Supply Chain CSR

Vision

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 cites "realizing responsible supply chains" as a key sustainability topic that has been mapped to the Sustainable Development Goals (SDGs) of the United Nations.

We will help to achieve the SDGs by strengthening supplier CSR activities across the entire Epson Group.

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. Epson has joined the RBA and 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 a regular member of the RBA, Epson is working to strengthen its supply chain CSR and is requesting suppliers to do so, as well.

Related information


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.

Organization

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 progress is regularly reported to the Sustainability Strategy Council, a corporate management meeting that includes members of the board of directors.

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 to be conformant by the RMI



FY2021 Major Action Items, Plans, and Results

Major Action Items, KPI Result
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*1: KPI 100% improved
1)100%

2)100% (Critical items)
2 Strengthening conflict mineral survey
1) Elimination of non-CF certified smelters by performing due diligence
2) Collecting survey answers: KPI 100% collection
1) 100% (Asked all suppliers to use only conformant smelters)
2) Return rate
CMRT: 99% *2
CRT: 98% *3
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%
1) 67%
2) 96%

*1 Suppliers with a high human rights risk are asked to take corrective action against indicated items.
*2 CMRT (Conflict Mineral Reporting Template): An Excel template containing the 3TG survey
*3 CRT (Cobalt Reporting Template): An Excel template containing the cobalt survey


FY2022 Major Action Items

Major Action Items, KPI
1 Strengthening the detailed CSR evaluation (due diligence)
1) CSR SAQ results: high risk 0%, middle risk: 6% or less
2) Completion rate of risk mitigation activities for specified priority items: 100%
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) Discussions (or dialog) with suppliers on CSR: 20 companies