Promoting Sustainability throughout the Supply Chain
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.
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. Based on the results of their assessments, we communicate the strengths and weaknesses to each supplier company and provide the necessary support.
Additionally, we ask our suppliers to also request the implementation of similar initiatives from their suppliers (from secondary suppliers for the DENSO Group).
Main Contents of Supplier Sustainability Guidelines
Safety and product quality
Human rights and labor
Responsible material procurement
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.
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 participated in the working groups of trade organizations, including organizations related to the automobile industry, to investigate the usage of conflict minerals by retrospectively reviewing our supply chains step by step. We also worked to establish efficient investigation methods that give consideration to the burden on suppliers. Furthermore, we actively cooperated in joint explanatory meetings geared toward industry-sponsored suppliers and made concerted efforts to promote activities that foster understanding of the conflict mineral issue.
Also, we have established a Companywide policy to respond to the issue of conflict minerals and made revisions to the Supplier Sustainability Guidelines. At the General Meeting of Suppliers, we request that all of our suppliers procure resources and materials with a strong sense of responsibility. 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.
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.
Establish an environmental management system
Manage and reduce environmentally hazardous substances
Reduce CO2 Emissions within Logistics Activities, reducing packing material usage
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.
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 activities while making efforts to strengthen our partnerships with them.