Supply Chain Management | Sustainability

Basic Policy

Alps Alpine bases its procurement activities on the principle of integrity as it seeks to build trusting and collaborative relationships through the fair treatment of business partners. We also work together with partners to promote safety and environmental preservation in order to contribute to the realization of a sustainable society through supply chain action. Specific procurement activities are shaped by policies and guidelines for accomplishing these objectives.

Alps Alpine Material Procurement Policy

Open and fair	Alps Alpine selects the best suppliers from a global perspective after making fair comparisons and assessments of aspects such as quality, product safety, cost and delivery.
Legal compliance	Alps Alpine complies with applicable national laws and regulations in its transactions with suppliers and manages and protects confidential information obtained through business operations in an appropriate manner.
Human rights, labor, health and safety	Alps Alpine carries out procurement activities that accommodate international standards and national, or regional, laws and regulations relating to human rights, health and safety, and working conditions.
Green procurement	Alps Alpine seeks to support preservation of the global environment and manage hazardous or restricted substances through joint efforts with suppliers in line with the Green Procurement Standards.
Partnership	Alps Alpine endeavors to build trust-based relationships of mutual advantage with suppliers through partnership.

Promotion Structure

Supply chain management is implemented through Group-wide coordination led by the Procurement Headquarters under the supervision of the Chief Procurement Officer (CPO). The Procurement Planning Office serves as secretariat for the formulation of targets and activity plans and the implementation of measures in coordination with each headquarters and business division, production bases, and Group companies. Progress of implementation is regularly reviewed by the CPO and reported to quarterly meetings of the Sustainability Committee to promote continuous improvements and enhanced effectiveness.

Alps Alpine Responsible Corporate Action Guidelines (Guidelines for Responsible Business Conduct)

To promote corporate social responsibility (CSR) across the entire supply chain, Alps Alpine formulated the Alps Alpine Responsible Corporate Action Guidelines based on the Responsible Business Conduct Guidelines of the Japan Electronics and Information Technology Industries Association (JEITA). These guidelines cover the matters pertaining to human rights, labor, health and safety, the environment, fair trade, and quality and are available on our website and sent directly to our major suppliers.

1. Legal Compliance, Respect for International Norms
2. Human Rights and Labor	(2-1) Prohibition of Forced Labor (2-2) Prohibition of Child Labor / Consideration for Young Employees (2-3) Consideration for Working Hours (2-4) Appropriate Wages and Allowances (2-5) Prohibition of Inhumane Treatments (2-6) Prohibition of Discrimination (2-7) Freedom of Association, Right to Collective Bargaining
3. Health and Safety	(3-1) Occupational Safety (3-2) Emergency Preparedness (3-3) Occupational Injury and Illness (3-4) Industrial Hygiene (3-5) Consideration for Physically Demanding work (3-6) Machine Safeguarding (3-7) Facility Health and Safety (3-8) Health and Safety Communication (3-9) Health Care Management of Workers
4. Environmental	(4-1) Environmental Permits and Reporting (4-2) Energy Consumption and Reduction of Greenhouse Gas Emission (4-3) Air Emissions (4-4) Water Management (4-5) Effective Use of Resources and Waste Management (4-6) Chemical Substance Management (4-7) Control Hazardous Chemical in Products (4-8) Conservation of biodiversity
5. Fair Trade and Ethics	(5-1) Corruption Prevention (5-2) Prohibit Abuse of a Superior Position (5-3) Prohibit the Offering and Receiving of Inappropriate Profits and Advantages (5-4) Provide Accurate Information (5-5) Respect Intellectual Property (5-6) Fair Business Execution (5-7) Whistleblower Protection (5-8) Responsible Sourcing of Minerals (5-9) Prohibition of Conflicts of Interest (5-10) Indigenous and Community Rights to Land, Forests and Water (5-11) No Use of Security Forces Intending to Violate Human Rights
6. Quality and Safety	(6-1) Ensuring Product Safety (6-2) Quality Management (6-3) Providing Accurate Product and Service Information
7. Information Security	(7-1) Cyber Security (7-2) Protection of Personal information (7-3) Prevention of Leakage of Confidential Information
8. Business Continuity Plan	(8-1) Formulation and Preparation of Business Continuity Plan
9. Contribute to Society	(9-1) Contribute to Society and Community
10. Deployment to Internal and Supply Chain	(10-1) System and Deployment of CSR Activities Internally (10-2) System and Deployment of CSR Activity to Supply Chain

Alps Alpine Responsible Corporate Action Guidelines (Japanese/English)

Education

Buyer Training

Alps Alpine provides training for procurement personnel (buyers) to promote responsible procurement activities.
The aim of the training is to build greater buyer awareness, especially about basic approaches to sustainability and social and environmental issues in the context of supply chain management, and to impart the knowledge required to carry out responsible procurement activities.

Metrics and Targets

Mid-Term Management Plan 2027 metrics and targets and past performance are as follows.

	Scope	FY2023 Results	FY2024 Results	FY2025 Results	Mid-Term Management Plan 2027 FY2027 Target
Number of suppliers rated C in CSR assessments	ー	0 (Coverage: 171 companies; response: 100%)	0 (Coverage: 153 companies; response: 90%)	0 (Coverage: 162 companies; response: 100%)	0
Percentage of certified smelters used (CMRT)	ー	65.5%	90.8%	94.6%	94.0%
Establish a system for early-stage impact assessment of risks through supply chain surveys	Consolidated	ー	ー	First survey completed	Completion of systembased supply chain surveys through Tier N