Supply chain management

Basic policy

We shall conduct transactions based on symbiosis and EQCD (environment, quality, cost, and delivery).

General rule

(1) Conducting Transactions Fairly

(1) Conducting Transactions Fairly

We shall observe all applicable laws and regulation and conduct transactions with fairness and transparency.

(2) Establishing Partnerships with Suppliers​

(2) Establishing Partnerships with Suppliers

We shall select and establish partnerships with suppliers that are able to supply products with appropriate quality, price, and delivery lead time.

(3) Promoting Procurement Based on CSR

(3) Promoting Procurement Based on CSR

We shall procure products from suppliers that respect social responsibility (such as respecting human rights and reducing environmental impact).

Measures for Conflict Minerals

Compliance with the Modern Slavery Act 2015

Green Procurement

Efforts

Measures for CSR Procurement

To ensure compliance with restrictions on the chemical substances contained in products and other various international laws and regulations, we are actively engaged in green procurement practices that prioritize procuring raw materials with a minimal environmental impact. In addition to the three main measures of obtaining non-inclusion guarantees from suppliers, auditing suppliers for RoHS compliance, and analyzing chemical components in sampled procured items, we also conduct annual informational presentations to promote a deeper understanding of conflict minerals, slavery laws in various countries, SDGs, and other issues. We also monitor green procurement rates each month, even for office supplies, and have been participating in the supply chain subcommittee of the Global Compact Network Japan since September 2019. Furthermore, for member companies of the Shimadzu Cooperative Association, we also conduct environmental seminars and promote supplier environmental activities, such as jointly collecting waste plastic or diagnosing energy savings.

Domestic Suppliers
Monitored

746 of 794 (94 % implementation rate)
Breakdown:
250 of 250 outsource suppliers (100 % implementation rate)
496 or 544 purchasing suppliers (91 % implementation rate)

  • Note: The denominator is the number of applicable companies.
Percentage of Non-Inclusion
Guarantees Obtained

100 % (for 95,600 items)

  • Note: For items subject to RoHS ban of six substances

Eliminating Human Rights Violations from the Entire Supply Chain

Requirements for suppliers in the procurement policy are summarized in the CSR Procurement Policy, which clearly specifies fulfilling social responsibility for respecting human rights throughout the entire supply chain. In addition, all suppliers are notified in writing and required to comply with the policy.
We also survey suppliers within and outside Japan to confirm they have measures for respecting human rights and to check for any human rights violations in their business practices. If that survey reveals any problems with child labor or forced labor, for example, then the supplier is asked to quickly implement corrective measures. We also continue to survey suppliers on an ongoing basis to ensure they are not complicit in any human rights violations in their business practices or supply chains, such as child labor, forced labor, or human trafficking.

Measures and Policies for Conflict Minerals

In accordance with the Shimadzu Group Policy Regarding Conflict Minerals specified for conflict minerals*, if any part or raw material used in Shimadzu products is discovered to contain a conflict mineral, Shimadzu will immediately meet with the supplier to discuss appropriate actions, such as immediately discontinuing the use of such part or raw material. That does not mean Shimadzu will never accept any conflict mineral produced in the Democratic Republic of Congo or its adjoining countries, but rather that Shimadzu will only accept those that are procured in accordance with appropriate laws that prevent funding armed groups in those regions (certified as DRC conflict-free).
By managing transactions in accordance with the Organisation for Economic Co-operation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and by investigating refineries using the Conflict Minerals Reporting Template (CMRT), which is based on the Responsible Minerals Initiative (RMI), we are implementing measures to understand the status throughout the entire supply chain and avoid using such materials.

Analyzing Procured Parts, Materials, and Other Items for Substances Banned by RoHS

Randomly sampled RoHS-compliant parts, assemblies, and secondary materials procured from suppliers are analyzed in Shimadzu’s RoHS laboratory to confirm the content of substances banned by the RoHS directive. In February 2019, those measures were strengthened by also installing a gas chromatograph mass spectrometer (GC-MS) system in the laboratory. The RoHS laboratory also accepts non-Shimadzu visitors to share Shimadzu’s analytical expertise using the GC-MS system.

Samples Analyzed

10,000 for six RoHS-banned substances and 3,000 for four additional banned substances

  • Note: Total as of FY 2019-end. 95,600 applicable items (subject to RoHS ban of six substances) are regularly sampled by the system.

Compliance with the Modern Slavery Act 2015

Shimadzu opposes slave labor and human trafficking, recognizes internationally declared human rights, and conducts business practices accordingly. Each year, Shimadzu publishes a statement regarding the measures for compliance with the Modern Slavery Act 2015 implemented during that year and planned for the future.
Measures for FY 2018 were published in August 2019. Similarly, measures for FY 2019 and subsequent years are scheduled to be published every year. Currently, no cases of child labor or forced labor problems have been discovered in our procurement activities. If any are discovered, corrections will be promptly implemented to quickly resume business activities that are respectful of human rights.

Informational Presentations for Suppliers

It is essential that we form a partnership with suppliers, who are central to our supply chain, to ensure human rights are respected in procurement activities and promote reducing our environmental impact. To promote a deeper understanding of our measures, each year we conduct informational presentations for suppliers in two locations, Kyoto and Tokyo, which are attended by over 500 suppliers each year.
In December 2018, as a project of the Shimadzu Cooperative Association, we conducted an SDGs workshop with a guest speaker from a leading company that is actively engaged in SDGs activities and was selected as one of the top 100 companies practicing new and diversity management methods. In addition, at the general meeting of the Shimadzu Cooperative Association in May 2019, we had a seminary where the Labour Standards Inspection Office explained key points about working practice reform laws.
In addition, as part of its CSR procurement promotion, Shimadzu conducts questionnaires to suppliers. This questionnaire includes themes such as environmental conservation and human rights. The results of the questionnaire are analyzed and evaluated, and used to select suppliers and implement improvement activities.

Informational Presentations for Suppliers

Informational Presentations for Suppliers

[About the previous questionnaire to suppliers]

Overview of supply chain

Overview of supply chain

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