Toppan believes that sustainable procurement throughout the supply chain is key to fulfilling social responsibilities and supporting a sustainable society and has advanced activities with suppliers and subcontractors based on the CSR Procurement Guidelines. Businesses must address human rights issues, ensure occupational safety and health, protect the environment, and fulfill other corporate responsibilities. Toppan understands that it must manage the supply chain with more concrete and diverse measures.
The Group has therefore revised its CSR Procurement Guidelines into the Sustainable Procurement Guidelines, adopting new themes aligned with society’s expectations. Toppan will share the revised guidelines throughout the supply chain and accelerate sustainable procurement practices with suppliers and subcontractors through a cycle of operations, audits, and refinements to enhance corporate value for all stakeholders.
Updating the Procurement Guidelines
In January 2022, the Toppan Group revised its CSR Procurement Guidelines (established in 2007, previously revised in 2014) in line with recent trends in sustainable procurement such as new international standards and social demands. They are now called the “Toppan Group Sustainable Procurement Guidelines.”
The guidelines consist of the Basic Procurement Policy, a framework to be observed by every Toppan department responsible for procurement or involved in operations linked to products and services, and the Sustainable Procurement Standards, which are to be satisfied by suppliers and subcontractors.
The Sustainable Procurement Standards comprise nine sections: “legal compliance and respect for internationally recognized standards,” “human rights and labor,” “health and safety,” “environment,” “fair business and ethics,” “quality and safety,” “information security,” “business continuity planning,” and “establishing a management system.”
Based on the Toppan Group’s Human Rights Policy, Declaration on the Global Environment, and Basic Policy on Biodiversity, procurement departments also implement human rights initiatives and environmental conservation activities across the supply chain and take a proactive approach to the sustainable use of raw materials to avoid or minimize impacts on biodiversity and the environment.
The Structure of the Toppan Group Sustainable Procurement Guidelines
This is a basic policy that applies to all workers involved in procurement activities at the Toppan Group.
We fairly and impartially offer opportunities to all Business Partners and potential Business Partners.
We comply with domestic and overseas laws and regulations and conduct fair business transactions based on corporate ethics.
We strictly control the information obtained through procurement activities.
We work to conserve the environment and reduce impact on the environment.
We pursue QCD (Quality, Cost, Delivery) in order to meet the needs of the market.
We work to foster mutual cooperation and build relationships of trust with Business Partners.
We promote sustainable procurement throughout the entire supply chain.
These are sections that set out requirements for suppliers and subcontractors*.
- Legal Compliance and Respect for Internationally Recognized Standards
- Human Rights and Labor
- Health and Safety
- Fair Business and Ethics
- Quality and Safety
- Information Security
- Business Continuity Planning
- Establishing a Management System
- “Subcontractors” are referred to as “Business Partners” in these guidelines.
Toppan has introduced the following policies and guidelines to evolve sustainability management in the Group year by year: the CSR Procurement Guidelines in 2007, the Toppan Group Declaration on the Global Environment in 2009, the Basic Policy on Biodiversity in 2010, and the Toppan Group Sustainable Procurement Guidelines in 2022.
Personnel from the Purchasing & Cost Management Center in the head office Manufacturing Management Division and other procurement departments across the Group lead initiatives (see the list on the right) to implement sustainable procurement in close cooperation with suppliers and subcontractors.
Operational Framework for Sustainable Procurement
Group Policies and Management Metrics on Sustainable Procurement
- Key suppliers and subcontractors are the top 90% of business partners rated by transaction amount and partners that provide materials and components essential for the Group’s business continuity.
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Sustainable Procurement Initiatives
Applying the Sustainable Procurement Guidelines
The Toppan Group will implement the following measures in fiscal 2022 to apply the Sustainable Procurement Guidelines throughout the entire supply chain, in cooperation with suppliers and subcontractors.
- Hold briefing sessions on the Sustainable Procurement Guidelines
- Perform self-assessments with questionnaires on the observance of the procurement guidelines
- Conclude cooperation agreements and basic sale & purchase agreements (stipulating the observance of the procurement guidelines)
- Check efforts to act ethically in accordance with the Toppan Group Human Rights Policy
- Check efforts to safeguard business continuity in the event of a wide-scale disaster
The Group has also formulated its Standards for the Management of Chemical Components of Raw Materials, a set of standards to control chemical components throughout the entire supply chain.
Advocating the Basic Procurement Policy(Fair transactions by procurement departments)
Sustainable procurement should be built upon trust between the Toppan Group and its suppliers and subcontractors. Toppan has set up a Supplier Hotline to enhance transparency and fairness in transactions and deepen relationships of trust with business partners. The hotline is open for use by all suppliers and subcontractors of the Group.
Toppan also sends suppliers questionnaires to monitor whether the Group’s procurement departments operate properly in accordance with the Basic Procurement Policy in their transactions with the suppliers.
The Toppan Group promotes sustainable procurement based on the Basic Policy on Biodiversity. To govern the procurement of raw materials, Toppan has formulated a set of paper procurement guidelines to advance the sustainable use of paper, a resource representing 70% of the Group’s material input.
To assure the sustainable use of forest resources, the Group cooperates with paper manufacturers in the supply chain to confirm that the lumber they use for paper production is legally obtained.