CSR Procurement
Basic ideas
Basic way of thinking on CSR procurement
Tokai Carbon’s corporate philosophy is to develop "Ties of Reliability"
with our stakeholders, such as shareholders, customers, business partners, local communities,
and employees, through our corporate activities.
It is necessary to face the global environmental and social challenges as a party to roll out
sustainable corporate activities while building up the trust with our stakeholders.
These activities will not solely be completed by the effort of Tokai Carbon Group, but more with
the understanding and cooperation of our suppliers, in our upstream supply-chain. To make this
procurement policy known to all of our suppliers, we have published its contents below.This is
the reason of why we formulated the procurement policy, and with this policy, Tokai Carbon Group
will contribute to the realization of sustainable society with our suppliers.
Policy
CSR Procurement Policy
Tokai Carbon Group Procurement Basic Policy
1）Partnership
2）QCD and fair and impartial evaluation and selection
3）Compliance
4）Respect for human rights
5）Coexistence with the global environment, international community, and local communities
Guidelines to be shared with suppliers
1） Sincere and fair business activities
2） Respect for human rights and safe working environment
3） Efforts to preserve the global environment; coexistence with local communities
4） Appropriate disclosure of corporate information
5） Protection of company assets and information
Procurement
Policy (PDF: 284KB)
Procurement Policy(Chinese) (PDF:
345KB)
Initiatives
Implementation of CSR procurement survey for our business partners
The Group's basic philosophy, "Ties of Reliability" represents building
relationships of mutual trust between our company and our stakeholders including business
partners. At the Tokai Carbon Group, we have bases all over the world and we procure raw
materials from suppliers worldwide. We therefore believe that working to provide social
solutions throughout our entire supply chain is important in building relationships of mutual
trust with our stakeholders.
For our new and priority business partners, we request they
agree with our Group Procurement Policy and respond to the CSR Procurement Survey to confirm
their compliance status. As a general rule, critical suppliers are selected in order of raw
material purchase amount (non-consolidated or consolidated basis*) in the previous year, until
their cumulative purchase amount exceeds 70% of the total consolidated purchase amount
(non-consolidated or consolidated basis), and then adjusted based on the difficulty of securing
alternative suppliers.
The CSR Procurement Survey uses the UN Global Compact's "CSR Procurement Self-Assessment Tool."
In order to identify potential sustainability risks in the supply chain, the main survey items
take into account environmental, social, and governance aspects, as shown below.
*The survey is conducted once every three years in two patterns: critical suppliers to
our
company alone, and critical suppliers to our major overseas subsidiaries (combined
basis).
| 1) Corporate Governance | CSR promotion system, internal control system, business continuity plan (BCP), internal reporting system, and internal and external information dissemination |
|---|---|
| 2) Human Rights | Human rights policy and promotion system, respect for human rights and prohibition of discrimination, avoidance of complicity in human rights violations |
| 3) Labor | Policies and systems to prevent labor-related human rights violations (forced labor, child labor, discrimination, various forms of harassment), payment of fair wages, and proper management of employee health, safety, and hygiene |
| 4) Environment | Environmental policy and promotion system, GHG emissions reduction, efficient use of energy and water, waste reduction, chemical substance management, biodiversity initiatives |
| 5) Fair Corporate Activities | Policies and systems for conducting business fairly, preventing corruption and bribery, preventing violations of competition laws, prohibiting conflicts of interest and insider trading, and eliminating ties with anti-social forces |
| 6) Quality and Safety | Policies and systems for ensuring quality and safety, and responses in the event of an accident |
| 7) Information Security | Information security policies and systems, defense against attacks on computer networks, and protection of personal information |
| 8) Supply Chain | Policies and systems for CSR procurement throughout the supply chain, and efforts regarding conflict minerals |
| 9) Coexistence with the local community | Contributing to the local community and residents, and working to reduce harm to the health and safety of the local community and residents |
The process is characterized by assessing business partners based on the survey result, and requesting them to take the necessary improvement actions. For companies that have committed serious compliance violations, we will promptly review their improvement plans and, if necessary, visit them in person to prevent recurrence.
CSR Procurement Survey Implementation Status
| Survey target | Survey results | Responses to results | |
|---|---|---|---|
| 2020 | Six important raw material suppliers for Tokai Carbon Japan | There were some companies that had violated laws and regulations related to employment and labor, or the environment in the past three years. | We promptly confirmed the improvement plans, etc. of the target companies. |
| 2022 | Five important raw material suppliers for major overseas subsidiaries(combined basis) | No companies had matters requiring confirmation | - |
| 2023 | Five important raw material suppliers for Tokai carbon Japan | Found supplier(s) who have violated laws related to quality, safety, and environment in the past 3 years. | Confirmed their improvement plans, etc., for the subject supplier(s). |
Declaration of Partnership Building
Tokai Carbon has announced its “Declaration of Partnership Building” in support of the aims of the Council on Promoting Partnership Building for Cultivating the Future promoted by the Cabinet Office, the Small and Medium Enterprise Agency, and other concerned parties. We aim to build new partnerships by promoting collaboration, co-existence, and co-prosperity with our supply chain partners and businesses that create value.
Initiatives for promoting green procurement
【Green procurement, green purchasing】
As a part of our environmental activities, when procuring product raw materials, parts, materials, services, etc., from suppliers, we promote the priority selection of goods and services with a lower environmental burden.
- Fuel
To reduce CO2 emissions, we have switched some of our fuel from heavy oil to gas.
- Secondary materials
To promote the reduction of industrial waste, we are switching to materials with value after initial use and reusable secondary materials.
- Packaging and wrapping materials
To ensure the effective use of limited resources, we are adopting simplified packaging, the use of recycled materials, and other environmentally friendly approaches to packaging and wrapping. We are also employing returnable boxes that can be used repeatedly, and reusing shock absorption materials to help promote resource conservation.
- Green purchasing
We believe that purchasing based on a careful consideration of needs and selecting the most environmentally friendly products whenever possible are incredibly effective for building a sustainable, recycling-oriented society. With this in mind, we have created the Green Purchasing Basic Policy and Green Purchasing Procedures, and apply these uniform standards to aggressively promote green purchasing.