Realization of Sustainable Procurement through the Dissemination of the JFR Principles of Action for Suppliers

Formulation and sharing of the JFR Principles of Action for Suppliers

The Group identified the “management of the entire supply chain” as one of its materiality issues in 2018 and formulated the JFR Principles of Action and the JFR Principles of Action for Suppliers in 2019.
We sent the formulated JFR Principles of Action for Suppliers to suppliers and asked them to support our view and rules on social responsibilities.
Furthermore, Daimaru Matsuzakaya Department Stores held meetings to explain the JFR Principles of Action for Suppliers and 530 suppliers attended them.

To conduct an assessment

In fiscal year 2021, we will start an assessment of the suppliers that have supported the Principles of Action for Suppliers to see the state of their understanding of and compliance with the shared Principles of Action for Suppliers.
We will conduct such assessment continuously on a biennial basis by sending suppliers questionnaire concerning the major content of the JFR Principles of Action for Suppliers including environment and human rights and asking them to answer. Particularly, concerning human rights, we ask many questions in accordance with the Human Rights Policy.
If there are some problems in the result of the assessment, we will make improvements through the dialogue with relevant suppliers as necessary. By repeating the improvement process through assessment and dialogue, the Group will disseminate the Principles of Action for Suppliers, thereby identifying risks in the supply chain and creating a sustainable supply chain with suppliers.

Flow of the dissemination of the JFR Principles of Action for Suppliers

Supplier assessment conducted in FY2021

An assessment was conducted for the first time in fiscal year 2021 to identify the environmental and social supply chain risks facing the Group. As part of this effort, we sent questionnaires to relevant suppliers and analyzed their responses in order to confirm the status of their compliance with our shared Principles of Action. Since then, the assessment has been conducted on a biennial basis.

Increasing the number of value co-creation partners

• Supply Chain Policy (Principles of Action for Suppliers)

• Creation of a Sustainable Supply Chain

• Reduction of Scope 3 GHG Emissions in Collaboration with Suppliers

• Promotion of Human Rights

• Initiatives to Grow Together with Business Partners