Shin-Etsu Chemical Co., Ltd.

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Shin-Etsu Group Key CSR Issues

Key Issue4: Promoting CSR procurement and the diversification of supply sources

Policy

The Group will procure fairly and build an environmentally conscious supply chain.

Basic Procurement Policy

A Basic Procurement Policy has been formulated for the purchasing of supplies needed for production activities, including raw materials, sub materials including transportation packaging, and machinery and equipment. This policy is ensured in the Group and posted on the website. Business partners are expected to understand the Basic Procurement Policy and asked to incorporate the content of the Policy into their supply contracts.
In addition, the Group prepared and distributed the Guidelines for CSR Procurement so as to ensure that business partners have a deeper understanding of the Basic Procurement Policy. We held an explanatory meeting of CSR procurement for suppliers in July 2017. It was to ask suppliers for understanding and cooperation to our promotion of CSR procurement.
In January 2018, we established the Supplier Hotline to ensure the transparency and fairness of transactions between the Group and suppliers.

  • Briefing of the Guidelines for CSR Procurement (July 2017, Shin-Etsu Chemical Head Office)

    Briefing of the Guidelines for CSR Procurement (July 2017, Shin-Etsu Chemical Head Office)

Compliance with the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors

Staff members in charge of purchasing and procurement attend external seminars and internal training sessions to learn specific examples in order to support thorough compliance with the Subcontract Act. Also, we make sure that all the subcontractors that are applicable for the Subcontract Act are in full compliance by periodical checks and through new transaction report.

  • Internal auditing for compliance with the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors (December 2017, Shin-Etsu Chemical Naoetsu Plant)

    Internal auditing for compliance with the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors (December 2017, Shin-Etsu Chemical Naoetsu Plant)

Initiatives Aimed at Eliminating the Use of Conflict Minerals

In our Basic Procurement Policy, the Group has declared our dedication to eliminating conflict minerals1 from all product procurement. We ask that all business partners adhere to this policy, and we regularly perform studies of pertinent minerals, tracking their production all the way back to the smeltery level.

  • 1 Conflict minerals
    Minerals used to fund armed groups in conflict areas in the Democratic Republic of the Congo and its neighboring countries. These conflict minerals are tantalum, tin, gold, tungsten, and their derivatives.

Procurement Audit

By asking business partners to reply to a supplier CSR procurement questionnaire, we confirm whether they conduct business activities in accordance with the Group's CSR Procurement Guidelines. Additionally, we visit business partners in Japan and overseas whenever necessary to carry out audits.

Procurement Conferences

The Purchasing Department holds a company-wide meeting every six months with all procurement department personnel company-wide to discuss material procurement. This meeting is not only for reporting material procurement but also for training procurement department personnel according to the Guidelines for CSR Procurement and checking the status of CSR procurement as well as learning the latest examples of CSR Procurement inside and outside the Company.

  • Procurement conference (Shin-Etsu Chemical Head office)

    Procurement conference (Shin-Etsu Chemical Head office)

Business Continuity Initiatives

The Group has formulated a Business Continuity Plan and is prepared for contingencies. We would like business partners to understand the effectiveness and practicality of the Group's Business Continuity Plan and draw up a business continuity plan of their own.

Control of Chemical Substances Used as Raw Materials

The Group checks the ISO 14001 status of business partners and considers preferential business transactions with business partners that have ISO certification so as to purchase materials of lower environmental impact. On making contracts on specifications for raw material supply, we work to confirm the following.

  • - The business partners' use of chemical substances that impact the environment in products and packaging, compliance with the relevant laws and regulations
  • - Compliance with the RoHS Directive

Shin-Etsu Group Key CSR Issues