Purchasing Policy
Unitika’s purchasing departments will engage in transparent and fair procurement practices that meet personal and community standards.
They will uphold our duty as a company to engage in responsible procurement practices, placing emphasis on CSR activities. Under our purchasing policy, we will carry out supply chain management initiatives with our business partners and clients.
Purchasing Policy
1. Legal Compliance
When executing purchasing activities, the Company will comply with laws and community standards, engaging in transparent, fair procurement practices and aiming to be a good corporate citizen.
2. Harmony With Environment
When procuring products or services, the Company will value environmental awareness and the preservation of safety, endeavoring to purchase products and raw materials of low environmental impact.
3. Respect for Human Rights; Improving Working Environments
When engaging in purchasing activities, the Company will respect human rights and ensure that all forms of prejudice are eliminated when work is executed. The Company will make efforts to ensure health and safety, and to improve work environments.
4. Partners (CSR Aspects)
The Company will aim to create better partnerships, and ask partners to:
- ① Comply with legal and community standards
- ② Work on activities to preserve the environment and to ensure safety
- ③ Respect human rights; value efforts to improve working environments
- ④ Endeavor to ensure appropriate quality/prices and reliably on-time delivery, and to maintain and improve products and services
- ⑤ Abide by our chemicals management guidelines
Additionally, cooperate in surveys and reports related to them
Supply Chain Management
The Unitika Group has set strengthening supply chain management as a priority issue. We are familiarizing business partners and clients with our purchasing policy, while also periodically conducting CSR procurement surveys to check the situation of our business partners and clients, and working with them to improve issues in the supply chain.
In FY 2022. we conducted a CSR procurement survey on the main business partners and clients*1 of Unitika Ltd. and Unitika Trading Co., Ltd. We are currently analyzing the survey results, and talking with business partners and clients who have provided survey responses that need to be checked in particular, so that we can identify issues in the supply chain.
1. CSR Procurement Survey
PDCA cycle of supply chain management
Fiscal year of implementation
FY 2022
Survey targets
199 companies*1
Number of respondents
174 companies (87.4% response rate)
Survey contents
- ① Legal compliance
- ② Harmony with the environment
- ③ Improving working environments and human rights
- ④ Product safety and quality assurance
- ⑤ Management of chemicals Setting relevant questions from these categories
KPIs of Priority Issues (Materiality)
Response rate of CSR procurement survey (Main business partners and clients*1)
FY 2030 target: 80%
FY 2022 actual result: 87.4%
*1 Total of the business partners and clients with an 80% transaction amount in the purchasing department of Unitika Ltd., and the business partners and clients with a 72% transaction amount in the purchasing department of Unitika Trading Co., Ltd.
2. Identify Issues
PDCA cycle of supply chain management
Analysis of survey results
The results of the FY 2022 CSR procurement survey included responses indicating high risks situations at a total of 13 business partners and clients (9 companies at Unitika Ltd. and 4 companies at Unitika Trading Co., Ltd.), who were subsequently given a C evaluation with the need for further talks with them. We are currently communicating with these business partners and clients to check the details of their responses.
| Evaluation | Number of companies |
Ratio | Details and action | |
|---|---|---|---|---|
| A | 102 | 51.3% | Sufficient understanding of the Unitika Purchasing Policy, and excellent CSR initiatives | |
| B | 59 | 29.6% | Understanding of the Unitika Purchasing Policy, and good CSR initiatives. | |
| C | 13 | 6.5% | Need to talk with these business partners and clients about their responses. | |
| No response / Withdrawal of response |
25 | 12.6% | Continue to check their understanding of the Unitika Purchasing Policy and CSR initiatives status. (Requesting a response, etc.) | |
| Total | Total number of companies | 199 |
Plans going forward
We will carry out activities for making improvements by communicating with the 13 business partners and clients who received a C evaluation, and also with any other business partners and clients that we regard as needing to make improvements from here on. (This may also include reviewing transactions based on the status of activities for making improvements going forward.)
We will also request those business partners and clients who did not respond to provide a response to the survey.
This is how we will continuously run the supply chain management PDCA cycle in Unitika’s purchasing departments, and link it to familiarizing business partners and clients with our purchasing policy in the supply chain as well as improving our CSR initiatives.