Sustainability

Supply Chain Management

Sustainable Procurement Measures

Supply Chain Outline

 Alps Alpine engages in procurement activities with around 1,000 suppliers worldwide. We work alongside suppliers in each region to improve sustainability across the entire the supply chain.

Self-Assessments

 Alps Alpine carries out procurement activities all over the world. We are of the view that we should pursue fulfillment of corporate social responsibility across the entire supply chain, not just our own business operations. Together with suppliers, we endeavor to pursue fulfillment of our responsibility to society through conformance to guidelines on responsible business conduct published by the Japan Electronics and Information Technology Industries Association (JEITA). Between fiscal 2017 and 2019, we asked 271 key suppliers in Japan to carry out a self-assessment. As of August 2020, the response rate was 99.6%. In fiscal 2019, no issues required corrective measures as a result of self-assessments.

Promotion of Green Procurement

 The Alps Alpine Group engages in "green" procurement to be able to provide environmentally friendly products to customers. This involves procuring materials and parts containing no hazardous substances in line with our Green Procurement Standards. In addition, suppliers for our electronic components segment undergo an environmental evaluation to assess their environmental efforts, and an evaluation of parts and materials to confirm that supplied items do not contain substances specifically prohibited by the Alps Alpine Group. In fiscal 2019, we certified an additional 61 manufacturing locations.
 The Green Procurement Standards are revised annually to reflect applicable legislative, regulatory or other changes. Annual reviews of materials and parts manufacturing bases are also carried out as part of ongoing improvements.

Responsible Minerals Sourcing

 In view of our corporate social responsibility, Alps Alpine maintains a basic policy of not engaging in procurement activities that encourage the use of child labor or other human rights violations, environmental destruction, unlawful or unethical conduct, or antisocial or inhumane behavior.
 We identify the following as minerals produced in conflict-affected areas or areas where there is suspected antisocial or inhumane behavior (high-risk minerals): tin, tantalum, tungsten, gold and cobalt.
 To ensure strict compliance with the above policy, Alps Alpine performs due diligence for sourcing of high-risk minerals and requests the following of suppliers.

Suppliers are requested to
・Provide information on smelters and refineries that supply high-risk minerals
・Source high-risk minerals from smelters and refineries certified as not aiding conflict or committing human rights violations

 Due diligence is performed in conformance with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.

Response to Procurement Risk

 The Alps Alpine Group has set up international procurement offices (IPOs) to carry out procurement activities at production bases in 29 locations in 12 countries: Japan, China, South Korea, Malaysia, Mexico, Ireland, Germany, the Czech Republic, India, Thailand, and Hungary as well as in Taiwan and Hong Kong. Procurement entails obtaining at the right time the required volume of materials and parts that are superior in quality, cost, delivery, and environmental performance. It is therefore essential that the Group procures from suppliers it can trust. For that reason, the Group makes efforts to build trust-based relationships.
 The supply chain is also affected by natural disasters, accidents, labor disputes, bankruptcies, and other occurrences, with extensive repercussions for procurement activities as well as for such operations as logistics. The Group regularly updates its supply chain database and is currently establishing structures for globally centralizing information and responding in a timely manner when procurement risks do eventuate. The Alps Alpine Group continuously holds policy briefings and financial results briefings with its suppliers. At these briefings, it requests supplier cooperation with its approach to addressing procurement risks.
 The Group believes that responding to such risks is not possible without the support of suppliers and it will continue efforts to strengthen that cooperation going forward.

Cooperation with Industry Groups

 Alps Alpine agrees with the stance of the Japan Electronics and Information Technology Industries Association (JEITA) and has been participating in the activities of JEITA's Responsible Minerals Trade Working Group since its establishment.

Communication with Suppliers

Supplier Day online event

Supplier Day online event


 Alps Alpine strives to strengthen partnerships with suppliers as we value coexistence and co-prosperity through trusting relationships. We hold business policy briefings and status updates around the world, for example to explain the current production and sales situation and purchasing policy, and to commend suppliers that have cooperated with improvements in the areas of quality, cost and delivery. At briefings, we also request supplier support in dealing with procurement risks.
 In fiscal 2020, Supplier Day was held as an online event due to the COVID-19 outbreak. Alps Alpine will continue efforts to strengthen cooperation and advance activities with suppliers in the belief that such cooperation is vital for the realization of sustainable procurement.