Basic Policies

Basic Policies
Identifying Critical Suppliers
Implementation Structures
Sustainable Procurement Codes

Promoting sustainability efforts in the supply chain

Living up to the OMRON Principles, we at the OMRON Group are committed to solving social issues through business, while also contributing to the sustainable development of society by promoting ESG (Environmental, Social, and Governance) activities. In response to growing social demand, we are also working to enhance sustainable procurement. The executive officer in charge of company-wide purchasing has been designated as the person in charge of promotion, and strengthening of supply chain initiatives.

Basic Policies

To achieve sustainable procurement, we pursue activities in two stages: Initiatives with all suppliers and initiatives with critical suppliers.

With all suppliers, aiming to achieve stable procurement, we ask them to comply with OMRON Group Sustainable Procurement Guidelines that include purchasing policies covering human rights, environment, compliance among others. By defining minimum requirements across five management categories - environment, chemical substance, quality, contract, and financial management – we are working together to make improvements to meet all of these requirements.

In addition, internal rules stipulate that if minimum requirements are not met for two consecutive years, the company will consider switching suppliers, and if necessary ESG improvements are not implemented within a certain timeframe, the company will consider whether or not to continue transactions, etc. to ensure that those improvements are implemented.

With critical suppliers, we are committed to continuously making progresses by confirming RBA compliance policies with top levels at each organization, setting mutual targets to meet RBA requirements.

We will keep working to strengthen business relationships with our critical suppliers over the medium and long term, increasing purchasing ratios from them to strengthen sustainability in our supply chain more effectively.

Targets

Initiatives with all suppliers

We define minimum requirements under the following five categories, asking all suppliers to comply with the requirements, working together to satisfy all:

Environmental management
Acquire ISO14001 certification or establish an equivalent management structure.
Chemical substance management
Confirm the presence of a management structure that meets standards based on examination of documents related to Management of Chemical Substances in Products or as a result of on-site audit
Quality management
Acquire ISO9001 certification or establish an equivalent management structure
Contract management
Execution of a basic purchasing agreement including compliance with Sustainable Procurement Guidelines
Financial management
Determine no risk of bankruptcy as a result of a financial assessment or credit review analysis

Initiatives with critical suppliers

In addition to meeting the minimum requirements above, we establish shared goals for RBA requirements, continuing to make improvements every year to achieve steady improvement.

Identifying Critical Suppliers

Basic Policies
Identifying Critical Suppliers
Implementation Structures
Sustainable Procurement Codes

When selecting suppliers, we consider not only financial aspects but also ESG (Environmental, Social and Governance) aspects as part of the "Minimum Supplier Certification Criteria." Specifically, we conduct environmental and quality assessments and include "adherence to sustainable procurement guidelines" in our basic purchasing contracts, in addition to the financial evaluation. These criteria are applied to all new and existing suppliers.
In the selection of critical suppliers, geopolitical and business-specific risks are taken into consideration as well as the transaction volume and the importance and replaceability of procured parts and materials. Consistency with our business strategy and technology roadmap and QCDEST are included in selection requirements as well.
Moreover, agreement with RBA-compliant sustainability initiatives and passing quality audits are mandatory requirements.

Within the OMRON Group, we have established a network between the HQ procurement departments, overseas HQs, business units, and manufacturing facilities, led by an executive officer overseeing the purchasing function for the entire company. We share and implement the group's purchasing policies and strategies through regular meetings such as the Purchasing Managers' Meeting.

Sustainable Procurement Codes

Basic Policies
Identifying Critical Suppliers
Implementation Structures
Sustainable Procurement Codes

To ensure supply chain sustainability, we have introduced specific action guidelines to be followed by in-house and suppliers, and promotes the observance of these guidelines.

Sustainable Procurement Guidelines

When we sign basic purchase transaction contracts with suppliers, we ask all suppliers to comply with the guidelines that stipulate specific actions and behaviors suppliers are to take and comply with.

The Supplier Code of Conduct set forth in the Sustainable Procurement Guidelines conforms to RBA standards. When the RBA standards are revised, the content is revised and purchasing activities are also reviewed. We have also established and implemented a policies and procedures, such as reviewing transactions, for responding to serious incidents of noncompliance (including environmental, social, and economic aspects). In addition, we state in the preamble to the Guidelines and in the management structure section of the Code of Conduct that the content of the guidelines should be extended from primary suppliers to secondary suppliers.

Sustainable Procurement Guidelines

Supplier Code of Conduct

A. LABOR: 1) Prohibition of Forced Labor　2) Young Workers　3) Working Hours　4) Wages and Benefits　5) Non-Discrimination /Non-Harassment /Humane Treatment　6) Freedom of Association and Collective Bargaining
B. HEALTH and SAFETY: 1) Occupational Health and Safety　2) Emergency Preparedness　3) Occupational Injury and Illness　4) Industrial Hygiene　5) Physically Demanding Work　6) Machine Safeguarding　7) Sanitation, Food, and Housing　8) Health and Safety Communication
C. ENVIRONMENTAL: 1) Environmental Permits and Reporting　2) Pollution Prevention and Resource Reduction　3) Hazardous Substances　4) Solid Waste　5) Air Emissions　6) Materials Restrictions　7) Water Management　8) Energy Consumption and Greenhouse Gas Emissions
D. ETHICS: 1) Business Integrity　2) No Improper Advantage　3) Disclosure of Information　4) Intellectual Property　5) Fair Business, Advertising and Competition　6) Protection of Identity and Non-Retaliation　7) Responsible Sourcing of Minerals　8) Privacy
E. MANAGEMENT SYSTEMS: 1) Company Commitment　2) Management Accountability and Responsibility　3) Legal and Customer Requirements　4) Risk Assessment and Risk Management　5) Improvement Objectives　6) Training　7) Communication　8) Worker/Stakeholder Engagement and Access To Remedy　9) Audits and Assessments　10) Corrective Action Process　11) Documentation and Records　12) Supplier Responsibility
F. OTHERS: 1) Securing product safety　2) Business Continuity Plan　3) Protection against information leaks　4) Prevention of network security threats　5) Export control management　6) Prohibition of providing improper benefits to antisocial forces (organized crime groups)　7) Employee health management system (EHMS)

For details, see:

OMRON Group Sustainable Procurement Guideline: Japanese English Chinese Portuguese Spanish French
* The Supplier Code of Conduct was revised in July 2024 to reflect the contents of the RBA Code of Conduct V.8.
OMRON Group Modern Slavery Act Statement for FY2024: Japanese English

In addition, OMRON has established a Group Biodiversity Policy, and is committed to implementing it across various aspects of its business activities throughout the entire value chain.

Biodiversity Initiatives

Basic Policies and Implementation Structure