Procurement

Sustainable Procurement in Cooperation with Suppliers

As a member of the Otsuka group, Taiho Pharmaceutical is committed to carrying out business activities that comply with laws and regulations, ensure safety and peace of mind, and consider society throughout the entire value chain. When initiating transactions with business partners, we conduct investigations and confirmations to ensure the quality of raw materials and establish sustainable procurement, and conclude basic trading contracts in advance. For new suppliers, we perform due diligence before deciding to do business with them.
We conduct our business in line with the Otsuka Group Procurement Policy, which covers issues such as human rights, labor, the environment, and corruption prevention, pursuing mutual sustainable development by practicing fair, equitable, and transparent procurement and building good relationships. This policy is shared with our business partners. We also follow the Otsuka Group Sustainable Procurement Guidelines, which are based on the procurement policy. We plan to hold study sessions on the policy and guidelines for our business partners in the future.
To ensure a stable supply of products, we conduct risk assessments of key raw materials in advance to clarify the possible risks and implement countermeasures. Also, as a principle, we purchase from multiple suppliers.
In addition, we also take the environment into account. In collaboration with our Consumer Healthcare division, the procurement department proposes environmentally-friendly packaging materials.

Promotion Framework

The Otsuka group holds group meetings on sustainable procurement, under the leadership of Otsuka Holdings, with people attending from Otsuka Holdings and eight group companies,* in order to promote sustainable procurement. The meetings serve to promote activities related to sustainable procurement and the four areas defined by the United Nations Global Compact (UNGC): human rights, labor, environment, and anti-corruption. During the meetings, attendees share issues and exchange information on sustainable procurement, and carry out various initiatives designed to promote sustainable procurement both internally and externally.
As a participant in the group meetings, Taiho Pharmaceutical continues to promote sustainable procurement together with suppliers, by working together to solve social issues across the supply chain.

* Taiho Pharmaceutical, Otsuka Pharmaceutical, Otsuka Pharmaceutical Factory, Otsuka Chemical, Otsuka Foods, Otsuka Packaging Industries, Otsuka Techno, and EN Otsuka Pharmaceutical.

Our Approach

Sustainable Procurement Training for Employees

We provide training to employees in charge of procurement on sustainable procurement that takes into consideration human rights, the environment, and other issues, in order to further embed the Otsuka Group Procurement Policy and Otsuka Group Sustainable Procurement Guidelines.

Sustainable Procurement Practices for Suppliers

We conduct briefings on sustainable procurement practices for our suppliers. At the briefings, attendees learn about the Otsuka Group Procurement Policy and the Otsuka Group Sustainable Procurement Guidelines, which we adhere to, as well as the group’s expectations regarding compliance. These events are opportunities for all parties to stay up-to-date on human rights, labor, environment, bribery, and corruption issues and hear about examples of the group’s initiatives. Suppliers that agree to uphold the group’s policies sign a pledge affirming their intention to cooperate in achieving sustainable procurement as business partners.

Environment Self-Assessment (Environment SAQ) for Suppliers
We recognize the importance of building better communication with our suppliers and other business partners and working together to reduce environmental impact throughout the supply chain. Based on this, we give our suppliers the Otsuka Group Environment Self-Assessment Questionnaire (SAQ) in conjunction with the GCNJ common SAQ. We are increasing opportunities for dialog with suppliers and striving to further improve our efforts to resolve issues caused by climate change, resource depletion, and pollution.

Human Rights Self-Assessment (Human Rights SAQ) for Suppliers
The Otsuka group implements the Otsuka Group Human Rights Policy, and based on a human rights risk assessment conducted at Otsuka Holdings and the seven main operating companies,* it has identified the human rights issues the Otsuka group is most likely to face and created the Otsuka Group Human Rights Self-Assessment Questionnaire (SAQ). Along with the GCNJ common SAQ, suppliers are also asked to cooperate with this SAQ in an effort to identify, mitigate, and prevent adverse effects on human rights by reviewing the results and specifying risks.

* Taiho Pharmaceutical, Otsuka Pharmaceutical, Otsuka Pharmaceutical Factory, Otsuka Warehouse, Otsuka Chemical, Otsuka Foods, and Otsuka Medical Devices

Declaration of Partnership Building
Taiho Pharmaceutical has published a Declaration of Partnership Building in support of the purpose of the Council on Promoting Partnership Building for Cultivating the Future promoted by Japan’s Cabinet Office and Small and Medium Enterprise Agency. We aim to build new partnerships by promoting collaboration and mutual prosperity with supply chain partners and other value creators.