Mitsui Chemicals

Sustainable Procurement

Management System

Policy

The Mitsui Chemicals Group engages in purchasing activities based on the Mitsui Chemicals Group Purchasing Policy. The policy incorporates a sustainable procurement perspective. In the procurement activities, the Mitsui Chemicals Group has created tasks that we would like to work on with the full cooperation of our suppliers in the Mitsui Chemicals Group Sustainable Procurement Guidelines to fulfill environmental and social responsibilities in the entire supply chain from a global perspective.
The Mitsui Chemicals Group verifies the status of sustainable activities when starting transactions with new suppliers as well as periodically with our current suppliers depending on transaction details. This involves confirming a wide range of specifics that include environmental protection, occupational safety, quality assurance, corporate governance, fair transactions, human rights, and information security. In addition, we evaluate supplier companies based on the results of these surveys and offer guidance on making improvements as needed. In the case that there are compliance violations and other significant discrepancies at suppliers, we will take steps to address these issues in accordance with established standards.

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.
  • (1) Suppliers that respect human rights, prohibit discrimination, and do not engage in any acts which violate human rights
  • (2) 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
  • (3) Suppliers that are aware of environmental issues and are committed to solving and addressing them
  • (4) Suppliers that conduct fair corporate activities based on a sound management practices
  • (5) 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.

Transaction Procedures

Transaction Procedures

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Requests to complete sustainable procurement SAQs (Self-assessment Questionnaires) are made once every four years.

System and Responsible Officers

With the officer in charge of the Purchasing Division as the responsible party, the Purchasing Division formulates and implements plans related to sustainable procurement for purchases made by the Purchasing Division, major business divisions, and domestic and overseas affiliates.

Monitoring Methods

The Purchasing Division confirms the status of suppliers by regularly conducting sustainable procurement SAQs as well as supplier audits in the context of its sustainable procurement environment. At monthly results review meetings, such surveys determine the progress of sustainable procurement action plans as well as achievements, which are then reflected in plans for the next fiscal year. In addition, we check the status of sustainable procurement activities during annual audits conducted by corporate auditors and the Purchasing Division.

Goals and Results

KPI Scope of Compilation FY2017 FY2018 Medium to Long-term
Goals Results Level
Achieved
Goals Goals
Sustainable procurement ratio* Mitsui Chemicals Group 70%
(FY2025)
Sustainable procurement ratio* Mitsui Chemicals, Inc. 39%
*
Sustainable procurement ratio:
The sustainable procurement SAQ response rate from suppliers (Group-wide transaction value basis). Feedback and improvement assistance are provided to the suppliers based on the response results.

Review and Challenges

Mitsui Chemicals has promoted mutual understanding between it and suppliers as well as improvement assistance since establishing the Mitsui Chemicals Group Purchasing Policy in fiscal 2006 based on its sustainable procurement SAQ.
One of the aims of the 2025 Long-term Business Plan is to undertake supplier sustainability assessments and improvement assistance (sustainable procurement ratio of 70% or more).
In fiscal 2017, we began surveying the status of the sustainability activities of our suppliers using the CSR/ Sustainable Procurement SAQ drafted by the UN Global Compact Network Japan supply chain subcommittee meetings.
Mitsui Chemicals will pursue initiatives to promote a shared understanding of the importance of sustainable procurement and expand the scope of sustainable procurement throughout the Group centered on the Purchasing Division.