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Partnership with Our Suppliers

Partnership with Our Suppliers

The Nissha Group procures the materials, equipment, and services necessary for production and a wide range of business activities from suppliers around the world. We work fairly and equally with all suppliers to promote sustainable procurement based on our Purchasing Principles, aiming to share an awareness of social responsibility and enhance mutual enterprise value.

Purchasing Principles

Nissha Group achieves sustainable procurement by building relationships of trust with our suppliers through mutually fair purchasing.

Nissha Group evaluates our suppliers in terms of fairness, impartiality, and comprehensively based on the following criteria.

Stable business foundation and reliable management principles
Excellent technology development and the abilities to propose products or services that consider environmental impacts
Provision of stable, high-quality products or services
Price competitiveness
Stable production capacity and lead times
Effective business continuity management plans

Nissha Group achieves sustainable procurement by working with our suppliers in the following areas.

Labor and human rights
Health and safety
Environment
Ethics
Information security

Daisuke Inoue
Director of the Board, Senior Executive Vice President, Corporate Procurement and Logistics
Nissha Co., Ltd.

Established on April 2, 2009
Revised on April 1, 2025

We request all of our suppliers to comply with the Purchasing Principles and the CSR Procurement Guidelines. These Guidelines are based on the Responsible Business Alliance (RBA), 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 of CSR Procurement Guidelines and Self Assessment Questionnaire (SAQ) are listed below.

1. Labor and human rights

Prohibition of forced labor
Young workers
Working hours
Wages and benefits
Humane treatment
Non-discrimination
Freedom of association

2． Health and safety

Occupational health and safety
Emergency preparedness
Occupational injury and illness
Industrial hygiene
Physically demanding work
Machine safeguarding
Sanitation, food, and housing
Health and safety communication

3． Environment

Environmental permits and reporting
Pollution prevention and resource conservation
Hazardous substances
Solid waste
Air emissions
Materials restrictions
Water management
Energy consumption and greenhouse gas emissions
Environmental management system

4． Ethics

Business integrity
No improper advantage
Elimination of terrorist activities, weapons manufacturing, and money laundering in the supply chain
Disclosure of information
Intellecutual property
Fair business, advertising, and competition
Ptotection of identity and non-retaliation
Responsible sourcing of minerals

5． Information security

Information security management system
Information security threats
Personal and confidential information

CSR Procurement Guidelines[125.8KB]

Nissha Group Supply Chain

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 by the pandemic, regional conflicts, the sharp rise in raw material and fuel prices due to dramatic foreign exchange shifts, supply shortages and price hikes due to labor shortages, as well as natural disasters. However, thanks to the cooperation of our suppliers, the Nissha Group is continuing sound business activities.

Survey of the Supply Chain

CSR Survey

While accepting CSR audits from customers, the Nissha Group carries out annual inspections using our own unique Self Assessment Questionnaire (SAQ) so that we can ascertain the status of suppliers as we build a safe, reliable supply chain.

In FY2024, we selected and surveyed 157 companies in Asia, including Japan and China, Europe, and Central and South America, choosing from suppliers who have business transactions with our Industrial Materials Business Unit, Devices Business Unit, and overseas Group companies. We received a response rate of 100% from our suppliers, and confirmed that all companies were exceeding our standards.

Labor and Human Rights Risk Survey

CSR surveys include questions about labor and human rights. Surveys were conducted for all 108 companies that these included, and we received a 100% response rate. The contents were checked and we confirmed that there were no issues. Of these suppliers, we conducted on-site audits of 10 companies selected from the key suppliers, and completed corrective actions for identified issues at all suppliers.

CO₂ Emissions Survey (Scope3 Category1)

In order to understand the CO₂ emissions from suppliers, we carry out CO₂ emissions surveys using questionnaires.

Environmental Survey

To promote environmental initiatives in FY2024, we revisited and revised the items related to the environment in our CSR Procurement Guidelines. The revised CSR Procurement Guidelines are distributed to our key suppliers and are also posted on our website. Furthermore, we have reflected items related to the environment required in the CSR Procurement Guidelines in the CSR questionnaire, and intend to confirm our suppliers’ compliance status in the survey for FY2025.

Development of Procurement Personnel

Focusing its efforts on training procurement personnel, the Nissha Group has continued to provide the basic procurement education and procurement training by external instructors since the fiscal year ended March 2009. To date, more than 1,200 employees have taken these courses.

Along with further enhancing training for the Nissha Group overseas, we will carry out timely purchasing training for employees who have been transferred to the procurement division, in order to quickly improve their purchasing skills and minimize risk.