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Responsible Procurement

Shiseido wants to develop together with society while promoting respect for human rights and ensuring environmental protection in all its business activities, including the procurement of raw materials. By complying with laws and having a high sense of ethics, we are working on the following to achieve sustainable procurement and corporate social responsibility.

Ethical Supply Chain Policies/Standards

●Shiseido Group Supplier Code of Conduct

Shiseido Group Supplier Code of Conduct (Issued in Jun 2019)[ PDF : 876KB ]

●Shiseido Group Procurement Policy

“Shiseido Group Procurement Policy”[ PDF : 136KB ]

●Shiseido Group Sustainable Raw Materials Procurement Guidelines

“Shiseido Group Sustainable Raw Materials Procurement Guidelines”[ PDF : 131KB ]

●Revision history

June 2018 We formulated the Shiseido Group Sustainable Raw Materials Procurement Guidelines for palm oil and set targets up to 2020. In line with the guidelines, we will promote sustainable palm oil procurement.
June 2018 We formulated the Shiseido Group Procurement Policy in order to realize an ethical supply chain.
April 2018 We revised the Shiseido Group Supplier Code of Conduct to ensure that it meets the current social needs. It requires business partners to comply with laws and regulations, prevent corruption, respect human rights, provide a safe and healthy working environment, and protect the environment.
June 2019 A provision for the proper management of working hours, days-off, and leave of employees was included in the Shiseido Group Supplier Code of Conduct.

Supplier monitoring/collaboration

Since having developed the Shiseido Group Supplier Code of Conduct in 2006, we have been implementing the Shiseido Supplier Code of Conduct Compliance Survey (Shiseido's proprietary SAQ*), which confirms the compliance status of suppliers. In 2018, of the suppliers who have trading records with our Purchasing Department in our Global Headquarters, we received responses from 197 suppliers and provided feedback of the analysis and evaluation results of the survey to each company. To suppliers who did not complete the survey and provided answers that we need to confirm, we asked them to complete the survey again and sent inquiries about the responses. In addition, in August 2017, we joined Sedex (platform to share supplier ethical data). In 2018, we discussed the use of Sedex and the sharing of their ethical information with our primary suppliers (compliance, environmental, human rights, and occupational safety and health) from 45 sites in 31 companies. Furthermore, regarding suppliers who do not complete Shiseido’s unique SAQ or participate in Sedex, we share the evaluation results of other accreditation organizations, the acquisition status of international standards certifications, and we are promoting supplier monitoring from multiple perspectives.

  • * SAQ: Self-Assessment Questionnaire
Type Descriptions 2015 2016 2018 2019
Target
Shiseido Group Supplier Code of Conduct Compliance Survey Number of suppliers which completed the survey 214 224 197
Response rate (%) 83 90 88 90
Sedex Number of suppliers who set access rights 31
Evaluation/certification other than Sedex Number of suppliers which have obtained evaluations/certification other than Sedex 4
Total Number of monitored suppliers 214 224 229*
Monitoring rate (%) 83 90 89 90
  • * Excludes 3 duplicate suppliers

Reporting and consultation center for suppliers

Since 2013, we have been hearing opinions from/consulting with our business partners using the Business Partner Hotline a center which receives reporting/consultations from suppliers in writing and by email (No reporting was made in FY2018.).

Sustainable procurement of raw materials (palm oil/mica)

With regard to raw materials (palm oil/mica), which our company considers to carry high risk for human rights, we will strengthen our measures by participating in international initiatives.

●Procurement of sustainable palm oil

Activities

2018
  • In order to support the sustainable production of palm oil, we purchased certificates (credits) equivalent to 100% palm oil and palm-derived materials (achieved targets up to 2020).

  • We had a dialogue with palm oil producers in Indonesia

  • We obtained RSPO supply chain certification for the Shiseido Kuki factory and also for Shiseido Vietnam Inc (As of June 2019, 7 have factories obtained the certification.).

2017
  • Acquired RSPO supply chain certification for the Shiseido Kakegawa factory.

2013
2010
  • *1 RSPO Supply Chain Certification: Certification to ensure logistically reliable delivery of RSPO-certified raw materials.
  • *2 Book & Claim system: A system of trading the production of palm oil and palm kernel oil produced on RSPO-certified farms as certified credits. As in Energy Green, purchasing a credit is considered equivalent to purchasing RSPO-certified oil.

Changes in Palm Oil Consumption


2016 2017 2018
Total (t) of palm oil, palm kernel oil consumption amount 6,788 8,024 9,750
Book & Claim system (t) 50 75 9,750
Book & Claim System Coverage Ratio (%) 1 1 100

●Procurement of sustainable mica

Activities

2018
  • We attended the RMI Annual General Meeting held in New Delhi, India. (Oct. 30-Nov. 1)

  • We had dialogues with local mica mining companies.

  • We consulted with NGOs and RMI members to improve the education system of local children.

  • We discussed and formulated the activities to be addressed in 2019. Please check the progress on the RMI website

2017
  • We gathered information on suppliers of mica used by Shiseido Company, Limited.

  • We attended the RMI Kickoff Meeting held in New Delhi, India.

Risk assessment of raw materials (social risk assessment when introducing new raw materials)

Dialogues with stakeholders

In order to ensure sustainable and responsible procurement and respect for human rights in the course of our business activities, Shiseido works with various stakeholders to discuss environmental and social issues, to share information, and to create resolutions.

●Dialogue with NGOs/NPOs and small palm oil farmers

●Dialogue with human rights experts

In September 2018, we talked with human rights experts (Danish Institute for Human Rights, Institute for Human Rights and Business, and Verisk Maplecroft) and received advice on how to proceed with human rights due diligence in our company. We are implementing this knowledge in our efforts.

Exchange of opinions with palm farmers in Indonesia

Photo 1: Exchange of opinions with palm farmers in Indonesia

Dialogue with human rights experts, such as the Danish Institute for Human Rights

Photo 2: Dialogue with human rights experts,
such as the Danish Institute for Human Rights

2018 performance


Name (sponsored/co-sponsored) Venue Stakeholders Main theme
September 2018 2018 International Conference regarding Business and Human Rights, Individual dialogue (Caux Round Table, Japan) Japan Human rights experts (Danish Institute for Human Rights, Institute for Human Rights and Business, Verisk Maplecroft) (Photo 2) Exchange of views on how to proceed with our human rights due diligence
September 2018 Global Stakeholder Engagement Program (Caux Round Table, Japan) Japan Human rights experts, NGOs, companies participating in stakeholder engagement programs in Thailand, Malaysia, Indonesia, and Japan Business and human rights considerations and points to note in Southeast Asia
August 2018 Stakeholder Engagement Program (Caux Round Table, Japan) Indonesia Fieldwork: small-scale palm oil farmers, companies, NGOs in Indonesia (Photo 1) Human rights issues in the palm oil industry in Indonesia
Workshop: Companies, NGOs
May-July 2018 Stakeholder Engagement Program (Nippon CSR Consortium) Japan Companies, NGOs, NPOs Understanding and practice of the United Nations Guiding Principles on Business and Human Rights in companies and identification of key human rights issues by industry

2017 performance


Name (sponsored/co-sponsored) Venue Stakeholders Main theme
September 2017 2017 International Conference regarding Business and Human Rights, Individual dialogue (Caux Round Table, Japan) Japan Human rights experts (Danish Institute for Human Rights, Institute for Human Rights and Business, Sedex) Exchange of views on how to proceed with our human rights due diligence
September 2017 Global Stakeholder Engagement Program (Caux Round Table, Japan) Japan Human rights experts, NGOs, NPOs, companies involved in dialogue with stakeholders in Thailand, Malaysia, and Myanmar Business and human rights considerations and points to note in Southeast Asia
June-July 2017 Stakeholder Engagement Program (Nippon CSR Consortium) Japan Companies, NGOs, NPOs Relationship between business activities and human rights, the importance of business activities in consideration of human rights, and identification of key human rights issues by industry
May 2017 Global Stakeholder Engagement Program (Caux Round Table, Japan)/Global Compact Network Malaysia Malaysia Palm oil small scale farmers, companies, NGOs in Malaysia Environmental and social considerations and current status of palm oil procurement in Malaysia
Malaysian government agency, companies, NGOs Consideration of human rights of immigrant workers in Malaysia

Future issues and initiative plans

We will continue to work to prevent human rights abuses throughout our business and supply chain, based on the United Nations’ Guiding Principles on Business and Human Rights.