Supply chain management

Conclusion of contracts and agreements that include sustainability clauses

We are in the process of concluding contracts and letters of intent that include sustainability clauses so that procurement can be conducted in accordance with our Sustainable Procurement Policy and Standards.

Checking the status of sustainability initiatives

We ask not only our own company but also all of our suppliers to comply with the "Sustainable Procurement Policy and Standards," and from fiscal 2022, we will use the "CSR Procurement Self-Assessment Questionnaire" (GCNJ Common SAQ)*1 created by the Global Compact Network Japan to conduct surveys of business partners who handle raw materials and other materials to confirm the status of their sustainability initiatives. In fiscal 2023, we expanded the scope of the survey and conducted additional surveys. We will continue to conduct surveys on a regular basis and strive to build a responsible supply chain.

• Survey target: Business partners that handle raw materials, materials, etc.
• Survey target company coverage rate: Approximately 80% of raw material/materials procurement amount

(2022-2023 cumulative results)
*For suppliers who have resubmitted the questionnaire, the most recent results will be used to tally the data.

Conducting on-site surveys

We understand that it is important to visit and hold dialogues with raw material producing areas where there may be issues with human rights, the environment, etc., and have begun initiatives. In fiscal 2023, we conducted a survey to grasp the actual situation of the palm oil industry in Malaysia.

• Respect for human rights

In 2019, J-OIL MILLS joined Sedex as an A/B member*, which provides a common platform that connects companies and suppliers on a global scale.
Sedex is the world's largest platform for managing and sharing supply chain data, aiming to enable ethical and responsible business practices in global supply chains. Customers and suppliers use a common platform to share information, identify problems with suppliers, understand the status of initiatives to resolve those issues, and work to expand sustainable business practices. When you join Sedex, you are required to complete a worldwide supplier questionnaire (SAQ: Self Assessment Questionnaire) in four areas: "Labor Standards," "Health and Safety," "Environment," and "Business Ethics." Going forward, we will effectively utilize Sedex's program to understand and improve supply chain sustainability issues from a global perspective.

*A/B members: Qualified as both A members with buyer functions and B members who respond to SAQs as suppliers.

In order to promote the construction of a sustainable logistics network, our company will implement the following guidelines in December 2023 based on the "Guidelines for efforts by shippers and logistics operators to optimize logistics and improve productivity" published by the government. We have formulated a "voluntary action plan" and submitted it to the government.

Main contents of our “voluntary action plan”

• A truck reservation system will be introduced in order to understand the time required for cargo waiting and cargo handling.
• Request suppliers to improve order quantities to improve loading efficiency.
• We will work to ensure lead time from ordering to delivery and to create an appropriate operation schedule.

• As compensation for cargo handling work, etc., ancillary work will be discussed with the logistics operator and specified in the contract, etc.
• Aiming to rationalize contracts, we will strive to introduce surcharges (fuel/electricity), etc.

• If a logistics operator determines that it is necessary to cancel or interrupt operations during abnormal weather, etc., that judgment will be respected.

*Related pre-release: Formulation of "Voluntary Action Plan" for streamlining logistics and improving productivity - Promoting the creation of a sustainable logistics network - | Press Room | JOYL -J-OIL MILLS (j-oil.com) (Japanese text only)

Our company is "Building a Partnership for the Future" whose members include the Chairman of the Japan Business Federation, the Chairman of the Japan Chamber of Commerce and Industry, the Chairman of the Japan Federation of Labor Unions, and the relevant ministers (Cabinet Office, Ministry of Economy, Trade and Industry, Ministry of Health, Labor and Welfare, Ministry of Agriculture, Forestry and Fisheries, and Ministry of Land, Infrastructure, Transport and Tourism). We agree with the purpose of the "Partnership Building Declaration" established by the "Partnership Building Promotion Council," and have published our "Partnership Building Declaration."
The "Partnership Building Declaration" is a declaration by the company representative that the company will build new partnerships by promoting collaboration and coexistence and co-prosperity with each business partner in the supply chain and businesses aiming to create value. It is something to do. In our partnership building declaration, we have specified the following individual items: We will continue to strengthen our partnerships with our business partners and work to increase added value throughout the supply chain.

• We created a "Logistics Handbook" for employees, worked to promote understanding of the logistics crisis among employees and thoroughly adhere to internal rules for ordering and delivery, visualize supply and demand management, strengthen cooperation between logistics and sales departments, and improve business operations. We will proceed with the rectification of
• initiatives to standardize the exterior display of products and improve the work efficiency of drivers and warehouse workers when sorting and inspecting products.

"Partnership Building Declaration" Portal Site (Japanese text only)