Sustainable procurement guidelines

Introduction

Based on the management vision and Action Mindset, the Idemitsu GroupWe have established a basic procurement policy . (“Idemitsu Group” refers to “major affiliated companies,” “general affiliated companies,” and “sub-subsidiary companies” as defined in our company and affiliated company regulations.)

As part of this, we have established the Sustainable Procurement Guidelines, and our policy is to exchange information with our business partners regarding the status of their sustainability initiatives and strive to improve our mutual level of excellence.

These guidelines have our management vision, Action Mindset, basic procurement policy, and sustainability policy as the upper rules, and were formulated based on international frameworks. We ask that our business partners take initiatives based on these guidelines and extend them to their business partners as well.

1.Organizational governance

(1) Legal compliance

Comply with all laws and regulations when conducting business activities.

In our business activities, we thoroughly investigate and comply with the laws and regulations not only in Japan but also in each country and region. Comply with international rules such as treaties and agreements in international transactions.

(2) Prevention of leakage of personal information

Appropriately manage and protect personal information of customers, business partners, employees, etc.

Build and operate a general management system regarding personal information. This includes creating norms and policies to be followed by employees, etc., planning based on them, implementing measures, self-inspection, and review. In addition, we will not fraudulently or unfairly obtain, use, disclose, or leak personal information.

(3) Elimination of intellectual property infringement

Do not infringe on the intellectual property rights of others.

When developing, producing, selling, or providing products or services, we will thoroughly investigate third parties' intellectual property rights such as patent rights, utility model rights, design rights, trademark rights, copyrights, and trade secrets. Do not use without permission. Furthermore, we will not illegally use or reproduce mold drawings, computer software, or other copyrighted materials. Do not obtain or use third party trade secrets by illegal means.

(4) Prevention and early detection of fraud

Establish a system for prevention, early detection, and response to misconduct.

In order to prevent misconduct, we will educate and enlighten our employees and create an open workplace culture. In order to respond to the early detection of fraud, management will strive to detect fraud as early as possible, such as by establishing a reporting desk for fraud both inside and outside the company. We will also strive to protect the confidentiality of whistleblowers and protect them appropriately.

(5) Defense against computer network threats

Take defensive measures against threats on computer networks and manage them to prevent damage to your company and others.

We will take measures to prevent serious losses such as leakage of customer information and confidential information stored on the computer, attacks on other companies' computers, business stagnation, and loss of trust due to computer viruses, computer worms, and spyware.

(6) Information disclosure

We strive to proactively provide and disclose information to stakeholders, regardless of whether disclosure is required by law or not.

Proactively provide and disclose information to stakeholders regarding the details of business activities, Financial Position, performance, risk information (e.g. damage caused by large-scale disasters, occurrence of adverse effects on the environment and society, discovery of serious legal violations, etc.) We will strive to do the following.

2.Human rights

(1) Respect for human rights

Respect basic human rights.

We will comply with the Constitution, laws and international standards, and will not engage in discrimination or human rights violations. We also respect privacy.

(2) Prohibition of forced labor

Employ all employees of their own free will, and do not allow employees to perform forced labor.

Forced labor is any labor that is not voluntary. For example, it refers to the following:

  • Forced labor that involves working against one's will

  • Bonded labor where the freedom to leave work is restricted in order to repay debts, etc.

  • Slave labor as a result of human trafficking

  • Inhumane prison labor in harsh conditions even for prisoners

  • Work without the right to free separation from work

  • Labor that requires depositing identification documents, passports, and work permits with the employer

(3) Prohibition of child labor

We will not employ children under the minimum working age, nor will we allow them to perform work that will impair their development.

Child labor generally refers to the employment of persons below the minimum working age stipulated in the conventions and recommendations of the International Labor Organization (ILO) and the failure to protect young workers. For example, in Japan, employment of persons under the age of 15 and violation of laws and regulations for the protection of young workers constitute child labor, which is prohibited. Examples of laws and regulations that protect young workers from work that may impair their health, safety, or morals include restrictions on night work and hazardous work. Even overseas, the employment of persons under the minimum working age stipulated by law and the violation of protection obligations are considered child labor. Furthermore, in countries where there are no legal provisions, acts that violate the ILO's minimum age conventions and recommendations constitute child labor. (The minimum working age is 15 years old: ILO Convention No. 138.)

(4) Prohibition of harassment (prohibition of inhumane treatment)

We respect the human rights of our employees and prohibit harsh and inhumane treatment, including abuse and all types of harassment.

Abuse, corporal punishment, bullying, sexual harassment, power harassment (harassment with abusive language and coercive behavior), etc. are prohibited.

3.Labor practices

(1) Appropriate management of working hours

Appropriately manage employee working hours, holidays, and vacations to ensure that legal limits are not exceeded.

Appropriate management refers to the following actions:

  • The number of scheduled working days per year does not exceed the legal limit.

  • Weekly working hours, including overtime (excluding emergencies and emergencies), do not exceed legal limits.

  • Provide at least one day off per week

  • Entitlement to annual paid leave as stipulated by law

(2) Respect for diversity

Respect individual diversity, individuality, and personality.

We will create an environment in which individuals can make the most of their abilities, and ensure equal opportunity on a fair and just footing. We also aim to achieve corporate growth and self-actualization by taking advantage of the diversity of our human resources. Respect company-wide policies regarding diversity and inclusion, both internally and with all stakeholders.

(3) Occupational safety and health management system

Understand the status of occupational accidents and illnesses and take appropriate measures.

An in-house reporting system for occupational accidents and illnesses has been established based on the safety and health management system, and includes classification, recording, provision of treatment as necessary, investigation, implementation of corrective measures to eliminate causes, and employee management. Systems are in place to facilitate return to work (including enrollment in workers' compensation insurance). In addition, we will carry out necessary administrative procedures in accordance with the provisions of laws and regulations.

(4) Safety and health education/guidance

Thorough safety and health education and raise safety and health awareness and knowledge.

In addition to ensuring the safety and health of workplaces and facilities, we will develop safety and health regulations and emergency response procedures, and ensure that they are fully understood through employee education and guidance.

(5) Employee health management

Provide appropriate health management for all employees.

We aim to prevent and early detect employee illnesses by conducting health examinations and other procedures at the standards stipulated by law, and by conducting follow-up tests such as re-examinations and detailed examinations as necessary. At the same time, sufficient consideration will be given to preventing health problems caused by overwork and providing care for mental health and other issues.

(6) Prohibition of discrimination

We will strive to eliminate discrimination and achieve fairness in recruitment and employment.

Workers must be hired based on their ability to do the job. Job status, employment status, age, gender, educational background, place of birth, nationality, race, disability, ideology, religion, sexual orientation, gender identity, marital status, union participation/non-participation, or other information. There should be no discrimination based on circumstances. Furthermore, differences in opportunities and treatment such as hiring, promotion, remuneration, and training participation must not be made based on factors other than rational factors such as ability, aptitude, and results.

(7) Recognition of freedom of association and the right to collective bargaining

Respect employees' right to organize as a means of achieving negotiations between labor and management regarding working conditions, wage levels, etc.

We will consider the applicable laws and regulations of each country and region in which we operate in the employment of employees, including the freedom to associate without retaliation, intimidation, or harassment, the right to collective bargaining, and the freedom to join a labor union.

(8) Appropriate wages

Pay employees at least the legal minimum wage and do not unfairly reduce wages.

Pay the minimum wage stipulated by wage-related laws and other allowances, including overtime allowances and statutory benefits, and do not reduce wages in violation of labor-related laws and regulations.

4.Environment

(1) Environmental management system

Build and operate an environmental management system.

In the environmental management system, the responsible officers, organization, and internal audit system for promoting environmental activities are clearly defined, an environmental policy is created, and the measures are Plan, Do, and Check. , and are continuously improved through the PDCA cycle of actions (corrective actions).

(2) Green procurement of raw materials

Promote green procurement.

Promote green procurement with the aim of reducing the burden on the environment based on domestic laws, ordinances, and international treaties such as the "Basic Environmental Law" and "Act on Promotion of Procurement of Environmentally friendly Goods by the State, etc." do. Additionally, we will not procure products or parts made from illegal logging.

(3) Response to climate change (prevention of global warming)

Promote energy conservation to prevent global warming.

We will strive to reduce unit energy consumption based on the Energy Saving Act by rationalizing the use of heat and electric energy. In addition, we will actively utilize renewable energy such as solar energy.

(4) Initiatives for biodiversity conservation

Strive to conduct business activities that are considerate of biodiversity.

Recognize the importance of biodiversity and check the environmental impact, including the potential impact on biodiversity, before starting any new business or making any major changes to existing business. In addition, we respect the basic concept of protected areas and strive to maintain ecosystems.

(5) Effective use of Resources (3R)

Promote the 3Rs.

We promote Resources 3Rs of Reduce, Reuse, and Recycle by reducing the amount of Resources used in products and waste, and promoting the use of recycled Resources and parts. Try to utilize it.

5.Fair operating practices

(1) Compliance with antitrust laws

We conduct our business through free and fair competition.

We comply with competition-related laws and regulations such as the Antimonopoly Act, the Public Representation Act, the Subcontract Act, and the Unfair Competition Prevention Act, and conduct our business through free and fair competition.
Under any circumstances, understand the significance of competition-related laws and engage in acts that may impede free and fair competition, such as unfair trade restrictions (cartels), restraints on resale prices, and abuse of a dominant position. is not carried out.

(2) Compliance with export regulations

Comply with export regulations from the perspective of maintaining peace and security in the international community.

From the perspective of maintaining the peace and security of the international community, we will comply with regulations regarding the export of specified goods to specific areas such as conflict areas and the provision of designated technology and services as regulated by the Foreign Exchange and Foreign Trade Act. .

(3) Fair trade

We will always maintain a fair and impartial position towards our business partners and conduct our business in accordance with relevant laws, regulations, procedures, etc.

When carrying out work, we always act in good faith and in accordance with the terms and conditions of the contract. By maintaining fair procurement activities, we will strengthen relationships of mutual trust and cooperation with our business partners, increase mutual cost competitiveness, and build sustainable partnerships that encourage mutual improvement.
In our procurement activities, we are open to both domestic and international suppliers, and when selecting and evaluating suppliers, we place emphasis on economic rationality, while focusing on quality, technological development capabilities, delivery dates, reliability, safety, after-sales care, and Judgments will be made from a comprehensive standpoint, taking into account efforts to preserve the environment.
When procuring goods and services, we always keep fair competition in mind, and conduct fair and transparent procedures based on procurement-related regulations, without imposing a coercive attitude or imposing difficult tasks.

(4) Prevention of corruption and bribery

We will not engage in bribery or illegal political contributions.

We will not offer or pay bribes to public officials in any form, regardless of whether or not we ask for business benefits, favors, etc. in return.

(5) Restrictions on gifts and entertainment

As a general rule, we do not exchange gifts or entertainment with business partners.

We will not provide excessive entertainment or gifts that go beyond the scope of social etiquette in order to improve business conditions with business partners, nor will we solicit gifts or entertainment by taking advantage of our advantageous business position. Furthermore, we will not engage in any behavior that could lead to such misunderstandings.

(6) Elimination of anti-social forces

We will take a firm stance against anti-social forces and cut off all relationships with them.

Anti-social forces refer to groups and individuals who pursue economic profits by using violence, force, and fraudulent methods, and are not limited to organized crime groups, corporate racketeers, and other groups and individuals who borrow these powers in their surroundings. , complaints, complaints, activities disguised as political campaigns or social activities, demands that lack social validity using economic transactions, etc., and organizations and people that make unreasonable demands that exceed their legal responsibilities. . When approached by anti-social forces, we will take a resolute stance and work with the police and other agencies to thoroughly sever any relationships. We will never respond to unreasonable demands from anti-social forces.

(7) Response to conflict minerals

Understand the use of "conflict minerals" produced in conflict areas such as the Democratic Republic of the Congo in products.

Conflict minerals refer to tantalum, tin, gold, tungsten, and other minerals designated by the U.S. Secretary of State under the Financial Regulatory Reform Act enacted in the United States.
Some of the minerals produced in conflict areas such as the Democratic Republic of the Congo have the potential to fuel armed groups that commit inhumane acts, fuel conflicts, or cause human rights violations. Understand usage status.

6.Consumer issues

(1) Chemical substance management

Manage chemical substances specified by laws and regulations.

We will not procure products or raw materials that contain chemical substances prohibited by law. In addition, we will monitor and report the amount of chemical substances transferred during the manufacturing process based on laws and regulations.

(2) Ensuring product safety

When developing products, meet the safety standards stipulated by the laws and regulations of each country.

When developing products, we ensure sufficient product safety and consider our responsibility as a manufacturer before selling. In addition to ensuring product safety, we will not only comply with laws and regulations, but also consider the safety that should normally be maintained. To ensure product safety, we will manage traceability (history of materials, parts, processes, etc.) and establish a rapid response system to resolve problems.

(3) Quality management system

Build and operate a quality management system.

We will build a quality management system that includes an organizational structure, planned activities, division of responsibilities, practices, procedures, processes, and management Resources to promote quality assurance activities, and will make continuous improvements through the PDCA cycle.

(4) Providing accurate product and service information

Provide accurate information about products and services to consumers and customers.

The specifications, quality, and handling methods of products and services are accurate. Information on the substances contained in parts and parts used in the product must be accurate. In displaying catalogs and advertising related to products and services, we do not use expressions that are different from the facts or that mislead consumers and customers, and we do not use content that defames or infringes on the rights of other companies or individuals. Do not include.

7.Social contribution

(1) Contributing to society and the region

Voluntarily carry out activities that can contribute to the development of international and local communities.

Conduct support activities for the community by utilizing the company's management Resources.

  • Contributing to society by utilizing original work and technology

  • Contributing to society by utilizing facilities, human resources, etc.

Such.