Responsible Supply Chain
Responsible Supply Chain
Policy
At 20 global production sites, the Group procures such raw materials as active materials for batteries as well as various components ranging from various processed parts to electronic devices, from about 1,000 tier 1 suppliers in Japan and overseas. We recognize that, among them, we are required to fulfill our corporate social responsibility not only between the tier 1 suppliers and the Company but also through-out the entire supply chains that spread in elaborate networks in various countries, from manufacturers of raw materials, such as upstream resources and minerals, to tier 1 suppliers and delivery to the Group’s domestic and overseas production sites.
To fulfill this social responsibility, we build partnerships with our suppliers on a global basis. Based on mutual trust and cooperation, we maintain and improve the quality of purchased products, realize competitive prices, promote responses to market changes, and create the product value required by our customers while studying together with our suppliers, who are our indispensable partners. For the realization of this product value creation, it is essential to comply with laws and regulations, social norms, and corporate ethics, and to fulfill social responsibilities, such as human rights, labour, health and safety, global environmental conservation, and information security. Together with our suppliers, the Group promotes procurement activities that can guarantee that we are fulfilling our social responsibilities while building a sustainable supply chain with low environmental impact.
Policy
At 20 global production sites, the Group procures such raw materials as active materials for batteries as well as various components ranging from various processed parts to electronic devices, from about 1,000 tier 1 suppliers in Japan and overseas. We recognize that, among them, we are required to fulfill our corporate social responsibility not only between the tier 1 suppliers and the Company but also through-out the entire supply chains that spread in elaborate networks in various countries, from manufacturers of raw materials, such as upstream resources and minerals, to tier 1 suppliers and delivery to the Group’s domestic and overseas production sites.
To fulfill this social responsibility, we build partnerships with our suppliers on a global basis. Based on mutual trust and cooperation, we maintain and improve the quality of purchased products, realize competitive prices, promote responses to market changes, and create the product value required by our customers while studying together with our suppliers, who are our indispensable partners. For the realization of this product value creation, it is essential to comply with laws and regulations, social norms, and corporate ethics, and to fulfill social responsibilities, such as human rights, labour, health and safety, global environmental conservation, and information security. Together with our suppliers, the Group promotes procurement activities that can guarantee that we are fulfilling our social responsibilities while building a sustainable supply chain with low environmental impact.
Details of initiatives
Compliance with CSR Guidelines
To clearly communicate its approach to CSR procurement to suppliers, the Panasonic Group formulated the Panasonic Supply Chain CSR Promotion Guidelines with reference to laws and international norms such as the UN Guiding Principles on Business and Human Rights.
In line with the Panasonic Group’s activities, from fiscal 2023 the Group has started to conclude basic transaction agreements that require new suppliers to comply with the Guidelines. We have also requested that existing suppliers submit a written agreement to comply with the Guidelines. In fiscal 2024, 62% of all tier 1 suppliers submitted a written agreement. We will continue to explain the Panasonic Group’s CSR policy to suppliers who have not yet submitted their written agreements and gain their understanding while promoting our goal of achieving 100% agreement.
Reducing CSR Risks through collaboration with industry initiative
Amid growing demands in the international community for human rights initiatives, in 2021 Panasonic Holdings joined the RBA, a global organization that promotes social responsibility, and is developing initiatives to strengthen CSR procurement in its supply chain.
As part of those initiatives, we are distributing the Supply Chain CSR Promotion Guidelines to all tier 1 suppliers and requesting that they not only check contracts and agreements but also conduct regular self-assessments. The assessment results are classified into three ranks, A, B, and C, in ascending order according to risk. The precondition for starting transactions with a new supplier is an evaluation of B rank or higher in the CSR assessment. In fiscal 2024, we had 351 tier 1 suppliers conduct self-assessments, and of the 351 companies, 284 (81%) were ranked A, 59 (17%) were ranked B, and the rest of the companies were either ranked C or those who had yet to submit a self-assessment result sheet. For B-ranked suppliers, our Procurement Department works together with them to promote risk reduction by implementing improvement activities aimed at strengthening the CSR management system. We will review our transactions with C-ranked suppliers and continue to request submissions from suppliers who still need to do so.
In fiscal 2024, we also joined the Global Battery Alliance (GBA), an international battery industry initiative with more than 150 member companies, governments, and international organizations. We will accelerate our efforts to collaborate with member companies and organizations toward the initiative’s goal of establishing a sustainable and responsible battery value chain by 2030.
CSR-related education and training
To realize responsible procurement activities, we believe that it is essential to educate and train our personnel who are in charge of procurement and who come into contact with our suppliers on a daily basis. There are CSR Level 1 and CSR Level 2 systems according to the degree of proficiency in CSR, with 5% of the personnel acquiring Level 1 and 50% acquiring Level 2 in fiscal 2024. With the goal of all procurement personnel acquiring Level 2 or higher, we promote education and training by creating an annual course plan. We are also conducting e-learning sessions for all domestic employees to promote their understanding of CSR compliance and prevention of legal violations in purchasing operations.
Support for suppliers
As stipulated in our regulations, we conduct an audit before commencing a new transaction with a material supplier. Based on the audit results, if necessary, we provide support that will lead to improvements in, for example, the management level of our suppliers with regard to the control methods for processes, chemical substances and health and safety. We also hold a Partners’ Meeting once a year to further strengthen cooperative relationships with suppliers by understanding our management policy. In fiscal 2024, 358 people from 183 companies participated.
Human rights due diligence initiatives
With regard to its suppliers, the Panasonic Group performs risk mapping based on the risk indicators of international organizations and the impact the risks would have on business. In fiscal 2024, we began on-site CSR audits of our suppliers that we have identified as “high risk” in cooperation with an external organization, which include items related to human rights, labour, health and safety. During that fiscal year, we also conducted on-site CSR audits of 12 suppliers. Going forward, we will promote human rights due diligence, including the identification and countermeasures of supply chain risks, by conducting on-site CSR audits.
Details of initiatives
Compliance with CSR Guidelines
To clearly communicate its approach to CSR procurement to suppliers, the Panasonic Group formulated the Panasonic Supply Chain CSR Promotion Guidelines with reference to laws and international norms such as the UN Guiding Principles on Business and Human Rights.
In line with the Panasonic Group’s activities, from fiscal 2023 the Group has started to conclude basic transaction agreements that require new suppliers to comply with the Guidelines. We have also requested that existing suppliers submit a written agreement to comply with the Guidelines. In fiscal 2024, 62% of all tier 1 suppliers submitted a written agreement. We will continue to explain the Panasonic Group’s CSR policy to suppliers who have not yet submitted their written agreements and gain their understanding while promoting our goal of achieving 100% agreement.
Reducing CSR Risks through collaboration with industry initiative
Amid growing demands in the international community for human rights initiatives, in 2021 Panasonic Holdings joined the RBA, a global organization that promotes social responsibility, and is developing initiatives to strengthen CSR procurement in its supply chain.
As part of those initiatives, we are distributing the Supply Chain CSR Promotion Guidelines to all tier 1 suppliers and requesting that they not only check contracts and agreements but also conduct regular self-assessments. The assessment results are classified into three ranks, A, B, and C, in ascending order according to risk. The precondition for starting transactions with a new supplier is an evaluation of B rank or higher in the CSR assessment. In fiscal 2024, we had 351 tier 1 suppliers conduct self-assessments, and of the 351 companies, 284 (81%) were ranked A, 59 (17%) were ranked B, and the rest of the companies were either ranked C or those who had yet to submit a self-assessment result sheet. For B-ranked suppliers, our Procurement Department works together with them to promote risk reduction by implementing improvement activities aimed at strengthening the CSR management system. We will review our transactions with C-ranked suppliers and continue to request submissions from suppliers who still need to do so.
In fiscal 2024, we also joined the Global Battery Alliance (GBA), an international battery industry initiative with more than 150 member companies, governments, and international organizations. We will accelerate our efforts to collaborate with member companies and organizations toward the initiative’s goal of establishing a sustainable and responsible battery value chain by 2030.
CSR-related education and training
To realize responsible procurement activities, we believe that it is essential to educate and train our personnel who are in charge of procurement and who come into contact with our suppliers on a daily basis. There are CSR Level 1 and CSR Level 2 systems according to the degree of proficiency in CSR, with 5% of the personnel acquiring Level 1 and 50% acquiring Level 2 in fiscal 2024. With the goal of all procurement personnel acquiring Level 2 or higher, we promote education and training by creating an annual course plan. We are also conducting e-learning sessions for all domestic employees to promote their understanding of CSR compliance and prevention of legal violations in purchasing operations.
Support for suppliers
As stipulated in our regulations, we conduct an audit before commencing a new transaction with a material supplier. Based on the audit results, if necessary, we provide support that will lead to improvements in, for example, the management level of our suppliers with regard to the control methods for processes, chemical substances and health and safety. We also hold a Partners’ Meeting once a year to further strengthen cooperative relationships with suppliers by understanding our management policy. In fiscal 2024, 358 people from 183 companies participated.
Human rights due diligence initiatives
With regard to its suppliers, the Panasonic Group performs risk mapping based on the risk indicators of international organizations and the impact the risks would have on business. In fiscal 2024, we began on-site CSR audits of our suppliers that we have identified as “high risk” in cooperation with an external organization, which include items related to human rights, labour, health and safety. During that fiscal year, we also conducted on-site CSR audits of 12 suppliers. Going forward, we will promote human rights due diligence, including the identification and countermeasures of supply chain risks, by conducting on-site CSR audits.
Providing Energy for the Pursuit of Happiness
Respecting Human Rights
Providing Energy for the Pursuit of Happiness
Respecting Human Rights
