Hirata’s Sustainability

Supply Chain Management
To remain a company that is trusted and chosen by all stakeholders, including its customers and suppliers,
the Group fulfills its corporate social responsibility (CSR) in its procurement activities. We will also share theProcurement Basic Policy with our suppliers and work on responsible procurement activities and continuous
improvement in accordance with the Hirata CSR Procurement Guidelines.

Procurement
Basic Policy(1) In compliance with laws and ethics(2) In a fair and just manner as an equal partner with our suppliers(3) Giving due consideration to human rights concerns and the reduction of environmental
impact in the selection of suppliers and procured items

Initiatives for Sustainable Procurement Activities 
Under the lead of its director, the Procurement Division plays a central role in promoting sustainable procurement activities incooperation with sustainability promotion activities. The Sustainability Promotion Committee oversees initiatives by reporting,discussing, and making decisions on directions and issues.
• Holds supplier meetings (Company performance reports, explanation of market trend policies, explanation of trends andpolicies of the Procurement Division, and supplier awards)• Conducts CSR procurement self-assessments and sends out consent forms• Exchanges information and provides improvement support through CSR procurement audits• Builds a cooperative framework for BCP

CSR Procurement Self-Assessments 
In procuring products, materials, and raw materials, we arepromoting CSR (corporate social responsibility) throughout
the supply chain and making improvements in accordancewith conventional requirement items of quality, performance, price, and delivery time and items added from theperspective of the environment, working environment,
human rights, etc.
In fiscal 2021, we conducted CSR procurement selfassessments for the top 70% of the transaction valuesuppliers (the top 100 domestic transaction value suppliers).
In fiscal 2022, we completed responses for the top 80%of the transaction value suppliers (the top 120 domestictransaction value suppliers), as a result of the surveys
conducted for suppliers that have not yet implemented theProcurement Basic Policy
Requests to Suppliers
Hirata CSR Procurement Guidelines

previous surveys. In addition, we have received consent tothe Hirata CSR Procurement Guidelines along with requests
for cooperation in self-assessments (100% recovery rate forself-assessment and consent forms).
Furthermore, in fiscal 2022, we worked to formulate a
CSR procurement audit sheet and conducted trial auditsof some suppliers. Although no major problems have been
confirmed at this time, we will make improvements asnecessary and strive to maintain sustainable procurement
activities, such as expanding the scope of audits.

Supplier Engagement
In June 2023, we held a supplier meeting to talk about the Group’s
consolidated results for fiscal 2022, the forecast for fiscal 2023,
trends and policies of business divisions, basic procurement policies,and priority measures.
In fiscal 2023, we established and shared two new items that wewould like our suppliers to actively work on in the fields of society
and the environment. We will promote this with the goal of having
all Tier 1 suppliers, which account for the top 80% of the transaction value suppliers, focus on these items.
The Company will continue to engage in sustainable procurement activities while engaging in dialogue with suppliers about its­business activities and sustainability.

Business Continuity Plan As a result of conducting an assessment of the business
continuity plan (BCP) through the CSR procurement selfassessment, it was found that there were issues in thestatus of initiatives compared to other items.
In recent years, in order to minimize the impact on ourproduction activities in the event of serious natural disasters,

https://www.hirata.co.jp/files/uploads/esg_20230301_05.pdf

Results of CSR Procurement Self-Assessments

such as frequent earthquakes and floods, we have been
promptly confirming the damage situation with our suppliers. In FY2022, we investigated the impact of four natural
disasters on production activities among our suppliers.

Establishment of Supplier Whistleblowing Contact Point (Supplier Helpline) In response to the Revised Whistleblower Protection Act
and in accordance with the strengthening of governance,
the Company set up a supplier helpline in 2022 and posted
the point of contact on its website. Based on the information provided, the helpline secretariat (the Company’s

Reporting methodF or more information on the Hirata CSR Procurement Guidelines, please
visit the website below.

Matters to be promoted in the social and­environmental fields
1. E stablishment of social and environmental policies• Labor and human rights policies• Health and safety policies• Environmental policies• Ethics policies
2. Understanding of the CO2 emissions of suppliers

Those subject to reporting

Compliance Department) will conduct an internal investigation and take corrective and preventive measures. Strictly
protecting the confidentiality of reports, the Company will
not provide disadvantageous treatment to whistleblowers
as a result.

We have set up a dedicated point of contact on our website.  

https://www.hirata.co.jp/en/contact/

Suppliers (of goods, software, utilities, equipment, etc., necessary for our production activities)

Post-report handling

Promptly conducting a factual investigation of the reported case, necessary measures, such as an order to cease anddesist, correction or recurrence prevention, to be taken if non-compliance proven

Number of reports

1(Points)(FY2022)
Labor
3.6

Policy well-known and understoodamong suppliers

Code of conduct

4.0
3.5
3.0

3.6

Health and safety

2.5

Responsible Procurement of Minerals 

3.5

2.0
1.5
1.0

Implementation of CSR
procurement self-assessments
Evaluation and feedback

0.5

BCP

3.2

2.9

Implementation of CSR
procurement audits
3.1

Realization of sustainableprocurement

58

Hirata Integrated Report 2023

Management system

3.2

Environment

We are aware of and actively cooperate with international
efforts to investigate and monitor the use of conflictminerals,* which have been implicated in human rights
abuses and labor problems, and minerals that pose a riskof child labor and environmental destruction. In line withthe update of the RMI (Responsible Minerals Initiative)

information, we regularly conduct surveys of each supplierusing survey templates (CMRT, EMRT, etc.).
* Conflict minerals: The term refers to minerals, among them tantalum, tungsten, tin,gold, and cobalt, produced in the Democratic Republic of the Congo and neighboring
countries, which are regarded as a source of funding for armed groups that are committing serious human rights violations.

EthicsHirata Integrated Report 202359