Sustainable Procurement Guidelines

Introduction

To achieve a sustainable society, the international community has recently called upon companies to go beyond simply ensuring quality and reducing procurement costs in their procurement activities, but to fulfill their social responsibility in working with their suppliers across the entire supply chain to tackle environmental issues, human rights issues, and other social issues.
To further incorporate measures for achieving a sustainable society, these guidelines constitute a revision of "We ask of our suppliers" established based on the Basic Procurement Policy, which was established in line with the Energia Group Corporate Charter of Conduct, the Chugoku Electric Power Group Environmental Action Plan, and the Chugoku Electric Group Human Rights Policy.
The Chugoku Electric Power Company strives to be a "company trusted and selected by society", through its acceptance of its duties as a public utility bearing the lifeline of a region. The company aims to achieve this by promoting measures addressing social issues across the entire supply chain through its procurement activities led by its Basic Procurement Policy.
We ask our supplies to implement these guidelines in your business activities, and to request the same of your suppliers.
Further, these guidelines will be continually updated to better reflect future changes and developments in international standards.

1.Compliance with laws and regulations, and social norms

Suppliers shall obey all relevant laws and regulations, and social norms and rules, in practice and in spirit, for each country and region in which they conduct business

2.Respect for human rights

(1) Observe all relevant laws and regulations, and social norms on the respect for human rights and labor in each country, and take cultural considerations into account
(2) Do not engage in child labor or forced labor practices
(3) Do not engage in any form of discrimination or inhumane treatment, and give consideration to the vulnerable in society
(4) Respect workers' rights, including the freedom of association and the right to collective bargaining

3.Securing of safety and health

(1) Observe all relevant laws and regulations, and social norms on safety and health
(2) Establish a safe, healthy workplace and work procedures by identifying, evaluating, and resolving safety and health problems and risks in the workplace
(3) Provide information, and educate and train workers to improve safety and health in the workplace, and respond to any issues that arise

4.Active address to environmental issues

(1) Observe all relevant laws and regulations, and social norms on the environment
(2) Build, or work towards building, an environment management system to implement measures for reducing the environmental impact of business activities (implementing green procurement, active pursuit of environmentally-friendly product development and construction methods, etc.)
(3) Work with the Company and take active steps toward achieving carbon neutrality across the supply chain

5.Information management and protection

(1) Observe all relevant laws and regulations, and social norms on the handling of information learned in the course of transactions
(2) Work toward preventing damage to the supply chain by implementing protective measures against cyber attack
(3) Engage in the proper management of confidential information and the proper management and protection of personal information

6.Fair, equitable, and stable transaction

(1) Observe all relevant laws and regulations, and social norms on corporate activities (building of fair and equitable relationships with suppliers, etc.)
(2) Ensure proper quality, pricing, and adherence to delivery deadlines
(3) Develop a supply structure that provides for a stable supply of materials and services
(4) Provide assistance on prompt and appropriate after-sales service in the case of an emergency
(5) Do not allow for any relationships with anti-social forces threatening social order and safety

7.Thorough crisis management

Endeavor to maintain business continuity by developing a response system in normal times for large-scale disasters, accidents, terrorist incidents, cyber attacks and other events, and widespread infectious diseases and other phenomena.

8.Building of mutual relationships of trust

Work to build a mutual relationship of trust by promoting good communication between suppliers and the Company through transactions with the Company