Social Background

In order to provide solutions to social issues through "Mono-tsukuri (manufacturing)", We JTEKT positions our suppliers as important partners and aims for mutual prosperity with them.
The efforts of our company alone are not sufficient to solve the social issues through our business activities, such as reducing greenhouse gas emissions and maintaining the well-being of workers. We believe that these solution of issues can only be achieved through the efforts of the entire value chain.

The way of thinking by JTEKT

At JTEKT, we are dedicated to addressing social challenges through business activities grounded in our corporate philosophy, striving to continuously contribute to the development of a sustainable society "for the Earth, for society, and for customers." In our procurement activities, we adhere to our basic procurement policy to ensure open and fair transactions. We have also established the JTEKT Supplier Sustainability Guidelines, which outline the ideal state and vision for companies, considering human rights and the environment, and we require our suppliers to comply with these guidelines.

Basic Purchasing Policy

Annual Policy Meetings and Awards Ceremony

We JTEKT shares our "Hoshin (anual business plan)" with suppliers at the Hoshin briefing and also shares our stance on business and social issues at the anual purchasing plan briefing.
In addition, We encourages our suppliers every year to make efforts in these areas by setting up an opportunity to present awards to suppliers that have achieved outstanding results in quality, technology, VE/VA proposals, and the environment.

JTEKT Supplier Association

The JTEKT Supplier Association consists of 248 suppliers (as of March 2023) and is proactively engaged in activities based on the principle of improving each corporate foundation and contributing to the development of a prosperous society through mutual study and mutual trust.
In FY2023, JTEKT continues to support the activities of the association such as safety subcommittee meetings, quality control conventions, and training sessions to strengthen the partnership.

[ JTEKT Supplier Sustainability Guidelines ]

In May 2022, JTEKT issued the JTEKT Supplier Sustainability Guidelines to share the social responsibilities and codes of conduct expected of companies with our suppliers. These guidelines outline our policies on environmental conservation, human rights protection, and respect for diversity. We require our suppliers, as well as their upstream suppliers, to comply with the guidelines.

JTEKT Supplier Sustainability Guidelines

Human Rights Due Diligence

Companies are required to respect human rights not only within their own operations but throughout their entire supply chain. Specific activities include identifying and assessing human rights risks, preventing human rights violations, and implementing measures and remedies to address human rights issues. We conduct human rights surveys with about 250 of our key suppliers. Based on the survey results, we support each supplier in mitigating human rights risks.

New Suppliers Assessment

We have established the Supplier Certification Criteria and conduct evaluations for new suppliers before initiating transactions. In addition to assessing financial status, we review certifications related to quality management, such as ISO 9001 and IATF 16949, and investigate sustainability issues including environmental management. Based on these evaluations, we determine whether to commence business with the supplier.

Dialogue with Suppliers

We visit our suppliers to understand their efforts and challenges in achieving carbon neutrality, providing specific advice on actionable measures. In the fiscal year 2024, we have supported the establishment of a Carbon Neutral Subcommittee within the JTEKT Supplier Association and have promoted mutual visits and collaborative learning activities among our suppliers.

Comments from Suppliers

• The advice and information JTEKT provides on advancing carbon neutrality and improving workplace safety has been instrumental in raising awareness within our company.
• The specific examples of energy-saving initiatives were helpful.

Sustainability Training for Suppliers

In today's rapidly changing environment, building a sustainable society requires proactive and adaptive actions. At JTEKT, we are committed to supporting our suppliers in these societal shifts. Each year, we hold informative briefings for our suppliers, promoting sustainability awareness and initiatives across the entire supply chain.

Various Awareness Initiatives

• Introducing carbon-neutral initiatives by our company and suppliers.
• Sending five carbon-neutral awareness videos annually to suppliers since FY 2021.
• Conducting environmental surveys and awarding suppliers with high ratings annually since 2018
• Holding an awareness briefing on environmentally hazardous substances in July 2024 for targeted suppliers meeting our management criteria for chemical substances in products.
• Conducting human rights surveys for approximately 250 companies.

Conflict Minerals Initiatives

JTEKT recognizes the procurement of minerals originating from conflict-affected and high-risk areas to be a serious social issue. Within our supply chain, we are particularly concerned about human rights abuses such as child labor, environmental destruction, and the funding of organizations involved in inhumane armed conflicts. Minerals like tantalum, tungsten, tin, and gold are especially problematic in this context. Since the fiscal year 2013, we have conducted annual conflict minerals surveys. With the cooperation of our suppliers, we verify the use of conflict minerals throughout the entire supply chain, from upstream to downstream. To avoid contributing to human rights abuses and violent conflicts associated with mineral resources, we will continue to work with our suppliers and various stakeholders to eliminate the use of conflict minerals. Together, we aim to promote more responsible mineral sourcing.

Green Purchasing

JTEKT promotes companywide green purchasing activities to build a sustainable, recycling-based society. For this purpose, we have issued the JTEKT Green Purchasing Guidelines to ask our suppliers for their cooperation.

Initiatives for Carbon Neutrality

We have held an Environmental Committee meeting and hold a Value Chain Subcommittee to strengthen cooperation with our suppliers.
JTEKT requests suppliers to promote activities by setting a target of reducing CO2 emissions by 2.5% per year, or 25% of the FY2021 level by FY2030, and conducts an environmental questionnaire once a year to ascertain suppliers' CO2 emission levels and issues.
In addition, to support suppliers' activities, we share examples of energy-saving initiatives provided by JTEKT and suppliers, and provide educational information to promote carbon-neutral initiatives.
We also visit suppliers to check the status of their actions and issues, and provide advice on specific energy-saving measures.

Environmental Risk Assessments

１．Substances of Concern
We are dedicated to eliminating the use of environmentally hazardous substances that negatively impact the environment and human health. In alignment with industry standards such as the RoHS2 Directive and GADSL, we have established our own stringent regulations, known as the Restrictions on the Use of Chemical Substances in Product. Based on these regulations, we rigorously manage environmentally hazardous substances from　product development stages. We update these internal regulations twice a year and consistently provide our suppliers with the latest information to ensure thorough management of these substances.

２．Water Usage
Amid the worsening global water scarcity, addressing water risks has become increasingly important. Our company regularly conducts surveys on the amount of water used in the business activities of our suppliers.

３．New Suppliers
When entering into business contracts with new suppliers, we verify their acquisition of ISO 14001 or third-party certification related to environmental management.

Anti-bribery Measures

We have established a fundamental policy for the prevention of bribery and have set up a committee specializing in anti-bribery measures. Additionally, we have defined a code of conduct for procurement staff to ensure thorough prevention of bribery within the procurement department. We strongly request all suppliers involved in our business to refrain from bribing public officials or third parties for the purpose of obtaining or maintaining undue benefits for the JTEKT Group, including through entertainment, gifts, or monetary exchanges.

Sustainability-related Initiatives

JTEKT is a member of various industry associations, including the Japan Auto Parts Industries Association (JAPIA), the Japan Bearing Industry Association (JBIA), and the Japan Machine Tool Builders' Association (JMTBA). Additionally, our president serves as a director of JAPIA, an industry association representing our automotive business, which accounts for 70% of our global sales. Through collaboration with various associations, we are committed to achieving sustainability for society.

Consultation Desk for Suppliers

On April 2017, JTEKT established the consultation desk for suppliers to further strengthen our response to the issues lying between suppliers and we jtekt such as the Act against Delay in Payment of Subcontract Proceeds, etc.. In addition, through interviews with suppliers, we are working to understand their' problems, improve communication, and promote appropriate transactions.