The Daiwabo Group* has adopted the management philosophy of “creating a future that benefits society and the global environment.” The philosophy of putting the customer first is at the core of our management, and as a responsible member of the global supply chain, we recognize that efforts are needed to resolve human rights and environmental issues not just in the Daiwabo Group but across the supply chain. As such, we will endeavor to identify issues in relevant parts of the supply chain through our business activities, and ensure a stable supply of sustainable products and raw materials.

* The “Daiwabo Group” refers collectively to Daiwabo Holdings Co., Ltd. and our consolidated subsidiaries.

The Daiwabo Group seeks the understanding and cooperation of suppliers and other business partners in the following areas, and will work with them to promote sustainability initiatives.
 

The Daiwabo Group CSR Procurement Guidelines were established in June 2023 as a tool for promoting responsible procurement activities that take sustainability into consideration. The Daiwabo Group CSR Procurement Guidelines will be published online in order to help suppliers understand our Group’s policies, and efforts will be made to disseminate them when requesting CSR procurement questionnaires.

If it becomes clear that our business activities are facilitating environmental issues, human rights violations, or other issues in the supply chain, we will take appropriate steps to rectify the situation.

We will endeavor to disclose information related to the above in a timely and appropriate manner.

The Daiwabo Group cooperates with suppliers to promote procurement that takes into consideration compliance, reduction of environmental impact, human rights, labor, safety and health, and other issues. We continuously monitor and request our suppliers’ CSR initiatives. Specifically, we ask suppliers to complete the CSR procurement questionnaire and comply with the Daiwabo Group CSR Procurement Guidelines.
In order to ensure responsible procurement, we also continuously provide training on the Group’s management philosophy, the Group’s Code of Conduct, procurement policies, and related laws and regulations to employees in charge of procurement.

The Daiwabo Group has established the following KPIs with the aim of deepening mutual understanding and strengthening cooperative relationships through these activities, as well as to maintain quality in the supply chain and improve the effectiveness of our activities.

At the Daiwabo Group, we have established the Daiwabo Group CSR Procurement Guidelines in order to understand supply chain issues related to our business activities and to ensure a stable supply of sustainable products and raw materials. We have published the Guidelines on our website and ask for the understanding and cooperation of all our suppliers to proactively implement these Guidelines when requesting a CSR procurement survey.

The Daiwabo Group conducts CSR procurement surveys of its major suppliers to identify potential and actual risks in the supply chain and to improve transparency throughout the supply chain. As a result of the survey, we evaluate risks related to the environment, human rights, labor, health and safety, and other social issues, and for those suppliers that are identified as requiring improvement, we request individual improvement and follow-up.

The CSR procurement survey covers suppliers that account for up to 90% of the total trade value and are deemed to have a large financial impact on the Group, as well as those that supply important products and raw materials to the Group, those that supply irreplaceable items, and new suppliers.

The Daiwabo Group sees its suppliers not simply as business partners, but as precious partners working together to achieve goals, and is committed to deepening mutual understanding and strengthen cooperative relationships while ensuring greater transparency and efficiency throughout the supply chain.

Survey Method

As part of our supply chain management, we use the Global Compact Network Japan’s (GCNJ) CSR Procurement Self-Assessment Questionnaire (SAQ) for our surveys.
Reference: CSR Procurement Self-Assessment Questionnaire Tool
Survey items: a total of 114 questions

Grouping and Risk Analysis and Assessment

Based on the survey results, the surveyed suppliers are divided into three groups with criteria as shown in the table below.

Based on the results of risk Analysis and Assessment, individual support activities will be implemented for suppliers that fall under Group C to encourage improvements.

CSR Procurement Survey Results (Cumulative)

We conducted CSR procurement surveys on a total of 160 companies starting from FY2022, and received responses from 155 companies. We found that approximately 88% of suppliers surveyed were rated as “Good” or “Generally Good.”

FY2023 Survey Results

Based on the above criteria (regarding surveyed suppliers), the companies surveyed totaled: 121
CSR procurement questionnaire response rate: 95.8% (116 companies) 

CSR Procurement Survey Results and Assessment Scoring Rates

The overall average scoring rate for the nine survey items was 77%. Items with higher average scoring rates were labor, quality and safety, and information security. Additionally, there were no items with extremely low average scoring rates.

Grouping

The results of the suppliers who responded to the CSR procurement survey were divided into groups based on their “scoring rate” are as follows.

For Group C suppliers, we will conduct awareness-raising activities and provide support, and exchange opinions and work together to reduce risks to society and the environment throughout the supply chain, thereby enhancing sustainability. If understanding is not obtained or prompt improvement is not achieved after sufficient consultation, we will consider reviewing the business relationship. Additionally, if there is a serious violation of the Daiwabo Group’s CSR Procurement Guidelines, we will consider suspending business relations.

Effectiveness of Individual Company Support

Of the four supplier companies that were in Group C in the FY2022 survey, as a result of individual support provided by our operating companies, three have been moved to Group B after the FY2023 survey (support continues for the remaining one company).

Human Rights Initiatives

The Daiwabo Group believes that respect for human rights and environmental conservation are indispensable elements in the supply chain for stable and sustainable procurement. We have declared that we will work toward building a supply chain that takes human rights and the environment into consideration in accordance with the Daiwabo Group CSR Procurement Guidelines. And we require our suppliers to take measures such as respecting human rights, prohibiting discrimination, avoiding complicity in or encouraging human rights violations, prohibiting inhumane treatment, applying fair working hours, prohibiting forced labor, and providing fair wages.

Efforts Against Conflict Minerals

The products manufactured and sold by the Daiwabo Group contain materials derived from a variety of minerals. These materials are procured from origins around the world via diverse supply chains, some of which are known to be involved in mineral mining, smelting, and other processing sites where armed groups have been involved, as well as serious human rights violations and environmental destruction. We recognize that one of our corporate social responsibilities is to be aware of conflict zones and other high-risk areas and to avoid using materials supplied by businesses that pose a high risk to human rights and the environment in these areas. In accordance with the CSR Procurement Guidelines, the Daiwabo Group stipulates that we purchase and use raw materials that are free from conflict or crime (our efforts against conflict minerals). We prevent the purchase and use of minerals such as tin, tantalum, tungsten, gold, and cobalt related to conflicts and human rights violations or produced in conflict-afflicted and high-risk areas, and we also investigate and confirm with business partners.

A Partnership Creation Declaration

Daiwabo Information System Co., Ltd. in the IT infrastructure distribution business (hereinafter referred to as “DIS”) has further strengthened and is continuously working to build better relationships with its business partners and to improve the soundness of its transactions. The company has made a “Partnership Creation Declaration” to promote the creation of new value Daiwabo Information System Co., Ltd. in the IT infrastructure distribution business (hereinafter referred to as “DIS”) has further strengthened and is continuously working to build better relationships with its business partners and to improve the soundness of its transactions. The company has made a “Partnership Creation Declaration” to promote the creation of new value throughout the supply chain while responding to social needs.

Stability of Logistics Functions

If natural disasters such as heavy rain and floods increase due to climate change, logistics centers may be forced to suspend operations and products may arrive late. While continuing to implement BCP measures, we will also continue to minimize the impact of natural disasters by hedging risks with insurance and by dispersing logistics bases to reduce risks, as we have done in the past, and ensure the stability of the supply chain.

Promotion of Green Procurement

DIS is committed to promoting environmentally friendly products on a daily basis by purchasing environmentally friendly products and products from suppliers that have obtained ISO 14001 certification, and by recommending and proposing products and services that help reduce environmental impact to customers through daily sales activities. It is also working to popularize environmentally friendly products by improving searchability for environmentally friendly IT-related products on the iDATEN e-commerce system.