Supply Chain

Goals

Long-term Goal to be achieved by FY2030

The Fujitsu Group will accomplish CSR risk-free procurement to fulfill our corporate social responsibility.

  • Acquire written commitment to responsible procurement from all of our key suppliers.

Short-term Goal to be achieved by FY2020

The Fujitsu Group will embed responsible procurement throughout our global supply chain.

KPI :
The Fujitsu Group will conduct educational activities on responsible procurement throughout our global supply chain by workshop, e-Learning, distributing guidebook, etc.
  • Fujitsu Group : all procurement divisions and departments are trained.
  • With Suppliers top 80% of all suppliers by purchase amount basis are trained.

Policy

The Fujitsu Group holds “Co-existence with Suppliers”, “Fair and Proper Evaluation and Selection of Suppliers” and “Promotion of CSR-Conscious Procurement Activities” as the tenets of its CSR (Corporate Social Responsibility) Procurement Guideline, and conducts its global procurement activities accordingly.
In 2005 we formulated the "CSR Procurement Guideline” for CSR procurement and requested our suppliers in Japan and overseas to comply with that guideline. In 2018 we adopted the RBA(*1) Code of Conduct as the "Fujitsu Group CSR Procurement Guideline".

Structures for Promoting CSR Procurement & Periodic Reviews

Under the group-wide policy, the relevant departments in the Fujitsu Group collaborate regarding the promotion of CSR activities. In the area of procurement, the Global Supply Chain Unit works with the relevant departments in promoting socially responsible procurement activities by suppliers. The CSR promotion activities are targeted at our major suppliers, that is, the largest suppliers on a monetary basis and those who have ongoing dealings with Fujitsu.
We initially clarify the compliance items through our CSR Procurement Guideline and then require our suppliers to undertake CSR activities. To confirm that these CSR activities are being fully implemented by suppliers, they are asked to respond to a range of surveys on topics such as green procurement, information security and Business Continuity Management (BCM).
The survey responses are analyzed and the results are returned to the suppliers as feedback. Where a supplier fails to meet Fujitsu’s standards, they undertake to make improvements. Where there is a particular need to check whether CSR activities are being fully implemented by a supplier, a CSR audit is conducted. Such suppliers are required to submit a remediation plan for any matters identified by the audit and Fujitsu works with the suppliers to make the necessary improvements. Fujitsu is continually improving its processes and promoting CSR procurement with the goal that ultimately CSR activities will be properly undertaken by suppliers and will become firmly entrenched.

Processes for Promoting and Improving CSR Procurement

Promoting Activities and Participation in Industry-standard Initiatives (RBA Membership)

The Fujitsu Group is a member of the Responsible Business Alliance (RBA), a global CSR alliance. As such, we give serious consideration to the RBA’s Code of Conduct and engage in socially responsible procurement with our suppliers and throughout our supply chain.
The Fujitsu Group also takes an active role in the programs and initiatives of organizations such as the Japan Electronics and Information Technology Industries Association (JEITA) and works to promote socially responsible procurement in the industry.

Addressing High-Risk Minerals

The policy of the Fujitsu Group is to exclude from its products, components and supply chain any minerals that give rise to conflicts (“conflict minerals”), or minerals that are at high risk of being associated with forced labor or human rights violations. (The Fujitsu Group identifies tantalum, tin, gold, tungsten and cobalt as high-risk minerals.)
Fujitsu has also established a structure to ensure the transparency of procurement activities in the supply chain and the responsible procurement of minerals. This structure includes the relevant internal departments and operates under the jurisdiction of the Responsible Business Committee (chaired by Fujitsu’s President).

Structure for Responsible Minerals Procurement

Surveys on High-Risk Minerals

As part of its due diligence, the Fujitsu Group conducts high-risk minerals surveys with reference to the “OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas”. These surveys use the Conflict Minerals Reporting Template (CMRT) and Cobalt Reporting Template (CRT) developed by the Responsible Minerals Initiative (RMI).

Reminders are sent to those suppliers who failed to respond to our survey by the due date. If survey responses reveal insufficient answers, suppliers are asked to resubmit their responses. Where customers indicate that a smelter is considered to be “risky”, we ask suppliers using that smelter to re-examine the nature of their dealings with the smelter.
While there have been no confirmed reports yet of smelters having any involvement with armed groups, we will continue to conduct programs aimed at identifying smelters and further increasing transparency in our supply chain.

Promoting Green Procurement

The Fujitsu Group has set out its basic approach to the environmentally sound procurement of components, materials and products in the Fujitsu Group Green Procurement Direction, and we are working with our suppliers to promote green procurement activities. We are also implementing a program to reduce CO2 emissions in the supply chain. Specifically, the Fujitsu Group is promoting activities aimed at reducing environmental impacts throughout the supply chain, including by requesting that all of its suppliers call on their own suppliers (companies that are secondary suppliers from a Fujitsu Group perspective) to also reduce their CO2 emissions. We will also be intensifying our engagement with suppliers regarding water resource conservation.

Promoting Information Security Measures

Based on the “Cybersecurity Management Guidelines” issued in December 2015 by Japan's Ministry of Economy, Trade and Industry and the Information-technology Promotion Agency (IPA), the Fujitsu Group, along with its suppliers, has adopted the goal of “eliminating information security incidents”, and is continually implementing measures to prevent such incidents or recurrences. These measures include education, raising awareness, auditing, and sharing information.
In recent years, there has been a significant increase in the commercial use of external services such as cloud computing and social media. There has also been a rapid increase in opportunities for the use of smart devices such as smartphones and tablet PCs. It is necessary to prevent not only incorrectly addressed emails being sent by mistake and the theft or loss of PCs and smart devices, but also new kinds of risks involving information leaks such as in-house crimes and cyber terrorism. In this context, when the Fujitsu Group consigns work to suppliers, including offshore development work entrusted to overseas suppliers, it promotes education and awareness by requiring the same standards of information security management and handling of personal information as it applies to its own operations. If any serious problem regarding information security is discovered at a supplier, or if the supplier fails to immediately implement corrective measures and no improvement is observed, Fujitsu will take steps such as reviewing its business relationship with the supplier.

Enhancing Supply Chain BCM

The Fujitsu Group sees the enhancement of Business Continuity Management (BCM) throughout its supply chain as essential to ensuring a stable supply of products and services in the event of major disasters or other unexpected contingencies. Accordingly, since FY2007 we have provided our suppliers with ongoing support to improve their BCM capabilities.
Fujitsu conducts an annual questionnaire-based survey of its suppliers on how they address BCM. This survey also covers some group companies that conduct their own procurement. We analyze the responses to the survey and then provide feedback to the suppliers and group companies. Since FY2014, we have been using a standard survey form developed by JEITA’s Materials Committee.
Fujitsu also conducts annual surveys of major solutions-related suppliers, analyzing the responses and providing feedback.

Communication with Suppliers

Business Meetings

Under the Suppliers' Performance Review (SPR(*2)) system, the Fujitsu Group holds management-level business meetings targeting around 200 of its major suppliers. These meetings provide both direct feedback on the assessment results in an interactive format as well as explanations of Fujitsu’s business outlook and procurement strategy. The feedback provided at these meetings also addresses CSR topics, and suppliers whose efforts do not meet Fujitsu’s standards are asked to make improvements. Fujitsu also carries out assessments of solutions-related suppliers and provides the results of those assessments as feedback to the major suppliers.

  • (*2)
    Suppliers’ Performance Review: A program developed by Fujitsu that assesses the performance of procured goods and the basic profile of enterprises in terms of quality, technology, price, supply and CSR.

Fujitsu Suppliers’ Reception

The Fujitsu Group has been holding receptions for its suppliers since 1997. These events provide an opportunity for Fujitsu’s President to give an overview of the Fujitsu Group’s business activities and for the Vice President responsible for purchasing to explain Fujitsu’s purchasing strategy. These gatherings are also used to present certificates of appreciation to suppliers who have made exceptional contributions to our business and to further strengthen our partnerships with suppliers.

Strengthening Procurement Compliance

Education by Procurement Divisions

The procurement divisions of the Fujitsu Group conduct annual education and training programs for their suppliers to thoroughly disseminate awareness of CSR and to ensure that procurement is socially responsible. In FY2018, in addition to CSR procurement and green procurement, training aimed at increasing awareness among procurement staff was also offered in the areas of risk management (BCM activities) and compliance with legislation such as the Subcontracting Law and the Worker Dispatching Business Law.

Supplier Compliance Line

The Fujitsu Group uses the Supplier Compliance Line as a channel to receive reports from suppliers regarding any actions that are potential or actual instances of non-compliance in our purchasing activities. Channels have been set up both internally and externally through which we can verify and investigate the facts of each report and respond quickly.
Fujitsu’s internal reporting standards prohibit any adverse treatment of its own staff making such reports or of staff from suppliers making the reports.
Our agreements with suppliers also include explicit provisions on the elimination of anti-social forces and other such groups with the aim of preventing harmful actions by such anti-social forces (and avoiding any encouragement of their activities). The Fujitsu Group, including its suppliers, will have no relationship whatsoever with anti-social forces.

FY2018 Performance

CSR Surveys & Audits

  • CSR surveys of major suppliers in Japan and overseas: Approximately 200 companies
    • Responses revealed that more than 90% of all major suppliers are actively undertaking CSR activities.
  • CSR audits of suppliers: Nine companies
    • While no major violations were found, the audits confirmed the existence of items requiring remediation in some minor areas, such as employment that exceeded legal overtime hours, deficient equipment installation and insufficient management of waste product facilities.
    • The suppliers concerned were requested to provide remediation plans and to implement the remediation measures; these matters will be pursued until remediation is completed.

High-Risk Mineral Survey Results

  • In the FY2018 survey, Fujitsu received responses from 85% of the suppliers surveyed.
  • Smelters operated by 322 companies were checked, of which 254 were compliant with the RMI-certified Responsible Minerals Assurance Process (RMAP).

Promoting Information Security Measures

  • Information security briefings (total 9 locations; Oct.-Nov. 2018): Approximately 900 companies / 1,300 people
  • Written surveys on the state of information security measures (Feb.-Mar. 2019): Approximately 1,700 companies
  • Audits on the state of information security measures (on-site checking) (Apr. 2018-Mar. 2019): Approximately 200 companies
    * Repeated status surveys, education and auditing of suppliers are fundamental to the maintenance of trouble-free operations.

Enhancing Supply Chain BCM

Products:

  • Surveys conducted (May-September 2018): 907 companies / 2,384 locations
  • Feedback provided (October 2018): 907 companies / 2,384 locations

Solutions:

  • Assessment feedback provided: Approximately 250 companies

Communication with Suppliers

Products:

  • Business meetings held: 27

Solutions:

  • Assessment feedback provided: Approximately 250 companies

Fujitsu Suppliers’ Reception

  • Held January 2019: Suppliers in Japan and overseas - Approximately 310 companies and 600 people
    * This year’s event was also used as an opportunity to request that suppliers expand their CSR activities to their own upstream suppliers.
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