Basic Procurement Policy

Introduction

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.
To achieve this, in addition to ensuring quality and reducing procurement costs in its procurement activities, fulfilling the company's social responsibilities together with its suppliers across its entire supply chain is also seen as vitally important.
Based on this awareness, the company's procurement activities are centered on the following basic policy.

1.Adherence to legal regulations and social standards of conduct

In material procuring activities, we not only respect human rights, but also act with high ethical standards,complying with relevant laws and regulations as well as the spirit of such laws and regulations in Japan and countries overseas.
We also resolutely eliminate antisocial forces that threaten the order and safety of civil society.

2.Securing of safety and health

Safety and health will be secured by performing any and all necessary measures regarding safety and health during the procuring activity.

3.Active efforts in environmental problems

Actively promote the purchase environmentally-friendly products and implementation of environmentally-conscious construction works in an aim to achieve carbon neutrality across the supply chain and realize a sustainable society.

4.Management and protection of information

Information gained through the procuring activities will be properly controlled, to maintain secrecy.

5.Provision of fair participation opportunities

To perform high-quality, economic procurement, doors are open for desired domestic and foreign suppliers, and a fair participation opportunity will be provided.

6.Selection of suppliers

For the selection of suppliers, the reliability of management, cost, quality, safety of the product, accuracy of the supply and work schedule, consideration for safety and health, technical ability, after-sales service, stable supply ability, response during a problem, corporate stance (work in compliance/consideration for the environment/protection of human rights, and other CSR viewpoints) are reviewed as a whole, and is selected fairly.

7.Thorough crisis management

Develop 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 to minimize their impact on procurement activities.

8.Establishment of mutual trust with the supplier

Mutual trust will be built with the supplier through fair purchasing transactions, and we will work to establish a trade relationship that will allow both parties to prosper in the long term.

9.Contribution to the local societies

Through the procuring activities, we will work to become good partners with our suppliers, working together for the progress and development of the local societies.