Supply Chain Management

In April 2021, NTN formulated a Procurement Policy corresponding to each target of the Sustainable Development Goals (SDGs). Based on the perspectives of “Fairness/impartiality,” “Compliance with Laws and Regulations,” “Green Procurement,” and “Coexistence and Co-prosperity,” we are communicating proactively with our business partners to build relationships of trust and conduct purchasing activities. We are also working to achieve local procurement at our global manufacturing sites, and to procure materials from optimal locations globally.
(For the Procurement Policy, click here)
Corporate Philosophy and Realization of A “NAMERAKA Society”:NTN Basic Policy|About Us|NTN Global

Stable supply chain management is essential for ensuring stable business operations. At our company, we conduct surveys of suppliers to assess management conditions and other factors, understand financial soundness and bankruptcy risks due to succession issues, and implement optimal measures according to the situation to achieve stable procurement. Additionally, we conduct surveys with our suppliers to confirm their compliance with legal regulations such as environmental regulations and labor laws, minimizing compliance and legal risks.
This fiscal year, we are working to strengthen information management across the entire supply chain by reviewing transaction agreements and introducing multi-factor authentication of our systems, thereby reducing security risks.

In today’s society, companies are expected to engage in sustainable procurement that takes into consideration environmental and human rights issues throughout the entire supply chain. The NTN Group’s supply chain management is in accordance with the “NTN Group Sustainable Procurement Guidelines,” which were formulated based on each basic policy, including our Procurement Policy, and promotes “sustainable procurement” and “green procurement,” which prioritizes procurement from suppliers who are proactively working on sustainable initiatives. We ask that our suppliers refer to these guidelines and promote further sustainable procurement activities.

Based on the “NTN Group Sustainable Procurement Guidelines,” we strive to implement supply chain due diligence by conducting sustainable procurement surveys (hereinafter, “Procurement Survey”) aimed at confirming the compliance status and actual conditions of our business partners, as well as conflict minerals surveys. We aim to improve sustainability throughout the entire supply chain by confirming human rights risks in our supply chain and working together with our business partners to address issues identified through the Procurement Surveys.
(For human rights due diligence, click here)

The Company conducts the Procurement Surveys with its business partners once a year, based on the Guidelines, with the aim of confirming the status of initiatives related to the environment, human rights, compliance, and other matters in the supply chain.

FY2025 Results

FY2025 Survey Results

In FY2025, we conducted the Procurement Survey targeting 465 business partners and received responses from 79% of them. The chart below shows the average percentage score in each category for 92 major business partners selected from among the respondents.

■FY2025 Survey: Average Percentage Scores of Major Business Partners by Category

Based on the results of the Procurement Survey, the Company identifies risks related to sustainable procurement in the supply chain and works together with its business partners to advance activities toward the realization of sustainable procurement.

Risk Identification and Response Based on Survey Results

To accurately identify and reduce risks related to sustainable procurement in the supply chain, the Company goes beyond uniform survey-based evaluations by verifying business partners’ actual circumstances, engaging in dialogue with them, and supporting their corrective actions. Based on the responses to the FY2025 survey, we followed up with selected business partners to obtain more detailed information, and no significant risks were identified. In addition, we prepared an improvement guide to promote business partners’ understanding and support their response measures, and shared it with all business partners who responded to the survey.
We will continue to conduct the Procurement Survey regularly and work on sustainability activities across the entire supply chain through dialogue and support with our business partners.

The NTN Group continues to make tireless efforts to conduct environmentally conscious business activities.
In recent years, the management of environmentally hazardous substances has become increasingly important. Accordingly, NTN has established the following as key priorities in its green procurement activities in order to reduce environmental impacts throughout the entire supply chain:

1. Reduction of environmentally hazardous substances contained in NTN products
2. Reduction of environmentally hazardous substances used in manufacturing processes
3. Introduction of production facilities and technologies capable of reducing environmentally hazardous substances

We seek the understanding of our business partners on the importance of these initiatives, their recognition that compliance with these Standards is a prerequisite for conducting business transactions with NTN, and their proactive cooperation with our Green Procurement activities.

We agreed with the principles of the “Council for the Promotion of Partnership Building for the Future” promoted by the Cabinet Office, the Ministry of Economy, Trade and Industry, and other organizations, and published our “Declaration of Partnership Building” in 2022. We will work to improve added value by promoting collaboration, coexistence and co-prosperity with our supply chain business partners and other companies seeking to create value.