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 management departments at headquarters and each domestic business site conduct periodic self-inspections of procurement operations and compliance education to ensure thorough legal compliance. In fiscal 2025, the headquarters procurement department visited 15 sites and conducted compliance inspections. Meanwhile, procurement departments at overseas affiliates also worked on developing procurement-related rules and standards in line with local laws and regulations, conducting operational audits at 9 sites in China and, with the addition of India, at 13 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: Note) is a critical priority in our procurement activities, and the procurement management department at our headquarters maintains rigorous monthly monitoring of compliance status. Specifically, we review acceptance data from Fuji Electric and its domestic consolidated subsidiaries to verify legal compliance in transactions and provide guidance to relevant personnel whenever necessary.
Furthermore, regarding the SME Transactions Act (Amended Subcontract Act), we have completed necessary measures to ensure full legal compliance, including the implementation of mandatory e-learning programs for all employees.
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SME Transactions Act:
Act Against Delay in Payment of Fees, etc. to Small and Medium-sized Entrusted Business Operators in Manufacturing and Other Specified Fields (Abbreviation: 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, establishing four mandatory obligations and eleven prohibited items for contracting enterprises.
Employee Education
In fiscal 2025, we provided training on the Subcontract Act, internal controls, and procurement CSR to 374 people at 7 sites across Japan. In addition, following on from last year, we implemented e-learning on the Subcontract Act (attended by approximately 18,200 people) to instill awareness of compliance. In this training, key revision points regarding the SME Transactions Act effective January 1, 2026 were publicized. In addition, the Legal Compliance Working Group, which aims to develop compliance experts, engaged not only in classroom learning but also in practical education that included exercises.
Meanwhile, at overseas bases, our China/Asia IPO (Note) provided training on "internal control" to 9 sites in China and, with the addition of India, 12 sites across Asia through business inspections. Note
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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 targeting procurement department staff in Japan to ensure thorough awareness. In fiscal 2025, we conducted education at two factories, with 103 employees participating.
In addition, toward decarbonization in the supply chain, we newly established a "Decarbonization Working Group" consisting of 23 sites including affiliated companies, and conducted education on GHG reduction and CFP calculation.
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 on our public website. 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 ethical violations or enable their early discovery, while receiving feedback from our suppliers to build reliable business relationships.
