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Sustainability

Strengthening of Nissan Group's business base

Promotion of Sustainable Procurement

Policy/Philosophy

In order to promote sustainability activities throughout the supply chain, we recognize that the understanding and cooperation from our business partners are essential. Based on this recognition, we establish policies on procurement of raw materials and standard materials and work with our business partners on key sustainability themes to fulfill our corporate social responsibility.

Purchase Policy

We procure and purchase raw materials and materials in accordance with our Course of Action.

  1. Compliance with laws, regulations, and social norms
    We promote sound procurement and purchase activities by observing all relevant laws, regulations, social norms, and internal regulations, as well as corporate ethics.
  2. Fair, equitable, transparent trades
    We continue to create opportunities for business with new suppliers, without adhering to past purchases or the corporate group, thereby ensuring fair, equitable, transparent trades.
  3. Procurement and purchase based on economic rationality
    We undertake procurement and purchase that are optimal for us based on a comprehensive evaluation of quality, price, stable supply, technology development capabilities, stable management and other factors.
  4. Consideration for the global environment
    To achieve a sustainable society, we strive to remain conscious of the protection of the global environment in our procurement and purchase activities.
  5. Establishment of partnership
    Based on our fundamental recognition that all of our business partners are essential for executing businesses, we establish relationships of mutual trust with them in our efforts to achieve further development. We will also work on the following themes with our business partners in our efforts to fulfill our corporate social responsibility.
    1) Compliance with laws, regulations, social norms and corporate ethics
    2) Ensure safety and protecting the environment
    3) Respect human rights and giving consideration to the work environment

Activities

Questionnaire on Sustainability for Suppliers

When outsourcing an operation such as the manufacture of important raw materials, intermediates, and products, we ask our potential business partners to answer a questionnaire on sustainability. We also ask our new and existing suppliers to answer a questionnaire, and give priority to business partners which fulfill our standards and carry out awareness and improvement activities designed for our business partners.

We revised the questionnaire in FY2017 to implement our procurement and purchase activity based on the Purchase Policy and to promote sustainability activity in supply chain. In addition, in FY2023, we revised our Sustainable Procurement Guidelines issued in FY2020, taking into account that the world's requirements for ESG are changing in line with social changes.

Furthermore, since FY2023, we have been providing feedback to surveyed suppliers on the results of the analysis of each item. By comparing their own score with the average score of other companies for each item, suppliers can reconfirm the strengths and weaknesses of their own activities and use the results as a reference for continuous improvement.

Main item in Sustainability questionnaire

Item Content
1.Human Rights, Labor Prohibition of forced or compulsory labor, Prohibition of child labor, Prohibition of inhumane treatment, Non-discrimination, Appropriate wages, Adequate hours of work, and Right to organize
2.Consideration for the Environment Chemicals management, Resource and energy-saving, Reduction of GHG emissions, Reduction of waste, Biodiversity conservation, Water resources conservation, and Raw material procurement
3.Health and Safety Health and safety at workplaces and facilities, Consideration for physically impact work, Occupational accidents response, Emergency response, and Health care
4.Ethic Prohibition of corruption and bribery, Prohibition of abuse of dominant bargaining position, Prohibition of improper offering and receipt of profit, Prohibition of restrictive competition, Prohibition of insider trading, Elimination of antisocial forces, Consultation hotline, Privacy protection, and the Non-use of conflict minerals
5.Building of Crisis Management Systems Formulation of business continuity plans, Understanding of information on business partners and production bases, and Information security
6.Quality Accurate information and Response to complaints

On-site Audits of Business Partners

We visit our business partners in Japan and overseas to conduct on-site audits to check sustainability activity initiatives in detail, with a particular focus on activities related to environment, health, and safety (EHS). We promote sustainable procurement by requesting suppliers that need to take corrective actions to submit an "improvement plan" and confirming the status of improvement.

In regard to pharmaceutical product subcontractors, we carry out EHS assessments based on the PSCI (Pharmaceutical Supply Chain Initiative) and ISO14001. Assessments include questions related to laws and regulations, the environment, health and safety, human rights, labor, and anti-corruption. We send out EHS assessment questionnaires and conduct audits based on the responses. In the on-site audit, we confirm the actual and potential risks on site focusing on the risks identified during an EHS assessment.

As results of sustainability questionnaire survey and on-site audits, no significant compliance violation of our suppliers and business partners has been identified.

Responsible Minerals Procurement Policy

It is feared that the profits from mining and trading gold, tin, tantalum, tungsten and cobalt (hereinafter, minerals) in conflict areas such as the Democratic Republic of the Congo and its surrounding countries and CAHRAs* (hereafter, collectively referred to as target areas) have become a major source of funds for organizations involved in risks and fraudulent, such as conflict, infringement of human rights such as child labor and forced labor, environmental destruction, and corruption.

We will not use any minerals from target areas (hereinafter, conflict minerals) and materials including conflict minerals to avoid participating in conflict and inhumane activities. In the unlikely event that the use of conflict minerals is discovered, we will promptly take remedial measures. We ask our business partners to agree with this policy and to cooperate so that conflict minerals are not used in the raw materials used in our products.

Procurement for Palm Oil

We are a participant in RSPO (Roundtable on Sustainable Palm Oil) and acquired RSPO Distributor License to procure palm oil as a raw material for highly branched saturated alcohol and highly fatty acid products (product name: FINEOXOCOL®).

What is RSPO ?

RSPO was established as an international NPO in 2004 by the World Wildlife Organization (WWF) and other relevant organizations to promote the production and use of sustainable palm oil. This NPO, which is operated under the cooperation of 7 sectors (palm oil producers, processors or traders, consumer goods manufacturers, retailers, banks/investors, and environmental and social NGOs), has two types of certification systems: “P&C certification※1” for farming and oil expression plants, and “SCCS certification※2” for supply chains involving palm oil produced by P&C palm oil. RSPO grants Distributor License to the company who uses P&C and SCCS palm oil only.

LICENSE NUMBER:9-3625-20-100-00

  • 1 P&C Certification: Certification issued to farms and oil expression plants that are deemed to be producing sustainably in compliance with the principles and standards established by RSPO.
  • 2 SCCS Certification: Certification issued to corporates and organizations that are deemed to be engaged in sustainable manufacturing, processing and distribution that meet the requirements established by RSPO and use P&C certified palm oil.

Participation in Initiatives

Participation in Global Compact Network Japan Supply Chain Working Group

We support the United Nations Global Compact (UNGC) and have been a member of the Global Compact Network Japan (GCNJ, the local network of the UNGC in Japan) since FY2018, participating in various GCNJ working groups. The Supply Chain Working Group within that group is working with other participating companies to improve sustainable procurement in the supply chain.

Sustainability

 

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