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Sustainable Procurement

Supplier Evaluation and Guidance for Improvement

Mitsui Chemicals Group Sustainable Procurement Guidelines

The Mitsui Chemicals Group has compiled the “Mitsui Chemicals Group Sustainable Procurement Guidelines” to outline the items we ask our suppliers to work on together with us from the perspective of sustainable procurement. We have been requesting cooperation from our suppliers based on these guidelines. To further promote sustainable procurement in collaboration with our suppliers, we strengthened the implementation of the guidelines in April 2025. Initially, we are asking domestic suppliers to sign an agreement and to cooperate in disseminating the guidelines to their subcontractors.

Transaction Procedures

When initiating transactions with new suppliers of key raw materials, we share the Guidelines and verify the suppliers' efforts toward achieving a sustainable society through their responses to the Sustainable Procurement Survey. For ongoing suppliers, we regularly review their efforts according to the nature of the business relationship. In addition to items related to environmental conservation, occupational safety, and quality assurance, we also have specific check items that cover a wide range of topics, including corporate governance, fair trade, human rights, and information security.

Based on the results of these reviews, we evaluate the partner companies, using the findings not only to decide on partner selection and the continuation of business relationships but also to offer guidance on making improvements where needed.

Survey on Sustainable Procurement

The Mitsui Chemicals Group has been using the CSR/Sustainable Procurement Self-assessment Questionnaire (SAQ), published by the Global Compact Network Japan (GCNJ) Supply Chain Working Group, since 2017 to monitor and support improvements in the sustainability performance of its suppliers, with a focus on environmental, social, and governance aspects in the supply chain. Starting in fiscal 2024, we have also begun trial use of external sustainability rating agencies to objectively assess supplier initiatives. The coverage of suppliers subject to such sustainable procurement assessments is monitored as the “sustainable procurement ratio,” which is set as one of the KPIs in VISION 2030.

In fiscal 2024, the sustainable procurement ratio was 61% for Mitsui Chemicals and 70% for its domestic subsidiaries (12 main companies). The Purchasing Division analyzes responses to the SAQ survey and provides improvement support to suppliers with low scores by visiting them directly and confirming their situation.

We also strive to strengthen two-way communication with suppliers with large transaction amounts through regular information exchanges, where we explain our sustainable procurement policy and share the results of sustainable procurement assessments. Currently, this two-way communication is limited to suppliers with whom we have direct transactions, but we are considering expanding this approach to include further tiers of suppliers in the future.

Sustainable procurement ratio = Transaction values with suppliers who responded to the sustainable procurement survey / Total transaction value

	FY2017	─	FY2021	FY2022	FY2023	FY2024	FY2030 (Goals)
Mitsui Chemicals, Inc.	39%		61%	61%	61%	61%	80%
Domestic Subsidiaries and Affiliates^*	─		70%	70%	70%	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, fiscal 2022, and fiscal 2024, a similar document was distributed again to continue sharing 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 reminder for the establishment of a whistleblowing system

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. Since 2016, the Purchasing Division and RC & Quality Assurance Division have been identifying tin catalysts, etc., within all Group product compositions registered in the chemical safety information system. We conduct conflict mineral surveys of our suppliers of raw materials using CMRT*. As a result, we have continuously 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. This includes tantalum, tungsten, tin, and gold. The sustainable procurement survey 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.
Conflict Minerals Reporting Template provided by the Responsible Minerals Initiative (RMI) for submitting reports on conflict minerals.

Advancing and Streamlining Supply Chain Information Management

In response to increasingly complex procurement environments—such as frequent natural disasters, rising geopolitical risks, and the need to address human rights and circular economy issues—Mitsui Chemicals Group has launched the development of a procurement platform aimed at advancing and streamlining supply chain information management to support environmentally and socially responsible economic activities and stable procurement operations.

To address supply chain disruption risks and challenges related to human rights, labor practices, and environmental issues, the platform incorporates supply chain risk management services and supplier survey functions. These features enable faster initial responses through automated information collection and sharing in emergencies such as natural disasters. Additionally, by expanding the scope of sustainable procurement surveys and integrating third-party evaluation data into the platform, the objectivity of procurement decisions can be enhanced.

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. To date, we have conducted explanations of the sustainable procurement survey for purchasing managers in business divisions and domestic affiliates (subsidiaries), made it mandatory for the Purchasing Division staff to complete the e-learning course "Quality Audit Operations," and held workshops using GCNJ's Game of Choice and other materials as teaching material.