Initiatives
CSR Procurement Guidelines
Reflecting the demands of the international community, PHC Group’s procurement guidelines include CSR indicators such as human rights and labor, health and safety, the environment, corporate ethics and compliance, information security, quality and safety, social contribution, and management systems, and we have posted these guidelines on our website as our “CSR Procurement Guidelines.” By working with our suppliers to promote business activities that comply with these CSR priorities, we are working to advance human rights, environmental protection, and fair trade. These guidelines aim to promote best practices in sustainability across PHC Group, and are aligned with our ESG goals through collaboration with our suppliers.
Supply Chain Management
PHC Group conducted a supplier survey (self-assessment questionnaire based on CSR Procurement Guidelines) with our major business partners, and achieved a response rate of over 95%. The contents of the survey are reviewed every year and updated as appropriate. Additionally, as part of our environmental audits, our technical and quality management departments collaborated to formulate a supplier checklist for auditing management systems for chemical substances contained in products. Based on this, PHC Group checks supplier responses for the parts each supplier provides, informs suppliers about any relevant social and environmental issues regarding those parts, and monitors supplier changes. Additionally, we are implementing internal procurement initiatives to seek cost optimization and reduction of environmental impact, as part of our efforts to be a sustainable business.
Initiatives to Increase Transparency and Efficiency of the Procurement Process
PHC Group prioritizes the transparency and efficiency of our procurement process, increasing groupwide understanding of our overall supply chain. Specifically, we promote transparency of expenditures by category and lead workshops that bring together the procurement departments of business divisions to maximize synergistic effects in the procurement of direct and indirect materials across PHC Group. Through these efforts, we seek to reduce supply risks while working to optimize costs and promote sustainable procurement activities.
Moreover, we are constantly aware of the effects on procurement demanded by ESG management and compliance with the laws and regulations of each country, and we engage in strengthening the resilience of procurement activities in PHC Group with the goal of increasing the sophistication of our procurement organization.
We will continue to develop our sustainable supply chains through collaboration with suppliers and standardization of procurement processes. These activities will contribute to the stability of business overall in PHC Group and improving our business competitiveness.