Skylark Group Procurement Policy
To realize the management philosophy of "Creating Richness with Value to Society", we believe it is important to meet the requirements of laws and regulations, and continuously provide safe and secure products to "provide valuable richness” through “food service” to our customers, which is an important responsibility of Skylark Group.
In order to earn the trust of our stakeholders, we ask our suppliers to understand and practice the following items regarding respect for human rights and global environmental conservation. We aim for coexistence and co-prosperity with our suppliers in our corporate activities and social and environmental responsibilities.
- Suppliers shall only provide safe products that meet the Food Sanitation Law of Japan and other related laws and regulations, and quality standards of the Company. Also, suppliers shall understand and cooperate with the inspection and audit of their manufacturing process of their products that the Company requests.
- In addition to providing only those products that pass bacterial tests conducted by our company, suppliers shall cooperate in providing information on food safety and quality required by the Company, including reports from external organizations regarding residual pesticides.
- Suppliers shall respect the human rights of their employees and will not treat them inhumanely.
- Suppliers shall prevent forced labor and child labor in their employees, eliminate excessive working hours in violation of laws and regulations, and secure minimum wage.
- Suppliers shall not engage in employment discrimination.
- Suppliers shall respect the freedom of association of employees and the right to collective bargaining in order to facilitate smooth discussions between labor and management.
- Suppliers shall strive to provide employees with a safe, hygienic and healthy working environment.
- Suppliers shall comply with relevant domestic and foreign laws and regulations. Suppliers shall also ensure compliance to fair transactions and anti-corruption.
- Suppliers shall emphasize the sustainability of natural resources and strive to conserve resources, and minimize the use of non-renewable resources. Natural resources obtained through illegal trade, extraction, or fishing shall not be used.
- Suppliers shall endeavor to understand and cooperate with our policy on biodiversity, animal welfare, energy saving, renewable energy, water conservation, food loss reduction, waste reduction, climate change, CO2 / GHG emission reduction, etc. Also, suppliers shall endeavor to understand and cooperate with the Company regarding communication, information provision, training, etc. regarding various issues.
- Suppliers shall provide and disclose information regarding all items above in a timely and appropriate manner.
January 13, 2021
Approved by Group Sustainability Committee
Cases of Material Breach
In the event of a material breach relating to this policy, we shall, upon verifying the facts, request that the supplier improve the situation. We ask all suppliers and secondary suppliers to be aware of and thoroughly adhere to the CSR Procurement Guidelines. If necessary, we or our designated experts will visit the site and conduct investigation. In addition, if no improvement has been made after a specified period, we will take measures which may include a reconsideration of the contract with the supplier or business partner.
Promoting Responsible Procurement
To fulfill social responsibilities through our business operations, Skylark Group has established purchasing management regulations, through which we ensure the purchase of safe, high-quality ingredients and respond to social issues, in addition to complying with laws and regulations.
When selecting suppliers, we check not only financial reliability and consistency of quality but also employee management by suppliers (ensuring occupational safety and health), consideration for human rights (preventing child labor, forced labor, discrimination and long working hours; right to freedom of association and collective bargaining), consideration for the environment (conserving energy, mitigating climate change, protecting water resources and biodiversity, preventing food loss and using resources efficiently), and other antisocial activities. We prioritize the selection of suppliers who are fulfilling their responsibilities to society.
We also ask suppliers for their understanding and cooperation in providing information relating to our environmental policies, communication with our company and training activities, to engage in joint corporate activities and aim for coexistence and co-prosperity of society and the environment together.
Currently, we have suppliers in 40 countries around the world. We do not judge based on the laws, customs and current situation of each region, but on whether there are any significant discrepancies in light of applicable Japanese laws. We strive for responsible procurement by enforcing a strict policy of not initiating transactions if there is any problem.
1. Supplier Selection
When selecting new suppliers, we conduct the following due diligence on all suppliers prior to the start of transactions in accordance with our "Detailed Rules for Sustainable Procurement Management" for the purpose of risk assessment of environmental and social issues.
Due Diligence Process
- CSR Agreement: Process to request suppliers to agree to our procurement guidelines before starting business with us.
- CSR Self-check: Process to assess suppliers' understanding of CSR requirements by asking them to complete a self-assessment.
- CSR Check: Process where our buyers visit supplier factories directly and assess current conditions in collaboration with suppliers, and utilize the results to improvement activities.
Scope of coverage
2. Supplier Monitoring and Audit
- Both in Japan and overseas, in principle, monitoring and audit on all suppliers are conducted on a regular basis (in principle once every two years), regardless of the scale of the transaction. Through this monitoring and auditing, we identify suppliers with high risk of environmental and social problems, and provide guidance and supervision to all suppliers through feedback.
- Since FY2022, in addition to the traditional monitoring of food and product quality and safety, we have been monitoring, auditing, and providing training guidance on social issues such as human rights, labor practices, and fair corporate activities based on our Procurement Policy and Anti-Bribery Policy, and on our basic stance toward environmental initiatives based on our Environmental Policy.
- We meet with suppliers at least once a year to communicate and provide guidance on environmental and social issues based on our "CSR Guidelines".
- All suppliers' manufacturing factories are regularly visited by our buyers to confirm, evaluate and provide guide whether their food safety processes are operating as intended, not just at the start of a transaction. Results are also documented and stored, shared with suppliers, and linked to improvement activities.
- Quantitative confirmations of changes in transaction amounts and results of food sanitation inspections for each supplier are carried out after sharing information with the Finance Department and Quality Control Department.
- In addition to food hygiene inspections, audits and evaluations—including confirmation of requirements for occupational health and environmental conservation—are conducted after on-site inspections.
- Buyers collect as much information as possible on employee management, care and consideration for human rights and pollution control measures at suppliers, as well as the situation with regard to antisocial behaviors.
- In the case of overseas suppliers, we do not judge based only on local laws, customs and circumstances, but by evaluation and judgment in light of Japanese laws and customs. Matters are reported to the manager of the relevant department at headquarters and evaluations are carried out.
- In addition to re-evaluating risks of social problems at existing suppliers through daily information gathering and periodic factory checks, we also pay attention to industry information on each supplier and evaluate their reliability as corporate entities.
- In 2022, there were no nonconformities with our "Environmental Policy" and "Procurement Policy" as required by our company. In the event of nonconformity or serious violation, we will confirm the facts and request the supplier to take corrective actions. If necessary, we or our appointed experts will visit the site and conduct an investigation. If the supplier does not take corrective action within the required period of time, we will take action, including a termination of the transaction.
※Number of key suppliers: Number of suppliers identified as having ESG impacts or high business relevance and risk.
3. Education and Training for Skylark Buyers
- Joint training sessions are held twice a year for all buyers to acquire and update knowledge in line with revisions of laws and regulations and changes in social conditions, and through the guidance of the in-house quality control department, education is provided.
- We also conduct on-the-job verification through "training programs accompanying" existing buyers' quality control staff when they visit suppliers in Japan and overseas.
- At the time of buyer's arrival, "Basic Knowledge Acquisition" including factory and sanitation center training is conducted based on a prescribed curriculum.
- Procurement Department employees comply with laws and regulations, industry agreements and norms, strive to gather information from the relevant ministries, agencies, industry bodies and suppliers; share with related departments within the company, including the Quality Control Department; and establish and revise management methods.
- We are fully aware that our contracts with suppliers are based on "fair, reasonable, and transparent" business relationships and that we are in a "superior position" in the eyes of society, and we strive to avoid any misunderstanding that we are engaged in "unfair" business relationships.
- Training for Skylark buyers on environmental and social issues is conducted at least twice a year.
4. Support for Initiatives and Cooperation with External Organizations
- Skylark actively collects information on advanced efforts from initiatives and consortiums both in Japan and other countries. We also participate in both regular and irregular seminars and study groups and actively disseminate information through exchanges of opinions. Through activities in cooperation with suppliers and companies in other industries, we work to further reduce the Group's environmental impact, resolve social issues, and work toward the creation of a sustainable society.
(Initiatives to reduce environmental impact and tackle societal Issues)
- ISO 20400, the international standard for sustainable procurement
Foodstuff procurement operations in 18 categories under the jurisdiction of the Foodstuff Purchasing Group, and other operations as per "Details of Compliance with Certification/Registration (Details)".
- Japan Food Service Association Food Procurement and Development Supervisory Committee