Sustainable Procurement

Basic approach

The Hodogaya Chemical Group specifies its commitment to the “realization of a fair and appropriate supply chain” in the “sustainability policy,” and implements the activities of procurement based on the “Compliance Action Policy” and the “Procurement Policy.” We have a fair deal with all partner companies in good faith when purchasing raw materials, products/consigned products, and facilities/equipment. We regard them as our good business partners in jointly addressing social issues.

Procurement Policy

The Hodogaya Chemical Group has established the Procurement Policy and Procurement Guidelines. In addition to having a fair deal in good faith, the concept of sustainable procurement, that is, giving consideration to the environment while deepening mutual communication was incorporated into the Procurement Policy. The Hodogaya Chemical Group conducts procurement inline with this policy.
In the basic purchasing contract concluded when doing business with the Hodogaya Chemical Group, there is a clause that covers compliance with the Procurement Guidelines. By having them comply with the terms of these guidelines, we work with our partner companies to conform with environmental, social, and governance needs, such as reducing the environmental impacts from raw material quality and the management and manufacture of chemical substances as well as respecting human rights throughout the supply chain, health and safety management, and ethics. Thus, the Hodogaya Chemical Group promotes compliance together with its partner companies.

Procurement Policy Procurement Guidelines
Promotion of Sustainable Procurement

When procuring raw materials, facilities and equipment as well as other items, we endeavor to establish robust supply chains. From a global perspective, we search for financially sound partner companies that are capable of continuous transactions, including respect for human rights and compliance with society’s ESG requirements. In particular, we work to secure multiple suppliers for each raw material and to diversify the countries from which we procure.
We first have new business partners perform a self-assessment according to our sustainability standards (labor and human rights, safety and health, environment and ethics, quality and safety) to confirm that they are not high risk. We engage in business only after they have agreed to abide by our procurement guidelines.
We regularly perform a risk assessment of existing business partners whose transactions exceed a certain amount with the Procurement Guidelines Implementation Status Survey Sheet to confirm whether the compliance items listed in the Procurement Guidelines are being properly implemented. In FY2023, we received a response from over 80% of business partners. In parallel with confirmation by means of the survey sheet, we also conduct visiting audits of business partner companies and work to deepen mutual understanding and establish relationships of trust with them while conducting improvement activities. Among the business partners surveyed in FY2023, no compliance violations were confirmed.
The personnel of the Purchasing Department are provided with the training necessary to put sustainable procurement activities into practice.
In April 2024, we obtained RSPO certification and are working on the procurement of sustainable palm oil.
The Hodogaya Chemical Group is also striving for responsible mineral resource procurement. We do not handle conflict minerals that are sources of funding for human rights violations or armed groups.

Voice

Functional Chemicals Business Division, Head Office

M.K

Towards realizing a sustainable supply chain

In 2024, Hodogaya Chemical obtained RSPO (Roundtable on Sustainable Palm Oil) certification from ODI.
RSPO certification is an international certification system that proves palm oil production is carried out with consideration for environmental protection, workers’ rights, and community welfare.
In the process of pursuing RSPO certification, I became more aware as a consumer about not just the products I purchase, but also their background, such as where they come from and whether they are produced in ways that consider the environment and human rights.
Through product sales and production, I want to continue thinking about what we can do to strengthen relationships of trust with our business partners and build a sustainable society together.


Purchasing Department

M.N

What I aim for in procurement operations

My job in the Purchasing Department is to place purchase orders. When we receive a request to purchase raw materials or packaging materials from our plants, I place a purchase order to our partner companies. If the delivery date or quantity is wrong, it will not only affect the production but will also cause trouble to the partner companies, so I make sure that the information is entered accurately. When a partner company is unable to deliver on the desired delivery date, we usually adjust the delivery date with the plant. I feel relieved when the adjustments go well. Also, we have quite a few sudden incidents at the Purchasing Department, which require flexible response. I hope to continue fulfilling my role firmly and establishing amicable relationships with our partner companies, thereby contributing to stable procurement.


Purchasing Department

J.W

What I aim for in procurement operations

I handle the negotiation of prices and date of delivery of raw materials that are used in our products, and also manage inventory.
There are a few things that I always keep in mind when doing my job: firstly, not to run out of raw materials to deliver in order to the plant in production; and to be fair and equitable in purchasing products and commercial goods from our partner companies.
Negotiating prices can be tough at times as they are influenced by exchange rate effects and market conditions these days, but I wish to deal with our partner companies in a sincere manner and fulfill my responsibilities for procurement.