Working with Our Suppliers

Supplier Sustainability Evaluation and Improvement Support

Adopted a Sustainable/CSR Procurement SAQ

Mitsui Chemicals decided to adopt a Sustainable/CSR Procurement SAQ format based on the SAQ drafted at the UN Global Compact Network Japan supply chain subcommittee meeting in order to promote sustainable procurement.

This SAQ was drafted to conform with the UN Global Compact’s 10 principles and international regulations such as ISO 26000 and GRI. In addition, we have established universal content regardless of industry or business format as shared (required) categories to ensure that SAQ tools extend beyond any industry and business format.

Moreover, the following concepts for drafting the SAQ were stated at the UN Global Compact Network Japan supply chain subcommittee meeting.

  • Hold discussions on equal treatment for companies that comprise supply chains regardless of the size of management resources (personnel, assets, funds); sustainable procurement is becoming important for creating a sustainable society.
  • Foster a shared vision, mutual understanding/growth based on SAQ responses from all companies that comprise the supply chain, while aiming to make SAQs a baseline by making them easy to understand, user friendly, and opened-ended in order to implement sustainable procurement on a global level.
  • Take steps to facilitate the channeling of management resources toward improving internal and supply-chain sustainable procurement by sharing SAQs among suppliers and buyers while working to reduce workloads for both parties.

Sharing these ideas, Mitsui Chemicals has taken the initiative in adopting the SAQ to improve sustainable procurement not only in its own supply chain but throughout society and along with other participating companies.

Partial excerpt from the Sustainable / CSR Procurement SAQ tool set of the helpful series aimed realizing global sustainable development published by Global Compact Network Japan

Selecting Applicable Suppliers

Mitsui Chemicals has selected applicable suppliers based on purchasing track records over a three-year period since fiscal 2014. Tabulating purchasing amounts by first-tier suppliers, Mitsui Chemical selected suppliers with a 90% monetary coverage ratio listed in sequence of large monetary amounts, with 354 companies falling within this category. This is equivalent to a monetary coverage ratio of 55% in the case of Mitsui Chemicals’ business division purchases being placed in the denominator. Looking ahead, we are considering extending the scope of applicable suppliers beyond first-tier suppliers to include raw materials production companies.
Mitsui Chemicals will take steps to reach the 2025 Long-term Business Plan target of an over 70% Group-wide sustainable procurement ratio.

Policy on conflict minerals

We are fully aware of the essential need to address so-called conflict minerals here at the Mitsui Chemicals Group. In fiscal 2015, the Purchasing Division conducted an investigation covering all raw materials except fuels and packaging 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). If it comes to light that we have used any conflict minerals in the future, we will immediately halt procurement of the relevant minerals.
From fiscal 2017, Mitsui Chemicals has adopted Sustainable/CSR Procurement SAQ based on a SAQ format drafted at a UN Global Compact Network Japan supply chain subcommittee meeting, which has established a category for confirming conflict mineral-related activities.

In July 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act was enacted in the U.S. The act came about as a result of reports regarding serious human rights violations and damage to the environment, stemming from inhumane acts committed by armed groups on the ground in the Democratic Republic of Congo and its neighboring countries. As this has become a serious international issue, there are growing concerns that trade in conflict minerals could be used to fund armed groups in those countries, either directly or indirectly.