Sustainability in the supply chain
The PPIH Group believes that addressing issues related to human rights, working environment, health, and safety for all people involved in our business is one of the key challenges for the Group as a retailer, and that fulfilling our social responsibility in the supply chain will contribute to the realization of a sustainable society and lead to the growth of our suppliers and the Group itself. In January 2022, the PPIH Group established the PPIH Group Sustainable Procurement Policy and the PPIH Group Supply Chain Code of Conduct with the approval of the Board of Directors, with the aim of procuring products that take human rights and environmental issues into consideration. This Code of Conduct has been translated into English, Chinese, Thai, and Korean in addition to Japanese and has been disseminated globally, and suppliers are requested to comply with the PPIH Group Supply Chain Code of Conduct.
The Supply Chain Management Subcommittee, a subcommittee of the Sustainability Committee, will play a central role in promoting responsible procurement throughout the supply chain with suppliers based on a strong partnership between the Group and suppliers.
PPIH Group Supply Chain Code of Conduct
- (1)Respect for Human Rights
- Respect the human rights of all people involved in our business and address the following items:
-Prohibit child labor and forced labor
-Prohibit inhumane treatment, including corporal punishment and behavior that causes mental anguish (sexual harassment and power harassment)
-Respect diversity and do not discriminate on the basis of gender, age, nationality, work history, principle, ideology, race, religion, etc. in employment
- (2)Management of Working Environment, Safety and Health
-We comply with the legal minimum wage, and pay a living wage that meets or exceeds the basic needs of workers. In addition, we shall not unreasonably reduce wages
-We enforce compliance with legally stipulated working hours, as well as overtime work performed under legal limits and payment of compensation for it. We prohibit and prevent excessive overtime work and endeavour to reduce overtime work
-We will provide a safe and hygienic environment for employees and strive to maintain their health
- (3)Fair and Transparent Business Activities
-Conduct business activities in strict compliance with relevant laws and international rules
-Thoroughly prevent corruption by conducting fair and equitable transactions and prohibiting bribery and illegal political contributions
-In selecting suppliers, we will consider not only quality, price, delivery, and stable supply, but also environmental considerations and respect for human rights
-Prohibit private favors, hospitality, and the giving and receiving of goods to take advantage of a superior position
-We will protect intellectual property rights, including trademarks, copyrights, and patents, and will not infringe on the intellectual property rights of third parties
-We will strive to sever all relationships with antisocial forces and eliminate them from our business activities
- (4)Environmental Protection
-In addition to complying with laws and regulations related to the environment, we will strive to reduce our environmental impact by giving consideration to sustainability (climate change, prevention of environmental pollution, and impact on biodiversity conservation)
-We endeavor to use energy efficiently and sustainably and to introduce renewable energy sources where possible
-We endeavour to make effective use of resources, including water. Additionally, waste and effluents are properly disposed of, and efforts are made to prevent pollution
-We will establish an environmental management system, continuously improve it, and disclose its effects and initiatives
- (5)Quality Control
-In order to provide safe and reliable products to our customers, we will comply with the quality standards requested by our operating companies and the relevant legal standards in Japan and other countries where our products are sold
-We will strive to improve the quality of our products based on our quality control system
-In the event of an accident or defective product, we will immediately report the incident to the PPIH Group's purchasing manager, contact the competent authorities, recall the product, disclose the information to customers, and promptly take measures to prevent recurrence
- (6)Information Security
-Appropriately manage confidential information and personal information to prevent leaks
- (7)Contributing to the Local Community
-Aim for coexistence and co-prosperity with the local community, and aim for good relationships
-Contribute to the sustainable development of local communities
- (8)Efforts to Put into Practice
-Ensure that business partners understand the PPIH Group Sustainable Procurement Policy and seek their support and cooperation
-The PPIH Group will establish a system to prevent and detect human rights violations and improper behavior, and to take corrective action, by establishing a contact point for reporting and discussing systematic and individual improper behavior
-In order to build a good and healthy relationship with our suppliers, we will conduct regular questionnaires to ensure compliance with the PPIH Group Supply Chain Code of Conduct, and allow on-site checks and audits upon request. We will cooperate to resolve any problems found
Revised November 13, 2023
-Japanese -Chinese(Traditional Chinese/Simplified Chinese)
Holding briefing sessions and distributing and collecting pledges forms
-Holding of briefing sessions
In order to promote responsible sourcing throughout the supply chain with our suppliers in the development of original products (PB/OEM), we held briefing sessions from May to June of 2022 for our PB/OEM manufacturing suppliers. At the briefing sessions, we explained the purpose of the Group's supply chain management initiatives, policies and code of conduct, and the items requested of suppliers, such as submission of a written pledge and a self-check questionnaire survey.
-Distribution and collection of pledge forms
In order to promote respect for human rights and environmental considerations in our supply chain, we ask our suppliers to submit a written pledge that they agree with the PPIH Group Sustainable Procurement Policy and will comply with the PPIH Group Supply Chain Code of Conduct. We also ask new suppliers to whom we outsource our PB/OEM manufacturing to submit a written pledge before commencing business. The Group will promote responsible procurement throughout our supply chain by encouraging our suppliers to implement supply chain management that takes human rights and the environment into consideration through cooperation.
Risk assessment and monitoring
-Evaluation by self-check questionnaire
We conduct a questionnaire survey of PB/OEM manufacturing plants, asking them to self-check their compliance with the PPIH Group Supply Chain Code of Conduct. This survey is designed to assess suppliers' risks in the PB/OEM manufacturing process by evaluating a total of eight survey categories, including human rights, labor, health and safety, and the environment. We have explained this survey and asked for their submission at the briefing sessions held from May to June 2022.
The results of our suppliers' responses are evaluated comprehensively with the score for compliance with laws and regulations and our Code of Conduct and the severity of the risk. If risk factors are identified, we encourage and support our suppliers to take corrective actions. Through risk assessment and monitoring, we will promote human rights and environmental initiatives in cooperation with our suppliers, and will ask them to continuously correct and improve any nonconformities.
Based on the self-check questionnaires submitted by about 500 suppliers, we have confirmed that no critical risks or incidents related to human rights, labor, and health and safety have been identified as of February 2023 at approximately 1,700 manufacturing plants.
|Self-check questionnaire survey categories and major items
(1) Human rights and labor
Prevention of child and forced labor, discrimination, harassment
(2) Health and safety
Appropriate measures against hazardous chemicals, industrial accidents, etc.
(3) Fair trade and ethics
Prevention of bribery, illegal contributions, abuse of a superior bargaining position, etc.
Legal compliance for wastewater, sludge, waste disposal, etc., formulation of waste reduction targets
(5) Quality and safety
Development and operation of a quality management system
(6) Information security
Appropriate management and protection of personal and confidential information
(7) Contribution to society
Implementation of activities that contribute to the development of the international and local communities
(8)Other (co-existence and co-prosperity)
Responsible procurement of raw materials with serious human rights and environmental risks, etc.
-Capacity building for suppliers
Online follow-up was conducted with approximately 120 suppliers whose self-check questionnaires indicated minor issues that need to be addressed to minimize risk.
We will continue to provide follow-ups and other supports to promote capacity-building initiatives.