Sustainability

Procurement

Basic Approach

The H.U. Group carries out purchasing activities based on its Procurement Policy. This policy incorporates the requirement for fair, stable, and sustainable procurement transactions. In addition, in order to fulfill the social responsibility of the supply chain in purchasing activities, we have compiled and thoroughly disseminated the Basic Policy on Business Partner Selection, a policy describing the efforts we would like our business partners to take alongside the Group. In addition, these policies are available in three languages, Japanese, English and Chinese.

Procurement Policy

The H.U. Group engages in fair, stable, and sustainable procurement in order to contribute to human health through the creation of new value. We value our relationship with suppliers, pursuing the following basic approach to procurement in establishing mutual trust.

  1. We comply with the laws and social norms of every country in which we conduct business, striving to engage in procurement activities that consider respect for basic human rights, labor environments, occupational health and safety, child labor, and other related factors.
  2. We provide opportunities for free and transparent procurement with suppliers around the world, working to improve our competitive capabilities through active due diligence, including procurement from new business partners.
  3. We procure from excellent, highly trustworthy suppliers, selected based on a comprehensive list of factors including quality, price, delivery, technological capacity, CSR/EMS initiatives, business continuity, local procurement, and other factors.

[Japanese] 調達方針

[Chinese] 采购方针

Basic Policy on Business Partner Selection

The H.U. Group selects excellent business partners based on our procurement policy and through the following assumed conditions.

  1. Compliance with laws, basic human rights, and corporate ethics in every country in which the entity conducts business activities
  2. Stable, healthy business infrastructure
  3. Quality, pricing, delivery are at appropriate levels and based on rational economics
  4. Compliance with non-disclosure agreements
  5. Ongoing activities that consider environmental preservation
  6. Capable of uninterrupted delivery activities, even in emergency situations

[Japanese] お取引先選定の基本方針

[Chinese] 选择供应商的基本方针

Management

The Procurement Subcommittee, managed by the division head of Procurement at H.U. Group Holdings and with Procurement as its main driver, formulates and executes plans related to sustainable procurement. This subcommittee regularly monitors the progress of these activity plans and their results, and strives to act and take corrective action going forward.

Initiatives

When initiating a new transaction, we share our Procurement Policy and Basic Policy for Business Partner Selection. For existing business partners, we confirm the status of initiatives toward the realization of a sustainable society with business partners accounting for 80% of the order amount of each Group company approximately once every three years. Specifically, we utilize the United Nations Global Compact Self Assessment Tool (hereafter the UNGC SA), confirming details in a wide range of items: environmental conservation, occupational safety, and quality assurance, as well as corporate governance, fair trade, human rights, information security, and more. We also use these results to evaluate our business partners, providing guidance for improvement based on the results of that evaluation.

the United Nations Global Compact Self Assessment Tool

Targets

Since the launch of the Procurement Subcommittee in FY2019, we have deepened communication with our business partners using the UNGC SA. In its first year of operation, we collected 100% of responses to the UNGC SA from all 89 business partners comprising 80% of order amounts from each company*1, realizing sustainability evaluations and improvement support for our business partners. Based on these results, we are holding dialogues with the relevant business partners to improve the ratio of those achieving top rankings (Class A) , and are working on continuous improvement activities for business partners working with overseas companies*2.

Procument CSR Roadmap (Three-year Targets)
KPI Performance Forecast
2019
Target
Major Category Subcategory Item Unit 2016 2017 2018 Target Actual 2020 2021 2022
Promotion of CSR procurement for Tier 1 Questionnaire collection rate Questionnaire collection rate % - - - 100 100 100 100 100
UNGC SA analysis Class A rate
(Score of 60% of total points or more)
% - - - Figures known 84.3 Figures known Figures known 90
Class B rate
(Score of 40-60% of total GC self-assessment analysis points)
% - - - Figures known 12.3 Figures known Figures known 8
Class C rate
(Score of 40% of total points or less)
% - - - Figures known 3.4 Figures known Figures known 2
Share of non-responses % - - - Figures known 0 Figures known Figures known 0

-Collection rate is 100% (89 partners), Class A: 84.3% (75 partners), Class B: 12.3% (11 partners), Class C: 3.4% (3 partners) -Based on the results, we will hold a dialogue with the relevant business partners to improve the Class A applicable rate.

Our Companies Subject to Survey

2019:
(1st Survey) H.U. Group Holdings, SRL, Fujirebio, NIHON STERY, Japan Clinical Laboratories, Care'x
2020:
(1st Survey) Fujirebio Diagnostics (US), Fujirebio Europe (Belgium)
2021:
(1st Survey) Non-domestic Group consolidated subsidiaries as of FY2019
2022:
(2nd Survey) H.U. Group Holdings, SRL, Fujirebio, NIHON STERY, Japan Clinical Laboratories, Care'x

FY2019 Survey Results: Overview of Assessments of 89 Surveyed Partners

Graph of FY2019 Survey Results: Overview of Assessments of 89 Surveyed Companies