SocialBasic Supply Chain Sustainability Policy

Basic Supply Chain Sustainability Policy

Basic Supply Chain Sustainability Policy (Revised January 2019)

  1. The Marubeni Group, not being satisfied with simply strengthening its own sustainability initiatives, supports strengthening sustainability throughout its supply chain with the objective of building an environmentally friendly, healthy and sustainable society.
  2. Having set out the Supply Chain Sustainability Guidelines below, the Marubeni Group asks for the understanding and cooperation of its business partners in observing the Guidelines, to promote, together with its business partners, highly effective sustainability initiatives. Further, when calling on its business partners, the Marubeni Group will communicate the Guidelines so that they are fully aware of the Guidelines and will assist business partners’ capacity building by making recommendations, requests or providing guidance as necessary and by sharing examples of good practices.
  3. Supply Chain Sustainability Guidelines
    1. 1)Observance of Laws:
      • Observe the laws of the countries where business is conducted and laws relating to business transactions.
    2. 2)Respect for Human Rights:
      • Respect human rights without discrimination, harassment of any kind, abuse or other inhumane treatment.
      • No child labor or forced labor.
      • Proper management of employees’ work hours, breaks and holidays and prohibition of excessive overtime work.
      • Payment of the legally mandated minimum wage and endeavoring to pay at least a living wage. No inappropriate wage abatement.
      • Respect for employees’ right to unionize for the purpose of labor-management negotiations and right to collective bargaining.
    3. 3)Conservation of the Environment:
      • Recognize that climate change issues are important and respond appropriately.
      • Protect the natural environment.
      • Reduce environmental negative impact, prevent pollution.
    4. 4)Fair Transactions:
      • Conduct fair transactions and do not inhibit free competition.
      • Prevent corruption; offer no bribes or illegal contributions.
    5. 5)Safety and Health:
      • Ensure safe and healthy workplaces and maintain a good working environment.
    6. 6)Quality Control:
      • Maintain the quality and safety of products and services.
    7. 7)Information Disclosure:
      • Timely and appropriate disclosure of information
  4. As part of this Policy, the Marubeni Group has set out the following procedures for dealing with vendors that do not meet labor standards.
    1. (i) When it comes to light that a vendor has failed to meet labor standards relating to (1) Observance of Laws, (2) Respect for Human Rights or (5) Safety and Health, we will as necessary, ask the vendor to:
      • Ascertain the facts, and
      • If the facts are true, prepare a report on the background of the issue and improvement measures.
      Depending on circumstances, we may also inspect the vendor.
    2. (ii) If we determine that improvement measures are insufficient, we will request that further measures be taken.
    3. (iii) If, despite implementing steps (i) and (ii) above, the situation does not improve, we will examine whether to continue our relationship with the vendor.

The term of “ human rights” in the Basic Supply Chain Sustainability Policy as used herein shall include the fundamental human rights provided for by the Constitution, the Labor Standards Law and the Universal Declaration of Human Rights and the UN Guiding Principles on Business and Human Rights.
In addition, the term shall include human rights with regard to equal employment, prohibition of forced labor and child labor, freedom of association and protection of collective bargaining rights, as prescribed by the International Labor Standards of International Labor Organization (ILO).

Conservation of the environment in Basic Supply Chain Sustainability Policy includes energy consumption, climate change, water consumption, impact on biodiversity, environmental issues, pollution, waste, and resource use.

Marubeni aims to have all its long-term business partners*understand and cooperate with the Basic Supply Chain Sustainability Policy, and we have been working to disseminate the policy to them.
Specifically, we are building a structure to deal with any revision to the Policy, by providing our existing and potential long-term business partners with a detailed explanation of each revision via a number of means, including briefing sessions, personal communications, and written communications to ensure our business partners have a full understanding of and are able to comply with our most updated Policy.

"Long-term business partners" include Group companies, suppliers, service providers, contractors, third-party manufacturers, JV partners and outsourcing partners.

Measures to Counteract Noncompliance with Labor Standards under the Basic Supply Chain Sustainability Policy

Marubeni has formulated measures and procedures to counteract noncompliance with the labor standards set forth in the Basic Supply Chain Sustainability Policy, and effect improvements. The measures and procedures are as described below. There were no business partners that did not comply with the supply chain labor standards for the year ended March 31, 2019.

Measures against Noncompliance with Labor Standards under the Basic Supply Chain Sustainability Policy[13KB]

Supply Chain Management Education/Training

To implement supply chain management, Marubeni had executives and employees participants in e-learning programs in order to obtain a better understanding of risks to human rights in the supply chain and other important issues.
In the year ended March 31, 2019, a total of about 3,500 personnel had participated in the training programs. The target of participation rate is 80%. Marubeni will continue to update the content every year and conduct the education and training programs.

Number of Participants in Sustainability e-learning
FYE 3/2017 FYE 3/2018 FYE 3/2019

Capacity Building of the Suppliers

To ensure that our suppliers are informed of the Basic Supply Chain Sustainability Policy and deepen their understanding on environmental, social issues and occupational health and safety, where necessary, advice, requests, or instructions are given and good examples are shared by the Marubeni’s sales personnel when visiting the suppliers, in our capacity building efforts with our suppliers.

Initiatives for Environmentally Friendly Procurement of Raw Materials for Textiles

Marubeni has partnered with an Indian textile company to supply organic cotton yarn to domestic and foreign weaving, knitting, and sewing factories.
This textile company selects farms and ginning (the post-harvest process for separating the cotton seeds from the fibers) factories with GOTS certification, and purchases raw cotton from them. Because the company itself also has GOTS certification, the organic cotton Marubeni handles is 100% traceable.

Performance data
Organic cotton handling volume (tonnes) 1,150
Proportion to overall cotton traded 3.7%
Traceability 100%
GOTS certification 100%