The Cosmo Energy Group recognizes the importance of all of its suppliers as business partners and works with them to achieve mutual sustainable development. By communicating effectively and building healthy relationships with suppliers, we pursue mutual prosperity while helping to build a sustainable world.
Sustainable Procurement Policy
To fulfill the Cosmo Energy Group Management Vision, we believe we must deliver on our social responsibilities across the entire supply chain by ensuring legal compliance, fair transactions, respect for human rights, and environmentally responsible operations. Accordingly, we revised our Sustainable Procurement Policy in February 2022. It is based on our Management Vision and Code of Conduct and outlines our basic approach to fulfilling our social responsibilities across supply chains.
Sustainable Procurement Guidelines
Based on the Sustainable Procurement Policy, the Group has created the Sustainable Procurement Guidelines, which outline more specific measures in nine areas: (1) Fair trade and ethics, (2) Human rights and labor, (3) Disaster prevention and safety sanitation, (4) environmental conservation, (5) Quality and product safety, (6) Information security, (7) Contribution to society, (8) Business continuity plan, and (9) Supplier management. We ask every supplier to understand and agree to the details of these guidelines, and to work in accordance with them.
All of the Group’s suppliers are asked to fully understand and comply with the Sustainable Procurement Policy and Sustainable Procurement Guidelines.
Implementation Structure
The Group promotes initiatives related to sustainable procurement at 11 group companies that have purchasing functions and make direct material purchases. As a basic rule, a status report on these initiatives is submitted to the Sustainability Strategy Committee once a year.
In addition, we have set up the Corporate Ethics Consultation Helpline, which can be contacted by partner companies and suppliers from within or outside the Group to report violations of laws and regulations and other matters.
Sustainable Procurement Initiatives
We evaluate suppliers using our own evaluation form in accordance with the Group’s Sustainable Procurement Policy and Sustainable Procurement Guidelines. Cosmo Oil, a core operating company, now conducts the survey of 100% of its suppliers of equipment, parts, construction materials and services, chemicals, and other products used by its refineries. Cumulatively in fiscal 2022 and fiscal 2023, 11 group companies requested surveys from a total of 1,030 suppliers and received responses from over 80%.
Rating
4 ranks from A – D
(Suppliers that receive C or D rankings are asked to make improvements, and the Group follows up to confirm the improvements made.)
Surveyed Companies
Group companies with purchasing functions (11 companies)
Survey Method
Self-evaluation by suppliers using assessment forms (SAQ)