Promoting Sustainability throughout the Supply Chain

Basic Stance

Due to the extent of their influence on society, multinational corporations engaging in business in the global market are expected to implement policies and measures for promoting corporate conduct that takes into consideration responsibilities such as legal compliance, protection of human rights and labor, the environment, and business ethics, both in their own operations and in those of their suppliers. As such, we believe that promoting sustainability, an approach that exercises social responsibility throughout the entire supply chain, is a mission of the DENSO Group in becoming a trustworthy corporate group in harmony with society.

To this end, DENSO requests that its suppliers agree to the DENSO Group Sustainability Policy as well as conclude a basic transaction contract that addresses issues such as compliance, protection of human rights, environmental conservation, and occupational safety. We also ask our suppliers to promote sustainability through such means as assigning a contact person for matters concerning sustainability and clarifying their own related policies.

Specific Initiatives

Promoting Sustainability under the Supplier Sustainability Guidelines

Based on requests from industry organizations and customers both in Japan and overseas, DENSO has developed various Sustainability-related tools, including the Supplier Sustainability Guidelines, in order to efficiently promote sustainability together with its suppliers. Also, we regularly ask our suppliers to assess their own Sustainability practices through self-diagnostic sheets. Among the suppliers who complete the self-diagnostic sheets, we hold dialogues with a certain number of suppliers each year in which we ask them to make improvements toward particularly important items.

Additionally, we ask our suppliers to also request the implementation of similar initiatives from their suppliers (secondary suppliers for the DENSO Group).

Main Contents of Supplier Sustainability Guidelines

    1. Safety and product quality

    2. Human rights and labor

    3. Environment

    4. Compliance

    5. Disclosure

    6. Risk management

    7. Responsible material procurement

    8. Social contribution

    9. Development for all suppliers

  •  1.Common knowledge  Distributing Supplier Sustainability Guidelines 
     2.Visualization of strengths and weaknesses

    ・Distributing handbooks and self-diagnosis
    ・Collecting diagnostic sheets.

     3.Inspection  Carrying out on-site visits by responsible DENSO Group personnel to conduct evidence-based checks
     4.Improvement  Holding study sessions(including lectures)

Dialogue with Suppliers

We visited several DENSO Group suppliers to exchange opinions based on the results of 
their self-diagnostic sheets. DENSO provides support to suppliers in the event they need to make improvements due to such factors as changes in the social environment.

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Comments from Suppliers

  • “Exchanging opinions about activities activities is very useful. We hope to have similar opportunities in the future as well.”

  • “Small- to medium-sized companies do not have departments specialized in monitoring revisions to applicable laws and regulations, and collecting such information is difficult.
    We hope that DENSO will continue to provide relevant information in this field.” etc.

Initiatives to Address the Issue of Conflict Minerals

Minerals that originate from the Democratic Republic of the Congo and adjoining countries, or “conflict minerals,” are mined through non-humanitarian acts, and it is said that these minerals are used to finance armed groups. Accordingly, conflict minerals are becoming a significant social problem in regard to human rights.

DENSO CORPORATION and its Group companies recognize that conflict minerals represent one of the most significant social issues within the supply chain and have been promoting the procurement of minerals that gives consideration to environmental impact as well as social problems such as human rights infringement.

As for specific initiatives, we have established a Companywide policy to respond to the issue of conflict minerals. At the same time, we have made revisions to the Supplier Sustainability Guidelines to include content on conflict minerals. At the General Meeting of Suppliers, we ask that all of our suppliers procure resources and materials with a strong sense of responsibility. In addition, we have all of our suppliers cooperate with a conflict minerals survey each year. In fiscal 2020, we received responses from all suppliers that we had asked to complete the survey (approximately 5,000 suppliers).

Moreover, we participate in working groups of trade organizations, including organizations related to the automotive industry, to gain an understanding of the latest conditions regarding conflict minerals, which we then relay internally and to our suppliers. Following changes in the market, including the electrification trend, the number of minerals that qualify as conflict minerals has been increasing. Accordingly, we will regularly review relevant risks and examine our response policies as a company.

Through cooperation with our business partners, we will continue to make efforts to avoid the use of minerals suspected of being procured through non-humanitarian acts going forward.

DENSO Group policies and approaches toward conflict minerals

We, DENSO Corporation and its Group companies, promote the procurement of materials with consideration of their impact on the environment and social problems such as human rights infringement and others.
We recognize that the issue of conflict minerals, which originate in the Democratic Republic of the Congo or adjoining countries, is one of the significant social issues among supply chains.
We conduct inquiries about the usage of conflict minerals, and we will take appropriate steps to avoid procurement of materials that can cause social injustices or finance armed groups.
We also ask our suppliers to understand our policies and approaches and to promote responsible material procurement.

Green Procurement Guidelines

In keeping with DENSO EcoVision 2025, DENSO has established the DENSO Group’s Green Procurement Guidelines designed to reduce the use and emissions of environmentally hazardous substances on an ongoing basis. To this end, we have been requesting the following initiatives to our suppliers.

  1. Establish an environmental management system

  2. Manage and reduce environmentally hazardous substances

  3. Reduce CO2 Emissions within Logistics Activities, reducing packing material usage

  4. Improve environmental performance

Anti-bribery Compliance Activity

DENSO has ensured thorough compliance with anti-bribery regulations under DENSO Global Anti-Bribery Policy and Anti-bribery compliance committee by introducing anti-bribery internal rules and engaging in educational activities to the employees, etc..

We must require all those involved in our business not to bribe etc. in the relationships with political parties or administrative bodies and not to engage in giving or receiving gifts, entertainments or money with third parties with the intention to acquire or maintain unjust interest or wrongful preferential treatment.

Future Initiatives

Our customers, investors, and other stakeholders continue to have greater expectations regarding our sustainability initiatives in the supply chain, including initiatives toward the environment, workplace safety and health, and human rights.

Accordingly, with the aim of establishing the plan-do-check-act (PDCA) cycle comprising self-diagnosis, inspection, and improvement under the Supplier Sustainability Guidelines, we will continue to work with our suppliers to constantly raise the level of sustainability activities while making efforts to strengthen our partnerships with them.