Sustainable Procurement Measures
Basic Policy
Alps Alpine engages in procurement activities with around 1,000 suppliers worldwide. We work alongside suppliers in each region to improve sustainability across the entire the supply chain.
At business policy briefings for suppliers, we ask suppliers to cooperate with CSR assessments, environmental checks, responsible minerals sourcing checks and BCP checks, and we work together with suppliers to ensure responsible procurement activities.
CSR Assessments
To confirm compliance with the CSR guidelines, we requested our major suppliers to conduct a self-assessment starting in fiscal 2022, with scores classified and evaluated as S, A, B, or C. No serious violations were identified in fiscal 2022 that would warrant a rank of C. We conducted a fact-finding survey for suppliers ranked B or lower using a corrective action requirements sheet. When we begin working with them, we also ask new suppliers to complete a self-assessment. In fiscal 2022, we conducted this assessment for three new suppliers that came on board.
FY2022 Status of CSR Assessments
Coverage: Main suppliers (88 companies accounting for the top 80% of the value of purchases in FY2021)
Response: 82 suppliers (93%)
| Rank | Assessment score | FY2022 result |
|---|---|---|
| S | 100%or more | 44% |
| A | 85%or more | 42% |
| B | 70 - 84% | 6% |
| C | 70% or lower Or, at least one of 12 important management criteria was not achieved |
0% |
Promotion of Green Procurement
Alps Alpine engages in “green” procurement to be able to provide environmentally friendly products to customers. This involves procuring materials and parts containing no hazardous substances in line with our Green Procurement Standards. In addition, suppliers for our electronic components segment undergo an environmental evaluation to assess their environmental efforts, and an evaluation of parts and materials to confirm that supplied items do not contain substances specifically prohibited by Alps Alpine. In fiscal 2022, we confirmed the conformance of an additional 36 suppliers.
The Green Procurement Standards are revised annually to reflect applicable legislative, regulatory or other changes. Annual reviews of materials and parts manufacturing bases are also carried out as part of ongoing improvements.
Whenever changes are made to the Green Procurement Standards, information is shared with suppliers via the supplier portal.
| Selection Standards for Green Procurement | Standards for selection of suppliers (standards for environmental evaluation) – Evaluation of environmental conservation activities |
|---|---|
| Standards for selection of materials purchased (standards for evaluation of parts and materials) – Evaluation of individual items purchased |
Response to Procurement Risk
The Alps Alpine Group has set up international procurement offices (IPOs) to carry out procurement activities at production bases in Japan, China, South Korea, Malaysia, Mexico, Ireland, Germany, the Czech Republic, India, Thailand, and Hungary. Procurement entails obtaining at the right time the required volume of materials and parts that are superior in quality, cost, delivery, and environmental performance. It is therefore essential that we procure from suppliers we can trust. For that reason, the Alps Alpine Group makes efforts to build trust-based relationships.
The supply chain is also affected by natural disasters, accidents, labor disputes, bankruptcies, and other occurrences, with extensive repercussions for procurement activities as well as for such operations as logistics. The Alps Alpine Group regularly updates its supply chain database and is currently establishing structures for globally centralizing information and responding in a timely manner when procurement risks do eventuate.
Communication with Suppliers
Alps Alpine strives to strengthen partnerships with suppliers as we value coexistence and co-prosperity through trusting relationships. We hold business policy briefings around the world to explain our production and sales situation and purchasing policy, and to commend suppliers that have cooperated with improvements in the areas of quality, cost and delivery. At briefings, we also ask suppliers for their support in dealing with procurement risks and CSR-related issues. In fiscal 2022, a briefing was held in May at Alps Alpine Headquarters because of the COVID-19 pandemic. It was attended by 265 people, including online participants. Alps Alpine will continue efforts to strengthen cooperation with suppliers and together advance activities in the belief that such cooperation is vital for the realization of sustainable procurement.
Cooperation with Industry Groups
Alps Alpine agrees with the stance of the Japan Electronics and Information Technology Industries Association (JEITA) and has been participating in the activities of JEITA's Responsible Minerals Trade Working Group since its establishment. We also participate in JEITA’s Procurement Committee.
Buyer Training
To assist the implementation of responsible procurement activities in keeping with our Corporate Philosophy, Alps Alpine provides training for buyers who actually carry out the procurement activity, covering a variety of material, including our fundamental approach to corporate social responsibility, the social environment and the above Basic Policy on Sustainable Procurement. Around 200 people attended buyer training in May 2022.