Procurement Policy
The Alfresa Group’s Procurement Policy
Among the Alfresa Group’s Principles, Our Philosophy and the Basic Sustainability Policy both state that “we create and deliver a fresh life for all.” Making this pledge a reality requires that we pursue sustainability initiatives encompassing the environment, society, and governance across the supply chain. The Alfresa Group’s Procurement Policy outlines the Alfresa Group’s basic policy for promoting sustainability throughout our supply chain and practicing responsible procurement based on our Principles and Basic Sustainability Policy.
1. Scope
This policy applies to all of the Alfresa Group’s procurement activities. We ask our suppliers to endorse this policy and collaborate with us on sustainability initiatives.
2. Compliance with Laws and Regulations, and Respect for International Norms
We comply with the applicable laws and regulations of each country or region as well as with our internal rules when conducting procurement activities. Also, we carry out procurement activities with integrity in order to gain trust from the international community, following international norms such as the United Nations International Bill of Human Rights, the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work, the United Nations Guiding Principles on Business and Human Rights, the Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises, and the United Nations Global Compact.
3. Management System
To realize this policy, we are establishing a management system covering the entire Alfresa Group. The Board of Directors of Alfresa Holdings Corporation oversees adherence to this policy and supervises its related initiatives.
4. Implementation of Procurement Due Diligence (Risk Identification and Response)
We continually identify and respond to sustainability risks throughout our supply chain.
5. Main Sustainability (Social, Environmental, and Governance) Issues Related to Procurement Activities
1) Respect for human rights and occupational health and safety
We strive to ensure that the human rights of all people are respected and that child labor, forced labor, and all forms of discrimination do not occur, and we work together with suppliers in this effort. We provide fair working conditions to workers and ensure occupational health and safety. We do not procure conflict minerals* that threaten human rights.
* Conflict minerals are minerals produced in areas where conflicts cause human rights violations and environmental destruction, potentially funding armed groups or terrorist organizations.
2) Quality, cost, and supply of products and services
We pursue stable and continuous procurement while prioritizing appropriate quality, pricing, and safety, and we work together with suppliers in this effort. We also ensure the proper management of product quality and safety information considered necessary by customers and users.
3) Fair transactions
We open our doors widely to suppliers, striving to maintain equitable relationships, and conduct fair transactions as partners in a relationship of mutual respect.
4) Proper information management
We are committed to the responsible management of all information obtained through procurement activities to prevent leakage, alteration, loss, or damage of confidential information, and we work together with suppliers in this effort.
5) Consideration for the environment
In alignment with our Environmental Policy, we reduce greenhouse gas emissions based on international scientific evidence, conserve natural environments, use resources effectively, and adequately manage substances hazardous to the environment and human health, while cooperating with suppliers in these efforts.
6. Strengthening Engagement (Mutual Understanding and Trust) with Suppliers, Pursuing Co-existence and Co-prosperity, and Addressing Risks
We build long-term relationships of trust with suppliers, cooperating to achieve continuous and constructive value creation. We also undertake coordinated responses to address risks.
7. Education, Awareness, and Dissemination
We conduct appropriate education and training for all of our officers and employees to ensure that this policy is firmly established throughout the Alfresa Group. We also explain and provide necessary support so suppliers understand and cooperate with this policy.
8. Reporting on Sustainability Promotion Initiatives in Procurement
We regularly report on procurement initiatives based on the policy via our website and various reports.
Alfresa Holdings Corporation has approved this policy.
Established: April 1, 2024
Ryuji Arakawa
Representative Director & President
Alfresa Holdings Corporation