Realize Sustainable Supply Chains

Approach

A large number of companies are involved in the process from the manufacture to the supply of a product. Accordingly, it is considered important for a company to manage the overall supply chain instead of only the processes in which it is directly involved. To realize and maintain a sustainable supply chain, the Asahi Group has established the Asahi Group Sustainable Procurement Principles. We have also established the Asahi Group Supplier Code of Conduct and ask our suppliers for sustainable activities. We will build strong relationships of trust and long-term cooperative relationships with our suppliers to promote procurement activities with environmental and social considerations.

Management System

At the Asahi Group, we have established the Procurement Section at Asahi Group Holdings, Ltd. as the section in charge of overseeing the procurement strategy of the Group overall. We thus engage in optimal procurement activities in coordination with Group companies. Policies and strategies proposed by the Procurement Section are notified to the overall Group and developed as specific initiatives in the procurement activities of Group companies.

Specifically, we have positioned Global Procurement Conferences and Group Procurement Section Conferences asBasic Procurement venues for disseminating information among Group members. These conferences are used to communicate to all Group members our procurement strategies and policies, such as the Asahi Group Sustainable Procurement Principles and the Asahi Group Supplier Code of Conduct, as well other policies with strong connection to procurement, such as the Asahi Group Environmental Vision 2050 and the Asahi Group Human Rights Principles.

Persons in charge of procurement at the Procurement Section and Group companies are striving to improve their knowledge of procurement, including CSR procurement, through the acquisition of Certified Procurement Professional (CPP) qualifications by the Japan Management Association.

We have also established a Procurement Clean Line System, which enables our suppliers and parties wishing to become our suppliers to report incidents where employees of the Asahi Group act in a manner contrary to the Asahi Group Sustainable Procurement Principles, or when they are involved in activities that appear not to comply with the law or social ethics. With this system, we have established strong relationships of trust and long-term cooperative relationships with our suppliers. In 2019, no incidents were reported under this system.

Related Information

Goals

In January 2020, we revised the CSR Principles for Asahi Group Suppliers to form the Asahi Group Supplier Code of Code. In accordance with the revision, we will work with suppliers to bring greater sophistication to the sustainable supply chain.

Main Results for FY2019

  • Number of suppliers that joined Asahi Group Material QA meeting to jointly improve quality (48)
  • Number of companies where on-site inspection was conducted in relation to the responses to Supplier CSR Survey (12)
  • Implementation of evaluation of supplier (raw materials: 89 companies; materials: 76 companies; companies evaluated: Asahi Breweries, Ltd., Asahi Soft Drinks Co., Ltd., and Asahi Group Foods, Ltd.)
  • Global Procurement Conferences (plenary conference: 1 time; section conference: 2 times)
  • Group Procurement Section Conferences in Japan (3 times)

Going Forward

We will continue to take and enhance the above initiatives in 2020 and thereafter to build strong relationships of trust and long-term cooperative relationships with more of our suppliers.

Related Information

Related SDGs