Supply Chain Management
Procurement Policy
The Advantest Group pledges respect for our suppliers, places value on open communication with our suppliers, and emphasizes the maintenance of fair business relationships through sustainability by promoting ESG in accordance with relevant laws and regulations. We are also committed to sharing values and building collaborative relationships with our suppliers, toward our goal of achieving mutual growth.
Sustainability Target for Supply Chain Management
Approach to the Sustainability Target for Conflict Minerals
Conflict minerals are not only regulated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, but it is also a major problem faced by society as a whole. Advantest remains aware of the importance of responding to the issue of conflict minerals, which also has deep ties to efforts conducted by the entire industry.
| Supervising division | Cost Management & Production Support Department |
|---|---|
| KPI | Continuing efforts to use materials with a lower risk by asking business partners to ensure transparency with regard to the sources of materials and components, etc., and by working together with industry organizations and business partners to investigate information relating to conflict minerals (i.e. mineral processing firm information). |
| FY2020 target | Continuing efforts to use materials with a lower risk by asking business partners to ensure transparency with regard to the sources of materials and components, etc., and by working together with industry organizations and business partners to investigate information relating to conflict minerals (i.e. mineral processing firm information). |
| Results achieved in Fiscal 2019 |
|
| Boundary | Advantest Group |
| Relevant policies | Procurement Policy (3. Supplier Expectations) |
| Relevant commitments | Sec. 1502 of the Dodd-Frank Act (Conflict minerals) and other relevant regulations |
| Responsible department/division | CSR & Environmental Affairs Promotion Office/Procurement Administrative Department |
| Relevant complaint processing policy | Establishment of a contact window |
| Assessment | ✓ |
Approach to the Sustainability Target for Supplier Evaluations Related to Environment, Human Rights, Labor Practices, and Impacts on Society
Advantest believes that it is important to consider the scope of its influence on components, materials, or production processes and take into account the impacts of its collaboration with its business partners on the environment, human rights, labor practices, and society in carrying out business activities.
| Supervising division | Cost Management & Production Support Department |
|---|---|
| KPI | Percentage of new suppliers that were screened using criteria for impacts on the environment, human rights, labor practices, and society |
| FY2020 target | 100％ |
| Results achieved in fiscal 2019 |
|
| Boundary | Advantest Group |
| Relevant policies | The ADVANTEST Way Procurement Policy, Advantest CSR Procurement Guidebook Advantest Group Environmental Policy Advantest Green Procurement Guidelines |
| Relevant commitments | Labor Standards Law, Industrial Safety and Health Act, RoHS Directive, regulation and reference values in environmental laws from each municipality, RBA Code of Conduct |
| Responsible department/division | Procurement Administrative Department/CSR & Environmental Affairs Promotion Office |
| Relevant complaint processing policy | Establishment of a contact window |
| Assessment | － |
Education for Implementing Fair Trade
Advantest held a supply chain human rights seminar in FY2019 for personnel engaging in operation-related purchasing. Moreover, we have also been providing employee e-learning on the Act against Delay in Payment of Subcontract Proceeds, Etc. to subcontractors since fiscal 2016 to raise greater awareness about this law. In the future, we will continue to educate our employees in order to realize the principles of fair trade.
A scene from the subcontractors law seminar
A scene from the supply chain human rights seminar
Social Responsibility in the Supply Chain
Set up of inquiry and reporting window
When trading with our business partners, in the event that one of our employees infringes, or is suspected to infringe, on our Code of Conduct, a trade contract or a relevant law, we request that this be reported to the Contact Window on our website. In fiscal 2019 we did not receive any complaints. The reporter and their company would not be penalized in any way for reporting. Following an investigation, in the case that a problem is recognized, the action in question would be stopped and measures would be taken to prevent recurrence.
Measures against procurement risks
Advantest promotes purchasing from multiple procurement sources as a general rule as a contingency for the procurement of components from the perspective of BCP.
In addition, we created a BCP map of our suppliers and manufacturing bases to speed up information collection and countermeasure examination in case of a disaster.
Response to Conflict Minerals
Implementation of survey
At Advantest, in order to respond to Section 1502 (conflict minerals provisions) of Title XV of the Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulations in the U.S., we are playing an active role together with the industry organization to address the conflict minerals problem.
Since 2013, we have been implementing an annual survey of our business partners regarding the use of conflict minerals through a RMI* report (conflict mineral reporting template (CMRT)) and releasing the results.