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Promoting Supply Chain Management

In all stages of our business activities, from research and development, procurement of materials, production, distribution, and sales of products, to their use and disposal, we will undertake our procurement activities with due consideration for the health and safety of our employees, local residents, customers, and others. Kansai Paint has formulated the following Green Procurement Guidelines, and is promoting procurement activities based on these.

Green Procurement Guidelines

In accordance with its Company Policy for Global Environmental Issues, Kansai Paint procures materials with the smallest possible environmental impact from suppliers with excellent environmental practices. Giving priority to sustainable global environmental conservation, we will practice sustainable procurement with due consideration for the global environment.
Sustainable procurement: Procurement that has the most positive environmental, social, and economic impact over its entire life cycle. It covers products, materials (raw materials and auxiliary materials) and parts (purchased parts and subcontracted parts) procured by Kansai Paint in its production activities.

(1) Procurement from responsible (CSR-fulfilling) suppliers

We procure from suppliers who practice the following:

  • Compliance with laws related to chemical substance regulations in Japan and overseas, such as RoHS, ELV, REACH, and the Law Concerning the Examination and Regulation of Manufacture of Chemical Substances
  • Cooperation with our survey on chemical substances, etc., contained in products
  • Establishment, maintenance, and improvement of environmental managements system by acquiring ISO 14001 certification, etc.
  • Preservation of soil/water sources/biodiversity
  • Development and manufacture of products with reduced environmental impact
(2) Procurement of sustainable materials (products, raw materials, auxiliary materials, parts, etc.)

We will procure the following kinds of materials:

  • 01Materials that do not contain or reduce the use of hazardous substances
  • 02Materials that take into consideration the conservation of sustainable resources and biodiversity related to the procurement of those resources
    • Materials made from reused, reduced, or recycled materials
    • Materials made from non-edible biomass
    • Materials that reduce the emission of greenhouse gases (GHG) such as CO2 in manufacturing, distribution, and use
  • 03Materials that improve the living standards of producers and the local environment
  • 04Materials that take into consideration the working environment and human rights of the workers involved
  • 05Materials that do not infringe on the rights of local residents around the production site, etc.
  • 06 Materials that do not contain conflict minerals mined in the Democratic Republic of the Congo and neighboring countries

Legal compliance

(1) Compliance with laws, regulations, and social norms

In addition to complying with the relevant domestic and foreign laws and regulations, including the Act against Delay in Payment of Subcontract Proceeds, etc., to Subcontractors, social norms, and our own internal rules, we will also set fair and appropriate trading conditions in good faith, and will not engage in acts that deviate from sound business practices, such as abuse of a superior position.

(2) Respect for intellectual property rights, etc., and management of information

We will maintain the confidentiality of trade secrets, personal information, and other confidential information obtained in the course of business, and will not infringe on the intellectual property rights of other companies. We will only collect the internal information and personal information of business partners to the extent necessary to carry out our procurement activities, and will not collect such information with any other intention.

Support for business continuity

We conducted a questionnaire on business continuity management (BCM) for the top 50 suppliers (business sites) that were found to be at high risk as a result of our assessment of natural disaster risks, and conducted a more detailed questionnaire for the 23 business sites that had issues. In addition, we also conducted a questionnaire on 95 business sites that supply us with raw materials in large quantities. Having ascertained the BCM measures of suppliers with high disaster risks or large purchase volumes, we will consult with suppliers with inadequate BCM measures in place and ask them to take action to address the situation. At the same time, we will promote the stable procurement of materials by strengthening our measures to deal with material supply problems, taking into account the business conditions of suppliers and the survey of overseas suppliers on each occasion.
Also, we are promoting the use of multiple companies for raw materials at a high risk from natural disasters and which are single source materials.