Basic Concept

We have set our vision to “transform into a supply chain creation company,” positioning the building of a sustainable supply chain as one of our key priorities. Through appropriate responses to issues related to human rights and environment, we will ensure the soundness of the entire distribution network in which we are involved, and aim for sustainable growth together with our business partners.

In order to build a sustainable supply chain, we believe that it is important to share our idea with our suppliers and have them understand and cooperate with our procurement policies, and we have established our Supply Chain Action Guidelines.

We have prepared the  “Hanwa Group Supply Chain Handbook”  for the purpose of complementing the contents of the “Supply Chain Action Guidelines.”

We build good relationships with various countries and local communities where we conduct business activities and contribute to sustainable development in those regions. We aim to contribute to the sustainable development of the regions by revitalizing human resource development and local societies and economies through economic contributions such as local employment and local procurement of goods and services from the areas surrounding our businesses, as well as through social contribution activities.

We conducted a supply chain questionnaire on ESG initiatives among select suppliers, with a primary focus on those with substantial procurement volumes, and received responses from 252 companies in FY2024. As a result of reviewing the questionnaire responses and the suppliers' initiatives regarding ESG, for business partners deemed to require improvement, we are committed to implementing corrective measures, such as requesting improvements through written means and confirming the status of improvements. Going forward, we will continue to proactively communicate our core principles, such as our Supply Chain Action Guidelines and Human Rights Policy, to our business partners, and will implement corrective measures as necessary, including requesting improvements or conducting status checks.

Education and Training on Supply Chain Management

In order to improve our capabilities to respond to environmental and social issues in the supply chain, we distribute the "Hanwa Group Supply Chain Handbook," which includes our Environmental Policy, to business partners, and conduct training targeting employees of the Company and business partners. For our employees, to deepen understanding regarding social issues in the supply chain, including respect for human rights, we conduct online human rights training on an ongoing basis, making the content available to all employees. This training targets employees involved in purchasing and trading operations, aiming to promote understanding of points to note in building relationships with business partners and making transaction decisions.

In the Energy business (Energy & Living Materials), based on business characteristics and risks, we conduct training targeting our employees engaged in the business and persons in charge at business partners. This training covers compliance with relevant laws and regulations, ensuring traceability, and responding to legality (such as illegal logging). It also aims to foster a common understanding of environmental and social issues in the supply chain, such as disseminating the Hanwa Group Human Rights Policy and Hanwa Group Health and Safety Policy, preventing discrimination, views on labor practices, and pollution prevention.

Through these initiatives, we aim to improve the understanding of both employees and suppliers, and are working to reduce social risks throughout the entire supply chain.