CSR procurement initiatives

Basic Concept​

Moriroku Group has established the Moriroku Group Purchasing Policy with the aim of promoting sustainable procurement throughout the supply chain and fulfilling our social responsibility toward the realization of a sustainable society.​

Purchasing Policy of the Moriroku Group

We strive to strengthen partnerships with our business affiliates, who possess high-level products and technologies, by offering trading opportunities that are fair and open to all companies, and engage in socially responsible, sustainable procurement practices, in order to provide high-value products and services to our customers in a stable manner.​

  1. Compliance with laws, regulations, and social norms​
    • We comply with the laws, regulations and social norms of each country, and promote transparency in our procurement practices.​
  2. Fairness and equity​
    • We offer fair trading opportunities that are open to all companies.​
    • We select our business affiliates through fair and comprehensive evaluation of the following factors: quality, prices, delivery time, manufacturing capacity, supply stability, technological ability, environment performance, and soundness of management , as well as their social responsibility practices, such as human rights and environmental conservation.​
  3. Implementation of advanced technologies​
    • We actively implement advanced, high-level technologies and materials, in order to realize the innovation of the coming era.​
  4. Strengthening of partnerships​
    • We strive to strengthen partnerships with our business affiliates in consideration of products and services, in order to develop and provide high-value products and services.​
  5. Promotion of CSR Procurement Practices​
    • We strive to drive co-creation with our business affiliates, and promote socially responsible procurement practices that consider factors such as global environment conservation, respect for human rights, and the safety and health of workers in order to contribute to the sustainable development of society.

Moriroku Group CSR Procurement Guidelines​

We have established "Moriroku Group CSR Procurement Guidelines" on matters that we would like our suppliers to proactively address. We will promote sustainable procurement in cooperation with all suppliers.​

Initiatives

To enhance sustainability across the entire supply chain, the Moriroku Group promotes responsible procurement practices in cooperation with its suppliers. As part of these efforts, we have introduced mechanisms to assess our suppliers’ sustainability initiatives and encourage continuous improvement.

Supplier Questionnaire (SAQ) and Risk Assessment

In order to increase sustainability across the supply chain as a whole, the Moriroku Group performs risk assessments using questionnaires (SAQ) for business partners. Based on SAQ results, we evaluate
our business partners’ environmental, social, and governance actions and provide support for improvements to companies that we assess as high risk.

Examples of actions in the Production Division

  • Prior to the start of dealings with a new business partner, we undertake due diligence and an audit of the relevant partner in order to assess risk.
  • And before the start of mass-production transactions, we have business partners attend a briefing on our Purchasing Policy to ensure they are aware of our environmental and other policies, while also sharing with them our CSR Procurement Guidelines and exchanging agreements.
  • SAQ surveys are then implemented from the year after the start of mass production, thus creating a system to enable the tracking of business partners’ ESG initiatives.

Examples of actions in the Chemicals Division

  • We set a credit rank for new business partners and implement suitable transaction management on the basis of this.
  • For existing business partners, we make a selection for SAQ survey implementation based on standards such as corporate scale and sales amounts.
  • For companies that have a low SAQ result, we provide reference materials for use in making improvements and support the promotion of sustainable business activities.

Purchasing Policy Briefings by the Production Division

The Production Division holds Purchasing Policy briefings for our main business partners, and provides an explanation of our Sustainability Policy, CSR Procurement Guidelines, and Purchasing Policy in order to obtain understanding and endorsement on the part of these partners. These briefings were held in person up to FY2024, and as well as sharing the importance of sustainability, we handed out agreement documents and achieved a 100% collection rate. The briefings have shifted to an online format from FY2025, and we encourage many of our business partners to take part. Going forward, we will continue to deepen our cooperation with business partners and drive forward our construction of a sustainable procurement system.

Enhanced Supply Chain Management Through Visits to Business Partners

With the aim of increasing transparency and reducing risk across the supply chain, the Moriroku Group undertakes sustainability assessments and provides support through visits to business partners. A
particular aspect of this involves visiting the location of business partners that are assessed using SAQs to be at high risk in order to check the state of affairs from the perspectives of environment, society, and governance, and provide support for improvements.

Initiatives in the Production Business Division

The Production Business Division places strong emphasis on reducing environmental impact. We request our suppliers to report their CO₂ emissions and to submit reduction plans and roadmaps. Through these initiatives, we work collaboratively with our suppliers to promote efforts toward carbon neutrality and contribute to the realization of a decarbonized society.

Initiatives in the Chemical Business Division

In the Chemical Business Division, we visit existing suppliers when distributing the SAQ (Self-Assessment Questionnaire) and when providing feedback on evaluation results. Through these visits, we confirm the status of suppliers’ sustainability initiatives and promote continuous improvement through dialogue with our suppliers.