Supply Chain Management

The Tokyo Seimitsu Group has the “procurement policy” and “supplier CSR guidelines” in place to promote sustainable procurement. To reinforce this initiative, we established a Supply Chain Team in the Sustainability Dept. and set up a Supply Chain Working Group (WG)*, which is led by that team. This working group is promoting sustainable procurement across the supply chain through continuous dialogue involving supplier briefing sessions and CSR surveys.

The Supply Chain Working Group has shifted from the conventional approach of “building a supply chain with the focus on creating opportunities for dialogue” and overhauled its activity structure by reviewing materiality issues.

In fiscal 2025, the working group convened nine times. For major activities, refer to “Sustainability Promotion Structure/FY2025 Subcommittees/Supply Chain Working Group.”

Tokyo Seimitsu revised its Basic Transaction Agreement in May 2024. In addition to clauses such as legal compliance, anti-bribery and anti-corruption, and personal information protection, we have added clauses to strive to comply with our standards (CSR Guidelines, Information Security Standards, and Green Procurement Standards) to clarify that we will work together to fulfill our social responsibilities throughout the supply chain.

We have declared our compliance with the Responsible Business Alliance (RBA) to meet the demands of the international community, including corporate responsibility for the safety of the working environment, worker dignity and environmental impact throughout our supply chain. Based on the RBA Code of Conduct, we have formulated the “Tokyo Seimitsu Supplier CSR Guidelines” that set out our requirements with regard to “procurement policy,” “human rights and labor,” “occupational safety and health,” “the environment,” “ethics,” “safety and quality,” and “information security.” We ask that our suppliers understand the purpose of these guidelines and cooperate with us in promoting sustainable procurement activities as well as provide us with written confirmation that they have checked and understand the content of the guidelines.

Tokyo Seimitsu promotes green procurement and has established the “Green Procurement Standards,” which indicate that we prioritize the procurement of environmentally-friendly parts and materials from suppliers with well-established management systems. Based on the “Green Procurement Guidelines” established in April 2003, these standards were established in April 2024 to comply with environmental laws and regulations which have become more stringent. In order to gain the suppliers’ understanding of and cooperation with these standards, we not only distribute brochures and explanatory materials but also provide explanations at the annual supplier briefing session hosted by the Supply Chain Working Group.

ACCRETECH Green Procurement Standards

  Version 2 (revised in January 2026)

  Initial version (created in April 2024)

Tokyo Seimitsu take seriously the issues that minerals mined in conflict-affected and high-risk areas such as the Democratic Republic of the Congo (DRC) and adjoining countries, may be used to provide support to armed groups and lead to human rights abuses. To fulfill our social responsibilities, we established the "Responsible Mineral Procurement Policy" in September 2026.

Based on the "Responsible Mineral Procurement Policy", we pursue the responsible procurement of minerals by strengthening cooperation with our suppliers and conducting surveys of minerals across our supply chain.

Since fiscal 2016, we have conducted surveys using Supply Chain Management (SCM) check sheets to grasp our suppliers’ efforts to address environmental and social issues. We have conducted sustainability assessments based on RBA SAQ since fiscal 2022.

To get a more accurate grasp of the conditions of the entire supply chain, the surveys have been targeted at the major suppliers in the top 80% in terms of procurement costs since fiscal 2023. In fiscal 2025, 104 companies responded to the survey (response rate: 89.7%).

The results of the assessment analysis are individually provided to suppliers as feedback. For items where efforts are found to be insufficient, suppliers are requested to take corrective actions and improvement measures. In fiscal 2025, we conducted individual interviews with six suppliers (online interviews with five of them and in-person interview with one) to understand the background behind their responses and their actual situations, as well as to discuss concrete improvement measures.

For information on our initiatives regarding information security in the supply chain, please refer to the following page. Governance/Risk Management/Information Security/Enhancement of information security in the supply chain.

URL: https://www.accretech.com/en/sustainability/esg/risk_management.html

Tokyo Seimitsu strives to disseminate its environmental policy and to improve its management system in order to avoid environmental risks in the supply chain. We have included a provision regarding “understanding of the purpose of the environmental policy” in the basic transaction agreement, while holding supplier briefing sessions to ensure all suppliers understand this policy. We have an assessment framework in place that uses the “environmental management structure survey sheet” and “environmental management checklist” and ask suppliers to implement appropriate risk management. Suppliers to whom we outsource product manufacturing or services are required to participate in our regular survey conducted every two years regarding the items related to human health and living environments, including air pollution, water pollution, offensive odor control, noise and vibration, and specially controlled industrial wastes, ensuring they are committed to environmental conservation.

We hold supplier briefing sessions to serve as opportunity for holding dialogue with suppliers.

These briefings are intended to ensure that people understand and cooperate with our sustainable procurement initiatives.

The fiscal 2026 supplier briefing session shifted to a fully online format. It was attended by 119 people from 93 companies.

The Tokyo Seimitsu Group sees the “promotion of sustainable procurement” as a priority initiative in the “promotion of sustainability in the value chain,” which is one of our materiality issues. At the briefing session, we explained the sustainable procurement policy, CSR guidelines, climate action (grasp of Scope 3 greenhouse gas emissions), human rights due diligence, and handling of conflict minerals, as well as the changes in information security standards and green procurement standards.

We will continue to host these briefing sessions to ensure that suppliers understand our policies and stay on the same page regarding the challenges facing us and strive to build a sustainable supply chain in cooperation with them.

We developed a new platform called “ASCRet” and introduced it in July 2025. The platform enables two-way communication to drive and accelerate our vision for achieving “sustainable procurement” across the entire supply chain. This tool is a business platform that can manage a range of tasks in a centralized manner, including conducting sustainability surveys, sharing survey feedback, releasing announcements about briefing sessions, providing the latest regulatory and legal information, and checking the compliance status.

We are rolling out this tool to individual suppliers sequentially, with the aim of building a system that ensures smoother communication through the use of the digital platform.

[Announcements]
  ・ ASCRet Operation Standards
  ・ ACCRETECH Green Procurement Standards (Version 2)
  ・ Distribution of TES/TEG* (three times)
[Surveys and questionnaires]
  ・ Information security surveys
  ・ Supplier briefing session questionnaires
  ・ Supplier CSR surveys
[Survey requests]
  ・ Controlled or prohibited chemical substance survey
  ・ Geopolitical risk impact survey
  ・ Scope 3 calculation survey

* TES: Tokyo Seimitsu Engineering Standards/TEG: Tokyo Seimitsu Engineering Guidelines
TES refers to the production activity-related rules stipulated in the Tokyo Seimitsu Regulations (TMR) that apply to development, design, manufacturing, production control, quality control, service, and environmental management. These are binding and enforceable regulations, standards, criteria, and guidelines. TEG refers to guidelines and documented materials that are effective for production activities.

On February 1, 2023, Tokyo Seimitsu announced its “Business Partnership Building Declaration” in support of the aims of the “Council for Promoting Partnership Building for the Future*.” We aim to build new partnerships by promoting collaboration, co-existence, and co-prosperity with business partners in the supply chain and businesses seeking to create value.

In December 2023, we launched our electronic transaction system (ACCRETECH Web-EDI System) into operation. Web-EDI is a system for electronically exchanging information, such as order placement and receipt, between companies using a Web browser. The system makes procurement operations more efficient, paperless, and compliant with invoice reporting and the Electronic Books Maintenance Act. It aims to strengthen compliance (compliance with laws and regulations such as the SME Transactions Act) by accumulating and visualizing transaction information, as well as to enable a faster initial response by quickly grasping the situation of suppliers in the event of a disaster and its impact on production.

We conduct training for our employees to develop human resources who promote responsible procurement. In fiscal 2025, we provided e-learning training for Tokyo Seimitsu employees on the “Act on Preventing Delay in Payment to Small and Medium-Sized Entrusted Business Operators in Relation to Manufacturing Consignment (SME Transactions Act).” Also, the Production Control Division held a training session for identifying suppliers subject to the SME Transactions Act, clarifying the procedure for determining whether the Act applies to suppliers in terms of the details of transactions, the amount of capital, and the number of employees. Even after transitioning to the new law, we remain committed to fulfilling the legal obligations appropriately and maintaining and improving equal business relationships.

[SME Transactions Act (e-learning)] 
　Intended participants: 1,105 employees of Tokyo Seimitsu Co., Ltd. 
　Participation rate: 100%

[Production Control Division training session] 
　Intended participants: 20 employees of Tokyo Seimitsu Co., Ltd. 
　Participation rate: 100%