GLOBAL SUZUKI

Robust supply chain

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 coexistence and mutual prosperity with suppliers.

Based on Suzuki Supplier Sustainability Guidelines 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, to contribute to the realization of a sustainable society.

Suzuki Supplier Sustainability Guidelines

Since 2016, when Suzuki published the first edition of the Guidelines, “Suzuki CSR Guidelines for Suppliers,” people’s awareness of human rights and environmental issues has been growing. As a result, companies have become required to realize sustainable management that balances the resolution of social issues through business activities with corporate growth from a long-term perspective.
Considering these changes, Suzuki has compiled a new “Suzuki Supplier Sustainability Guidelines” in November 2025 as a tool for sharing sustainability-related expectations and standards with our suppliers and forming a common understanding to strengthen sustainability initiatives and promote “responsible sourcing” in the supply chain.

These guidelines set forth the following six categories of requirements that we expect our suppliers to comply with, and we hope that these will spread throughout the supply chain.

  • (i) Safety and Quality
  • (ii) Human Rights and Labor
  • (iii) Environment
  • (iv) Responsible Sourcing of Raw Materials and Minerals
  • (v) Compliance
  • (vi) Establishment of Governance Structure

Suzuki will promote the implementation of these guidelines in cooperation and collaboration with suppliers to enhance corporate value and achieve sustainable mutual development.
https://www.globalsuzuki.com/corporate/environmental/green_policy/pdf/sssg.pdf

Efforts to Maintain the Effectiveness of the Guidelines

  • (1) In the basic principles of our purchase agreement that we conclude with our suppliers, 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. Regarding 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 suppliers 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 using 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 Guidelines

Please refer to " Conservation of biodiversity" for our initiatives for promotion of green procurement.

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

Declaration of Partnership Building

Suzuki has established the Declaration of Partnership Building to build new partnerships with its suppliers. We will comply with transaction practices (Promotion Standards based on the Act on Promotion of Entrusted Small and Medium-sized Enterprises) that are preferable with Small and Medium-sized suppliers and will work to cooperate with supply chain suppliers and business operators working to create value while promoting co-existence and mutual prosperity.
This Declaration of Partnership Building is posted on the Partnership Building Declaration Portal.
Based on this Declaration of Partnership Building, Suzuki is:

  • Strengthening cooperative relationships with our suppliers, 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 SME Transactions Act and the Promotion Standards of the Act on Promotion of Entrusted Small and Medium-sized Enterprises.
  • Working to increase opportunities for information exchange with our suppliers 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.

Suzuki’s Declaration of Partnership Building
https://www.biz-partnership.jp/declaration/124243-05-23-shizuoka.pdf
* The linked page is available in Japanese only.

Partnership Building Declaration Portal Site
https://www.biz-partnership.jp/
* The linked page is available in Japanese only.

Promotion Structure

Building stronger partnerships of reliability with suppliers advances stable and sustainable procurement, and for that reason, Procurement Strategy chooses suppliers and engages in procurement activities based on rules and procurement policies. Corporate Planning, Legal Certification, and Procurement Among these, for issues such as respect for human rights in the supply chain and preventing environmental destruction, associated divisions such as Corporate Planning, Regulations and Certification, and Procurement divisions 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 suppliers 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

Suzuki has formulated a business continuity plan (BCP) to ensure business continuity and prompt recovery.
We regard the preparation for earthquakes, tsunami and other wide-scale disasters as part of our responsibility to the local community, suppliers, and customers. We recommend disaster measures such as seismic reinforcement to our suppliers located in areas that are likely to experience heavy damage. We are tackling such initiatives together with our suppliers 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 human rights violations such as child labor and forced labor, as well as environmental destruction, 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 progressively, and if the Suzuki Group finds a problem, it will take the necessary steps to improve it.
In the activities above, the Suzuki Group will cooperate with its customers, suppliers, industrial associations, and other stakeholders, and strive to disclose information.

To achieve sustainable procurement, Suzuki will give the utmost consideration to any adverse impacts on human rights and the environment related to business activities and will strive to conduct due diligence activities such as identifying, preventing, and reducing risks.

Specifically, we analyze the risks associated with raw materials used in our products by investigating practices at suppliers, monitoring regulatory trends, and collaborating with external stakeholders. Based on the results, we work to reduce and improve risks through dialogue with suppliers.

Main target risks for minerals and raw materials

  • Child labor
  • Forced labor
  • Impact on indigenous peoples and local communities
  • Environmental impact (GHG emissions, pollution, etc.)

Measures

  • Conduct due diligence on battery materials (cobalt, lithium, nickel, and natural graphite) in compliance with the EU Battery Regulation (EUBR)
  • Conduct due diligence in accordance with the Corporate Sustainability Due Diligence Directive (CSDDD)
  • Conduct an annual survey regarding conflict minerals (such as tin, tantalum, tungsten, and gold) using questionnaires provided by the Responsible Mineral Initiative (RMI), such as the Conflict Minerals Reporting Template (CMRT) and the Extended Minerals Reporting Template (EMRT).

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 Automotive 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 our new and existing suppliers to submit the Self-Assessment Sheet jointly developed by the Japan Automobile Manufacturers Association and the Japan Auto Parts Industries Association. This is a standard tool for understanding the status of managing substances of concern to our suppliers.

We also ask new suppliers to make improvements if we find any issues based on their responses to the Self-Assessment Sheet for selecting suppliers. We ask existing suppliers to implement a yearly self-check and submit the results when requested by Suzuki.

If we deem them to be not meeting the standards based on their responses, or for suppliers who could be in violation of the Suzuki Green Procurement Guidelines, 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.

Measures against violation of laws and regulations

If a violation of laws and regulations that is expected to affect Suzuki or society occurs in the business activities of our suppliers, 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

Automotive parts are composed of many components, and in order to identify the substances of concern contained in them, it is essential to have a system in place to communicate such information throughout the supply chain.

Suzuki manages the substances of concern using the “IMDS,” which is a system for communicating information. However, since our suppliers are required to enter accurate data, we regularly hold online briefings to explain how to enter data and share information on trends for regulated substances.

For example, when flame retardants and plasticizers contained in parts are regulated, the process of substituting them with alternative substances is expected to impact development schedules. Therefore, it is increasingly important to communicate with our suppliers before the regulations take effect.

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 “Suzuki Supplier Sustainability Guidelines,” 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 SME Transactions Act and the Antimonopoly Act and to promote fair transactions with our suppliers, we launched e-learning programs in FY2023 not only for the procurement employees but also for all ones involved in payments. Furthermore, in conjunction with the January 2026 amendment to the Subcontract Act, we conducted e-learning for all employees in the indirect departments to ensure full compliance with the SME Transactions Act. The participation rate reached 100 percent.

Reaching agreement with suppliers on respect for human rights

The Suzuki Group is gradually concluding memoranda of understanding with its suppliers to add agreement terms regarding respect for human rights to basic purchasing contracts concluded by all Group companies, including domestic and overseas subsidiaries. These memoranda include key items that comply with the fundamental conventions of the International Labor Organization (ILO) and the United Nations Guiding Principles on Business and Human Rights, such as the prohibition of child labor and forced labor, the elimination of discrimination and harassment in employment, ensuring fair working hours and wages, the freedom to form labor unions, and the creation of safe and healthy workplace environments. Going forward, each Group company will complete the conclusion of these memoranda, primarily through its procurement division, and will further strengthen human rights due diligence throughout the supply chain via regular monitoring and reporting, and discussions on corrective measures as necessary, to establish a sustainable system for respecting human rights.

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 Suzuki Supplier Sustainability Guidelines on the information sharing system joining suppliers and they are easily accessible to our system.

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 appropriate transactions, 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.