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 building a sustainable supply chain.
Procurement Policy
1. Fair Procurement Transactions and Selection
We deal with our business partners on an equal footing. Ordinarily, we procure from multiple sources, and we offer fair and impartial business opportunities. During selection, whether in Japan or overseas, we consider appropriate quality, price, and environmental friendliness from a global perspective.
2. Creation of Partnerships
We build and maintain good relationships of mutual trust with our business partners to create value together while seeking sustainable growth.
3. Observance of Relevant Laws and Regulations and Self-management
We are thorough in managing confidential information from our business partners and carry out procurement while following social norms and complying with relevant laws and regulations 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 that 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 | FY2022 | FY2023 | FY2024 | Medium- to Long-term Targets | |
|---|---|---|---|---|---|---|---|
| FY2027 | FY2030 | ||||||
| Number of ESG surveys conducted on suppliers | non-consolidated | times | 1 | 1 | 1 | - | 1 |
Procurement Structure
To supply safer and more reliable products to our customers, RIKEN TECHNOS is making efforts to build better environmental and quality management systems, including our supply chain, with the cooperation of our business partners, in accordance with the following Procurement Policy. We also promote the establishment of sustainable supply chains using requests for cooperation concerning the environment and 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.
Stable Supply of Products
Toward becoming a Global One Company, we are promoting the achievement of stable procurement through building partnerships with excellent suppliers that are competitive at the global level and the enhancement of our global procurement structure through further collaboration with our overseas consolidated subsidiaries.
Supplier Management Using ESG Standards
We undertake supplier evaluation with an emphasis on the environment, society, and governance (ESG) and the SDGs based on the results of replies to our online ESG and SDGs questionnaire. We will work on improvements together with our business partners, taking into consideration the results of the questionnaire. In addition, to reduce CO2 emissions, we are reviewing each order with our business partners, especially those for raw materials, and are working to reduce the number of transportation trips.
Green Procurement Standard
RIKEN TECHNOS GROUP promotes global environmental protection activities, and as part of this, works on green procurement. Detailed information is available on below PDF file.
RIKEN TECHNOS GROUP Green Procurement Standard
Actions in Logistics Processes
The issues of manpower shortages and limitations on working hours in Japan’s logistics industry have various impacts on logistics. Together with responding to the revised Act on Advancement of Integration and Streamlining of Distribution Business, we are studying the use of relay transportation and establishment of warehouses to maintain stable long-distance transportation. In addition, we are working to reduce CO2 emissions by improving transportation efficiency.