Fundamental Approach to Suppliers

In line with our focus on creating opportunities and reducing business risk, we will continue to promote co-creation activities throughout the supply chain while simultaneously encouraging our business partners to understand the CSR promotional activities in which the Sanden Group is engaged. Promoting the Sanden Group’s sustained global development requires the reliable and efficient supply of competitive materials and components. To ensure that it can obtain such supplies, Sanden is striving to build mutual trust with its suppliers as business partners.

Cooperation with Our Partners

As the mission of the purchasing function of the Sanden Group, we are active from a broad perspective not only the “purchase = buy” viewpoint, but also in providing the reliable and efficient supply of competitive materials and parts to the Group’s factories and customers around the world.

For the Group to continue to develop, it is essential to secure an efficient supply of competitive materials and parts from suppliers. To that end, we strive globally to build true partnerships with our business partners based.

Sanden Group Supplier Fundamental Principles

The fundamental principles for the Sanden Group’s suppliers are posted on the website in Japanese, English, and Chinese.

Sanden Group Supplier Fundamental Principles (Eng)(PDF:425KB)
Sanden Group Supplier Fundamental Principles (Chn)(PDF:446KB)
Sanden Group Supplier Fundamental Principles (Jpn)(PDF:1,071KB)

Sanden Group Green Supply Guidelines

These are Sanden Group's Green Supply Guidelines.

Green Supply Guidline (Eng)(PDF:260KB)
Green Supply Guidline (Chn)(PDF:721KB)
Green Supply Guidline (Jpn)(PDF:1,033KB)

Sanden Conflict Mineral Policy

The global Sanden Corporation and its subsidiaries are committed to procurement and use of materials and components that are free from conflict minerals originating from the Democratic Republic of the Congo or neighboring countries as these minerals may be related to illegal conduct including human rights violations.

These activities have the aim of conducting procurement activities with consideration for the impact on regional societies, and, thereby “use materials that will not be the cause of human resource, environmental, or other problems.” We recognize the issue of conflict minerals in the Democratic Republic of the Congo (DRC) and surrounding countries, as well as in high-risk areas (CAHRAs), as a serious social concern within the supply chain. We conduct global investigations tracing back through our supply chain to assess the use of conflict minerals. If there is a risk that such minerals may contribute to social problems or serve as a source of funding for armed groups, we take proactive measures to avoid their use.

We request that our partners and suppliers share our company policies and conduct their own responsible material procurement policy for mutually beneficial business relationships.

Enhancement of Partnership with Suppliers

To enhance trusting relationships with the Group’s suppliers, top executives visit suppliers in Japan and abroad to strengthen communication with local staff and mutually enhance corporate value.

< FY2024 Achievements >

Overseas

Plan: 55 companies Actual: 54 companies

Japan

Plan: 25 companies Actual: 27 companies

Promoting CSR-Based Procurement Practices

As a member of both the international community and local communities, the Sanden Group and its business partners must develop a range of activities in harmony with society and fulfill its corporate and social responsibilities. In line with this, we act and promote CSR procurement based on the fundamental principles for suppliers.

　■ Respond to requirements in relation to corporate social responsibility issues such as human rights and environmental protection
　■ Respond to requirements in relation to corporate ethics such as compliance with related laws and international rules
　■ Respond to requirements in relation to safety and health management, and business continuity plans for such events as natural disasters
　■ Respond to requirements in relation to management systems in areas such as quality, environment, chemical substances

In addition, to confirm that suppliers are in compliance with the basic principles, we conduct on-site surveys of business partners and their suppliers, where possible.

Promoting Fair and Transparent Transactions with Suppliers

Sanden is engaged in business activities at the global level and has dealings with world–class companies. The Company and its suppliers are members of the international and local communities, and as such, there is a collective understanding in the Company that all actions must remain in harmony with society. We must also be steadfast in fulfilling our role as good corporate citizens, working together with local communities in meeting our corporate responsibilities to society. Based on this understanding, Sanden has positioned "harmony with society" and "good corporate citizen" as the primary principles of its corporate philosophy.

Sanden will grow together with our suppliers as business partners who provide our customers with the best possible products, systems and services on the basis of fair and transparent relationships. To accomplish this, the Company has put in place a set of fundamental principles (a code of conduct) that outline essential requirements and is calling on all suppliers to adhere strictly to these guidelines.

Global Supply Risk Management For Suppliers

To avert supply risk, Sanden has put together a fiscal 2013 version of its basic agreement, which incorporates various requirements that cover a broad range of categories, including, provisions relating to CSR (social ethics), business continuity plans, and environmental preservation.

Implementation of the agreements for domestic suppliers commenced around March 2014. New agreements for individual overseas bases were completed during fiscal 2014 and are being implemented in fiscal 2015.

Supplier health and safety management

For its key business partners, Sanden inspects and confirms the status of their initiatives related to safety/health and environmental preservation with the aims of minimizing risks related to safety/health and the environment as well as making improvements in these areas to ensure the safety and health of all persons along the supply chain. These activities, which have been conducted in the Sanden Group since fiscal 2016, are also intended to help create pleasant working environments and further activities to increase business efficiency.

Conflict Minerals Survey Status

Survey Results:
CMRT Collection Rate (Tin, Tantalum, Tungsten, Gold): 98%
EMRT Collection Rate (Cobalt, Mica): 94%
(119 domestic suppliers: 88% of Sanden’s domestic transaction value in FY2024)
(Ratio of purchase amount from the above 119 domestic suppliers to the global purchase amount: 43%)

Expansion of Sanden Group Supplier Fundamental Principles and Green Supply Guidelines to Suppliers

Deployment Rate to Domestic Suppliers: 100%
(Share of purchases from domestic suppliers in total global procurement value: 49%)

Carbon Neutrality Initiatives

The Sanden Group has been promoting CO2 reduction activities both internally and externally, with an eye to achieving carbon neutrality by 2039.
In FY2024, we held a Carbon Neutral Seminar for our suppliers to raise environmental awareness and help establish improvement steps.

This fiscal year, we plan to implement support activities for our suppliers as part of our concrete carbon neutral efforts.