Sustainability
Fair Procurement
The Fuji Electric Code of Conduct stipulates that we “Respect and value our business partners,” and clarifies our commitment to fair and impartial transactions. We therefore endeavor to practice fair and impartial transactions in compliance with domestic and overseas laws and regulations in order to bolster trusting relationships and achieve mutual prosperity with our business partners.
Procurement Policy
Fuji Electric’s procurement activities adhere to our managerial principle of fair and impartial transactions. We are seeking domestic and international suppliers that are competitive in key areas, such as quality, price, delivery, service, and that emphasize sustainable procurement. Our goal is to extend relations with suppliers through open and fair and impartial trade, and maintain a high level of mutual trust, thus allowing for such a partnership to endure for an undefined period of time.
Strict Compliance with Procurement Laws and Regulations
Fuji Electric strictly adheres to principles of fair and equitable procurement in compliance with procurement-related laws.
The procurement leadership at our headquarters and domestic sites proactively conducts regular audits of procurement operations and provides compliance training to ensure strict adherence to laws and regulations. In FY2024, the Headquarters Procurement Division carried out compliance audits through on-site visits to 17 locations.
Our overseas affiliates’ procurement departments are likewise strengthening governance by developing procurement-related rules and standards in line with local laws and regulations. In addition, we conducted operational audits at nine sites in China and, with the addition of India, at a total of 12 sites across Asia.
Strict Compliance with the SME Transactions Act
Compliance with the SME Transactions Act (formally known as the "Act Against Delay in Payment of Fees, etc. to Small and Medium-sized Entrusted Business Operators in Manufacturing and Other Specified Fields"; effective Jan. 1, 2026) is a critical priority in our procurement activities. The procurement management department at our headquarters maintains rigorous monthly monitoring of compliance status. Specifically, we review transaction data from Fuji Electric and its domestic consolidated subsidiaries to verify legal compliance and provide direct guidance to relevant personnel whenever necessary.
Furthermore, we have completed all necessary measures to ensure full adherence to the Act (Amended Subcontract Act), including the implementation of mandatory e-learning programs for all employees.
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SME Transactions Act:
This law aims to ensure fair transactions between contracting enterprises and small to medium-sized entrusted business operators while protecting the interests of the latter. It establishes four mandatory obligations and eleven prohibited items for contracting enterprises.
Employee Education
In fiscal 2024, we provided training on the Subcontract Act, internal controls, and procurement CSR to 217 people at 4 sites across Japan. In addition, following on from last year, we implemented e-learning on the Subcontract Act (attended by approximately 16,000 people) to instill awareness of compliance. In addition, the Legal Compliance Working Group, which aims to develop legal compliance experts, not only conducted classroom learning but also engaged in practical education that included exercises.
Overseas, our China/Asia IPO* provided training on "internal control" to 9 sites in China and 12 elsewhere in Asia through business inspections.
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IPO: International Procurement Office
Procurement office that identifies excellent new suppliers in each country and provides procurement services to our overseas operations.
In order to raise awareness among procurement department staff in charge of CSR procurement practices, we conduct CSR education for procurement department staff in Japan to ensure thorough awareness.
In fiscal 2024, we conducted education at three factories, with 98 employees participating.
Whistle-Blowing Systems for Suppliers
Establishing a Partner Hotline
We have established the Partner Hotline as a channel for suppliers to report on our business practices in materials procurement and other activities. This whistle-blower system allows suppliers to report either to an external lawyer, or directly to Fuji Electric. It is designed to prevent illegal actions, or to enable their early discovery. It also enables us to receive feedback from our suppliers, and helps us to build relationships of trust with them.
