Promotion of CSR Procurement
In response to the rising social expectation for CSR-oriented supply chain management, the NGK Group promotes CSR procurement. We preferentially select CSR-conscious companies and purchase CSR-sensitive raw-materials and services.
CSR Procurement Guidelines
The NGK Group created the CSR Procurement Guidelines in fiscal 2010 as a guide to promote CSR procurement across the Group. The Guidelines specifically describe our obligations as a socially responsible buyer as well as our requirements for socially responsible suppliers, such as specifying environmental obligations like greenhouse gas emissions reductions.
In fiscal 2013, the Guidelines were expanded by being integrated with the previous Green Procurement Guidelines, which set forth rules for preferential purchase of environmentally friendly products and services, and adding provisions of conflict minerals, anti-corruption, human rights, and labor issues.
The expanded CSR Procurement Guidelines are publicly available on our website in multiple languages (Japanese, English, and Chinese).
Improving CSR Procurement
At the NGK Group, we develop activities to promote CSR procurement, such as visiting individual suppliers and conducting
on-site inspections. We also request our suppliers, particularly new companies, to sign an agreement to comply with the CSR Procurement Guidelines.
Looking ahead, we will conduct a survey over the course of 2020 to 2021 in order to ascertain the degree to which suppliers understand and incorporate CSR procurement. We will follow this up with information sessions and other communications aimed at improving the level of understanding and incorporation among all suppliers.
Ongoing Implementation of CSR Procurement
Procuring Resources and Raw Materials Responsibly
The NGK Group conducts procurement activities that consider impacts on regional communities stemming from the use of raw materials (e.g. conflict minerals*) with the potential to cause social issues such as human rights violations and poverty, and takes steps to avoid using such materials. Additionally, in response to requests from customers, we investigate suppliers regarding their responsible procurement of resources and raw materials.
- Minerals including tin, tantalum, tungsten, and gold produced in the Democratic Republic of the Congo and surrounding countries, and used as a source of funding for armed conflict in the area.
Enhancement of Procurement Capabilities of Group Companies
In fiscal 2019, we held our first NGK Group Purchasing Liaison Meeting for personnel within each Group company who are responsible for materials procurement. The meeting was attended by 11 people from three companies of similar size and in similar business sectors (NGK Ceramic Device and NGK Electronics Devices). Presentations were delivered about the structure of each company’s materials procurement department, their purchasing and cost reduction activities, the challenges they face, and more. This was accompanied by information sharing among the attendees.
We will continue to foster stronger collaboration among Group companies as a means of improving the procurement operations within the Group as a whole.
Collaboration with Group Companies outside Japan
As part of our efforts to strengthen collaboration with Group companies outside Japan, we dispatched personnel to a Malaysian subsidiary of NGK Electronics Devices to assist the staff there during an RBA* audit. We also assist Group companies outside Japan with client management, cost reduction, and other matters when requested.
Furthermore, in order to obtain a clear understanding of the actual situation at Group companies outside Japan with regard to logistics, we conduct on-site hearings at around 10 companies every year.
- Responsible Business Alliance: Focusing primarily on the electronic equipment industry, the RBA establishes standards and conducts audits with the aim of promoting safe working environments, worker protection, and environmental responsibility.