Our Supply Chain

Enhancing Global Collaboration

Business with New Suppliers

We have an entry form on our website for open dialogue regarding new proposals and business dealings. In addition to SQDC assessments at the start of new business dealings, we also check the status of the other party’s management activities based on their level of support for our sustainability guidelines and other factors, to manage risks starting from our first transactions. At the same time, together with the signing of contracts and memorandums of understanding, we explain the various guidelines that Toyoda Gosei has developed and seek their understanding.

New Supplier Assessment

We have established and are implementing internal rules for selecting new suppliers when we start doing business with them.

In addition to examining a potential supplier’s financial conditions and other factors, we also check the status of their quality management certification, such as ISO9001 and IATF16949, and investigate sustainability issues to determine whether or not to initiate business with them.

Responsible Procurement of Materials

With the globalization of business, supply chains are becoming increasingly global and diversified. However, places where workers’ rights are not taken into consideration still exist in the world, including forced labor and labor in poor conditions.

As one example of this, Toyoda Gosei recognizes the problem of conflict minerals mined under poor labor conditions, and this is an important issue in our supply chain.

Toyoda Gosei conducts a conflict minerals survey once a year with the cooperation of all relevant suppliers. Survey forms are submitted by suppliers targeted for surveys each year, and no serious matters related to conflict materials have been seen in the responses of the suppliers surveyed.

As the market changes and the targeted minerals increase, we will regularly review the risk targets and consider how best to respond as a company.

In the Supplier Sustainability Guidelines (version 2), suppliers are required to conduct responsible resource and raw material procurement.

We will continue to work with our suppliers to avoid the use of minerals of concern throughout our supply chain.

Environmental Risk Assessments

● Environmentally hazardous substances

To ensure compliance with environmental regulations, Toyoda Gosei works with suppliers to investigate the chemical substances contained in the products they deliver to us.

● New suppliers

As part of our environmental risk assessment of new suppliers, we check whether they have obtained ISO14001 or third-party certification before starting to do business with them. In cases when certification has not been obtained, we check for compliance with Toyoda Gosei’s own guidelines. If there are items that are not in compliance, we request corrective action and confirm the results.

Anti-bribery Initiatives

The Toyoda Gosei Group has established the Global Anti-Bribery Guidelines based on the Toyoda Gosei Group Charter of Corporate Behavior, and the entire Toyoda Gosei Group endeavors to prevent bribery, accounting irregularities and other corrupt practices. We also demand that all suppliers doing business with Toyoda Gosei not engage in bribery in their relations with government or administrative officials, and not give or receive gifts of entertainment or money to or from third parties for the purpose of obtaining or maintaining unfair advantages for the Toyoda Gosei Group.

Implementing Carbon Neutrality Initiatives

To achieve the carbon neutrality goals in our 2030 Business Plan, we recognize the importance of reducing Scope 3 emissions, which account for 70% of our CO₂ emissions. In collaboration with 140 key suppliers of product components, equipment, and molds, we are actively engaging in initiatives to understand their current states and challenges while maintaining close communication. Specifically, to help each supplier formulate reduction themes, we share our Energy Saving Casebook, host study sessions at our Energy Saving Dojo, and lend out various measuring instruments. We are also supporting suppliers in developing roadmaps to achieve medium- to long-term goals, including a 27% reduction by FY2030 and net zero by FY2050.

As part of these efforts, we hold the Carbon Neutral Initiative Conference twice a year, where group discussions among suppliers facilitate information sharing and problem-solving. From FY2024, we have begun globally expanding Japan’s initiatives, and we will continue working toward decarbonization across the entire supply chain.

Enhancing Our Partnerships with Suppliers

Every April, we hold procurement policy briefings where we explain our management philosophy, the business environment and company policy to about 250 of our major suppliers in Japan. After sharing our initiatives, challenges, and targets related to SQDC, compliance, and sustainability, we hold regular discussions to confirm results and make improvements through anticipated value roundtables.

In addition, starting in FY2019, we take December of each year as an opportunity to express our gratitude and respect to our suppliers and to listen to their honest opinions with humility. We aim to build better relationships with our suppliers by presenting them with letters of appreciation to express our gratitude for their daily efforts.

We also hold procurement liaison meetings every month, where we introduce case studies on initiatives such as fire prevention, disaster preparedness, compliance, and cybersecurity. In addition, we conduct seminars on carbon neutrality and other social issues.

In FY2020, we established Management Troubleshooting Consultations for suppliers and other business operators. We receive candid inquiries from them on various management issues, including corporate management, finance, human resources, and legal matters. This is done in small groups, where we try to give advice on effective solutions.

These support consultations have exceeded 200 sessions, gradually fostering natural connections among suppliers. By sharing challenges, a positive cycle of mutual learning and collaboration has emerged.

• Procurement policy briefing

Supplier Evaluation System

Toyoda Gosei has established a supplier evaluation system and presents awards to suppliers who have performed exceptionally with regard to quality, price, delivery, technology, and the environment.

The company also seeks to strengthen foundations in tandem with the supply chain. One example this is the presentation of certificates of appreciation to suppliers for their ongoing efforts to improve production activities.

Support for Suppliers So That We Can Grow Together

Supplier Training

Companies in the sustainability field face a rapidly changing environment, and we believe it is important for the entire supply chain to understand current trends and take appropriate actions. This is why we conduct training for our major suppliers.

Briefings on topics such as overall sustainability, the environment, and human rights, as well as carbon neutrality and enhanced cybersecurity, are held as appropriate to ensure that our major suppliers understand the importance of these initiatives throughout the supply chain.

Monitoring of Supplier Information

We request suppliers with whom we have ongoing transactions to submit a survey sheet covering management information at least once a year, and we strive to quickly resolve risks and solve problems by visiting and interviewing suppliers regarding major changes.

In addition, based on annual evaluation results, we conduct on-site audits once a year at suppliers that meet our selection criteria in areas such as quality and safety. These audits are aimed at driving improvements.

Participation in Relevant Associations and Initiatives

We participate in industry associations such as the Japan Auto Parts Industries Association (JAPIA) and the Japan Rubber Manufacturers Association (JRMA). Our company president serves as an officer (director) of JAPIA.

Through our activities in these industry associations, we seek to achieve sustainable growth together with our suppliers, such as through the Declaration of Partnership Building promoted by the Ministry of Economy, Trade and Industry.

We are also participating in the revision of the JAPIA BCP Guidelines by the general affairs committee of JAPIA for not only earthquakes but also wind and water damage and pandemics. In this and other ways we are contributing to the formulation of BCPs by suppliers in the auto parts industry.

Ensuring Fair Transactions

In our Declaration of Partnership Building, we pledge to engage in discussions with suppliers regarding the appropriate pricing of labor and rising energy costs.

We proactively reach out to suppliers, working closely with them through repeated consultations to address and resolve challenges.