Basic Policy on Procurement
TEPCO Group Basic Policy on Procurement
Introduction
The Tokyo Electric Power Company Group (hereinafter referred to as the TEPCO Group) gives the highest priority to taking full responsibility for Fukushima, establish a highly fair and transparent trading environment and procure economical and high-quality materials and services, following the TEPCO Group Charter of Corporate Conduct as the basis for all actions and under mutual trust with our business partners in order to pursue the future potential of energy and deliver value beyond expectations from each customer.
1. Strengthening relationship based on mutual trust
The supply of materials, equipment and services to develop the future of energy for safe and comfortable living is supported by partnerships with business partners who are looking to the same future based on mutual trust. We aim to enhance two-way communication with our business partners and establish business relationships that lead to mutual growth.
2. An open, impartial and fair approach to trading
We will share open, impartial and fair trading opportunities with business partners, not only in Japan but throughout the world, and actively promote an expansion in trade with highly competitive business partners.
Also, in carrying out transactions, we will give overall consideration to quality, price, delivery time, reliability, technical capability, business conditions, adherence to laws, regulations and social standards, respect for international standards and principles regarding human rights, safety, consideration for the environment, and carry out impartial and fair trading based on economic rationality.
3. Promotion of cost price improvements
In order to pursue the future potential of energy and deliver value that exceeds the expectations of each customer, we will strive to reduce procurement costs while ensuring high quality and high safety.
In order to achieve this objective, we will respect the opinions and suggestions of our business partners and work together to promote cost price improvements.
4. Compliance with laws, regulations and social standards
We will comply with all relevant laws and social standards*, including their spirits, applicable in each country and region where the TEPCO Group conducts procurement activities, and, under no circumstances, will give or accept inappropriate benefits including bribery, excessive gifts and entertainment any interested parties or engage in abuse of a superior bargaining status as the ordering party, or participate in cartels or bid rigging.
*The relevant laws, regulations and social standards include the Civil Code, Commercial Code, Company Law, Anti-Monopoly Law, Intellectual Property Basic Law, Personal Information Protection Law, Construction Industry Law, Subcontract Law, Waste Disposal Law, and Construction Recycling Law as well as laws and social standards related to labor and human rights that should be observed in order to fulfill social responsibilities such as elimination of child labor and forced labor, elimination of illegal employment and nonpayment of wages, elimination of unfair discrimination concerning employment, control of long working hours. They also include respecting and observing the spirit of domestic laws and regulations as well as international standards and principles, based on the United Nations Guiding Principles on Business and Human Rights.
5. Consideration for human rights and occupational health and safety
In accordance with the spirit of the TEPCO Group Human Rights Policy, the TEPCO Group will not engage in any kind of discrimination or harassment, respect basic human rights, comply with relevant laws and regulations related to safety and take all possible measures for occupational health and safety, including securing a clean workplace environment, preventing occupational accidents and promoting health throughout the entire supply chain.
In addition, regarding raw materials (e.g. conflict minerals) that may cause social issues such as human rights violations and environmental destruction in the process of collection and processing, we will carefully consider the impact on society and refrain from using them if there are any concerns.
6. Consideration for the environment
By promoting the preferential purchase of materials and equipment with low environmental impact (Green Procurement) as well as dialogue and collaboration with our business partners in accordance with the TEPCO Group Environmental Policy and the Green Procurement guidelines, we will strive to realize a recycling-oriented society through contribution to carbon neutrality, conservation of biodiversity, efficient use of resources and water, appropriate management of chemical substances, and reduction, reuse and recycling of waste.
7. Thorough risk management
We will grasp, assess and take appropriate measures against the risks associated with procurement activities and will take immediate and proper actions to implement thorough risk management if any material risk becomes clear.
8. Contributing to sustainable development across the entire supply chain and to the community
We will contribute to the realization of a sustainable society across the supply chain and the development of local communities in each region where the TEPCO Group conducts business activities by communicating the TEPCO Group Charter of Corporate Conduct, TEPCO Group Human Rights Policy, TEPCO Group Environmental Policy, and Basic Policy on Procurement to our business partners and seeking actions based on the spirit of the policies and guidelines.
TEPCO Group Sustainable Procurement Guidelines
Introduction
- (1)
Sharing corporate behavior guidelines
We ask our business partners to understand our corporate behavior guidelines set forth in “TEPCO Group Charter of Corporate Conduct”, “TEPCO Group Human Rights Policy”, “TEPCO Group Environmental Policy” and “Basic Policy on Procurement”. We also ask for our business partners’ cooperation in conducting their corporate activities in line with the spirit of these guidelines.
- (2)
Providing competitive products and services and developing new technologies and services while putting safety first
We ask our business partners to cooperate in providing competitive (high quality, low cost and early-delivery) products and services and promoting the development of new technologies and services that can create new value while placing the safety of employees and other stakeholders first.
- (3)
Sharing corporate behavior guidelines across the supplier chain
With regard to carrying out corporate activities in accordance with the spirit of our corporate behavior guidelines in order to contribute to the sustainable development of society throughout the supply chain, we ask our business partners to cooperate with their business partners and related parties and carry out their corporate activities in the same way as we do.
1. Strengthening relationship based on mutual trust
We place great importance on building sound and good partnerships with our business partners by making the Partnership Building Declaration established by the government’s Conference of Promoting Partnership Building to Develop the Future. We expect our business partners to establish their relationships that lead to mutual trust in the same way in order to fulfill their social responsibilities.
2. An open, impartial and fair approach to trading
In order to expand business with competitive business partners through open, impartial and fair transactions at all times, we will evaluate not only the quality, price, delivery time, reliability, and technical capability but also whether they are fulfilling their social responsibilities and carry out our transactions in accordance with appropriate procedures.
We ask our business partners to show positive attitudes towards corporate social responsibility, demonstrate their competitive edge and provide products and services that excel in quality, price, delivery time, reliability and technical capability.
3. Promotion of cost price improvements
In order to reduce procurement costs by making full use of all possible measures, we expect our business partners to make positive efforts, such as providing useful opinions on cost reduction, proposing VE and VA, and participating in collaborative kaizen activities to promote cost improvement.
We ask for cooperation in providing competitive products and services (high quality, low cost, and short delivery time) and promoting the development of new technologies and services that create "value that exceeds the expectations of each and every customer."
4. Compliance with laws, regulations and social standards
We request that our business partners comply with all relevant laws and social standards (*) of the countries and regions in which they operate. We also request that they not be engaged in any acts that impede fair competition, including so-called corruption, bribery, offering or receiving inappropriate benefits such as excessive gifts and entertainment, coercing business partners to engage in disadvantageous activities and participating in acts that hinder fair competition such as cartels and bid rigging even outside of transactions with the TEPCO Group.
*The relevant laws, regulations and social standards include the Civil Code, Commercial Code, Company Law, Anti-Monopoly Law, Intellectual Property Basic Law, Personal Information Protection Law, Construction Industry Law, Subcontract Law, Waste Disposal Law, and Construction Recycling Law as well as laws and social standards related to labor and human rights that should be observed in order to fulfill social responsibilities such as elimination of child labor and forced labor, elimination of illegal employment and nonpayment of wages, elimination of unfair discrimination concerning employment and suppression of long working hours. They also include respecting and complying with the spirit of not only domestic laws and regulations but also international standards and principles, in view of the United Nations’ Guiding Principles on Business and Human Rights.
5. Consideration for human rights and occupational health and safety
We expect our business partners to understand the TEPCO Group Human Rights Policy, which strives to prevent and mitigate adverse impacts on human rights through business operations in accordance with the international standards and principles regarding human rights including the International Bill of Human Rights, the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work and the Children's Rights and Business Principles, carry out their corporate activities in accordance with this spirit, which we intend to share not only with our business partners but also with their business partners and related parties and take measures similar to those by the TEPCO Group.
Also, we expect our business partners to recognize that a safe and hygienic working environment will minimize the occurrence of occupational injuries and diseases and improve the quality of products and services, the consistency of product quality and worker retention and work ethic and continuous dissemination of information and education to workers is essential to identify and resolve occupational health and safety issues.
Furthermore, if you have any concerns about raw materials (conflict minerals, etc.) that may cause social issues such as human rights violations and environmental destruction, please use raw materials that do not have any concerns.
6. Consideration for the environment
We expect our business partners to build environmental management systems for their entire supply chain to realize a recycling-oriented society through reduction of the total amount of greenhouse gas emissions and emissions per product with the aim of achieving carbon neutrality, conservation of biodiversity, efficient use of resources and water, appropriate management of chemical substances and reduction, reuse and recycling of waste.
We ask our business partners to proactively propose initiatives for reducing the environmental burden (eco-proposal) in product manufacturing, construction and contract works.
In addition, we ask our business partners to measure the amount of greenhouse gas emissions from a series of their business activities and disclose the information on a regular basis on their company website.
7. Thorough risk management
We expect our business partners to build processes for identifying labor practices and ethical risks related to legal compliance, the environment, health and safety and operations, and risk management for managing identified risks, determining the relative importance of each risk and implementing appropriate procedures for management and physical control through appropriate procedures.
In addition, we expect our business partners to establish business continuity plans (BCP) for the occurrence of events such as large-scale natural disasters, accidents, terrorism, riots, wide-area infectious diseases throughout their supply chain so that supply of products and services will not be disrupted.
8. Contributing to sustainable development across the entire supply chain and to the community
We expect our business partners to contribute to the realization of a sustainable society and the development of the local communities by understanding the “TEPCO Group Charter of Corporate Conduct”, the “TEPCO Group Human Rights Policy”, the “TEPCO Group Environmental Policy”, and the “Basic Policy on Procurement” and by carrying out their corporate activities in accordance with these spirits.
With regard to carrying out corporate activities in accordance with the spirit of our corporate behavior guidelines in order to contribute to the realization of a sustainable society across the entire supply chain and the development of local communities, we ask our business partners to communicate the “TEPCO Group Charter of Corporate Conduct”, the “TEPCO Group Human Rights Policy” and the “Basic Policy on Procurement” to their related parties and to ask them to carry out their activities in the same way.
TEPCO Group Confirmation of Compliance with Sustainable Procurement Guidelines
We, Tokyo Electric Power Company Group, would like our business partners to carefully read and understand these guidelines and share and comply with the spirit of these guidelines throughout the supply chain.
As a proof that the spirit of these guidelines has been shared and agreed with, we request that this confirmation letter be signed or affixed with the seal of the legal representative of your company.
Please download the attached "Confirmation of Compliance with Sustainable Procurement Guidelines" and check the submission method.
