Supply Chain CSR
Supply Chain CSR Vision
Epson aspires to be an indispensable company, one that seeks to build mutually beneficial relationships with all its business partners, including suppliers, by asking them to uphold the highest standards of integrity and ethics while, at the same time, respecting their autonomy and independence.
Epson, which has mapped each of its supply chain initiatives to one or more of the Sustainable Development Goals (SDGs) of the United Nations, will help to achieve the SDGs by taking action throughout the supply chain.
These supply chain ethics requirements are based on the Responsible Business Alliance Code of Conduct. The Responsible Business Alliance (RBA) is a supply chain alliance in the electronics industry. As a regular member, Epson supports the RBA's mission and code of conduct, which consists of internationally recognized, ambitious CSR requirements covering human rights, health and safety, the environment, and ethics. The RBA Code of Conduct is regularly reviewed and revised to establish common requirements that the electronics industry should work toward together. As an RBA member, Epson is working to strengthen its supply chain CSR and is requesting suppliers to do so, as well.
Sustainable Procurement Policy
Maintaining mutually beneficial relationships with suppliers is one of the keys to attaining the goals outlined in Epson's Management Philosophy. This is why Epson's Principles of Corporate Behavior states that Epson seeks to maintain mutually beneficial relationships with its suppliers, sales channels, collaborators, and other business partners, whom Epson asks to live up to the highest standards of ethical conduct while respecting their autonomy and independence.
In addition to good partnerships with suppliers, Epson's Basic Procurement Policy requires adherence to high ethical standards and strict compliance in all supply chain operations. Further, it states that we will strive to reduce the environmental impacts of our procurement activities and always seek stable and reasonable QCD (quality, cost and delivery) from suppliers.
The Epson Group Supplier Guidelines includes a Code of Conduct pertaining to labor, health, safety, environment, ethics, and management systems. This Code of Conduct is based on the Responsible Business Alliance (RBA) Code of Conduct. Epson uses the Epson Group Procurement Guidelines to inform all suppliers about our requirements and to request their adherence to them.
Supply Chain CSR Strategy
Epson has strategically established priority items for medium- and long-term objectives for supply chain CSR to realize the Epson Group Management Philosophy and Principles of Corporate Behavior. We have set two major actions: actions to ensure worker's rights and safety and actions to realize a sustainable society. Our efforts will help to achieve the targets of the 17 SDGs by 2030.
The Epson Group's global supply chain is managed to ensure sustainability and the responsible sourcing of minerals.
The Sustainable Procurement Committee is made up of personnel from all of Epson's divisions and manufacturing companies, with the department that supervises sustainable procurement at Seiko Epson providing administrative oversight. The committee discusses targets and action plans to address supply chain issues. After they are approved by the chief officer of supply chain management (SCM), the targets and action plans are communicated throughout the Epson Group. The chief officer of SCM monitors the progress of action plans. And we regularly report to the Sustainability Strategy Council to review by management.
Mid-term Target (KGI) and KPI
Epson has set mid-term objectives and major action items for each year.
Mid-term objectives (achieve by FY2025)
Supply chain CSR: Ensure that all major suppliers are ranked low risk in terms of CSR.
Responsible mineral sourcing: Make products conflict-mineral-free*1 and disclose product information.
*1 Use 3TG only from RMAP smelters recognized by the RMI
FY2020 Major Action Items, Plans, and Results
|1||Ask major suppliers to complete a CSR self-assessment questionnaire (SAQ) to check compliance
1) Major suppliers provided with feedback on CSR SAQ results
2) High-risk suppliers that completed their corrective action plans
KPI: 100% (No high-risk suppliers)
2)100% (Direct materials suppliers)
|2||Customers that responded to CSR survey requests (including conflict free mineral survey requests)
|3||Smelters certified by the RMI's Responsible Mineral Assurance Process per the conflict mineral survey
FY2021 Major Action Items
|Major Action Items, KPI|
|1||Strengthening CSR SAQ (self-assessment questionnaire) for major suppliers
1) Major suppliers provided with feedback on CSR SAQ results: KPI 100%
2) Corrective action taken for critical items: KPI 100% improved
|2||Strengthening conflict mineral survey
1) Elimination of non-CF certified smelters by performing due diligence
2)Collecting survey answers: KPI 100% collection
|3||Ensure engagement with suppliers
1) Supplier CSR communication: KPI 100% on major production sites
2) Acquire agreement to the Epson Supplier Guidelines: KPI Major suppliers 100%