Supply Chain

Sustainable procurement considering environmental and social aspects

Basic stance

Working in collaboration with its suppliers, the Nidec Group promotes CSR activities throughout the entire supply chain. As part of such efforts, the Nidec Group Supply Chain CSR Promotion Guidebook and the Nidec Group’s Basic Policy on Human Rights, which provide more specific standards established in line with the pillars of the CSR Charter, are rolled out to all suppliers. To ensure that suppliers also fulfill their social responsibilities, we require our suppliers to comply with the “Nidec Group Supply Chain CSR Promotion Guidebook” in our basic purchasing agreement.
　We will continue to engage in procurement activities that take into consideration both social aspects, such as prohibition of child and forced labor and reduction of long working hours, and environmental aspects, such as energy consumption, biodiversity, and waste/resource use at suppliers. We ask our suppliers for their continued cooperation.

Please click the URL below for the “Nidec Group Supply Chain CSR Promotion Guidebook.”
https://www.nidec.com/-/media/www-nidec-com/corporate/procurement/green/pdf/Supply%20Chain%20CSR%20Guidebook%20EN.pdf

Initiatives in FY2022

In cooperation with the Human Resources Department, we made the “Nidec Group’s Basic Policy on Human Rights” known to major suppliers.
　We also participated in a subcommittee of the United Nations Global Compact Japan to keep abreast of industry trends regarding human rights due diligence. We actively reflect industry trends in our internal activities. For example, we have improved the content of the Nidec supplier CSR self-assessment to be conducted in FY2023, based on the information obtained through the subcommittee meetings.

Toward the future

While continuing to disseminate the “Nidec Group’s Basic Policy on Human Rights” and keep abreast of industry trends regarding human rights due diligence, we will review the content of the Nidec supplier CSR self-assessment. From FY2023, we will address insufficient identification of human rights risks, which is an issue about the current Nidec supplier CSR self-assessment.
　We will also identify potential human rights risks mainly in the upstream supply chain, based on the results of the Nidec supplier CSR self-assessments and interviews. For the identified human rights risks, we will determine the priority level of our efforts, based on the probability of their occurrence and the severity of their impact when they occur.

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 implementation of the Nidec Group Supply Chain CSR Promotion Guidebook and the Nidec Group’s Basic Policy on Human Rights. The survey is designed to assess the status of each supplier’s CSR activities, based on a total of 111 items in Chapters 1 through 6 of the Nidec Group Supply Chain CSR Promotion Guidebook. Regardless of whether the evaluation is high or low, feedback, etc. is provided to all suppliers to encourage further improvement.

CSR audit of suppliers

Since FY2010, the Nidec Group has been auditing its major suppliers^* on-site. In FY2022, we conducted on-site audits on 122 suppliers, mainly in Asia.

* Refers to suppliers and other business partners who frequently go onto and off 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

Nidec Electronics (Thailand) holds a session to explain the Responsible Business Alliance (RBA)^* to ensure that all of its suppliers understand Nidec’s CSR. Nidec Electronics (Thailand) also holds presentation meetings on CSR procurement for its major suppliers 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 we select targets for CSR audits mainly from new suppliers. In FY2022, we implemented activities with the target of requesting 27 of our suppliers to comply with CSR audit standards.

* 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.

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. With the aim of conducting human rights due diligence on major suppliers by 2025, in FY2022 we reviewed the training content and discussed future implementation plans.