Sustainable Procurement

The Nippon Paint 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. We have established a Procurement Policy as our basic approach to business transactions with suppliers and base our procurement activities on this policy.

Our actions for sustainable procurement

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.

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.

Conflict mineral surveys

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.

Survey scope The survey minerals in 2021: tantalum, tungsten, tin, gold, cobalt, mica
The survey minerals in 2020: tantalum, tungsten, tin, gold, cobalt
The survey minerals in 2019: 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 CMRT recovery rate Results
2021 survey 374 8.1% 98.9% 適正
2020 survey 179 4.0% 100.0% 適正
2019 survey 179 4.0% 100.0% 適正

Development of a Business Continuity Plan

The Japan Group has been reducing the risk of raw material supply interruptions by using multiple sources for raw materials and receiving from suppliers information about the availability of raw materials as part of supplier engagement activities. As part of our BCP, our Group surveys suppliers in order to determine their preparedness for a natural disaster or a major chemical plant accident and to work together for countermeasures if any problem is found. In addition, we use a simultaneous inquiry system to identify serious risks. In 2021, we conducted 23 surveys about the impact of typhoons and earthquakes.

The 2021 surveys            
  • Earthquake impact survey (7 times)
  • Cold wave impact survey (North America)
  • Heavy rain and flooding impact survey (Europe)
  • Heavy rain and flooding impact survey (China)
  • Hurricane impact survey (U.S.)
  • Tornado impact survey (U.S.)
  • Flooding impact survey (Malaysia)
  • Supplier survey on inappropriate incidents
  • Supplier survey on factory fire impact (Germany)
  • Supplier survey on factory explosion impact
  • Supplier survey on factory suspension impact
  • Supplier survey (China)
  • Supplier survey on factory complex explosion impact (Germany)
  • Supplier survey on production restrictions (China)
  • Supplier survey on petrochemical complex fire impact
  • Survey on impact of containership grounding in Suez Canal
  • Survey on electric power use control impact (China)
The 2020 survey
  • Pandemic impact survey (6 times)
  • State of emergency declaration impact survey
  • Earthquake impact survey
  • Typhoon impact survey
  • Flooding impact survey (China)
  • Supplier survey on oil refinery fire impact
The 2019 survey            
  • Earthquake impact survey
  • Typhoon impact survey (twice)
  • Supplier survey on chemical plant explosion impact (China)
  • Supplier survey on chemical plant explosion impact (U.S.)

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.

Modern Slavery Statement

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