Sustainable Procurement
Management System
Policy and Basic Approach
The Mitsui Chemicals Group engages in purchasing activities based on the Mitsui Chemicals Group Purchasing Policy. The policy also defines items that the Group emphasizes when selecting suppliers for sustainable procurement and so on, in addition to conducting fair and honest transactions.
In terms of procurement activities described in the Mitsui Chemicals Group Sustainable Procurement Guidelines, the Mitsui Chemicals Group has defined assignments on which to work with the full cooperation of our suppliers toward fulfilling our environmental and social responsibilities across the entire supply chain from a global perspective.
The Group has established basic rules for purchasing as part of its global policy. The practical application of these rules ensures fair and law-abiding procurement for the Group at the appropriate terms, quality and pricing, and ultimately ensures compliance with laws and maintains and strengthens the Group's competitiveness.
The Mitsui Chemicals Group Purchasing Policy
The Mitsui Chemicals Group recognizes that all its suppliers are good partners and endeavors to trade with them fairly and in good faith in the hope that both the Group and its suppliers will achieve sustainable development.
The Mitsui Chemicals Group also tackles issues, with a global perspective, including environmental, social and corporate governance issues, across the entire supply chain, aiming to achieve sustainable procurement.
The Mitsui Chemicals Group is committed to conducting purchasing activities in accordance with this Group Purchasing Policy.
1. Ensuring compliance
We will conduct purchasing activities in compliance with the applicable laws and regulations and appropriate social practices of the regions and countries in which we operate.
We will also require the same level of compliance from our suppliers.
2. Equal opportunity and transparency
We will be open in choosing our suppliers, and will offer equal opportunity for fair trade in good faith.
3. Selection of suppliers from the viewpoint of “sustainable procurement”
In the interests of building stronger partnerships, we will give priority to the following criteria.
- Suppliers that respect human rights, prohibit discrimination, and do not engage in any acts which violate human rights
- Suppliers that ensure fair working conditions and provide a safe and healthy working environment
Suppliers that prohibit forced labor, prohibit child labor and discrimination in hiring - Suppliers that are aware of environmental issues and are committed to solving and addressing them
- Suppliers that conduct fair corporate activities based on a sound management practices
- Suppliers whose performance in areas such as pricing, quality, and delivery term are at an adequate and reasonable level, and endeavor to maintain and improve their performance
*See the Mitsui Chemicals Group Sustainable Procurement Guidelines established by Mitsui Chemicals for further details.
Revised on February 1, 2019
System and Responsible Officers
With the responsible officer for the Purchasing Division, the Purchasing Division formulates and implements plans related to sustainable procurement for purchases made by the Mitsui Chemicals Group (Purchasing Division, major business divisions, and domestic and overseas affiliates).
To realize sustainable procurement, the Purchasing Division regularly verifies the status of our suppliers by conducting sustainable procurement SAQ surveys and audits.
Progress of the sustainable procurement activity plan and results is monitored in the monthly division meetings, and follow-ups are reflected in plans for the next fiscal year. In addition, we verify the status of sustainable procurement activities during annual audits conducted by corporate auditors and the Purchasing Division.
Goals and Results
In fiscal 2021, we conducted a sustainable procurement SAQ survey with our suppliers, which showed that our sustainable procurement ratio* was 61%.
Based on the survey results in fiscal 2021, we have a goal to implement initiatives for the establishment of sustainable procurement in fiscal 2022. Specifically, in addition to enhancing communication with suppliers by providing feedback (interview) and requesting and supporting suppliers in making improvements, we will endeavor to review, modify, and distribute the Mitsui Chemicals Group Sustainable Procurement Guidelines to internal and external parties.
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| KPI | Scope | FY2021 | FY2022 | FY2030 (Medium to Long-term) |
||
|---|---|---|---|---|---|---|
| Goals | Results | Level Achieved | Goals | Goals | ||
| Sustainable procurement | Mitsui Chemicals Group | ─ | ─ | ─ | ─ | Sustainable procurement ratio* 80% |
| Mitsui Chemicals, Inc. | Implementation and analysis of the sustainable procurement survey in FY2021 | Conducted sustainable procurement SAQ survey (61% sustainable procurement ratio*) |
○ | Bolster communications with partners to solidify our efforts in this area (Interviews; requests for improvement; revision of guidelines, and turning these guidelines into common sense) | ||
*Sustainable procurement ratio:
The ratio of the sum of transaction values with suppliers who responded to the sustainable procurement SAQ survey to the total transaction value (= Transaction values with suppliers who responded to SAQ / Total transaction value). This ratio is being monitored.
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