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Sustainability

Procurement Policy

Nippon Steel & Sumikin Engineering Group will, in performing our procurement activities, share the following action principles with business partners on the basis of "working in closer cooperation" and will pursue economically reasonable choices, while fulfilling our social responsibility.

  1. Improvement of products and technological capabilities
    We will actively seek to enhance the competitiveness of our existing business lines and products / services, as well as the product development and technological innovation that will contribute to solving various social problems.
  2. Observance of laws and social norms
    We will observe all applicable laws / regulations including construction laws, subcontracting laws, and antitrust laws, as well as social norms, when performing our business activities.
  3. Fair and sincere business transactions
    We will provide applicant suppliers with equal opportunities to do business with us, and we will select suppliers / sub-contractors in a fair and sincere manner through strict and fair competition.
  4. Consideration for the environment
    Based on the immediate social circumstances / demands surrounding us, we will give due consideration to environmental conservation.
  5. Safety first
    We will ensure that the highest priority is given to safety.

Examples of Activities

CSR in the Supply Chain

  • Nippon Steel & Sumikin Engineering Group continuously request each supplier and subcontractor in our supply chain for value engineering proposals in order to achieve cost reduction and enhancement of profit across the entire supply chain.
  • In Japan, we conduct supply chain education from the viewpoint of compliance with laws and regulations. Since FY2014, we have held legal compliance briefing sessions for our primary business partners every second year and will continue this activity as part of our CSR in the supply chain.
  • In both the Japanese and English versions of our general terms and conditions of contract, we provide specific clauses to cover requirements in relation to social responsibilities to be observed by our business partners, such as prevention of corruption and elimination of organized crime groups from business transactions, in accordance with the worldwide trend of tightening regulations in recent years.

Supplier Award Program - Building-up Partnerships

  • Nippon Steel & Sumikin Engineering Co., Ltd. (NSENGI) launched a supplier awards program in FY2014 and confers awards every second year as a token of our gratitude to business partners in Japan who have made a notable contribution to our business, and for the purpose of building up firm partnership with such excellent key business partners.
  • The top three companies are selected from the supply chain each time through a quantitative evaluation of contributions to our business in areas such as technology, quality, cost, and delivery time. In FY2016 we conferred a special award to one additional company that achieved a particularly noteworthy contribution.

Facilitation of communication with suppliers and subcontractors

  • NSENGI carry out a CSR questionnaire in combination with a market survey every two years, for the dual purpose of encouraging the sharing of our Procurement Policy and promoting two-way communication with each business partner in our supply chain in Japan.
  • We take this CSR questionnaire as an opportunity to examine our own business activities with the Supply Chain, verifying whether observance of laws, regulations or social norms is adequate in every aspect of our business activities and to check the status of responses to the latest changes to relevant laws and regulations and other CSR activities in our Supply Chain. The important findings or indications of the questionnaire feedback are utilized by us to improve our business relations with suppliers and subcontractors by conducting consultations and discussions on their comments while the statistical results and major feedback comments from the questionnaire are shared among the Supply Chain.

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