Supply Chain Management
Sustainability Procurement Policy
DISCO promotes initiatives throughout its supply chain, including its suppliers, with the following points in mind to realize a sustainable society.
Equal Partners and Fair Business
We regard suppliers as equal business partners and conduct business fairly and in accordance with laws and regulations.
For details, please refer to DISCO's Stance on Purchasing.Environmental Conservation and Green Procurement
Procurement activities are conducted with full consideration to reducing the environmental impact and preserving the global environment.
For details, please refer to Environmental Vision and Green Procurement.Respect for Human Rights and Social Responsibility
In support of the basic principles of the Responsible Business Alliance (RBA), we shall promote initiatives related to human rights and social responsibility.
For details, please refer to the RBA Code of Conduct.
Supply Chain Initiatives
Giving Priority to Companies with a High Level of Corporate Social Responsibility
Our Code of Ethics stipulates that, “When selecting suppliers, DISCO Personnel shall not conduct business with companies who do not meet a certain standard of social responsibility.” We evaluate suppliers based on criteria such as their “consideration for the environment and human rights” and “working conditions,” so that we can select and prioritize suppliers with a high level of corporate social responsibility.
Request for Agreement with the Sustainability Procurement Policy
In order to work toward the realization of a sustainable society throughout the supply chain, we ask our suppliers for their understanding of DISCO's initiatives and their agreement to our Procurement Policy.*1
Suppliers are asked to comply with the following specific initiatives through our Agreement Form for our Sustainability Procurement Policy.
- Compliance with all applicable labor-related laws and regulations, overtime and holiday work agreements, and other required procedures
- Establishing appropriate work rules, conducting proper labor management, and instructing employees and others to properly engage in their work
- Not subjecting employees to any form of forced labor, bonded labor (including debt bondage), indentured servitude, involuntary or exploitative prison labor, slavery, human trafficking, or any other form of involuntary labor
- Not engaging in any form of labor that falls under child labor
- Not retaining, destroying, concealing, or confiscating any government-issued identification, passports, work permits, identity cards, or immigration-related documents for foreign workers, and ensuring that no fees or other charges are owed to employment agencies by such workers
We review the contents of our Sustainability Procurement Policy and the Agreement Form for our policy once a year.
In FY2024, we shared our Sustainability Procurement Policy with suppliers who account for 98.0% of our procurement amount, and obtained agreement from 85.3% of them. Furthermore, we shared our Sustainability Procurement Policy with 100% of our on-site contractors and received agreement from all of them.
If there is a serious noncompliance with the contents of the Agreement and if the noncompliance is not corrected within a reasonable period of time, DISCO may reconsider its business with the supplier.
*1: We have established the following as our tracking indicators for key sustainability issues by the end of FY2030.
At least 95% share rate for Sustainability Procurement Policy, and an agreement rate of at least 90%
Survey Using the Sustainability Procurement Questionnaire
DISCO conducts a survey of its major suppliers using the Sustainability Procurement Questionnaire to ascertain the status of suppliers' compliance with the Sustainability Procurement Policy.
Major suppliers include suppliers selected based on procurement amount and all on-site contractors, and the questions in the survey consist of five areas: labor, health and safety, environment, ethics, and management systems.
Sample Questions
| Labor: | Minimum working age is 15 years old or the minimum working age in the country, whichever is higher. |
| Health and safety: | Necessary treatment, investigation of causes, and corrective actions are provided for occupational accidents, and records of these actions are maintained. |
| Environment: | Efforts are made to reduce greenhouse gas emissions and reduction targets are in place. |
| Ethics: | Bribery, corruption, extortion, and embezzlement of any kind are not tolerated, and no improper benefits are obtained. |
| Management systems: | Requests regarding labor, health and safety, environment, and ethics are communicated to suppliers and confirmed. |
The responses from each supplier are reviewed and used to identify risks throughout the supply chain.
Supplier Audits and Training
DISCO conducts supplier audits (including on-site audits conducted by our personnel or third parties) on a regular basis for the purpose of deepening mutual understanding and partnership on the importance of sustainable procurement and our approach and activities regarding corporate social responsibility.
The audit in FY2024 focused on the existence of policies and rules, the appropriateness of their contents, and their operational status.
We also strive to deepen our understanding of human rights and social responsibility initiatives through regular two-way communication with our on-site contractors.
Continuous Improvement
If DISCO determines that there is a risk of noncompliance as a result of a survey or audit conducted in accordance with the RBA Code of Conduct, DISCO will discuss improvement measures with the supplier, develop an improvement plan, and continue to work with them until implementation is completed. As an example of improvement measures,the following Employee Satisfaction Standards developed and published at DISCO's suggestion may be used as a reference.
JSA-S1001 Human Resource Management – Employee Satisfaction – Guidelines for codes of conduct for organizations
Responsible Mineral Procurement
DISCO recognizes that infringement of human rights, including child labor and forced labor, are a global problem. Therefore, it is our policy to not use minerals such as tantalum, tin, tungsten, gold, cobalt, and mica, which may contribute to such infringements of human rights. With reference to the OECD*2 Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, we also conduct surveys using CMRT/EMRT*3 and other methods.
After confirming the countries of origin and contents of the minerals cited above and identifying the smelters in our supply chain, we found no items that used any minerals of concern from the items we procured in FY2024.
*2 OECD: Organisation for Economic Co-operation and Development
*3 CMRT: Conflict Minerals Reporting Template
EMRT: Extended Minerals Reporting Template
Survey formats for conflict minerals provided by the RMI (Responsible Minerals Initiative)
