SUBARU
Supplier
ＣＳＲ Guidelines
Contents
I. Introduction p.1
II. The SUBARU Group‘s CSR p. 2 - 7
1. SUBARU’s Vision
- Delivering happiness to all -
2. SUBARU Global Sustainability Policy
3. Six Priority Areas for CSR
4. CSR Promotion System
5. Relationship to Stakeholders
6. Fundamental Procurement Policy
7. Human Rights Policy
8. Responsibility of Conflict Minerals Procurement Policy
III. Topics and Points in the Supplier CSR Guidelines p. 8 - 11
1. Safety and Quality
2. Human Rights and Labor Issues
3. Environment
4. Compliance
5. Information Disclosure
IV. Voluntary Inspection Checklist p. 12
SUBARU Supplier CSR Guidelines
1
I. Introduction
Public concern about corporate social responsibility (CSR) is increasing year
after year against the backdrop of social issues triggered by such environmental
changes as global warming, globalization and advances in IT. Now that the United
Nations (UN) has adopted the Sustainable Development Goals (SDGs) and that
these goals are to be reflected in each country’s economic policies, the resolution
of social issues and economic (corporate) development are now the integral halves
of the same whole.
In 2020, we established SUBARU Global Sustainability Policy, in replacement of
conventional CSR Policy, based on the belief that SUBARU had the responsibility
to respect all stakeholders through compliance with laws, human rights and social
norms, and a mission to contribute to the development of a sustainable society
through our business activities.
Amid our rapidly changing social environment, we reviewed our existing Eight
CSR Action Items, based on stakeholder questionnaires and other feedback, and
established Six Priority Areas for CSR in STEP, our mid-term management vision
for the period 2018 through 2025. We aim to become a company trusted by
everyone and successfully combine the creation of a sustainable society with the
enhancement of corporate value by disclosing information about each of those six
priority areas to our stakeholders, engaging in dialogue with them, and reflecting
this in the management of the business.
In the context of this, in 2012, we issued the first edition of the SUBARU Supplier
CSR Guidelines, which brought together our CSR action item in the field of
procurement, due to the need for efforts throughout the supply chain in the practice
of CSR. Following the review of our priority areas for CSR, we have recently
revised the content of “II. The SUBARU Group’s CSR.”
We are aware that these points are everyday practice in the context of our long-
standing relationships of trust with our suppliers, rather than being something new.
However, we hope to share our approach to CSR at a deeper level by documenting
these points anew.
We would like to ask all our suppliers for their understanding and cooperation in
utilizing the guidelines to be of assistance in your practice of CSR while, at the
same time, expanding and promoting the guidelines among your own suppliers to
facilitate our mutual growth through CSR.
Purchasing Committee
SUBARU CORPORATION
SUBARU Supplier CSR Guidelines
2
II. The SUBARU Group's CSR
In the May 2021 mid-term management vision progress briefing for "STEP", SUBARU
consolidated the multiple corporate principles into three key pillars.
1. SUBARU’s Vision
-
“Delivering
Happiness to All” -
Our corporate statement is “We aim to be a compelling company with a strong market
presence built upon our customer-first principle.”
The value which SUBARU Group delivers to our customers is “Enjoyment and Peace of
Mind.” We recognize that this is a value we must deliver to our customers in order to
deepen the SUBARU Difference, not influenced by the changes in the times or external
environment and further enhance our brand.
Our vision is “delivering happiness to all.” We established this vision when we changed
our company name to SUBARU CORPORATION. This vision has come to us as
watching what our customers do: we learned what SUBARU should do from our
customers.
We will raise the medium- to long-term corporate value by continuously growing the
Automobile Division and Aerospace Division as a global brand.
SUBARU Supplier CSR Guidelines
3
2. SUBARU Global Sustainability Policy:
We, SUBARU Group*, are committed to sustainable business practices designed to
promote harmony between people, society and the environment in the following ways:
(1) Through our business activities, we will contribute to the resolution of various
social issues, including the protection of the global environment, and to the
creation of a sustainable society.
(2) Respecting the quality and originality of our products, we will continue to provide
SUBARU
’
s unique value using advanced technologies and enrich the lives of all
those involved with the SUBARU Group.
(3) As a good corporate citizen in the international community, we respect human rights,
diverse values and individuality, and treat all stakeholders with sincerity in every
interaction.
(4) We strive to maintain and advance the workplace environment so that employees
can work safely in peace, and with a sense of satisfaction.
(5) We respect international rules and the laws and regulations of each country and
region, as well as local culture and customs, and pursue fair and transparent
corporate governance.
(6) We make use of dialogue with stakeholders to management decisions and disclose
corporate information in a timely and proper manner.
*SUBARU Group includes SUBARU Corporation and its all subsidiaries.
SUBARU Supplier CSR Guidelines
４
3
．
Six Priority Areas for CSR
In order for the SUBARU Group to contribute to society through its business and meet
the expectations and demands of its stakeholders, we believe it is necessary to promote
and ingrain CSR initiatives on a group-wide and global basis. To this end, we have
established the Six Priority Areas for CSR - "People-oriented Car Culture," "Resonance
and Coexistence," "Peace of Mind," "Diversity," "Environment," and "Compliance" - in
line with our mid-term management vision "STEP”.
By adopting the concept of the Six Priority Areas for CSR while conducting business, we
will fulfill our social responsibility as a corporation and will continue to deliver
“Enjoyment and Peace of Mind” to all of our stakeholders, including our customers. The
SUBARU Group will become a company trusted by society as a truly global company
and will contribute to the creation of a more affluent and sustainable society.
SUBARU Group’s
Six Priority Areas for
CSR
Vision for 2025 Contribution to SDGs
Main object categories
of "Topics and Points in
the Supplier CSR
Guidelines”
(P8 - 11)
People-oriented Car
Culture
Become a company that
enriches people’s lives and
minds as a partner
1. Safety and Quality
Resonance and
Coexistence
Become a company that is
widely trusted by, resonates
and coexists with society.
1. Safety and Quality
5. Information Disclosure
Peace of Mind
Become a company that
provides the utmost peace of
mind to all stakeholders.
1. Safety and Quality
Diversity
Promote businesses that
create diverse forms of
market values while
respecting the diverse values
of all people.
2. Human Rights and
Labor Issues
Environment
Cherish and protect the
global environment – the
earth, the sky and nature –
through Group-wide
activities.
3. Environment
Compliance
Act in good faith and become
a company that is trusted by
and resonates with society.
4. Compliance
3. Good Health and Well-Being
5. Gender Equality
8. Decent Work and Economic Growth
9. Industry, Innovation, and Infrastructure
11. Sustainable Cities and Communities
12. Responsible Consumption and Production
13. Climate Action
16. Peace, Justice and Strong Institutions
17
．
Partnerships
SUBARU Supplier CSR Guidelines
4. CSR Promotion System
The Sustainability Committee was established as a forum for discussing all sustainability
initiatives of the SUBARU Group and holds twice a year. The Sustainability Committee,
chaired by the President and Representative Director and attended by all executives,
examines our business from a social perspective and works to strengthen our initiatives.
5. Relationship to Stakeholders
（
Information Disclosure
）
The SUBARU Group’s CSR initiatives emphasize the relationship with stakeholders and
SUBARU Group believes that disclosing information to stakeholders, engaging in
dialogue with them, and reflecting their opinions and requests in our management are
all essential.
In order to realize our vision of becoming A Compelling Company with a Strong Market
Presence built upon its customer-first principle as stated in our management philosophy,
SUBARU Group will continue to make efforts to gain trust from our stakeholders, and to
make useful social contributions while at the same time increasing our corporate value.
Relationship with stakeholders
CSR Promotion System
５
SUBARU Supplier CSR Guidelines
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6. Fundamental Procurement Policy
In keeping with our Corporate Philosophy, SUBARU Group strives to procure parts,
materials, and equipment that offer excellent quality, environmental performance, and
cost performance. To realize this goal, it is necessary for us to establish relationships
with our business partners based on equality, trust, mutual benefit, and dedication to
continuous improvement.
Fundamental Procurement Policy:
SUBARU Group has been promoting activities for sustainable procurement under the
following basic polices.
(1) CSR Procurement
We engage in procurement activities in a way to harmonize people, society
and the environment, and carry out our corporate social responsibility in
such ways as conducting transactions paying due care to observe legal and
societal rules and to protect human rights and the environment.
(2) Establish Best Partnership
We establish "WIN-WIN" relationships with suppliers through transactions
based on mutual trust under the doctrine of good faith.
(3) Fair and Open Way of Selecting Suppliers
In selecting suppliers, the door is wide-open to all firms, domestic and
overseas, for fair and equitable business to procure goods and services
most excellent from seven perspectives: quality, cost, delivery, technical
development, management, environment and society (QCDDMES).
7. Human Rights Policy
The SUBARU Group, through its automotive and aerospace businesses, puts people
first and engages in people-oriented manufacturing. Respect for the rights and
characteristics of individuals is an important management issue for SUBARU. Based
on this policy, the SUBARU Group clarifies its responsibilities to respect human rights
based on the United Nations Guiding Principles on Business and Human Rights.
This policy applies to the SUBARU Group worldwide–SUBARU CORPORATION
and its all subsidiaries, expects and encourages our business partners and other
stakeholders associated with our operations, including those in the supply chain to
respect human rights in accordance with this policy.
For further details, please see: Human Rights Policy
SUBARU Supplier CSR Guidelines
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8. Responsibility of Conflict Minerals Procurement Policy
・
The SUBARU Group aims for non-use of raw materials that engender social
problems, such as infringement of human rights and environmental destruction.
・
We will clearly state this approach in the SUBARU Supplier CSR Guidelines and
request that those in our supply chain comply with these.
・
As one of our initiatives, we will conduct an annual conflict minerals survey targeting
the direct material supply chain.
・
In this survey, we referenced the OECD Due Diligence Guidance for Responsible
Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, using the
Conflict Minerals Reporting Template (CMRT), a questionnaire provided by the
Responsible Minerals Initiative (RMI), and other information. We used this to trace
through the supply chain and identify smelters, working to avoid procuring raw materials
from smelters that are linked to the infringement of human rights or sources of funding
for armed groups in conflict and high-risk areas, such as countries around the
Democratic Republic of the Congo.
・
In addition, for minerals other than conflict minerals (tin, tantalum, tungsten, and gold)
such as cobalt, for which child labor is a concern in some mining, we will use the
Extended Minerals Reporting Template (EMRT) questionnaire provided by RMI, as well
as other tools, to conduct due diligence. If any problems are found, we will take
necessary corrective measures.
・
In our initiatives, we will cooperate with our customers, business partners, industry
bodies, and other stakeholders, and strive to disclose information.
SUBARU Supplier CSR Guidelines
8
III. Topics and Points in the Supplier CSR Guidelines
The SUBARU Supplier CSR Guidelines are based on the CSR Guidelines for Suppliers
issued by the Japan Automobile Manufacturers Association, Inc. (JAMA) and incorporate
SUBARU Global Sustainability Policy.
As stated in Fundamental Procurement Policy (page 6), the SUBARU Group selects
suppliers of goods and services not only based on QCDD, but also from a multifaceted
perspective that includes corporate governance (M, compliance, etc.), the environment (E),
and society (S, human rights, etc.).
We expect complying these guidelines will help our partners to expand and promote CSR
activities jointly with their own business partners.
1. Safety and Quality
○
Providing products and services that meet consumer and customer needs
We identify consumer and customer needs to develop and provide products
with social utility.*
* Products with social utility: for example, products that are easy for anyone to
use irrespective of age, gender, and disability. Alternatively, earth-friendly
products, such as those that contribute to energy and resource conservation
and environmental protection
○
Providing appropriate information concerning products and services
We provide consumers and customers with appropriate information concerning
products and services.
○
Ensuring safety of products and services
We produce and provide products and services that meet the safety laws and
regulations stipulated in each country and region.
○
Ensuring quality of products and services
We create and operate companywide structures to ensure quality.
2. Human Rights and Labor Issues
○
Striving to avoid discrimination
We do not discriminate on the grounds of race, ethnicity, country of origin, religion,
gender or any other pretext in any employment situation.*
*Any employment situation = recruitment, hiring, promotion, wages, dismissal,
retirement, allocation of duties, discipline, etc.
○
Respecting human rights
We do not tolerate any form of harassment on the grounds of race, ethnicity or
country of origin, religion, gender or any other pretext in our workplaces.
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○
Prohibiting child labor
We do not permit the employment of children who have not reached the legal age
of employment in each country and region.
○
Prohibiting forced labor
We do not engage in forced labor, making certain to ensure that all labor is
voluntary and that employees are free to leave their jobs.
○
Not using raw materials that cause social problems
We aim not to use raw materials related to human rights infringements, such as
conflict minerals,* and strive to identify conditions and respond appropriately.
*Conflict minerals: Minerals that have concern to be involved in support to Non-
government armed group, Human rights violation and illegal action.
According to Dodd-Frank Wall Street Reform and Consumer Protection Act, the
minerals produced in the Democratic Republic of the Congo and surrounding
countries such as Tin, Tantalum, Tungsten and Gold, to fund the activities of
armed groups in the region
○
Compliance with the law on remuneration
We comply with the laws in each country and region related to minimum wages,
overtime work, payroll deductions, piecework wages, and other benefits.
○
Compliance with the law on working hours
We comply with the laws in each country and region related to the determination of
the working hours of employees (including overtime work) as well as the provision
of holidays and annual paid leave.
○
Practicing dialogue and consultation with employees
We engage in consultation and dialogue in good faith with the representatives of
employees or employees.
We recognize employees’ rights of free association in accordance with the laws in
each country and region.
○
Ensuring a safe and healthy working environment
We strive to prevent accidents and disasters with ensuring the safety and health of
employees at work as our priority.
○
Providing human resource training
We train human resources that can take action to detect and resolve problems
independently.
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3. Environment
○
Implementing environmental management
In order to promote wide-ranging environmental activities, we comply with the
laws of each country and region while building companywide management
structures which we continuously operate and improve.
○
Reducing greenhouse gas emissions
In order to contribute to reducing greenhouse gas emissions, we manage
greenhouse gas emissions in our business activities and promote activities to
reduce them. In addition, we strive to utilize energy effectively.
○
Preventing air, water, and soil pollution
We comply with the laws of each country and region regarding air, water, and soil
pollution in addition to continuously monitoring and reducing contaminants to
prevent environmental pollution.
○
Saving resources and reducing waste
We comply with the laws of each country and region regarding the appropriate
disposal and recycling of waste in addition to working to reduce the final disposal
volume of waste by utilizing resources effectively.
○
Managing chemical substances
We manage chemical substances with the potential to pollute the environment
safely.
Our products do not contain chemical substances prohibited by the laws of each
country and region in the relevant country and region. We do not use prohibited
chemical substances in the manufacturing process, and, with regard to chemical
substances provided for under the laws of each country and region, we identify
emissions and report them to the government in accordance with the law.
○
Conservation of biodiversity
In general business activities including procurement of parts and materials, we
strive to pay due cate to conservation of biodiversity.
* With regard to the environmental points above, SUBARU’s specific requests to
suppliers are compiled separately in the SUBARU Green Procurement
Guidelines, so please also refer to these.
SUBARU Supplier CSR Guidelines
11
4. Compliance
○
Compliance with laws
We comply with the laws in each country and region.
We establish and operate structures that include policies, systems, conduct
guidelines, whistleblowing systems, and education in order to fully enforce
compliance.
○
Compliance with competition laws
In compliance with competition laws in each country and region, we do not engage
in such practices as private monopolies, unreasonable trade restrictions (cartels,
bid rigging, etc.), unfair trade practices, and abuse of a superior bargaining
position.
○
Preventing corruption
We make political donations and contributions in accordance with the laws in each
country and region and strive to build transparent and fair political and
administrative relationships.
We do not exchange entertainment, gifts or money with our business partners for
the purpose of securing and maintaining unfair privileges and preferential
treatment.
○
Managing and protecting confidential information
We obtain the personal information of customers, third parties and our employees
and the confidential information of customers and third parties by lawful means.
We also strictly manage and protect such information and utilize it within the
proper scope.
○
Managing export trading
We implement the proper export procedures and management related to the
export of technologies and goods provided for under the laws of each country and
region.
○
Protecting intellectual property
We protect intellectual property rights that belong to or are attributable to SUBARU,
and we do not unlawfully obtain and use or infringe the intellectual property rights
of third parties.
5. Information Disclosure
○
Disclosing information to stakeholders
We disclose information that includes our financial position and performance and
the content of business activities to stakeholders in a timely and appropriate
manner. We also strive to maintain and develop mutual understanding and trusting
relationships with stakeholders through open and fair communication.
SUBARU Supplier CSR Guidelines
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IV. Voluntary Inspection Checklist
SUBARU has prepared a voluntary inspection checklist for CSR activities to facilitate
self-diagnosis and self-improvement by suppliers.
We would appreciate the use of the basic pattern below when setting questions and
answers for each CSR field and item.
Checklist
Question Answer (multiple choice)
Legal
regulations
Have you identified the
laws, regulations and
rules you have to comply
with?
(1) We are constantly identifying the most up-
to-date information.
(2) We have identified most of the important
information.
(3) We identify information on an ad hoc basis.
System
Have you determined the
department and staff with
responsibility?
(1) We have clearly determined them based on
rules, etc.
(2) We have determined them although there
are no rules, etc.
(3) We determine them on an ad hoc basis.
Prevention
Do you have policies,
systems, rules, and
procedures to ensure
internal compliance?
(1) Written policies, systems, rules, and
procedures are provided.
(2) There are unwritten but de facto policies,
systems, rules and procedures.
(3) We determine the policies, systems, rules,
and procedures on an ad hoc basis.
Education
Do you carry out
educational activities for
employees?
(1) We carry out educational activities regularly.
(2) We carry out educational activities
irregularly or for some employees.
(3) We carry out educational activities on an ad
hoc basis.
Actual
circumstance
Have you identified the
actual circumstances
through internal surveys?
(1) We regularly carry out internal surveys and
always understand the actual circumstances.
(2) We carry out internal surveys, though
irregularly, but do endeavor to understand the
actual circumstances.
(3) We carry out internal surveys on an ad hoc
basis.
First issued March 2012
Revised August 2022
SUBARU CORPORATION
Purchasing Committee
SUBARU of INDIANA AUTOMOTIVE INC. (SIA)
