Basic Concept
The Nisshinbo Group's Business Conduct Guidelines, which includes "Thorough-Going Compliance" and "Fair and Transparent Business Practices," stipulates that the Group will always act fairly and with integrity in a wide range of social rules and corporate ethics, and that the Group will respect its suppliers as equal partners through sound business relationships, aiming for sustainable transactions throughout the supply chain.
To address sustainability throughout the Group's supply chain, we established the "Nisshinbo Group Sustainable Procurement Basic Policy" in 2015, under aspects such as legal compliance, fair trade, information security, environment protection, human rights, safety & health, and quality & safety. The basic policy was revised in 2024 after a review in response to recent social demands. Furthermore, we established the "Nisshinbo Group Sustainable Procurement Guidelines."
The Nisshinbo Group promotes sustainable procurement initiatives while ensuring that all suppliers understand the Group’s basic policies and guideline.
Nisshinbo Group Sustainable Procurement Basic Policy
- ① To strictly observe all legal obligations and social norms
- ② To ensure a safe and comfortable work environment where human rights are respected
- ③ To strive for a secure and healthy living and working environment
- ④ To give due consideration to protection of the environment
- ⑤ To always pursue business in a sound and fair manner
- ⑥ To procure raw materials responsibly
- ⑦ To aim to ensure the quality and safety of all products and service
- ⑧ To properly manage all information
- ⑨ To have a business continuity plan in place
Promotion System
The Nisshinbo Group established a meeting of purchasing operations personnel under the supervision of the Purchase Group of the Human Resources & Administration Service Department of the Corporate Strategy Center under a system in which the director and the chief of the Corporate Strategy Center of Nisshinbo Holdings, Inc. is in charge to promote sustainable procurement. To achieve the goals of the Sustainability Promotion Plan, which include "Improving sustainable procurement in collaboration with suppliers," "Implementation of global initiatives," and "Expanding internal awareness-raising activities," the Group is managing targets and Key performance indicators (KPIs) and implementing measures to achieve them.
Specific Initiatives of the Nisshinbo Group
In the "Fifth Sustainability Promotion Plan," the Group has designated promotion of sustainable procurement as a key action items and is working to promote a responsible supply chain. The Group has set KPIs for ① Evaluation of improvement efforts based on the results of the sustainable survey to major suppliers (more than 80% of transaction amount), 100% and ② Consideration and implementation of deployment methods to the supply chain at overseas business connection and critical overseas locations, ③ Implementation rate of training for purchasing staff (annual theme), 100%, and is promoting activities while implementing the PDCA cycle.
In FY2023, the Group focused on the global expansion of sustainable procurement initiatives as a major pillar of activities. In addition to regular meetings of purchasing managers in July and December, meetings were held every month from August onward to check the implementation status of sustainable procurement at overseas offices of group companies and to discuss methods for global deployment. In the future, Nisshinbo plans to conduct questionnaires and feedback to suppliers at overseas business sites as it did in Japan.
Implementation of Sustainable Procurement Survey and Improvement Activities
In order to confirm the status of our sustainable procurement initiatives, Nisshinbo Group companies in Japan have been conducting a questionnaire survey of major suppliers in Japan and providing feedback on the results since 2017. The results of the survey are fed back to suppliers for their use in improvement activities toward sustainable procurement. Through these activities, the Nisshinbo Group Basic Policy for Sustainable Procurement has been disseminated to suppliers.
The scope of the survey for FY2023 was expanded from 70% of the scope of FY2022 to include suppliers covering 80% of the transaction value of each core company. Many of the suppliers who have been surveyed and provided feedback multiple times so far have seen their evaluation points increase. New suppliers tended to receive relatively lower points. Nisshinbo is promoting sustainable procurement by informing suppliers of the survey results and asking them to use the results for improvement.
In FY2024, Nisshinbo plans to expand the sustainable procurement survey to suppliers at overseas business sites. In addition to globalization, the Group plans to revise the content of the questionnaire to comply with the Nisshinbo Group's Sustainable Procurement Guidelines since the requirements of companies in sustainable procurement are constantly changing.
Implementation of Training for Purchasing Managers
In FY2023, Nisshinbo conducted in-house training on Subcontract Act-related matters for purchasing staff of Nisshinbo Group companies in Japan. The Group considers an understanding of the Subcontract Act to Subcontractors as essential for those involved in purchasing operations, and Nisshinbo strives to maintain appropriate transactions by repeatedly providing training to those in charge of purchasing, including recent cases.
The Group will continue to select important themes each time in conjunction with the biannual purchasing managers' meeting and plans to conduct educational activities for employees engaged in purchasing operations in the future.
Declaration to Build Partnerships and Compliance with the Subcontract Act
The Declaration to Build Partnerships mechanism was established in May 2020 at the Council for Promoting Partnership Building for the Future, whose members include relevant cabinet ministers (Cabinet Office, METI, MHLW, MAFF, MLIT, and the Deputy Chief Cabinet Secretary), Keidanren chairman, JCCI president, and the RENGO chairman. This "Declaration to Build Partnerships" is a declaration of efforts for cooperation, coexistence and co-prosperity with business partners in the supply chain and compliance with desirable business practices between parent companies and subcontractors (the Promotion Standards based on the Law for the Promotion of Small and Medium-sized Subcontractors): the prevention of unfair assignment on trade terms and conditions to subcontractors. Nisshinbo Holdings Inc. has issued its Declaration to Build Partnerships for 2020, and is promoting collaboration with suppliers. In March 2024, Nisshinbo Micro Devices Inc. issued its Declaration to Build Partnerships.
"Declaration to Build Partnerships" portal site
https://www.biz-partnership.jp/index.html

Specific Activities of the Group Companies
Sustainable Procurement and Green Procurement Initiatives
In 2023, Japan Radio Co., Ltd. formulated the Japan Radio Basic Policy for Sustainable Procurement based on the Nisshinbo Group Basic Policy for Sustainable Procurement in order to achieve sustainable procurement while fulfilling our social responsibility in the supply chain. The company also promotes understanding and awareness of the company's procurement activities in order to promote sustainable procurement activities together with our suppliers.
<Specific examples of our efforts>
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① Formulation and dissemination of Japan Radio's Basic Policies for Sustainable Procurement
Japan Radio Co., Ltd. asked 183 of our top 80% of suppliers in terms of annual order value to inform suppliers of the Basic Policy on Sustainable Procurement and to agree to it, and 98% of suppliers responded that they agree with the policy. -
② Revised the Green Procurement Guidelines (9th edition) in February 2020 (posted on the company website)
Japan Radio Co., Ltd. promotes environmental conservation by prioritizing the purchase of lead-free parts and RoHS compliant parts in accordance with the Environmentally Conscious Product Design Guidelines for parts, materials, and units incorporated into its products.
Development of the Basic Sustainability Procurement Policy
Nisshinbo Mechatronics Inc. explains its basic procurement policy to its suppliers in Japan and overseas and conducts surveys to understand the current status and initiatives of suppliers.
In particular, for suppliers in China, Vietnam, and other countries, Nisshinbo Mechatronics Inc. visits local suppliers whenever possible to meet directly with their representatives and explain the company's basic procurement policy. Nisshinbo Mechatronics Inc. explains to them that it does not violate laws and regulations or allow child labor or forced labor to take place, and that Nisshinbo Mechatronics Inc. cannot do business with companies where such practices take place, and they agree to this. The company also explains the export control regulations and asks them to thoroughly manage technical documents and drawings in accordance with the regulations, and Nisshinbo Mechatronics Inc. instructs them to ensure that the same controls are applied to their secondary suppliers.
Launch of the Carbon Neutral Activity Team
Nisshinbo Mechatronics (Shanghai) Co., Ltd. organized and participated in a team of customer-sponsored activities as part of its efforts to become carbon neutral, and under the guidance of a third-party organization, prepared a carbon footprint report that clarified a survey of CO2 emissions from the ordering of raw materials to the delivery of products by the company in the first half of FY2023. As a result, the company received a certificate from the Shanghai Setsuyo Engineering Technology Association certifying the accuracy of the report.
In the second half of 2023, a skill test for greenhouse gas emission controllers was held, and the company's controller was certified by the association as a CO2 emission controller (intermediate level). In addition, the manager participated in a customer-sponsored training session on carbon neutrality and learned about greenhouse gas emissions management methods and reduction techniques, such as reducing energy consumption in plant facilities, promoting recycling, communicating environmental protection principles internally, and sharing CO2 reduction case studies.
In the future, Nisshinbo Mechatronics (Shanghai) Co., Ltd. will implement these greenhouse gas emission management and reduction methods, increase the number of products subject to carbon footprint reporting, and expand the scope of its activities.
Sustainability Survey Requests
The Nisshinbo Textile Inc. Osaka Branch continues to conduct sustainability procurement questionnaires for consignment processors and suppliers.
In FY2023, with three new Group subsidiaries (Naigai Shirts Co., Ltd., PT. Nikawa Textile Industry, and PT. Nisshinbo Indonesia), one contract processor, and eight suppliers, a total of 25 companies were surveyed. The transaction value with the 25 companies surveyed accounts for approximately 90% of the company's total transaction value. Many of the suppliers are subcontractors and small and medium-sized companies, and their efforts in supply chain management and business continuity planning items tend to be weak, but Nisshinbo Textile Inc. is implementing measures based on multiple purchases whenever possible to avoid any risks.
Through continuous implementation of the questionnaire, Nisshinbo Textile Inc. has also seen improvements in the status of suppliers' sustainability initiatives. The company will continue to conduct the survey and strive for improvement in the future.
Sustainable Sourcing of Cotton
Nisshinbo Do Brasil Industria Textil LTDA. in Brazil is a member of the Better Cotton Initiative (BCI).
BCI is an international NGO that works to resolve issues faced by cotton farmers, such as improving the massive consumption of water, improving the global environmental burden caused by excessive pesticide spraying, and improving farmers' rights. The company achieves sustainable procurement by receiving raw materials from farmers who are members of the BCI. In addition, by selling raw yarn to BCI member SPAs (specialty retailers) and apparel users, the company has established traceability from raw materials to finished products.
In FY2023, the company sold 1,298 tons of yarn made from BCI cotton. The company will continue to strive to earn consumer trust through sustainable sourcing and handling of products with established traceability.