Basic Principles on Procurement

The JACCS Group upholds the management philosophy of “Contributing to the realization of ‘a future with dreams’ and ‘a prosperous society,’” and works, in collaboration with all stakeholders, to engage in business activities that contribute to the development of society.

In recent years, social issues related to corporate activities—such as environmental challenges including climate change, compliance with laws and regulations, ethics, fair business practices, human rights, and information management—have become increasingly complex. Efforts across the entire supply chain and value chain are becoming ever more important. The Group’s business activities are also supported through relationships with business partners, including suppliers, merchants, and alliance partners, who support the Group by providing goods and services and undertaking operational work.

With this understanding, and based on the concepts set forth in the Group’s “Human Rights Policy,” “Environmental Basic Policy,” and other policies, as well as internationally recognized norms, the Group has established this “Sustainable Procurement Policy.” This Policy applies to the Company and its domestic group companies, and sets out the basic principles for the Group to promote sustainable procurement together with suppliers and other business partners.

The following items are matters the Group considers important in promoting sustainable procurement. We ask our suppliers to understand these items and, in accordance with the content of transactions and the characteristics of their businesses, to implement initiatives reflecting these principles.

We also expect business partners other than suppliers to understand the purpose of this Policy and to promote initiatives that respect this Policy in their respective business activities.

Going forward, through dialogue with suppliers and other business partners, as well as surveys, evaluations, and encouragement toward improvement, we will enhance the effectiveness of initiatives based on this Policy.

In doing so, we will contribute to providing products and services that all customers can use with confidence, and to building a sustainable supply chain and realizing a sustainable society.

Comply with all applicable laws and regulations in every country or region where business is conducted, respect internationally recognized norms, and conduct business activities with integrity.

In transactions, conduct business in a fair and sincere manner based on multifaceted conditions such as quality, price, and delivery time. Do not tolerate any corrupt practices, including corruption, bribery, money laundering, and insider trading, and ensure fair and highly transparent business operations. In addition, sever all ties with antisocial forces.

Respect international standards related to human rights, and do not tolerate any human rights violations, including discrimination, harassment, forced labor, and child labor. Also respect freedom of association and the right to collective bargaining, and strive to respond appropriately to respect the human rights of employees and all people involved in business activities.

Give due consideration to labor-related issues such as wages, working hours, other labor practices, employee health, and workplace safety and health management. Based on appropriate employment contracts, develop environments in which all employees can work in good health and safety through both systems and facilities.

From the perspective of customer protection, establish an appropriate quality management system and strive to provide safe and high-quality products and services, while providing accurate and easy-to-understand information. In addition, when using technologies such as AI, strive for appropriate management, taking into account the purpose of use and its impact, so that customers are not treated in a manner that is disadvantageous or unfair.

Establish an information security framework and take measures against cyberattacks and other threats to information systems. In particular, implement appropriate management to prevent incidents originating in the supply chain, including outsourced contractors.

Establish a framework to appropriately manage customers’ and related parties’ personal information and confidential information, and prevent unauthorized or inappropriate use, disclosure, leakage, and similar events. In addition, when using external services, pay careful attention to the handling of personal and confidential information and implement appropriate management, including establishing and reviewing internal rules.

Comply with environmental laws and regulations, recognize the environmental impact of business activities, and strive to reduce environmental burdens through pollution prevention, climate change mitigation, effective use of resources, and consideration for natural capital.

Recognize the impact of business activities on the safety, health, and living environment of local residents, strive to prevent and reduce negative impacts, and contribute to creating vibrant communities through dialogue with local communities.