Responsible Sourcing
Takasago values sustainability in its business activities. It is essential that we source the raw materials used by our business units in a responsible way and in alignment with the need and aspirations of customers and society. We use approximately 14,000 different raw materials sourced from more than 1,000 suppliers all over the world. Of these, about 5,000 raw materials are natural ingredients derived from natural sources such as fruits, vegetables, plant roots, leaves and flowers. The other 9,000 raw materials are aroma ingredients produced using sophisticated chemical technologies. Some of them are derived from natural gas or naphtha while others are derived from natural sources such as pine trees. They can provide a unique sensory profile that does not exist in nature, and can be alternatives to precious ingredients derived from animals such as musk, ambergris, etc. To punctually supply appropriately priced high-quality raw materials to our facilities around the world, our global procurement team communicates through our global network to enhance our procurement activities.
In June 2017, Takasago signed the UN Global Compact (UNGC) and we continue our efforts to align with the UN Global Compact’s Ten Principles in the areas of human rights, labor, the environment and anti-corruption. We are also striving to achieve procurement that is as sustainable as possible while also focusing on compliance with the laws in each country, respect for human rights, environmental conservation, fair business practices and involvement and development in local communities.
In order to build fair and trusting relationships with worldwide business partners to enable responsible sourcing, we have established the Corporate Procurement Policy, the Corporate Procurement Guidelines, the Takasago Group Supplier Code of Conduct, and the Takasago Responsible Sourcing Policy.
Corporate Procurement Policy
Takasago is working towards improving its responsible procurement of raw materials and services for sustainable economic growth and the mitigation of social issues. As part of these activities, we revised our corporate procurement policy in 2020 to clarify the scope of responsible procurement.
Corporate Procurement Guidelines
The Corporate Procurement Guidelines embody the Corporate Procurement Policy. The Guidelines cover fundamental subjects such as compliance, fair trade, anticorruption, human rights and environmental protection that must be aligned with the concept of responsible sourcing. In 2021, the headquarters procurement working group updated the Guidelines to align them with changing world trends including the increased importance of sustainability.
The Takasago Group Supplier Code of Conduct
To ensure that we maintain the high level of trust that society has in us, we respect and value our business partners who are focused on environmental and social responsibility. We established The Takasago Group Supplier Code of Conduct to encourage our business partners to understand our policies and expectations. As stated previously, we revised The Takasago Group Supplier Code of Conduct to clearly state the things that we hope to share with our business partners. This was followed by our Responsible Sourcing Policy which states our ambitions, objectives, and commitment to responsible sourcing. The Takasago Responsible Sourcing Policy has been verified and recognized by Ecocert Expert Consulting (ECOCERT Group) as being in line with the global standards such as the practices of ISO 26000 and the Sedex Members Ethical Trade Audit (SMETA) principles.*
To ensure its implementation, Global Procurement Training includes sessions on Corporate Procurement Guidelines as well as other basic corporate policies.
* An auditing methodology providing a compilation of best practices for ethical auditing techniques
Click here to see Takasago Group Supplier Code of Conduct
Click here to see Takasago Responsible Sourcing Policy
Procurement Management Promotion Organization
We have defined our Corporate Procurement Policy which clearly states our basic understanding and requirements for procurement activities in accordance with our corporate vision and mission. Also, to ensure the appropriateness of business procedures in accordance with the Corporate Procurement Policy, we have established our Corporate Procurement Guidelines. In addition to this policy and these guidelines, to promote sustainable procurement activities that take into consideration human rights, labor, health and safety and the environment, we have established the Takasago Responsible Sourcing Policy that is aligned with the ISO 26000 standard as well as the SMETA principles and supports the UN’s 17 Sustainable Development Goals. Our Sustainability Promoting Committee, business divisions, other related divisions and overseas affiliates communicate to ensure that all employees are aware of and thoroughly adhere to these policies.
Teamwork is one of things most valued by Takasago, alongside technology and trust. This is particularly the case in procurement. We created the Global Procurement Team which includes delegates from 11 global production sites to align with the concept described in the Corporate Procurement Policy and to optimize operational processes. We schedule an annual meeting at the headquarters, various workshops, regional meetings, on-site visits, and training via a matrix-like structure by region, global ingredient category management, and other global strategic corporate initiatives. To adapt to the COVID-19 pandemic, we have been conducting regular and extraordinary online meetings as well.
The Role of Procurement in the Future
Takasago Global Procurement ensures the timely supply of quality raw materials while ensuring security, safety and economic appropriateness in order to effectively operate our global production sites around the world. To achieve this mission, it is crucial for us to fairly and reliably develop and maintain business partnerships for the long term, for the procurement of raw materials and also other services. We believe we should share values such as respect for the global environment with our partners, including every upstream stakeholder in our supply chains, to ensure that we are a well-regarded and trustworthy company.
As we all are aware, our global challenges, which vary from environmental concerns such as the exhaustion of resources and global warming to social issues including workplace accidents or human-rights issues, are increasing, and becoming more serious. These require that companies take agile actions in responsible sourcing to ensure their sustainable procurement is based on strong and reciprocal relationships with partners through transparent transactions.
Toward a brighter future society, we will design an innovative supply chain model in which every stakeholder shares values such as coexistence, co-prosperity and kyousei (共存、共栄、共生) to realize an environment of empathy, sympathy and collaboration (共感、共鳴、共働).