Our actions for sustainable procurement
Our approach to raw material procurement
Our Group’s businesses depend on the supply of a broad range of products and services, such as raw materials, equipment, other materials, and information services. Maintaining a sound relationship of cooperation with suppliers is essential for the sustainable growth of our businesses. We will create new opportunities by building closer communication and stronger trust with suppliers.
Japan Group
We established the Procurement Guidelines, which are aligned with the Supplier Code of Conduct 2022 and clearly set rules and procedures to be followed by the Group and its suppliers for responsible procurement. From the social perspective, the guidelines are consistent with major international frameworks and standards for social activities, including frameworks for the respect for human rights. The guidelines also define our environmental activities for the understanding and practice of environmental measures. This includes complying with all laws and regulations in every country and region and implementing measures to manage chemicals of concern and
Responsible procurement of raw materials
When laws and regulations are established or revised or new raw materials are used, we examine and update Safety Data Sheets (SDS) and product specifications for chemicals contained in raw materials used to manufacture our products with the cooperation of product safety departments. Based on this information, the Japan Group provides customers with information they require to use our products in compliance with regulations in Japan and other countries. We also participate in the initiatives of Japan Chemical Industry Association for the development of a mechanism to share information on risk assessments of chemicals in the supply chain, and supply information requested by customers.
Conflict mineral survey
The Japan Group aims to prevent funds from going to organizations that violate human rights or use unjust activities to produce raw materials. For this purpose, we gather information about smelters of conflict minerals, such as 3TG (tin, tantalum, tungsten, and gold), cobalt, and mica, by tracing back the supply chain. We make sure that the minerals used in raw materials are supplied by a proper registered smelter and provide information about the smelter to users at their request.
In 2021,we conducted our annual survey on conflict minerals based on the Conflict Minerals Reporting Template (CMRT) and the Extended Mineral Reporting Template (EMRT) using data on raw materials that contain 3TG, cobalt, and mica by referring to the composition of raw materials used in our products. We responded to our customers’ request for survey by using the results of our annual survey. We found no problems involving raw materials used in our products in 2020, 2021, and 2022.
| Survey scope | The survey minerals in 2022: tantalum, tungsten, tin, gold, cobalt, mica The survey minerals in 2021: tantalum, tungsten, tin, gold, cobalt, mica The survey minerals in 2020: tantalum, tungsten, tin, gold, cobalt |
|---|---|
| Survey template | Conflict Minerals Reporting Template Extended Minerals Reporting Template |
Survey results
| Results | Number of raw materials | Ratio of purchase price | Recovery rate | Results |
|---|---|---|---|---|
| 2022 | 347 | 3.8% | 100.0% | Appropriate |
| 2021 | 374 | 4.0% | 100.0% | Appropriate |
| 2020 survey | 179 | 4.0% | 100.0% | Appropriate |
NIPSEA Group
We remain committed to operating as a responsible business that is held to high standards and strives to create a positive impact on sustainable development. Our Supplier Code of Conduct, which outlines clear business conduct expectations for new and existing suppliers, ensures that our business partners uphold the same high standards that we do. We also encourage our suppliers to attain additional accreditations by local advocacy groups that cover a wider range of green assessments that include water, material, and power management.
DuluxGroup
We manage modern slavery risks throughout our supply chain through our the Supplier Procurement Program. The program is designed to accord with standard global supply chain systems and guidance, including International Labour Organization (ILO) conventions, the Ethical Trading Initiative (ETI) base code, ISO 14001 and the SEDEX code, with the aim of identifying and addressing modern slavery risks and maintaining a responsible and transparent supply chain. The program includes undertaking on-site audits of suppliers (and their facilities) to verify compliance with our Sustainable Procurement Standard and identify any required improvement actions.
Compliance with the Modern Slavery Act
DuluxGroup has established a policy and manages risks to ensure that no slavery and human trafficking occurs in its businesses and supply chain. DuluxGroup publishes a Modern Slavery Statement annually in compliance with the Modern Slavery Act.
Dunn-Edwards
We respect the inherent worth of each individual, and we strive to conduct all our business with the highest sense of ethics, integrity and responsibility. To that end, our partners with suppliers that share the same values - working together to ensure the supply chain is free from forced labor, child labor, human trafficking and slavery. This effort includes initiatives aimed to clearly articulate our shared expectations and audit for compliance through our Supplier Code of Conduct initiative.
Product stewardship
Reducing negative effects on sustainability throughout the product life cycle is a priority of the Japan Group. In particular, the management of risks related to hazardous chemical substances used in products beginning with the raw materials and design stages is critical. In order to manage these risks, the Group has established rules for prohibiting or restricting the use of substances based on the laws of each region to mitigate risk.
To control the use of chemicals in compliance with the requirements of different regions, the Group uses Green 30 in Japan, Chemicals of Concern in Australia, and Negative Substance List in China.