SUSTAINABILITY
CSR Procurement Initiatives
The EKK Group is committed to CSR procurement with our partners in order to help resolve ESG issues. This style of procurement is based on policies such as compliance with laws and regulations, mutual benefit, and respect for human rights.
In April 2022, we revised our Procurement Policies, and are working to strengthen supply chain management in our business with partners by conducting CSR self-assessments and human rights due diligence. Regarding green procurement, we have newly established and published the EKK Green Procurement Guidelines in April 2022. Here, we are developing technologies and conducting environmental preservation activities for the resolution of environmental issues and other issues faced by society.
Going forward, we will continue to communicate with our stakeholders and conduct CSR procurement.
Note that we have provided a counseling hotline (complaint processing mechanism) on our website for any compliance-related concerns or other issues as they pertain to business with the EKK Group.
Building Partnerships
In October 2023, we endorsed the “White Logistics” promotion campaign initiative led by the Ministry of Land, Infrastructure, Transport and Tourism, and made a declaration. We are actively working to improve logistics efficiency and productivity in cooperation with logistics providers based on mutual understanding.
Partnership Building Declaration Portal Site（biz-partnership.jp）
Endorsement of White Logistics
In April 2021, the Group signed on to the Partnership-Building Declaration led by the National Association of Small and Medium Enterprise Promotion Organizations, part of the Cabinet Office’s Small and Medium Enterprise Agency. As a signatory to this declaration, we are actively working toward greater collaboration and mutual benefit with our partners and other businesses trying to create value in efforts to build sustainable relationships for mutual growth.
White Logistics Potal Site (white-logistics-movement.jp)
Internal Education on Our Procurement Policies
Our procurement-related personnel at business units and Group companies within Japan are subject to a number of educational programs each year. They receive information on respect for human rights and take tests about their understanding of various laws and regulations as well as procurement policies, including the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors.
Based on the knowledge gained from these educational activities, we are working on CSR procurement in cooperation with our partners.
| FY2022 Results | FY2023 Results |
|---|---|
| 116 participants | 104 participants |
Building Partner Engagement through Procurement Policies Briefings
We invite our partners to join us for briefings about our policies.
In these briefings, we present to partners about the state of the EKK Group’s businesses (production, sales, quality, and procurement), as well as status and policy with regard to CSR procurement. In addition, presentations cover the importance of respect for human rights based on the Guidelines on Respect for Human Rights in Responsible Supply Chains published by the Japanese government. We have used these briefings to call for partner efforts beginning from areas within reasonable reach.
The Group is committed to CSR procurement in order to meet the expectations of its stakeholders as we further collaborate and share information with our partners.
| FY2022 Results | FY2023 Results |
|---|---|
| 89 participants from 58 companies | 169 participants from 111 companiescompanies |
CSR Procurement Self-Assessment
In order to sincerely address issues faced by our stakeholders, we use the CSR Procurement Self-assessment Questionnaire (SAQ) with selected partners to check their policies, systems and initiatives and actively rectify any issues.
From FY2023, the scope of the program was expanded to include partner companies that do business with EKK Group’s overseas subsidiaries.
| Items for Confirmation | Corporate governance, human rights, labor, environment, fair corporate activities, quality and safety, information security, supply chain, coexistence with local communities. |
|---|---|
| Step１ | Issues are identified from the results of the CSR Procurement SAQ evaluation. |
| Step２ | Risks are identified, rectified, assessed and disclosed in the due diligence process. |
Human rights due diligence
We are engaged in efforts for the respect of human rights based on international standards such as the UN Guiding Principles on Business and Human Rights, the Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises and the International Labour Organization (ILO) MNE Declaration. As part of these efforts, we conduct due diligence on issues identified in the CSR Procurement SAQ through the process shown in the chart on the right, and place the highest priority on minimizing and preventing the risks identified.
Status of CSR Procurement SAQ
1. CSR Procurement SAQ Average Score by Item
| Item | FY2022 | FY2023 |
|---|---|---|
| Corporate Governance | 72% | 69% |
| Human Rights | 69% | 68% |
| Labor | 83% | 79% |
| Environment | 76% | 74% |
| Fair Corporate Activities | 77% | 73% |
| Quality and Safety | 86% | 84% |
| Information Security | 83% | 80% |
| Supply Chain | 71% | 70% |
| Coexistence with Local Communities | 71% | 69% |
| Overall | 77% | 74% |
2. Number of Companies by CSR Procurement SAQ Rating
| Rank and Evaluation | FY2022 | FY2023 |
|---|---|---|
| A Maintain rank (work to raise level) | 471 companies | 441 companies |
| B Rank increase required (voluntary improvement) | 139 companies | 213 companies |
| C Promote improvement of items not complied with (improvement/guidance) | 79 companies | 107 companies |
| Total | 689 companies | 761 companies |
With regard to the FY2023 evaluation rank of “C: Promotion of Improvement of Non-implemented Items (Improvement and Guidance) 107 companies”, we are working to improve the identified risks in cooperation with the targeted partner companies.