Building a resilient supply chain

Materiality 6

Relevant SDGs

8 Decent work and economic growth 12 Responsible consumption, production

Vision

A sustainable supply chain that remains sound at all times in the face of business risks and social issues

Strategy

Building a mechanism for supply chain risk assessments and immediate emergency response

Reason for Priority

In recent years, stakeholders have become increasingly concerned about social issues related to human rights, work environments, health and safety, and the environment in the supply chain. In addition, raw material price fluctuations due to various factors such as global extreme weather events and natural disasters, geopolitical influences, and international conflicts have increased the instability and risks in the supply chain.
Against this backdrop, the Nikon Group, together with procurement partners who share our vision and act in unison, believes that it is necessary to listen to the views of society and build a resilient supply chain that can address these social issues.

Commitment

As the environment surrounding the supply chain changes rapidly, it is imperative that we respond to factors causing instability and various risks. The Nikon Group is united in our efforts to strengthen our response to these challenges. Given these circumstances, we are expanding the scope of our response in our company to C (cost), D (delivery), and Q (quality), demand the same of our procurement. We strive to gain an understanding of procurement partner activities and the state of implementation with regard to sustainability.
Uncertainty and volatility continue to adversely affect parts procurement and logistics. In response, the Nikon Group endeavors to conduct transactions with procurement partners at fair prices and pursues collaborative activities from the perspective of Q+ESG. Our efforts are about building a resilient supply chain for our businesses and for sustainability. We intend to extend our initiatives gradually to include the suppliers of acquired companies that have joined the Nikon Group.
We seek strong relationships with procurement partners to visualize the supply chain, formulate and enhance business continuity plans (BCP), monitor CO2 emissions, and strengthen human rights due diligence. In this way, we build an infrastructure that responds flexibly to significantly changing business risks and social issues. As a result, we reduce risk and achieve sustainable growth.

Basic Approach

Nikon considers suppliers to be important partners helping us create and provide products and solutions useful for the world. Based on this belief, we strive to deepen mutual understanding and build trust with these procurement partners, and seek co-existence and co-prosperity. Furthermore, as a company working to build a better society and global environment as well as realize sustainable growth, we have established the Nikon Basic Procurement Policy to continually supply the world with useful products and solutions. Under this plan, we carry out our procurement activities in an honest and fair manner.

Nikon Basic Procurement Policy (Summary)

Procurement based on the concept of partnership

  1. 1.Sustainable corporate activities
  2. 2.Open-door procurement
  3. 3.Procurement founded in fair competition

Indicators and Targets

Indicators and Targets (Target Fiscal Year) FY2023 Plan FY2023 Results FY2024 Plan
Percentage of human rights due diligence conducted*1 (critical procurement partners): 100% (FY2025)
  1. 1.CSR questionnaire diagnosis rate for critical procurement partners: 100%
  2. 2.Conducting CSR audits with and requesting improvements from critical procurement partners
  1. 1.CSR survey diagnosis rate: 100% (247 companies)
  2. 2.CSR audits implemented (2 companies)
  3. 3.Written request for improvement (20 companies)
  1. 1.CSR questionnaire diagnosis rate for critical procurement partners: 100%
  2. 2.Completion of CSR audits and written improvement requests to critical procurement partners
Understanding BCP systems in the supply chain*2: 100% (FY2025)
  1. 1.Procurement partner location information visualization (13 companies)
  2. 2.Conduct BCP system surveys for procurement partners (50 or more companies)
  3. 3.Support for procurement partners requiring system establishment
  1. 1.Information and visualization of major procurement partner locations (15 companies)
  2. 2.Conduct BCP system surveys for procurement partners (61 companies)
  3. 3.Support for procurement partners requiring system establishment (10 companies)
  1. 1.Information and visualization of major partner locations (15 companies)
  2. 2.Conduct BCP system surveys for procurement partners (50 or more companies)
  3. 3.Provide assistance to procurement partners failing to meet Nikon standards as a result of the fiscal year 2023 survey
  1. *1Implement until improvement is completed when a survey or audit reveals correction is necessary.
  2. *2The number of suppliers within the scope of the supply chain requiring the establishment of a BCP system.

Support for Responsible Minerals Sourcing

Besides establishing its Responsible Minerals Sourcing Policy, the Nikon Group collaborates with procurement partners in conducting surveys on responsible minerals sourcing and due diligence.

Sustainability Report

For more information, refer to Building a resilient supply chain in the Sustainability Report.

Supply Chain Management

  • Basic Approach
  • Strategy
  • Governance
  • Risk Management
  • Indicators and Targets
  • Major Initiatives
  • Promoting CSR Procurement

Relevant Information

  • Procurement

    Contains the Nikon Basic Procurement Policy, the Nikon CSR Procurement Standards, the Responsible Minerals Sourcing Policy and the Nikon Green Procurement Standards.

Society/Labor

Sustainability