Management System

Policy and Basic Approach

The Mitsui Chemicals Group engages in purchasing activities based on the Mitsui Chemicals Group Purchasing Policy. The policy incorporates a sustainable procurement perspective, 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.
When commencing transactions with new suppliers, as well as periodically with our current suppliers depending on transaction details, the Mitsui Chemicals Group verifies their efforts towards realizing a sustainable society. This involves confirming a wide range of specific items 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.

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.

Revised on February 1, 2019

Transaction Procedures

Transaction Procedures

*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.
To realize sustainable procurement, the Purchasing Division regularly checks the status of our suppliers by conducting sustainable procurement SAQ surveys and audits. When such surveys and audits identify any significant discrepancies, a penalty, such as suspension of transactions, is imposed according to the penalty criteria specified by the Purchasing Division. 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 check the status of sustainable procurement activities during annual audits conducted by corporate auditors and the Purchasing Division.

Goals and Results

KPI Scope FY2018 Medium to
Long-Term
Goals Results Level
Achieved
Goals
Sustainable procurement ratio* Mitsui Chemicals Group 70%
(FY2025)
Mitsui Chemicals, Inc.(By Purchasing Division and major business divisions) 44%
Mitsui Chismicals, Inc. Purchasing Division 84%

*Sustainable procurement ratio:
The sustainable procurement SAQ response rate from suppliers (based on the purchasing figures). Feedback and improvement assistance are provided to suppliers based on the response results.

Review and Challenges

Since establishing the Mitsui Chemicals Group Purchasing Policy in fiscal 2006, we have promoted mutual understanding with our suppliers, as well as providing improvement assistance, through the sustainable procurement SAQ survey. 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). Further, we exchange opinions with the procurement departments of other companies to continue strengthening our own sustainable procurement activities.
Between fiscal 2017 and 2018, we began surveying the status of the sustainability activities of our suppliers using the CSR/Sustainable Procurement SAQ drafted in the UN Global Compact Network Japan supply chain subcommittee meetings. In fiscal 2018, we revised the Mitsui Chemicals Group Purchasing Policy and the Mitsui Chemicals Group Sustainable Procurement Guidelines were enacted. Mitsui Chemicals will pursue initiatives to promote a shared understanding of the importance of sustainable procurement and expand their scope throughout the Group centered on the Purchasing Division.

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