Activities on Procurement

TAIYO YUDEN Group conducts "Global Procurement" and "Fair Trade" in accordance with TAIYO YUDEN Group Basic Procurement Policy.
Local-content Ratio of each subsidiary in FY2022 is as follows.

Communication of CSR procurement policy

TAIYO YUDEN Group shares ”TAIYO YUDEN Group CSR Procurement Guidelines (CSR Procurement Requirements)” (hereinafter referred to as "CSR Procurement Guidelines") specifying compliance matters such as human rights, labor, environment, health and safety, fair trade, ethics, management systems, etc. 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 declare to comply with the requirements.

Result of agreements with “CSR Procurement Guidelines”

Definition of critical suppliers

TAIYO YUDEN Group defines suppliers having high volume of business or supplying critical materials with a large transaction amount accounting for 80% or more of TAIYO YUDEN Group purchase as critical suppliers and conducts CSR assessment.

CSR Procurement Self-Assessment

TAIYO YUDEN Group assesses human rights, labor, environment, health and safety, fair trade, ethics, management systems, etc. of suppliers and deals with suppliers that meet the Group's criteria. In FY2022 also, TAIYO YUDEN Group has assessed human rights, labor, environment, health and safety, fair trade, ethics, management systems, etc. of new suppliers by "CSR Self Check Sheet.^*"
TAIYO YUDEN Group regularly conducts assessments for existing suppliers by using CSR Self Check Sheet. TAIYO YUDEN Group requests corrective actions from suppliers failing to meet the Group's criteria and identified as high risk as a result of assessment.

Also, as RBA Code of Conduct was revised in 2021, TAIYO YUDEN Group has revised "CSR Procurement Guidelines". TAIYO YUDEN Group has conducted self-assessments of 535 existing suppliers by "CSR Self Check Sheet" which incorporates the revised contents. Compared to the whole result, management systems tend to be lower and operational rules are not documented. Based on the assessment results, no high risks have been identified from any of TAIYO YUDEN Group's suppliers.

* "CSR Self Check Sheet" is based on RBA Code of Conduct. It sets human rights, labor, environment, health and safety, fair trade, ethics, management systems and the like as confirmation items, and it includes RBA requirements such as compliance of maximum working hours, legal minimum wages, avoidance of child labor and forced labor, air emission control and the like.

Physical inspection audits

TAIYO YUDEN Group regularly conducts CSR audits that review human rights, labor, environment, health and safety, fair trade, ethics, management systems, etc. TAIYO YUDEN Group requests corrective actions from suppliers failing to meet the Group's criteria and identified as high risk as a result of audits. Based on the results of the audits conducted in FY2022, there were no material violations including serious violations of employee's rights.

Physical inspection audits results : 4 suppliers

Procurement-Related Education

Green Procurement

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.

Promoting Green Procurement

Reduction of GHG in Supply Chain

TAIYO YUDEN Group set a target to reduce GHG emission by 42% compared to 2020 by 2030. To reduce the absolute value of GHG emissions, TAIYO YUDEN Group sets target values in accordance with the SBTs (Science-Based Targets).
In 2022, TAIYO YUDEN Group conducted a survey of critical suppliers to ascertain the status of GHG emissions and the setting of reduction targets. TAIYO YUDEN Group will continue to ask critical suppliers to assess and monitor GHG emissions and to set reduction targets.

In order to reduce the risks regarding human rights and labor, TAIYO YUDEN Group shares “CSR Procurement Guidelines” and starts to deal with suppliers declare to comply with the requirement such as “maximum working hours”, “legal minimum wage”, “avoidance of child labor and forced labor”, etc. Also, TAIYO YUDEN Group assesses suppliers by "CSR Self Check Sheet" and conduct CSR audits for critical suppliers and requests corrective actions from suppliers failing to meet the Group's criteria as a result of assessment.

Human Rights and Labor

Responsible Minerals Procurement

UNGC (United Nations Global Compact)

The UNGC is the world's largest sustainability initiative, bringing together the United Nations and the private sector to build a healthy global society.
TAIYO YUDEN participates in UNGC as a member.

UN Global Compact

TCFD (Task Force on Climate-related Financial Disclosures)

TAIYO YUDEN has endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), which was established by the Financial Stability Board (FSB).

JEITA (Japan Electronics and Information Technology)

JEITA is an industry association of companies in the field of electronics and information technology. TAIYO YUDEN participates in JEITA as a member.

JEITA

TAIYO YUDEN is a member of "Responsible Minerals Trade Working Group" in JEITA.

JEITA "Responsible Minerals Trade Working Group"

JAMP (Joint Article Management Promotion-consortium)

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.