Sustainability
Procurement Survey

Overview of the survey

Since fiscal 2020, we have adopted the Self-Assessment Questionnaire (SAQ^*1) developed by the United Nations Global Compact Network Japan (GCNJ) in 2017 to conduct our annual sustainability procurement survey of major suppliers. The SAQ is based on the 10 principles of the Global Compact, international guidelines such as ISO 26000 and CSR questionnaires from specific industries and identifies nine core items that can be shared between buyers and suppliers regardless of industry.

Global Compact Network Japan “CSR Procurement Self-Assessment Tool Set” (in Japanese)

In FY2021, we also conducted a “High Risk Management Questionnaire^*2” using a common format with KDDI Corporation, whom we collaborate on sustainability procurement activities^*3.

[Notes]

1. *1
   The SAQ is based on the 10 principles of the Global Compact, international guidelines such as ISO 26000 and CSR questionnaires from specific industries and identifies nine core items: (1) Corporate governance related to CSR, (2) Human rights, (3) Labor, (4) Environment, (5) Fair corporate activities, (6) Quality, (7) Information security, (8) Supply chain, (9) Coexistence with local communities, that can be shared between buyers and suppliers regardless of industry.
2. *2
   The survey covers critical issues such as human rights, environment, etc.
   which are not covered by each company policy or guidelines (code of conduct).
3. *3
   Target suppliers: In fiscal 2021, we surveyed major suppliers that are included in the top 90% of purchases. Softbank affiliates are not included in the survey.

Identifying sustainability risks

We define “sustainability high risk” as a situation in which suppliers human rights, labor, or environmental practices are inadequate and are likely to have a significant negative impact on our business activities, such as human rights violations that could affect our corporate reputation, poor labor conditions that could reduce the quality of our products and services, or violations of environmental or labor-related laws and regulations.

To identify high-risk suppliers, we conduct a sustainability procurement survey that evaluates suppliers from nine perspectives, including human rights, labor, and the environment. Suppliers with an average score of 65% or lower and do not meet the criteria to be considered as having a particularly significant risk on the nine criteria are classified as “high-risk” suppliers, and we work together with them to improve our initiatives.

Conduct supplier visits
and audits

In the past, we have conducted on-site inspections of our suppliers factories to check on quality and safety assurance, occupational health and safety and other issues. In fiscal year 2021, we conducted audits focusing on monitoring compliance with the Supplier Ethics and Rules of Conduct (CSR audits), and conducted audits of five companies. As a result of the audit, if a company is assessed as a high-risk company that needs to make improvements, an improvement plan will be formulated and implemented after the audit.