Building a resilient supply chain

Materiality 6

Reason for Prioritization

In recent years, stakeholders have become increasingly concerned about social issues related to human rights, work environments, health and safety, and the environment in the supply chain. In addition, raw material price fluctuations due to various factors such as global extreme weather events and natural disasters, geopolitical influences, and international conflicts have increased the instability and risks in the supply chain.
Against this backdrop, the Nikon Group, together with procurement partners who share our vision and act in unison, believes that it is necessary to listen to the views of society and build a resilient supply chain that can address these social issues.

Commitment

With the rapidly changing supply chain environment, there is an urgent need to respond to unstable elements and risks, and the Nikon Group is taking action as a unified group here. Amid an environment like this, the “D” of QCD (Quality, Cost, Delivery) becomes even more important.
As uncertainty and volatility continue to prevail in parts procurement and logistics, the Nikon Group, both on its own and with procurement partners and act in unison, works to listen to the views of society and build a resilient supply chain that can address these social issues.
Sustainable procurement policies and activities are ingrained throughout the supply chain, and we build strong relationships with procurement partners to better visualize the supply chain. We will work with our procurement partners to formulate and enhance business continuity plans (BCP), monitor CO2 emissions, and strengthen human rights due diligence, aiming to be able to respond flexibly to significantly changing business risks and social issues, and to achieve risk reduction and sustainable growth.

Goal

Vision A sustainable supply chain that remains sound at all times in the face of business risks and social issues
Strategy Building a mechanism for supply chain risk assessments and immediate emergency response
Indicator: Goal (achievement year)
  • Critical procurement partner percentage of human rights due diligence*1: 100% (FY2025)
  • Understanding BCP systems in the supply chain*2: 100% (FY2025)
  1. *1If a survey or audit indicates that corrective action is required, such action will be implemented until the improvement is completed.
  2. *2We manage the scope of the supply chain required to establish a BCP system according to the number of suppliers.

Basic Approach

Nikon considers its suppliers important partners helping us create and provide products and solutions useful for the world. Based on this belief, we strive to deepen mutual understanding and build trust with these procurement partners, and seek co-existence and co-prosperity with them. Furthermore, as a company working to build a better society and global environment as well as realize sustainable growth, we have established the Nikon Basic Procurement Policy to continually supply the world with useful products and solutions. Under this plan, we carry out our procurement activities in an honest and fair manner.

Nikon Basic Procurement Policy (Summary)

Procurement based on the concept of partnership

  1. 1.Sustainable corporate activities
  2. 2.Open-door procurement
  3. 3.Procurement founded in fair competition

System

Each fiscal year, we set targets to be addressed for important issues in the area of establishing the supply chain. These targets, and progress toward their achievement, are reported at the Sustainability Committee. We have also established a Supply Chain Subcommittee under the supervision of the Procurement Sector Manager, with the heads of quality assurance and procurement from each business and the presidents of Group manufacturing companies in and outside Japan as core members. This subcommittee reports on activities and deliberates on plans for a responsible supply chain. Under this subcommittee, we have established the CSR Procurement Promotion Conference and the Green Procurement Promotion Conference to promote specific activities for a responsible supply chain in cooperation with procurement departments and relevant departments in our businesses, as well as the management departments at each manufacturing facility.

Outline of Supply Chain Management System

Sustainability Committee / Supply Chain Subcommittee / CSR Procurement Promotion Conference / Green Procurement Promotion Conference

Fiscal Year 2022 Goals and Results

Swipe horizontally to view full table.

Goals for Fiscal Year 2022 Results for Fiscal Year 2022
CSR assessment of key partners (tier 2 suppliers and beyond) that should be prioritized in CSR procurement risk management Conducted assessment for 10 key partners (suppliers with significant impact on business) using a questionnaire
Conduct CSR audits of three procurement partners Conducted CSR audits and requested improvements from two procurement partners (one was scheduled to be conducted in June 2023 due to schedule adjustments)
Expand the survey on tantalum, tin, tungsten, gold, and cobalt contained in products including batteries and other imaging products in order to procure minerals in compliance with various regulations and laws in each country Expanded the scope of the survey to include batteries and other imaging products
Identified risks from survey results and conducted due diligence
Understand the BCP structure of procurement partners Conducted BCP structure surveys for 71 procurement partners to understand establishment status

Support for Responsible Minerals Sourcing

Besides establishing its Responsible Minerals Sourcing Policy, the Nikon Group collaborates with procurement partners in conducting surveys on responsible minerals sourcing and due diligence.

Procurement Partner Briefing

Sustainability Report

For more information, refer to Building a resilient supply chain in the Sustainability Report.

Supply Chain Management

  • Basic Approach
  • The Nikon Group’s Supply Chain
  • System
  • Identifying Critical Procurement Partners
  • Communication with Procurement Partners
  • Initiatives for Procurement Partners

Promoting CSR Procurement

  • Basic Approach
  • Initiatives for Procurement Partners
  • Results of Fiscal Year 2022 Assessment
  • Support for Responsible Minerals Sourcing

Promoting Green Procurement

  • Basic Approach
  • Environmental Management System Survey and Assessment
  • Education and Communication
  • Results of Fiscal Year 2022 Assessment

Relevant Information

  • Procurement

    Contains the Nikon Basic Procurement Policy, the Nikon CSR Procurement Standards, the Responsible Minerals Sourcing Policy and the Nikon Green Procurement Standards.

Society/Labor

Sustainability