Communication with our business partners

We ask our business partners to understand the azbil Group Basic Policy on Procurement and to agree to a basic transaction agreement that stipulates environmental conservation activiy. We have sent a copy of our policy to about 300 subcontractors and 700 business partners who regularly make large purchases to ensure that they are fully aware of it. The entire supply chain is involved in purchasing that considers corporate social responsibility (CSR).

Due diligence on new business partners

At the start of a new transaction with a new business partner, we issue a questionnaire to them on management, financial evaluation, quality and CMS audits, and preservation of the environment1 to assess whether or not we can do business with them. In addition, when selecting business partners, we conduct risk assessments of social and environmental aspects, such as human rights, health, and safety, based on our CSR Procurement Guidelines. Specifically, we conduct risk assessments using supplier self-evaluation questionnaires and other means. If the results do not meet certain standards but we determine that improvements can be made, we encourage corrective action and strive to ensure fair and appropriate procurement.

Engagement with business partners

We conduct onsite surveys of suppliers and certify them as subcontractors when conditions are met. We issue an annual questionaire on preservation of the environment, and an onsite information security and safety audit every two years for about 300 subcontractors, recommend corrective action as needed to business partners, and confirm that corrective action has been taken. In addition, we provide our subcontractors with training on air conditioning basics and adjustment techniques with the aim of improving their productivity and profitability, which in turn will lead to the correction or elimination of issues related to the safety, health, working conditions, and human rights of business partners’ workers. In factory purchasing, we provide guidance when quality is non-conforming or when the results of audit of the management system for chemical substances in products indicate that improvements are necessary.

Encouraging business partners

We select and visit five or six of Azbil's major business partners that place a high priority on addressing climate change and discuss the following points on an individual company basis with the aim of reducing environmental impact and particularly CO2 emissions.
- Setting of CO2 emission reduction targets and consideration of specific measures.
- Recommendation to acquire ISO14001 certification.
In order to ensure appropriate working conditions for business partners, we monitored 300 subcontractors and recommended that 63 of them that did not have a 36 Agreement2 or work rules in place conclude or establish a 36 Agreement to eliminate the risk of long working hours and overwork. As a result, 54 companies signed a 36 Agreement and established work rules.
Capacity building for subcontractors
We convene a Health and Safety Council meeting with subcontractors once a month. In this meeting we share best practices with subcontractors, report on safety patrols, and conduct safety awareness and education activities.
Azbil has notified its major business partners of the azbil Group policy on reform of working conditions.
To prevent human rights violations in the supply chain, we check for the following 8 items at our business partners. If there are any problems, we require partners to correct them.

Child labor, forced labor, overwork, wage payment problems, foreign workers’ rights, discrimination, health & safety management, freedom of association & collective bargaining

Participation in supply chain initiatives

Azbil joined the United Nations Global Compact in April 2021, and at the same time joined Global Compact Network Japan, a local network. Two employees serve on its Supply Chain Subcommittee. We proactively gather case studies and other information from leading companies at subcommittee meetings and use the knowledge of participating companies to implement CSR promotion activities for the environment and society, as well as to applying it to our own activities.
We also participate in the Material Procurement Committee of the Japan Electric Measuring Instruments Manufacturers’ Association (JEMIMA), which meets every two months to share and address various procurement-related issues. Azbil served as committee chair in 2018.

1. Specifically, we check environmental management philosophy and environmental policy, ISO14001 certification, training for employees, and establishment of an environmental management system.

2. An agreement between the employee and the company for work in excess of legal working hours (8 hours/day, 40 hours/week).