Relationship to SDGs

Relationship to SDGs
Goal Target
No. Initiative
8. Decent work and economic growth 8.7 Take immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labour, including recruitment and use of child soldiers, and by 2025 end child labour in all its forms
12. Responsible consumption and production 12.5 By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse
13. Climate action 13.2 Integrate climate change measures into national policies, strategies and planning
17. Partnerships for the goals 17.16 Enhance the Global Partnership for Sustainable Development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the Sustainable Development Goals in all countries, in particular developing countries

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SDGs pursued by Daifuku

SDGs pursued by Daifuku

KPI

KPI
Initiative Target
FY2021 FY2022 FY2023
Establish a CSR procurement system and expand range of operations Review CSR Procurement Standards and formulate new guidelines to be applied domestically and overseas

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Promotion Framework

We are promoting efforts in mainly the following systems for employees involved in procurement for the Corporate Department and the Operations Department.

1. For due diligence in the supply chain, we have established a Human Rights and Supply Chain Subcommittee comprising individuals appointed by the Sustainability Committee from the Procurement, Personnel, Legal Affairs, Sustainability and multiple other departments, and we are working to decisively carry out due diligence through internal policy involving CSR procurement and the creation of a framework.
2. We are working to share basic procurement policies and CSR procurement standards by making visits to business partners based on self-evaluations they have performed regarding CSR-related issues, like safety, environment, and quality.
3. The Production Compliance Committee, comprising individuals across departments, are implementing a legal training course for procurement specialists.


Basic Procurement Policy

Our principles for dealing with suppliers are as outlined below, in keeping with the Management Policy and Corporate Code of Conduct.

  • 1. Fairness, Impartiality
  • (1) We will open the door wide, both in Japan and overseas, and provide opportunities for free competition.
  • (2) We will select our business partners through the comprehensive evaluation of quality, technology development capabilities, economy and stable supply, as well as business conditions, etc.
  • (3) We will establish a relationship of mutual trust with all our business partners and endeavor to conduct fair, impartial and transparent transactions.
  • 2. Safety, Quality, Cost, Delivery
  • (1) We will pursue the creation of a safe and healthy working environment.
  • (2) We will pursue the optimization of procurement through the maintenance, improvement and enhancement of Q (quality), C (cost) and D (delivery).
  • 3. CSR Procurement
  • (1) We will conduct CSR activities to fulfill our social responsibility in terms of compliance, human rights, labor, environmental preservation, regional contribution and so on.

  • We have formulated the CSR procurement standards and will promote CSR activities with all business partners.

    *CSR Procurement - the activities carried out by an enterprise in the entire supply chain in the procurement of products and materials in cooperation with suppliers through the addition of CSR elements such as compliance, human rights, labor, environmental preservation and regional contribution to existing elements such as safety, quality, performance, price and delivery period.


    CSR procurement standards

    • 1. Safety
    • (1) To prevent labor accidents, etc., we will endeavor to secure the safety of employees, etc. by taking appropriate safety measures.
    • (2) We will assess the state of labor accidents and work-related illness and take appropriate measures for the prevention of recurrence.
    • (3) We will work on the creation of a safe and healthy working environment by placing top priority on ensuring safety and health at work.
    • 2. Quality, Cost, Delivery
    • (1) We will endeavor to maintain, improve and enhance quality, costs and delivery.
    • (2) We will secure appropriate quality and delivery and pursue optimal costs.
    • (3) We will endeavor to establish a production system that can provide stable supply and a crisis management system for incidents such as accidents.
    • 3. Compliance
    • (1) We will faithfully perform work according to laws and regulations, social norms and corporate ethics relating to all countries and regions in Japan and overseas.
    • (2) We will properly manage confidential information and personal information and thoroughly ensure information security.
    • (3) We will not provide benefits or facilities, including the grant and receipt of improper benefits and the demand for returns related to work.
    • (4) We will not have any relationships with antisocial forces, including transactions, by taking a resolute attitude against them, and will conduct fair business.
    • 4. Human Rights, Labor
    • (1) We will understand the cultures and customs of countries and regions and work on the creation of a company where the human rights of all people are respected.
    • (2) We will eliminate child labor, a poor environment, forced labor and working for long hours, and will work on the creation of a positive environment that is suitable for work.
    • (3) We will endeavor to develop human resources with the knowledge, technologies and skills necessary to support business activities in Japan and overseas.
    • 5. Environmental Preservation and Regional Contribution
    • (1) We will promote environmentally friendly procurement. *The Green Procurement Guidelines (formulated in November 2005) shall apply to procurement in Japan.
    • (2) We will conduct energy saving activities such as resource conservation and waste reduction.
    • (3) We will live in harmony with the communities and society where we conduct business activities.
    • (4) We will endeavor to participate actively in social support activities.



Action

Management and Production Trends Presentation

Each year we hold a Management and Production Trends Presentation, and invite top management from our suppliers such as manufacturers and trading companies, as well as business partners involved in processing, construction and installation, services, design, and software development. However, the fiscal 2020 presentation was cancelled due to the coronavirus.

Supplier Quality Development (S.Q.D.) Award
In fiscal 2003, Daifuku established a Supplier Evaluation System and launched the Supplier Quality Development (S.Q.D.) Award to commend outstanding goods-related suppliers (manufacturing subcontractors and goods purchasing), designers, construction and installation contractors, and others. In fiscal 2020, the S.Q.D. Award was presented to six suppliers from among a total of 208 companies.

Health and Safety Seminar for suppliers

Health and Safety Seminar for Suppliers

Each year we hold a Health and Safety Seminar for suppliers, as part of our ongoing efforts to eradicate occupational accidents throughout the Daifuku Group, including our business partners. At the seminar held in November 2019, Daifuku invited the top management from 158 key suppliers with the purpose of sharing the safety-related policies and information of Daifuku and its partner companies. The seminar reaffirmed the importance of safety and health management, and ensuring it is comprehensively carried out.

Safety Award System

Safety Award System
This is the fourth year of the Safety Award System, which Daifuku established in fiscal 2016 as a way of commending suppliers who have implemented model initiatives to prevent daily occupational accidents and create comfortable workplaces. We presented the Safety Award to one company each among our business partners in the construction, production, and procurement sectors. Following, the production sector partner introduced some of its health and safety management initiatives.

Supplier visitations

In fiscal 2019 we were able to achieve a participation rate of 56.7%, which was slightly below our target of 60%. This fiscal year it was difficult to draw up a plan for visitations to supplier located far away. In the next fiscal year, we will work with auditing and other departments to enable visits to the supplier of each business division.

Supplier visitations

A visit in progress

Daifuku promotes its CSR initiatives throughout the entire supply chain by encouraging an understanding of the need for CSR, such as through CSR surveys (self-assessment check sheets) for suppliers and by on-site monitoring.

Supplier Operations Verification System

Supplier Operations Verification System

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We 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.

Green procurement

Green Procurement

Daifuku believes that the manufacturing of environmentally friendly products is a mission it must achieve as a global company. Under the motto, "We will not buy, use, or sell any hazardous materials," we formulated our Green Procurement Guidelines in November 2005.

Action for fair and transparent transactions

fair and transparent transactions

In order to build fair and transparent relationships with business partners and conduct the transactions in accordance with healthy business practices, Daifuku has established internal rules that prohibit, excepting in certain circumstances, the reception of entertainment, gifts and other personal benefits or conveniences from business partners.