In the domestic business of the Suntory Group are promoting sustainable procurement with our business partners to contribute to the realization of a sustainable society as a company that has signed the United Nations Global Compact.
Basic policy on sustainable procurement
In order to offer our customers high-quality products and services, at the Suntory Group we believe it is crucial to promote sustainability throughout our entire supply chain. This means we need to give due consideration to environment and society, as well as to safety and reliability.
In 2011, in order to promote sustainability, we established the Suntory Group's Basic Policy on the Sustainable Supply Chain that consists of six main pillars - legal compliance, human rights and labor standards, quality, environment, information security, and the coexistence with society - that address global issues such as child labor, forced labor, freedom of association and collective bargaining, working hours, the guarantee of minimum wages, etc. In order to promote sustainability, we are raising awareness and deepening understanding with our business partners.
The Suntory Group's Basic Policy on Supply Chain Sustainability (Established 2011)
In order to provide high-quality products and services safely and reliably based on our corporate philosophy of "To Create Harmony with People and Nature" and our Code of Business Ethics, the Suntory Group engages in fair business practices and, in collaboration with supply chain business partners, promotes procurement activities that take social responsibility into consideration, mindful of such issues as human rights, labor standards, and the environment.
We build good partnerships with our business partners and contribute toward realizing a truly affluent and sustainable society.
1. Legal Compliance and Respect for International Standards of Conduct
We will promote fair and equitable procurement activities that comply with each country's laws and respect international standards of conduct.
2. Consideration for Human Rights, Labor, and Safety and Health
We will promote supply chain CSR initiatives that respect basic human rights and are mindful of labor conditions and safety and health.
3. Guaranteeing Quality and Safety
Aligned with the Suntory Group Quality Policy, we will promote supply chain CSR initiatives that seek to guarantee a high level of quality and safety based on the optimal standards for quality, cost, and supply.
4. Consideration for the Global Environment
Aligned with the Basic Principles of Suntory Group's Environmental Policy, we will promote procurement activities mindful of the global environment.
5. Preservation of Information Security
Confidential information regarding procurement dealings and personal information will be strictly controlled.
6. Coexistence with Society
We will promote social contribution initiatives directed toward coexisting within society.
Promoting Sustainability Activities Throughout the Supply Chain
We have newly established Global Procurement Development Department in April 2019 to promote sustainable procurement throughout the Group and have been conducting optimum and sustainable procurement across the globe. We also hold a Global Procurement Meeting with our overseas Group companies to discuss overall strategy regarding sustainable procurement and promote initiatives on each company.
Establishing Supplier Guidelines
We established the Suntory Group Supplier Guidelines based on the Basic Policy on the Sustainable Supply Chain in June 2017 to contribute to the realization of a sustainable society while also accelerating sustainable procurement within the Suntory Group. These guidelines put in place specific compliance items required in each field from human rights and legal compliance to the environment for suppliers of Suntory in Japan and overseas to confirm the same ethical values are shared between the Suntory Group and its suppliers. As for our main suppliers, we share these guidelines also during our annual supplier conference.
Monitoring of Suppliers
We conduct a screening based on the Basic Policy on the Sustainable Supply Chain for all new suppliers.
In addition, in June 2019 we joined Sedex, the world's largest supplier ethical information sharing platform, and we are engaging our suppliers to also join Sedex and share with us ESG information, including answering the SAQ*.
As of May 2020, 713 manufacturing facilities of our suppliers globally have been linked to Suntory, covering 70% of our purchase in monetary amount. From now on, we will conduct risk assessment by leveraging Sedex assessment tool based on the results of SAQ.
We also conduct a self-assessment questionnaire related to sustainability every year targeting main suppliers of Purchasing Department, Packaging Material Department, and Distribution Department that have not joined Sedex. In 2020's questionnaire (19 items/each rated on the scale from zero to three), we were able to confirm the diligent efforts in sustainability of each company with the Purchasing Department at a 2.92 rating, the Packaging Department at a 2.91 rating, and the Distribution Department at a 2.83 rating in the average company answers.
- *SAQ: Self Assessment Questionnaire
Auditing and Monitoring Initiatives
The Suntory Group has been inviting and received briefings from overseas suppliers in Japan about human rights, such as child labor and forced labor, since 2014. We also held briefings with producers of malt and hops, which are the main ingredients for beer, in 2014 as well as with Chinese oolong tea production factories in 2015 and monitored five oolong tea leaf companies in 2016. No issues were found on these assessments.
Beam Suntory is committed to doing business the right way everywhere we operate. That's why we conduct regular third-party audits of our key suppliers to verify conformance with our Code of Conduct and Ethics.
Contract Farms to promote High-quality and Stable Supply
The Suntory Group procures a portion of its coffee beans, which are a vital ingredient for coffee, from the "Fazenda Bau" Farm, which is a specialty coffee farm in Minas Gerais, Brazil, as we aim for the highest quality and stable supply of coffee beans. Fazenda Bau has acquired international certifications from organizations that include the Rainforest Alliance*1 and UTZ*2, and they are highly praised for their thorough quality management and workplace environment.
Fazenda Bau has been engaging in a wide range of activities to promote sustainability, turning their attention to labor practices and the labor environment, conducting efforts such as courses on the health and safety of employees, as well as courses about motivation and human relationships in the workplace, and morning gymnastics. Environmental conservation activities such as separating trash and comprehensive management of the water intake as well as tree planting initiatives show their awareness regarding their impact on the environment. In addition, the Fazenda Bau have been engaging in a support project at a neighboring school since 2011 with the purpose of contributing to the local community.
- *1Rainforest Alliance: International non-profit organization established with purpose of preserving the global environment through protecting the rainforests in 1987.
- *2UTZ: International certification program for sustainable agriculture. Certification is only given to those that fulfill all standards in appropriate farming practices and farm maintenance, safe and healthy labor conditions, abolition of child labor, etc.
The Suntory Group promotes sustainability throughout the supply chain in order to bring safe and reliable products to customers now and into the future.
Procurement Ratio by Supplier Region
In the domestic business of the Suntory Group are purchasing raw materials from the suppliers in the regions below. We promote the sustainability of raw materials in cooperation with our suppliers.
Improving Cooperation with Business Partners
The Suntory Group strives to promote CSR procurement together with all of its business partners in the supply chain. We are promoting better awareness and support so that the necessity of sustainability initiatives is understood through education for our company representatives and policy briefings and questionnaires for our ingredient suppliers, manufacturing outsources, logistic affiliates, and other primary business partners. In addition, Suntory Group participates in the Consumer Goods Forum Japan*, which promotes distribution networks of consumer goods across the industry, to reduce the environmental impact of the Suntory supply chain.
*The Consumer Goods Forum Japan is an organization primarily made up of companies in the consumer goods distribution industry that engages in cooperative manufacturing, distribution and sales efforts to address common challenges in non-competitive industries in Japan.
Promoting Green Procurement
Suntory Group has established Suntory Group Green Procurement Standard (revised 2011) based on the Suntory Group's Basic Policy on Supply Chain Sustainability and promotes procurement activities to lower environmental impact in corporation with each business partner.
Currently 80% of the plants we have transactions with have acquired International Standard ISO14001 and environmental responsiveness are improving. Also, Packaging Material Development Department is implementing a comprehensive evaluation of green procurement based on business partner evaluation standards in the Green Procurement Guideline to determine that environmental initiatives are advancing.