The Nissha Group procures the materials, equipment, and services necessary for production and a wide range of business activities from suppliers in various regions. We work fairly and equally with all suppliers to promote CSR procurement based on our Purchasing Principles in order to share awareness of our social responsibility and enhance mutual corporate value.

We request all of our suppliers to comply with the Purchasing Principles and the CSR Procurement Guidelines. These Guidelines are based on the RBA (Responsible Business Alliance), a code of conduct mainly for the electronics and automotive industries, and on other codes of conduct that our customers request we follow. The items are listed below.

We at the Nissha Group collaborate with various suppliers through our business activities, and our supply chain is expanding globally. The global supply chain has been severely affected recently by COVID-19, the invasion of Ukraine by Russia, lockdowns in China, the sharp rise in raw material and fuel prices due to the sharp depreciation of the yen, etc., and shortages and price hikes due to labor shortages. However, thanks to the cooperation of our suppliers, the Nissha Group has been able to continue our sound business activities.

Nissha Group production bases are subject to customer-based CSR auditing. Among these audits, some items require passing scores as preconditions for mass production orders, some incorporate periodic monitoring, some employ on-site auditing, some use remote auditing, and some have auditing conducted via a web-based question-and-answer platform.

So far, the audits found that no serious claims existed, including significant human rights violations or environmental law infractions.

At the same time as receiving these customer-based audits, we have been particularly promoting CSR auditing targeting important and new suppliers from the fiscal year ended March 2015 onward as part of an effort to maintain a safe and secure supply chain. The total audits to-date are 19 companies with a total of 187 improvement comments. All corrective action has been completed with the cooperation of our suppliers.

In addition to on-site auditing, we also implement annual surveys using our own Self Assessed Questionnaires (SAQ) to gauge the status of supplier CSR activities. Continuing on from 2022, the Devices business conducted a survey of 40 companies (materials suppliers, assembly contractors, etc.) in Europe and Asia, including China, in addition to Japan. As a result of the survey, no particular points of concern were found.

In the fiscal year ended December 2022, the Task Force took the lead in conducting a survey on labor and human rights.

As a result of the survey, no points of concern were found at any suppliers.

Since 2008, the Nissha Group in Japan has been continuously providing training to develop procurement personnel (basic procurement education, training for technical and development departments, procurement training by external instructors, etc.). To date, a total of more than 1,000 people have taken this training.

We are also providing training to Nissha Group companies overseas. In the fiscal year ended December 2022, we offered basic procurement education to three Group companies in China. We plan to continue to expand training to other Group companies.