Starting in fiscal 2019, the Housing and Construction Division began subjecting new suppliers to an annual Sustainability Procurement Survey in addition to the Green Procurement Survey that was required in the past. This Sustainability Procurement Survey was originally aimed for existing building materials and housing equipment manufacturers and suppliers. In addition, we conduct surveys of 30 companies we transact with directly (making up for about 86% of our total fiscal 2018 purchase amount) and the top 12 companies (in terms of fiscal 2018 purchase amount ) that we transact indirectly with. These surveys cover a total of 53 categories and help us grasp each company’s status regarding governance, human rights, labor safety, environmental initiatives as well as sustainable wood procurement and other relevant issues.
In October 2019, we held a sustainability survey briefing to all suppliers who were asked to respond to our survey. Approximately 50 people attended, and we shared with them the Sumitomo Forestry Group Code of Conduct, the Sumitomo Forestry Group Procurement Policy and our thinking regarding responsible procurement to promote mutual understanding.
The survey conducted had a 100% response rate, and based on their responses, suppliers were evaluated on a four-scale ranking of S, A, B or C.
Through the surveys, we were able to confirm that many suppliers share our own understanding of what responsible procurement means. On the other hand, some suppliers fell short of our expectations and after discussions at our supplier evaluation meetings, we provided feedback, which we will continue to follow up on to ensure ongoing improvement.