Initiatives

Initiatives
Communication with Suppliers
Implementing Sustainable Procurement Guidelines
Initiatives to Reduce Environmental Impact
Responsible Mineral Procurement Activities
Procurement BCP
Initiatives with On-Site Contractors

By implementing the PDCA improvement management cycle together with suppliers, we at the OMRON Group are committed to enhancing sustainability performance in its supply chain.
We also ask critical suppliers to join the Group in efforts to conform to the RBA Code of Conduct. (RBA: Responsible Business Alliance)

Main activities	Details of activities	Management standards	FY2024
Self-assessment	The OMRON Group and a supplier together check the supplier's compliance with CSR Procurement Guidelines, having the supplier make improvements if necessary	Survey at least once every 3 years targeting all suppliers	Target: 389 suppliers Result: 341 suppliers
Human rights due diligence	Identify risks in the value chain, conduct specific assessments to confirm the existence of identified risks, take corrective measures to prevent risks, and implement remedial measures for risks that have occurred	Conduct detailed human rights surveys at least once every three years for suppliers with production sites in countries with a high risk of human rights violations, as defined based on the risk analysis results.	Conducted comprehensive human rights self-assessments for suppliers with production sites in China and Malaysia, which are assumingly at a high risk of human rights violations. Result: [China] 151 suppliers [Malaysia] 3 suppliers
Assessment based on third-party standards	Third-party organization's audit of a supplier's compliance with RBA^*1 Code of Conduct, having the supplier make improvements if necessary	Conduct RBA Corporate Level SAQ^*2 surveys for critical suppliers of commercial products once per year	Result: 60 critical suppliers of commercial products
Assessment based on third-party standards		Conduct RBA Facility Risk SAQ surveys for critical suppliers of processed products once every 3 years	Result: 12 critical suppliers of processed products, 20 sites
Procurement BCP	Thorough management of the latest information on sources of all parts	Survey newly procured parts from all suppliers and renew data once every year	Result: Completed survey of newly procured parts
Procurement BCP	Minimizing procurement risk for individual parts toward the goal of restoring procurement of all parts within a month in case of an emergency.		Result: Completed survey of newly procured parts
Green procurement	To help reduce negative environmental impact across the supply chain by avoiding the use of hazardous substances, the OMRON Group assesses a supplier's implementation of environmental management and regulated chemicals management and certifies as a green supplier based on its criteria	Renew certification once every 3 years, targeting all suppliers	Result: 84 suppliers
Responsible minerals procurement	Survey of materials containing 3TG (tantalum, tin, tungsten and gold) and identifying smelters. Should the use of conflict minerals, financial sources of armed militant groups be found, corrective action will be taken immediately Survey of materials containing cobalt to promote procurement in a manner not to drive environmental destruction and human rights violation.	Survey once a year	Survey targets: 258 suppliers Survey response: 249 suppliers (97% response) Identified smelters: Accumulated total of 339 smelters, 3TG in total RMI^*3 certified smelter rate (conformant/active): 63%
Financial evaluation	Evaluating a supplier's financial standing to ensure continuous and stable transactions with the supplier. Mutual deliberation and implementation of improvement measures as necessary	At least once per year	Result: 208 suppliers

*1RBA: Responsible Business Alliance
*2SAQ: Self-Assessment Questionnaire
*3RMI: Responsible Minerals Initiative

Communication with Suppliers

Initiatives
Communication with Suppliers
Implementing Sustainable Procurement Guidelines
Initiatives to Reduce Environmental Impact
Responsible Mineral Procurement Activities
Procurement BCP
Initiatives with On-Site Contractors

In asking critical suppliers to answer RBA compliant self-check, we at the OMRON Group offer them learning opportunities, such as opinion exchanges and meetings aiming to make improvements to achieve goals. Especially, with regard to processed product suppliers, we visit their sites as necessary and hold meetings while being updated on their onsite status.

Providing learning opportunities for suppliers

To promote understanding of sustainable procurement amongst our suppliers, we have created training materials and promote e-learning courses.

Achievements

In fiscal 2024, we conducted online e-learning training for all our suppliers, and we plan to do so again in fiscal 2025.

Implementing Sustainable Procurement Guidelines

Initiatives
Communication with Suppliers
Implementing Sustainable Procurement Guidelines
Initiatives to Reduce Environmental Impact
Responsible Mineral Procurement Activities
Procurement BCP
Initiatives with On-Site Contractors

Self-assessment

In addition to requesting that suppliers conform to OMRON Group Sustainable Procurement Guidelines, we at the Group also conduct questionnaire surveys, distributing self-assessment sheets to all suppliers and asking them to check their implementation and compliance regarding the guidelines on their own initiative at least once every three years, so as to improve their practices. Our target is to have all suppliers to conduct the assessment.

Achievements

In fiscal 2024, we requested 389 companies to conduct self-assessments, and received responses from 341 suppliers: 64 in Japan, 119 in China, 24 in Asia-Pacific, 70 in the Americas, and 64 in Europe.

Suppliers Subject to Survey

Unit: Number of companies (As of March 31, 2025)

Region		FY2020	FY2021	FY2022	FY2023	FY2024
Plan		19	909	478	637	389
Results		19	603	356	575	341
By Region	Japan	0	81	126	508	64
	Greater China	0	365	74	10	119
	Asia Pacific	19	11	56	4	24
	Americas	0	93	35	19	70
	Europe	0	53	65	34	64
Response rate		100%	66%	75%	90%	88%

Human Rights Due Diligence (HRDD) Initiatives

In recent years, human rights issues have become a major challenge for companies, requiring them to identify risks in the value chain, conduct more specific assessments to confirm the existence of identified risks, take corrective actions to prevent risks from occurring, and implement remedial measures for risks that have occurred. The OMRON Group is strengthening its HRDD initiatives, and based on the results of a risk analysis conducted in fiscal 2022, we have designated suppliers with production bases in China and Malaysia as targets of our initiatives through fiscal 2024.

Achievements

China:
In fiscal year 2024, we conducted detailed human rights self-assessments for 151 suppliers with production sites in China that were not surveyed in fiscal year 2023. These checks identified risks at two suppliers, such as the absence of written employment contracts or on-site first-aid personnel.
For one of these suppliers, our employees visited the site to review the current conditions. We had face-to-face feedback and agreed on an improvement plan, and have completed improvement.
For the other supplier, we have also reached an agreement on their improvement plan, and they are currently taking corrective actions based on the plan.

Malaysia:
For three new suppliers with production bases in Malaysia, we reviewed whether they employ foreign workers from neighboring countries where the risk of human rights violations is considered high. We confirmed that none of these suppliers employ such workers.

Assessment based on Third-party Standards

We ask critical suppliers to conduct annual self-assessments and self-improvement by using RBA SAQ (Responsible Business Alliance Self-Assessment Questionnaire), an RBA evaluation tool.

Targets

[Commercial products]
Conduct assessment annually using RBA Corporate Level SAQ
[Processed products]
Conduct assessment once every three years using RBA Facility Risk SAQ

Achievements

[Commercial products]
In fiscal 2024, 60 critical suppliers conducted assessments.
[Processed products]
In fiscal 2024, 12 critical suppliers conducted assessments, 20 sites in total.

Corrective Actions

For suppliers deemed to have sustainability risks as a result of our surveys/audits, we request them to submit improvement plans and take corrective actions. In creating improvement plans, we provide support to all suppliers by holding meetings in which we introduce case studies from OMRON and other companies. Should there be a critical compliance violation, including violation of environmental, social and governance aspects, we have a policy and procedure in place, including actions to review a contract.

Achievements

In fiscal 2024, we received corrective action plans from 3 suppliers (including two human rights due diligence targets) with identified sustainability risks. These suppliers have made improvements based on their corrective action plans.

Initiatives to Reduce Environmental Impact

Initiatives
Communication with Suppliers
Implementing Sustainable Procurement Guidelines
Initiatives to Reduce Environmental Impact
Responsible Mineral Procurement Activities
Procurement BCP
Initiatives with On-Site Contractors

Engagement Approach

In accordance with the OMRON Principles, we at the OMRON Group strive to help create a sustainable society throughout the world by taking dual approaches. One is to supply products and services that contribute positively to the global environment, and the other is to maximize effective use of all management resources. Moreover, we pursue “Green Procurement” of materials, reduction of greenhouse gas emissions (GHG) in the supply chain and reduced resin molding material waste to contribute to lower environmental impact. Here, we proactively adopt materials that do not contain hazardous chemical substances, pursuing procurement that contributes to reducing environmental impact as well as reducing the amount of resin molding material waste.

Green Procurement

In green procurement, we specified ecology (reduction of environmental impact) and compliance (observance of laws, regulations, and social norms) as key programs that should be promoted across its supply chain. As such, we certify green suppliers from dual perspectives—establishment of an EMS for environmental management and a CMS for management of chemical substances contained in products.

Green Procurement (Criteria and Documents/Forms)

Reduction of GHG emissions

From the perspective of decarbonization, the OMRON Group is working to reduce GHG emissions in accordance with the GHG Protocol, an international standard, and is also seeking cooperation from its suppliers.

Achievements

In fiscal year 2024, we conducted a follow-up survey with 19 suppliers that reported having no GHG emissions reduction targets a year ago. The survey included whether they calculate their own emissions. Through this engagement, 8 companies have now established or are planning to set specific targets, marking a positive step forward in our decarbonization efforts.

To improve the accuracy of our own reporting, we at the OMRON Group are seeking to actively integrate supplier data into our own emissions tracking. From fiscal year 2025, we plan to request that our suppliers provide specific emission figures.

Reducing Resin Molding Waste

We are working with suppliers to reduce the use of fossil fuel-derived resins and eliminate related waste through recycling, looking toward decarbonization and materials conservation.
We reduce the amount of waste resin materials by optimizing mold specifications to reduce materials and by adopting processes to reuse waste materials.

Achievements

In fiscal 2024, in addition to hot runner technology* and mini runner technology to reduce resin runners, we expanded the scope of implementation (areas, products, and suppliers) of recycling technologies and management processes to reuse waste materials for minimizing waste generation. This resulted in the waste reduction of 104 tons.

*System for supplying resin in a molten state from the nozzle of a molding machine to the molded product section (no resin runners are generated)

Responsible Mineral Procurement Activities

Initiatives
Communication with Suppliers
Implementing Sustainable Procurement Guidelines
Initiatives to Reduce Environmental Impact
Responsible Mineral Procurement Activities
Procurement BCP
Initiatives with On-Site Contractors

Policy to Address Conflict Minerals

Since 2013, we at the OMRON Group have been engaged in conflict mineral surveys to contribute to a better society. We have established a policy to refuse mineral resources (3TG) mined in the Democratic Republic of the Congo and nine surrounding countries that have continued to violate human rights and damage the environment.

Policy to address conflict minerals

The OMRON Group declares the non-use of such conflict minerals.
The OMRON Group procures minerals from conflict-free smelters, such as those participating in the Responsible Minerals Initiative (RMI).
Should the use of any conflict minerals in OMRON Group products be discovered, OMRON will take corrective action as quickly as possible.

Framework to address conflict minerals

Since fiscal 2013, the issue of conflict minerals has been specified as one of main themes to be deliberated upon and addressed by the Corporate Ethics and Risk Management Committee, which is in charge of devising and promoting counteraction against the OMRON Group's significant risks. As such, the Committee reports the status of conflict mineral use to the Board of Directors and Executive Council every half year. In fiscal 2013, we set up the Anti-Conflict Minerals Project to formulate an annual action plan based on the review of results of the previous year's activities, managing the progress of plan implementations for each supplier and each parts/material category on a monthly basis.

Survey of Conflict Mineral Use

OMRON uses gold as a material for contacts, and gold and tin as materials for gilding terminals and other parts. 3TG is also used as a material in various electronic components and devices that OMRON purchases. Therefore, we have been conducting surveys by using CMRT (Conflict Minerals Reporting Template), the industry standard developed by RMI (Responsible Minerals Initiatives), tracking upstream supply chain.
This survey is based on OECD guidelines for due diligence in risk survey processes. More specifically, we conducted the following steps:

Step 1:Build a Management System: Based on the OMRON Responsible Minerals Procurement policy, we organize group-wide projects to share and implement necessary surveys. We build and use information systems to track and manage survey results, supporting the creation of responses to our customers.
Step 2:Identify and Evaluate Supply Chain Risks: Every year, we identify parts purchased at our plants requiring a survey, conducting a conflict materials survey with our suppliers using CMRT. Through these surveys, we conduct due diligence on the presence of 3TG, country of origin, smelters, and suppliers. In addition, we identify non-certified smelters based on the latest RMI-certified smelter list.
Step 3:Develop and Implement Strategies to Address the Risks Identified: We seek require suppliers to take corrective action for any non-certified smelters identified in our risk evaluation process. If a customer raises concerns, we confirm the basis of the concern, communicate the customer concern to our supplier, and seek an appropriate response, including a re-examination of the smelter in question by our supplier. At the same time, we educate our suppliers for a better understanding of conflict mineral regulations.
Step 4:Annual Activity Report: We publish an annual report on our website concerning our conflict mineral survey and other OMRON initiatives related to conflict minerals.

Achievements

In fiscal 2024, we at the Group examined materials we purchased over the past two years.

Survey targets: 258 suppliers
Respondents: 249 suppliers (response rate: 97%)
Identified smelters: 339*, all minerals

*Certified smelter rate (conformant/active): 63%

We thoroughly examined the responses, and in any case of missing or inadequate answers, we communicated with such suppliers to improve the reliability of responses.

To date, our surveys have found no use of conflict minerals that fund armed groups. However, we identified 30 suppliers with high-risk smelters in their supply chains. Since these smelters may violate laws and regulations, we have requested their immediate removal. Should the use of any conflict minerals in OMRON Group products be discovered, we will take corrective action as quickly as possible.

Cobalt Procurement

Cobalt is used in lithium-ion batteries that are indispensable for electronic vehicles, mobile phones among other products. The Democratic Republic of Congo is the largest cobalt producer in the world, and there is a concern pointed out about manual mining in the country with poor working conditions and child labor.
We have a basic group policy in its Sustainable Procurement Guidelines that bans any forms of forced and child labor, and promotes cobalt procurement in a manner not to drive environment destruction and human rights violation.
We have been conducting survey for lithium ion secondary batteries, which have come under scrutiny around the world, using the RMI’s EMRT (Extended Minerals Reporting Template).

Achievements

We had no target suppliers in fiscal 2024.

Briefing surveys on conflict minerals use to suppliers

Since fiscal 2015, we have provided one-on-one briefings for suppliers whom we ask for cooperation in the survey for the first time as the OMRON Group.

Partnerships with industry organizations

In April 2011, OMRON joined the Responsible Minerals Trade Working Group organized by the Japan Electronics and Information Technology Industries Association (JEITA), actively collecting information and promoting partnerships with industry organizations. Since fiscal 2015, OMRON participates in the planning and management of conflict mineral investigation conference meeting hosted by the Working Group to promote dissemination of conflict minerals efforts across supply chains of the industry as a whole.

Conference hosted by Responsible Minerals Trade Working Group
(July 4, 2024, Osaka)

Procurement BCP

Initiatives
Communication with Suppliers
Implementing Sustainable Procurement Guidelines
Initiatives to Reduce Environmental Impact
Responsible Mineral Procurement Activities
Procurement BCP
Initiatives with On-Site Contractors

Developing fine-quality products to contribute to society through business is one of the most important social responsibilities of a manufacturer. At the OMRON Group, we believe that it is equally important to provide a stable supply of products, even in the case of a contingency. Based on the awareness that a disaster can happen at any moment, we have been promoting procurement BCP* since fiscal 2011.

Initiatives

We established a system to confirm the impact on our business within 24 hours of a contingency, striving to improve management in these cases. In addition, we manage potential procurement risks for parts and materials by classifying them into three ranks. Efforts are now focused on minimizing procurement risks by taking measures such as keeping certain parts/materials in stock. The goal is to build a system to resume procurement of all parts within a month in the event of a disaster.

In fiscal 2017, we designed and introduced a central inventory control system to manage the stock of highest-risk parts in a unified manner at the Group.
Although the recent spread of COVID-19, natural disasters such as earthquakes and floods, and accidents such as fires have affected many of our suppliers, we have quickly identified risks based on local production area information for components we manage, promptly holding meetings participated by procurement staff from across our company. We also held discussions about, and implemented measures with, our suppliers. In this way, we have prevented significant supply problems to date. For parts facing shorter supply, the head office purchasing department takes the initiative in making advance arrangements and securing inventories in an effort to minimize the impact on business.

*BCP refers to Business Continuity Plan. It is a proactive planning process to ensure that business operations will continue without interruption even in the case of natural disasters or other contingencies. BCP also covers strategic preparation in normal times, with the ability to restore important functions within a target time period even in the event of an interruption so as to minimize interruption-associated risks.

Initiatives with On-Site Contractors

Initiatives
Communication with Suppliers
Implementing Sustainable Procurement Guidelines
Initiatives to Reduce Environmental Impact
Responsible Mineral Procurement Activities
Procurement BCP
Initiatives with On-Site Contractors

We at the OMRON Group believe that there are essential factors to practice the OMRON Principles and realize sustainable supply chain: To eliminate human rights violation risks within the Group, and create a work environment in which everyone can work in a safe and healthy manner both physically and mentally, and demonstrate his/her best performance.

The idea applies not only to employees and temporary workers at the OMRON Group, but also to employees of on-site contractors working at the Group sites. When their employees start working within our sites, we communicate with them about our human rights policy and human rights related initiatives such as access to remedies open to on-site contractors’ employees, which include human rights consultations and compliance hotline programs. Additionally, targeting contractors’ on-site leaders, we offer them human rights training sessions so that they can share the learnings with the rest of their on-site members as well. Contractors are defined in RBA standard as one of the next tier major suppliers, and we at the OMRON Group are furthering our commitment accordingly.

Working Together with Suppliers