation. The Group also endeavors to enhance the effects of the survey and bidirectional communication by distributing an awareness promotion reference guidebook, which explains the purpose of the questions and examples of recommended activities.

Sustainable procurement ratio

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FY2017 FY2018 FY2019 FY2020 FY2021 FY2030(Goals)
Mitsui Chemicals, Inc. 39% 44% 44% 45% 61% 80%
Domestic subsidiaries & affiliates* 70% 80%

*Main affiliates in Japan

Other forms of support provided to suppliers

The following information is supplied to our suppliers to ensure mutually beneficial sustainable development for both the Mitsui Chemicals Group and its suppliers.
In fiscal 2018, briefings on the following items were held for contractors at our works, and reminder letters were given to participants. In fiscal 2020, a similar document was distributed again to continue to communicate the items.

  • Examples of previous discrepancies
  • Request items for each supplier
    - Compliance with laws and social norms from a sustainable standpoint
    - Avoid engaging in direct price negotiations with requesting divisions regarding transactions overseen by the Purchasing Division
    - Formulate BCPs (business continuity plans)
  • The Mitsui Chemicals Group Purchasing Policy details and Risk Hotline reminder

Policy on conflict minerals

In the Mitsui Chemicals Group Sustainable Procurement Guidelines, we state “Never purchase or use raw materials containing conflict minerals” as a basis for our responsible procurement of raw materials. In fiscal 2015, the Purchasing Division conducted an investigation covering all raw materials transactions taken in fiscal 2014. As a result, we have confirmed that we do not purchase or use any conflict minerals associated with inhumane acts committed by armed groups on the ground in the Democratic Republic of Congo or any of its neighboring countries. That includes gold (Au), tantalum (Ta), tungsten (W) and tin (Sn).
Since fiscal 2016, the Purchasing Division and RC & Quality Assurance Division are working together to identify tin catalysts, etc. within all Group product compositions registered in the chemical product safety information system. Every year, we conduct conflict mineral surveys of our suppliers using CMRT* and confirm each year that none of these conflict minerals are purchased or used. The sustainable procurement SAQ includes a category for identifying all activities related to conflict minerals.
Should we be shown in the future to have used conflict minerals, we will immediately halt procurement of the relevant minerals.

*CMRT:
Conflict Minerals Reporting Template provided by the Responsible Minerals Initiative (RMI) for submitting reports on conflict minerals.

Internal training for sustainable procurement

Mitsui Chemicals conducts sustainable procurement training that targets all of its Purchasing Division employees, and has been working to promote understanding of sustainable procurement and to put the knowledge into practice. In fiscal 2018, we provided a training program on the items covered in the sustainable procurement SAQ to all Purchasing Division employees to ensure their understanding of the aims of the SAQ. In fiscal 2019, we explained the sustainable procurement SAQ to purchasing personnel in our business divisions and domestic subsidiaries and affiliates. In fiscal 2020, a quality audit e-learning program was added to the requirements for employees in the Purchasing Division to study how the supplier and the buyer collaborate in assessing current conditions, to study processes that lead to improvements and to enable them to be applied in various forms of audit.
In fiscal 2021, the Purchasing Division and the Corporate Sustainability Division co-hosted a workshop using GCNJ's Game Of Choice as the teaching material. Purchasing Division employees across the nation participated in the workshop (participation rate: 90%), where they offered their opinions as their own issues and each individual was able to deepen their understanding.

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