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Strengthening of Partnership with the Supply Chain

Updated August 2025

Strengthening of Partnership with the Supply Chain

Building a Sustainable Supply Chain

We believe that it is important to fulfill our social responsibilities together with our suppliers that make up our supply chain. To this end, we will continue our activities to explain the Denka Group ESG Basic Policy and gain the understanding of our suppliers through direct visits, which we have been conducting since 2017, to foster good partnerships.
In addition, in June 2023, we signed the United Nations Global Compact, the world’s largest sustainability initiative, and requested all of our suppliers to complete the SAQ questionnaire issued by this initiative. For suppliers that do not meet certain scores, we provide feedback on their scores and use the questionnaire as a tool for mutual discussion and improvement toward corrective action.

The Denka Group includes a statement of agreement regarding the Denka Group Sustainable Procurement Basic Policy and the Denka Group Sustainable Procurement Guidelines in the basic purchasing agreements with all companies with which it conducts transactions.

Furthermore, we have started constant monitoring using screening tools to quickly obtain sanctions/exclusion lists and negative press and prepare for supply concerns in advance.
By strengthening the supply chain through both enhancing relationships with suppliers and grasping information, we will build relationships with suppliers that are recognized by society and develop together.

Implementation of Buyer Training

In order for the Denka Group to build good relationships with its suppliers and promote sustainable procurement, all employees belonging in the procurement departments must continue to comply with the Denka Group Sustainable Procurement Basic Policy and the Denka Group Sustainable Procurement Guidelines. To this end, Denka conducts training every year not only on the contents of these policies and guidelines, but also on specific procurement activities looking ahead to the future and on original training materials for procurement personnel that summarize annual achievements, and implements educational programs including online training (e-learning, etc.).

Communication with Suppliers

Regarding all business partners as good partners of Denka Group, Denka Group has established the "The Denka Group Sustainable Procurement Basic Policy  and Guidelines" based on the "Denka Group ESG Basic Policy" in order to realize social responsibility in the supply chain together with business partners. We have clarified our approach and standards for CSR procurement.
In addition, suppliers who account for the top 90% of Denka Group purchases are required to accept this policy by conducting a GCNJ (Global Compact Network Japan) assessment questionnaire.

Supply Chain Data
Item Scope Unit 2024年度 2025 Targets 2030 Targets
Percentage of companies that have agreed to Denka's Supply Chain Policy and Guidelines Non-Consolidated % - 100% 100%
Percentage of audits conducted for low score suppliers Non-Consolidated % - 50% 100%
Percentage of procurement department staff who have received training on policies Non-Consolidated % 0 100% 100%
Percentage of implementation of UNGC assessments Non-Consolidated % 67 67 90
DFF Inc., Denka Company Limited CSR and Public Relations Office, Denka Company Limited IR Office, Seiwa Business Link
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