Building a Sustainable Supply Chain

We are committed to fulfilling our social responsibility together with our suppliers who make up our supply chain. In order to foster good partnerships for this purpose, we will continue our activities to explain the Denka Group ESG Basic Policy and gain approval through direct visits to suppliers, which we have been implementing since 2017.
In June 2023, we signed the United Nations Global Compact, the world’s largest sustainability initiative. We ask all suppliers to complete the Self-Assessment Questionnaire (SAQ) issued by the initiative, and for those suppliers who do not meet a certain score, we provide feedback on the score and use it as a tool for mutual discussion and improvement toward corrective action, leading to stable procurement.

Basic purchasing agreements which have been concluded between the Denka Group and all companies with which we conduct business include in their support for the Denka Group Sustainable Procurement Basic Policy and the Denka Group Sustainable Procurement Guidelines.

Furthermore, we have started constant monitoring using screening tools to quickly obtain sanction/exclusion lists and negative press reports and to prepare for supply concerns before they arise.
We will strengthen our supply chain by both strengthening our relationships with suppliers and understanding information, and together with our suppliers, we will build relationships that will be recognized and developed by society.

Implementation of Buyer Training

In order for the Denka Group to build good relationships with suppliers and promote sustainable procurement, it is necessary for all employees in procurement departments to comply with the Denka Group Sustainable Procurement Basic Policy and the Denka Group Sustainable Procurement Guidelines. For this purpose, Denka not only provides training each year to enable understanding of the content of these policies and guidelines, but also creates original training materials for procurement staff that summarize specific procurement activities with a view to the future as well as the annual results, and implements educational programs, including online education (e.g. e-learning).

Communication with Suppliers

Regarding all business partners as good partners of the Denka Group, in order to realize our social responsibility in the supply chain together with our business partners, the Denka Group has established the Denka Group Sustainable Procurement Basic Policy and the Denka Group Sustainable Procurement Guidelines, which are based on the Denka Group ESG Basic Policy, and clarified its approach and standards related to procurement.
In addition, suppliers that account for the top 90% of the Denka Group’s purchase amounts are asked to complete an assessment survey by the Global Compact Network Japan (GCNJ) and to endorse this policy.