Together with Our Business Partners
(Fair Operating Practices)

At the Nippon Soda Group, we have formulated the Nisso Soda Group Code of Conduct, specifying matters to be observed to ensure sound corporate activity, while we also ensure strict compliance with relevant laws and regulations. Further, as a member of international society, in addition to engaging in fair and impartial business transactions, we are aiming to create an environment- and society-friendly sustainable supply chain based on constructive dialogue with our business partners.

Initiatives in Purchasing

Purchasing policy

• Thoroughly comply with purchasing laws and ordinances (Antimonopoly Law, Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors, etc.). Participate in internal and external training regarding law and ordinance expertise. Select suppliers who comply with laws, regulations, and social norms in each country and region.
• Promote environment- and society-friendly raw material procurement.^*1,2
• Purchase raw materials that contribute to stable production and enhanced cost competitiveness.
• Secure multiple material procurement sources and undertake appropriate inventory management to ensure a robust Business Continuity Plan (BCP).

• *1 Environment friendly
  Includes the promotion of climate change countermeasures, including the reduction of GHG emissions; the prevention of environmental pollution; the protection of global and regional environments, including the maintenance of biodiversity and ecosystems; the promotion of resource- and energy-saving measures; and the reduction of waste.
• *2 Society friendly
  Includes the elimination of child labor, forced labor, excessive labor, and discrimination; respect for freedom of association and the right to collective bargaining; the protection of workers’ rights, including matters related to equal opportunity, minimum wage, and living wage; and the guarantee of safe, hygienic workplace environments.

The Nippon Soda Group Code of Conduct

At the Nippon Soda Group, we ensure thorough compliance with the Nippon Soda Group Code of Conduct, which outlines the following standards for transactions with suppliers.

• When selecting a supplier from among multiple vendors, we determine the most appropriate business partner by comparing and assessing quality, price, delivery period, technical capability, supply stability, and other criteria in a fair and just manner.
• When outsourcing manufacture to an external business, we only conclude contracts and complete transactions following thorough understanding of the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors.

Cooperative purchasing activities

By gathering information from trading companies, who serve as our purchasing intermediaries, and carrying out local audits with the quality management departments of each plant, we conduct purchasing activities while confirming the safety and environmental and social impact of the handling of our chemicals from the point of manufacture to the point of delivery.
Through the exchange of diverse information, we aim to build mutually beneficial relationships with our business partners, and while furthering understanding and gaining further cooperation with regards to our purchasing policy, we aim to undertake sustainable procurement.

Raw material quality management

• We regularly visit suppliers of pharmaceutical raw materials to conduct GMP^* audits.

• * When manufacturing pharmaceuticals, not only is it important to check conformity with predetermined quality standards, the manufacturing process itself must be appropriately managed to ensure constant manufacture of outstanding, high-quality products. Good Manufacturing Practices (standards for pharmaceutical manufacturing and quality management) are a set of conditions for the manufacture of high-quality pharmaceuticals.

Environment- and society-friendly supply chain

• From a sustainability standpoint, when procuring industrial salt and pulp, two of our main natural raw materials, we monitor our suppliers (document-based and on-site monitoring) in order to confirm the following.
1. ①Compliance with laws, ordinances, and social norms, and fair transactions
1. a.Compliance with relevant laws, ordinances, and social norms
2. b.Compliance with in-house rules related to business entertainment and gifts, and prevention of bribery and other forms of corruption
3. c.Appropriate management of private/personal information related to transactions
2. ②Environmental considerations
1. a.Conservation of ecosystems and the global/regional environment
2. b.Prevention of environmental pollution
3. c.Promotion of efforts to reduce GHG emissions and address climate change
4. d.Promotion of resource- and energy-saving measures
5. e.Reduction of waste
3. ③Social considerations
1. a.Efforts to coexist with local communities and contribute to society
4. ④Considerations for human and worker rights protection
1. a.Maintenance of a safe, healthy workplace environment
2. b.Elimination of child/forced labor and discrimination
3. c.Thorough respect for workers’ rights through appropriate management of wages and working hours, etc.
5. ⑤Raw material traceability
1. a.Compliance with laws pertaining to harvesting and tree felling
2. b.Absence of serious social conflict surrounding raw materials
• The fulfillment rate* in the FY 2022 monitoring of our suppliers was 97.9%.

• * Fulfillment rate is calculated based on the average values for each question from each company, based on a five-point scale related to the status of initiatives in place. Five (sometimes four) is the highest and equates to 100%, and one is the lowest and equates to 20% (sometimes 25%).

Dialogue with Business Partners

Improve awareness on safety and disaster prevention together with our partner companies

We provide education on the safe use of agricultural machinery to companies to whom daily field maintenance is consigned at various agricultural fields under the jurisdiction of the Odawara Research Center.
In cooperation with our partner companies, we aim to achieve zero accidents by involving all relevant people. We implement various measures to raise awareness on safety and disaster prevention among employees of partner companies who work within our facilities, such as the development of a list that clarifies who has qualifications for operating agricultural machinery and equipment and the management of operations.

Educating transportation companies on logistics safety

The Nippon Soda Group regularly provides education targeting transportation companies. Our programs not only provide training to prevent accidents caused by our workers and during transport, but also information on past complaints regarding logistics. We share such information to ensure the safe delivery of our products to our customers.

Logistics safety education (education on product handling)
(Chiba Distribution Center, Sanwa Soko Co., Ltd., November 5, 2021)

Declaration of Partnership Building

As we aim to create a sustainable supply chain, at Nippon Soda we are engaging in constructive dialogue with our business partners to promote environment- and society-friendly business activities.
Moreover, we are working with our supply chain business partners and value creation companies to ensure “co-existence and co-prosperity,” and as part of the Declaration of Partnership Building, announcing our key measures to build new partnerships.

• *Declaration of Partnership Building
  https://ssl4.eir-parts.net/doc/4041/ir_material3/192602/00.pdf(Japanese only)