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 and fiscal 2022, a similar document was distributed again to continue sharing the items.
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Sustainable Procurement
Supplier Evaluation and Guidance for Improvement
The Mitsui Chemicals Group Purchasing Policy includes supplier selection based on the perspective of "sustainable procurement" as one of its key elements. When initiating new transactions, we share the Sustainable Procurement Guidelines and verify the suppliers' efforts toward achieving a sustainable society. 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. In addition, 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.
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, launching 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 subsidiaries and affiliates in Japan, and the sustainable procurement ratio in fiscal 2023 was 61%* for Mitsui Chemicals and 70% for its domestic subsidiaries and affiliates (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 exchange information on the results of SAQ responses. 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 : Value of transactions with suppliers who responded to the SAQ / Value of all transactions
| FY2017 | ─ | FY2021 | FY2022 | FY2023 | FY2030 (Goals) | |
|---|---|---|---|---|---|---|
| Mitsui Chemicals, Inc. | 39% | 61% | 61% | 61% | 80% | |
| Domestic Subsidiaries and Affiliates* | ─ | 70% | 70% | 70% | 80% |
*Main affiliates in Japan
Other forms of support provided to suppliers
- 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. That includes gold (Au), tantalum (Ta), tungsten (W), and tin (Sn). 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.
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. To date, we have conducted explanations of the sustainable procurement SAQ 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 as teaching material. In FY2023, we held discussions using case studies of human rights issues that occurred in other companies' supply chains. This helped to deepen our understanding of the risks that issues arising at suppliers can pose to our business operations.
