Supply Chain

Sustainable procurement considering environmental and social aspects

Basic stance

Working in collaboration with its business partners, the Nidec Group promotes CSR activities throughout the entire supply chain. To ensure that our business partners fulfill their corporate social responsibility, we require them to comply with the Nidec Group CSR Charter in basic business contracts with them. Additionally, in the Nidec Group Supply Chain CSR Promotion Guidebook and Company-wide Basic Policy on Human Rights, we describe specific standards based on the pillars of the CSR Charter. Also we share them with our business partners.
　We set sustainable procurement considering environmental and social aspects as a new materiality theme. Through the procurement activities considering social aspects, such as prohibiting child labor and forced labor and eliminating long working hours, and environmental aspects, such as energy consumption by suppliers, bio diversity, and utilization of waste/resources, we ask business partners for their further cooperation.

Nidec supplier CSR self-assessment

Starting from 2018, we have conducted the Nidec supplier CSR self-assessment to understand the status of CSR procurement, and have our supply chain partners report on the status of their compliance with the Nidec Group Supply-Chain CSR Promotion Guidebook. The areas of the survey are based on Chapters 1 through 6 of the Guidebook, to assess the status of individual business partners based on a total of 111 items.

CSR audit of business partners

Since FY2010, the Nidec Group has been auditing our main supply chain partners^* on-site. During FY2021, the Nidec Group audited 132 of its supply chain partners onsite in Asia and other regions.

* Refers to suppliers and other business partners who frequently go in and out of the premises of our group companies, including dealers in indirect materials (cardboard, adhesives, grease, packing tape, pallets, etc.), equipment manufacturers, dormitory operators (food manufacturers, security guards, etc.), and temporary staffing agencies

Holding CSR seminars at major sites

As Nidec promotes CSR activities throughout its supply chain, it is important that our procurement personnel first understand Nidec’s CSR policies. Since FY2018, Nidec Corporation and Nidec Group companies in Japan have conducted CSR seminars for purchasing personnel based on the Nidec Group Supply-Chain CSR Promotion Guidebook. In FY2021, as with FY2020, to prevent COVID-19 infections, lectures were held in the forms of e-learning and remote classes, attended by 250 people.

Nidec Electronics (Thailand) Co., Ltd. held a session to explain the Responsible Business Alliance (RBA)^* to ensure that all of its business partners understand Nidec’s CSR. Nidec Electronics (Thailand) also held presentation meetings on CSR procurement for its major business partners, and audits them on-site based on the results of advance survey sheets. Since FY2013, our CSR audit standard has been based on the RBA, and companies to be audited, mainly new supply chain partners, are selected based on the standard. We selected 37 companies for the audit in the first year. In FY2021, we launched activities with the target of requesting 53 of our supply chain partners to comply with the CSR audit standard. Nidec Electronics (Thailand) Co., Ltd. thus supports and instructs its supply chain partners to enable them to engage in CSR activities based on their circumstances.

* RBA (Responsible Business Alliance) is an organization established for the purpose of solving social, environmental and ethical issues in the supply chains of the electronics industry.