CSR activities in FY2018
Relationships with Business Partners
Basic approach
We conducts procurement activities under the Basic Procurement Policy which clarifies our direction with the concept of: Globalization, Fairness/Impartiality and Environmental Preservation. These principles are intended to build up relationships of trust with business partners and procurement divisions of headquarters, as well as its related departments.
We work to conserve the environment through our activities as defined in the NTN Group Green Procurement Standards, giving priority to our business partners with outstanding performance for environmental conservation and environmental quality. We also encourage our partners to take proactive CSR actions positively and proclaim that in the NTN CSR Procurement Guidelines. Our domestic and overseas production bases work to ensure that supplies are procured locally or from the optimal locations.
Revision of Green Procurement Standards
The NTN Group established the Green Procurement Standards and has been striving to conserve the environment and improve environmental performance of our products together with business partners who provide us with raw materials, parts and other materials.
een Procurement Standards, and promoted the compliance with environmental laws and regulations and improvement of environmental performance throughout the entire supply chain. As to the compliance with laws and regulations, we added phthalate esters, which will be subject to regulations under the revised EU RoHS2, to the list of prohibited substances in parts and materials purchased by us, and clarified compliance obligations such as the submission of the non-inclusion certification of NTNprohibited substances. For the improvement of environmental performance of our business partners, we added more requirements to our suppliers such as providing a report on the amount of their CO2 emissions when requested by NTN, and promoting water risk management demanded by climate changes which is becoming increasingly serious globally.
We briefed our business partners on the revisions at the supplier meeting, and asked for their understanding of our green procurement policy and submission of necessary documents such as the non-inclusion certification of NTN-prohibited substances.
NTN CSR Procurement Guidelines
In April 2016, we established the NTN CSR Procurement Guidelines for the purpose of promoting activities throughout the entire supply chain for social issues such as human rights, labor practices, the environment, elimination of anti-social forces and anti-corruption. These guidelines establish 28 topics related to compliance, anti-corruption, human rights and labor, the environment, quality and safety, information security, business continuity management and social contributions, and we request our suppliers to further promote their CSR procurement activities.
CSR questionnaire for suppliers
CSR questionnaire for suppliers
To raise recognition for the NTN CSR Procurement Guidelines and check compliance with them, we annually conduct a survey for our business partners.
For the fiscal year ended March 31, 2019, we widened the scope of survey and implemented at 489 business partners, up 196 from the previous survey.
We found that about 80% of our business partners are adequately managing compliance, human rights and labor, quality and safety and information security. However, we found that about half of our business partners were in the process of working on the environment, business continuity plans, social contributions and CSR procurement, or would need some time before taking on such tasks.
To have our business partners understand the importance of CSR procurement throughout the entire supply chain, we will continue our awareness-raising activities.
Subcontracting Act compliance work
We conduct self-audits for our subcontracting in order to maintain the appropriateness of our subcontracting activities. To have our domestic business sites autonomously self-audit their compliance with the Subcontracting Act, we implement a certification system for “subcontracting self-auditor.” In September 2018, we held a subcontracting self-auditor training course and newly certified 40 self-auditors for a total of 82 certified self-auditors. Domestic business sites (22 sites) conducted self-audits led by the self-auditors.
Conflict minerals survey
We conduct a survey periodically, to ensure that certain materials and our finished products do not contain particular materials that could be a source of funds for armed groups in conflict zones, or misused for immoral issues such as human rights violations, illegal mining or smuggling. We respond to customer’s inquiries concerning conflict materials based on the results of this survey.
In the fiscal year ended March 31, 2019, we traced back through the supply chain to identify material refiners through a survey, requested to 304 business partners. More than 88% of partners responded with answers indicating that they do not use any conflict minerals. We will continue to conduct a survey periodically and monitor the inclusion of conflict minerals from conflict zones or high-risk zones.
Business partner response rate
NTN global procurement organization, transform to renew NTN Group procurement way
Ever more international markets, current uncertain business climate, innovation, digitalization, electrification, sustainability, ... are the challenges we aim to overcome. NTN Group objectives can only be achieved through strategies that are focused on performance and profit. Establishing a World-Class Procurement Organization and creating our own NTN Procurement Way, focused on overall cost performance, will contribute to increase NTN Corporate Value.
The Medium-term Management Plan “DRIVE NTN 100” has initiated deep structural reforms. The combined goals of concentrate NTN manufacturing sector on high added-value products and growing areas has led to drive the reformation variable cost structure and establish Procurement Headquarters in April 2018. A real Transformation of our Global Procurement organization has been engaged to reach our QCD (quality, cost and delivery) target in an efficient and sustainable way, in order to take the full benefits of the company globalization and scale.
Operating Officer,
Procurement Headquarters
Herve Brelaud
Vision and objectives
We aim to establish a World-Class Procurement Organization to achieve the high level of overall cost performance for the purchased goods and services, in close cooperation with our key suppliers. Creating our own NTN Procurement Way, recognized by our customers and suppliers, internal and external stakeholders, will be our contribution to increase the Corporate Value.
Organization
Taking the benefit of NTN global presence, we will establish NTN Global Procurement Network in Japan, Europe, China, America, India and Asia, with the aim of promoting local procurement and global suppliers.
Process
In the spirit “One Company, One Way”, we aim to unify NTN best practices worldwide, promoting the wide utilization of digital tools. Global category management as well a global sourcing will lead us to offer to our supplier base larger business opportunities and allow optimized overall cost performance.
Human resource
The right person in the right place! Following Hitozukuri principle we intend to train intensively our procurement teams and actively promote global mobility.
Data and system
At the heart of our global procurement organization, we will set up a lean and robust information system, taking advantage of the latest digital solution, to allow a consistent spend control as well as bringing NTN teams and our suppliers closer together.