Policy and Basic Approach

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:

1. Materials that do not contain or reduce the use of hazardous substances
2. Materials 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
3. Materials that improve the living standards of producers and the local environment
4. Materials that take into consideration the working environment and human rights of the workers involved
5. Materials that do not infringe on the rights of local residents around the production site, etc.
6. Materials that do not contain conflict minerals mined in the Democratic Republic of the Congo and neighboring countries

Structure & System

The Kansai Paint Group has established the Sustainability Promotion Committee under the Corporate Governance Committee to oversee the improvement of corporate value from a non-financial perspective and make prompt decisions. The Sustainability Development Department, a standing organization, revises plans, while the Sustainability Promotion Department collaborates with other departments to execute inventive yet feasible measures. They work together with business units to improve corporate value over the long term. Going forward, we will continue to steadily promote sustainability initiatives within a framework aligned with our new management policies.

Initiatives

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.