Sustainable Procurement

The JVCKENWOOD Group recognizes that constructing a sustained supply chain is key for realizing not only company growth but also a sustainable society, and aims to pursue this idea globally.


JVCKENWOOD Group Procurement Policy


JVCKENWOOD CSR Procurement Guidelines

Promoting CSR Procurement

The JVCKENWOOD Group works on the following initiatives in order to ensure socially responsible procurement practices. These initiatives are designed to ensure respect for human rights and fair labor practices through the prohibition of child and forced labor as well as the establishment of appropriate wage and working hour standards. In addition, they enable us to assess suppliers’ quality standards, cost, turnaround time, and technological capability.


Initiatives for suppliers

We have New Supplier Selection Standard that address not only quality, cost, turnaround time, technological capability, and the ability to maintain a stable supply but also the sustainable use of resources, chemical substance management, and other aspects related to the environment, human rights, and occupational safety. 

As part of our ongoing assessment of sustainability in areas such as the environment, human rights, and labor safety, we sent out self-assessment sheets (SAQ) to all our existing suppliers in March 2021, and received responses from more than 90% of our major suppliers.


Implementation of supplier continuous evaluation and follow-up

The JVCKENWOOD Group implements supplier continuous evaluations and follow-ups in order to identify risks in its supply chain. We use evaluation results as one of the factors in selecting new suppliers and in determining whether or not to continue doing business with suppliers.


Supplier Communication

The JVCKENWOOD Group is strengthening communication with business partners in order to realize sustainable procurement together with them. At the "Partners Meeting" held every year, we thoroughly disseminate the CSR Procurement Guidelines. In FY2020, we were unable to hold the event due to the effects of the Corona disaster, but we plan to continue to provide opportunities for communication with our business partners to the extent possible.


Approaches to Conflict Minerals

Our stance on conflict minerals

Although it is not subject to the restrictions imposed by the U.S. Dodd–Frank Act, JVCKENWOOD is committed to advancing sustainable procurement globally. It is working to establish a responsible supply chain and ensure responsible mineral sourcing based on its policy of not using any components or parts that may contain four minerals (tin, tantalum, tungsten, and gold) that finance or benefit armed groups.


Specific Initiatives

Significant human rights violations and environmental destruction by armed groups in the Democratic Republic of the Congo and surrounding countries have been broadly recognized as serious issues in the international community. While it has been noted that the minerals produced in this region finance or benefit armed groups, the U.S. Dodd–Frank Wall Street Reform and Consumer Protection Act (Dodd–Frank Act) names four minerals (tin, tantalum, tungsten, and gold) produced and refined in this region as conflict minerals and requires companies to disclose information on the smelters and refiners that supply components and parts that contain these minerals. In response, JVCKENWOOD has sent a conflict minerals questionnaire to its primary suppliers involved in the procurement of approximately 11,000 components/parts subject to the restrictions to identify 3TG* smelters and refiners. During the period FY2014–FY2018, JVCKENWOOD sent the questionnaire to a cumulative total of 1,558 suppliers, 96.22% of which responded.

Moreover, as a member of the Responsible Minerals Trade Working Group of the Japan Electronics and Information Technology Industries Association (JEITA), JVCKENWOOD is actively working to raise awareness for responsible sourcing of minerals outside the company, for example, by serving as a facilitator and a lecturer at Responsible Minerals Sourcing Inquiry Briefings held by the JEITA.

 

A proactive approach to conflict minerals is important for establishing a responsible supply chain. Due attention should be paid so that we will not become complicit in human rights violations in the course of sourcing materials. The JVCKENWOOD Group will continue its group-wide efforts to address the issue of conflict minerals in collaboration with various other stakeholders, including public and private sector partners engaged in the establishment of responsible supply chains for minerals.

*3TG: an abbreviation meaning tin, tantalum, tungsten and gold; the term refers collectively to these four minerals and their derivatives


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