Supplier Assessment Program
For new suppliers, we conduct a self-assessment from the perspective of sustainability (human rights, occupational health and safety, environment, and business ethics) using either Sedex (Supplier Ethical Data Exchange), EcoVadis, or our original Self-Assessment Questionnaire (SAQ). We start business with new suppliers after conducting supplier assessments, confirming that they are non-high-risk and then agree to the Shiseido Group Supplier Code of Conduct.
For existing suppliers, we continuously confirm compliance with the Shiseido Group Supplier Code of Conduct using the above assessments. We categorize suppliers into three groups according to the degree of risk: low-risk, medium-risk, and high-risk. If a supplier is categorized as high-risk, we conduct third-party audits, which include employee interviews and verification of required documentation. High-risk suppliers are then requested to implement corrective action plans, and in the event of critical non-conformance, we conduct further third-party audits to confirm correction status. If issues are not corrected within a set period, we consider suspension of business.
Results
We set the correction of high-risk suppliers identified in 2020 as our top global priority, and implemented corrective actions for the applicable 132 suppliers. Specifically, we provided feedback to all suppliers and requested corrective actions. For certain suppliers, we also conducted online verification of corrective status, reassessment by self-assessment, and third-party audits (two suppliers). As a result of these corrective actions, the number of high-risk suppliers decreased from 132 to 40.
In 2021, we assessed suppliers in Japan and Europe, considering the magnitude of risk and the importance of the supplier. In total, we assessed 279 Tier 1 suppliers and 5 Tier 2 strategic suppliers. As a result, 17 Tier 1 suppliers were categorized as high-risk, while no Tier 2 strategic suppliers were categorized as high-risk. In response, we provided feedback to the 17 high-risk suppliers, followed by a reassessment using self-assessment methods and third-party audits (three suppliers). This resulted in eight suppliers improving to medium-risk or low-risk.
Beginning 2022, we will conduct an assessment program based on the new procurement policy for the remaining 44 high-risk suppliers currently engaged in corrective actions.
Status of Remediation of High-Risk Suppliers
※44 companies (excluding duplicates).
2021 Supplier Assessment Results
Reporting and Consultation Center for Suppliers
Protecting human rights and complying with laws that protect people’s rights are critical to everyone. In 2013, we set up the Business Partner Hotline to deepen our understanding of human rights compliance at our suppliers; promote fair transactions; and nurture a culture of transparency. When we are made aware of a compliance violation, either by email or other documents, we deal with it appropriately and rapidly. In 2021, there were no reports of non-compliance.
CDP Supplier Engagement Rating
We have been highly praised for our efforts in managing greenhouse gas (GHG) emissions and reducing risks throughout the supply chain by CDP, an international environmental NGO. In 2021, we were selected as the Supplier Engagement Leader for coming out on top of CDP’s Supplier Engagement Rating. Going forward, in collaboration with our suppliers, we will continue to promote activities that help reduce our environmental footprint.
