Relations with Suppliers

Procurement

 The Alps Alpine Group maintains fairness in its dealings with suppliers and builds relationships of cooperation and mutual trust based on underlying sincerity.
 Our procurement policy is to help bring about sustainable development with attention to safety and environmental concerns.

 

Promoting Green Procurement

Our Green Procurement Standards are deployed globally in Japanese, English and Chinese

Our Green Procurement Standards are
deployed globally in Japanese, English
and Chinese

 The Alps Alpine Group engages in “green” procurement to ensure that products supplied to customers are safe and environmentally friendly. It involves procuring materials and parts containing no hazardous substances from suppliers with established management systems. Suppliers are asked to follow our Green Procurement Standards and are assessed through “environmental corporate evaluations” looking at their environmental efforts, as well as “material evaluations” checking that substances specifically prohibited by the Alps Alpine Group are not present in materials or parts. Evaluation data is shared through the Alps Green Procurement System (Green-AXIS), accessible worldwide via the Internet.
 The Green Procurement Standards are reviewed annually based on applicable legislative, regulatory or other changes. Annual reviews of materials and parts manufacturing bases are also carried out as part of ongoing improvements.


Green Procurement Standards[PDF]

Green Procurement Standards Appendix[PDF]

Response to Conflict Minerals

 Human rights violations by armed elements in the Democratic Republic of the Congo and neighboring countries and the intensification of conflict due to armed groups being financed through the sale of minerals obtained in the region are major issues. In the United States, Section 1502 of the Dodd–Frank Wall Street Reform and Consumer Protection Act, which came into effect in January 2013, defines these minerals as “conflict minerals” and obligates corporations listed on U.S. stock exchanges to disclose information related to the use of conflict minerals in their products with the ultimate goal of eradicating the use of minerals that are “financing conflict.”
 Alps Alpine, while not obligated by the act, understands and agrees with the purpose of the act from a human rights perspective and intentionally avoids employing as materials in its products conflict minerals that are used to finance armed forces from the Democratic Republic of the Congo or neighboring countries that engage in inhumane conduct.
 Additionally, Alps Alpine concurs with the philosophy upheld by the Japan Electronics and Information Technology Industries Association (JEITA) and has been participating in, and conducting activities with, JEITA’s Responsible Minerals Trade Working Group since its establishment. The Company also conducts policy briefings for its suppliers each April in which it shares information regarding important matters and trends related to mineral procurement.

Response to Procurement Risk

 The Alps Alpine Group has set up international procurement offices (IPOs) to carry out procurement activities at production bases in 21 locations in nine countries: Japan, China, South Korea, Malaysia, Mexico, Ireland, Germany, the Czech Republic, and India, as well as in Taiwan and Hong Kong. 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 the Group procures from suppliers it can trust. For that reason, the 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 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.
 The Alps Alpine Group continuously holds policy briefings with its suppliers. At these briefings, it requests supplier cooperation with its approach to addressing procurement risks. The Group believes that responding to such risks is not possible without the support of suppliers and it will continue efforts to strengthen that cooperation going forward.

CSR Procurement

 As part of the global community, the Alps Alpine Group views taking action on issues such as environmental protection and human rights through the supply chain as an important approach. Basic business agreements are entered with suppliers as we aim to bring about a sustainable society.

Code of Conduct for Suppliers
  1. Take sufficient steps to ensure employee health and safety and provide safe and hygienic workplaces
  2. Prohibit child labor, which runs counter to International Labour Organization regulations and national laws
  3. Prohibit forced labor
  4. Prohibit discrimination based on race, sex, language, religion, politics, status and assets.
  5. Ensure compliance of wages, working hours and other working conditions with International Labour Organization regulations and national laws
  6. Spread awareness about not using minerals or other resources used to finance organizations or armed forces that engage in inhumane conduct in conflict areas as raw materials
  7. In the event of an accident or natural disaster, work to quickly restore and resume operations, including within the supply chain
Environmental Protection Policy for Suppliers
  • Undertake activities to protect the environment, for example through energy and resource conservation and recycling
  • Comply with environmental laws applicable in Japan and overseas