Cooperating with Suppliers
Considering all suppliers as "partners who should grow together with Lintec", the Lintec Group strives to establish relationships built on trust with them. When selecting suppliers, we evaluate them appropriately based on the principle of free competition. We engage in fair and transparent transactions, and ensure legal and ethical compliance in our procurement activities.
Lintec has established the Lintec Procurement Policy, the Lintec Green Procurement Policy, and the Lintec Lumber Pulp Procurement Policy, all of which are based on CSR. Its procurement activities follow the Policies.
We request suppliers, on various occasions, to ensure CSR activities from multiple perspectives, including respect for human rights, occupational health and safety, information security, and corporate ethics.
In fiscal 2018, we asked 112 companies, which we selected out of roughly 500 domestic material suppliers based on the transaction amount and from the BCP* perspective, to complete a questionnaire, and 111★ of them did so. The survey covered CSR-related items, including legal compliance, prohibition of child labor, and safe/healthy working environments. We are also using the survey results in supplier evaluation.
We will continue to improve procurement activities and enhance cooperation with our suppliers.
- ★ For detailed data, click here
- * BCP stands for a Business Continuity Plan. It is a plan developed in advance to enable the minimization of damage and the continuation or early resumption of business in the event that a company encounters an emergency situation such as an accident or disaster.
Supplier questionnaire survey
Questionnaire items (overview)
|Corporate management||Financial status|
|Management/Labor||Legal compliance/Corporate ethics
Labor (respect for human rights, working hours, wages, etc.)
Information provision (information on products, technology, industry, etc.)
|Quality||Third-party certification (ISO 9001, etc.)
Management system (suppliers, raw materials, manufacturing processes, products, etc.)
|Environment||Third-party certification (ISO 14001, etc.)
Chemical substances management system
Environmental Assessment at Suppliers
Lintec asks its suppliers to respond to the supplier questionnaire survey. A check sheet survey consisting of a number of categories, it is compiled jointly by our Procurement Department, Quality Assurance Department, CSR Management Office, and Environmental & Safety Department. Using collected responses, we perform supplier evaluations and feed results back to the suppliers. We may request in writing companies with low scores to consider taking improvement measures.
In the category of the environment, particular importance is placed on the management of raw materials containing hazardous chemicals. Major evaluation items are related to the establishment of chemical substance control systems, chemical substance management systems, data collection, and raw material lot traceability. We visit suppliers as necessary to perform on-site inspections and ask them to take improvement measures, depending on the result.
For procurement with lower environmental impact, the Lintec Group is ensuring thorough chemical substance management for raw materials, parts, and secondary materials. We conduct investigations into substances contained not only in new materials that we procure for the first time but also in materials that we have continuously procured in order to ensure compliance with new regulations.
In fiscal 2018, we asked suppliers to respond to our survey based on the REACH Regulation*1 (19th and 20th candidate lists) and chemSHERPA*2 (version 1.06), covering around 5,000 raw materials. Together with suppliers, we will continue to promote environmental protection activities and ensure control of chemical substances.
- *1 REACH Regulation: A chemical substance regulation in the EU on the "Registration, Evaluation, Authorization and Restriction of Chemicals". Registration is required when exporting a chemical substance into EU states in quantities of one metric ton or more per year. Notification must also be submitted to the authorities when a chemical substance falling under the category of "candidate for required authorization" is present in a product at more than 0.1 percent of the mass of the object.
- *2 chemSHERPA: A scheme, recommended by Japan's Ministry of Economy, Trade and Industry, for communicating information about chemical substances contained in products. The mechanism is aimed at properly managing chemical substances contained in products across supply chains, from upstream to downstream, to ensure continued compliance with tighter regulations.
Lintec recognizes that conflict minerals, mined to fund armed conflict, are a serious social problem, and investigates whether materials it uses include metals from mines that serve as funding sources for armed groups.
We will continue to confirm that our supply chain is not funding armed groups and conduct procurement management that avoids the use of conflict minerals.
- * Conflict Minerals: Metals derived from conflict minerals defined in the Dodd-Frank Wall Street Reform and Consumer Protection Act include tantalum, tin, tungsten and gold.
Child Labor/Forced Labor
The Lintec Group is aware of the grave issues relating to child labor and forced labor. As such, Lintec conducts a supplier survey every year to monitor the relevant situation. In fiscal 2018, no risks associated with child labor or forced labor were identified at our business sites and suppliers.
BCP with Suppliers
The ability of suppliers to continue their businesses in the event of a disaster is critical for Lintec to secure the stable supply of its products to customers. Lintec conducts evaluation of the suppliers to determine their business continuance ability. Since fiscal 2014, Lintec has evaluated suppliers for all products to confirm the following statuses: (1) the stock volumes of the raw materials for Lintec, (2) procurement routes for the raw materials, (3) disaster control measures taken in their production sites and facilities, and (4) availability of a substitute production site.
Lintec also conducted examinations of some suppliers to confirm whether they had BCPs and a management system to implement the BCPs, and whether they had organizations and procedures to cope with an incident*. All our suppliers will be subject to these examinations in the future.
- *Incident: a situation which cause or may cause business interruption, disturbance, loss, emergency or hazard.