The SCREEN Group’s Procurement Policy is built on the principles of “compliance with laws and regulations, and standards of ethics” and “promotion of social responsibility in the supply chain” set forth in the CSR Charter and Code of Conduct. Based on this policy, we strive to fulfill our social and environmental responsibility and enhance corporate ethics throughout the supply chain. Open and fair trade, CSR procurement, green procurement, and partnership are the four pillars of our procurement activities. We engage in fair and efficient trading practices by making the supplier selection process more transparent and regularly training purchasing personnel to ensure compliance with subcontracting laws and other legal and regulatory requirements.

Procurement Policy

Supplier Code of Conduct

The SCREEN Group has established the CSR Charter and Code of Conduct, which define principles for business conduct and standards for all Group employees. To fulfill our responsibilities as a member of the supply chain for the electronic device and other industries where our products and services are used, we respect the UN Global Compact, the Responsible Business Alliance (RBA) Code of Conduct, and other international principles, charters, and codes in our business activities.
We have established and published the SCREEN Supplier Code of Conduct with reference to the SCREEN Group CSR Charter and Code of Conduct as well as the RBA Code of Conduct and other related standards. Using this code, the Group asks suppliers and partner companies, as members of the same supply chain, for their understanding and cooperation in the areas of legal compliance, respect for human rights, environmental conservation, and product and service safety.
A written agreement to comply with the Supplier Code of Conduct has been obtained from all critical suppliers¹ deeply involved in our business activities, including the top 240 suppliers by transaction value.
1. Leading suppliers in terms of the value of transactions with the Group and suppliers of components of mainstay equipment and components for which no alternatives are available, among others

Supplier Code of Conduct

Green Procurement Standards

The SCREEN Group has established Green Procurement Standards to ensure compliance with global environmental regulations and reduce our environmental impact. In line with these standards, we request that suppliers implement the steps below and ask for their understanding, support, and cooperation.

1. Submission of agreements related to green procurement
2. Development of environmental management systems at suppliers
3. Provision of data, such as the names and amounts of chemicals used in delivered products
4. Submission of “Declaration of Non-Use of Prohibited Substances"

Supplier surveys

We regularly conduct CSR surveys of critical suppliers in accordance with the SCREEN Supplier Code of Conduct. Suppliers are evaluated based on their survey responses, and those falling below a certain threshold are deemed to require improvement and asked to take corrective measures. In the survey conducted for the fiscal year ended March 31, 2025, over 90% of suppliers responded, and no high-risk suppliers were identified. Following the survey, we provided feedback to suppliers and explained key points for making corrections at evaluation results briefings. We also worked with a specialized external organization to implement training on trends in sustainability initiatives. Going forward, we will continue working to update the survey content and expand the survey scope while working to secure the understanding and cooperation of suppliers.

Responsible sourcing of minerals

In order to avoid being complicit in human rights abuses and environmental destruction, the SCREEN Group does not accept any raw materials that contain conflict minerals. In the year ended March 31, 2025, SCREEN surveyed its suppliers that provide components containing the relevant minerals using the CMRT and EMRT² from the Responsible Minerals Initiative (RMI) to identify the smelters in its supply chain. The CMRT/EMRT survey cycle is shown in the diagram below.

In the year ended March 31, 2025, we once again surveyed suppliers on 3TG³ minerals. Suppliers that did not return the survey were asked again, and those that submitted responses with errors were asked to resubmit, resulting in valid responses from 92% of all suppliers. Through the survey, we identified 363 smelters, and the rate of conformant suppliers in our supply chain was found to be 65%.
In addition, all suppliers surveyed using EMRT, the survey covering cobalt, responded. This survey identified 83 cobalt smelters, with a 56% rate of conformant suppliers in our supply chain.
Based on the survey results, we asked some suppliers to consider changing the smelters they work with, and corrective actions are underway. If any serious risks are discovered through these initiatives, we take prompt action to implement improvements with the understanding and cooperation of suppliers. We will continue to expand the scope of the survey in an effort to realize responsible mineral sourcing throughout the supply chain.

CMRT/EMRT survey results 

2. CMRT and EMRT: The Conflict Minerals Reporting Template and Extended Minerals Reporting Template. Reporting templates developed by the Responsible Minerals Initiative (RMI). SCREEN uses the CMRT for 3TG surveys and the EMRT for cobalt surveys.
3. 3TG: Tin, tantalum, tungsten, and gold, which can all be conflict minerals
4. Conformant: Smelters that are certified through third-party audits as unaffected by conflict and free of human rights abuses and other issues are considered “conformant.” The Responsible Minerals Initiative (RMI) publishes a list of conformant suppliers.

Stable procurement

Based on lessons learned from past large-scale disasters and supply chain interruptions, we endeavor to put in place production systems in which production sites and parts suppliers in and outside Japan can be used to cover for one another if necessary in order to prevent significant damage to our business.
With regard to critical parts that have limited suppliers, we are taking a double-track approach by promoting substitution with generic alternatives or access to more than one supplier. At the same time, in order to maintain stable part procurement, we share long-term forecasts and other information with suppliers and work to exclude parts that have limited suppliers during the design stage. We have improved our IT systems, including those in the supply chain, to increase the speed and reliability of our incident management plans (IMPs) and business continuity plans (BCPs).

Partnership

Each business operating company holds business policy briefing sessions for suppliers in which they share business operation policies in addition to communicating the importance of working together across the supply chain and issues that need to be addressed in order to ensure stable production and meet the expectations of clients and society.
The Group has launched a sustainability-related website dedicated to suppliers, the SCREEN Supply Chain Sustainability Site. The aim of this website is to learn with suppliers and advance initiatives together. We advance sustainability throughout the supply chain in cooperation with local governments, financial institutions, and other organizations.

 

●Initiatives with Kyoto Financial Group
SCREEN formed a comprehensive partnership agreement with Kyoto Financial Group in November 2023 aimed at helping realize a sustainable world. By working with Kyoto Financial Group, which has a client base primarily in Kyoto Prefecture, we aim to expand our initiatives to solve social issues throughout the supply chain. As part of initiatives under the agreement, SCREEN has taken part in seminars on sustainable management practices for small and medium-size enterprises organized by Kyoto Financial Group, giving lectures, as shown below.