We shall conduct transactions based on symbiosis and EQCD (environment, quality, cost, and delivery).
(1) Conducting Transactions Fairly
We shall observe all applicable laws and regulation and conduct transactions with fairness and transparency.
(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.
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 speci¬fies ful¬filling social responsibility for respecting human rights throughout the entire supply chain. In addition, all suppliers are noti¬fied in writing and required to comply with the policy.
We also survey suppliers within and outside Japan to con¬firm 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 traf¬ficking.
Measures and Policies for Conflict Minerals
In accordance with the Shimadzu Group Policy Regarding Conflict Minerals specifi¬ed 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 (certi¬fied 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 re¬fineries 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 con¬firm 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.
Compliance with the Modern Slavery Act 2015
Shimadzu opposes slave labor and human traffi¬cking, 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 Of¬fice explained key points about working practice reform laws.
Informational Presentations for Suppliers