Promoting responsible procurementPolicy on CSR Procurement
Establishment of the “Kirin Group Sustainable Procurement Policy”
To fulfill its social responsibility, the Kirin Group established the “Kirin Group Sustainable Procurement Policy” in September 2017, and revised this policy in April 2021. The Group will implement initiatives to realize this policy going forward.
Kirin Group Sustainable Procurement Policy
The Kirin Group upholds the essential values in the areas of human rights, labor, the environment, and anti-corruption defined by the United Nations Global Compact, of which we are a signatory. We engage in procurement activities that follow five themes for initiatives in compliance with this principle and with Group policies, to improve sustainability from global perspectives, enhance corporate value, and contribute to society.
1. Steady focus on quality
- We place a high priority on pursuing quality and safety in our procurement practices, in accordance with the Kirin Group’s Quality Policy.
2. Ensuring regulatory and ethical compliance
- We observe social norms and the letter and spirit of laws and regulations and conduct business in a sensible and socially responsible manner, in accordance with the Kirin Group Compliance Policy.
3. Respecting human rights
- We embody the ideas laid out in the Kirin Group Human Rights Policy and address human rights issues together with our suppliers.
4. Environmental stewardship
- We strive to protect the global environment and prevent pollution and conduct environmentally sensible procurement practices in accordance with the Kirin Group’s Environmental Policy.
5. Coevolving relationships of mutual trust with suppliers
- We establish long-term relationships of trust with suppliers through fair and open procurement practices and work with suppliers to solve social issues to achieve co-existence and co-prosperity.
Establishment of the “Kirin Group Sustainable Supplier Code”
The Kirin Group is working with its suppliers, who are also business partners, in order to meet the demands and expectations of society, while continuing to create a variety of value through its business. To enable this process, in April 2021, the Kirin Group established the “Kirin Group Sustainable Supplier Code”—a collection of conditions that suppliers must comply with, based on the “Kirin Group Sustainable Procurement Policy.” The Code respects international standards such as the OECD Guidelines of Multinational Enterprises, the UN Guiding Principles on Business and Human Rights, the Core Conventions of the International Labor Organization [ILO], the Ten Principles of UN Global Compact, and the Women's Empowerment Principles [WEPs], and strives to ensure that all upstream channels in the supply chain, as well as the Kirin Group’s own business operations, conform to these standards on an ongoing basis.
Group Procurement Management System
Based on the “Kirin Group Sustainable Procurement Policy” and the “Kirin Group Sustainable Supplier Code,” the Group strengthens governance include managing the progress toward the procurement targets in our management plans, along with our procurement risk and compliance management, education and training, and internal auditing. We have integrated procurement risk as part of corporate risk management. In the unlikely event that a procurement risk should arise, under the leadership of the executive officer in charge of risk, the relevant departments will promptly work together to share information, implement countermeasures, and prevent recurrence, and will involve other departments before similar events happen elsewhere. In these ways, we work to verify and address the problem.
We also place importance on mutual communication with suppliers. Prior to initiating transactions with a supplier, we request strict adherence to the “Kirin Group Sustainable Supplier Code.” After transactions begin, we assess adherence to the code on a regular basis through surveys and supplier evaluations. We give feedback to the supplier based on the results of the survey and evaluation; and if risk countermeasures are deemed insufficient, additional surveys are conducted and we request that the supplier take the necessary corrective actions. In addition, we hold supplier briefing sessions to help suppliers deepen their understanding of the Kirin Group’s procurement activities, the “Kirin Group Sustainable Procurement Policy,” and the “Kirin Group Sustainable Supplier Code.” At the same time, we have also established a “Supplier Hotline” to collect feedback from suppliers and to ensure fair trade. With these actions driving our PDCA cycle, we will continue to work with our suppliers and promote CSR procurement.
Basic Procurement Policy and Supplier Code of Conduct for Each Group Company
Each Group company draws from the “Kirin Group Sustainable Procurement Policy” and the “Kirin Group Sustainable Supplier Code” to establish a basic procurement policy and a supplier code of conduct tailored to the characteristics of its particular business and the laws and regulations of the countries in which it operates.
Oceania Adult beverages
Lion Limited has published its Supplier Responsible Sourcing Code in line with international standards, including the International Covenants on Human Rights and the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work. This code supports the implementation of Lion’s Procurement Policy, in particular its three core principles.
- Promoting human Rights and ethical sourcing
- Promoting sustainable (environmental, social and inclusive) sourcing practices
- Building strong commercial outcomes and productive partnerships
The Kyowa Kirin Group is working to conduct open and fair CSR procurement to ensure a stable supply of high-quality products. As part of these efforts, the Kyowa Kirin Group stipulates the Kyowa Kirin Group Procurement Policy, which announces its determination to promote CSR procurement in collaboration with suppliers.
Furthermore, the Kyowa Kirin Group established the Supplier Code of Conduct within its Kyowa Kirin CSR Procurement Guidebook in response to the growing importance of CSR procurement. The Supplier Code of Conduct covers areas that require supplier cooperation, including respect for human rights, compliance with rules, environmental conservation, and information management.