The Sumitomo Heavy Industries (SHI) Group strives to develop mutually constructive and sound relations with business partners.
In addition to conducting fair, impartial, and transparent transactions on our own, we promote sustainable procurement throughout the entire supply chain so that our business partners are encouraged to engage in initiatives for sustainability in a spirit of respect for human rights and compliance.
The SHI Group aims to provide products and services that contribute to economic and technological development toward sustainable society. In order to achieve this goal, we have established the CSR Procurement Guidelines.
The cooperation of our business partners is essential to these efforts. We ask our business partners for their understanding and cooperation in promoting each item of the guidelines.
- 1Human rights, labor practice, Occupational Health and safety
- Respect for human rights and prohibition of unfair discrimination, unreasonable labor conditions, and harassment
- Compliance with labor-related laws and regulations
- 2Open and fair competition and trade practices
- Realization of open and fair competition and trade practices
- Protection and respect for intellectual property
- Prohibition of provision of illicit profit
- Compliance with laws and regulations related to import and export
- Maintaining confidentiality
- 3Compliance with laws, regulations, and social ethics
- Compliance with business laws
- Severance of relationships with anti-social forces
- 4Improvement of product competitiveness and customer satisfaction
- Ensuring quality and safety
- Strengthening of product competitiveness
- Development and operation of a system that enables a stable supply of products and services
- 5Consideration for the environment
- Compliance with related laws
- Efforts to achieve zero environmental incidents
- Contribution to the realization of low-carbon society
- 6Information disclosure to promote communication with stakeholders
CSR Procurement Promotion System
The Purchasing Department is promoting CSR procurement throughout the SHI Group by establishing the CSR Procurement Guidelines and conducting supplier survey in cooperation with the Sustainability Department of the Planning Division. In order to make procurement activities in accordance with the CSR Procurement guidelines more reliable, we regularly educate procurement department staff on CSR procurement and hold briefing sessions for procurement managers on company-wide policy and activity plan. Through these approaches, we are promoting CSR procurement with the cooperation of our suppliers.
Approaches to CSR Procurement Implementation
Approaches within the SHI Group
Briefings to business unit and affiliated companies
- The procurement departments of business unit and affiliated companies
|FY2017||Business unit||PTC Group, Plastics Machinery Div., Industrial Equipment Div., Precision Equipment Group, and Energy and Environmental Group|
|Affiliated Companies||Sumitomo Construction Machinery, Sumitomo Heavy Industries Environment, Sumitomo Heavy Industries Material Handling Systems, and Shin Nippon Machinery|
|FY2018||Business unit||Mechatronics division|
|Affiliated Companies||Sumitomo Heavy Industries Marine & Engineering, Sumitomo Heavy Industries Process Equipment, Sumitomo Heavy Industries Ion Technology, Nihon Spindle Manufacturing, and Sumitomo Heavy Industries Construction Cranes|
Procurement Manager Meeting
This meeting is hosted by the Purchasing Department twice a year as a meeting across the SHI Group.
Through this meeting, we explain, and disseminate policies for sustainability, procurement compliance, and human resource development, which concern the entire SHI Group.
|Most recent meeting date||November 24, 2021|
|Attendees||Officer in charge of the Purchasing Department, Procurement manager of business units and group companies|
CSR procurement training
The Purchasing department provides CSR procurement training as part of an education course for procurement departments' personnel.
The subjects include sustainability, basic knowledge of CSR procurement, importance of efforts, and specific actions required.
|Number of trainees|
(subject：SHI and subsidiaries)
with Business Partners
Briefings for suppliers
We share information on the SHI Group's approaches for sustainability and CSR procurement with suppliers.
|Number of participating companies|
We conduct a questionnaire survey on the status of sustainability approaches to our major suppliers to assess ESG risks in the supply chain.
In addition, we send improvement request letters to all suppliers who responded to the survey, stating items for which improvement is expected, because many of our suppliers are small and medium-sized companies and there is a need to provide information on sustainability and support their approaches. Through these approaches, we are working to strengthen sustainability throughout the supply chain.
Supplier Survey and Summary of Results (FY2020 )
|Number of responding companies||288 companies|
|Percentage of responding companies to total number of Tier 1 suppliers||3.8%|
|Summary of Survey Results||We identified strengthening our efforts in the following areas as particularly important tasks.
- Effective use of environment and energy
- Safety of production facilities
- Corruption and bribery
- Waste reduction
Declaration of Partnership Development
Responsible Mineral Procurement
The SHI Group has established "SHI Group Basic Policy on Conflict Minerals Mined in the Democratic Republic of the Congo(DRC) and Adjoining Countries" in order not to be complicit in violation of human rights, forced labor, child labor, abuse, environmental destruction, corruption, or crimes against humanity through the procurement of Conflict Minerals. On the basis of this policy, we are committed to responsible mineral procurement.
We apply this policy not only to the Democratic Republic of the Congo and its neighboring countries, but also to any other conflict-affected and high-risk areas (CAHRAs) if we determine that the risk is high on the basis of our risk assessment.
In the Democratic Republic of the Congo (DRC), anti-government armed organizations use forced labor to mine tin, tungsten, tantalum, and gold (hereinafter "Conflict Minerals"), and use proceeds from such minerals as funds for their activities.
In addition, organized violence against local residents is raised as an international issue of concern.
On August 22, 2012, the Securities Exchange Committee (SEC) adopted the "Final Rule on Disclosure Regulations for Conflict Minerals" as a procedure related to Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was enacted in July 2010.
As a result, a listed company in the U.S. is required to report the use of Conflict Minerals in its products every year.
In order to fulfill our social responsibilities, we do not participate in the procurement of conflict minerals.
The SHI Group will promote considering necessary systems and measures in accordance with this policy.
Our business partners are requested to understand our policy and cooperate on our efforts.
We will endeavor to provide products with less environmental load by promoting green procurement.