Supply Chain Management

Supply Chain Management

Basic Views

In addition to quality, performance, price, and delivery conditions, the NH Foods Group considers it important to promote procurement activities that place greater emphasis on human rights, labor, the environment, and corruption prevention when procuring raw materials, packaging and materials, livestock, feed, etc.

As such, in April 2017, with the aim of promoting initiatives throughout the entire supply chain, we created the NH Foods Group CSR Procurement Policy, which summarizes our approach to procurement, and the NH Foods Group CSR Procurement Guidelines, which are based on that policy. In October 2022, the names were changed to the NH Foods Group Sustainable Procurement Policy and NH Foods Group Sustainable Procurement Guidelines, and the content of each was expanded.

The policy and guidelines incorporate concepts such as the Universal Declaration of Human Rights, the International Covenant on Human Rights, the UN Guiding Principles on Business and Human Rights, the UN Convention against Corruption, the Ten Principles across the four fields of the UN Global Compact, the ILO Core Labour Standards, the ILO Declaration on Fundamental Principles and Rights at Work, the OECD Guidelines for Multinational Enterprises, ISO 14001, and ISO 20400.

We believe that the Group can contribute to the realization of a sustainable society not only by actively promoting its initiatives, but also by working together with the members of the supply chain, and we request the understanding and cooperation of our business partners.
We will strengthen cooperation with suppliers to promote environmentally and socially responsible procurement.

Sustainable Procurement Policy

NH Foods Group Sustainable Procurement Policy

In its procurement activities, the NH Foods Group builds relationships of trust with its business partners and promotes sustainable initiatives in cooperation with them on the basis of coexistence and co-prosperity.

  1. Comply with laws and social norms and build systems for complianceWe comply with laws, regulations, and social norms. In addition, we build systems for such compliance.
  2. Ensuring the quality and safety of products and servicesWe strive to enhance product safety and quality in accordance with The NH Foods Group Quality Assurance Policy.
  3. Fair and equitable transactionsWe judge products, services, results, prices and reliability, etc. in a comprehensive manner. Also, we establish fair and equitable opportunities for entry into the market.
  4. Respect for human rightsWe respect and give serious consideration to international standards and opinions regarding human rights.
  5. Promotion of health management and occupational safety and healthWe support employees' health maintenance and promotion activities and promote the creation of a vibrant work environment.
  6. Consideration for the Global EnvironmentWe work to decrease environmental impact with parties in the supply chain in accordance with the NH Foods Group Environmental Policy to realize a sustainable society.

Created on April 1, 2017
Revised on October 1, 2022

Sustainable Procurement Guidelines

Promotion Systems

The NH Foods Ltd. Sustainability Department serves as secretariat and formulates and implements plans for sustainable procurement. We regularly exchange information with procurement personnel in each business division to spread and promote sustainable procurement throughout the Group.

In addition, the NH Foods Group Action Standards include information on sustainable procurement and convey the importance of sustainable procurement to employees involved in purchasing.

Targets

We have set the following targets for our sustainable procurement activities in terms of materiality.
・Inform critical primary suppliers * of policies and have 100% SAQ(Self-Assessment Questionnaire) implementation, disseminate policies to critical secondary suppliers and implement SAQ by FY2030

Note: Critical Suppliers:We position suppliers with large transaction amounts and suppliers who deliver materials, packaging, livestock products, feeds, etc. that cannot be substituted as “critical suppliers".

Major Initiatives

Supplier Monitoring

Certified Raw Materials

Future Initiatives

In the future, in addition to requesting cooperation on policies and guidelines and conducting interviews on the status of initiatives, we will strengthen risk management in the supply chain by conducting on-site inspections of high-risk suppliers, pre-transaction risk inspections of new suppliers, and monitoring secondary suppliers.