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CSR - Corporate Social Responsibility
Committed to People, Committed to the Future.

CSR Management in the Supply Chain

In order to fulfill CSR in regards to human rights, labor, and the environment in cooperation with suppliers, Toshiba Group continues to ensure that its suppliers are also committed to improving working conditions and reducing their environmental impact.

Medium- to Long-term Vision

Contributing to solving social issues in our supply chain through appropriate procurement transactions

  • Full notification of our procurement policy to our suppliers
  • Obtaining consent for the Toshiba Group Procurement Policy from new suppliers
    100%
    of our new suppliers
  • Keeping track of supplier activities, and advising on improvement

FY 2016 Achievement

  • Holding briefings for suppliers:
    • Explaining the Toshiba Group Procurement Policy
    • Explaining the Use of Conflict-Free Minerals which are stipulated in the Procurement Policy
  • Surveys of suppliers and providing instructions for improvement:
    • Conducting CSR Self-Assessment (EICC Self-Assessment Questionnaire Survey) and providing individual guidance based on the results
    • Conducting a conflict minerals survey and providing individual guidance based on the results
    • Conducting a supplier environmental conservation survey

Future Challenges and Approaches

We will continue to request that new suppliers consent and practice to the Toshiba Group Procurement Policy, and to strengthen our measures to monitor and support suppliers' compliance with the policy.
We will also educate our procurement employees about important CSR issues, such as compliance and handling conflict minerals, so that they can instruct and support our suppliers.

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Toshiba Group's Supply Chain

Toshiba Group procures a variety of raw materials and resources from suppliers all around the world.

In terms of the composition ratio of our procurement by business sector, energy and infrastructure accounts for 34% of our procurement costs, while electric devise account for 56%. By region, overseas suppliers account for 49% of the total expenditure.

In our efforts to fulfill our CSR throughout our supply chain, Toshiba Group takes a risk-based approach that gives importance to suppliers with whom we have a continuing business with, and that takes into account factors particular to the business sector and region.

Procurement Component Ratio by Business Segments and Regions (Internal Japan/overseas)(FY2016)

Procurement Component Ratio by Business Segments and Regions (Internal Japan/overseas)

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Toshiba Group Procurement Policy

Toshiba Group strives to build sound partnerships with suppliers through fair trading in compliance with procurement-related laws and regulations.

We request all our suppliers, who play an important role in the Toshiba Group companies' production and services, to consent and put into practice the Toshiba Group Procurement Policy. Whenever the contents of the said Policy are revised in keeping with social conditions, we inform all our suppliers both inside and outside Japan.

In addition to this Procurement Policy, we have set the Toshiba Group Green Procurement Guidelines in order to address environmental issues and the Toshiba Group Conflict Mineral Policy in order to address conflict minerals. We also have the Toshiba Group Standards of Conduct for our Group officers and employees.

Our corporate policy is to fulfill our CSR through fair trade and compliance with laws, regulations and social norms, as well as to build relationships of mutual understanding and trust together with our suppliers.

The History of the Revision of the Toshiba Group Procurement Policy
Time Contents
Feb 2015 We established the Toshiba Group Procurement Policy, and requested that our domestic and overseas suppliers comply with laws, regulations and social norms, give proper consideration to the environment etc.
May 2008 Revision We expressly informed our suppliers of our policy on giving consideration to human rights and OHS, and requested that they apply the policy's standards to their own procurement activities.
May 2012 Revision
  • We declared that we give priority consideration to suppliers who comply with laws, regulations and social norms and whether they take account of human rights, when selecting new suppliers and renewing contract.
  • We requested that our suppliers comply with our policy to prohibit bribery to any stakeholders (taking into account international anti-corruption regulations such as the UK's Bribery Act), human trafficking or slavery (taking into account the California Transparency in Supply Chains Act in the USA), and the use of conflict minerals (taking into account Dodd–Frank Wall Street Reform and Consumer Protection Act).
Oct 2014 Revision In the Procurement Policy, we expressly requested the promotion of activities that are in keeping with the principles of the United Nations Global Compact (UNGC) and the EICC (Electronic Industry Citizenship Coalition) Code of Conduct Toshiba is a member of these initiatives.

Toshiba Group Procurement Policy

Toshiba Group Green Procurement Guidelines

Toshiba Group Conflict Mineral Policy

Toshiba Group Standards of Conduct 3. Procurement

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Cooperation with Industry Organizations

Cooperation with Industry Organizations

In order to drive forward its CSR management in the supply chain in accordance with global standard, in June 2011, Toshiba joined the Electronic Industry Citizenship Coalition (EICC), the electronics industry's CSR promotion organization.

In order to fulfill CSR for labor, occupational health and safety, the environment, and ethical standards throughout the supply chain, we take measures in accordance with the spirit of the EICC Code of Conduct.

In June 2016, we held Japan's first EICC outreach meeting together with the EICC and EICC membership companies in Japan. To create a responsible supply chain, we presented case studies on the activities of companies inside and outside Japan, in addition to the latest global trends, EICC initiatives and tools. Also, in January 2017, we established the EICC Japan Network together with EICC member companies in Japan for the purpose of establishing and promoting the EICC Code of Conduct and solving common issues.

We request Toshiba Group company suppliers to carry out a CSR self-assessment each year in accordance with the EICC Code of Conduct depending on their respective industries and sizes, thereby checking how initiatives are being implemented regarding compliance with regulations and social norms, human rights, occupational health and safety, environmental conservation, and ethics. Based on assessment results, we provide guidance to individual suppliers in accordance with their risk levels, and request that they make improvements.

EICC

EICC Membership

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Promotion of the Supply Chain Management

In April 2007, Toshiba Group set up an organization dedicated to promoting CSR procurement within the procurement department at Toshiba's Head Office, which works to promote fair dealings with all our suppliers as well as CSR management in the supply chain.

The organization coordinates with various business divisions and related divisions such as the CSR office and the Environment office.

Training procurement employees

Compliance training of various types, such as training on the Toshiba Group Standards of Conduct and the Toshiba Group Procurement Policy, is included in our training programs for procurement personnel at all organizational levels, including the training program for new employees.

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Thorough Implementation measures based on the Toshiba Group Procurement Policy and its monitoring

Thorough Implementation measures based on the Procurement Policy

We request suppliers to consider CSR in accordance with Toshiba Group Procurement Policy. In FY2014, we revised the Policy and included expectations for our suppliers to act in accordance with the UN Global Compact and the EICC Code of Conduct and requested some 10,000 suppliers (cumulative numbers*) to abide by this revised content, and got consensus from them. In FY2016, we explained the policy to our suppliers and requested their consensus.

  • * As Toshiba Group companies conduct surveys based on each contract, we count only one contract in the case multiple contracts are concluded with one supplier.
    Additionally, the company numbers are approximate due to there being commercially sensitive information.

Toshiba Group Procurement Policy

Monitoring

Toshiba Group monitors the status of CSR management in the supply chains that have ongoing businesses at manufacturing sites at the time of quality audits and requests improvements and provides guidance as necessary. For new procurement transactions, we check the supplier's conformity with Toshiba Group's procurement and selection policies, its manufacturing sites and management structure, and whether it complies with laws and regulations on environment, human rights, and occupational health and safety.

Toshiba Group holds briefings to explain to suppliers its policies on the environment, human rights, and occupational health and safety. We also conduct supplier surveys to monitor their performance in accordance with the Toshiba Group Procurement Policy (including self-assessment) at each business site.

Suppliers participating in briefings and those covered by the survey
(FY2016, Toshiba Group, Cumulative numbers)
Topic Participation in briefings Surveys* On - site Audit*
Human rights
Safety
3,453 2,756 610
Environment 2,916 5,973 383
Total 6,369 8,729 993

*The survey includes self-inspections using the EICC SAQ (Self-Assessment Questionnaire), third-party audits, and surveys/audits using our own standards.

Promotion of CSR Management in Supply Chain (Toshiba Group, Cumulative numbers)

Promotion of CSR Management in Supply Chain (Toshiba Group, Cumulative numbers)

Actions on Suppliers in the Event of Breach of the Procurement Policy

If a supplier violates the standard of transacton, we request the supplier to implement remedial measures and provide guidance and support as necessary. If the remedial measure is deemed to be unsatisfactory, we suspend transactions with the supplier.

Suppliers subject to guidance & support and suspension of transactions
(FY2016, Toshiba Group, Cumulative numbers)
Topic Guidance and Support Suspension of transactions
Human rights
Safety
66 0
Environment 222 0
Examples of supplier guidance and instructions (FY2016)
Environmental Activities
  • Guidance on how to store waste and hazardous materials
  • Request for disclosure of data on improvements regarding waste water
Human Rights and Occupational Health & Safety
  • Guidance on how to document working conditions and distribute the documents
  • Instructing smelters to obtain conflict-free verification*
  • Request for safety and health education for employees and guidance on how to provide such education
  • Confirming safety and health standards for company cafeterias

*Conflict-free verification: a system by which a third-party organization verifies that an organization is conflict-free; i.e. does not use conflict minerals


Major survey items during the audit of outsourced Toshiba-brand manufacturers
Category Survey items
CSR management at the companies audited
  • Labor disputes
  • Communication with employees
  • Labor agreements and working hours
  • Workplace safety
  • Employee health conditions
  • Environmental initiatives such as the acquisition of ISO14001 certification
CSR management with regard to the supply chain of the companies audited
  • Adoption of CSR policy that encompasses consideration for human rights, labor conditions, and the environment;
  • Communication of the CSR policy to suppliers and their status of compliance with the policy;
  • Regulations concerning plant wastewater and air emissions

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Partnerships with Suppliers

Toshiba Group strives to build with our suppliers partnerships founded on mutual trust. We are working to improve these partnerships by supporting our suppliers and organizing awareness-raising activities. We do this so that our suppliers can provide a reliable supply of high-quality, appropriately priced goods that give consideration to labor conditions, OHS and the environment.

Activity Example: Initiatives at Toshiba Information Equipment (Philippines), Inc.

Auditing of suppliersAuditing of suppliers

In 2002, Toshiba Information Equipment (Philippines), Inc. (TIP), a production base for hard disk drives, became the first Asian company to acquire SA8000*1 certification. TIP not only objectively listens to its employees' opinions in order to improve its work environment but has also spread this initiative to its suppliers. In order to enhance CSR management at its suppliers, TIP continues to implement monthly audits (12 suppliers per year). To date, a total of 161 audits have been conducted since 2005, when such audits began. TIP confirms the status of CSR initiatives at suppliers in accordance with the Toshiba Group Standards of Conduct, Toshiba Group Procurement Policy, SA8000 and OHSAS18001*2 standards, EICC Code of Conduct, and other guidelines. If suppliers fail to satisfy these standards, TIP demands corrective actions be taken and provides guidance and support for improvement.

Major problems identified for improvement during audits include those related to labor conditions (e.g., working hours and holidays) as well as health and safety management in the workplace. Going forward, TIP will continue to support its suppliers in promoting CSR initiatives so as to establish long-term partnerships through auditing and guidance.

  • *1 SA8000 refers to a set of international standards established by Social Accountability International for evaluating work environments.
  • *2 OHSAS18001 (Occupational Health and Safety Assessment Series) is a set of standards for identifying occupational health and safety risks as well as measures to cope with the same, and it also serves to clarify where responsibilities lie.

Activity Example: Participating in the supplier CSR promotion program of the department of labor and employment in the Philippines

Training for a supplierTraining for a supplier

Toshiba Information Equipment (Philippines), Inc. (TIP) is promoting the KAPATIRAN supplier partnership program, which was introduced in 2011 by the Philippine Department of Labor and Employment. This program aims to create a system in which large companies ("Big Brothers") guide and help small and medium enterprises ("Small Brothers") to be compliant with general labor standards including occupational safety and health standards. TIP was the country's first electronic company that participated in the program.

Based on the program, TIP selects 10 companies from among its suppliers each year and educates and supports these companies for a period of one year. When the program is over, TIP submits a report to the Department of Labor and Employment. In addition to on-site training, TIP also invites external instructors for a variety of training programs. Through this program TIP support its suppliers in promoting CSR management and also establishes strong partnerships with them.

Highlights of CSR Activities in 2014: Materialities and CSR management in the supply chain Annual topics

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Addressing the Conflict Minerals Issue

Since Section 1502 on conflict minerals of the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) enacted in January 2013, companies listed in American Exchange are required to report on the use of conflict minerals mined in the Democratic Republic of the Congo and its adjoining countries. Toshiba Group is not a listed company, however, as a part of the supply chain of listed companies, investigates and reports to our customers.

Prior to the enactment of the Act, Toshiba Group organized an internal system to address conflict minerals issues, and established the Toshiba Group Conflict Mineral Policy and publicized it on its website in October 2011. For humanitarian reasons, Toshiba Group's policy prohibits the use of raw materials such as tin, tantalum, tungsten, and gold mined in the Democratic Republic of the Congo and its neighboring countries which violate human rights.

Toshiba Group Conflict Mineral Policy

We are developing and implementing a policy prohibiting use of tin, coltan, wolframite, tantalum, tungsten*1, and gold, whose extraction or trade supports conflict in the Democratic Republic of Congo or adjoining countries, and/or contributes to inhumane treatment, including human trafficking, slavery, forced labor, child labor, torture and war crimes in the region.

  • We will manage our supply chain appropriately in accordance with the OECD (Organisation for Economic Co-operation and Development) Due Diligence Guidance (PDF:3.5MB) for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.
  • We will carry out our due diligence with our supply chain using the EICC-GeSI*2 Conflict Minerals Reporting Template (CMRT) developed by EICC and GeSI.
  • Once a validated supply chain is established through initiatives such as full-fledged smelter verification under EICC-GeSI's Conflict-Free Smelter (CFS) Program or development of a mineral tracing program, we will procure minerals through such validated supply chain.
  • Our efforts are not intended at altogether banning procurement of minerals from the DRC and adjoining countries but to assure sourcing from responsible sources in the region.

We request our suppliers to cooperate with us in our efforts to assure procurement of non-conflict minerals in accordance with the Toshiba Group Conflict Mineral Policy.

  • *1 Derivatives of cassiterite, coltan and wolframite
  • *2 Global e-Sustainability Initiative (an initiative for achieving integrated social and environmental sustainability through ICT)

Toshiba Group's Promotion Structure for the Use of Conflict-Free Minerals

Headed by an Executive Officer in charge of CSR, the Conflict Minerals Management Committee consisting of related corporate divisions promotes activities in accordance with the Toshiba Group Conflict Mineral Policy Guidelines. Each in-house company appoints a person responsible for conflict minerals and they share information at the In-house Conflict Minerals Management Committee meetings.

Toshiba Group's Promotion Structure for the Use of Conflict-free Minerals

Toshiba Group's Promotion Structure for the Use of Conflict-free Minerals

Conflict Minerals Survey

In FY2011, we conducted a survey of Toshiba Group suppliers on their understanding of conflict minerals and the use of them as well as on details about the smelters.

In June 2013, we started a survey using EICC/GeSI Conflict Minerals Reporting Template (CMRT).

We surveyed 1,352 suppliers that might use 3TG* in FY2016.

We also supported the management of JEITA's Conflict Minerals Inquiry Briefings as a member of JEITA Survey Committee on Responsible Minerals Procurement. We explained to approx. 1,100 participants the questions in the latest version of CMRT and issues in the FY2016 survey.

JEITA HP :
JEITA Conflict Minerals Inquiry Briefings (English) (PDF:866KB)

  • * Tin, tantalum, tungsten, and gold

Cooperation and communication with external organizations

In order to solve the issue of conflict minerals, and to promote the practice and awareness of conflict-free procurement, we actively join industry organizations and public-private partnership projects, as well as engaging in communication with NGOs.

Key examples of external cooperation and dialogues regarding conflict minerals
Organizations and Projects related Toshiba Group Activities
EICC*1 Joined in June 2011
CFS*2 Participate in meetings and workshops as a member
JEITA*3
Responsible Minerals Trade Working Group
Joined in November 2011 and promote the cooperation with industry organizations.
Joined the Conflict Free Sourcing Working Group within the Responsible Minerals Trade Working Group in May 2014, and has worked to promote and raise awareness of conflict-free minerals procurement in cooperation with the automobile and electrical industries of Japan.
As a member of this working group, issued a document to smelters which have not got Conflict-Free Certification demanding to comply certification program
PPA*4 Contributing to efforts to cut off sources of funding for armed groups and provide economic support to the Democratic Republic of the Congo and its neighboring countries since November 2011.
  • *1 Electronic Industry Citizenship Coalition
  • *2 Conflict Free Sourcing Initiative
  • *3 Japan Electronics and Information Technology Industries Association
  • *4 The Public-private Alliance for Responsible Minerals Trade, a public-private project advocated by the U.S. government.

JEITA Responsible Minerals Trade Working Group

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Green Procurement/Green Purchase

Green Procurement

Toshiba Group promotes green procurement as a part of our environmental considerations in the manufacturing processes. Following our Green Procurement Guidelines established in 1999, we endeavor to procure products, parts and materials that have a low environmental impact from suppliers who actively promote environmental protection. We revise the Green Procurement Guidelines whenever necessary in order to respond to circumstances such as stricter regulations on chemicals contained in products. We published Ver.5.0* of our Green Procurement Guidelines in January 2017.

In Ver.5.0 of our Green Procurement Guidelines, we reviewed and added commentaries on Rank A substances (prohibited substances) and Rank B substances (substances requiring control) in the environment-related substance list in accordance with the latest legal regulations.

We ask our suppliers for their understanding and cooperation regarding green procurement, evaluate their environmental performance, and conduct inquiries and assessments of chemical substances contained in the goods procured.

With regard to environmental performance, we request our suppliers to conduct a voluntary assessment of the level of greenness of their environmental activities (Toshiba standards) based on the environmental standard ISO 14001 by using a standard format and to report on assessment results. Assessment items include suppliers' environmental policies (corporate philosophy, environmental organizations, environmental improvement plans, environmental education, etc.), programs regarding environmental issues (air pollution, water contamination, waste, resource and energy consumption, foul odors, noise and vibration, recycling, biodiversity, etc.), and whether there are systems for managing the chemicals contained in products. In selecting suppliers, we assign priority based on the ranks of the suppliers and also encourage them to improve their level of greenness.

Green Procurement Guidelines (English, Japanese and Chinese)

The level of greenness of suppliers during FY2016 was 96.1%
(includes Rank S and Rank A)

The level of greenness of suppliers during FY2016 was 96.1% (includes Rank S and Rank A)

Green Purchase: Stationery and Other Office Supplies

With regard to procurement of stationery and other office supplies, Group companies strive to select procurement items that have lower environmental impacts. For example, environmentally conscious products such as Eco Mark certified products, products made of recycled materials, recyclable products, and products that can be separated for collection are registered as environmentally recommended products for procurement by Toshiba Group.

We are implementing green procurement for personal computers, copiers, copier paper, stationery and other office supplies.

Green Procurement Guidelines (English, Japanese and Chinese)

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Reducing CO2 Emissions in the Supply Chain

Toshiba Group endeavors to keep track of and calculate the total amount of GHG*1 emissions throughout the supply chain. We use a calculation method based on the guidelines released by the Ministry of the Environment, Japan*2, calculate the amount of emissions in every category, then compare the values with the previous year's by category.

We consider the promoting of effective measures throughout the life cycle to be important. We do this by ascertaining the amount of emissions used in such a way, quantitatively and by category.

  • *1 CO2,CH4,N2O,HFCs,PFCs,SF6,NF3
  • *2 Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain

Environmental Activity: Ensuring transparency of supply chain GHG emissions from corporate activities in all categories

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