Sustainability
Enhancement of Supply Chain Management
RIKEN TECHNOS constantly receives a wide range proposals and cooperation from business partners related to procurement and logistics. We comprehensively evaluate quality, price, stable procurement, technical capability, environmental, and safety initiatives and build partnerships based on mutual trust. This makes it possible for us to respond to changes in the market and environment.
We are promoting efforts to optimize the entire Group’s raw material procurement.
Accurately assessing social changes is also important for achieving sustainable business growth. That is why we select suppliers based on SDGs considerations and engage in activities for responding to changes in the logistics environment, such as the “2024 logistics problem.”
Procurement Policy
1. Fair Procurement Transactions and Selection
We deal with our business partners on an equal footing, offering fair and impartial access opportunities. Ordinarily, we purchase from multiple sources. During selection, whether in Japan or overseas, we consider competitive quality, price, and environmental friendliness from a global perspective.
2. Creation of Partnerships
We maintain good relationships with our business partners, respect human dignity, and avoid unfair discrimination.
3. Observance of Relevant Laws and Regulations and Self-management
We take care with confidential information from our business partners and procure with a focus on the social norms and relevant laws in each country.
4. Realization of a Sustainable Society
In our procurement, we actively use environmentally friendly raw materials and promote further switching over from conventional raw materials to contribute to achieving the SDGs and respond to climate change.
5. Respect for Human Rights and Elimination of Unfair Discrimination
We do not procure or engage in transactions involving raw materials that contribute to conflicts or which are obtained through unlawful labor (such as child labor or labor which involves the infringement of human rights) in all regions, even if they are not conflict or high-risk regions.
Indicators and Targets
| Indicators | Scope | Unit | FY2021 | FY2022 | FY2023 | Medium- to Long-term Targets | |
|---|---|---|---|---|---|---|---|
| FY2024 | FY2030 | ||||||
| Number of ESG surveys conducted on suppliers | non-consolidated | times | 0 | 1 | 1 | 1 | 1 |
Green Procurement Standard
RIKEN TECHNOS GROUP promotes global environmental conservation activities, and as part of this, works on green procurement. Detailed information is available on below PDF file.
RIKEN TECHNOS GROUP Green Procurement Standard
Procurement Structure
To supply safer and more reliable products to our customers, we are making efforts to build better environmental and quality management systems, including our supply chain, with the cooperation of our business partners, in accordance with our Procurement Policy. We also promote the establishment of sustainable supply chains by issuing requests for environmental cooperation and using various communication tools based on our Environmental Policy and Green Procurement Standard. In addition, we are expanding our procurement contacts and working to achieve competitive raw materials procurement to continually reduce costs.
Actions in Logistics Processes
In response to the “2024 logistics problem,” we brought forward our order closing times as well as performed investigations on truck drivers’ waiting times and loading and unloading work.
We will continue to improve delivery efficiency and expand initiatives for reduction of CO2 emissions.
We will also promote the collection of pallets to reduce the amount of new pallet procurement and the transition to plastic pallets to protect forests.
Procurement Initiatives
We are creating a sustainable supply chain based on our procurement policy. Based on our Group’s human rights policy, in our Procurement Policy, we declare our respect for human rights and our dedication to eliminating unfair discrimination. We do not procure or engage in transactions involving raw materials that contribute to conflicts or which are obtained through unlawful labor (such as child labor or labor which involves the infringement of human rights) in all regions, even if they are not conflict or high-risk regions.
In addition, we administered an online ESG and SDGs questionnaire to 400 companies centered on our raw material suppliers in FY2023 to investigate their state of responding to sustainability.
For FY2024, we will conduct the questionnaire for overseas suppliers to strive for the creation and enhancement of a sustainable supply chain.