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.
Asahi Breweries, Ltd., Asahi Soft Drinks Co., Ltd., Asahi Group Foods, Ltd., Asahi Europe, Asahi Breweries Europe, Asahi Beverages, Etika Beverages (7 companies)
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 / safety, (7) Information security, (8) Supply chain, (9) Community
|9 themes||47 topics|
|(1) Corporate governance||
|(2) Human rights||
|(5) Fair business practices||
|(6) Quality / safety||
|(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 / 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|
|(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|
|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 materials and materials||70%|
|Making efforts to reduce use of packaging materials||61%|
|Advancing recycling of packaging materials for raw materials and 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 CSR Action Guidelines.
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.
If the interview reveals that countermeasures for a particular issue are inadequate, we consider various possible countermeasures together with the supplier, including the introduction of initiatives being carried out by other companies and consulting about related laws with social insurance and labor consultants, lawyers, and Labor Standards Inspection Offices. The following are some specific examples.
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.