Mitsui Chemicals

Sustainable Procurement

Supplier Sustainability Evaluation and Improvement Support

Sustainable Procurement Survey

The Group has adopted the CSR/ Sustainable Procurement Self-assessment Questionnaire (SAQ) drafted by the UN Global Compact Network Japan supply chain subcommittee meeting as the SAQ format used to request responses from suppliers.
This SAQ was drafted to conform with the UN Global Compact’s 10 principles and international regulations such as ISO 26000 and GRI. Although the Group already requests that our suppliers meet the requirements of the Sustainable Procurement Guidelines, it is the SAQ that specifically defines the details of these requirements.

Mitsui Chemicals requires that suppliers complete the SAQ, and provides feedback and improvement assistance to suppliers based on the response results. In addition, the SAQ completion rate (Group-wide transaction value basis) has been included as one of the KPI within the 2025 Long-term Business Plan as the sustainable procurement ratio.

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

In fiscal 2017, Mitsui Chemicals selected applicable suppliers that were requested to complete the SAQ based on the purchasing track record of the Group’s Purchasing Division over the three-year period starting in 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. The results and type of improvement assistance provided are shown in the following table. The next survey is scheduled to be distributed in 2021.

Fiscal 2017 Sustainable Procurement Survey Results and Improvement Assistance

    Improvement Assistance (completed in fiscal 2017 and scheduled for completion in fiscal 2018)
Surveyed Suppliers 342 companies
  Responding Suppliers Level 3 (companies receiving 70 – 100 points) 181 companies Provide feedback
Level 2 (companies receiving 40 – 69 points) 57 companies Request resubmission of the completed SAQ with explanations
Level 1 (companies receiving 0 – 39 points) 14 companies Visit the company and hold discussions towards improvements; request resubmission of the completed SAQ with explanations
Total 252 companies
Non-responding Suppliers 90 companies Urge and collect responses

Fiscal 2017 Sustainable procurement ratio

Sustainable procurement ratio
(Purchasing Division transaction value basis)
73%
Sustainable procurement ratio
(Mitsui Chemicals, Inc. transaction value basis)
39%

Going forward, we will engage in sustainable procurement for purchases made by the business divisions and domestic and overseas affiliates. In fiscal 2017, we carried out the following.

  • Exchanged information between the Purchasing Division and 20 other divisions, including the business development divisions, and shared the status of sustainable procurement.
  • Had the Purchasing Division provide explanations of sustainable procurement at domestic affiliate liaison meetings. Exchanged information between five major domestic affiliates.

Sending Reminders to Our Suppliers

In fiscal 2016, Mitsui Chemicals sent reminder letters to around 2,600 Purchasing Division suppliers containing the following 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 Risk Hotline reminder

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.
In addition, the Purchasing Division and RC & Quality Assurance Division are working together to identify tin catalysts, etc., within those Group product compositions that are registered in the chemical product safety information system (SAP–EHS) and conducting conflict mineral surveys of our suppliers.
The sustainable procurement SAQ includes a category for confirming conflict mineral-related activities.

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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.

Sustainable Procurement Training

In fiscal 2016, Mitsui Chemicals conducted sustainable procurement training targeting all of its Purchasing Division employees. Since this time, this training has been included as one of the required elements of procurement training for all newly appointed members.