Sustainability

Supply Chain Management

Purchasing Policy

In engaging in new transactions, the IDEC Group will provide an environment in which all suppliers can trade with it in a fair and impartial manner. To increase customer satisfaction even further, it will strive to build a supply-chain management (SCM) system on a global basis, seeking to secure an extensive range of suppliers around the world. Together with aiming to procure materials with outstanding quality, cost, and delivery (QCD) performance and low environmental impact, it also will aim to realize coexistence and co-prosperity with suppliers as good business partners, and contribute to a sustainable society.

[Global]
To enable global production activities, outstanding parts and materials shall be procured from global suppliers in the optimal locations.

[Fair and impartial]
Pursuing equal opportunities for transactions, the Group will engage in fair transactions regardless of company size or nationality. Relations shall be built based on mutual cooperation and trust through transactions reflecting comprehensive, fair evaluation of matters, such as quality, price, delivery time, stability of supply, and CSR.

[Green procurement]
Procurement transactions shall be conducted in compliance with laws and regulations, and standards related to environmental protection and proactive efforts shall be made to lessen environmental impact through means, such as development of environmental management systems together with suppliers, thorough management of chemical substances, and promoting recycling of resources, to procure eco-friendly materials with low environmental impact.

[CSR procurement]
CSR procurement shall be advanced, based on consideration for matters, such as legal and regulatory compliance, respect for human rights, occupational health and safety, relevant efforts for responsible minerals sourcing, environmental protection, coexistence with society, timely and appropriate disclosure of information, and protection of confidential information.

Responsible Minerals Sourcing Policy

The IDEC Group will make the following commitments on sourcing of tantalum, tin, tungsten, and gold in the products manufactured by the Group.
1.The Group will not use minerals that are a source of funds for armed groups in Conflict-Affected and High-Risk Areas defined by the Organisation for Economic Co-operation and Development (OECD).

2.The Group will make efforts to source minerals from conflict-free smelters by performing due diligence on the origin and distribution areas of minerals based on survey using the CMRT (Conflict Minerals Reporting Template) and the EMRT (Extended Minerals Reporting Template) issued by the RMI (Responsible Minerals Initiative).

3.In the unlikely event that the use of conflict minerals, which are a source of funds for armed groups, is discovered, the Group will promptly take corrective action.

Code of Conduct for Procurement Activities

1. Compliance with the Subcontract Act and other legislation
When procuring materials, we will comply with the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors and other related legislation.

2. Prohibition of abuse of dominant bargaining position
We will not take advantage of our dominant bargaining position to treat our materials suppliers or business partners in an unfair manner.

3. Procurement activities at appropriate prices
To supply products to customers at appropriate prices, we will act to ensure that we can procure appropriately priced materials, etc.

4. Prohibition of demands for entertainment and gifts
We will not demand nor accept entertainment and gifts from our materials suppliers or business partners. We will not behave in a manner that allows our selection of materials suppliers or business partners and our procurement activities with them to be affected by whether or not entertainment and gifts are offered.

Implementation structure

For the IDEC Group’s CSR procurement, the SCM Division works in cooperation with other relevant departments to develop plans and activities to tackle sustainability issues.
The progress of these plans and activities is reported to the Sustainability Committee, which is chaired by the CEO, for deliberation and decision-making. The content discussed is audited by the Board of Directors.

CSR Procurement Guidelines

Based on these societal demands, these IDEC Group CSR Procurement Guidelines have been established to identify to members of the IDEC Group and its suppliers in more specific terms the Group’s thinking on CSR procurement.
These Guidelines clearly identify matters with which suppliers are expected to comply based on a shared understanding of our corporate social responsibility.
The IDEC Group strives to promote CSR procurement in cooperation with our suppliers.

IDEC Group CSR Procurement Guidelines

[Japanese]　[English]　[Simplified Chinese]　[Traditional Chinese]　[Thai]

(Click a language to see the details. * Downloadable)

Green Procurement

Recognizing coexistence with the planet to be a shared wish of humanity and with regard to the relationship between business management and the environment the IDEC Group aims to realize sustainable growth by acting based on assigning top priority to environmental protection in all of its business activities.
As part of these efforts, these IDEC Group Green Procurement Guidelines have been established based on environmental laws and regulations in Japan and around the world, and the Group carries out Environmental protection activities intended to lessen its environmental impact.

IDEC Group Green Procurement Guidelines

[Japanese (Text)] [English (Text)] [Simplified Chinese (Text)] [Traditional Chinese (Text)] [Thai]

[Japanese (Annex)] [English (Annex)] [Simplified Chinese (Annex)] [Traditional Chinese (Annex)]

(Click a language to see the details. * Downloadable)

Communicating with Suppliers

CSR Procurement Briefing

On August 7, 2018, the IDEC Group invited 50 major suppliers to our head office to attend a CSR Procurement Briefing. Our CEO explained the importance of CSR procurement, appealing for the understanding and cooperation of suppliers. The executive officer in charge of manufacturing and SCM explained our global supply chain. The general manager in charge of purchasing explained our Purchasing Policy and the IDEC Group CSR Procurement Guidelines.
At one of IDEC’s major factories in Suzhou, China, the suppliers exchange meeting has been held each year since 2017 and a CSR Procurement Briefing was held in 2019 with 28 major suppliers. In addition, at our production site in Ho Fa, Taiwan, a CSR Procurement Briefing was held in 2022 with the participation of 21 major suppliers. It was an opportunity to build strong partnerships with suppliers by introduction of IDEC products using demonstration equipment and touring of the environmentally friendly factory (with 1,200 solar panels installed on the roof). In 2023, we held our second CSR Procurement Briefing in Taiwan and CSR supplier meeting online in Thailand to provide explanations to our major suppliers.

CSR self-assessment

We actively encourage CSR self-assessments so that suppliers can check the progress of and make improvements to their CSR activities. Assessment items are divided into six categories in line with the contents of the IDEC Group CSR Procurement Guidelines.
There are a total of 34 questions, including questions relating to human rights issues such as child labor and forced labor, as well as considerations for the working environment and health and safety.
Each question is assessed on a five-point scale, based on the evaluation criteria.
We conducted this assessment at all major suppliers of IDEC Group production companies in Japan, China, Taiwan, and Thailand.
And we request suppliers with issues to address to make improvements.
Through this assessment, we are working to raise the level of CSR at all suppliers.

Surveys into responsible minerals sourcing

With regard to conflict minerals, we use templates (CMRT, EMRT) issued by the Responsible Minerals Initiative (RMI) and ask our suppliers to submit reports indicating that their materials do not contain 3TG*, cobalt, or mica refined in conflict-affected or high-risk areas.
* 3TG: tin, tantalum, tungsten, and gold

Publication of Supplier Newsletters

With the aim of gaining understanding with regard to the IDEC Group and strengthening cooperation with suppliers through dialogue, distributing information, and communication with suppliers, the Sustainability Management Department has been issuing a newsletter every December since 2018 and distributing it to approximately 300 companies via the Procurement Department.
In the newsletters, we not only introduce our business performance and corporate information, but also share ESG initiatives, such as environmental protection, social contribution, governance, and occupational safety, to our suppliers in Japan.
We will make continued efforts with our suppliers to develop a better society.