Establishment of a Responsible Supply Chain Management System

Smooth communication with business partners

To achieve coexistence and co-prosperity with our business partners and address various social challenges, we hold briefing sessions to explain the annual policies and plans of the SUGI Pharmacy Group to our business partners. By promoting their understanding and cooperation, we expect to receive their support for our business, such as improvement of products and services and streamlining of operations, as well as advancing environmental conservation and other initiatives to realize a sustainable society.

Recently held briefing sessions to explain our policies and plans to 534 attendees from 333 business partners

Recently held briefing sessions to explain our policies and plans to 534 attendees from 333 business partners

Establishment of Business Partner Code of Conduct

The SUGI Pharmacy Group has established a code of conduct that stipulates matters with which our business partners are requested to comply. In accordance with this code of conduct, we expect our business partners to work with the SUGI Pharmacy Group to seriously address the various environmental and social issues. Through such efforts, we aim to contribute to the sustainable development of local communities by increasing the number of healthy and energetic people and realizing a vigorous society through corporate activities.

The SUGI Pharmacy Group Business Partner Action Guidelines

(Excerpt from the SUGI Pharmacy Group Business Partner Code of Conduct)

1. Legal compliance and fair and equitable transactions

You must comply with the laws, regulations, and social norms of each country and region, including laws, regulations, and rules concerning abuse of superior bargaining position, fair competition, and fair transactions, and you must not engage in any conduct that deviates from these laws and regulations.

  • ① Comply with laws, regulations, and related tools of each country and region.
  • ② Maintain sound relationships with politicians, government agencies, and customers and do not engage in corruption, bribery, and the provision of benefits.
  • ③ Establish an organizational structure to protect information assets from the threat of leakage, theft, or falsification.
  • ④ Establish an organizational structure to protect personal information from leakage or unauthorized acquisition, use, or disclosure.
  • ⑤ Respect the intellectual property rights of customers and do not infringe the rights of third parties.

2. Procurement of safe and secure products

Serve customers sincerely by complying with the laws and regulations of each country and region and providing safe and secure products and services that satisfy customer needs.

  • ① Comply with each country’s and region’s laws, regulations, and standards concerning safety in order to ensure the safety of products and services.
  • ② Strive to conclude contracts with suppliers in advance to ensure procurement during times of disaster.
  • ③ Offer and disclose information on products and services to customers properly and on a timely basis.
  • ④ Respond sincerely to any inquiries from customers and reflect them in the maintenance and improvement of quality.

4. Thoroughly implement environmental protection measures

Comply with environmental laws and regulations in each country and region, and contribute to the sustainable development of local communities through corporate activities that consider the global environment.

  • ① Work to reduce greenhouse gas emissions in order to address global warming.
  • ② Promote the sustainable use of resources by saving energy and resources, recycling, and reducing waste.
  • ③ Work to prevent pollution and health hazards.
  • ④ Comply with the laws and regulations of each country and region in order to preserve biodiversity.
  • ⑤ Do not handle products that use any chemicals or raw materials prohibited by laws and regulations.

5. Contribution to local communities

Respect the culture, religions, and customs of each country and region to contribute to the sustainable development of local communities.

  • ① Understand the region’s social issues and work with employees and customers to contribute to economic and cultural development.
  • ② Do not have any relationships with anti-social forces or dangerous organizations or groups.

Operation and monitoring at business partners

Business partners are requested to understand and comply with the Code of Conduct and to ensure that their subcontractors also understand and comply with it. Business partners are also requested to report any violation of the Code of Conduct by them or their subcontractor to the person in charge at the SUGI Pharmacy Group as soon as they recognize it. In this case, they are requested to take corrective measures promptly and report the correction status each time.
The SUGI Pharmacy Group may conduct monitoring of the status of compliance with the Code of Conduct by business partners and their subcontractors. If any non-compliance with the Code of Conduct is found as a result of such monitoring, we will request that the relevant business partner take improvement or corrective measures.

Establishing a Resilient Supply Chain

Establishing a Resilient Supply Chain

Conducting human rights due diligence (human rights DD) on business partners

In response to the growing human rights awareness around the world, we conducted a human rights DD on a select number of business partners in FY 2024, the first year of the program.
In the first year, we asked 269 business partners involved in product development 86 questions related to ESG through a cloud service. We received a final response rate of 64.7%.
The questions cover not only all of the internationally important human right issues, such as forced labor, human trafficking, child labor, freedom of association, collective bargaining rights and discrimination, but also a wide range of topics related to the environment, society and governance, including management and target-setting of greenhouse gas emissions, control of chemicals and wastes, systems for accepting foreign technical trainees, health and safety of employees, information security, and ethics and compliance. We conducted additional investigations individually into the 48 companies whom we had concerns about through the due diligence (DD) process and confirmed that none of our business partners have serious problems. In FY2025, we will arrange additional investigations and briefing sessions individually depending on the DD results and continue holding meetings for improvement while promoting the betterment of our overall supply chain. In addition, further efforts will be made to reduce business risks and strengthen the responsible procurement system by expanding the coverage of business partner due diligence.