Sustainability

Promoting CSR Activities with Suppliers

Philosophy concerning Promoting Sustainable Procurement in the Supply Chain

The Fuji Electric Code of Conduct stipulates that we “Respect and value our business partners,” and we believe it is important to be a company with high social value by building a supply chain that supports a sustainable society.

One of the commitments under Fuji Electric’s Environmental Vision 2050 is to “realize a recycling-oriented society.” From the perspective of global environmental protection, we actively promote green procurement by sourcing materials with low environmental impact from suppliers who actively engage in environmental protection activities.

Initiatives for Achieving Sustainable Procurement with Our Suppliers

We are expanding “Fuji Electric’s CSR Procurement Guidelines” globally, while also aiming to build responsible supply chains with our suppliers in Japan and abroad. These Guidelines were formulated for the purpose of sharing our concept of CSR with our suppliers and having them put it into practice.

We ask our suppliers to conduct the self-assessment of CSR procurement in accordance with the Fuji Electric CSR Procurement Guidelines. This selfassessment helps us see a clear picture of CSR initiatives in our supply chain. Furthermore, in providing their answers to the questions in the assessment, our suppliers gain a better understanding of Fuji Electric’s CSR philosophy and what we would like them to comply with and practice. If any supplier seems to need more efforts in terms of CSR, we work with them so that they will achieve a higher level of CSR, thereby reducing risks involved in CSR in a supply chain.
From October 2022, we require new suppliers to conduct a CSR self-assessment to understand and evaluate the status of their CSR efforts.

PDCA for Self-Assessment of CSR Procurement

Fuji Electric’s CSR Procurement Guidelines

From the perspective of reducing CSR risks in the supply chain, we estblished the "Fuji Electric CSR Procurement Guidelines" as a summary of the approach and specific examples of initiatives that we would like our suppliers to observe and put into practice. In formulating the guidelines, we referred to the code of conduct of the Responsible Business Alliance (RBA), a corporate alliance that promotes CSR in global supply chains, and the "Responsible Business Conduct Guidelines" of the Japan Electronics and Information Technology Industries Association (JEITA).

Green Procurement Guideline

In promoting green procurement, we established our Green Procurement Guideline and confirmed the following two points with our suppliers.

In order to properly manage chemical substances throughout the supply chain, we request the cooperation of our suppliers in using the Green Procurement Guideline to investigate chemical substances contained in products. Furthermore, we recommend management based on the “Guidelines for the Management of Chemicals in Products” established by the Joint Article Management Promotion-consortium (JAMP), and request that JAMP’s chemSHERPA* be adopted as a common management tool to facilitate the investigation of substances contained in products.

Support for Raising Awareness among Suppliers

Implementation Status of CSR Procurement Self-Assessment

We evaluate and analyze the sustainability initiatives of our suppliers for the purpose of engagement with them and risk management.
In fiscal 2023, we asked 783 major suppliers (667 domestic and 116 overseas), including those from overseas, which account for the top 80% of our purchasing history over the three years from fiscal 2020 to 2022, out of the total number of approximately 6,200 suppliers in the group, to cooperate in self-examination of their initiatives based on the Fuji Electric CSR Procurement Guidelines and to investigate risks in areas such as Human Rights and Labor, Health and Safety, Environment, Fair Trade and Ethics, Quality and Product Safety, Information Security, and business Continuity Plan. As a result, we interviewed 16 companies that were deemed to require improvement to deepen their understanding of CSR and confirmed that their situation has improved. In addition, we have made it mandatory for new suppliers to conduct a CSR self-assessment from October 2022, and are conducting a thorough evaluation, including the status of CSR initiatives.
We will continue to deepen communication with our suppliers and work with them to build a supply chain that supports a sustainable society.

Numbers of companies that conducted self-assessment

Assessment Results (After Improvement)

Communication with Business Partners

Procurement Policy Explanatory Forum

Once a year, we invite suppliers who have made significant contributions to our business to attend a “business policy explanatory forum.” We use this as an opportunity to further deepen relationships of mutual trust with suppliers in recognition of the valuable support we receive from them.

In fiscal 2023, we recognized 94 suooliers as best partners, and also held an awards ceremony for suppliers who have achieved particularly outstanding results for our business.

Once a year, each Fuji Electric factory and business office holds a “procurement policy explanatory forum” for its local suppliers. In addition to our key procurement policies, we share information on our sustainable procurement activities by communicating our policies and initiatives concerning the environment, quality, compliance, and so forth.

Procurement Policy Briefing

Every year, each factory and business site holds a purchasing policy briefing session for the local suppliers. In addition to sharing our CSR procurement guidelines, we communicate our key procurement measures, as well as our policies and initiatives on the environment, quality, compliance, and other areas, thereby enhancing the effectiveness of sustainable procurement activities.

Environmental Communication

We are enhancing activities with our suppliers in the aim of achieving a sustainable society through the entire supply chain. As part of these efforts, in fiscal 2023, we conducted on-site audits to verify the results of CSR procurement self-assessments at two of our suppliers, confirming that their "environmental" initiatives were in good condition. In fiscal 2024, we plan to hold six information sessions for suppliers on the Fuji Electric Environmental Vision, three in Japan and three overseas (China and Asia), with participation from over 800 suppliers. We will continue to work together with our suppliers to promote environmental activities.

Awareness-raising Activities for Suppliers

Each domestic factory and business site holds CSR study sessions for suuliers every year. In fiscal 2023, study sessions were held for a total of 601 suppliers at all nine locations. In addition, CSR education videos published by JEITA were shared with 783 suppliers in an effort to promote and spread understanding of responsible business conduct.

Response to Conflict Minerals

Fuji Electric has a policy of not supporting acts that indirectly violate human rights through its supply chain. Based on this policy, Fuji Electric and its affiliates have worked to ban the use of minerals associated with the funding of armed insurgents, human trafficking, forced labor, child labor, abuse, war crimes, and other human rights violations. These minerals include tin, tantalum, tungsten, gold, cobalt, mica and its derivatives produced in the Democratic Republic of the Congo or areas of conflict in surrounding countries.

In February 2014, we became an official member of JEITA's Responsible Minerals Trade Working Group. In this role, we promote effective activities in collaboration with industry groups, including by collecting the latest information of RMI on conflict minerals.

Rejecting Any and All Ties with Antisocial Forces

Fuji Electric continues to reject any and all ties with antisocial forces. Prompted by the growing sophistication of financing techniques adopted by antisocial forces in recent years, the government of Japan has announced specific guidelines to combat these techniques. Fuji Electric and its associates have concluded memoranda of understanding concerning the rejection of ties with antisocial forces with all new and continuing suppliers in Japan. At the same time, we respond to requests from customers, such as those asking us to conclude similar memoranda, in good faith.

Occupational Health and Safety in On-Site Construction Work

Fuji Electric outsources on-site construction and installation of power generation facilities and industrial equipment to external professionals. The Company undertakes various activities recognizing its responsibility in the management of occupational health and safety with respect to construction work.

Promoting Health and Safety among On-site Staffs

Danger prediction meetings and tool box meetings are held to discuss and predict areas of potential risk, and clarify safety requirements for each work process. In addition, inspections of tools and equipment, onsite safety patrols and other related activities are conducted on a daily basis.

Moreover, safety deliberation meetings with construction companies are organized for large-scale projects. Ongoing steps are taken to prepare occupational health and safety materials as well as to distribute occupational health and safety reports. At the same time, special education and training programs are regularly implemented for the handling of hazardous substances including hydrogen sulfide.

Guidance Related to Social Insurance Enrollment

In accordance with the amendment of Enforcement Guidelines to the Construction Business Act　in Japan, companies are required to instruct subcontractors to enroll in social insurance programs such as medical insurance and pension plans for their workers as part of their responsibilities as a principal contractor and to promote public social security.

Fuji Electric has begun confirming the social insurance enrollment status of subcontractors, and creating a related database, as part of its responsibilities as a principal contractor, beginning with construction work outsourced from November 1, 2012. We select subcontractors and provide guidance based on this information.

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