Responsible Procurement
DNP is working with our suppliers throughout the supply chain to improve compatibility with social expectations. Excellent products and services would mean nothing if we break social norms or cause trouble to society in their manufacturing processes or raw material procurement practices. As such, we aim to create value and cultivate compliance awareness at the same time and are carrying out various types of management. Additionally, DNP will fulfill its social responsibility by taking appropriate action to avoid becoming a party to global-scale environmental destruction, abuse of human rights or labor issues.
Medium-to long-term vision
For creating excellent value and cultivating strong compliance awareness at the same time, we work jointly with our supply chain stakeholders and conduct procurement that gives due consideration to human rights, the environment and other factors.
SDGs Covered by the Vision
Performance Indicators to Monitor the Progress in Achieving the Vision and Activity Results
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Structure to Promote Management
Internal Structure and Management
In the Sustainability Committee led by a managing director, DNP has confirmed its commitment to conducting responsible procurement that takes into account human rights and other social and environmental aspects. We have formulated necessary guidelines and have been making a range of efforts to increase the effectiveness of these guidelines. Specifically, we have formulated the DNP Group CSR Procurement Guidelines, and to cover topics of significant importance, developed individual guidelines, including the DNP Group Guidelines for Procurement of Paper for Printing and Converting and the DNP Group Green Procurement Guidelines for Chemical Substances.
To increase their effectiveness, the dedicated CSR department and purchasing and other related departments work closely together and go through the plan-do-check-act (PDCA) cycle by providing staff education, holding briefing sessions for suppliers, conducting periodic supplier surveys and feeding back the survey results as well as conducting interviews and the exchange of opinions.
DNP’s Main Initiatives
Reinforcement of CSR Procurement Management
With supply chains becoming increasingly globalized and complex, a stronger call has been placed on companies to counter risks in such areas as the environment, human rights and labor and corruption. As DNP operates both in and outside Japan, we recognize that it is important for us to evaluate and mitigate the impact of our business activities on the international as well as local communities from a global viewpoint and have been implementing specific initiatives based on this recognition.
Since 2006, DNP had undertaken initiatives jointly with suppliers for responsible procurement that gives due consideration to social and environmental aspects. In March 2017, we fully revised these initiatives and formulated the DNP Group CSR Procurement Guidelines. At the same time, we started reinforcing our responsible procurement management and extended its scope to suppliers and agents of all our overseas business locations. In 2018 we extended the scope to the Group companies with their own purchasing functions as well, thus realizing integrated responsible procurement management on a global scale. In 2020, we revised the DNP Group CSR Procurement Guidelines to include not only tier 1 suppliers but also the entire supply chain. In addition, we regularly implement a BCP questionnaire from the perspective of sustainability and are also making efforts to strengthen hedging of procurement risk. To steadily implement this responsible procurement, we hold internal study sessions for staff of divisions actually engaged in procurement and implement a compliance status survey for key suppliers and subcontractors based on the DNP Group CSR Procurement Guidelines. In addition to feedback on the “evaluation sheet” provided to suppliers that responded, we also work to promote understanding via dialogue through visits and interviews with some of our key suppliers. Also, since 2011 we have incorporated provisions pertaining to the DNP Group CSR Procurement Guidelines in the basic transaction contract and when concluding a new contract with a supplier, have issued these guidelines in writing and requested that initiatives be undertaken in line with the guidelines. Since 2020, we have expanded the scope to include tier 2 and tier 3 suppliers.
Our Response to Conflict Minerals
There are concerns that minerals such as gold, tin, tantalum, tungsten, and cobalt mined in high-risk areas such as conflict regions could lead to problems that include human rights violations such as child labor, financing of terrorists, money laundering, fraudulent transactions, support of conflicts and environmental destruction. To ensure it is never involved with such movements that are detrimental to the sustainable development of society, DNP has prescribed responsible procurement as one item in our DNP Group CSR Procurement Guidelines and we are undertaking business activities in an appropriate manner jointly with each supplier. We have confirmed that the said minerals used in our electronic devices business do not come from the conflict region.
DNP Group Guidelines for Procurement of Paper for Printing and Converting
To increase the effectiveness of our efforts to reduce environmental impact, we conduct responsible procurement jointly with suppliers involved in the purchase of raw materials that have a large impact on the environment. Especially for paper, which is one of our principal raw materials, we are committed to the conservation of forest resources and the effective use of raw materials and are proactively encouraging the use of thinned wood and forest-certified paper. Since 2012, we have also been collaborating more closely with suppliers, including paper manufacturers and sales companies, as an effort to share our procurement policy under the DNP Group Guidelines for Procurement of Paper for Printing and Converting, establish and operate a management structure to confirm the legality of our procurement practices, ensure traceability and increase the percentage of paper that is friendly to forest resources in the overall volume of our paper purchase.
DNP Group Green Procurement Guideline for Chemical Substances
In recent years, regulations on chemical substances have been strengthened both in Japan and overseas and companies are being called upon to properly ascertain and manage chemical substances contained in raw materials, materials and products throughout their entire supply chain. Based on these circumstances, in 2013 DNP revised its previous DNP Group Chemical Management Standards to the DNP Group Green Procurement Guideline for Chemical Substances. At the same time, we hold Supplier Information Sessions to communicate the impact of chemical substances on people and the global environment as well as the need for making responses throughout the entire supply chain as part of our efforts to strengthen management of chemical substances.