Purchasing and Procurement

We 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.

Procurement Policy

Procurement Policy

  1. We select our suppliers fairly, based on a rational economic analysis of quality, price, supply stability, after-sales service, technical capabilities, and CSR initiatives
  2. When selecting suppliers, we open a wide range of contact points regardless of existing suppliers or past performance
  3. We comply with relevant laws when making purchases
  4. We aim to build relationships of fairness, cooperation, and equality, and improve mutual understanding and trust with all of our suppliers
  5. We work to maintain and improve the quality of purchased products in collaboration with suppliers
  6. We stand against corruption by refusing any private or personal relationships of interest with our suppliers

CSR Procurement Guidelines

CSR Procurement Guidelines

1. Human Rights and Labor

  1. Respect basic human rights
  2. Do not engage in unfair discrimination with respect to employee compensation, benefits, hiring, etc.

2. Occupational Health and Safety

  1. Identify dangerous/hazardous factors and take appropriate measures
  2. Formulate emergency response measures and familiarize employees with them

3. Environment

  1. Endeavor to use raw materials and parts that have minimal environmental impact
  2. Properly manage specified chemical substances
  3. Properly dispose of industrial waste

4. Fair Trade

  1. Do not engage in the improper giving or receiving of benefits
  2. Do not abuse positions of authority to disadvantage others
  3. Provide accurate information about products, services, and business methods
  4. Observe laws, social norms, and company regulations applicable to business activities

5. Product Quality and Safety

  1. Build and utilize a quality management system

6. Information Security

  1. Properly manage confidential and personal data

7. Contribution to Society

  1. Engage in activities that contribute to the development of the international community and local communities

Goals and Vision

  • Work with suppliers to purchase raw materials and other goods that are safer and have less environmental impact from the perspective of green procurement.
  • From the perspective of CSR procurement, encourage suppliers to improve their CSR initiatives if any shortcomings are found.

Fiscal Year 2022 Plan

  • Survey and evaluate new suppliers based on the Green Procurement Guidelines and select them based on the results.
  • Conduct CSR survey of suppliers, compile survey results, and provide feedback.

Fiscal 2022 Performance and Outcomes

  • Implementation rate of survey and evaluation of new suppliers based on the Green Procurement Guidelines: 100%; Selection rate based on survey and evaluation results: 100%.
  • All survey forms were collected, including those from suppliers who had not responded in the previous survey, and the survey results were fed back to each supplier.

Procurement Activities, Selection of Suppliers

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.
In addition, to ensure that our purchases are carried out in accordance with our Procurement Policy and CSR Procurement Guidelines, we conduct on-site audits of our suppliers in Japan and overseas to check their CSR activities.


CSR Survey

At Kureha, since fiscal 2017 we have been periodically conducting surveys of our suppliers to get a grasp of their CSR promotion, with the aim of reducing CSR risk in our supply chain. Companies are selected by product segment based on the volume and length of transactions, and survey forms prepared by Kureha are sent and collected for evaluation.
The fiscal 2022 survey targeted 13 companies that were rated as inadequate in their CSR promotion status in the previous five surveys, 2 companies that did not respond in the previous survey, and 9 new business partners. Survey forms were sent out and collected from all companies.
As a result, 12 of 24 suppliers (50%) were found to have an adequate CSR promotion status, while the remaining 12 suppliers were found to need further improvement in several areas, including human rights and labor. We will provide written feedback of the evaluation results to these suppliers to request improvements, and will continue to communicate with them in the future.

Main survey items on the check sheet

Evaluation Item Contents
General CSR and corporate governance CSR Promotion Policy, Department in charge of CSR, Legal code and compliance training, Whistleblower Hotline, Prohibition of prejudicial treatment of whistleblowers, Understanding the current status of suppliers
Human rights and labor Human Rights Policy, Prohibition of child and forced labor, Prohibition of unfair low wages/long working hours, Prohibition of discrimination against employees, Support for employees' career development, Right to labor-management negotiation, Understanding the current status of suppliers
Occupational safety and health Management system, Ensuring employee safety, Understanding the current status of suppliers
Environment and biodiversity Management system, Energy conservation, greenhouse gas reduction, and waste reduction initiatives, Biodiversity conservation, Green procurement and purchasing, Understanding the current status of suppliers
Fair trade, ethics, and conflict minerals Non-involvement in anti-social forces, Non-involvement in anti-competitive activities, Prohibition of inappropriate profit sharing, Disclosure of company information, Compliance with export laws and regulations, Conflict mineral surveys, Understanding the current status of suppliers
Quality and safety Management system, Disclosure of product and service quality and recall information, Response to customer inquiries, Understanding the current status of suppliers
Intellectual property and information security Respect for intellectual property, Information security, Protection of personal information, Prevention of leakage of confidential information, Understanding the current status of suppliers
Contribution to society Social activities, Understanding the current status of suppliers
Business continuity management Action plan for emergency contingencies, Improvement of risk response and recovery capabilities, Require suppliers to prepare a business continuity plan, Understanding the current status of suppliers

Responsible Procurements

The Kureha Group conducts conflict mineral surveys in cooperation with suppliers and customers as part of its efforts to source minerals responsibly.
In addition, in response to the U.S. Uyghur Forced Labor Prevention Act, Kureha confirms that none of its products or materials are manufactured in or procured from the Xinjiang Uyghur Autonomous Region.