Daifuku Report 2019

Comment from a procurement managerIn April 2017, we revised our Basic Procurement Policy and drew up CSR Procurement Standards. The Group’s CSR Action Plan has set a goal of visiting a total of 80% of our suppliers in 2020. We are working to make CSR better understood by business partners and to share information through visits and interviews. In doing so, we seek to build relationships based on mutual trust.Environment, Society, GovernanceDaifuku’s CSRNurture relationships of trust with our suppliersBasic stanceAs globalization progresses and economic activities are intricately linked to each other, we need to take social responsibility for not only our products and services, but also our supply chains. Daifuku’s Group Code of Conduct stipulates our trading policy and regulates the compliance of all our executives and employees. Under the Code, we share the Basic Procurement Policy revised during fiscal 2017 with our suppliers to manage supply chains in a responsible manner along with our CSR procurement standards.Promotion frameworkThis initiative is promoted mainly by the administrative division under the CFO & CRO and procurement personnel of each business operation. We take measures to share our procurement policies with our suppliers by visiting them based on the results of their self-evaluation of CSR related items. Through our cross-sectional organization called the Production Compliance Committee, we also provide lectures regarding statutory compliance in the fields of production and procurement for persons engaged in procurement. We also hold sessions to exchange information and share our policies with our suppliers.InitiativesSupplier Operations Verification SystemWe are using a system to confirm the operational status of our suppliers in an emergency as part of a scheme to strengthen our business continuity plan. In the event of an emergency, this system confirms damage status of suppliers and safety of personnel by e-mail. We use this system with the aim of ensuring quick recovery and return to normal operations of the whole supply chain by sharing information quickly and accurately.Health and safety seminars for top managementDaifuku holds annual seminars with the aim to eradicate workplace accidents in the whole supply chain. At the seminar held in November 2018, we invited the heads of 156 major suppliers and shared policies and information on safety at Daifuku and suppliers. We reconfirmed the importance of safety and health management and enhancement.For details, see our website:www.daifuku.com/sustainability/action/supplierManabu YamamotoAssociate Manager Business Administration Department38

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