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.
Pledge to Nitori Group Procurement Policy
This policy is required to be understood and observed by all suppliers as well as employees of the Nitori Group. We are currently asking all suppliers with whom we do business to clearly state and pledge to abide by this policy. In the event that a violation of this policy is identified, we encourage our suppliers to improve their performance and, if necessary, provide them with guidance to remedy the situation.
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 case-by-case basis and are mainly in the five categories of “development,” “quality,” “logistics and trade,” “corporate stance” and “sustainability (items addressing social issues, including environmental issues and human rights violations).”In FY2023, seven new items were added to the “Sustainability” category of evaluation items, for a total of 53 items. 443 suppliers were audited in the second half of FY2023.
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 FY2023.
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● Promotion of compression packaging
● Product development based on the premise of sorting and recycling after use
・Use of raw materials that are easily recyclable
・Encourage use of recycled raw material
・Continuation of production methods that reduce environmental impact, etc.
Supplier Interview
The overseas suppliers responsible for manufacturing bedding products, including “recycled down quilts” made from down quilts collected by the Nitori Group and reproduced into finished products, uphold “integrity, trust, and quality,” “providing eco-friendly products,” and “organizational and human resource development” as their management principles. Thus, they are highly conscious of sustainability and have acquired many international certifications.
288KB]Click here for the interview (published in Integrated Report 2023)
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 violations and we are working on biodiversity-conscious traceability with our suppliers. In January 2024, we established the Nitori Group Timber Procurement Policy and began live operation of timber procurement traceability.
NITORI GROUP Partnership Charter
- NITORI and all its subsidiaries, together with its business partners, provide enriched lifestyles to customers around the world.
- NITORI and all its subsidiaries, together with its business partners, aim to be the best in the world in our respective businesses.
- NITORI and all its subsidiaries strive to build a real partnership with our business partners, by eliminating any improper, unfair, or unclear trading activities and through mutual improvement.