Toyota Tsusho Group Supply Chain Sustainability Behavioral Guidelines
As a company that develops diverse businesses globally, protecting supply chains is a fundamental concept that serves as the foundation of our management and reflects our corporate philosophy of “Living and prospering together with people, society, and the planet, we aim to be a value-generating corporation that contributes to the creation of prosperous societies.” Together with our suppliers, we will promote efforts to build a sustainable supply chain that takes human rights, labor environments, and the natural environment into consideration.
The Toyota Tsusho Group has constructed a globally diverse value chain and believes that sustainability and CSR that take into consideration human rights, labor environments, and the natural environment must be promoted throughout all supply chains in each region.
In 2012, Toyota Tsusho formulated the Supply Chain CSR Behavioral Guidelines to foster a common understanding of sustainability and CSR, coordinate CSR initiatives, and realize mutual sustainable growth with suppliers. These guidelines were revised in 2019 and 2022 to clarify the common understanding we have with our suppliers in response to the increased awareness of human rights and environmental issues and the identification of the Toyota Tsusho Group's Materialities.
In the 2022 revision, we mainly clarified our stance on human rights and the environment further as well as changed the name of the guidelines to the Supply Chain Sustainability Behavioral Guidelines. The contents of the guidelines have been reported to the Board of Directors. We will continue to update the guidelines as appropriate in response to changes in the external environment.
In line with the 2022 revision, we again shared our guidelines with approximately 1,400 suppliers and asked them to put the guidelines into practice. In addition, we will conduct monitoring based on the guidelines. Specifically, we will conduct risk analysis, and for those suppliers identified to be at high risk, we will review their compliance status through questionnaires on their implementation status and, if necessary, on-site audits.
I.Supply Chain Sustainability Behavioral Guidelines
- 1Respect for human rights
- We understand and support the "Toyota Tsusho Group Human Rights Policy," and will strive to put it into practice.
- We will respect the human rights of employees and will never subject employees to inhumane treatment, such as abuse, physical punishment, or harassment.
- 2Prevention of forced labor, child labor, and unreasonably low wage labor
- We do not tolerate any form of modern slavery, we prohibit forced labor and we recognize that all work is voluntary. Additionally, we guarantee the right of employees to freely terminate their employment.
- We do not tolerate child labor and do not allow children to work from a young age as it deprives them of educational opportunities and impedes their development.
- The working age for employees shall be from 15 years old, or the minimum working age according to the relevant laws and regulations of each country, or the age at the end of compulsory education, whichever is the greatest, will apply.
- For hazardous work, we do not utilize employees under the age of 18.
- We will appropriately manage employees' working hours (including overtime), holidays and leave, and strive to reduce excessively long working hours. In addition, we will pay wages that exceed the living wage in compliance with the labor laws of each country and will not reduce wages unreasonably.
- We allow labor in the form of vocational training and apprenticeships only within the scope permitted by the applicable laws and regulations of each country.
- 3Elimination of discrimination
- We do not discriminate on the grounds of gender, age, nationality, race, skin color, ethnicity, religion, sexual orientation, disability, political views, etc. in any employment situation.
- 4Respect for freedom of association
- We recognize the right of employees to freely associate or not to associate based on applicable laws and regulations of the countries in which we are engaged in business activities.
- We guarantee the right of employees to communicate openly and directly with management without fear of retaliation, intimidation, or harassment.
- 5Improvement of working environment
- We will strive to provide a safe, hygienic and healthy work environment, especially by prioritizing employee health and safety.
- 6Fair trade and anti-corruption
- We will comply with all relevant laws and international rules and will ensure that our trading activities are fair and thoroughly prevent corruption.
- 7Ensuring quality and safety
- We will ensure the quality and safety of our goods and services.
- 8Consideration of the global environment
- We understand and support the "Toyota Tsusho Group Environmental Policy" and will strive to put it into practice.
- We will carry out environmental conservation activities, review them through establishment of an environmental management system, and aim for continuous improvement by demonstrating our creativity.
- We will give maximum consideration to climate change by promoting reductions in greenhouse gas emissions and achieving carbon neutrality.
- We will save resources and energy and improve our utilization efficiency.
- We will use water efficiently and reduce our water usage in water-stressed areas.
- We will work to prevent and reduce environmental pollution and strive to reduce the burden on the environment.
- We will actively promote proper disposal and effective use of waste and resource protection in compliance with the laws and regulations of each country and region and work to reduce waste while contributing to the realization of a circular economy based society.
- We will work to realize a sustainable society in which people and nature coexist based on the recognition that biodiversity is a prerequisite for our continued corporate activities.
- We will consider forest conservation and aim to use forest resources in a sustainable manner.
- 9Contribution to local communities
- We will protect the rights and lifestyles of local communities and contribute to those communities as a member thereof.
- 10Information disclosure
- We will disclose information related to the matters listed above in a timely and appropriate manner.
We will deepen communication with our suppliers and conduct regular surveys of our suppliers in order to understand the status of compliance with these guidelines. Further, we will visit suppliers to confirm activities on site as we deem necessary based on the activity area and business content.
III.Response to Compliance Violations
If you have become aware of any violation of these Guidelines, please report to us promptly and work to make improvements. We may reconsider our transactions with your company if we do not observe appropriate efforts to make improvements.
Dissemination of the Supply Chain Sustainability Behavioral Guidelines
In 2012, Toyota Tsusho formulated the Supply Chain CSR Behavioral Guidelines to foster a common understanding of sustainability, coordinate CSR initiatives, and realize mutual sustainable growth with suppliers. These guidelines were revised in 2019 and 2022 to clarify the common understanding we have with our suppliers in response to the increased awareness of human rights and environmental issues.
In the 2022 revision, we mainly clarified our stance on human rights and the environment further as well as changed the name of the guidelines to the Supply Chain Sustainability Behavioral Guidelines. The contents of the guidelines have been reported to the Board of Directors meeting.
In line with the 2022 revision, we have notified approximately 6,000 of our suppliers as well as domestic and overseas consolidated subsidiaries of these guidelines and asked them to disseminate these guidelines and put them into practice. We will continue to update the content of these guidelines as appropriate in response to changes in the external environment.
Supply Chain Management Education, Training, and Awareness
We have been conducting e-learning for all employees, as all employees may be involved in purchasing. In 2019, we conducted e-learning on supply chain management for all employees to raise employee awareness of environmental and human rights considerations throughout the supply chain. It was taken by more than 3,000 Toyota Tsusho employees. In 2020, we conducted e-learning on sustainability overall, including content related to our human rights policy and respect for human rights. It was taken by approximately 3,100 Toyota Tsusho employees. In 2022, we held a briefing session on our sustainability activities and supply chain management for sustainability officers of our overseas consolidated subsidiaries, and some consolidated subsidiaries held study sessions on human rights. In 2023, we held e-learning on human rights due diligence for all employees in advance of promoting human rights due diligence covering the supply chain. It was taken by approximately 3,100* Toyota Tsusho employees.
We hold study sessions in sequence to raise awareness among suppliers. Concerning safety management, we have provided occupational safety and health education to our major suppliers in Japan. We are working to raise awareness of occupational safety and health by having not only our group companies but also our suppliers participate in the Practical Safety Workshop at Toyota Steel Center Co., Ltd., one of our group companies.
- *As of July 2023
In June 2022, we added a sustainability clause to the template of our Basic Sale and Purchase Agreement. The sustainability clause, which requires suppliers to comply with our Human Rights Policy, Environmental Policy, and Biodiversity Guidelines in line with our Supply Chain Sustainability Behavioral Guidelines, is used in this agreement.
Establishment of an Inquiry Page for Sustainability
Establishment of an Inquiry Page for Sustainability We have established a system to accept opinions and requests from suppliers through an inquiry page on our website. The opinions and requests we receive are shared with the relevant departments within the company through a specialized organization and are linked to initiatives aimed at solving issues.
Supply Chain Survey
The Toyota Tsusho Group is building a global supply chain; in order to promote business activities that reflect our concerns for human rights, occupational safety and health, the environment, and other fields of risk across our entire supply chain, we have established the Toyota Tsusho Supply Chain Sustainability Behavioral Guidelines. Available in Japanese, English, and Chinese, we share the Behavioral Guidelines with our business partners; we also conduct questionnaires and on-site surveys as part of our supply chain management.
With regard to suppliers who breach our Behavioral Guidelines, we try to understand the reasons for the breach and the present conditions, offer corrective advice and solutions, and ask them for their understanding and compliance in the future.
Business fields, nations and regions that repre-sent risks in term of our supply chain are identified
A questionaire is conducted based on the Toyota Tsusho Supply Chain Sustainability Behavioral Guidelines.
A number of suppliers taking the questionaire are chosen for onsite suveys to uphold the human rights and OS&H guidelines.
Result of questionaire and onsite surveys are verlfied.
We will seek understanding and compliance of suppliers who violate the Guidelines and work together to improve. If improvement is not possible, we may consider suspension of transactions.
Supply Chain Survey Report
In the fiscal year ended March 31, 2015, our questionnaire and onsite surveys targeted suppliers in the apparel and food products industries, both of which are often located in nations with human rights concerns, where the rights of laborers are often said to be at significant risk. The results uncovered no problems.
In a January 2015 onsite survey of Nantong Shipu Garment Co., Ltd.'s textile plant in China, we verified that, in the process of producing blouses, pants, coats, jackets and other garments, the supplier demonstrates adequate concern for personnel, OS&H, quality assurance, and environmental issues.
When hiring, personnel managers work to comply with laws and regulations by, for example, checking IDs to ensure everyone hired is at least 18 years old. The plant offers programs for maternity leave and reduced work hours and we confirmed that the company shows concern for employee work-life balance.
The plant pays attention to worker safety, requiring, for example, that workers operating cutting machines wear metal safety gloves to prevent accidents. In quality assurance, defective products result in a recall, followed by a meeting of the plant's quality committee to determine the cause. Customers are then provided with a report.
Offices and plant premises were clean, and even warehouse space was well-organized. Paper and fabric scraps leftover from cutting patterns and cloth are recycled as part of the plant's environmental initiatives.
Pre-investment and loan investigations
For new investment and loan projects, we investigate the impact that the business will have on the environment and social.
Initiatives at NovaAgri
Nova Agri (Brazil), our group company engaged in grain originations and infrastructure business, is committed to sustainable grain procurement.
To ensure sustainability throughout its supply chain, the company uses remote sensing technology and geographic information systems to monitor the farmland where the grain it collects is produced, and carefully selects suppliers by matching its own database of farmers with information on environmental violations published by government agencies and other organizations.
Participation in the Moratória da Soja (Soy Moratorium)
NovaAgri participates in Moratória da Soja, an initiative launched by the Associação Brasileira das Indústrias de Óleos Vegetais (ABIOVE) and the Associação Nacional dos Exportadores de Cereais (ANEC) that aims not to procure soy produced in areas that were illegally deforested in the Amazon biome as a member of ANEC. Its performance is highly rated in third-party audits.
2BSvs certification is the European standard certification for sustainable biomass and biofuels.
NovaAgri obtained 2BSvs certification in May 2022 and started sales of its grain as grain produced and collected in an environmentally friendly manner.
The main conditions for certification and control items are as follows
- Farmers must be located within 10 km of an Amazonian protected area (including indigenous residential areas).
- Compliance with the above-mentioned "Moratória da Soja(Soy Moratorium )" , or forced labor, and other rules.
- Reports on the history of herbicides, insecticides, fungicides, seeds, fertilizers, diesel, and electricity used in the cultivation.
Procurement of Sustainable Palm Oil
We joined the Roundtable on Sustainable Palm Oil (RSPO) in May 2015. We are promoting the procurement of sustainable palm oil with consideration for environmental impacts by participating in meetings and briefings.
We are working to supply uniforms made of Fairtrade certified cotton as a trade system that aims to improve the lives of producers and workers in developing countries and help them become independent.