Business Partners

Basic Views

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.

CSR Procurement Guidelines (Overview)
  1. 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
  2. 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
  3. 3Compliance with laws, regulations, and social ethics
    • Compliance with business laws
    • Severance of relationships with anti-social forces
  4. 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
  5. 5Consideration for the environment
    • Compliance with related laws
    • Efforts to achieve zero environmental incidents
    • Contribution to the realization of low-carbon society

    SHI Group Green Procurement Guidelines[PDF:506KB]

  6. 6Information disclosure to promote communication with stakeholders

CSR Procurement Promotion System

The Purchasing Department exercises overall control over group-wide CSR procurement in cooperation with the Sustainability Department.
At the same time, the Purchasing Department in the Head Office centrally purchases materials and accordingly asks business partners involved in central purchasing to implement Sustainability.
CSR procurement by business units and companies affiliated with the SHI Group is implemented by those divisions and companies in cooperation with the Purchasing Department.

Approaches to CSR Procurement Implementation

Approaches within the SHI Group

Briefings to business unit and affiliated companies

Scope
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 Friday, November 20, 2020
Participants The officer in charge of Purchasing, the responsible persons of the procurement departments in each business unit and affiliated company.

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.

with Business Partners

Establishment of CSR Procurement Guidelines

Briefings for suppliers

We share information on the SHI Group's approaches for sustainability and CSR procurement with suppliers.

Number of participating companies
FY2017 296 companies
FY2018 275 companies

Questionnaire Survey on Approaches for Sustainability

We conduct a questionnaire survey of randomly selected domestic suppliers regarding their initiatives for sustainability.
In addition, a request for improvements is sent out to each supplier that has responded to a questionnaire.

Number of responding companies 288 companies

Declaration of Partnership Development

Approaches for Responsible Mineral Procurement

In an effort to preclude any involvement in the procurement of conflict minerals, the SHI Group formulated "SHI Group Basic Policy on Conflict Minerals Mined in the Democratic Republic of the Congo and Adjoining Countries" and has explored necessary systems and measures in accordance with this basic policy.
Henceforward, we will have the mentioned policy carried on and developed further and, on the basis thereof, engage in responsible mineral procurement by avoiding any involvement in the procurement of tin, tungsten, tantalum, or gold mined, refined, or commercialized in any conflict area or high-risk area with human rights violations, forced labor, child labor, abuse, environmental destruction, corruption, and humanitarian assistance.

SHI Group Basic Policy on Conflict Minerals Mined in the Democratic Republic of the Congo and Adjoining Countries

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.

Green Procurement

We will endeavor to provide products with less environmental load by promoting green procurement.