Supply Chain Management

In accordance with the Ebara Group Business Ethics Framework, we work to build stable relationships of trust with our suppliers as valued partners, and engage in fair and equitable transactions, in line with our procurement policy.

We request suppliers comply with our CSR Procurement Guidelines.

The EBARA Group will pursue mutual prosperity with suppliers by building a long term partnership through fair and equitable procurement activities. CSR (Corporate Social Responsibility) is one of the key focus areas of our corporate activities, with the aim of improving corporate value, achieving continuous growth and furthermore, creating value for society. To realize this, it is necessary for suppliers, as one of our stakeholders, to drive forward CSR activities in the same way as the EBARA Group. Therefore, we have compiled areas in which we need suppliers’ cooperation in the form of the Ebara Group CSR Procurement Guidelines below. We ask for all suppliers’ understanding and for suppliers to promote CSR activities within their own organizations. In addition, we request all suppliers to abide by this guideline.

We request strict compliance with the laws, regulations and social norms of the countries related to the transaction, in addition to the implementation of appropriate internal controls including whistle-blowing systems, in suppliers’ organizations.

We request that suppliers respect fundamental human rights by prohibiting all types of unreasonable labor (child labor, forced labor, etc) or discrimination of any type, and providing a healthy and safe working environment.

Regarding handling of conflict minerals, which have a high risk of human rights violations, you may see “Conflict Minerals Policy” below.

We also ask for suppliers’ to establish a business continuity management system (e.g., plans/countermeasures for emergency situations, etc.) and conduct training to prepare for emergency situations (disasters, accidents, etc.).

We request suppliers to continuously promote activities that reduce the impact on the global environment. Please refer to the “Ebara Group Green Procurement Guidelines” for further details.

In order to supply satisfactory products and services to our customers, we request suppliers to provide us with products and services which are based on safe and superior quality, competitive price, reliable delivery and a stable supply system.

We request suppliers to continuously improve their technical capabilities.

We request suppliers to provide and disclose information positively.

We request suppliers to establish a system to properly manage and protect personal and confidential information, and to prevent obtaining, using, disclosing and leaking such information illegally or unreasonably.

We request suppliers to respect intellectual property and not to infringe the intellectual property of others.

We request suppliers to prohibit obtrusion and bribery.

We request that suppliers refuse any relationship with antisocial forces.

The environmental destruction and inhumane acts against local residents by anti-government armed groups in the Democratic Republic of the Congo and its neighboring countries have become serious international issues. Minerals such as tin, tantalum, tungsten and gold being mined in these countries have become a source of financing for the armed groups: these minerals are called “Conflict Minerals.” In responding to the call of the international community for cutting off funding sources from such armed groups, companies are now required to conduct appropriate material procurement avoiding the use of these Conflict Minerals in their products. As a member of global society, we take the issue of Conflict Minerals very seriously and address it as one of the most important CSR issues. We will implement concrete measures, with the support of our suppliers, for material procurement that will not give any advantage to the armed groups engaging in human right abuses.

The EBARA Group periodically conducts a CSR procurement questionnaire to confirm the status of our valued business partners’ CSR activities. We will continue to work to reduce risks through continuous improvement activities through direct dialogues and visits to suppliers whose activities may need improvement.

In FY2022, a total of 1,240 of our major suppliers (796 domestic and 444 overseas) responded to the questionnaire. We will use that insight to continue our efforts to reduce operational risks.

We conduct human rights due diligence through the CSR procurement questionnaire.

In 2022, we received responses from 1,240 suppliers in Japan and overseas and confirmed that there were no human rights violations. We will continue to conduct detailed interviews and make visits with suppliers that are considered to have high potential risk and ask them to improve their activities and deepen their understanding of the EBARA Group’s Procurement Policy.

We will conduct continuous monitoring of potential risks in the supply chain and strive to promote appropriate procurement while reaffirming the importance of CSR procurement and human rights due diligence with our valued business partners.