Policy and Strategy
We at the Kyowa Kirin Group are promoting Sustainable procurement across the entire supply chain by ensuring that our suppliers understand and cooperate with our initiatives.
To ensure a stable supply of high-quality products, we are working to conduct open and fair Sustainable procurement. As part of our efforts, we stipulate the Kyowa Kirin Group Procurement Policy*1, which manifests our determination to promote Sustainable procurement in collaboration with suppliers.
Growing importance of sustainable procurement, we have revised the Kyowa Kirin Group Supplier Code of Conduct in accordance with international standards, laws, and regulations and have posted it on this website as requirements to adhere by throughout our supply chain.
We at the Kyowa Kirin Group expect our suppliers to comply with applicable international standards, laws, and regulations, and to adhere to the Kyowa Kirin Group Supplier Code of Conduct.
The Kyowa Kirin Group will conduct evaluations of suppliers' adherence to the Kyowa Kirin Group Supplier Code of Conduct and seek cooperation from suppliers, including corrective action, for any issues identified.
The Kyowa Kirin Group is willing to work with suppliers who are willing to improve identified issues, to ensure a stable supply of high-quality products.
- *1:The Kyowa Kirin Group Procurement Policy is established based on the Kyowa Kirin Group Code of Conduct, which is established according to the policy of Kirin Group.
- *2:The Kyowa Kirin Group Supplier Code of Conduct is formulated with reference to the “Pharmaceutical Industry Principles for Responsible Supply Chain Management” developed by the Pharmaceutical Supply Chain Initiative (PSCI), a non-profit organization composed of global pharmaceutical companies.
Kyowa Kirin Group Procurement Policy
For the Kyowa Kirin Group’s procurement activities, we have in place the Kyowa Kirin Group Procurement Policy, based on which we aim to forge long-term relationships of trust with our suppliers and together fulfill our corporate social responsibility by complying with all related laws, regulations and rules, and striving to engage in fair, just and open procurement activities.
Kyowa Kirin Group Procurement Policy
Revised on December 1, 2023
- Ⅰ . PURPOSE
- To make contributions to the health and affluence of the people in the world according to its management philosophy, the Kyowa Kirin Group will continue contributing to the development of sustainable society by promoting the Sustainable Procurement activity in collaboration with suppliers, to realize creation of new value on the strength of the life science and the technology.
- Ⅱ. SCOPE
- The Kyowa Kirin Group Procurement Policy shall apply to all the members working for the Group, without regard to regions, countries, position or post (officers, employees or dispatched staff members, etc.), or full-time or part-time workers.
- Ⅲ. DEFINITIONS
- 1.The Sustainable Procurement shall mean the procurement activity that has most positive influence environmentally, socially and economically that occurs in the entire lifecycles, which aims at minimizing unfavorable effects.
- Ⅳ. GUIDING PRINCIPLES
- 1.Quality first
- (1)In procurement practices, we place a high priority on pursuing safety and quality in accordance with the "Kyowa Kirin Group Quality Assurance Policy," while also taking costs into account.
- (2)We welcome new ideas and technical solutions for increasing customer value from suppliers.
- 2.Fair and open business dealings
- (1)We select suppliers based on their performance in quality (Q), cost (C), delivery (D), sustainability (S), reliable supply, technological expertise, and ability to propose innovative ideas, etc.
- (2)We use a competitive bidding and selection process for procurement to ensure fairness to all suppliers.
- (1)We observe social norms as well as the letter and spirit of laws and regulations, and conduct business in a sensible and socially responsible manner.
- (2)Employees engaged in procurement practices shall not have personal conflicts of interest with any supplier. They shall not receive from any supplier rewards or gifts which deviate from social norms. They shall not force any supplier to make donations to the Group nor to buy products and services from the Group. They shall not impose a reciprocal business arrangement on any supplier.
- 4.Environmental considerations
- (1)We observe environmental laws, regulations, and ordinances, voluntary industry standards for the environment, and our own voluntary standards, to help society maintain a harmonious coexistence with nature.
- (2)We conduct environmentally sensible, nonpolluting procurement practices in accordance with the "Kyowa Kirin Group Environmental Policy".
- 5.Coevolving relationships of mutual trust with suppliers
- (1)We strive to establish long-term, coevolving relationships of trust with suppliers. We work with suppliers to manage and avoid risks so as to minimize their impacts on society and the Kyowa Kirin Group's business.
- (2)We take the utmost care when managing personal information and confidential business information provided to us by suppliers, and do not disclose them to internal or external parties without the explicit approval of the original suppliers of such information.
- Ⅴ. SUPPLEMENTARY PROVISIONS
- Section responsible for the Kyowa Kirin Group Procurement Policy: Procurement Department.
Kyowa Kirin Group Supplier Code of Conduct
Date of revision: December 20, 2023
The Kyowa Kirin Group sets out the Kyowa Kirin Group Supplier Code of Conduct to promote sustainable procurement throughout the entire supply chain. We ask all of our suppliers to understand and comply with all items presented in the Kyowa Kirin Group Supplier Code of Conduct, as well as to reflect on their own corporate activities from the perspective of sustainability and make efforts for further improvement.
The Kyowa Kirin Group Supplier Code of Conduct is comprised of the following seven perspectives.
- 1.Relationship with Society
Suppliers, as good members of society, should strive for sustainable economic growth and solutions to social issues. To achieve this, suppliers should build friendly and ethical relationships with all stakeholders.
- 2.Relationship with Employees
Suppliers should respect each individual’s humanity and strive to maintain an employee-friendly environment at workplace.
- 3.Compliance with Rules
Suppliers should abide by social rules and act in good faith with high ethical standards.
- 4.Respect for Human Rights
Suppliers should respect human rights and diversity of all people.
- 5.Environmental Preservation
Suppliers should proactively initiate measures based on the recognition that addressing environmental problem is a mutual task of all the people and an essential requirement for corporate activities and survival.
- 6.Information Management
Suppliers should properly manage information concerning their business.
- 7.Risk Management
Suppliers should manage risks and crises pertaining to their business appropriately.
It is important for the entire supply chain to understand this Kyowa Kirin Group Supplier Code of Conduct and act accordingly to realize sustainable procurement.
We ask suppliers who have received this Kyowa Kirin Group Supplier Code of Conduct to communicate the code to the people not only in their own company but also to their suppliers, to implement appropriate resource allocation and to organize appropriate systems, procedures, and processes. Suppliers shall properly investigate concerns relating to this Kyowa Kirin Group Supplier Code of Conduct and take corrective actions, as appropriate.
In addition, suppliers are requested to manage their own efforts through their own management systems so that the entire supply chain can contribute to realizing a sustainable society. We would appreciate the cooperation of all suppliers.
The existing “Supplier Code of Conduct” will be revised and renamed to the Group common "Kyowa Kirin Group Supplier Code of Conduct.”
The Kyowa Kirin CSR Procurement Guidebook, which contains the Supplier Code of Conduct, will be abolished as of February 1, 2024.
The promotion of sustainable procurement is a universal challenge for the Kyowa Kirin Group. Each company/department incorporates their own issues into their action plans and is advancing initiatives designed to resolve them. In addition, the Kyowa Kirin Group CSR Committee reports on the state of progress of those initiatives.
To ensure that all employees have a common understanding of the importance of practicing sustainable procurement, we regularly conduct training for all employees every year. Commenced in 2019, training for domestic Group companies is also ongoing, and overseas Group companies are conducting their own training.
The Kyowa Kirin Group implements supply chain risk management. To provide a stable supply of medicines, it is necessary to procure raw materials from suppliers in a stable manner.
We are conducting risk management by communicating our procurement policies to suppliers and obtaining external information, such as on the status of supplier CSR activities and on the management stability of the suppliers themselves.
Indicators and Targets
We consider that, in order for Kyowa Kirin to conduct sound business activities and fulfill its social responsibility, it is essential that suppliers who are key partners should understand our CSR policy and cooperate in our CSR efforts.
We actively promote CSR procurement for mutual development, by conducting fair and open transactions with our suppliers and obtaining cooperation in a spirit of equal partnership.
Examples of Specific Initiatives
At Kyowa Kirin, the following measures are carried out in each stage of transactions with suppliers.
- (1)Ensuring that suppliers are familiar with CSR procurement.
We regularly provide suppliers with explanations on our approach to CSR procurement, the Supplier Code of Conduct, and other related information.
- Briefing sessions for individual suppliers / for all suppliers
- A briefing webinar was held in November 2021 with 463 suppliers in attendance.
- A supply chain exchange meeting was held in 2018 to share information on, and solutions for, issues faced by the entire supply chain.
- When starting new transactions with suppliers, we provide them with an explanation of our CSR Procurement Guidebook and ask for their understanding and cooperation.
When a large number of new transactions is expected, we hold pre-transaction briefing sessions for new suppliers (2018: Takasaki Plant; 2021: Briefing for a change in the procurement system).
- Briefing sessions for individual suppliers / for all suppliers
- (2)Selecting and concluding contracts with suppliers
- We select suppliers in accordance with a set of criteria based on objective information.
- With existing suppliers, we conclude a contract to ensure their compliance with the Supplier Code of Conduct.
- (3)Post-contract follow-up
- We keep track of suppliers based on objective indicators, assess their risk, and conduct follow-up surveys in accordance with their risk.
- We annually conduct a CSR questionnaire survey for existing suppliers to examine their CSR activities and identify issues within the supply chain. The results of the questionnaire are used at supplier briefing sessions to share the issues identified and increase the awareness of suppliers.
- We assess suppliers based on objective information and monitor them according to their level of importance. The most important suppliers are monitored at all times.
- If a concern arises, we inspect how the concern is being addressed through a follow-up inspection or visit to the relevant supplier. In the case of a particularly important concern, we review our transaction with the supplier based on a set of preset criteria.
- We check and share information on individual suppliers’ CSR-related issues by visiting them or holding face-to-face/online meetings.
- Our procurement staff members attend quality assurance inspections to check the suppliers’ sites directly.
CSR Questionnaire Surveys
With regard to the topics covered in the Supplier Code of Conduct, we annually conduct a CSR questionnaire survey to understand and analyze the CSR activities under way in the supply chain and identify existing issues. The results of the questionnaire are provided to the respondent suppliers as feedback. We have also conducted CSR questionnaire surveys of overseas suppliers since 2019.
Present status and issues identified through the 2021 CSR questionnaire survey result
- High scores were maintained for illegal trading, legal compliance and occupational accidents countermeasures, indicating the efforts made to strengthen organizational governance.
- The overall trend was about the same over three years from 2019 to 2021, with harassment prevention, business continuity planning (BCP), reduction of environmental pollution, biodiversity conservation, and green procurement activities showing an increasing trend.
- For respect for human rights (formulation of a policy to prevent forced labor), less than 75% of the companies responded that they have formulated the policy. Respect for human rights is a global common issue, and the formulation of a policy to prevent forced labor is crucial for conducting activities related to respect for human rights. Therefore, improvement is required for this item.
- For the environmental aspect, global warming is an issue common to all human beings. Although improvements have been made, overall scores remained low. Environmental activities need to be promoted toward the goal of achieving a sustainable society.
- With regard to business continuity planning (BCP), about 88% of respondents answered that preparatory measures for emergencies were in place, indicating a high awareness of wide-ranging risks.
- For measures against cyber attacks, a newly added item, many companies had some measures in place. With regard to information security systems, nearly 97% of respondents had established a system, while less than 94% have measures against cyber attacks in place. As we have heard that many companies have suffered from a cyber attack, we request that companies with no measures in place promptly consider taking action.
Measures to Be Taken for the Future
Kyowa Kirin Group reviews its sustainable activities, identifies issues that need to be solved, and works to make improvements with the cooperation of its suppliers. In particular, we intend to continue implementing anti-bribery and human rights due diligence, which are high-profile themes. We are also working on environmental preservation by recognizing issues and implementing activities that help prevent global warming.
Looking forward, we will continue our efforts to the entire Kyowa Kirin Group, further strengthen our collaboration with the entire supply chain, and actively push forward sustainable procurement with all our suppliers.