Strengthening Supply Chain Management
Reason for Priority
In recent years, stakeholders have shown greater interest in human rights, labor environment, work safety, and environmental issues as they pertain to sites for manufacturing and mineral extraction in the product supply chain. To fulfill their responsibilities to society, companies also need to expand the scope of sustainable procurement from their own procurement partners to those of the Group as well as those of other business partners.
The Nikon Group maintains a social responsibility to its many stakeholders inside and outside the company to help maintain people's living standards and to empower sustainable business. Fulfilling this responsibility requires Nikon not only sustain its business operations, but also reinforce procurement capabilities by building and streamlining business relationships with Nikon procurement partners through strategic procurement, and abide by RBA standards. In addition, we need to generate profits mutually with procurement partners who endorse Nikon's philosophy through capacity building assistance. Through these efforts, we will work alongside procurement partners to become a sustainable company trusted by society, and make efforts towards resolving important social issues such as CSR procurement and conflict minerals.
Main initiatives and results in the fiscal year ended March 31, 2019
Transaction volume from major procurement partners, by country
Procurement partners who supply raw materials and components used in consumer products, such as cameras and binoculars, account for 55% of the Nikon Group's procurement partners, while procurement partners who are involved in other products account for 45%. Transaction volume by country is particularly high in Japan, China and Thailand, where Nikon operates its major production sites.
CSR surveys and CSR audits of procurement partners
The Nikon Group has established the Nikon CSR Procurement Standards, and we ask the Nikon Group's procurement partners, as well as these companies' own procurement partners, to act in a responsible manner. In addition, we conduct CSR surveys by asking procurement partners that are believed to pose various forms of latent risks to complete a self-assessment, in order to verify the actual situation. In turn, we carry out CSR audits based on the results of this analysis.
In the fiscal year ended March 31, 2019, we conducted CSR surveys of 208 companies (with a 100% response rate) and carried out CSR audits at four companies.
Nikon Sustainability Report
For more details, please see the Nikon Sustainability Report.