Mitsubishi Chemical Corporation

As a member of the Mitsubishi Chemical Group, we conduct procurement activities based on “the Mitsubishi Chemical Group Charter of Corporate BehaviorNew tab” for aiming to achieve KAITEKI, an original concept of the Mitsubishi Chemical Group. We promote and reinforce procurement activities to fulfill our corporate social responsibilities not only in our group but also an entire supply chain with our business partners.

Basic Procurement Policy

1. Fairness, Equitability and Transparency

We conduct procurement activities in a fair, equitable and transparent manner. We are aware of the importance of accountability for our procurement activities and disclose relevant information as appropriate.

We select suppliers based on comprehensive evaluations using appropriate criteria in the areas of cost competitiveness, technical skill and corporate stance (compliance with laws and social norms, environmental consideration, respect for human rights, etc.). We maintain a posture of openness in procurement to all companies in Japan and abroad.

2. Partnerships and Mutually Beneficial Relationships

Based on the recognition that all our suppliers are our partners in business, we strive to enhance mutual understanding and build relationships of mutual trust while striving to carry out procurement activities that advance mutual business development.

3. Compliance with Laws and Regulations

In procurement activities, we comply with social norms and the letter and spirit of applicable laws and regulations.

4. CSR Procurement

Constantly keeping the spirit of corporate social responsibility in mind, we conduct sustainable procurement activities with due consideration given to resource protection, environmental conservation, safety, human rights and other such factors.

Toward Promotion of CSR Procurement (Sustainable Procurement)

We believe that to establish mutual trust-based partnership and to act on entire supply chain bases are very important, and furthermore, it is essential to have suppliers' cooperation on procurement activities.

image : CSR Procurement at Mitsubishi Chemical

Request for Suppliers

Developing Cooperative Business Practices with Suppliers and Business Partner(Guidebook)

1. Awareness and Responsibility

Based on the fundamental understanding that the foundation of corporate activities should be built on trust of the society, be aware of one's corporate social responsibility and seek to build a better relationship with the human race, the society, and the global environment through the business of each party.

2. Accountability and Transparency

Recognize the importance of accountability in corporate activities, preserve transparency in such activities, disclose information appropriately, and always maintain a stance of openness, both internally and externally.

3. Legal Compliance and Fairness, Equitability, and Integrity

Always comply with laws and international standards, and ensure fair, equitable and sincere treatment of stakeholders and employees. This attitude shall also apply to dealings among employees.

4. Valuing Stakeholders

Respect and communicate closely with all stakeholders including customers, suppliers, shareholders, business partners, government agencies, local communities, and employees, and consider the outcomes of such communication in corporate activities.

5. Respect for Human Rights

Respect the dignity and rights of all people, and shall not discriminate against people unfairly based on any reason whatsoever.

6. Employment and Labor

Prevent engage in any form of forced, compulsory, or child labor. Managements at all levels shall respect human diversity and create working environments where employees can exercise their abilities to the utmost in safe and healthy settings, in order to make optimal use of human resources. Managements shall build sound relations with its employees through close dialogue, and shall respect employees' rights, including freedom of association and the right to collective bargaining.

7. Environment and Safety

Strive to reduce environmental impact and protect the environment and ecosystems in its operations, in addition to supplying environmentally friendly products and services. Recognizing that the health and safety of its employees and communities in which the company do business form the foundation for the very existence of the company and that it has a corporate social responsibility to assure the health and safety of others, it shall continue to ensure safe business activities.

8. Fair Business Practices

Conduct business fairly and sincerely, adhering to ethical principles and refraining from unfair trade practices and any form of bribery or corruption, to contribute to sound social and economic development through fair competition in the market.
Handle any approaches from anti-social forces and groups (such as organized criminals or organizations subject to government-mandated business restrictions) in a determined manner and refuse to have any business relationship with them.

9. Customer Satisfaction

Constantly strive to satisfy the company's customers by keeping the promises made in contracts with them, doing its utmost to ensure the safety and quality of the products and services it supply, and engaging in dialogue and R&D.

10. Information Management

In the course of the company's corporate activities, maintain appropriate records and make reports as required by law and regulation. The company shall manage information carefully to prevent leakage of confidential data relating to customers, business partners, or its own business.

11. Science and Technology

Recognize the importance of the company's own and others' intellectual property rights and respect such rights.

12. Community Involvement

Contribute broadly to society through our businesses. In addition, the company shall respond to the desires and expectations of local communities by enhancing our understanding of their cultures and customs and acting as a good corporate citizen.

13. Sharing Standards

Recognize that the suppliers and other firms with which you do business are your important partners, and willingly disclose and share business philosophies and codes of conduct with each other to deepen mutual understanding.

Human rights due diligence in the supply chain


Supply Chain will oversee human rights due diligence activities in the supply chain and extend these activities to Mitsubishi Chemical (MCC) and its group companies.

Human rights due diligence process in the supply chain

We are in the process of establishing a human rights due diligence process in line with what is detailed in the United Nations “Guiding Principles on Business and Human Rights”.

image : Commitment under the “Mitsubishi Chemical Corporation and its Group Companies Human Rights Policy

Sharing our norms through CSR procurement guideline (stakeholder engagement in the supply chain)

As a tool for promoting CSR procurement (sustainable procurement) based on our procurement policy, we have created the CSR Procurement Guideline(PDF:394KB)Download link, which summarize the corporate activity concepts of MCC and its group companies and our requests to our suppliers.
We have summarized our norm in below to share with our suppliers, and for the better understanding, we also prepared "Guidebook"(PDF:451KB)Download link to explain the details of our norm. The Guidebook could be downloaded from the link attached on the bottom of this page.

Identification and assessment of adverse human rights impacts

We confirm the status of initiatives with suppliers and through the CSR questionnaire*1. We analyze and evaluate the results of CSR questionnaire responses (basic information and initiatives on ESG-related issues) and classify suppliers into four ranks: A, B, C, and D *2. We also send a feedback letter to all suppliers who respond to the questionnaire. For new suppliers, we ask them to respond to the questionnaire before we start doing business with them.

*1 MCC and its Group Companies CSR Questionnaire

Item Description
Basic Information Company profile, location, industry, employee composition, certification status, etc.
Initiatives for ESG-related issues Status of initiatives for each ESG-related issue listed in the Mitsubishi Chemical Group Charter of Corporate Behavior
(Composed of 104 questions in total, including Legal Compliance, Respecting human rights, Employment and labor, Environment and safety, etc.)

*2 Rank Classification

Rank Definition
A Suppliers who have made sufficient efforts and are considered unlikely to commit acts adversely affecting human rights
B Suppliers who have made certain efforts but needs further continuous improvements
C Suppliers who have made efforts, but are considered to have some concerns
D Suppliers considered whose efforts are not enough and whose status we would like to check

Prevention and mitigation of acts adversely impacting human rights

Based on the results of the CSR questionnaire, we hold CSR procurement Training sessions for suppliers in rank B,C and D to share our policy and request their cooperation in our activities. For suppliers in rank C and D, we confirm the details of their specific initiatives through individual interviews. If we find further investigation is necessary, we request on-site visits (audits) to suppliers.
In the on-site visit (audit), we provide feedback to suppliers on the results, including good points, and ask them to submit plans for improvement. We believe that these efforts will foster a healthy relationship between suppliers and MCC as business partners and help to build a relationship that enables mutual growth and improvement.

Monitoring activity effectiveness

For suppliers who have submitted corrective action plans in on-site visits (audits), we regularly track the status of these plans to ascertain the effectiveness of measures and encourage improvements. We also conduct a CSR questionnaire once every three years.

Communication and information disclosure

We will disclose the status of this initiative through the "Mitsubishi Chemical Group Sustainability Report" published annually and through this website.

Access to Remedy

We will continue to consider the establishment and introduction of an effective grievance mechanism to appropriately address acts that negatively impact human rights in our supply chain as it relates to our business activities.

Initiatives and Results

Initiatives Fiscal 2021 Results Fiscal2022 Results
Major Suppliers*1 evaluated based on CSR questionnaire in the current fiscal year

*1Suppliers that account for 90% of the purchased value in each procurement department.

186 suppliers 301 suppliers
Implementation of follow-up actions*2 for target suppliers

*2・CSR procurement training session (Target rank: B, C, D)
・Individual Interview (Target rank: C, D)

31 suppliers 104 suppliers
Implementation of on-site visit (audit) for target suppliers*3

*3 Suppliers whose efforts were deemed insufficient through individual interviews

Not applicable suppliers Not applicable suppliers
Implementation of human rights due diligence training for internal procurement departments. Done Done

Responsible Mineral Procurement

In conflict and high-risk areas of the world, profits from mineral mining and trade are used to finance armed groups and rebel groups. The use of minerals from such areas can contribute to conflict, human rights abuses, and environmental destruction. Recognizing that these mineral issues are important social issues, we have formulated the the "MCC and its Group Companies Responsible Mineral Procurement Policy"(PDF:221KB)Download linkbased on our basic policy of not procuring minerals that are clearly involved in conflicts or human rights abuses in conflict zones or high-risk areas. Based on this policy, we will work to promote sustainable and responsible mineral procurement throughout our supply chain.

Internal training programs for employees

MCC believes that human resource development is important for the promotion of purchasing and procurement that take into account CSR-related considerations.
Procurement and Logistics Division hold the KAITEKI Promotion Conference for their employees twice a year to teach about and explain CSR.
We provide training on the tenets of the Basic Procurement Policy (namely, Fairness, Equitability and Transparency; Partnerships and Mutually Beneficial Relationships; Compliance with Laws and Regulations; and CSR Procurement) for new recruits or transferees assigned to the Purchasing Department.
In addition, we encourage junior employees to acquire Certified Procurement Professional (CPP)*1 certification as a way of improving individuals’ skills on an ongoing and systematic basis. As social concern regarding CSR procurement grows, we will continue to focus efforts on human resource development in this area.

Certified Procurement Professional (CPP): A privately operated system of certification by the All Japan Federation of Management Organizations. The certification is granted to individuals involved in corporate purchasing and procurement who possess sufficient specialized knowledge in the field of purchasing and procurement.

Training programs run in fiscal 2022

Program Description
Training for new recruits, transferred employees Target: New recruits and newly transferred employees at the Head Office procurement division
・basic training on the range of procurement policy (as needed)
General Meeting Target: Personnel in procurement and logistics divisions
・Overview of compliance, information sharing on other CSR matters (twice a year)

Declaration of Partnership Building

MCC published a Declaration of Partnership Building in April 2021 in agreement with the objectives of the Council on Promoting Partnership Building for Cultivating the Future. This council comprises the Chairman of the Keidanren, Chairman of the Japan Chamber of Commerce and Industry and President of the Japanese Trade Union Confederation as well as related government ministers (from the Cabinet Office, Ministry of Economy, Trade and Industry, Ministry of Health, Labor and Welfare, Ministry of Agriculture, Forestry and Fisheries and Ministry of Land, Infrastructure, Transport and Tourism). By working with business partners in our supply chain and value-creating businesses to foster mutually beneficial relationships, we aim to build new partnerships.

Compliance with the Act against Delay in Payment of Subcontract Proceeds, Etc. (the “Subcontract Act”)

To maintain sound relationships with its business partners, MCC has clarified a system for ensuring compliance with the Subcontract Act and established internal rules, including the Subcontract Act Compliance Regulations, which indicate the specific scope of application and compliance requirements of the Subcontract Act. To ensure that transactions are conducted pursuant to such internal rules, MCC periodically implements internal training and audits of related departments.

End of Notes

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