Responsible Procurement
The ANA Group promotes socially and environmentally responsible procurement activities throughout our supply chain and operations.
Basic Approach
In recent years, while the global economy has grown, environmental problems such as the depletion of limited natural resources, water shortages, and global warming have become more apparent, and there is a growing sense of crisis surrounding global sustainability. In addition, societal problems such as labor and human rights issues are becoming more serious in the supply chain of global companies. Increasingly, companies are required to comply with the laws and regulations of each country in addition to internationally-recognized standards and principles as we collectively work towards the realization of a sustainable society.
The ANA Group will contribute to the creation of its social value not only by providing safe and secure services, but also by taking the initiative in local and global procurement activities with consideration for both the environment and society.
As part of these efforts, we established the following "ANA Group Procurement Policy" to promote sustainable procurement activities throughout the supply chain.
The ANA Group Procurement Policy consists of the "Basic Procurement Policy" and the "Supplier Code of Conduct".
ANA Group Procurement Policy
Basic Procurement Policy
- The ANA Group has an open-door policy in our procurement activities, giving access to both domestic and foreign suppliers. Our procurement activities will comply with related laws, regulations, and rules, and will be based on fair, equitable, transparent processes under the principle of free competition.
- The ANA Group will endeavor to develop mutual trust and complementarity with our business partners.
The ANA Group will engage in responsible procurement activities that address human rights and environmental concerns. - The ANA Group will promote innovation and meet customers' expectations by working with suppliers who give priority to assuring quality, setting appropriate prices, and meeting delivery dates and who have a stable foundation for business management and adaptability to change.
- The ANA Group will generate social and economic value from across our supply chains and contribute to creating a more sustainable world.
Basic Procurement Policy
Supplier Code of Conduct
We have established the "ANA Group Supplier Code of Conduct" as a guideline that all suppliers of ANA Group services and products are required to comply with.
Supplier Code of Conduct
| 1.Quality Assurance and Business Continuity Plan |
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|---|---|
| 2.Compliance and Anti-Corruption Measures |
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| 3.Labor Standards |
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| 4.Safety and Sanitation |
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| 5.Environment |
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| 6.Contribution to Local Communities |
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| 7.Information Disclosure | |
| 8.Conflict Minerals |
The ANA Group Supplier Code of Conduct makes reference to international human rights standards, such as the United Nations Guiding Principles on Business and Human Rights, the International Bill of Human Rights (specifically the Universal Declaration of Human Rights and the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights), the basic rights at work and the core labor standards set out in the International Labour Organization Declaration on Fundamental Principles and Rights at Work, other international treaties on the human rights of workers that also cover such matters as wages and working hours, and the United Nations Declaration on the Rights of Indigenous Peoples.
Implementation Structure
In order to promote responsible procurement in the ANA Group, we have appointed 'procurement managers' in all major departments to manage initiative, and to work with our suppliers to achieve a sustainable society.
ANA Group Supply Chain
The ANA Group engages in global procurement activities, and our annual procurement expenditure amounts to approximately 1.5 trillion yen.
Major Initiatives
Risk Management in the Supply Chain
We request all new suppliers to understand and agree to the "ANA Group Procurement Policy" when establishing new business relationships.
We also monitor the compliance status after commencing business relationships. If a significant deviation from the policy is found, we will ask for improvement plans and provide support for corrective actions, seeking their understanding and cooperation for sustainable procurement.
Additionally, if deemed necessary, we conduct investigations on tier2 / tier3 suppliers for risk management of the entire supply chain.
If we find any actions contrary to this policy, the applicable suppliers are required to report to the ANA Group and improve the situation within 2-3 years.
Failure to report the major violations or non-execution of corrective measures may result in the termination of the contract with ANA Group.
Establishment of Reliable Supply Chain
The ANA Group manages its supply chain from two perspectives, "Importance based on business continuity" and "Importance based on ESG".
Important Suppliers
We comprehensively evaluate the impact on the overall business of the ANA Group, including the aviation transportation sector, from the perspective of ESG, considering factors such as environmental, social, and governance aspects, along with sector-specific and country-specific risks. We also take into account transaction volume and non-substitutability as well as the soundness of the companies and relevance of their business. Based on this assessment, we select Important Suppliers.
Communications with Our Suppliers
The ANA Group requests suppliers to understand and comply with our procurement policy when establishing new business relationships.
We share information and exchange opinions regularly with our suppliers in order to build lasting partnerships.
- Conducting physical visits in addition to exchanging opinions and confirming issues by email and online methods
- Notification of procurement policies, Holding explanatory meetings (including online)
Monitoring Process
To build a sound supply chain, we periodically monitor the measures and improvement status of labor and human rights issues through surveys, inspections, employee interviews and so on. Where a risk or a issue is identified, we will ask for improvement plans and provide feedbacks to grasp the situation and ensure improvement on a continuing basis.
Implementation Status
At the ANA Group, we identify the items to be prioritized and organize explanatory sessions about the ANA Group Procurement Policy for suppliers who handle the risk items to foster understanding towards responsible procurement.
From FY2020, we have been conducting our own questionnair surveys on sustainability in addition to the explanatory sessions for Important Suppliers in terms of ESG. We provide feedback on the results, exchange opinions on improvement issues, and provide support for corrective actions.
Furthermore, during factory audits, we implement ESG investigations, in addition to quality aspects, based on Supplier Code of Conduct, including labor standards and health & safety of employees.
In FY2023, we conducted sustainability surveys with 10 important foreign suppliers through an external research company, Asuene Inc. We will expand the number of surveys and further strengthen supplier management in the future.
Sustainability Surveys
Sustainability surveys are based on the ANA Group Supplier Code of Conduct, which refers to international norms on human rights standards, such as the United Nations Guiding Principles on Business and Human Rights, and the labor standards of the International Labour Organization (ILO). The investigations are vital opportunities to create a sound supply chain by fostering an understanding of the ANA Group’s policy for Responsible Procurement and confirming the targeted suppliers' sustainability management systems and initiatives.
Also, following the sustainability survey, we provide feedback to the suppliers by analyzing and evaluating the status of their initiatives. We conduct follow-up activities to address the issues for items to which we gave low evaluation scores. This includes conducting detailed interviews and providing support through improvement suggestions.
| Theme | No. of questions | Example of questions |
|---|---|---|
| General sustainability | 6 | Creation of management systems, training, etc. |
| Quality Assurance and business continuity plan | 4 | Creation of quality control systems, creation of BCP systems, etc. |
| Compliance and Anti-corruption Measures | 13 | Compliance with laws and regulations, respect for international norms, anti-corruption, etc. |
| Labor standards | 20 | Respect for human rights, Appropriate management of working hours, Wages and benefits, Respect for foreign nationals, etc. |
| Safety and Sanitation | 8 | Safety and Sanitation, Response to emergencies |
| Environment | 7 | Green procurement, Control of contamination and pollution, Efficient use of resources, energy, and water |
| Contribution to local communities | 2 | Whether or not activities to contribute to local communities are implemented, etc. |
| Information disclosure | 1 | Protection of personal information, leakage of sensitive information, etc. |
| Conflict minerals initiatives | 1 | Use of conflict minerals, etc. |
| Supply chain | 3 | Status of initiatives in the supply chain, etc. |
| Total | 65 |
Support for suppliers
As part of our efforts to improve ESG performance, we provide feedback, including benchmarking with other companies, after conducting sustainability surveys with our suppliers. For suppliers who did not meet our standards, we request them to submit improvement plans and monitor the progress through discussions.
We will continue to support our suppliers in order to enhance the improvement cycle.
Examples of benchmarks
In-house education
The ANA Group provides in-house education periodically to ensure that our procurement policies are well understood and properly conducted among our employees. In FY2023, we held three training sessions for ANA Group procurement managers (approximately 100 people) regarding compliance with social norms and laws, as well as the importance of continued initiatives to reduce environmental impact in our procurement activities.
Moreover, we invited external lecturers and held internal seminars to enhance knowledge about sustainability.
We will continue to carry out educational activities on importance of responsible and sustainable procurement.