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 Basic Procurement Policies. We also ask our suppliers to undertake CSR initiatives based on the CSR Principles for Asahi Group Suppliers. We will build strong relationships of trust and long-term cooperative relationships with our suppliers to promote procurement activities with environmental and social considerations.
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.
To spread such policies and strategies throughout the Group and promote these activities in a Group-wide manner, we regularly hold Global Procurement Conferences and Group Procurement Section Conferences, which are attended by Group companies.
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 Basic Procurement Policies, 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 2018, no incidents were reported under this system.
We will continue to take and enhance the above initiatives in 2019 and thereafter to build strong relationships of trust and long-term cooperative relationships with more of our suppliers.