As a manufacturer, the Group’s lifeline lies in its supply chain. In order to make it sustainable and strong, we will transform it into a robust materials purchasing system that can respond to rapid changes in the market, society, and the environment, while ensuring co-existence and mutual prosperity with our suppliers. We will also address various social
imperatives, such as the reduction of GHG (greenhouse gas) emissions in Scope 3, the handling of hazardous substances, and human rights issues.
TOKYO KEIKI Group Sustainable Materials Procurement Policy
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In procuring materials, we will, on the premise of conducting fair
transactions, make selections in good faith based on a fair and
comprehensive evaluation of basic evaluation criteria such as quality,
price, delivery time, and environmental considerations, as well as
sustainability of business activities and attitude toward ongoing
improvement.
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In conducting transactions, we will comply with social norms and related
laws and regulations, and appropriately manage information obtained
through such transactions. In addition, we will ensure that confidential
information is not leaked.
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In conducting transactions, we respect the vision and position of our
suppliers as partners in manufacturing, and by building relationships of
trust from a medium- to long- term perspective, we aim to strengthen our
competitiveness through mutual prosperity with these partners.
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In order to ensure the trust of customers and the market by maintaining
the quality of procured parts and materials, we will establish a
sustainable quality management system in cooperation with our business
partners.
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In conducting transactions, we will promote material procurement
activities that take into consideration health and safety, the working
environment, and human rights in the supply chain.
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In procuring materials, we will strive, alongside our business partners,
to protect the environment in accordance with our environmental policy and
promote green procurement activities, including reduction of GHG emissions
and harmful chemical substances, in consideration of the global
environment.
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In preparation for disasters and unforeseen circumstances, we will work
with our business partners to establish a BCP system for maintaining
employee safety and continuity of corporate activities in the supply
chain, and take appropriate measures.
Supply chain management system
Our Group’s supply chain management system comprises the Material
Management & Purchasing Office, the Headquarters’ administrative
divisions; and the purchasing divisions of each internal company.
As an organization under the direct control of the President, the Material
Management & Purchasing Office supports each internal company’s purchasing activities.
The Material Management & Purchasing Office engages
in administrative tasks such as maintaining and managing basic companywide
policies, the Standard Purchasing Rules, and the template of Purchase Agreement used by our Group.
The office also provides companywide guidance on the Act against Delay in Payment of Subcontract Proceeds, etc. to
Subcontractors (Subcontract Act); supervises purchasing and procurement;
maintains and manages our core information system (TBB system*); manages
credit based on supplier management information; and supports the activities of cooperatives and partner association suppliers.
In addition, the Office is in charge of procuring materials for product development in the Headquarters District.
Each internal company’s purchasing division primarily
purchases the production materials necessary for that company’s
production activities, engaging in efficient, fair, and equitable transactions
with our suppliers in Japan and overseas. When initiating a transaction, it is
standard practice to conclude a Purchase Agreement. Actual purchasing is
conducted using our TBB system, ensuring that the transaction is in accordance with the Standard Purchasing Rules.
Each internal company engages in the development of the skills of its purchasers. The Material Management &
Purchasing Office also urges purchasers of each internal company’s purchasing division to take a seminar on the
Subcontract Act. In fiscal 2023, in line with the revision of the Electronic Bookkeeping Act, 33 employees, including
those who are not in purchasing, took the course.
*TBB System: Tokyo keiki Best Buying System
Concepts regarding human rights
Our Group will respect human rights and will appropriately manage personal information. Under the idea that providing
motivating workplaces while respecting the human rights, personalities, and individualities of employees aids in
maintaining and strengthening our Group’s competitiveness, we aim to be a company where diverse human resources
can play active roles regardless of race, nationality, gender, age, or other characteristics. We also monitor the business
activities of overseas subsidiaries and suppliers in everyday work to ensure the absence of human rights violations.
Green partner initiative
The “Green Partner System” is an initiative to eliminate hazardous
substances from production processes throughout the supply chain in order to
encourage environmentally friendly manufacturing. TOKYO KEIKI is putting this
system into practice alongside our suppliers.
Under this initiative, suppliers
who meet our management standards and have the ability to conduct independent
quality management to prevent hazardous substances being used in or
contaminating their production lines are certified as Green Partners. This
eliminates the need to submit a non-inclusion certificate for each product or
part and to conduct some of the tests on the chemical substances they contain.
We also provide various services to Green Partners, such as support for the
testing and analysis of chemical substances contained in parts and materials,
provision of environment- related information, and support for
environment-related education.
Engagement with suppliers
Business policy briefings for suppliers are held in May every year primarily at each of the Group’s production
sites (the Nasu Plant, Yaita Plant, and Sano Plant) in an effort to share information.
Quality audits are based on each internal company’s quality management system and are conducted at the start
of transactions, on a regular basis, and on other occasions as deemed appropriate. The scale of our Group’s suppliers
is varied. Many of our machined component suppliers, in particular, are small in scale, and with them we value
face-to-face dialogue with purchasers. This makes it easier to know a supplier’s working conditions and
quality management, and also helps to build long-term relationships of trust with suppliers.
Calculating Scope 3 emissions
In order to understand supply chain GHG emissions across all of our business activities and effectively
reduce them, we calculated the total emissions of all of our supply chains based on the Basic Guidelines on
Accounting for Greenhouse Gas Emissions Throughout the Supply Chain from the Ministry of the Environment.
The breakdown of Scope 3 emissions is shown in the
table below. Emissions from Category 1 (purchased goods and services) were the greatest at 61.5% of the total,
followed by Category 11 (use of sold products) at 28.1%. We have confirmed that understanding the actual status
of these two categories and planning and implementing reduction measures are effective in reducing Scope 3
emissions, and will implement these measures accordingly.
Since Scope 3 is expected to be replaced in the near future by calculations using primary data (actual data,
rather than calculations), we have decided to set a target value for Scope 3 by fiscal 2025.
*1: Not applicable (emissions from leased assets included in Scope 1 and
2).
*2: Not applicable (finished product logistics outsourced and thus
included in category 4).
*3: Not applicable (as TOKYO KEIKI’s products are finished products, they
are not processed after sale).
*4: Not applicable (no relevant leased assets).
*5: Not applicable (no relevant franchises).
*6: Not applicable (no relevant investments).
Calculation method: Based on the Basic Guidelines on Accounting for
Greenhouse Gas Emissions Throughout the Supply Chain from the Ministry of
the Environment and the Ministry of Economy, Trade and Industry.
Calculation period: April 1, 2023–March 31, 2024
Calculation scope: TOKYO KEIKI (non-consolidated)