Supplier assessment (environmental and social)

Material Issue Supplier assessment (environmental and social)

  • Targets/Vision
  • Supplier with negative environmental impact *1 : None
  • Supplier with social impact *2 : None
  • *1Determined based on whether there was any case resulting in a fine or lawsuit for violation of pollution/environment laws and regulations
  • *2Determined based on whether there was any case resulting in a fine or lawsuit for violation of labor standard-related laws and regulations

Management and Promotion Method of Supplier assessment (environmental and social)

[Responsible Departments]
  • Procurement Department of Manufacturing Planning Center
[Policy/Point of view]

The Bando Group considers its suppliers as partners and believes that it is important to build a relationship that allows each other to trust and develop to ensure stable procurement in the future.
The Group sets forth fair procurement transactions in the “Group Code of Conduct” stipulating rules to be complied with by all Bando Group officers and employees and also established the “procurement policy” and “CSR Procurement Guidelines” to promote, together with our business partners, initiatives in the fields of product safety and quality assurance, human rights and labor, compliance, and environmental preservation.
The Group developed the “Group human rights policy” and conducts activities for respecting human rights of our stakeholders.

[Targets/Vision]

Supplier with negative environmental impact: None
(Determined based on whether there was any case resulting in a fine or lawsuit for violation of pollution/environment laws and regulations)
Supplier with social impact: None
(Determined based on whether there was any case resulting in a fine or lawsuit for violation of labor standard-related laws and regulations)

[Measures]
  • Explain our procurement policies
  • Evaluate the environmental impact when initiating transactions
  • Conduct a CSR survey to confirm the environmental/social initiatives
  • Visit suppliers who did not meet our requirements as a result of the CSR survey to perform an on-site assessment and exchange opinions
  • Follow up on the improvements

Policy/Point of view

The Group defines the “procurement policy” and “CSR Procurement Guidelines” under “Fair and equitable procurement transactions” set forth in the “Bando Group Code of Conduct.” Based on them, we are, together with our suppliers, working on initiatives in the fields of product safety and quality assurance, human rights and labor, compliance and environmental preservation.

Bando Group Procurement Policy

1. Fair trade
The Bando Group shall maintain appropriate business relationships with all suppliers to ensure fair and just trade.
We shall comply with laws and social norms in Japan and overseas for our procurement activities.
2. Equality of opportunity
The Bando Group shall select suppliers based on free competition regardless of the size or nationality of the companies.
We shall commence transactions after conducting sufficient assessment of suppliers’ product quality, price, delivery time, technological capabilities, stable supply capabilities, and management reliability and completing appropriate procedures.
3. Mutual development
The Bando Group considers all of its suppliers as partners and strives to build relationships that allow each other to trust and develop.
4. Social responsibility
The Bando Group, together with its suppliers, promotes CSR initiatives in the fields of product safety and quality assurance, human rights and labor practices, compliance, and environmental preservation.

(Revised in December 2018)

CSR Procurement Guidelines

The Bando Group asks its suppliers to follow the articles described below:

1. CSR promotion system
Set a CSR policy, build a system to promote it and implement CSR activities based on the plan on a continuous basis.
  • ■ Building a CSR promotion system
  • ■ Identification of applicable laws and regulations
  • ■ Formulation of a BCP
2. Product safety and quality assurance
Build and operate the management system that considers product quality.
Ensure safety of products that you supply to us.
  • ■ Building a quality management system
  • ■ Compliance with safety standards in each country and region
  • ■ Appropriate management of chemical substances contained in products
3. Human rights and labor practices
Establish a workplace that respects human rights and eliminates discrimination in line with the global trend of respect for human rights.
Create safe and comfortable working environment from the viewpoint of occupational health and safety.
  • ■ Compliance with health and safety standards in each country and region
  • ■ Respect for basic human rights and prohibition of discrimination
  • ■ Prohibition of child labor
  • ■ Prohibition of forced labor
  • ■ Compliance with laws and regulations on wages and working hours in each country and region
4. Compliance
Comply with laws and regulations and social norms and conduct corporate activities based on corporate ethics.
  • ■ Compliance
  • ■ Elimination of antisocial forces
  • ■ Corruption prevention
  • ■ Respect for intellectual property rights
  • ■ Banning the use of Conflict Minerals
  • ■ Compliance with laws and regulations on export control in each country and region
  • ■ Management and protection of confidential information
  • ■ Information security
  • ■ Establishment of an internal reporting system and protection of the internal reporters
5. Environmental preservation
Establish and implement the environmentally-friendly management system.
  • ■ Promotion of environmental preservation activities
  • ■ Reduction of greenhouse gas emissions
  • ■ Preservation of environment such as air, water, and soil
  • ■ Resource saving and waste reduction
6. Consideration to local communities
We recommend that you conduct voluntary activities to contribute to the development of global society and local communities.
  • ■ Respect for traditions and customs in countries and regions where you operate
7. Expansion to suppliers
Work with your suppliers to disseminate and spread these CSR initiatives.
  • ■ Thorough dissemination to supply chain

(Developed in October 2020)

Environmental and social assessment of suppliers

We evaluate the environmental impact of new supplies and a CSR survey to existing suppliers to confirm their social initiatives related to environment as well as human rights, occupational safety, and compliance. In fiscal 2020, we confirmed there were no suppliers with negative environmental or social impact. We provide feedback about the CSR survey results and distribute the CSR Procurement Guidelines leaflet to major suppliers to raise awareness of CSR. In fiscal 2021, we will continue monitoring and promote enlightenment activities for environment preservation initiatives with the scope of monitoring expanded to suppliers of our domestic affiliates.
As part of the risk management, we will continue activities combining surveys and supplier visits.

Key questions in the CSR survey

[Product safety and quality assurance]
Quality management, securing of product safety, management of chemical substances

[Human Rights/Labor]
Occupational health and safety management, prohibition of forced or compulsory labor/child labor, non-use of conflict minerals, decent working hours and wages

[Compliance]
Cutoff of any relationship with anti-social forces, framework to prevent corruption

[Environmental Conservation]
Environmental management, monitoring of greenhouse gas emissions, compliance with water quality standard, reduction of wastes

  • Targets/Vision
  • Supplier* (raw material) identified as having a risk of child/forced labor : None

    *Investigated raw materials imported by the Company (natural rubber and textile products) by tracing back the supply chain

  • Maintain “no child labor”

Management and Promotion Method of Human rights
(child labor/forced or compulsory labor)

[Responsible Departments]
  • Personnel Department
  • Procurement Department of Manufacturing Planning Center
[Policy/Point of view]

The Bando Group developed the “Group human rights policy” and conducts activities for respecting human rights of our stakeholders.
The Group sets forth the compliance with laws and regulations and corporate ethics, and respect of human rights, personality and individuality in the “Group Code of Conduct” stipulating rules to be complied with by all Bando Group officers and employees and also established the “procurement policy” and the “CSR Procurement Guidelines” to promote, together with our busines partners, CSR initiatives in the fields of product safety and quality assurance, human rights and labor, compliance, and environmental preservation.
In addition, for group companies, we established and implement the “Employment regulations” to ensure no unfair labor practice.

[Targets/Vision]

(Group) Maintain “no child, forced or compulsory labor”
Supplier (raw material) identified as having a risk of child/forced labor: None

[Measures] (Group)
  • Confirm applicants’ age with their ID at the time of recruitment. Not to employ those who have not reached the legal working age of the respective country/region
  • Include in the “employment regulations” a rule not to keep the original of the employees’ ID at the time of recruitment and implement it
  • Provide “human rights education” at the time of recruitment/employment
  • Conduct review during the Bando Group Corporate Ethics Month in every October. Hold seminars on human rights in each business facility
[Measures] (Suppliers)
  • Explain our procurement policies
  • Investigate suppliers
  • Visit suppliers who did not meet our requirements to perform an on-site assessment and exchange opinions
  • Follow up on the improvements

Group human rights policy

With the spirit of “harmony and in good faith” as our management philosophy, the Bando Group aims to realize a sustainable society through its business. Recognizing that respect for human rights is a premise of sustainable corporate activities and that our business activities may have direct or indirect impacts on human rights, we will strive to fulfill our responsibilities to respect human rights.

1. Basic Stance
In accordance with international norms such as the United Nations‘ Universal Declaration of Human Rights, the Guiding Principles on Business and Human Rights, and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work, the Bando Group will strive to fulfill its responsibilities to respect human rights and promote efforts to respect human rights of all stakeholders, including employees and business partners, in all of its business activities.
The Bando Group complies with international norms and local laws and regulations on respect for human rights in countries and regions where it conducts its business activities. If local laws and regulations are in conflict with international norms, we will pursue ways to give maximum respect to the international norms.
2. Scope of Application of the Human Rights Policy
This Policy applies to all officers and employees of the Bando Group. We also expect all of our business partners to understand and practice this Policy.
3. Positioning of the Human Rights Policy
This Policy clarifies our efforts to respect human rights to fulfill our responsibilities to all of our stakeholders based on our corporate philosophy. We position this Policy as a high-level policy on all documents and norms related to efforts to respect human rights in the Bando Group’s business activities.
4. Human Rights Issues Related to Our Business Activities
The Bando Group puts emphasis on the following human rights issues related to its business activities and addresses each of them.
  • Forced labor and child labor
    The Bando Group prohibits labor by anyone under the minimum working age stipulated by laws and regulations in countries and regions it operates as well as forced labor.
  • Discrimination
    The Bando Group prohibits discrimination of any kind, including on the grounds of gender, age, nationality, ethnic origin, race, birthplace, religion, creed, social status, disability or sexual orientation. We promote equal opportunities and fairness in recruitment, assignment, and treatment.
  • Harassment
    The Bando Group prohibits harassment of any kind that could harm personal dignity.
  • Fair wages and appropriate working hours
    The Bando Group secures fair wages and manages appropriate working hours, leave, and non-working days in compliance with labor-related laws and regulations in countries and regions it operates.
  • Freedom of association and right to collective bargaining
    The Bando Group respects freedom of association and right to collective bargaining in compliance with labor-related laws and regulations in countries and regions it operates. We also strive to secure favorable working environment through employee engagement.
  • Occupational health and safety
    In compliance with laws and regulations, internal rules and policies regarding health and safety of workplace, the Bando Group maintains and improves healthy and safe environment, and maintains and enhances mental and physical health, with an aim to create comfortable working environment.
5. Prevention of Human Rights Violations
The Bando Group provides appropriate education regarding this Policy and strives to identify and reduce negative impacts that could be caused by its business activities in line with human rights due diligence framework.
6. Responses to Violations
The Bando Group appropriately deals with any negative impacts on human rights caused by its business activities to relieve and correct them. In case negative impacts on human rights are caused by our business partners, we will encourage them to take appropriate responses through engagement, etc.

This Human Rights Policy was approved by the Board of Directors of Bando Chemical Industries, Ltd. on March 10, 2023.

Human rights risk management

The Group conducts the supplier assessment from the perspective of child/forced labor. In order to maintain “no child labor,” we require our suppliers to confirm applicants’ age with their ID card at the time of recruitment, not to employ those who have not reached the legal working age of the respective country/region, to provide “human rights education” at the time of recruitment/employment, to conduct review during the Bando Group Corporate Ethics Month in October every year, and to hold seminars related to human rights in each office. In fiscal 2020, there was no child or forced labor.