SCREEN Holdings has announced a Declaration of Partnership Building in support of the objectives of the Council on Promoting Partnership Building for Cultivating the Future.* A company can make a Declaration of Partnership Building under the name of a corporate representative to publicly announce that it seeks to build new partnerships by working together with supply chain companies and other value creating businesses for co-existence and co-prosperity.
Supply chain management
Based on the principle of “Compliance with Laws and Regulations, and Standards of Ethics” set forth in the SCREEN Group CSR Charter and Code of Conduct, we have established the Procurement Policy. In line with the policy, we strive to fulfill our social and environmental responsibility and enhance corporate ethics throughout the supply chain by emphasizing open and fair trade, responsible procurement, and green procurement. We engage in fair 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.
Green Procurement Standards
The SCREEN Group has established “Green Procurement Standards” to comply with global environmental regulations and reduce our environmental impact, and ask for the understanding, support and cooperation of our suppliers.
1. Suppliers are required to submit the "Memorandum of Understanding to the SCREEN Group's Environmental Initiative".
2. Suppliers are required to have some sort of environmental management system initiative.
3. Suppliers are required to provide us with information on the chemical contents in the products they sell to the SCREEN Group, as well as the amounts of these chemicals present.
4. Suppliers are required to submit the "Declaration of Non-Use of Prohibited Substances".
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, 2024, SCREEN surveyed its suppliers that provide components containing the relevant minerals using the CMRT1 of the Responsible Minerals Initiative (RMI) to identify the smelters in its supply chain. Suppliers that do not return the survey are asked again, and if there are errors in their responses, we request resubmission.
The CMRT survey cycle is shown in the diagram below.
In the year ended March 31, 2024, all suppliers that received the survey returned it. Through the survey, we identified 341 smelters, and the rate of conformant suppliers in our supply chain was found to be 65%. No critical risks associated with the responsible sourcing of minerals were identified. If any serious concern is discovered, we work with the relevant suppliers to promptly make 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.
FY2024/03 CMRT survey results
1. CMRT: The Conflict Minerals Reporting Template. A reporting template developed by the Responsible Minerals Initiative (RMI).
2. 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 large-scale disasters and supply chain interruptions, we endeavor to put in place production systems that complement production sites as well as parts suppliers in Japan and elsewhere, 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 parts 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 (IMP) and business continuity plans (BCP).
Declaration of partnership building
* The framework for the Declaration of Partnership Building was established in a council consisting of related cabinet ministers (a minister from the Cabinet Office; Minister of Economy, Trade and Industry; Minister of Health, Labour and Welfare; Minister of Agriculture, Forestry and Fisheries; Minister of Land, Infrastructure, Transport and Tourism; and Deputy Chief Cabinet Secretary), Chairman of Keidanren, Chairman of the Japan Chamber of Commerce and Industry, and President of the Japanese Trade Union Confederation (RENGO).
Supplier Code of Conduct
The SCREEN Group has established the CSR Charter and Code of Conduct to define our principles for business conduct and standards that all Group employees should comply with. To fulfill our responsibilities as a member of the supply chain for the electronic devices 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 in reference to our own CSR Charter and Code of Conduct as well as the Responsible Business Alliance (RBA) Code of Conduct and other standards. It is a means for the Group to ask parts suppliers and cooperating companies, as members of the same supply chain, to address and endorse compliance with applicable laws and regulations, respect for human rights, environmental conservation, and safety of products and services.
The Group’s key suppliers, including the top 240 suppliers in transaction value with the Group, critical suppliers for production, and primary on-site suppliers, are asked to submit a declaration of consent to the Supplier Code of Conduct.
Supplier surveys
We regularly conduct CSR surveys of suppliers in accordance with the SCREEN Supplier Code of Conduct to evaluate the implementation status in areas such as compliance with applicable laws and regulations, respect for human rights, environmental conservation, and safety of products and services.No high-risk suppliers were identified in the survey conducted for the fiscal year ended March 31, 2024. 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.
Cooperation with suppliers
Each business operating company holds business policy briefing sessions for suppliers in which they share business operation policies as a matter of course in addition to communicating the importance of working together across the supply chain and issues that need to be addressed.
The Group has launched a sustainability-related website dedicated to suppliers, the SCREEN Supply Chain Sustainability Site. The aim is to learn with suppliers and advance initiatives together. Our sustainability efforts are underway throughout the supply chain in cooperation with local governments, financial institutions, and other organizations.
● FYE2024/03 SPE business policy briefing
SPE invited 262 key suppliers to a business policy briefing. The SCREEN Holdings president and CEO, along with the presidents and relevant officers of business operating companies and the heads of related operations provided explanations of the SCREEN Group’s initiatives, ESG activities, business operational policies, and SCM policy. The suppliers, in turn, expressed their approval for SPE’s initiatives. Furthermore, SPE recognizes suppliers that cooperate with and make outstanding contributions to its initiatives as its best partners.
● Setup of a Sustainability-related Website for Suppliers
In 2023, SCREEN created the SCREEN Supply Chain Sustainability Site in order to learn about sustainability and advance initiatives alongside its partners. Through this website, we provide information to suppliers using email newsletters, webinars, videos, and other media. Topics covered include addressing climate change in the supply chain, business and human rights issues, and corporate chemical substance management initiatives.
● Initiatives with Kyoto Financial Group
SCREEN formed a comprehensive partnership agreement with Kyoto Financial Group in November 2023 with the aim of helping realize a sustainable world. SCREEN took part in a seminar on sustainable management practices for small and medium-size enterprises organized by Kyoto Financial Group, giving a lecture on trends in per- and polyfluoroalkyl substances (PFAS) regulations.