Supplier CSR Survey

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 Basic Procurement Policies. In 2018, continuing on from 2015 and 2016, we conducted a Supplier CSR Questionnaire to gain an understanding of all suppliers’ CSR initiatives 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.

Survey Overview

Participants

Asahi Breweries, Ltd., Asahi Soft Drinks Co., Ltd., Asahi Group Foods, Ltd., Asahi Europe, Asahi Breweries Europe, Asahi Beverages, Etika Beverages (7 companies)

Participating suppliers in numbers

Requests Responses from
primary suppliers
Responses from
secondary suppliers
Total responses
Japan 385 361 76 437
Overseas 47 33 - 33
Total 432 394 76 470

Questionnaire contents

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.

  • 1) It has high affinity with the Asahi Group Supplier CSR Action Guidelines
  • 2) It conforms to the GC10 Principles, ISO26000, GRI, and other international standards
  • 3) It becomes easier for suppliers to respond if we use a common format for all industries and industry types
  • 4) It is easy to understand as it has a radar chart feedback format and a word list

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 / safety, (7) Information security, (8) Supply chain, (9) Community

9 themes 47 topics
(1) Corporate governance
  1. Establishment of a CSR promotion system
  2. Establishment of internal controls
  3. Establishment of a business continuity planning (BCP) system
  4. Establishment of a whistle-blower system
  5. Dispatch of CSR-related information inside and outside the company
(2) Human rights
  1. Basic attitude toward human rights
  2. Respect for human rights and prohibition of discrimination
  3. Avoidance of complicity in (or contribution to) human rights abuses
  4. Respect for indigenous peoples and local communities
(3) Labor
  1. Basic attitude toward labor practices
  2. Prohibition of discrimination in the workplace
  3. Provision of equal opportunities to employees regarding human resources development and career advancement, etc.
  4. Prohibition of inhumane treatment
  5. Payment of fair wages
  6. Fair application of working hours, time off, and paid time off, etc.
  7. Prohibition of forced labor
  8. Prohibition of child labor
  9. Respect for the religious traditions and customs of the country of operation
  10. Recognition of and respect for freedom of association and the right to collective bargaining
  11. Proper management of employee safety and health
(4) Environment
  1. Basic attitude toward environmental initiatives
  2. Management of chemical substances indicated in laws and regulations, etc., in production processes, products, and services
  3. Control and reduction of waste water, sludge and air emissions
  4. Sustainable and efficient utilization of resources (energy, water, raw materials, etc.)
  5. Reduction of GHG (greenhouse gases)
  6. Identification, management, reduction, and responsible disposal or recycling of waste
  7. Initiatives related to biodiversity
(5) Fair business practices
  1. Basic attitude toward fair business practices
  2. Establishment of appropriate relationships with local governments and public officials in and outside countries where business activities are conducted
  3. Prevention of the giving and receiving of improper advantages with customers and trade partners, etc., in sales and purchasing activities, etc.
  4. Prevention of competition law violations in sales activities, etc.
  5. Rejection of relationships with antisocial forces/organizations
  6. Prevention of unauthorized use of a third party’s intellectual property and of illegal reproduction of copyrighted works
  7. Services for responding to complaints from outside the company and for consultations
  8. Prohibition of insider trading
  9. Prohibition of acts with conflicting interests
(6) Quality / safety
  1. Basic attitude toward product and service quality and safety
  2. Ensuring product and service quality and safety
  3. Appropriate response to product and service accidents and the circulation of defective goods
(7) Information security
  1. Basic attitude toward information security
  2. Defense against attacks on computer networks
  3. Protection of personal data and privacy
  4. Prevention of misuse of confidential information
(8) Supply chain
  1. Basic attitude toward the supply chain
  2. Use of raw materials not involved in conflict or crime (initiatives against conflict minerals)
(9) Community
  1. Initiatives to reduce negative effects on local communities
  2. Initiatives with local communities towards sustainable development

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.

Questionnaire Aggregate Results

Overview of questionnaire results

Questionnaire Aggregate Results

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 / safety, 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
(3) Labor 23 100 0 84 19
(4) Environment 15 100 0 77 24
(5) Fair business practices 20 100 20 78 24
(6) Quality / safety 7 100 0 90 19
(7) Information security 9 100 0 83 21
(8) Supply chain 7 100 0 64 29
(9) Community 4 100 0 72 27
全体 114 100 20 78 19

Results from supplemental questions

Knowledge about raw material suppliers (secondary suppliers)
Knowledge about raw material suppliers (secondary suppliers)
Certifications to provide products that are socially responsible
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
Certifications and assessments relating to the environment
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%
Indicators and disclosure relating to the environment
Reducing waste Reducing CO2 emissions Water use Emissions
Targets set 49% 46% 30% 22%
Targets made public 15% 20% 10% 5%
Grasp of results 82% 59% 79% 62%
Results made public 25% 27% 21% 16%
Renewable energy Recycling
Targets set 8% 42%
Targets made public 5% 15%
Biodiversity
Policy set 24%
Policy made public 14%
Environment-friendly initiatives for products delivered to the Asahi Group
Making efforts to save resources in development, design, and manufacturing of raw materials and materials 70%
Making efforts to reduce use of packaging materials 61%
Advancing recycling of packaging materials for raw materials and materials 57%

Sharing of the Survey Results and Efforts to Make Improvements

Feedback based on the results

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 CSR Action Guidelines.

On-site interviews

We visited five companies in 2018 and conducted interviews about concrete initiatives in the responses. As a result, we were able to confirm that measures were actually being implemented to deal with items that had been perceived as challenging in the questionnaire. We plan to visit 12 companies in 2019.

Moreover, when deciding on where to conduct the interviews, we prioritize raw material makers and make selections based on four criteria: (1) CST 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 believe that two-way dialogue on the basis of questionnaire responses can contribute to improved CSR activities for both the Asahi Group and suppliers, so this is something we will continue to engage in.

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