Initiatives to Promote CSR Procurement
In order to promote CSR procurement and fulfill our social responsibility in each process of the value chain, the Pigeon Group emphasizes mutual communication with suppliers. This basic policy and these guidelines formulated in December 2020 were originally written in Japanese and have been translated into Chinese and English and adopted in each Business Unit. We are engaging with suppliers to obtain their understanding of and compliance with the guidelines set forth in the CSR Procurement Policy. Moreover, once a year we conduct a CSR procurement assessment and continuously promote CSR procurement.
Briefing Sessions for Suppiers
To promote CSR procurement in cooperation with suppliers, we provide opportunities for mutual communication. In line with the formulation of the CSR Procurement Policy, the Japan Business Unit held an advance online briefing session on March 7, 2024, to encourage the understanding and cooperation of suppliers. A total of 50 partner companies took part in this session.
Preliminary risk assessment for new suppliers
For new potential suppliers, we conduct a risk assessment that includes items on the status of the formulation of policies to promote CSR. We are preparing to adopt the "CSR Procurement Self-Assessment Questionnaire" developed by the Global Compact Network Japan (GCNJ) as our standard for new potential suppliers and to conduct a comprehensive assessment including the perspectives of human rights, labor, environment, fair corporate activities (Including anti-corruption, anti-bribery and compliance with competition laws), quality and safety, supply chain, and local communities.
CSR Procurement Assessment
In addition to existing controls based on laws and regulations, we have adopted the CSR Procurement Self-Assessment Questionnaire developed by the Global Compact Network Japan (GCNJ). Since 2021, we have begun conducting surveys in the Japan Business, China Business and Singapore Business as the scope of tabulation. Since 2022, the Lansinoh Business has been added to the scope of tabulation.
Purpose of Assessment
The purpose of this assessment is to understand suppliers' efforts on ESG and identify issues in our supply chain. By working with suppliers to resolve the issues revealed by the survey, we are committed to contribute to solving social issues and build stronger relationships with our suppliers.
Scope of Tabulation
Japan Business, China Business, Singapore Business and Lansinoh Business
Assessed Suppliers
The 2024 survey covered all primary suppliers in the sales and production subsidiaries of the Japan, China, Singapore, and Lansinoh operations. A total of 563 companies were surveyed and 480 companies responded, for a response rate of 85.3%.
Scope of tabulation |
No. of requested |
No. of responded |
Response rate |
|---|---|---|---|
Japan Business |
167 | 162 | 97.0% |
China Business |
94 | 94 | 100.0% |
Singapore Business |
243 | 185 | 76.1% |
Lansinoh Business |
59 | 39 | 66.1% |
| Total | 563 | 480 | 85.3% |
Assessed Items
The questionnaire used for the assessment was the Self-Assessment Questionnaire (SAQ) prepared by UN Global Compact Network Japan (GCNJ), the Japan chapter of the United Nations initiative on corporate sustainability. A detailed description of the items queried in the questionnaire is shown in the table below. Each intermediate-level item is broken down into five subitems: Legal awareness, Policy, System and responsibilities, Corrective actions and Correction. Respondents are asked to rank their own performance in each subitem on a scale of 1 to 3.
For details of the items, please refer to the "CSR Procurement Assessment Report" at the bottom of this page.
Assessment Results (Consolidated)
The overall average score was 84.6％, maintaining Last year's score of 84.7%. While scores for “quality and safety” and “labor” were above 90%, scores for “corporate governance related to CSR,” “supply chain,” and “coexistence with local communities” were below 80%, indicating that further improvement is needed.
| Assessed items | No. of questions | Average score rate | ||
|---|---|---|---|---|
| FY2023 | FY2024 | Diff. | ||
| 1.CSR-related corporate governance | 20 | 79.3% | 79.1% | -0.2% |
| 2.Human rights | 9 | 83.3% | 83.4% | 0.1% |
| 3.Labor | 23 | 90.4% | 90.7% | 0.3% |
| 4.Environment | 15 | 83.4% | 83.5% | 0.1% |
| 5.Fair corporate practice | 20 | 83.8% | 83.6% | -0.2% |
| 6.Quality and safety | 7 | 94.0% | 92.9% | -1.1% |
| 7.Information security | 9 | 86.4% | 86.3% | -0.1% |
| 8.Supply chains | 7 | 79.5% | 79.5% | 0.0% |
| 9.Harmonious coexistence with local communities | 4 | 79.3% | 78.2% | -1.1% |
| Over all | 114 | 84.7% | 84.6% | -0.1% |
Note: Questions answered with “Not applicable” are deducted from the denominator when calculating the supplier’s score rate.
Efforts Toward Improvement
We will provide suppliers who responded to the questionnaire with their own tabulation results and the average score rates. For items judged to be high-risk, we will highlight them to suppliers and encourage them to make improvements in each business.