ESG focus
areas

3

Responsible Supply Chain

Responsible Supply Chain
Olympus aims to strengthen supply chain management (SCM) to ensure stable delivery of products andservices for patients. In our ESG strategy announced in May 2023, we have identified supply chain risk
mitigation and resilience as one of our top priority, and we strive to create and strengthen good relationships
with our suppliers through fair, just, and transparent transactions.

Supply Chain Policy
We share our “Expectations of Suppliers” and “Green Procurement
Standards” in writing with our suppliers in Japan, asking them tocomply with laws and regulations, social norms, and environmental
considerations. We conduct an annual web-based supplier survey inJapan with 30 CSR questions to raise suppliers’ awareness of issues
related to the Sustainable Development Goals (SDGs).
Our Global Procurement ESG strategy consists of threemateriality topics as part of the focus area of Responsible Supply
Chain:
1. Improve supply chain risk mitigation and resilience byimplementing a multi-tier supply chain risk monitoring solution.
2. Enhance social (human rights) commitment in SCM: This includes
creating and publishing a Global Supplier Code of Conduct as well
as monitoring ESG risk in our supply chain.
3. Environmental Supplier Management: We will begin creating abaseline of CO2 emissions from our suppliers, as well as asking
suppliers to set science-based targets for our Science Based
Targets initiative (SBTi)*1 certification.

Supplier Survey and Improvement Activities
Once a year Olympus conducts a web-based survey of our major
suppliers around the world with whom we have ongoing business inJapan. The survey covers 123 questions, of which 24 are related tosustainability management information, sustainability initiatives, andbusiness continuity plans (BCPs). In fiscal year 2023 we added sixquestions relating to climate change, including actual greenhousegas emissions. In fiscal year 2023 the survey was conducted on 667
companies*2, including overseas suppliers. Responses were received
from about 86% of companies. If the survey results require additional
follow-up, an on-site audit is conducted with required corrective
actions to adhere to our “Expectations of Suppliers.”

Expectations of Suppliers
1. Compliance with Laws, Regulations, and Social Norms
2. Health and Safety
3.	Fair and Impartial Trade
4.	Ensuring Quality and Safety, Delivery, Fair Pricing, andStable Supply
5. Environmental Considerations
6.	Ensuring Information Security andthe Appropriate Protection of Information
7.	Promoting Social Contributions
8.	Promoting CSR Activities Internally and Among Suppliers*1 Information on Science Based Targets is available at https://sciencebasedtargets.org*2	This number is smaller than the 774 companies in fiscal year 2022 due to the removal ofbusiness partners related to the transfer of the Scientific Solutions BusinessDetails

Procurement: https://www.olympus-global.com/csr/social/procurement/
Expectations of Suppliers: https://www.olympus-global.com/csr/procurement/supply.html
Human Rights: https://www.olympus-global.com/csr/social/human-rights/

Key Evaluation Items in Supplier Survey for
Initiatives with Suppliers
Evaluation

Criteria Details

Management
information

Corporate information, financial condition

Sustainability

Compliance with laws, regulations, and social norms
Protection of human rights (child labor, forced labor,
inappropriate low-wage labor)
Protection of worker rights (labor standards, occupationalsafety and health)Protection of the environment (CO2 emissions, waste
discharge, water usage, environment-related chemicalsubstances)
Personal and confidential information protection,
intellectual property protection

BCP

Business continuity strategy, manufacturing site
information, contact information during emergencies anddisasters, confirmation of supply chain, confirmation ofemployee safety

Environmentand quality

Acquisition of ISO 14001, ISO 9001, and ISO 13485
Procurement and process management (5Ms [materials,methods, measurement, machinery, manpower], change
information, noncompliant treatments)

Delivery/Cost

Production plans, progress and distribution management,
cost reduction activities

SystemComputer security

Human Rights Initiatives
Olympus engages in global activities in the area of human rights due
diligence in compliance with the UN Guiding Principles (UNGPs) on
Business and Human Rights. In fiscal year 2022, Olympus
implemented a human rights impact assessment that covered theentire Olympus Group and established a system to understand themanagement status of human rights issues within the Olympus
Group in fiscal year 2023. This system aimed to confirm themanagement status and efforts at each company and implement
continuous improvements with regards to the 12 items including
freely chosen employment that includes the elimination of forcedlabor, child labor, working hours, human treatment, nondiscrimination and non-harassment, freedom of association, and theutilization of emerging technologies such as AI. In fiscal year 2024,
Olympus plans to investigate the current state of affairs at eachcompany in the Olympus Group according to this procedure.
Furthermore, in accordance with its Human Rights Policy, in fiscal
year 2023, Olympus deployed e-learning globally to introduce
Olympus’ responsibility to respect human rights in its supply chain
and to give an overview of the laws and systems in each country.
Those who enrolled in the e-learning program learned about
examples of human rights violations that could occur in the Olympus
Group and at suppliers. In Japan, 8,998 employees enrolled in thise-learning program (enrollment rate: 94%). Olympus will continue tocarry out regular educational activities to improve the awareness of
its employees regarding human rights.

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