Materiality 4
Fair and honest trade and respect for human rights in the supply chain
Basic policy
We ask suppliers, who are our partners in achieving NITORI Group’s mission, to not only comply with laws and regulations but also establish what we consider to be true partnerships with us. Together, we will achieve sustainable growth throughout the entire supply chain.
True partnership
- A relationship where both sides learn about the latest topics, including those relevant to corporate management, share the knowledge and work hard together.
- A fair, honest, highly transparent, and open relationship where both sides can engage in active exchange of opinions.
- A relationship where both sides share not only ideas and management methods for the creation of a culture of product safety but also the importance of fulfilling social responsibilities, such as being environmentally conscious*1, respecting human rights*2, and maintaining an appropriate work environment*3 and grow together to achieve the mission.
*1 Being environmentally conscious in accordance with NITORI Group’s Environmental Policy
*2 Prohibition of forced labor, child labor, and discrimination, etc.
*3 Preventing overwork, ensuring more leave than statutory requirements, paying the statutory minimum wage, ensuring workplace safety, maintaining a comfortable workplace environment where employees work in good health, etc.
Initiatives for Building True Partnerships with Suppliers
Audit of potential new suppliers
In order to deliver safe and secure products to customers, NITORI Group audits potential new suppliers to check eligibility requirements. We conclude contracts only with suppliers that have passed a rigorous on-site investigation covering a total of 244 items, including quality assurance items and responses to environmental and social issue.
Endorsement and Signature to the Supplier Code of Conduct
In order to fulfill our social responsibility with our suppliers, we have established a Supplier Code of Conduct. This Code of Conduct is clearly stated to all suppliers and has been endorsed and signed by them. In the event that a violation of this Code of Conduct is identified, we encourage our suppliers to improve their performance and, if necessary, provide them with guidance to remedy the situation.
92.4KB]Supplier Evaluation
We conduct Audits of existing suppliers twice a year to understand the actual status of existing suppliers and to identify risks. The audit items are reviewed on a caseby-case basis and are mainly in the five categories of “development,” “quality,” “logistics and trade,” “corporate stance” and “sustainability (items addressing environmental and social issues)” (46 items in total). 431 suppliers were audited in the second half of FY2022.
Communication and dialogue with suppliers
We shared the current situation and future challenges as well as the direction of product development that takes into account environmental and social issues* at the Management Policy Briefing for Overseas Suppliers for FY2022.
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* Develop products that can be sorted after use and recycled.
Promotion of compression packaging
Promotion of environmental certification etc.
Supplier Interview
This overseas supplier is responsible for the manufacture of many of NITORI’s products, especially “N Polda”, NITORI’s suspension wall storage, and has been a supplier to us for more than 10 years. The company is highly conscious of quality and has been participating in NITORI Group’s NWC activities since 2015, with “zero defect rate” as its ultimate target. They are a company that is always actively improving and evolving in quality control and environmental considerations.
Click here for the interview (published in Integrated Report 2022)
Sustainable Procurement
NITORI Group promotes “sustainable procurement” throughout its supply chain, with the aim of procuring products with consideration for environmental and social issues. In particular, in the area of sustainable timber procurement, we aim to build a supply chain that is free from deforestation, illegal logging and human rights abuses. We are also working with our suppliers to create a traceability system that also takes biodiversity into consideration. With the cooperation of our suppliers, we have completed a trial program for traceability of timber procurement, and plan to perform full-scale operation in fiscal 2023. In order to ensure objectivity, we utilized the “Responsible Purchasing Checklist for Forest Products “published by WWF Japan, a global environmental NGO, to confirm and evaluate “traceability to the origin” and “appropriateness of forest management” in consideration of the environment and society. In order to ensure that the entire supply chain is working in the same direction, we communicate and share the necessity of “sustainable timber procurement” at the annual management policy briefing for overseas suppliers.
The NITORI Group’s Business Partner Charter
- Together with our business partners, we aim to providing the foundation of prosperous home living to the global community.
- Together with our business partners, we strive to be the best in the world.
- Together with our business partners, we aim for a true partnership to become the best in the world.
- Together with our business partners, we will establish a true partnership that will realize a competitive spirit seeking ongoing improvements in every related field.
- Together with our business partners, we will establish a true partnership, eliminating injustice, unfairness, or opaqueness.