Supply Chain Policy
In order to realize its corporate philosophy, the Group shall engage in fair, transparent, and free competition in all its business activities in Japan and overseas, and shall maintain sound and healthy relationships with its business partners and other related parties.
Procurement Guidelines
ASKA Pharmaceutical Holdings Group's business is supported by many business partners who are our essential business partners. The Group aims to develop together with its partners by building even more trusting relationships with them to maintain and improve the quality of its products and services and to ensure stable supply.
In FY2021, the Group signed the United Nations Global Compact proposed by the United Nations and supports the 10 principles related to the protection of human rights, the elimination of unfair labor practices, environmental responsiveness, and anti-corruption. Based on our corporate philosophy, we will promote sustainable procurement initiatives by incorporating the 10 principles into our operations.
1．Fair and Honest Transactions
We select suppliers based on a comprehensive, fair, and impartial evaluation of not only the quality, stable supply, and price of their products but also their environmental impact and human rights considerations.
2．Compliance with Laws, Regulations, and Social Norms
We will conduct business transactions in compliance with the laws and regulations, corporate ethics, and social norms of the countries concerned.
3．Mutual understanding and trust
We will strive for co-existence and co-prosperity based on mutual understanding of each other's position and the establishment of appropriate relationships of trust. We will appropriately manage information obtained in the course of business transactions and observe confidentiality obligations.
4．Environmental Consideration
We will strive to consider the environment, including climate change, in all of our business activities. We will contribute to the preservation of the global environment and the realization of a sustainable society, and we will ensure that our business partners understand our environmental management and environmental philosophy.
5．Respect for Human Rights
We will respect the human rights of all people, including child labor, in accordance with the norms of the relevant countries. We will practice procurement that takes into consideration health and safety and the working environment.
6．Animal Welfare
As a company with an animal health business, we will strive to develop our business in compliance with laws and regulations related to animal welfare.
Internal Penetration
The Group provides education and training on the importance of sustainable procurement and our approach to sustainable procurement to those in charge of promoting sustainable procurement activities at each division. We are also working on preparations for e-learning for all employees.
Supply Chain Management Promotion System
The Group views the entire value chain from procurement to distribution as a supply chain, and promotes sustainable procurement in accordance with our Group supply chain policy, centered on our Production Division. Additionally, under the ESG Committee, the Group promotes sustainability activities through meetings such as the “ESG Promotion Meeting” and “Committee of Managers for ESG Promotion.” Within this framework, the construction and management of a sustainable supply chain are implemented as follows: The ESG Committee is a decision-making body that reviews and approves basic policies and materiality related to the supply chain, and reports important matters to the Board of Directors. The ESG Promotion Meeting consolidates issues related to the supply chain across the Group and reviews measures based on proposals from the Committee of Managers for ESG Promotion. As necessary, the Meeting determines the direction of corrective measures and proposes them to the ESG Committee. The Committee of Managers for ESG Promotion is composed of representatives selected from each division and department, and is responsible for risk assessment in procurement and logistics operations, supplier management, and corrective and improvement activities at the site level.
Supplier Selection Criteria
The Group places great importance on building healthy and fair business relationships with our partner companies in order to contribute to the realization of a sustainable society. Under these relationships, we are building and maintaining a reliable supply chain system from various perspectives, including product and service quality, stable supply, legal compliance, and consideration for the environment and society. As part of this effort, the Group continuously selects and evaluates suppliers. Specifically, we are implementing the following initiatives.
- Utilizing supplier evaluation systems and proprietary checklists, we conduct multifaceted assessments of suppliers' eligibility and reliability.
- Supplier information is centrally managed to enable content enrichment, updates, and seamless sharing with stakeholders, thereby supporting higher-quality procurement decisions.
- Through the system, visualize assessment results and risk/impact levels. Based on this information, set priorities and implement focused responses in areas requiring improvement.
Furthermore, we go beyond written evaluations to conduct on-site inspections of factories and facilities, as well as interviews and hearings at the locations to gain a thorough understanding of the actual situation. Through these activities, we encourage partner companies to engage in sustainable procurement activities that consider not only cost and efficiency but also ethical, environmental, and social aspects.
Going forward, we will continue to strive to build a transparent and reliable supply chain while consistently promoting procurement activities that fulfill our social responsibilities.
Stable Procurement and Procurement BCP
Strengthening production systems and thorough procurement management to ensure stable product supply
The Group considers stable product supply to be one of its most important tasks in fulfilling its responsibility as a company that supports the health and medical care of society. To achieve this, we believe it is essential not only to secure manufacturing capacity, but also to strengthen production systems and improve productivity throughout the entire supply chain. ASKA Pharmaceutical has established a consistent production management system that spans from raw material procurement to product manufacturing, in order to ensure a stable supply of pharmaceuticals. This system involves daily monitoring and management of raw material inventory levels at manufacturing sites, as well as maintaining a robust production management framework throughout the entire production process. This enables us to respond flexibly and swiftly to fluctuations in supply and demand, as well as unforeseen supply risks. Additionally, collaboration with business partners is critically important for maintaining and strengthening our stable supply system. ASKA Pharmaceutical continues to engage in close information exchange with existing suppliers and actively works to build partnerships and networks with new partner companies. We aim to establish a flexible and robust procurement system by securing new raw material procurement routes and diversifying risks through the use of multiple suppliers. Furthermore, in terms of production planning, we achieve a balanced supply of products by formulating and implementing planned and efficient production schedules based on supply and demand forecasts and inventory management. Going forward, the Group will continue to review our systems from a holistic optimization perspective encompassing manufacturing, procurement, and logistics, while building a robust foundation to sustainably support stable product supply.
Promoting Green Purchasing
Based on our corporate philosophy, we aim to realize a sustainable society by promoting ESG management as one of our key policies. As part of our efforts to achieve this goal, we are committed to green procurement, which prioritizes the procurement and purchase of environmentally friendly raw materials and other necessary resources.
Responsible Mineral Procurement
In FY2021, the Group signed the United Nations Global Compact proposed by the United Nations and supports the 10 principles related to "protection of human rights," "elimination of unfair labor practices," "environmental responsibility," and "anti-corruption." The Group is also committed to promoting sustainable and ethical procurement activities.
Whistle-blower System
External Reporting Contact
Contact for inquiries regarding suspected violations of laws or ethics in transactions with our company
Compliance and Human Rights Inquiries and Consultations
Internal Reporting System
As a system to reflect the voices of employees in compliance practice, we have established a whistle-blower office, the ASKA Pharmaceutical Holdings’ compliance consulting desk, and a contact point for consultation and reporting of compliance-related matters involving the Group's officers. It is staffed by ASKA Pharmaceutical Holdings' Audit & Supervisory Board members (Audit & Supervisory Board member consulting desk).
Through this system, we will ensure that whistle-blowers are protected and that compliance-related matters are reported, investigated, and corrective measures are taken in a timely and appropriate manner, in accordance with the spirit of the Whistle-blower Protection Act.
Anti-Bribery Due Diligence
The Group conducts due diligence on companies with which it intends to enter into new transactions or with which it already does business in order to mitigate risks related to bribery and corrupt practices.
Addressing Child Labor and Forced Labor
In accordance with our Group's Human Rights Policy, our Group prohibits child labor and forced labor. Our Group respects human rights norms in each country, including those concerning child labor, safeguards the human rights of all individuals, and practices procurement that gives full consideration to safety, health, and working conditions. In contracts with suppliers, we include clauses regarding respect for human rights and the improvement of working conditions. Furthermore, through surveys, regular verification, and dialogue, we work to eliminate the risks of forced labor and human trafficking.
Biodiversity
The Group recognizes that the environmental impact associated with our business activities affects biodiversity. We strive to reduce this impact in various ways, including through resource conservation and climate change countermeasures, in order to maintain and conserve biodiversity. We will also develop our veterinary pharmaceuticals and animal feed additives businesses to contribute to creating a society where people and animals can coexist in harmony.
ASKA Animal Health’s Efforts
Continuing to reduce the use of phosphorus ore※, a natural resource, by marketing the feed additive Phytase.
- ※ Phosphorus ore…It is an essential element for living organisms and necessary for the extraction of phosphorus, which provides biodiversity.
L-histidine hydrochloride was designated as a new feed additive. Expected to contribute to the reduction of fishmeal use in fish feed and to the conservation of natural fishmeal resources.
Ethical Considerations in Research
We are engaged in research and development of pharmaceutical products to contribute to people's health and animal health.
ASKA Pharmaceutical has established internal regulations that comply with the Act on Welfare and Management of Animals and basic guidelines from the Ministry of Health, Labor and Welfare.*1 As well, the Company conducts ethical experiments using animals. All of our experiments are planned with the 3R*2 principles in mind and are examined by animal ethics committees, receive the approval of the director of the implementing organization, and are conducted in laboratories certified by the Association for Assessment and Accreditation of Laboratory Animal Care International*3 (AAALAC International) respectively. We also perform internal inspections once a year. An ethical review committee has been set up to make judgments on using human tissue and on genetic research that confirm the appropriateness of such research.
- *1 Basic guidelines for conducting experiments on animals, etc. at implementing organizations under the jurisdiction of the Ministry of Health, Labour and Welfare.
- *2 The 3Rs refer to refinement (minimizing animal distress), replacement (using alternative methods), and reduction (reducing the number of animals used).
- *3 A private nongovernmental organization that promotes the humane treatment of animals used in science through voluntary review and certification programs.