Our basic policy is to comply with the laws and regulations of each country in which we operate and to conduct procurement activities in the global markets for all necessary materials and services at an appropriate quality, price, and with delivery schedule based on fair business relationships. In order to tackle social issues such as the environment, human rights and labor, we strive to strengthen our supply chain to be sustainable and ethical to increase our customers’, business partners’, and our own corporate value.
Please refer here for our procurement policy.
We established the Procurement Division as a global organization that promotes sustainable procurement activities. In collaboration with the Business and Production Units, we are working towards optimal procurement activities and the promotion of sustainable, global procurement.
Mid-Term Target for the Supply Chain
In order to realize a sustainable supply chain, we establish a mid-term target as well as a yearly KPI for undertaking initiatives.
Mid-Term Target (2021 - 2024)
- Obtain a risk evaluation score* below Medium in all key suppliers
- Procure minerals only from RMI-certified smelters following the RMI certification process
*risk evaluation by RBA-SAQ
|Activity||Target Achievement Rate||Target Achievement Outlook|
|1||Agreement to Renesas' Supplier Code of Conduct from key suppliers||100%||100%|
|2||Obtain RBA SAQ responses from key suppliers||100%||31%|
|3||Conduct conflict minerals investigation following RMI procedures||100%||100%|
Educating Procurement Personnel
As part of promoting corporate ethics within the Procurement Division, we conduct various compliance education on topics such as the Renesas Code of Conduct as well for new employees and employees transferring into the team. We also conduct regular education and training for the most recent CSR issues, such as the environment, in order to penetrate and share information inside the team.
Promoting Sustainable Procurement through Fair and Equitable Transactions
In order to provide high-quality products and services to our customers, we believe it is important to promote sustainability throughout the supply chain, including taking into considerations the environmental, society, safety and security issues. Therefore, we have created the “Supply-Chain CSR Deployment Guidebook” (in Japanese and English) in 2013, which states specific activities and behaviors we would like the partners that make up our supply chain to comply with. We distributed this "Supply-Chain CSR Deployment Guidebook " to approximately 1,200 suppliers worldwide, promoting sustainable practices throughout the supply chain.
This Supply-Chain CSR Deployment Guidebook is in compliance with the “Supply-Chain CSR Deployment Guidebook” established by the Japan Electronics and Information Technology Industries Association (JEITA). We ask all partners within the Renesas supply chain including secondary suppliers and beyond to follow Renesas’ approach to sustainable procurement and ethical values, and to promote activities from this common perspective.
In 2021, we have re-evaluated the contents of the Supply-Chain CSR Deployment Guidebook after joining the RBA and revised them as the "Renesas Supply Chain Code of Conduct", which is available in Japanese, English and Chinese, to promote sustainability throughout the entire supply chain.
We have received agreements and endorsement from many of our suppliers on the initiatives listed in the Renesas Supply Chain Code of Conduct. So far, we have received endorsement from all of our key suppliers (64 companies in total).
|Number of suppliers||Number of agreed suppliers*||Agreement rate|
*Suppliers who we have agreed to take on the initiatives stated in the Renesas Supply Chain Code of Conduct, or companies whose Code of Conduct meets or exceeds the standards of the Renesas Supply Chain Code of Conduct.
<Initiative criteria which we ask partners to undertake initiatives based on the Renesas Supply Chain Code of Conduct>
|HEALTH AND SAFETY|
Click here to view the Renesas Supply Chain Code of Conduct.
Understanding Risks within the Supply Chain
At Renesas, we ask key suppliers selected based on 1) the transaction amount, 2) the replaceability and 3) the characteristics of the produced products to conduct self-tests and self-improvements using a self-diagnosis survey (note).
In addition, when starting procurement from new suppliers, we ask new suppliers to report on the actions they are taking towards the criteria listed in the Renesas Supply Chain Code of Conduct and to agree to undertake the necessary initiatives.
Furthermore, we use the risk assessment platform provided by RBA to investigate potential risks in all suppliers on a regular basis. If a supplier is classified as potentially high risk, we ask them to conduct self-tests and self-improvements using a self-diagnosis survey, similarly to key suppliers.
Note: From 2021, we use the RBA SAQ as the self-diagnosis survey.
In 2021, following the revision to the Renesas Supplier Code of Conduct, we distributed a simplified version of the self-assessment questionnaire (SAQ) to all suppliers. We received responses from 878 companies, and no critical risks were identified from the responses we received.
2021 Activities Results
|Simplified SAQ||Practical Audits*|
|Number of participating suppliers||878 companies||12 companies|
|Of which, direct materials and outsourced manufacturing suppliers||176 companies||10 companies|
*Total number of audits conducted by Renesas or a third party (including online audits)
Promotion of Green Procurement
Based on Environmental Policies, Renesas is contributing to realize a sustainable society by providing environmentally friendly products and solutions. To realize such a society, it is crucial to reduce the environmental impacts of the parts and materials used within the products. At Renesas, we promote “Green Procurement” where we preferentially procure environmentally conscious parts and materials from companies that are proactive in environmental conservation.
We ask all suppliers that provide parts and materials used as components of our products, suppliers that provide parts and materials used in our products, suppliers that provide parts and products used in the packaging of our products as well as suppliers that deliver our out-sourced products to comply with the Green Procurement Guideline by clarifying the green procurement standards and stating the aims of the guideline which is to reduce the environmental impact of Renesas products.
Through compliance with Environmental RoHS Directives and conducting surveys of the substances contained in purchased products at Renesas, we are able to confirm that each supplier is making progress in environmental initiatives. In addition, for procuring raw materials used in products, we preferentially purchase from suppliers who actively promote environmental protection, whose products have less environmental impact and contain no hazardous substances. We also actively and preferentially select environmentally conscious products in the procurement of goods such as business goods and IT equipment, based on the information on the environmental impact of those goods. We have confirmed that suppliers that cover over 95% of the total transaction amount of outsourced manufacturing recorded in the second half of 2019 and the first half of 2020 are ISO14001 certified.
Guidelines and Standards
|Green Procurement Guidelines (Japanese) Ver.3|
|Green Procurement Standard (Japanese) Ver.3|
|Management of Chemical Substances List (Japanese) Revision: Ver.10||XLS|
|Green Procurement Guidelines Ver.3|
|Green Procurement Standard Ver.3|
|Management of Chemical Substances List Revision: Ver.10||XLS|
Reference: Green Procurement Answer Format
|Green Procurement Questionnaire A, B (Japanese)||XLS|
|Investigation Sheet for Chemical Substances Included (Japanese)||XLS|
|Data Sheet for Purchase Unit (Japanese)||XLS|
|Green Procurement Questionnaire A, B||XLS|
|Investigation Sheet for Chemical Substances Included||XLS|
|Data Sheet for Purchase Unit||XLS|
- There is no format for "Environmental Hazardous Substance Analysis Data" report. Answers are provided as free-form. (Please refer to "Green Procurement Standard Ver.2")
- Answers are sent via email with the Excel file attached.
Responsible Minerals Procurement Policy
In order not to contribute to human rights violation and the destruction of environment within the supply chain, Renesas is working to realize responsible mineral procurement with the aim of procuring materials that does not include conflict minerals, from OECD conflict-affected and high-risk areas, in relations to risks listed on the Annex II of OECD’s guidelines.
Step 1: Establishment of Management System
In 2021, we revised the “Supply-Chain CSR Deployment Guidebook” as the “Renesas Supply Chain Code of Conduct”, based on the RBA code of conduct, and we ask customers to comply with this code of conduct. In addition, internal departments within Renesas work together to establish a structure to identify and evaluate risks.
Step 2: Identifying and Evaluating Risks within the Supply Chain
We work to realize responsible mineral procurement throughout the supply chain by conducting investigations of suppliers to identify smelters using the industrial standard RMI process and disclosing the results to our customers.
Step 3: Establishing and Executing Strategies Against Identified Risks
As a result of investigation, if an uncertified smelter is identified in the supply chain, we ask suppliers to make revisions. In addition, depending on the improvement status, we review transactions and execute suspensions if necessary.
Step 4: Annual Updates on Initiatives
The initiatives undertaken are disclosed on our website on an annual basis.
In 2020, we confirmed in an investigation around 3TG that there are 232 smelters of raw materials (minerals) used in Renesas Group’s procured suppliers, and all 232 smelters are listed on RMI’s Conformant Smelter List.
|Number of Identified Smelters||253||232||47||37||42||106|
|Number of Conformant Smelters||253||232||47||37||42||106|
Click here for the list of smelters and refiners identified in the Renesas Group supply chain
In addition to 3TG, from 2019, Renesas began monitoring cobalt and began identifying smelters of cobalt within the supply chain. However, because of the lack of regulations, we are facing difficulties in confirming whether the smelters are following the "Cobalt Report Templates (CRTs)" certification from Responsible Materials Initiative (RMI)”.
Reporting of Investigation Results
Our initiatives related to conflict minerals are embedded into Renesas’ sustainability promotion structure, and the initiatives are regularly reported to the Renesas management team by the Sustainability Promotion Office.
Click here for Renesas' Sustainability Promotion Structure
Renesas Joins the Responsible Business Alliance
Renesas has joined the Responsible Business Alliance (RBA) (announced on April 19, 2021), a nonprofit organization founded in 2004 committed to supporting the rights and well-being of workers and communities worldwide affected by global supply chains. By joining the RBA, Renesas will fully support the vision and goals of the RBA to ensure that its manufacturing processes are environmentally responsible and that its workers are treated with respect and dignity.