Procurement by Chubu Electric Power
CSR Procurement Activities of the Chubu Electric Power Group
1. Chubu Electric Power Group Basic Procurement Policy and CSR Procurement Guidelines
The Chubu Electric Power Group has established the "Chubu Electric Power Group Basic Procurement Policy" and is working to promote both coexistence and mutual benefit across the entire supply chain, and further advancement of CSR through efforts such as "appropriate price negotiations and price pass-through," "respect for human rights," and "thorough risk management."
We have also established the "CSR Procurement Guidelines" as a code of conduct for our suppliers and ask them to submit a written confirmation of compliance, thereby promoting CSR across the entire supply chain.
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2. PDCA Cycle
Through the PDCA cycle outlined below, we are working to promote CSR throughout the entire supply chain in line with the "Chubu Electric Power Group Basic Procurement Policy."
3. Implementation and Evaluation of the CSR/ESG Initiatives Questionnaire
To develop the development of a sustainable supply chain, we conduct a "CSR/ESG Initiatives Questionnaire" for our key suppliers.
We conduct the questionnaire across eight categories, including "corporate governance," "compliance," and "human rights and labor practices," and share the overall results during procurement overview briefings.
Based on the results, we also provide individual support to the following types of suppliers:
- Suppliers identified as having risks in specific categories
- For critical risks such as those related to compliance or human rights, we provide individual support, including sharing information to promote improvements.
- Suppliers with challenges in their overall score
- We evaluate overall scores on a five-point scale from A to E. For suppliers rated D or E, we provide individual support by sharing radar charts comparing their scores with the company-wide average, along with other reference materials related to CSR and ESG, to assist with improvement efforts.
*The questionnaire consists of 85 questions. Each response is scored on a 10-point scale, and the average score is used as the overall score. Ratings are assigned as follows: A (7.5 or above), B (6.0 or above), C (4.5 or above), D (3.0 or above), and E (below 3.0).
FY2024: 40 companies supported
Questionnaire Categories
| Category | Number of questions | Content |
|---|---|---|
| Corporate Governance | 11 | Availability of CSR/ESG promotion framework, internal control system, whistleblowing mechanisms, etc. |
| Compliance | 13 | Compliance adherence, elimination of ties with anti-social forces, appropriate price pass-through, etc. |
| Human Rights and Labor Practices | 17 | Harassment prevention, fair wages, active participation of a diverse workforce, etc. |
| Information Management | 8 | Information management framework, measures against cyberattacks, etc. |
| Safety and Health | 8 | Employee safety and health, etc. |
| Environment and Coexistence with Local Communities | 14 | Environmental conservation efforts, greenhouse gas emission reduction, green procurement, etc. |
| Product Quality and Safety | 5 | Quality and safety management systems, etc. |
| Risk Management and Supply Chain | 9 | Business continuity planning, supply chain risk management, etc. |
Questionnaire Results (Rank Breakdown)
Radar Chart
- FY2024 Questionnaire Evaluation Results (Average Scores)
[FY2024 Individual Feedback on Questionnaire Results (Example)]
4. Procurement Overview Briefings
At the beginning of each fiscal year, we hold "Procurement Overview Briefings" for our suppliers to enhance communication and proactively share information. In these sessions, we provide information on our management initiatives and CSR efforts, such as compliance and respect for human rights, and request suppliers' cooperation. We also disclose information related to procurement plans and other relevant matters.
FY2024: 346 companies participated
We also conduct a questionnaire for participating suppliers regarding the conduct of our employees involved in procurement and the challenges faced by suppliers, and provide feedback on the responses to strengthen our partnerships with suppliers.
5. Internal Education and Awareness
We provide various training programs for employees involved in procurement to promote understanding of the Basic Procurement Policy and to ensure compliance with laws, regulations, internal rules, and corporate ethics.
In FY2024, we conducted training for all employees to deepen their understanding of appropriate price negotiations and pass-through with business partners, and to ensure thorough understanding and implementation of appropriate practices.
6. Individual Engagement with Suppliers
To address specific challenges such as maintaining the supply chain and enhancing safety together with our suppliers, we conduct on-site visits and engage in dialogue to strengthen communication.
FY2024: 182 companies engaged in total