Logistic Safety & Procurement

We recognize that in the storage, handling, and transportation of chemical products, it is essential to ensure safety and security, not to mention compliance with the relevant laws and regulations.
In particular, to minimize the impact on human health and the environment in the event of a chemical distribution accident, we strive to prevent accidents in advance, and conduct emergency response training for logistics companies. In those trainings, we share the results of chemical safety assessments with those involved in distribution so that they can respond promptly in the event of an accident such as a leak during transportation. In addition, we prepare yellow cards and require logistics companies to carry them during transportation so that they can provide information on emergency measures in the event of an accident.

SDGs

Logistics Safety Assurance

Our products and raw materials consist of many substances including high-pressure gases and hazardous or poisonous chemicals. Accidents during products transportation, such as explosions, fire, and leakage, may seriously affect the community safety and environment.
For us, logistics safety is as sensitive a matter as safety in production. Product logistics is carried out by logistics contractors, whose cooperation is indispensable for safety in transportation.
Thus, we have organized the Logistics Safety and Environment Council jointly with our logistics contractors to ensure logistics safety and compliance with relevant laws and regulations, in our effort to prevent occurrences of adverse events such as accidents, disasters, environmental pollutions or health problems.

Drills and Safety Training to Enhance Our Preparedness

In order to respond speedily and adequately to emergencies, we periodically conduct drills, jointly with logistics companies, for emergency calls and for preventing disasters from escalating by assuming a leakage of hazardous materials or fire during transportation.
Safety training for supervisors and operators of logistics companies are also conducted to provide knowledge on properties and for safe handling of hazardous and toxic materials, in an effort to prevent accidents.

Basic Policies on Sustainable Procurement

We have the following basic policies regarding the procurement of raw materials and services, based on which we will grow and prosper sustainably together with our business partners, contributing to the realization of a sustainable society at large.

We promote fair and equitable procurement.
- We provide equitable trading opportunities to all of our business partners on the basis of fair and free competition.
- Under the “Declaration of Voluntary Activities for White Logistics Movement” (*1) and the “Declaration of Partnership Building” (*2), we build cooperative relationships with our business partners, such as raw material manufacturers, business consignees, and transportation contractors, through sound and bona fide trading activities, thereby aiming to grow and prosper together.
  - The White Logistics Movement is a sustainable logistics campaign led jointly by Japan’s three government authorities, i.e. Ministry of Land, Infrastructure, Transport and Tourism, Ministry of Economy, Trade and Industry, and Ministry of Agriculture, Forestry and Fisheries. This initiative aims to improve productivity in truck transportation, create greater logistical efficiency, and realize a more comfortable working environment. The Declaration of Voluntary Activities is an announcement by a company or other entity to support the campaign, detailing its voluntarily, independent activities.
  - “Declaration of Partnership Building” is an initiative promoted by Japan’s Ministry of Economy, Trade, and Industry under which companies, regardless of sizes, declare their intention to build a new partnership with business partners across their entire supply chain by promoting collaboration with the business partners and seeking for their "co-existence and co-prosperity.”
We conduct procurement on the fundamental premise of respect for human rights, observance of laws and regulations and compliance with corporate ethics standards.
- We do not procure raw materials or services from geographical areas or other sources that might involve human right violations, such as mining of so-called conflict minerals.
- We construct and maintain an internal system capable of ensuring employees’ legal and ethical compliance and proactively provide employees with relevant programs of education and training.
- We take thorough measures to prevent the leakage of confidential information received from business partners.
We do not receive any personal gains from others in connection with procurement transactions.
- We never receive personal benefits in the form of entertainment, gifts, gratuities or others when procuring raw materials or services.
We fulfill our corporate social responsibilities jointly with our business partners toward realizing a sustainable society.
- Among the key issues constituting corporate foundations that support the continuity of our business is “Respect for Human Rights.” As an initiative to this end, we perform human rights due diligence across our supply chain, which includes identifying human rights risks, preventing or reducing human right violations, evaluating effectiveness of relevant measures taken, and disclosing information on the initiatives in place.
We attach importance to the following matters when selecting our business partners.
- In selecting a company as our business partner to procure from, we expend every effort to make a fair judgment by considering the following factors, in addition to "quality," "price," "stability," "durability," "technological superiority," and "after-sales service" with respect to the specific raw materials and services to purchase.
  - The company has an established internal system dedicated to occupational safety and health management whereby constant efforts are made to promote disaster prevention & safety management and perform risk management.
  - The company has an internal system in place to ensure employees’ observance of laws and regulations and their compliance with corporate ethics standards.
  - The company is strict in respecting human rights and prohibiting discrimination, forced labor and child labor.
  - The raw materials and services we may procure from the company are not related in any manner to human right violations, environmental destruction, corruption, or political conflicts.
  - The company is engaged in work to eliminate adverse impacts of its business activities on the natural environment or is sincere in conducting business in an environmentally friendly manner.
  - The company agrees to collaborate with us in promoting initiatives to achieve carbon neutrality.
  - The company has no connection at all with antisocial forces.
  - The company agrees with us on all of the foregoing basic policies on sustainable procurement.