Supply chain management

In fiscal 2020, we established a new "Human Rights Policy" and revised our "Sustainable Procurement Policy and Standards." In the revision, we have strengthened the descriptions of human rights and the environment, with the aim of managing not only our own company but also the entire supply chain. We have also established a " Palm oil procurement policy" in order to proactively respond to various issues related to palm oil, which are of high interest, and a " soybean Procurement Policy" to ensure that we procure soybean that are environmentally and human rights friendly. In FY2023, we will conduct a self-assessment questionnaire (SAQ) for raw material and material suppliers with the aim of understanding human rights and environmental risks throughout the supply chain and disseminating, understanding, and disseminating our Sustainable Procurement Policy and Standards. doing. We will continue to clarify issues and risks our company faces, resolve issues throughout the supply chain, and proactively disclose the status of our activities.

Our company conducts quality audits with the aim of creating better quality products together with our business partners. In fiscal 2022, we audited 18 domestic and overseas manufacturing subcontractor Plant. In an audit, we first understand the quality assurance system and manufacturing process, and then check the status of the quality assurance system and quality control, as well as the response status to quality problems that have occurred in the past.
In addition to confirming documents, we also conduct on-site or remote inspections of manufacturing sites, and hold discussions with our manufacturing subcontractors, which leads to mutual quality improvement measures.
In addition, we conducted 45 audits of business partners that handle raw materials and materials.
We have established a "Sustainable Procurement Policy and Standards," and we ask not only our own company but also all of our suppliers to comply with it.From fiscal 2022, we will use the "CSR Procurement Self-Assessment Questionnaire" (GCNJ Common SAQ)* to We conduct surveys of business partners that handle materials, etc., to confirm the status of their sustainability initiatives.

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

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)