CSR Procurement Initiative

TAIYO YUDEN Group implements a CSR procurement promotion program consisting of four steps: obtaining agreement with the "TAIYO YUDEN Group CSR Procurement Guidelines," risk assessment using the CSR Self Check Sheet, CSR audit, and corrective action. Through these steps, TAIYO YUDEN Group encourages suppliers to understand CSR and evaluates their efforts, leading to continuous improvement.

TAIYO YUDEN Group shares "TAIYO YUDEN Group CSR Procurement Guidelines" specifying matters to be observed such as human rights, labor, environment, health and safety, fair trade, ethics, management systems, etc. when starting a transaction with new suppliers in order to have new suppliers understand the Group's CSR policies including environmental problems, and TAIYO YUDEN Group starts to deal with suppliers that submit agreement regarding matters to be observed.

TAIYO YUDEN Group assesses human rights, labor, environment, health and safety, fair trade, ethics, management systems, etc. of new significant suppliers when TAIYO YUDEN Group starts transactions and deals with suppliers that meet the Group's criteria. In FY2024 also, TAIYO YUDEN Group has assessed CSR risks of all targeted new suppliers (20 out of 20 suppliers) by "CSR Self Check Sheet.^*"
TAIYO YUDEN Group regularly conducts assessments for existing significant suppliers by using CSR Self Check Sheet. TAIYO YUDEN Group requests corrective actions and supports improvement of suppliers failing to meet the Group's criteria of achievement level of 75% and identified as high risk as a result of assessment.
Also, as RBA Code of Conduct was revised in 2024, TAIYO YUDEN Group has revised "TAIYO YUDEN Group CSR Procurement Guidelines". TAIYO YUDEN Group has conducted self-assessments of 553 existing suppliers until FY2024 by "CSR Self Check Sheet" which incorporates the revised contents. According to the result of self-assessment, the score of management systems tends to be lower compared to the overall score, and there are especial problems on questions regarding internal and external communication. Based on the assessment results, no high risks including serious violations of employee's right etc. have been identified from any of TAIYO YUDEN Group's suppliers.

TAIYO YUDEN Group regularly conducts CSR audits that review human rights, labor, environment, health and safety, fair trade, ethics, management systems, etc. for suppliers whose assessment results of CSR Self Check Sheet are low and identified as high risk. If non-conformances are found as a result of the audit, TAIYO YUDEN Group requests submission of corrective action plans and completion reports. Based on the results of the audits conducted in FY2024, there were no major non-conformances, including serious violations of employee's rights. However, TAIYO YUDEN Group found that three suppliers have room for further improvement in the management and monitoring of working hours and the internal dissemination of the anti-harassment and reporting system. Specifically, TAIYO YUDEN Group requested suppliers to review the method and frequency of checking working hours, and implementation of educational activities on harassment by using bulletin boards to continuously disseminate information within the company. Of the suppliers that were requested to make improvements, two have completed them, and the remaining one is being asked to complete them by the end of FY2025.

To realize the overriding goal of TAIYO YUDEN Group's environmental preservation activities—supplying products with less environmental impact—TAIYO YUDEN Group has established "Green Purchase Standard" seeking customer understanding and, at the same time, giving priority to procuring materials and parts with lower environmental impacts.
TAIYO YUDEN Group assesses suppliers' "Green Procurement Activities" annually, promoting study of alternatives for suppliers that are high risk.

TAIYO YUDEN Group sets a target to reduce GHG emission of Scope 1 and 2 by 42% compared to 2020 by 2030 and Scope 3 (Category 1 and 3) by 25% compared to 2021 by 2030. To reduce the absolute value of GHG emissions, TAIYO YUDEN Group sets target values in accordance with the SBT (Science-Based Targets) and received SBT Certification from an international initiative, "SBTi," for its GHG reduction targets, which have been approved as science-based targets.
As a part of impact reduction for environment, TAIYO YUDEN Group conducts a survey to significant suppliers to ascertain the status of GHG emissions and the setting of reduction targets. In FY2024, TAIYO YUDEN Group provided explanatory material of the way to calculate Scope 1, Scope 2, and Scope 3 Category 1, and calculation tool to suppliers who had not yet calculated their GHG emissions, and supported them to calculate GHG emissions. As a result, TAIYO YUDEN Group was able to have more suppliers calculate their GHG emissions than the previous year. TAIYO YUDEN Group will continue our efforts to reduce GHG emissions throughout the supply chain.

JAMP manages information on chemical substances contained in an article appropriately and aims to establish and disseminate the concrete system to disclose and transmit the information through companies on supply chain smoothly. TAIYO YUDEN participates in JAMP as a member.