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Responsible Procurement

The Kureha Group strive to fulfill our social responsibilities throughout the entire supply chain in accordance with our Procurement Policy and CSR Procurement Guidelines. We also ask our suppliers to give consideration to the environment and society, and aim to build fair and equitable relationships with them.

Policy/Policies

The Kureha Group established the Kureha Group Procurement Policy on April 1, 2024 to practice the Kureha Group Corporate Philosophy through procurement activities and promote continual improvement of economic value and contribute to solving social issues.

Kureha Group Procurement Policy

Kureha Group Procurement Policy

The Kureha Group is committed to contributing to the development of a sustainable society by providing products and services that help solve social issues and, at the same time, fulfilling our social responsibility throughout the supply chain. In our procurement activities, we aim to conduct responsible procurement in accordance with the following policies based on this basic concept.

1．Compliance with Laws and Regulations
In its procurement activities, the Kureha Group complies with the relevant laws, regulations, social norms, and spirit of the relevant laws and regulations of each country and region in which it operates.

2. Fair Procurement Activities
The Kureha Group conducts fair and open procurement activities both domestically and internationally. We prohibit restrictions on free competition and bribery, and ensure transparency of procurement activities through appropriate procedures.
We select our suppliers fairly, based on a rational economic analysis of quality, price, supply capability, technical capability, and other capabilities and reliability, as well as initiatives to improve the global environment and social sustainability.

3. Cooperation with suppliers
The Kureha Group collaborates with suppliers to continually maintain and improve quality, preserve the global environment, and respect human rights.

Kureha Group Supply Chain CSR Guidelines

GRI 2-23

To ensure that corporate social responsibility (CSR) is practiced throughout its supply chain and to help develop a sustainable society, the Kureha Group established the Kureha Group Supply Chain CSR Guidelines on April 1, 2024, as a set of CSR standards for it and its suppliers to follow. As a vital matter for its business, the Group periodically verifies measures taken by suppliers, and takes those opportunities to enhance communication with them and redeliver the Kureha Group Supply Chain CSR Guidelines and the Kureha Group Procurement Policy, recognizing the importance of having suppliers understand and comply with its procurement-related policies.

Items, points to comply with, and main topics of the Kureha Group Supply Chain CSR Guidelines
№ Item Points to comply with Main topics
1 Respecting the Laws and Internationally Recognized Standards Companies must respect internationally recognized standards in addition to complying with the laws and regulations of their home country as well as countries and regions where they conduct business. Respecting the laws and internationally recognized standards
2 Human Rights and Labor Referring to international human rights standards, such as the UN’s International Bill of Human Rights and the International Labour Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work, the Group respects the rights of labor. Prohibiting forced labor, prohibiting child labor, working hour management, prohibiting discrimination, freedom of association, adequate wages and allowances, prohibiting inhumane treatment
3 Health and Safety Companies must identify and assess risks related to occupational safety and maintain safety through appropriate design, engineering, and administrative controls. Occupational safety, emergency preparedness, occupational injury, worker health management
4 Environment Companies must actively address environmental problems such as resource depletion, climate change, and pollution, as well as address regional environmental problems considering the health and safety of its relevant local community. Reducing energy consumption and greenhouse gas emissions, water management, effective utilization of resources and waste management, chemical substance management, biodiversity conservation
5 Fair Trading and Ethics Companies must comply with laws and regulations of countries and regions they conduct business and internationally recognized standards and conduct business activities based on high ethical standards. Preventing corruption, prohibiting inappropriate provision and improper benefit, fair information disclosure, respecting intellectual property, conducting fair business, protecting whistleblowers, responsible minerals procurement
6 Quality and Safety Companies must ensure the safety and quality and provide correct and accurate information on provided products and services. Ensuring product safety, providing accurate information on products and services
7 Information Security Companies must prevent leaks of confidential information and personal information, and enhance information security. Defense from cyber attacks, protecting personal information, preventing leak of confidential information
8 Business Continuity Planning Companies must make preparations to ensure that they can quickly resume business activities in order to fulfill their responsibility of supply in the event that the company or a business partner becomes a victim of such as a large-scale natural disaster. Developing and preparing a business continuity plan
9 Coexistence with Local Communities In addition to respecting the history, culture, traditions, practices, and religion of countries and regions throughout the world, companies must actively work to communicate with the residents of countries and regions they conduct business and contribute to the development and sustainability of local communities. Coexistence with local communities
10 Constructing Management System Companies must construct a management system to achieve the various items in these guidelines. Establishing a management system, supplier management

Kureha Group Supply Chain CSR Guidelines

Participation in the "Declaration of Partnership Building" Initiative

Kureha endorses the aims of the "Conference on Promoting Partnership Building for the Future" promoted by the Cabinet Office and the Small and Medium Enterprise Agency, and announced a "Declaration of Partnership Building" in 2024. Kureha aims to build new partnerships by promoting cooperation, coexistence, and co-prosperity with our business partners.

Declaration of Partnership Building

"Declaration of Partnership Building" portal site (Japanese Only)

Kureha Corporation's "Declaration of Partnership Building" (Japanese Only)

Management Structure

The Kureha Group promotes "responsible procurement" through the Human Rights Subcommittee, a subordinate body of the Sustainability Coordination Committee. The Sustainability Coordination Committee is chaired by a director or executive officer. The Human Rights Subcommittee is composed of departments related to human rights issues identified in our human rights policy and oversees efforts to respect human rights, including human rights due diligence in the supply chain, and formulates annual plans and manages progress. Progress and results are reported to the Sustainability Coordination Committee for appropriate supervision by management.

Target(s) and What We Have Done/Are Doing

KPI Companies subject to the survey FY2024
Results
CSR survey coverage rate Kureha’s suppliers1 85%
Kureha’s contract manufacturers2 93%
  • 1
    The CSR survey coverage rate is the percentage of the value of procured items in fiscal 2023 from suppliers that have completed the survey to the total value of procured items in fiscal 2023.
  • 2
    The CSR survey coverage rate is the percentage of contract manufacturers surveyed compared to the total number of contract manufacturers with stable business relationships.

Initiative(s)/Activity(ies)

GRI 308-2

Green Procurement

Kureha procures raw materials based on the Green Procurement Guidelines to promote the use of products and raw materials that are safer and have less environmental impact. The Guidelines are updated as necessary to comply with environmental laws and regulations. When selecting new suppliers, we evaluate them based on our internal criteria and make decisions based on our overall judgment while adhering to the intent of the Green Procurement Guidelines. When necessary, we conclude a Basic Sales Transaction Agreement with the supplier.

Green Procurement Guidelines (Japanese Only)

Supply Chain CSR Survey

GRI 2-29, GRI 407-1, GRI 408-1, GRI 409-1, GRI 414-2

Kureha has been periodically surveying its suppliers since fiscal 2017 to ascertain their status of CSR promotion. Target suppliers were selected by field based on transaction size and number of years of transactions, and a check sheet prepared by our company was sent to them, collected, and evaluated. From fiscal 2024, the purpose of the surveys was changed to that of confirming compliance with the "Kureha Group Supply Chain CSR Guidelines," and a newly created questionnaire was used to conduct the survey. In addition to suppliers, we now also survey contract manufacturers.

In fiscal 2024, we asked 40 suppliers to formally agree to the guidelines and complete a questionnaire, and 38 (95%) responded. Kureha confirmed which suppliers had room for improvement with respect to the guidelines, and provided them with feedback and requests for improvements.

Kureha also surveyed 29 contract manufacturers that if regularly depends on, and 27 (93%) responded. Kureha confirmed which contract manufacturers needed to improve, provided feedback, and requested improvements.

Kureha is verifying whether improvements have been made based on response of later CSR surveys and other methods.

In addition, Kureha used information disclosed by the suppliers and contract manufacturers that did not respond to the survey to confirm that they had no major problems.

This activity will be gradually expanded to suppliers of the entire Kureha Group.

On-site Audits of Business Partners

Kureha conducts on-site audits of suppliers in Japan and overseas to ensure that purchasing operations are carried out in accordance with the Kureha Group Procurement Policy.

Responsible Mineral Sourcing

As part of our commitment to responsible mineral procurement, Kureha Group conducts investigations that trace the supply chain of target minerals (gold, tin, tungsten, tantalum, cobalt, and mica) back to the source at the request of our customers. As a result of the investigations to date, no minerals suspected of being related to conflict or human rights abuses have been found to be used in our products.