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. In addition, the "Group Sustainability Committee" meets as needed and continues to formulate policies, targets, and measures related to responsible procurement.
In selecting suppliers, we prioritize those that are making meaningful progress in environmental, social, and governance (ESG) practices by incorporating ESG criteria that go beyond financial reliability and product quality. Our evaluation includes a wide range of factors, such as employee management to ensure occupational health and safety, as well as respect for human rights through the elimination of child labor and forced labor, the prevention of discrimination and harassment, and the protection of freedom of association, collective bargaining, and the prevention of excessive working hours. Furthermore, we consider environmental responsibility, covering energy use, climate change response, pollution prevention, waste and water management, biodiversity, food loss reduction, and resource utilization, alongside ethical compliance regarding anti-corruption, management of conflicts of interest, and prevention of anti-competitive behavior. We also take into account the supplier's status regarding any other forms of antisocial conduct.
Moreover, we encourage our suppliers to implement and obtain certification for environmental management systems such as ISO 14001. In line with this, we require compliance with our expectations, which include reducing raw material consumption, tracking greenhouse gas emissions, reducing the use of hazardous substances, and ensuring the proper treatment of hazardous waste and harmful atmospheric emissions.
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 local laws, customs, and conditions of each region, but rather on whether there are any significant discrepancies when benchmarked against international standards. We strive for responsible procurement by enforcing a strict policy of not initiating transactions if any problems are found.
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.
In our supplier selection process, we have introduced a methodology to consider and evaluate the following sustainability risks:
- Country-specific risks: We consider the risk of negative ESG impacts related to the political, economic, environmental, and regulatory conditions in the countries and regions where the supplier operates.
- Sector-specific risks: We consider the risk of negative ESG impacts related to labor conditions, emissions, and pollution within the sector to which the supplier belongs.
- Product-specific risks: We consider the risk of negative ESG impacts related to the supply chain structure, labor conditions, energy consumption, emissions, and pollution of the procured products.
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: A process where our buyers visit supplier factories directly to assess current conditions in collaboration with suppliers, and utilize the results for improvement activities. Based on a CSR checklist, we mutually check with the supplier on the implementation status of requirements and share best practices.
*The scope of these monitoring and audit activities is not limited to direct (Tier 1) suppliers but also extends to certain upstream Tier 2 suppliers, as we strive to mitigate risks across the entire supply chain.
*Supplier evaluations are conducted with reference to the methodology of the Global Compact Network Japan's supply chain subcommittee.
Scope of coverage
2. Supplier Monitoring and Audit
- We regularly monitor and audit all suppliers, regardless of their location or transaction volume, with the goal of covering each supplier once every two years. Through this process, we identify environmental and social risks and specify suppliers with high-risk profiles. Furthermore, we provide feedback on the results to all suppliers, offering support that includes information sharing and guidance for improvement.
- Under the supervision of the Board of Directors, the status and details of our monitoring and auditing activities are reported quarterly to the Group Sustainability Committee to promote these initiatives. The committee is chaired by the President and COO, and its members include the Chairman and CEO, all Executive Officers, and the presidents of Group companies.
- Since fiscal 2022, in addition to our conventional monitoring of food and product quality and safety, we have conducted monitoring, audits, and training to evaluate risks. This includes evaluating risks related to social issues such as human rights, labor practices, and fair business activities based on our "Procurement Policy" and "Anti-Bribery and Anti-Corruption Policy," as well as evaluating their fundamental stance and risks concerning environmental initiatives based on our "Environmental Policy."
- We hold meetings with our suppliers at least once a year to engage in risk-conscious communication and provide guidance on environmental and social issues based on our "CSR Guidelines."
- Our buyers regularly visit all supplier manufacturing plants—not only at the start of a new transaction but also periodically thereafter—to verify that their food safety processes are operating as intended and to provide evaluation and guidance. The results are documented, stored, and shared with the supplier to facilitate continuous improvement.
- For each supplier, we conduct a quantitative confirmation of changes in transaction volume and the results of food hygiene inspections, sharing this information with our finance and quality management departments.
- Our on-site audits and evaluations go beyond food hygiene inspections to include risk assessments for occupational health, safety, and environmental conservation.
- Buyers are responsible for gathering as much information as possible on supplier practices concerning employee management, respect for human rights, pollution control measures, and any potential involvement in anti-social activities.
- For overseas suppliers, assessments are not based solely on local laws, customs, and conditions. Rather, the responsible manager at our headquarters conducts an evaluation by benchmarking the supplier’s practices against international standards, based on a confirmed report.
- We evaluate the corporate reliability of our suppliers based on documents provided by the suppliers and publicly available information, taking into account both industry-specific information and sector-specific risks against our internal standards. Following on from fiscal 2022, 2023, and 2024, there were no instances of supplier non-conformance with our "Environmental Policy," "Procurement Policy," or "Anti-Bribery and Anti-Corruption Policy" in fiscal 2025. Should non-conformance or a serious violation occur, we will confirm the facts and require the supplier to take corrective action. If necessary, our company or a designated specialist will conduct an on-site investigation. If improvements are not made within the required timeframe, we will take further measures, including a review of our business relationship.
- We have established a dedicated whistleblowing contact point for business partners that is accessible to supplier employees, and we are promoting awareness of this resource among our suppliers through CSR checks and other initiatives.
- We continuously disclose the management status of our key suppliers, who are identified based on transaction volume and ESG risks. As a key indicator, we disclose information on this page such as the percentage of transaction value from these key suppliers (63.1%), and we remain committed to expanding our information disclosure to further enhance transparency.