Procurement Policy
Coexistence and E, Q, C, D
(Environment, Quality, Cost, Delivery)
1. Fair Trade
We comply with laws and regulations and conduct fair and transparent business transactions.
2. Building Partnerships with Suppliers
We will select suppliers who capable of supplying products at appropriate quality, price and delivery times, and build partnerships with them.
3. Promotion of CSR Procurement
We procure from suppliers who respect social responsibility (Respect for human rights, reduction of environmental impact, etc.).
Our group procures from many suppliers around the world. We regard procurement as the foundation of our business activities, and based on our policy of "Coexistence and EQCD (environment, quality, price, delivery)," we base our transactions on fair transactions, building partnerships with suppliers, and promoting CSR-based procurement. In addition, throughout our supply chain, we promote responsible procurement activities that give consideration to sustainability, such as global environmental conservation, respect for human rights, and appropriate labor practices.
Supply Chain ESG Program
Our group is supported by the supply chain of a wide variety of suppliers. In order to promote responsible procurement activities that give consideration to sustainability throughout our supply chain, and to identify and address material risks and impacts from an ESG perspective, we operate the Supply Chain ESG Program.
Shimadzu Group CSR Procurement Guidelines
We have established the Shimadzu Group CSR Procurement Guidelines as items to be understood and observed by our suppliers in order to promote responsible procurement activities that give consideration to sustainability. In January 2022, our company established the Shimadzu CSR Procurement Guidelines as action guidelines related to the Shimadzu Group Sustainability Charter and procurement policies. By understanding and observing this Code of Conduct, we aim to build a sound supply chain that considers sustainability together with our suppliers.
tems in the Shimadzu Group CSR Procurement Guidelines
- Human Rights and Labor
Respect for human rights and diversity, elimination of child labor and forced labor, guarantee of freedom of association, employment of foreign labor, etc. - Safety and Health
Industrial hygiene, emergency preparedness, employee health management, etc. - Environment
Acquisition of certification, environmental impact, reduction of CO2, promotion of energy conservation, management of substances used, etc. - Ethics
Compliance, export control, information security, conflict minerals, harmony with local communities, etc. - BCP (Business Continuity Plan)
Status of training and preparation for implementation, including the existence of a plan.
Promotion Structure
Goal setting , progress confirmation and risk management by the Board of Directors.
Our company Group Sustainability Council has been established as an organization for promoting sustainability management in our company. Please refer to the following for the promotion structure.
Education and dissemination of the supply chain ESG program to internal procurement staff
In order to promote the Supply Chain ESG Program, we are actively informing procurement staff about the importance of responsible procurement practices, the Supply Chain ESG Program itself, the Partnership Building Declaration, and the Guiding Principles on Business and Human Rights. This initiative aims to build a robust and sustainable supply chain.
Main Initiatives
The Supply Chain ESG Program evaluates and supports suppliers based on the level of ESG risks associated with them and the products they manage.
(1) We present the Shimadzu Group Guidelines to all suppliers.
we have presented the Shimadzu Group Guidelines and requesting their their understanding and compliance. Additionally, we assess suppliers using external indicators as appropriate.
(2) For key suppliers
We have identified 117 important partners and distribute self-assessment questionnaires annually to confirm their compliance with CSR procurement standards.
In fiscal 2025, we introduced a CSR award system and conduct annual CSR self-assessments and interviews with key suppliers as needed. Based on the survey results, suppliers that receive high evaluations are recognized and awarded annually.
CSR Evaluation of Suppliers
Our company promotes CSR procurement in cooperation with its suppliers to build a sustainable supply chain. We distribute the Shimadzu Group CSR Procurement Self-Assessment to new suppliers to confirm their CSR initiatives and use the results as a basis for making decisions when selecting suppliers.
We also conduct self-assessments based on the Shimadzu Group CSR Procurement Guidelines every year, disclose the results, and provide advice and support to encourage compliance. We present an improvement plan to suppliers that do not meet our standards, and if there is no improvement, we review the situation, including suspending business with them. In addition, if their self-assessment results do not meet our company standards, we provide information on the reasons for the problems and improvement measures, and support them to meet the standards set forth in the guidelines.
We are also expanding our efforts in Japan to overseas suppliers. Through our overseas procurement bases (IPO), we have communicated the CSR Procurement Guidelines and conducted self-assessments for 42 companies. Moving forward, we will continue to strengthen communication with our suppliers and strive to build a sustainable supply chain through legal compliance, global environmental conservation, respect for human rights, appropriate labor practices, and fair business practices.
Support for Suppliers
We evaluate the results of the CSR Self-Assessment we receive from suppliers, and if suppliers do not meet our company Standards (deemed to have high ESG risks), we collaborate with them through interviews, phone calls, emails, and visits to consider and implement improvement measures to meet the standards set forth in the Shimadzu Group CSR Procurement Guidelines. In addition, in the field inspections that started in fiscal 2023, we provide suppliers with information on the background of problems and necessary improvement measures to support them.
Major Support Measures for Supplier Communicatio
- Workplace improvement proposals by the Health and Safety Center of the HR Department of Shimadzu Corporation
- Support for drafting internal regulations and manuals
- Support for drafting BCP (Business Continuity Plan)
Seminars for Suppliers
Partnerships with suppliers at the core of the supply chain are essential to promoting respect for human rights and reducing the environmental impact of procurement activities. To grow together with suppliers, Shimadzu will hold seminars every year to deepen understanding of the Shimadzu Group's CSR procurement through direct dialogue and to strengthen efforts throughout the supply chain.
CSR Information Platform
In order to promote CSR procurement among suppliers, we provide information and distribute health and safety news during supplier communication.
| Total number of suppliers | 1112 companies |
|---|---|
| Primary important suppliers | 118 companies |
| Spending ratio of primary important suppliers | 71.3% |
| Number of primary important suppliers that have implemented CSR | 117 companies |
| Total number of non-primary important suppliers | 61 companies |
| Number of non-significant suppliers that have implemented CSR | 22 companies |
| Percentage of significant suppliers that have been evaluated for CSR | 77.6% |
Human Rights Initiatives
Response to the Modern Slavery Act
Response to the Modern Slavery Act 2015
We oppose slave labor and human trafficking, recognize internationally proclaimed human rights, and conduct our business.
The Shimadzu Group discloses its annual initiatives and plans for future initiatives to comply with the UK Modern Slavery Act2015 in the form of a statement every year, which is promoted not only by the Shimadzu Group but throughout its supply chain.
To date, we have not found any cases of child labor or forced labor in our procurement activities. If any such issues are found, we will promptly seek corrective action and continue to engage in business activities that respect human rights.
Response to Conflict Minerals
Response to Conflict Minerals
Under Section 1502 of the Dodd-Frank Act enacted in July 2010, U.S. listed companies are required to report to the U.S. Securities and Exchange Commission (SEC) whether their products contain tantalum, tin, tungsten, and gold (these minerals and their derivatives are defined as conflict minerals regardless of origin) produced in the Democratic Republic of the Congo (DRC) and 9 adjoining countries. In January 2021, the EU Conflict Minerals Regulations came into effect in July 2017, requiring companies to conduct due diligence on their supply chains and submit annual reports. Although the Shimadzu Group is not directly subject to either the U.S. or European regulations, it supports the purpose of the regulations, has put in place an internal system regarding conflict minerals, and from the perspective of social responsibility, has established the Shimadzu Group Conflict Minerals Response Policy, which prohibits the use of conflict minerals associated with inhumane acts as raw materials.
- *The reference manual was prepared by the JEITA Responsible Minerals Procurement Study Group
Requests to the Supply Chain
We hold briefings for our suppliers on our Conflict Minerals Response Policy, and approximately 500 companies attend each meeting. We ask them to promote due diligence in cooperation with the entire supply chain, and to procure from conflict free melters (smelters not involved in conflicts).
Our company has established CSR Procurement Guidelines to ensure that all suppliers understand our company's Code of Conduct, which includes not conducting transactions that violate human rights or that provide a source of funds for such violations. We kindly request that our business partners also understand and act in accordance with our Code of Conduct.
Conflict Minerals Survey
We use the CMRT to survey the use of conflict minerals and information on smelters.
In this survey, we check whether the minerals are procured from a smelter listed in the RMAP, and if not, whether the smelter uses minerals that are not involved in the conflict.
If we find that a smelter is inappropriate, we will make necessary improvements to remove the relevant minerals from the supply chain of the relevant products, parts, and materials in cooperation with related suppliers.
Efforts by industry groups
We participate in JEITA’s (Japan Electronics and Information Technology Industries Association) Working Group on Responsible Mineral Sourcing and collaborate with industry organizations. Through JEITA, we work with the U.S. Responsible Minerals Initiative (RMI) to develop standards and tools—such as due diligence questionnaires—for efficient survey operations, and to conduct outreach to smelters and refiners.
Human Rights Due Diligence
Basic Approach
Our company has established and operates a human rights due diligence system based on the "United Nations Guiding Principles on Business and Human Rights." We also respect all human rights stipulated in the ILO Core Labor Standards and the International Bill of Human Rights.
Our company is a signatory to the United Nations Global Compact (UNGC), and supports the 10 Principles of the Global Compact.
Scope of Application
Our company's human rights due diligence program applies not only to all executives and employees of the Shimadzu Group, but also to all of our business partners. Through this program, we will work with our business partners to promote respect for human rights.
Correction and Remedy
If our company's business activities have had a negative impact on human rights, or if we are found to be involved in such an impact, we will endeavor to respond honestly and transparently through dialogue with the relevant parties, in accordance with international human rights standards. In addition, our company will give consideration to ensuring that those affected have the means to rectify and remedy the situation, and will provide support as needed, not limited to the complaint mechanism.
Complaint Processing Mechanism
Our company has an internal reporting system (hotline), an external hotline, and a harassment hotline available to all employees. Hotlines have also been established at domestic group companies. If it becomes clear that we have caused or been involved in a negative impact on human rights, we will work to correct or remedy the situation through necessary procedures. We have also established a contact point for external parties to contact us.
Education
Our company will continue to provide appropriate education and training to its officers and employees. We will also promote human rights initiatives for our business partners.
Information Disclosure
Our company will appropriately disclose the status of its efforts to respect human rights through its website, integrated reports, etc.
Identification of Human Rights Risks
Our group will accurately identify human rights risks associated with its business activities, and develop and continuously operate a system to prevent and mitigate such risks in cooperation with relevant stakeholders.
Dialogue and Consultation with Stakeholders
Our company emphasizes the perspective of stakeholders who are or may be affected by human rights in its business activities, and promotes dialogue and consultation with relevant stakeholders at appropriate times to understand and improve human rights issues.
Specific Initiatives
Our company is implementing the following specific initiatives to respect human rights. By steadily continuing these initiatives, we will fulfill our corporate social responsibility and contribute to the realization of a better society.
| Target | Implementation details |
|---|---|
| For employees | Formulation of guidelines and establishment of e-learning enlightenment and consultation desks |
| For managers | Distribution of booklets and harassment training |
| For business partners | Investigation of human rights violations (questionnaire, etc.) |
Green Procurement
In an effort to embody our core corporation principles of “Realizing our Wishes for the Well-being of both Mankind and the Earth”, we have made integrating our business activities with global environmental preservation one of our highest operational priorities.
[Request] Regarding the delivery of products containing batteries
If the products you are delivering to us contain batteries, please be sure to notify us in advance.
- *This applies to all batteries, including button batteries, lithium-ion batteries, and nickel-metal hydride batteries.ment Standards, List of Banned and Controlled Substances etc
1. Green Procurement Standards, List of Banned and Controlled Substances etc
Green Procurement Standards, First Edition, Revision M
List of Banned and Controlled Substances
- English (PDF : 70 KB)
Detailed Substance Lists with CAS Numbers
- English (PDF : 217 KB)
RoHS Directive Exemptions
- English (PDF : 393 KB)
2. Managing chemical substances in products
We would like you to use the latest version of the survey tools provided by the Joint Article Management Promotion-consortium (JAMP) for the survey of chemical substances.
Please download and use the latest tools from the JAMP website below.
Quality Initiatives
Quality Enhancement Across the Supply Chain
Our company requires all business partners to comply with the quality standards established by the Shimadzu Group. Under the Master Transaction Agreement, we work with suppliers to establish an integrated quality management system.
We also provide technical training programs for suppliers and have introduced a qualification certification system. Through these initiatives, we deepen daily communication aimed at quality improvement and technical development, thereby enhancing the competitiveness of the entire supply chain.
For new suppliers, we evaluate and screen their quality management systems and CSR initiatives in advance as part of the onboarding process for the Master Transaction Agreement, and form partnerships only with those who meet our standards. After transactions commence, we conduct regular quality audits of partner companies that have executed Quality Assurance Agreements (currently 121 companies) to maintain and continually improve high quality standards.
Technical Skill Development Activities
Skill Competitions
We hold technical skill competitions for our suppliers to promote quality improvement and strengthen technical capabilities. The competitions cover three disciplines: soldering, machining, and welding. Participants mutually share up-to-date technical knowledge and standardized work practices, which contributes to maintaining and improving quality in mass-production environments. So far, a total of 161 individuals from 72 companies have taken part across the three disciplines. We will continue to reinforce our partnerships and pursue continuous quality improvement in manufacturing.
Skill Development Workshops
We hold technical training workshops twice a year with our suppliers to deepen technical know‑how and stabilize quality. The workshops focus on practical, on‑the‑job topics such as reading engineering drawings, proper use of measuring instruments, fundamentals of drill machining, and the latest machining techniques.
Conducted with lectures and hands‑on sessions by measuring‑instrument and machining experts, the workshops provide a forum to share up‑to‑date technical insights and standardized work practices, and they have received favorable feedback from participating companies. Many suppliers have participated to date, contributing to the maintenance and improvement of quality in mass‑production settings.
| Workshop theme | Participants |
|---|---|
| Seminar: Case studies of on-site improvement | 37 |
| Workshop: Introducing robots for small-scale operations | 27 |
| Collection and utilization of measurement data - case studies | 15 |
| Proper torque management, and use/storage of torque tools | 16 |
| Correct use of oscilloscopes and digital multimeters | 12 |
Certification Scheme
Shimadzu Skills Certification(Management of Special-Process Qualifications）
To maintain core manufacturing skills that underpin product quality, we have established our own certification systems for welding and soldering skills. Under unified evaluation criteria, we certify skills and promote continuous improvement through a qualification renewal system. Qualification data for group companies and suppliers are centrally managed to visualize skill levels. Our in‑house certification programs for welding and soldering have been in operation since 1980 and have a 46‑year track record. As of February 2026, there are 344 certified welders and 600 certified soldering technicians.