Implementation of supply chain sustainable survey
From 2010, Hitachi Construction Machinery Group has conducted Supplier CSR Survey every year, as a first step towards CSR procurement. The targeted suppliers are suppliers which are recognized to have significant impact to our supply chains; tier-1 supplier to the Group companies with large annual purchasing volume, and supplying important parts or materials.
The survey covers seven areas; human rights and labor, health and safety, environment, fair trade and ethics, quality and safety, information security and contribution to the community.
From FY2014, we put efforts to implement supply chain sustainable survey within the Group companies, and we started the survey to suppliers of Hitachi Construction Machinery China.
In FY 2021, we conducted the sustainable survey targeting suppliers who account for approximately 90% of Hitachi Construction Machinery’s purchase of products. 66.0% of suppliers has responded to the survey. Suppliers that do not meet the minimum score set by the Group are identified as suppliers with high risk regarding sustainability. We have requested those suppliers to improve their performance through the implementation of corrective action plans(*).
We will continue to conduct continuous sustainable investigations, now focusing on Hitachi Construction Machinery China, and will keep improving our procurement activities. We will also promote completion of Business Continuity Plan within the whole supply chain.
(*) Suppliers are evaluated according to the “Purchase Transaction Action Guideline” when concluding and revising Basic Agreements.
In FY2021, 3.7% suppliers did not satisfy our standards in the sustainable survey, but they have conducted corrective action plans that have improved their ESG performance.