• Sustainability
• Social

• Establishing a Robust Supply Chain

• Product Quality and Safety
• Reduction in Traffic Accidents
• Sustainable Local Community
• Respect for Human Rights
• Nurturing of Human Capital
• Diversity of Human Capital
• Occupational Health and Safety
• Stable Labor-Management Relations
• Establishing a Robust Supply Chain

Establishing a Robust Supply Chain

• Procurement Philosophy and Policy

• Promotion Structure

• Promoting Sustainable Transactions

• Communication with Suppliers

• Awareness Activities for Employees and Suppliers Regarding Human Rights and Environmental Issues in the Supply Chain

• Participation in Outside Associations, etc.

Suzuki believes that its role is to cooperate on an equal footing with suppliers, and to build a relationship where all can prosper together to “Develop products of superior value by focusing on the customer,” which is the first item in our Mission Statement. Those business partners are selected through a fair and equitable procedure based on the six principles of quality, cost, delivery deadline, technical development capabilities, risk management, and past track record as well as efforts to fulfill corporate social responsibilities such as environmental and human rights.

Procurement Philosophy and Policy

We strive to conduct fair and equitable transactions by providing a wide range of opportunities for entry regardless of company size, transaction record, nationality or region, and are committed to procurement activities in line with our philosophy and principles, aiming for co-existence and shared prosperity with suppliers.

Based on the Suzuki CSR Guidelines for Suppliers and Declaration of Partnership Building, Suzuki will proactively promote in its supply chain respect for human rights, elimination of substances of concern and appropriate transactions, in order to contribute to the realization of a sustainable society.

Suzuki CSR Guidelines for Suppliers

Stakeholders including business partners of Suzuki are becoming more multinational and diversified as our business activities are developed globally. Therefore, we are expected to fulfill social responsibilities with due consideration for other cultures and histories, in addition to following laws and ordinances, and the social norms of each country. Based on such social demand, we compiled the basic concept and practices of social responsibilities that we should accomplish with our business partners as Suzuki CSR Guidelines for Suppliers. Upon making procurement throughout the Suzuki Group, we ask our business partners to comply with the guidelines. We kindly request our business partners to understand the purpose and cooperate with us to promote CSR activities together.

https://www.globalsuzuki.com/corporate/environmental/green_policy/

Efforts to maintain workable guidelines

• (1) In the basic principles of the Basic Purchase Agreement that we conclude with our business partners, we state clearly that “both we and our suppliers shall recognize our social responsibilities in civic society and comply with relevant laws and regulations, both in Japan and overseas,” and strive to conform to social norms.
• (2) Once a year the Procurement Policy Presentation is held for Suzuki suppliers and we ask them to strengthen their response to human rights in the supply chain (improving benefits for foreign nationals, inspecting the supply chain to check on whether they are using minerals related to human rights, etc.), realizing carbon neutrality, avoiding use of substances of concern, etc., and for thorough compliance. With regard to human rights in particular, we hold separate training for suppliers and those in charge of procurement and strive to promote understanding by sharing the latest information.
• (3) Efforts are made in understanding the environmental conservation initiatives of our business partners by conducting research on greenhouse gas CO₂ emissions and water consumption once a year.
• (4) In the case of any compliance issues or doubts regarding transactions with Group companies, we work to resolve them through the use of our whistleblowing hotlines (Suzuki Group Risk Management Hotline and those run by third-party organizations) for consultations.
• (5) Quality audits are held periodically (frequency based on rank in quality) under the Supplier Quality Assurance Manual that compiles Suzuki’s basic policy, activities and requests for quality assurance.

Suzuki Green Procurement Guideline

Please refer to "Chemical Substances" for our initiatives for promotion of green procurement.

Note: Suzuki Green Procurement Guideline
https://www.globalsuzuki.com/corporate/environmental/green_policy/

Declaration of Partnership Building

• Strengthening cooperative relationships with our business partners, whom we regard as important counterparts, to create new value in diverse areas such as development, manufacturing, quality, and strengthening price competitiveness.
• Working to improve our transaction practices in compliance with the Subcontract Act and the Promotion Standards of the Act on the Promotion of Subcontracting Small and Medium-sized Enterprises.
• Working to increase opportunities for information exchange with our business partners to learn about product (and parts) delivery problems, financing concerns, and other issues, and take sincere measures to resolve them promptly.

Through these measures, we will work to raise added value on the entire supply chain.

Promotion Structure

Building stronger partnerships of reliability with suppliers advances stable and sustainable procurement, and for that reason, the Procurement Strategy Vertical chooses suppliers and engages in procurement activities based on rules and procurement policies. Among those, for issues such as respect for human rights in the supply chain and preventing environmental destruction, associated departments such as the Sustainability Promotion Group, Product Environmental Affairs Promotion Group and Procurement Strategy Vertical and overseas sites collaborate closely and share information, which is used as a base to respond. These activities are periodically reported to the Executive Committee and important projects are submitted to the Board of Directors for decision-making.

Promoting Sustainable Transactions

Sustainable relationships

In creating trusting relationships with our suppliers, we aim to establish sustainable relationships. For that purpose, we regard mutual communication as the most important factor, and make efforts for mutual understanding by holding the Procurement Policy Presentation once a year to enable our suppliers to share and understand Suzuki’s policy, product and production plans, as well as to inform them of our procurement policy based on those plans.

Also, we share ideas not only between top and middle management, but also among management and individuals responsible for daily business operations.

Global procurement

We will accelerate global procurement activities by working with worldwide production sites. Previously, procurement activities were carried out mainly at individual production sites, but we have shifted to an approach with a greater global basis to obtain the most suitable parts at competitive prices. That benefits not only Suzuki, but also our business partners who can stably receive orders and accumulate various technologies. By sharing those merits, we can build relationships with even greater trust.

Business continuity plan efforts

In addition to seismic reinforcement of individual office buildings, we have produced a business continuity plan (BCP). We regard the preparation for earthquakes, tsunami and other wide-scale disasters as part of our responsibility to the local community, business partners, and customers. We recommend disaster measures such as seismic reinforcement to our partners located in areas that are likely to experience heavy damage. We are tackling such initiatives together with our business partners for their early recovery if they should fall victim to such a disaster.

Sustainable procurement

Based on the recognition that earning the trust of society is essential for the sustainable growth and development of the Suzuki Group, we aim not only to comply with laws, regulations, and internal rules, but also to conduct activities based on high ethical standards. In the supply chain, we will promote compliance with laws and regulations, respect for human rights, and environmental conservation, and promote procurement activities that take corporate social responsibility into consideration.

Responsible raw materials and mineral sourcing of Suzuki Group

The Suzuki Group recognizes that mining of minerals (tin, tantalum, tungsten, gold, cobalt, lithium, nickel, natural graphite, etc.) in conflict-affected or high-risk areas may cause social problems of human rights violations such as child labor and forced labor, as well as environmental destructions and aims to avoid the use of minerals and raw materials that cause these problems when there is concern.
In addition, in conducting a survey of the supply chain of these minerals, the Suzuki Group refers to the "OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas" stipulated by the Organization for Economic Co-operation and Development (OECD) and uses a questionnaire provided by the Responsible Mineral Initiative (RMI). The Suzuki Group uses “Conflict Minerals Reporting Template (CMRT)” and “Extended Minerals Reporting Template (EMRT)” to conduct due diligence continuously, and if the Suzuki Group finds a problem, we will take the necessary steps to improve it.
In the above activities, the Suzuki Group will cooperate with our customers, suppliers, industrial associations, and other stakeholders and strive to disclose information.

Activities to support suppliers

We hold regular information exchange meetings with our local cooperating suppliers to share production plan forecasts and requests to reduce the impact on management caused by fluctuations in production volume. In addition, we conduct workshops on technical issues in collaboration with the Hamamatsu Agency for Innovation’s Next-generation Vehicle Center Hamamatsu with the aim of strengthening the competitiveness of the supply chain.

Request for cooperation in continuously reducing risk

To continuously undertake transactions with our suppliers and deepen mutual understanding with them in implementing green procurement, Suzuki requires both new and existing our suppliers to submit the SOC Control System Self-Check Sheet (a survey form on the status of establishing a management system for substances of concern).

We also ask new business partners to make improvements if we find any issues based on their responses on the check sheet for selecting suppliers. We ask existing suppliers to implement a yearly self-check and submit the results when requested by Suzuki. For suppliers we deem to be not meeting the standards based on their responses, as well as those who could be in violation of the Suzuki Green Procurement Policy, Suzuki performs audits on the status of establishing management systems for substances of concern. If any items are found, Suzuki requests that they take corrective or preventative measures to reduce the risk.

Note: Audits of business partners are systematically implemented regardless of whether there are any problems.

Measures against violation of laws and regulations

If a violation of laws and regulations occurs in the business activities of our suppliers that is expected to affect Suzuki or society, we request an immediate report to Suzuki, an investigation into the cause, and a report on the investigation results. In addition, we also request they submit measures to prevent recurrence.

Communication with Suppliers

Communication and briefing sessions with suppliers

In managing substances of concern for automobiles consisting of many parts, it is important to communicate information on chemical substances in products and regulated substances throughout the supply chain.

Suzuki regularly holds online briefings for its suppliers on how to enter information on chemical substances into IMDS (International Material Data System), a tool for communicating such information, and on global trends for substance regulations.

The accurate entry of data into IMDS is necessary to check for the presence of regulated substances. In addition, when flame retardants and plasticizers contained in parts are regulated, it is important to communicate information on regulations before they take effect because it takes time to conduct development tests to substitute alternative substances.

Please refer to Chemical Substances for details on IMDS.

Awareness Activities for Employees and Suppliers Regarding Human Rights and Environmental Issues in the Supply Chain

Each year, the Executive General Manager of Procurement Strategy Vertical holds a briefing on procurement policy in the Procurement Policy Presentation for suppliers. During the briefing, suppliers are asked to understand the importance of human rights and environmental issues based on the Suzuki CSR Guidelines for Suppliers, and are requested to disseminate the guidelines through their own companies’ supply chains.

In addition, for managers in charge of procurement and suppliers we also hold workshops mainly related to foreign technical intern trainees and responsible procurement of conflict minerals and battery materials, and strive to raise awareness of human rights due diligence.

In addition, to ensure compliance with the Subcontract Act and the Antimonopoly Act and to promote fair transactions with our suppliers, we launched e-learning programs in fiscal 2023 not only for the procurement department but also for all employees involved in payments. The total number of participants within the Company exceeded 4,000.

Establishment of whistleblowing and consultation system

We have established a whistleblowing and consultation system that is available not only to employees and Group companies, but also to suppliers to obtain information on violations of laws or regulations in the supply chain, and to take corrective measures when problems are discovered. This whistleblowing and consultation system is posted together with the Suzuki CSR Guidelines for Suppliers on the information sharing system joining suppliers and Suzuki, and can be easily accessible for our suppliers.

Participation in Outside Associations, etc.

As a member of the Japan Automobile Manufacturers Association, Suzuki joins other manufacturers to take part in meetings such as the Supply Chain Committee to discuss issues such as strengthening supply chain infrastructure and improving competitiveness in the automobile industry. Currently, the participating companies are addressing issues such as trade optimization, achieving carbon neutrality, and human rights due diligence, and these policies are reflected in Suzuki’s business activities.

Suzuki, with its procurement policies and measures related to them, is working from the standpoint of being a member of the Japan Automobile Manufacturers Association for the development of the industry, and in turn the resolution of social issues.