Supply Chain Management
Supply Chain CSR Procurement
Disseminating Supplier Guidelines
Casio carries out the majority of its production outside Japan at Casio plants and manufacturing subcontractors (electronic manufacturing services). Every year, Casio holds briefings on its Procurement Policies in Southern China.
Initially, these briefings simply involved Casio explaining its business policies to suppliers and asking them to undertake initiatives. Since fiscal 2010, however, Casio has been using these briefings as an opportunity for two-way communication. Suppliers are invited to participate actively, for instance by asking those with exemplary CSR initiatives to present examples of their efforts to promote and improve CSR. This enables the sharing of useful case studies and know-how for addressing CSR. By working collaboratively with its suppliers in this way, Casio is continually improving the level of CSR performance in its supply chain.
In June 2009, Casio revised the Basic Business Agreement it signs with suppliers in Japan. Clauses were added to require measures such as legal compliance, respect for human rights, and environmental protection. The new agreement is being rolled out steadily.
Since 2019, a business strategy briefing has also been held in Japan every year to explain Casio’s procurement strategy and policies. In this way, Casio has set up opportunities to explain its Procurement Policies to major suppliers all over the world and is actively sharing and exchanging information to build close reciprocal relationships.
Business Strategy Briefing in Japan
Casio invited 160 participants from about 100 business partners to a business strategy briefing. The briefing was postponed from 2020 to 2023 due to the COVID-19 pandemic. It was held in 2024 for the first time in five years amid stepped up efforts to communicate with suppliers.
Supplier Message
Ryota Sasaki
Manager, Sales Headquarters
MinebeaMitsumi Inc.
MinebeaMitsumi is a parts manufacturer that has been supplying analog semiconductors, switches, stepping motors, and other products to Casio Computer for many years. We understand the Casio corporate creed of “Creativity and Contribution” and the Casio mission of “Welcoming the Challenge of Helping to Build a More Sustainable Global Society,” and as part of our efforts to help create a sustainable society, we cooperate by attending Casio business strategy briefings and submitting questionnaire surveys on CSR performance.
In recent years, companies are required to take a stance on environmental and social issues in concert with their business activities, so our company is also aiming to achieve a balance between the sustainability of our company and the earth and society’s sustainability. To this end, our entire group is working to contribute to environmental protection and the sustainable development of humanity.
Specifically, this includes efforts to reduce CO2 emissions in our business activities, the use of renewable energy from our own power generation facilities, and the MMI Beyond Zero initiative. With this initiative, we increase the energy-saving performance of our products to reduce the power consumption of our customers and their customers, which, in turn, contributes to CO2 emissions reduction worldwide. We believe that adopting MinebeaMitsumi products contributes to the business activities of our customers, including Casio Computer. We are also keenly aware of our responsibility in supplying our products, and we strive to maintain high quality by strengthening our quality assurance system, and to maintain a stable supply and production system that is resilient to disasters and other problems.
In our sales activities, the MinebeaMitsumi Group will provide robust support for the sustainable growth of companies with a deep understanding of the needs of our customers and by always providing optimal proposals. We will make the most of our achievements thus far and do our utmost to remain a valuable partner to Casio Computer.
Briefing on Procurement Policies in China
Casio carries out the majority of its production outside Japan at Casio plants and manufacturing subcontractors (electronic manufacturing services). Every year, Casio holds briefings on its Procurement Policies in Southern China. Since 2020, however, the briefing has been postponed due to the COVID-19 pandemic. While no decision has been made yet about a briefing in 2024, we are engaging in ongoing communication with suppliers.
Comprehensive Management of CSR Performance
In fiscal 2008, Casio started conducting a questionnaire survey* of principal suppliers in Japan on CSR performance in order to confirm the status of CSR procurement. In fiscal 2010, the survey was expanded to include suppliers in China and Thailand.
Based on the fiscal 2012 survey results and changes in society’s expectations, the questionnaire for suppliers was revised in fiscal 2013. Overlapping questions were eliminated and a new theme, policies for avoiding conflict minerals, was added.
The fiscal 2024 questionnaire was sent to 144 companies in Japan, and responses were received from 143 companies, for a response rate of 99.247%, clearly indicating suppliers’ high level of interest in CSR fulfillment. For suppliers outside Japan, responses were received from 248 companies (189 companies in China and 59 companies in Thailand), for a response rate of 100%, the same as in fiscal 2023. Again, the great concern for CSR fulfillment among suppliers is clear. Casio compiles and analyses the response data, and shares the results with suppliers, along with Casio's approach to CSR procurement.
Since fiscal 2011, Casio has been conducting onsite audits of major suppliers in China and Thailand with local staff members of the CSR promotion projects launched at sites in those countries. In fiscal 2012, the company started planning onsite inspections performed mainly by local Casio staff, and the number of visits is increasing.
In fiscal 2022, Casio postponed onsite inspections in China and ASEAN countries due to the spread of COVID-19. Even with the suspension in inspections due to the COVID-19 pandemic, it has cumulatively covered almost all suppliers. Going forward, Casio will continue onsite inspections with the aim of instilling commitment to CSR throughout the supply chain.
CSR inspections were also conducted at the request of a major distribution customer at three of Casio’s plants.
*The questionnaire was prepared in accordance with a Supplier Checklist for CSR Procurement based upon the Guidebook for Supply Chain Implementation of CSR Procurement published by the Japan Electronics and Information Technology Industries Association (JEITA). It covered: (1) human rights and labor conditions; (2) health and safety; (3) the environment; (4) fair transactions and ethics; (5) quality and consumer safety; (6) information security; and (7) social contribution.
A list of the items included in each category of the questionnaire is available here.
Questionnaire results
Questionnaire given to a total of 392 suppliers
Responses to all questions received from 391 suppliers (99.7% response rate)
Status of responses by CSR category
[ China and Thailand ]
An abstract five-point evaluation system (for example: 5 = sufficient measures, 3 = not enough measures, and 1 = no measures) was used until fiscal 2018. Starting in 2019 however, specific achievement levels are listed for each and every question, just like in Japan, which started doing this in fiscal 2018. This helps to more objectively assess the current state of CSR activities at suppliers. In addition, the guidelines for further improvement have also been clarified.
As a result, the evaluation scores were lower than 2019, but there were no serious problems requiring an urgent response. In addition, points for improvement were progressively clarified for each supplier and improvement measures were requested.
Responses by CSR category in China and Thailand
Responses by CSR category |
|
|---|---|
| 0 Overall Promotion of Corporate Social Responsibility | 3.8 |
| Ⅰ Human Rights and Labor | 4.4 |
| Ⅱ Occupational Health and Safety | 4.4 |
| Ⅲ Environment | 4.5 |
| Ⅳ Fair Trading | 4.4 |
| Ⅴ Product Quality and Safety | 4.6 |
| Ⅵ Information Security | 4.4 |
| Ⅶ Contribution to Society | 3.7 |
| Total | 4.3 |
[ Japan ]
Points for improvement were progressively clarified for each supplier and, after discussion, improvement measures were requested.
Japan responses by CSR category
| Responses by CSR category | |
|---|---|
| 0 Overall Promotion of Corporate Social Responsibility | 3.9 |
| Ⅰ Human Rights and Labor | 4.5 |
| Ⅱ Occupational Health and Safety | 4.4 |
| Ⅲ Environment | 4.3 |
| Ⅳ Fair Trading | 4.2 |
| Ⅴ Product Quality and Safety | 4.5 |
| Ⅵ Information Security | 4.2 |
| Ⅶ Contribution to Society | 3.5 |
| Total | 4.2 |
Selection of new suppliers
Based on the Procurement Policies, before Casio starts doing business with a new supplier, a comprehensive evaluation is carried out. The prospective supplier is checked based on the following criteria: compliance with laws and social norms, environmental protection measures, proper data protection, respect for intellectual property rights, management soundness and stability, outstanding technology development capabilities, ability to provide the desired price, quality, and a stable supply, and capabilities for online transactions.
Promotion of green procurement with business partners
With the cooperation of suppliers, the Technical Planning Department in the CS Headquarters at Casio Computer Co., Ltd. is promoting green procurement that considers supplier measures to protect the global environment.
Improving CSR across the supply chain
Avoiding Any Use of Conflict Minerals
Some minerals, such as tin, tantalum, tungsten, and gold, produced in the Democratic Republic of Congo (DRC) and neighboring African countries have become a source of funding for armed groups and anti-government forces carrying out atrocities. They are called conflict minerals because of their potential to promote conflict, human rights violations, and environmental destruction.
Wanting no part in human rights violations and environmental destruction, Casio’s stance is to completely avoid the use of conflict minerals. The group will continue its efforts to avoid the use of such minerals by working closely with suppliers.
In January 2013, Casio revised its Procurement Policies and Supplier Guidelines, adding a ban on the use of conflict minerals. A question about policies to avoid the use of conflict minerals was also added to the CSR questionnaire sent to suppliers in Japan.
In fiscal 2014, Casio group companies surveyed suppliers worldwide about the use of conflict minerals, using the EICC & GeSI* Conflict Minerals Reporting Template. Worldwide, 440 responses were received in fiscal 2024. The response rate was 99.1%.
There are inherent difficulties in conflict mineral investigation, as strict survey implementation requires going all the way back up the supply chain to the smelters. Casio will continue to collect relevant information including customer reactions and industry trends in the US, EU and other regions.
Casio adopts a policy of using minerals that are legally mined or acquired and are not involved in conflicts, even when those minerals were mined in the Democratic Republic of Congo (DRC) or its neighboring countries, and regardless of any conflict in that region.
As a member of the Responsible Mineral Trade Working Group of the Japan Electronics and Information Technology Industries Association (JEITA), Casio is also working to improve conflict mineral survey activities in the supply chain through industry collaboration.
Reduction of Greenhouse Gas Emissions by Suppliers
In calculating greenhouse gas emissions, Casio differentiates between emissions from its own business activities (Scope 1 and Scope 2) and those occurring throughout the value chain, from both upstream and downstream sources (Scope 3). Among these, greenhouse gas emissions resulting from purchased goods and services account for over 60% of total emissions. In order to reduce this category of greenhouse gas emissions, Casio is working to promote emissions reduction activities throughout the entire value chain, with a focus on encouraging key suppliers to set emissions reduction goals.
As of the first fiscal year in which these activities were undertaken, the current status of relevant efforts for respondents to the fiscal 2021 CSR survey was verified. Starting in fiscal 2022, these verification efforts will be further expanded to include greenhouse gas emissions for each individual supplier and the specific status of actual activities being pursued.
At present, Casio is working to determine activity policies for the coming fiscal year and beyond, taking into account results obtained in fiscal 2021, as well as to implement the PDCA cycle, with the aim of achieving a 30% reduction of greenhouse gas emissions by fiscal 2031 in comparison with fiscal 2019 levels as a group-wide objective.