Social Report

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.

Fair Transactions

CSR Procurement

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.
We also confirm our suppliers’ CSR status (legal compliance, underage employment prohibited, safety / health, etc.) in the supplier questionnaire survey and ask for improvement when deemed necessary. We will continue to improve procurement activities and enhance cooperation with our suppliers.

Supplier Assessment and Improvement

LINTEC asks its suppliers to respond to the supplier questionnaire survey in order to strengthen the relationship of trust we have with them. In fiscal 2022, based on the responses to the survey conducted the previous year, we performed supplier evaluations and fed back the results to 142 departments in 110 companies. Among them, we asked 11 departments for improvement, and efforts toward this are in progress.

Items of questionnaire survey (outline)

Slide to view.

Corporate management Financial status
Management / Labor Legal compliance / Corporate ethics
Labor (respect for human rights, working hours, wages, etc.)
BCP
SDGs initiative
Information security
Service Cost
Deadline
Survey request (environment, material search, BCP, etc.)
Information provision (information on products, technology, industry, etc.)
BCP Accident status check (production site, product, logistics, etc.)
Actions outside of Japan Provision of information on overseas industries, compliance with overseas laws
  • BCP: 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.

Green Procurement

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 2022, we conducted surveys based on the REACH Regulation★1 (28th candidate list) and chemSHERPA★2 (version 2.06).
Together with suppliers, we will continue to promote environmental protection activities and ensure control of chemical substances.

  • ★1REACH 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.
  • ★2chemSHERPA: 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.

Responsible Sourcing of Minerals

LINTEC recognizes that minerals extracted in Conflict-Affected and High-Risk Areas (CAHRAs) has evolved into a major social issue, as it could fund armed groups and lead to human rights abuses and labor problems. With a view toward responsible sourcing of minerals, LINTEC conducts rigorous surveys on its supply chains by employing the Conflict Minerals Reporting Template (CMRT) and Extended Minerals Reporting Template (EMRT) to ensure that the raw materials it uses are free of conflict minerals, while referencing the “Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas” of the Organization for Economic Cooperation and Development (OECD) (the OECD Guidance).

  • Minerals: Metals derived from conflict minerals as defined in the Dodd-Frank Act (U.S. federal law to reform the financial system) are tantalum, tin, tungsten, and gold (3TG).
    LINTEC added cobalt and mica to the minerals subject to its survey.

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.

BCP★1 with Suppliers

The ability of suppliers to continue their businesses in the event of a disaster is critical for LINTEC to secure stable supplies of its products to customers. LINTEC conducts evaluations of its suppliers to determine their business continuance ability. LINTEC has evaluated major suppliers to confirm the following situations: (1) stock volumes of raw materials LINTEC uses, (2) procurement routes for the raw materials, (3) disaster control measures taken at their production sites and facilities, and (4) availability of substitute production sites.
LINTEC also requests suppliers to cooperate in establishing organizational systems to introduce and operate BCPs, and in developing organizations and procedures to take responsive actions in the event of an incident★2.

  • ★1BCP: 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.
  • ★2Incident: A situation which cause or may cause business interruption, disturbance, loss, emergency or hazard.