In cooperation with its suppliers, the Asahi Group engages in procurement to preserve the global environment and local communities, in accordance with the Asahi Group Sustainable Procurement Principles. In 2018, continuing on from 2015 and 2016, we conducted a Supplier CSR Questionnaire to gain an understanding of all suppliers’ ESG (Environment/Social/Government) initiatives, to assess their risks and to resolve potential issues.
The Asahi Group does not immediately suspend or cancel transactions with suppliers if issues are discovered through the Supplier CSR Questionnaire, but we are convinced that working together with you to resolve those issues will contribute to resolving challenges in society on a fundamental level. The Supplier CSR Questionnaire and other such activities have the aim of further solidifying strong trust and long-term cooperation with all suppliers.
Asahi Breweries, Asahi Soft Drinks, Asahi Group Foods, Asahi International, Asahi Breweries Europe, Asahi Beverages, Etika Beverages (7 companies)
*Company names are as of 2018, when the survey was implemented.
The survey this time used the self-assessment questionnaire (SAQ) by the UN Global Compact Network Japan (GCNJ) in 2017. This questionnaire was chosen for the following 4 reasons.
The survey this time asked questions about the following nine items, which are included in the SAQ created by the GCNJ. Each item had sub-items, and questions were asked about “legal perception,” “objectives,” “system and responsibilities,” “verifying initiative outcomes,” and “corrections,” and initiatives were scored.
Survey items: 9 items
(1) Corporate governance, (2) Human rights, (3) Labor, (4) Environment, (5) Fair business practices, (6) Quality, (7) Information security, (8) Supply chain, (9) Community
|9 themes||47 topics|
|(1) Corporate governance||
|(2) Human rights||
|(5) Fair business practices||
|(7) Information security||
|(8) Supply chain||
Moreover, in addition to the 9 items, we also surveyed specific initiatives to save energy and resources as well as certifications to provide products that are socially responsible.
The overall average score when totaling the 9 items was 78%, with variation in the range of 64-90% for individual items. The items with the highest scores were (3) Labor, (6) Quality, and (7) Information security, while those with the lowest scores were (2) Human rights and (8) Supply chain.
|Themes||Number of Questions||Highest Score Rate (%)||Lowest Score Rate (%)||Average Score Rate (%)||Standard Deviation|
|(1) Corporate governance||20||100||20||74||25|
|(2) Human rights||9||100||0||70||26|
|(5) Fair business practices||20||100||20||78||24|
|(7) Information security||9||100||0||83||21|
|(8) Supply chain||7||100||0||64||29|
|FSC (forest certification)||56 companies|
|Roundtable on Sustainable Palm Oil (sustainable palm oil)||22 companies|
|Rainforest Alliance (rainforest preservation)||17 companies|
|Fair Trade (supporting production in developing countries)||12 companies|
|Good Agricultural Practice (agricultural production process management)||7 companies|
|ISO14001||Have acquired ISO14001 certification for main business location||42%|
|CO2 emissions||Have calculated Scope 1 and 2||27%|
|Have calculated Scope 3||14%|
|Water risk||Have done water risk assessments||33%|
|Reducing waste||Reducing CO2 emissions||Water use||Emissions|
|Targets made public||15%||20%||10%||5%|
|Grasp of results||82%||59%||79%||62%|
|Results made public||25%||27%||21%||16%|
|Targets made public||5%||15%|
|Policy made public||14%|
|Making efforts to save resources in development, design, and manufacturing of raw and packaging materials||70%|
|Making efforts to reduce use of packaging materials||61%|
|Advancing recycling of packaging materials for raw and packaging materials||57%|
We provide feedback about the results of the Supplier CSR Questionnaire to all supplier companies that responded, including the assessment results and comments from procurement managers.
We also share the aggregated and analyzed survey results at meetings for the suppliers. Our intention is for this to further promote CSR procurement and increase understanding of the Asahi Group Supplier Code of Conduct.
We visited five companies in 2018 and 12 companies in 2019 for on-site monitoring based on the 9-item Supplier CSR Questionnaire and supplementary questions. Monitoring confirmed that most items perceived as problem areas in the questionnaire were, in fact, being addressed in one way or another.
If interviews revealed that a particular issue was not being adequately addressed, we provided suppliers with examples of how other companies are dealing with the issues or suggested consulting a labor and social security attorney, legal advisor, or a Labor Standards Inspection Office about relevant laws and regulations. In such ways, we are working together with suppliers to develop action plans.
In 2019, the following issues were identified:
There were no violations in the areas of the environment or quality.
When deciding on where to conduct the interviews, we prioritize raw and packaging material makers and make selections based on four criteria: (1) CSR questionnaire score, (2) value of transactions with the Asahi Group, (3) whether the supplier attended an Asahi Group Procurement Policy Information Meeting, and (4) CSR risk.
We plan to visit 12 companies in 2020. We also plan to implement the Supplier CSR Self-Assessment Questionnaire for raw and packaging material suppliers of group companies.
We revised the CSR Principles for Asahi Group Suppliers, which was established in November 2015 to specify the rules we ask suppliers to observe, into the Asahi Group Supplier Code of Conduct in January 2020. This revision reflects the establishment and revision of the Asahi Group Philosophy, Asahi Group Code of Conduct, and other related policies in the context of an increase in the awareness of ESG in society. We have expanded the three items, respect for human rights, respect for the environment, and compliance with laws and regulations, to eight items, respect for human rights, improvement of working environment, environmental consciousness, fair business practices, quality assurance, information management, respect for local communities, and responsible drinking. We will reflect this revision in the questionnaire in 2020. We also plan to add the manufacturers that produce and/or process the agricultural commodities that will be used in the raw materials we procure as participants in the on-site investigations.
We believe that two-way dialogue on the basis of questionnaire responses can contribute to improved CSR activities for both the Asahi Group and suppliers, and accordingly, this is something we will continue to engage in.